Slide 1: Pure Cycle Corporation Year-End 2023
€ PURE CYCLE CORPORATION YEAREND 2023 =e Presented by: Mark Harding
Slide 2: Forward-looking statements
Statements that are not historical facts contained or incorporated by reference in this presentation are “forward-looking statements” (“FLS”) within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21C of the Securities Exchan
Slide 3: Forward: Performance, Assets Trajectory, Objectives & Capital Plan
Ly a FORWARD (2) MEASURING OUR PERFORMANCE (3) ASSETS TRAJECTORY (4) CLEAR OBJECTIVES & CAPITAL PLAN
Slide 4: Reflecting on Our Strategies
REFLECTING ON OUR STRATEGIES Visionary Leadership of a Strong and Dedicated Team LEADERSHIP & DEDICATED TEAM STRONG DIVERSIFIED BOARD WITH DECADES OF INDUSTRY EXPERIENCE COMPLIMENTARY SEGMENTS STRATEGIC INVESTMENT AND STRONG ASSET PORTFOLIO
Slide 5: Mark W. Harding and management team
MARK W. HARDING President, CEO, and Director Mark is an exceptional leader who has significantly shaped Pure Cycle's success. Under his 33 year tenure, the company has successfully acquired over $130 million in water and land interests His vision and strategic acumen have been instrumental in the co
Slide 6: We Operate Multiple Complimentary Segments
WE OPERATE MULTIPLE COMPLIMENTARY SEGMENTS Water and Wastewater Resource Development Segment * Own nearly 30K acre-feet of water rights (surface and ground water) * Sustainable water rights we estimate can serve up to 60,000 SFEs * Denver metro land development requires developers to have water serv
Slide 7: Strong Asset Portfolio
STRONG ASSET PORTFOLIO WATER/ WASTEWATER ° $40m in Water Systems — ° $9.51 wa * $14.6m Water Rights Portfolio « $64m Total Water Assets Our water rights portfolio can provide water to as many as 60,000 connections. This would allow ample room for growth within our current water system, which present
Slide 8: Measuring Our Performance
I RING OUR PERFORMANCE Financial Results and Performance Indicators FINANCIAL RESULTS PERFORMANCE METRICS MAJOR LEARNINGS
Slide 9: Financial Results
Financial Results ] Revenue (000's) Gross Profit (000's) $30,000 $20,000 $25,000 fi if — fe # $15,000 $20,000 we =) f ] 14 = | $15,000 $14,586 $10,000 } $10,000 | — | $5,000 $5,000 | | | | | so & | oe | o I L J / | 2021 2019 2020 2021 2022
Slide 10: Financial Results
Financial Results Net Income (000's) EPS $20,000 s > $08 fi i] | $0.4 $15,000 $0.6 $10,000 | | $5,000 | 2019 = 202020212022
Slide 11: Revenue and Gross Profit by Segment
Single Family Rental 11% Water/WasteWater 502% Land Development 487% REVENUE BY SEGMENT 1Gross Margin for Water and Wastewater excludes depreciation WATER 60% ' Gross Margin LAND DEV 73% Gross Margin SFR 56% Gross Margin 12,000 10,000 8,000 6,000 4,000 2,000 ° GROSS PROFIT BY YEAR BY SEGMENT (000'S)
Slide 12: Water/Wastewater
WATER/WASTEWATER WATER USAGE REVENUE (000'S) Residential Tap Usage $503 Water Treatment Tap Usage $301 ‘Commercial Tap Usage $296 Commercial Non Tap Usage $3,232 ANNUAL TAP FEES (000'S) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $o 2019 2020 2021 2022 2023 = Projected RECURRING CUSTOMER GROWTH ; oon
Slide 13: Land Development Sky Ranch Development Progress
LAND DEVELOPMENT SKY RANCH DEVELOPMENT PROGRESS rove ES 100% 2023 LAND DEVELOPMENT REVENUE rrose2s 93% st nm = I 3.124 oo» EE 18% LAND DEVELOPMENT REVENUE BY YEAR hee (000's) $20,000 Phase 2b 48.8% $15,000 $10,000 is Ea i so 2019 2020 2021 2022 2023
Slide 14: Single Family Rentals
SINGLE FAMILY RENTALS BOOK ASSETS & FMV (000'S) $8,000 =Book =FMV REVENUE 2023 28000 $165,000 dE See 7 “a 2022 2023 14
Slide 15: Assets Trajectory
ASSETS TRAJECTORY Portfolio Utilization and Projections WATER CUSTOMERS & CAPACITY OIL & GAS INFRASTRUCTURE WATER PRODUCTION CAPACITY TAP FEES - WATER PORTFOLIO LAND DEVELOPMENT PROJECTIONS SINGLE FAMILY RENTAL PROJECTIONS
Slide 16: Well Positioned Against Growing Opportunities
WELL POSITIONED AGAINST GROWING OPPORTUNITIES 14 COMPLETED/RENTED HOMES ae allan a Heap ie eset a tae Se ENED TOMES Noy RONeE z 7 EXPANDING OUR PRODUCT MIX TO INCLUDE: F STATE OF THE ART WASTEWATER FACILITY UPTO endl i cine FRONT LOAD DETACHED HOMES PAIRED HOMES. ALLEY LOAD HOMES 16
Slide 17: Customers
CUSTOMERS WATER AND WASTEWATER CUSTOMERS AND CAPACITY EXISTING RESIDENTIAL SKY RANCH PHASE 1 All taps sold for 509 homes (4 are our SFRs) SKY RANCH PHASE 2A 192 taps sold as of year end (10 are our SFRs) ELBERT AND HWY 86 More than 200 residents NEW RESIDENTIAL Residential water and wastewater custo
Slide 18: We Provide Raw Water to Operators for Drilling
WE PROVIDE RAW WATER TO 06 OPERATORS FOR DRILLING With existing systems, we are able to provide water to O&G operators. REVENUE (000'S) We have also made strategic investments in our =Qi =Q2 «Q3 »Q4 system to further our ability to provide water when it is needed, where it is needed in the future. F
Slide 19: Current System Capacity
1584 MGD 49% CURRENT SYSTEM CAPACITY Supply 3.232 Total MGD From Wells Box Elden wells 1.022 MGD | \ 367MGD i SRRenen =, 259 MGD [ousvare WISE: 15 MGD — Demand 08 operations Results Potential of ~ $88m in water revenues at developed capacity 19 supply available for use for future tap 88 MGD with the
Slide 20: Tap Fees - Portfolio Capacity
Supply 30,000 Acre Feet TAP FEES - PORTFOLIO CAPACITY (60,000) Demand/Capacity 60,000 Connections Available Capacity Current System Capacity Results $2.3 Billion Type Fee Per SFE Water Tap $30.977 SewerTan $7,250 Total $ 38.227 We own or control the water rights and infrastructure required to withdr
Slide 21: Sky Ranch Capacity Projections
Development $580m SKY RANCH CAPACITY PROJECTIONS Progress 5,000 SFEs Results ‘Sky Ranch is zoned to accommodate up to 3.200 single- and multi-family homes, and ‘over 2 million square feet of retail, ‘commercial, and light industrial space ~ which is the equivalent of 1.800 residential lots for a tot
Slide 22: Single Family Rentals - Sky Ranch
Annual Revenues $6.6 million SINGLE FAMILY RENTALS - SKY RANCH Progress 200 Units 65.5% Results Strategy is to retain the equity value in the land and water and deliver affordable rertal units in our Sky Ranch Master Planned ‘Community Each unit delivers positive cash flows with a 65% LTV (On averag
Slide 23: Single Family Rentals - Operations and Cash Flows
Single Family Rentals - Operations and Cash Flows SFR PROJECTIONS ACTUAL RESULTS 14 gta els PROJECTED TO 200 : hee AVG PER HOM/YR PHASE 2 83 UNITS proteegicy (000'S) HOMES/YR DIRECT OPERATING. patter | sem | 23
Slide 24: Key Takeaways
Key Takeaways our integrated water utility, land development, and single-family rentals to maximize returns for years to come GROSSMARIN 55% to take advantage of investment opportunities and single-family rentals while systematically developing in land and water ROA’ 13.09% with our large asset port
Slide 25: Clear Objectives and Capital Plan
CLEAR OBJECTIVES AND CAPITAL PLAN Clear Objectives to Measure Strategy’s Success MEASURABLE OBJECTIVES IMPORTANT UPDATES f js » CORPORATE INFORMATION AN 25
Slide 26: Stock Repurchase Program Update
STOCK REPURCHASE PROGRAM UPDATE As announced in the press release on November 14, 2022, our board approved an open-ended stock repurchase program which authorizes our CEO and CFO to repurchase up to 200,000 shares in the open market. 20,000 shares have been purchased to date Total Number of Shares M
Slide 27: Board and Management
Mark W. Harding President and CEO Patrick J. Beirne Chair of the Board Wanda J. Abel Director and Chair of the Nominating and Governance Committee Marc Spezialy Vice President and CFO Peter C. Howell Director and Chair of the Audit Committee Daniel R. Kozlowski Director and Chair of the Compensation
Slide 28: Pure Cycle Corporation
PURE CYCLE CORPORATION 28
Slide 29: Slide 29
Slide 30: Wholesale Water & Wastewater
Wholesale Water & Wastewater Well/Diversion + Vertically integrated, meaning we own, treat and sell water then collect, treat, and resuse wastewater + Own and control nearly 30K acre feet of water + Own rights to surface reservoir storage assets Build + Capacity to serve 60,000 taps + Capital Capaci
Slide 31: Water System
Water System Balance With Losses and Required Discharges ))) later System Eva poratid) Outdoor Irrigation Discharge to Stream Ground Water Supply Surface Water Supply
Slide 32: Development Encroachment
DEVELOPMENT ENCROACHMENT TO LOWRY RANGE Sky Ranchi : View looking north of development encroachment on Lowry Range exclusive Service Area
Slide 33: Land Development - Phase 2 - Total Lots 1,359
LAND DEVELOPMENT - PHASE 1 & 2 - Total Lots 1,359 Phase 1-509 lots 100% Complete - Completed 2022 K-7 opening in 8/2023 Rental lots - 4 lots Sky Ranch Academy High School opening in 2025 SCHOOL’ Phase 2A - 229 lots 90% complete - est. completion 2023 Phase 2B - 211 lots 21% complete - est. completio
Slide 34: Pure Cycle Corporation Year-End 2023
€ PURE CYCLE CORPORATION YEAREND 2023 =e Presented by: Mark Harding