Slide 1: Pure Cycle Corporation Earnings Presentation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 WATER & WASTEWATER LAND DEVELOPMENT a o% SINGLE FAMILY RENTALS i Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development R
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: We operate multiple complementary segments
WE OPERATE MULTIPLE COMPLEMENTARY SEGMENTS... ...driving value for stakeholders with land and water investments | 4 Water and Wastewater Resource Development Segment + Own a large and valuable portfolio of water rights + Sustainable ground and surface water rights we estimate can serve up to 60,000
Slide 4: Environmental, Social & Governance
Environmental, Social & Governance - Employment of an ESG Initiatives Specialist - Development of an ESG Policy - Developing an ESG page on company website + Implementing an ESG strategy that involves: - Adhering to an ESG framework to provide data disclosure guidance + Selecting an ESG data managem
Slide 5: Updated Environmental Policy
+ Updated Environmental Policy - Will begin assessing, tracking, and disclosing: energy management/usage, network efficiency, water usage and wastewater collection data - Updated Human Rights Policy - improved a subset of "S" score by 6 points - Developing a Labor, Health & Safety Policy - Will begi
Slide 6: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 WATER & WASTEWATER LAND DEVELOPMENT a o% SINGLE FAMILY RENTALS i Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development R
Slide 7: Wholesale Water & Wastewater
Wholesale Water & Wastewater Principal business interests are to deliver wholesale water and wastewater service ~ WELLS/DIVERSION = (_) ole IRRIGATION REUSE Large water portfolio in water-short region VI I Company owns or controls 29,000+ acre BUILD 1 WASTEWATER feet of groundwater & surface water w
Slide 8: Water Infrastructure
Water Infrastructure All major infrastructure is in service to support phase 2 of the Sky Ranch Development 3-202 Water Assets (at cost) “In millions 69% Growth Own or control over 29,000 acre-feet of water e 3 29,500 15 along th Wastewater ‘Acre-Feet of Miles of 1g eoevet Front Resort Alluvial Wate
Slide 9: Water Services
Water Services Growth from...
Slide 10: Oil & Gas
OIL & GAS We provide raw water to oil and gas operators for drilling with 120 wells drilled to date Southern Wattenberg Niobrara I Five Possible Formations Pad Development: 40 Acre spacing 16 wells/mile formation Over 10,000 well capacity Average $250,000 per well More than 200 square miles in Adams
Slide 11: Development Encroachment to Lowry Range
DEVELOPMENT ENCROACHMENT TO LOWRY RANGE View looking north of development encroachment ‘on Lowry Range exclusive. Service Area 11.
Slide 12: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 WATER & WASTEWATER LAND DEVELOPMENT a o% SINGLE FAMILY RENTALS i Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development R
Slide 13: Land Development
LAND DEVELOPMENT + 15 miles east of downtown Denver and 4 miles south of DIA 13.
Slide 14: Sky Ranch - Phase 1
SKY RANCH - PHASE 1 100% complete + All lots delivered (509) + As of 5/31/2022 there were approximately 450 residents + All 505 taps sold (4 units remain with PCYO for rental) + Estimated that homes will be fully sold out by the end of Q4-2022 + Received $11.0 million of reimbursables and recorded m
Slide 15: Sky Ranch - Phase 2 Overview
SKY RANCH - PHASE 2 OVERVIEW Phase 2A -67% complete + Approximately 850 lots in total + 804 lots under contract with home builders - 46 lots reserved for rental business with an additional 100 potential plats + Initial lots delivered during three months ended May 31, 2022 + Will include new Charter
Slide 16: Sky Ranch Phase 2 Financial and Quantitative Data
SKY RANCH PHASE 2 Financial and Quantitative Data Phase 2A (229 LOTS) LotRevenue** $ 184m Tap Revenue 5.6m Total Lot Costs (20.1m) Reimbursable* 16.Jm GROSS PROCEEDS $ 20.6m Phase 2B (211 LOTS) LotRevenue** $ — 17.0m Tap Revenue 5.2m Total Lot Costs (18.3m) Reimbursable* 15.2m GROSS PROCEEDS $ 191m
Slide 17: 1st Sub-Phase of 2nd Development Phase
Ist SUB-PHASE OF 2nd DEVELOPMENT PHASE Lot Closing Dashboard % % a Yb, Y; >, Takedown! “4 Takedown 2 “4 Takedown 3 Zn Total > DATE 8/25/2021 DATE 11/30/2021 DATE 7/31/2022 AMOUNT $ 3,846,000 AMOUNT $ 3,695,000 AMOUNT $ 10,850,000 $ 18,417,000 BUILDERS 3 BUILDERS 3 BUILDERS 4 a LDAPHASE —_Platted Lot
Slide 18: Sky Ranch Academy
Sky Ranch Academy K-12 Charter School —= - =" = SSS =
Slide 19: Charter school sale and opening dates
+ Sold 32 acres to National Heritage Academy for $1.6 million, and made cash-in-lieu payment to Bennett School District for $1.6 million + Located at the center of our Sky Ranch Community + Groundbreaking on June 24, 2022 + School Opening Dates: Grades K-8 opening August 2023 for 2023-2024 school ye
Slide 20: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 WATER & WASTEWATER LAND DEVELOPMENT a o% SINGLE FAMILY RENTALS i Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development R
Slide 21: Single-family rental strategy
We have contracted for the construction of single — family homes with the intent to retain them for long- term rental purposes. Pure Cycle is working with an experience home builder to construct these houses, which Pure Cycle will own and maintain, taking ona new role as property manager. "The singl
Slide 22: Market Watch
Market Watch feady increase in lease price while other market price homes rents under construction Denver Premier MEDIAN LEASED Leasing Agents PRICE RENTAL MARKET REPORT September 2021 LEASED LISTINGS sae 249 246 -3 Days MEDIAN DAYS IN MEDIAN LEASED MLS . PRICE PER BEDROOM MEDIAN LEASED #10%) price
Slide 23: Pro Forma Income/house
Pro Forma Income/house Annualized Average Estimated Rental Revenue per Home of $34K Rental Income Operations, repairs and maintenance Interest expense Annualized Estimated Capitalization Rate 1 + Current staffing will provide property management services for the foreseeable future 5% + Rental income
Slide 24: Phase 1-4 Rental Homes
March 2021 Approval to start date Utilities complete 6 vertical construction in progress! Capitalized costs $368K Financed costs $333K Fair market value $547K PHASE 1-4 RENTAL HOMES June 2021 November 2021 Final stages of framing 3 Units fully occupied! + Flexible debt usage up to 70% of appraised v
Slide 25: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 WATER & WASTEWATER LAND DEVELOPMENT a o% SINGLE FAMILY RENTALS i Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development R
Slide 26: Nine Months Ended May 31, 2022
NINE MONTHS ENDED MAY 31, 2022 REVENUE OPERATING INCOME NET INCOME a el $18:3m— asm 1m zm aM 1a Lo wy 1am / = $1.4m ue rom / - a : ; \ u via <= Sf “ va ‘ SM # tt 7 88:1 ° $784k el ee $4.0m 0 ($302k) $129k a e °—— $17 ‘YTD.Q3-2018 YTD Q3- 2019 YTD Q3-2020 YTD Q3-2021_ YTD Q3- 2022 OS RISO UREN POE EI
Slide 27: Year Performance
5 YEAR PERFORMANCE Shareholder Value Revenue Net Income* Gross Margin 26M $26m =] 11M 200 sim 18M $20m 16M uM 2M 10m au om aM 2 eg° FYE 2017 FYE2018 FYE2019 FYE2020 FYE2021 PROJ, 2022 Frezov7 Fve2o1a FYE2019 FYEZIZ9 FYE2GZ PROM. 2022 FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 Netncome @ WI Segment
Slide 28: Consolidated Balance Sheets
= = a — _ PURE CYCLE CORPORATION CONSOLIDATED BALANCE SHEETS BALANCE SHEET =~ Ripe ‘Cash and cash equivalents $ 542s 20,17 ‘Trade accounts receivable, net 1,199 Prepaid expenses and other assets ‘620 458 ‘Land under development 652 ‘Notes receivable - related parry, reimbursable public improvements
Slide 29: Consolidated Statements of Operations
PURE CYCLE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) INCOME STATEM ENT qo ae at ae (in thousands, except share information) May 31, 2022 May 31,2021 _ May 31, 2022 May 31, 2037 Revenues: “Metered water usage from: ‘Municipal customers s mS Bs 498 $ am ‘Commercial customers 549 47
Slide 30: Leadership and Board of Directors
Q LEADERSHIP AND BOARD OF DIRECTORS Mark W. Harding Kevin B. McNeill President and CEO Vice President and CFO Patrick J. Beirne Peter C. Howell Jeffrey G. Sheets . Director and Chairman of the Chairman of the Board naiiGomnanies Director Wanda J. Abel Daniel R. Kozlowski Fredrick A. Fendel III. Dire
Slide 31: Contact and Company Information
CONTACT AND COMPANY INFORMATION CORPORATE HEADQUARTERS 34501 E. Quincy Ave, BLDG 65, Suite A, Watkins, CO 80137 CONTACT INFO info@purecyclewater.com 303-292-3456 t 1 o) Wwww.purecyclewater.com U es | O a S . Follow us on... W Twitter: @PureCycleCorp (BB Linkedin: https:/www.linkedin.com/company/pure
Slide 32: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 WATER & WASTEWATER LAND DEVELOPMENT a o% SINGLE FAMILY RENTALS i Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development R