Cadiz, Inc. · NASDAQ:CDZI
Cadiz — Investor Presentation (June 2021)
26 slides from Cadiz's investor presentation, June 2021
Slide 1: Cadiz Corporate Overview
CADIZ CORPORATE OVERVIEW JUNE 2021
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 circumstance
Slide 3: Corporate Highlights
Corporate Highlights 1 California land & water business built over three decades with a present Enterprise Value of approximately $650M. 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 ow
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: 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 disp
Slide 6: 2021: Serious Drought Year for California & the West
2021: Serious Drought Year for California & the West California’s drought and wildfire dangers rising at stunning Satellite images show extreme drought drying up California pace reservoirs “The current drought, which blankets the entire state and a “Eleven of the state's twelve major reservoirs are
Slide 7: 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 as the better option. 60% Ocean Runoff / Evaporation: The majority of California’s a
Slide 8: Water Pricing
Water Pricing So Cal Wholesale Water Price Escalation Pressure on supply, increasing 1200% $1,000 demand reflected in pricing in CA: 1000% $800 800% $600 600% $400 400% Wholesale Pricing (1) $200 200% 0% $- Water prices paid by Southern California water agencies to acquire imported supplies have inc
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 sy
Slide 11: 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 provide optimal aquifer storage and operation. The project will make
Slide 12: Groundwater Storage Opportunity
Groundwater Storage Opportunity Phase 2 of Cadiz's Water Project would create new underground water storage, a more cost effective, sustainable, and environmentally friendly way of storing water. • The Cadiz Water Project provides up to 1 million acre-feet of Direct Artificial Recharge through Recha
Slide 13: Court-Validated Environmental Review and GW Entitlement
Court-Validated Environmental Review and GW Entitlement Cadiz successfully secured Court-validated environmental review and groundwater entitlements that authorize delivery of 2.5 million AF of sustainable, high quality water supply for Southern California over 50 years. Sustainable: Environmental r
Slide 14: Facilities – Southern Pipeline
Facilities – Southern Pipeline To convey conserved groundwater from the Cadiz wellfield for distribution throughout Southern California communities, the Project is approved to construct a conveyance pipeline, the Cadiz “Southern Pipeline.” • Single barrel, pressurized steel pipeline with nominal des
Slide 15: Conveyance - Northern Pipeline
Conveyance - Northern Pipeline • 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 pressure
Slide 16: Cadiz Interconnected with Southern California Water System
Cadiz Interconnected with Southern California Water System 16
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: About the Cadiz Ranch
About 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
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 Agricultural and Water Projects
Valuable Cash Flows From Sustainable Agricultural and Water Projects Construction and operation of water pipelines are expected to support valuable cash flows from projects: Recurring Cashflow Stream $50M+ of Annual Cash Flow projected from Agriculture, Water Delivery, and Storage Significant Value
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. Photo Pending 21
Slide 22: Sustainability Mission
Sustainability Mission En ity NT RE vi E SP un TM ro EC VES T m nm IN m en • Management of clean, reliable Co water t • $1 billion in local economic investment Cadiz ENT Foremost in Water • Green infrastructure INTE ITM • 5,900 new jobs during CWP GRIT • Safe water storage & conservation M construct
Slide 23: Stewardship Programs
Stewardship Programs • Cadiz leads multiple sustainable farming programs / best practices, including a Composting Program, Drip Irrigation systems, and has CCOF Certified Organic Operations with no use of pesticides. ─ Cadiz’s Composting Program hosts a repository for recycled residential green wast
Slide 24: Sustainability Focused Leadership
Sustainability Focused Leadership It is a Cadiz core value to follow and implement sustainable practices in all aspects of our business. • Ensuring sustainable solutions to California’s resource challenges is embedded in values and Being a Responsible Producer business strategy from management and m
Slide 25: Corporate Governance
Corporate Governance Cadiz’s leadership fosters proper business behavior through strong and sustainable corporate governance and business ethics. • Active oversight from Board of Directors through the independent directors in the 38% Women on board audit, compensation, corporate governance, and nomi
Slide 26: For more information
For more information: www.cadizinc.com www.cadizwaterproject.com Email: ir@cadizinc.com Social: Twitter – @CadizWater Facebook – Cadiz Water Project 26