Cadiz, Inc. · NASDAQ:CDZI
Cadiz — Investor Presentation (February 2022)
25 slides from Cadiz's investor presentation, February 2022
Slide 1: Cadiz Corporate Overview
CADIZ CORPORATE OVERVIEW FEBRUARY 2022
Slide 2: Safe Harbor Agreement
SAFE HARBOR AGREEMENT During the course of this presentation, we will make forward-looking statements. Any statement that is not a historical fact is a forward-looking statement. Forward- looking statements refer to expectations, projections or other characterizations of future events or circumstanc
Slide 3: Corporate Highlights
CORPORATE HIGHLIGHTS 1 California land & water business built over three decades. 2 Ownership and control of the western U.S.’s premier groundwater asset: supply, storage and conveyance. Cumulative investment to date of over $200M has secured ownership of 45,000 acres of substantially-contiguous lan
Slide 4: About Cadiz
ABOUT CADIZ Cadiz Inc. is a publicly-traded (NASDAQ: CDZI), California-based natural resources company with significant land and water assets dedicated to delivering sustainable water and agriculture projects. • Largest private landowner in California’s Mojave Desert: 45,000 acres. (70 sq. miles) of
Slide 5: 2021-2022: Systemwide Water Crisis for California and the West
2021 - 2022: SYSTEMWIDE WATER CRISIS FOR CALIFORNIA AND THE WEST Los Angeles shifts water supplies as drought hammers State West megadrought worsens to driest in at least 1,200 years Water Project The American West’s megadrought deepened so much last year that it is With the project’s supplies now s
Slide 6: California Water Supply-Demand Imbalance
CALIFORNIA WATER SUPPLY-DEMAND IMBALANCE California suffers from systemic supply shortages resulting from long term structural deficiencies, failing infrastructure and regulatory limitations. New supply options are limited, and recurring drought exacerbates challenges. Disadvantaged communities are
Slide 7: Water Pricing
WATER PRICING So Cal Wholesale Water Price Escalation Pressure on supply, increasing demand reflected in CA water prices: 1200% $1,000 1000% $800 WHOLESALE PRICING(1) 800% $600 600% Water prices paid by Southern California water agencies to acquire imported supplies have $400 increased by 1,000%, or
Slide 8: California Needs Water Storage Capacity
CALIFORNIA NEEDS WATER STORAGE CAPACITY To address fundamental change in the precipitation patterns (persistent, record dry-periods), California policy supports aquifer storage over dams / surface storage facilities. 60% Ocean Runoff / Evaporation: The majority of California’s annual precipitation r
Slide 9: Solutions
SOLUTIONS Cadiz will address these challenges by offering long-term sustainable solutions to California communities not served by the status quo. 9
Slide 10: Sizeable Private Water Source: Cadiz Valley Watershed
SIZEABLE PRIVATE WATER SOURCE : CADIZ VALLEY WATERSHED 35,000 acres at base of 1,300 square-mile, topographically- diverse watershed in Mojave Desert. Groundwater aquifer system with 20+ million AF in storage, federally protected headwaters. • Snowpack and rainfall in upper elevations recharges
Slide 11: Groundwater Storage Opportunity in Cadiz
GROUNDWATER STORAGE OPPORTUNITY in CADIZ Costs / Pricing • Construction costs for groundwater storage are minimal, once conveyance system in place. • Cadiz aquifer system includes 1 million acre-feet of storage capacity, similar to Kern Water Bank and Semitropic Water Bank in Central California. • R
Slide 12: The Cadiz Water Project
THE CADIZ WATER PROJECT The Cadiz Valley Water Conservation, Recovery and Storage Project will manage the groundwater basin to stop the loss of water to evaporation, conserve a sustainable quantity of water for beneficial uses and offer optimal aquifer storage. The Project will make available a new
Slide 13: Court-Validated Environmental Review & GW Entitlement
COURT-VALIDATED ENVIRONMENTAL REVIEW & GW ENTITLEMENT Cadiz successfully secured Court-validated environmental review and groundwater entitlements that authorize management of the groundwater basin for the conservation of 2.5 million AF of water supply over 50 years for delivery off-property and in-
Slide 14: Facilities | Southern Pipeline
FACILITIES | SOUTHERN PIPELINE To convey conserved groundwater from the Cadiz wellfield for distribution throughout Southern California communities, Cadiz is approved to construct a conveyance pipeline - the Cadiz “Southern Pipeline.” • Single barrel, pressurized steel pipeline with nominal design f
Slide 15: Conveyance – Northern Pipeline
CONVEYANCE – NORTHERN PIPELINE A • Cadiz owns 220 miles of existing 30” steel pipeline that extends from Wheeler Ridge in the Central Valley southwest to Cadiz. • Crosses existing water infrastructure including the LA Aqueduct and the California State Water Project. • Buried pipeline has high pressu
Slide 16: Cadiz: Interconnected with Southern California Water System
CADIZ 16 INTERCONNECTED WITH SOUTHERN CALIFORNIA WATER SYSTEM
Slide 17: Sustainable Agriculture
SUSTAINABLE AGRICULTURE Cadiz has farmed its desert property - the Cadiz Ranch - for 30 years, sustainably irrigating with underlying groundwater and successfully growing a variety of crops. 17
Slide 18: The Cadiz Ranch
THE CADIZ RANCH Cadiz Valley, site of the Water Project, is currently farmed and irrigated with sustainable, naturally replenishing underlying aquifer. • Largest agricultural operation in SB County. • Similar climate and crop mix as Imperial, Palo Verde and Coachella Valleys. • In 1993, County permi
Slide 19: Agricultural Land Value
AGRICULTURAL LAND VALUE • Value of agricultural land assets with water resources continues to appreciate over time. • Comparable developed land with water rights in Palo Verde and Imperial Valleys sells for approximately $14,000 per acre for developed farmland. • Large contiguous parcels can trade a
Slide 20: Valuable Cash Flows from Sustainable Agriculture & Water Projects
VALUABLE CASH FLOWS FROM SUSTAINABLE AGRICULTURE & WATER PROJECTS Construction and operation of water pipelines are expected to support valuable cash flows from projects: RECURRING CASHFLOW STREAM $50M+ of Projected Annual Cash Flow from Agriculture, Water Delivery, and Storage SIGNIFICANT VALUE FRO
Slide 21: Stewardship
STEWARDSHIP Cadiz is dedicated to sustainably providing reliable water access and agricultural opportunities for our community and contributing to a sustainable environment well beyond our borders. 21
Slide 22: Sustainability Mission
• $1 billion in local economic investment Cadiz Foremost in Water • Management of clean, reliable water • 5,900 new jobs during CWP SUSTAINABILITY construction • Green infrastructure MISSION • $6 million annual revenues to • Safe water storage & conservation local government EXCELLENCE • Sustainable
Slide 23: Corporate Governance
CORPORATE GOVERNANCE 38% WOMEN ON BOARD Cadiz’s leadership fosters proper business behavior through strong and sustainable corporate governance and business ethics. 78% INDEPENDENT DIRECTORS • Active oversight from Board of Directors through the independent directors in the audit, compensation, corp
Slide 24: Capital Structure
CAPITAL STRUCTURE AMOUNT COUPON MATURITY Cash (1) 11.0 Restricted Cash (2) 8.9 Total Cash 19.9 Senior Secured Term Loan 50.0 7.00% July 2024 Total Debt $ 50.1 Long Term Lease Buy Back (3) $ 20.0 Series A Perpetual Preferred Stock $ 57.5 8.875% (1) - Amount as of December 31, 2021 (unaudited) Series
Slide 25: Cadiz, Inc.
CADIZ, INC. For more information: www.cadizinc.com www.cadizwaterproject.com Email: ir@cadizinc.com Social: Twitter – @CadizWater Facebook – Cadiz Water Project Instagram – CadizInc 25