Achieves important milestone following
execution of fifth water supply delivery agreement in 2024
LOS
ANGELES, Aug. 15, 2024 /PRNewswire/ -- Cadiz, Inc.
(NASDAQ: CDZI / CDZIP) ("Cadiz" or the "Company") announced today
that it has secured water purchase agreements for 85% of capacity
of the Company's "Northern Pipeline." The announcement
follows execution of the fifth agreement this year for water supply
from the Company's Water Conservation, Supply, and Storage Project
(the "Project"), bringing the cumulative total acre-feet per year
under contract for delivery via the Northern Pipeline to 21,275
acre-feet per year.
Under the five water supply agreements signed so far this year,
the Project is expected to deliver an annual supply of water under
"take-or-pay" contracts over 40 – 50 years. The Northern
Pipeline, which stretches approximately 220-miles northwest from
Cadiz, California through
San Bernardino and Kern Counties, has a total capacity of 25,000
AFY and is capable of serving remote desert and Inland Empire
communities that currently rely upon imported water from
Northern California through the
California State Water Project.
"Executing a critical mass of water purchase agreements to
support construction on the Northern Pipeline has been our primary
objective this year," said Cadiz Chairman and CEO Susan Kennedy. "These agreements, which
cumulatively represent 85% of the Northern Pipeline capacity, will
enable the Company to secure third-party capital to begin
construction of the Project in 2025 as planned."
The Company is in final stages of contracting for the remaining
capacity of the Northern Pipeline and anticipates construction of
the Project to begin in 2025 as planned with initial water delivery
targeted for as early as 2026. Following construction of the
Project, Cadiz expects to receive net revenue of approximately
$850 per AF in 2024 dollars for water purchased under the
agreements, subject to annual adjustments such as tied to the CPI
water and sewer index.
The Company plans to begin contracting for water delivery via
the Project's Southern Pipeline later this year. When
constructed, the Southern Pipeline, will extend 43-miles southeast
from Cadiz to the Colorado River Aqueduct, enabling delivery of an
additional 25,000 acre-feet per year of water supply and allowing
use of the Cadiz aquifer for storage of an additional one-million
acre-feet of imported water. The Company is currently working with
several public entity partners on forming a Master Limited
Partnership to fund the Project's capital infrastructure costs and
secure the capital necessary to begin construction in
2025.
Once fully online, the Project is expected to be the largest new
groundwater banking operation in the Southwestern U.S., providing
new water supplies and water treatment technologies to underserved,
disadvantaged and other communities in the Mojave River Basin, the
Colorado River Basin and California's Inland Empire for decades to
come.
To view copies of the 2024 Agreements, visit
https://www.cadizinc.com/agreements.
About Cadiz, Inc.
Founded in 1983, Cadiz, Inc.
(NASDAQ: CDZI) is a California
water solutions company dedicated to providing access to clean,
reliable and affordable water for people through a unique
combination of water supply, storage, pipeline and treatment
solutions. With 45,000 acres of land in California, 2.5 million acre-feet of water
supply, 220 miles of pipeline assets and the most cost-effective
water treatment filtration technology in the industry, Cadiz offers
a full suite of solutions to address the impacts of climate change
on clean water access. For more information, please visit
https://www.cadizinc.com.
Forward-Looking Statements
This release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, the
expected benefits to be derived from our water purchase agreements,
the projected timeline for construction of the Project and
operation of the Northern Pipeline, expectations of obtaining
financing needed for construction to begin, the formation of a
Master Limited Partnership with public entities to fund capital
infrastructure costs, and expected revenue from the water purchase
agreements, which are subject to risks and uncertainties, many
of which are beyond the control of the Company, including the
Company's ability to fulfill the conditions precedent in the water
purchase agreements, obtain requisite financing for construction of
the Project and complete the needed construction for water delivery
to occur. Although the Company believes that the expectations
reflected in our forward-looking statements are reasonable, we can
give no assurance that such expectations will prove to be
correct. Factors that could cause actual results or events to
differ materially from those reflected in the Company's
forward-looking statements include whether the parties to the water
purchase agreements referenced in this release will be able to
obtain the funding contemplated by the agreements, potential delays
in the supply chain for materials or permitting, and other factors
detailed in the Company's Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the year
ended December 31, 2023 and
subsequent quarterly and current reports. We undertake no
obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
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SOURCE Cadiz, Inc.