Slide 1: Pure Cycle Corporation Earnings Presentation FY ended August 31, 2022
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE YEAR ENDED AUGUST 31, 2022 WATER & WASTEWATER SINGLE FAMILY Jam RENTALS | id FINANCIAL RESULTS Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: We Operate Multiple Complementary Segments
WE OPERATE MULTIPLE COMPLEMENTARY SEGMENTS... ...driving value for stakeholders with land and water investments . “ 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: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE YEAR ENDED AUGUST 31, 2022 WATER & WASTEWATER SINGLE FAMILY Jam RENTALS | id FINANCIAL RESULTS Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development
Slide 5: Wholesale Water & Wastewater
Wholesale Water & Wastewater Principal business interests are to deliver wholesale water and wastewater service WELLS/DIVERSION IRRIGATION REUSE Large water portfolio in water-short I region Compenyonnacy onto 9000 are BUILD I WASTEWATER 6 which we estimate can serve 60,000 taps ; ; Di me me TREATME
Slide 6: Water System
Water System Balance With Losses and Required Discharges Dy ater System evan) Ground Water Supply Treatment ))) 6 6 Evaporatton Surface Water Supply Outdoor Irrigation Discharge to Stream
Slide 7: Water Infrastructure
Water Infrastructure All major infrastructure is in service to support phase 2 of the Sky Ranch development QE Gs ) we | Water eS ae Assets FY 2022 $67.4 (at cost) FY 2020 $59.2 FY 2019 $46.2 FY 2018 $39.5 Fy 2017 $36.2 *In millions 86% Growth —> ah Pony ) yI ; f \ Ponderom Pa Own or control over la
Slide 8: Water Services Growth
Water Services crowth trom... New Resi » New Commercial ) Residential water and wastewater customers added with + Future Sky Ranch commercial phases to include the every new phase at Sky Ranch equivalent of 1,800 taps + Avg. residential customer generates $1,500 per year in revenue « More parks, irr
Slide 9: Oil & Gas
OIL & GAS We provide raw water to oil and gas operators for drilling with 120 wells drilled to date Southern Wattenberg Niobrara Mulitple Formations Pad Development: 40 Acre spacing 16 wells/mile formation Thousands of wells possible Average $250,000 per well More than 200 square miles in Adams & Ar
Slide 10: Development Encroachment to Lowry Range
DEVELOPMENT ENCROACHMENT TO LOWRY RANGE os 10.
Slide 11: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE YEAR ENDED AUGUST 31, 2022 WATER & WASTEWATER SINGLE FAMILY Jam RENTALS | id FINANCIAL RESULTS Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development 11.
Slide 12: Land Development
LAND DEVELOPMENT + Developing the 930 acre Sky Ranch + Can accommodate up to 3,200 residential lots + Can accommodate up to 2 million square feet of commercial development (1,800 SFE's) - 15 miles east of downtown Denver and 4 miles south of DIA 12.
Slide 13: Sky Ranch Phase 1
| Pst ee pele e] + All lots delivered (509) + As of 8/31/2022 all lots delivered with homes built or in final stages of construction + Estimated that homes will be fully sold out by the end of 2022 + All 505 taps sold (4 units remain with PCYO for SFR) + Recognized $36.7 million in lot revenue to da
Slide 14: Sky Ranch - Phase Overview
SKY RANCH - PHASE 2 OVERVIEW Phase 2A-76% complete PARTNERING HOMEBUILDERS DRHORTON [ah Icusences kb LENNAR [fon + Approximately 850 lots in total + 804 lots under contract with home builders + 46 lots reserved for rental business with an additional 100 potential plats + All 229 finished lots in Pha
Slide 15: Sky Ranch Phase 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* 1.2m GROSS PROCEEDS $ 19:1m
Slide 16: Sky Ranch Academy
Sky Ranch Academy + 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-7 opening August 2023 for 2
Slide 17: Market Conditions
Market Conditions Pent-up demand for new home sales Interest Rates 2005/2006 - 1.4M = 2021/2022 - 600K Abrupt uptick in 2022 - 3% to 7% Historicaly: 70s - 9%, 80s - 13%, 90s -8%, 2000s - 6%, 2010s - 4% Short-term mortgage options 2:1 buy downs Contracting Market Home sales down 17% year over year Se
Slide 18: Housing Statistics
Housing Statistics Supply of Homes Is Nothing Like Last Time Annual Average of Months' Supply of Homes for Sale, 1999-2022 104 83 65 59 48 47 45 46 48 44 45 1989 2009 2601 2002 2003 2004 2005 2005 2007 2000 2009 210 2011 212 2013 2004 2S 29% 2e18 2018 2020 2021 Tosa Lending Standards Still Under Con
Slide 19: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE YEAR ENDED AUGUST 31, 2022 WATER & WASTEWATER SINGLE FAMILY Jam RENTALS | id FINANCIAL RESULTS Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development 19.
Slide 20: Single-Family Rentals
Single-Family Rentals 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 on a new role as propert
Slide 21: Market Watch
284 Market Watch a 701 474 454 _ 395 @ | Steady increase in lease price while other cs oe || i] 167 CI ea —— = rental types fell @ Detached and Townhomes are more affordable per square foot and per bedroom fmm Multi-Family/Condo/lownhome ggg Single-Family Kesidence NEW LISTINTS BY PRICE RANGE @ Deta
Slide 22: Our Single Family Rentals - Operations and Cash Flows
Our Single Family Rentals - Operations and Cash Flows Annualized Rental Income, $ 82 $ 38 $ 33 $ 459 $ 1,640 Operating Costs 30 36 12 168 600 ao a 2 "2 vm oa Net operatingincome $ 21 $ 25 $ 8 $ 18 $ 420 Add back non-cash items 23 28 9 129 460 Cash flows from operations $ 4400 $s 53 $ we 246 $ 880 “f
Slide 23: Phase 1-4 Rental Homes
PHASE 1-4 RENTAL HOMES March 2021 August 2022 June 2021 November 2021 onstructic Initial Three Homes Financed with our Bank Capitalized costs + Flexible debt usage up to 70% of appraised value + Low cost capital (3.75 - 4.25%) Financed costs - House appraisal value estimated at $547,000 based on hom
Slide 24: Phase 2A - Rental Homes
PHASE 2A - 10 RENTAL HOMES + More diverse product mix with: + 4- duplex homes + 4- 35' alley load homes + 2 - 45' detached homes + Price ranges in rental units from $2,400 - $3,000/month 24.
Slide 25: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE YEAR ENDED AUGUST 31, 2022 WATER & WASTEWATER SINGLE FAMILY Jam RENTALS | id FINANCIAL RESULTS Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development 25.
Slide 26: Our Year in Review
Q WATER & WASTEWATER + $67.4 m in water assets (cost) + Acquired 370 acre-feet of Lost Creek Water (for $3.7M with $3M financed) + 404.9 million gallons delivered in 2022 Our Year in Review! 9 LAND DEVELOPMENT + Phase 1 100% Complete, Phase 2A 76% complete + $24.1M in reimbursable public improvement
Slide 27: Year Performance
5 YEAR PERFORMANCE Shareholder Value Revenue (thousands) Net Income (thousands) Margin (thousands) 25000 18000 $3000 $20,000 $16,000 525000 14900 5,000 ce $2090 “ sap oloOPs s10000 a $15,000 Soe 4 $8,000 e° ‘$6,000 $10,000 $500 $4,000 ‘ — a | emis e209 E2000 YEDOR E22 . $ E2018 FYE 2019 ~FYE2020—FYE
Slide 28: Year Asset Growth
5 Year Asset Growth Strong asset growth of 75% over the last five years driven by strategic investments and operational excellence. The compound annual growth rate of 11.85% (CAGR) represents the company's ability to utilize its assets to generate returns 2017 2018 2019 2020 2021 2022 @ Total Assets
Slide 29: Environmental, Social & Governance
Environmental, Social & Governance + Employment of an ESG Initiatives Specialist + Development of an ESG Policy - first annual ESG Report to be issued in November 2022 » Added an ESG page on company website + Implemented an ESG strategy that involves: + Adherance to an ESG framework for data disclos
Slide 30: Updated Environmental Policy
- Updated Environmental Policy - Began assessing, tracking, and disclosing: energy management/usage, network efficiency, water usage and wastewater collection data data - Began tracking and assessing employee satisfaction and water affordability/access - Developed a staff diversity matrix + Updated
Slide 31: Consolidated Balance Sheet (August 31, 2022 and 2021)
(ln thousands, except shares) August 31, 2022 August 31,2021 ASSETS: ‘Current assets Cash and eash equivalents 8 3404S 20,117 ‘Trade aecounts receivable, net 2425 1,832 Prepaid expenses and other assets 467 458 Land under development — 608 Notes receivable - related party, reimbursable public improv
Slide 32: Consolidated Statement of Operations
(in thousands, except share information) Revenues ‘Metered water usage from: Municipal eustomers Commercial eustomers ‘Wastewater treatment fees ‘Water and wastewater tap feos Lotsales Project management fees ‘Single-family rentals Special facility projects and other Total revenues Expenses: ‘Water
Slide 33: Share Repurchase Authorization / Upcoming Dates
Q SHARE REPURCHASE AUTHORIZATION / UPCOMING DATES | Stock Repurchase Program - 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. | Important Upcomin
Slide 34: 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 Chair of the Chair of the Board Audit Committee Director Wanda J. Abel Daniel R. Kozlowski Fredrick A. Fendel III. Director
Slide 35: 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 oO) www.purecyclewater.com U es | O a S . Follow us on... W Twitter: @PureCycleCorp (BB Linkedin: https:/www.linkedin.com/company/pure
Slide 36: Pure Cycle Corporation
NASDAQ: PCYO www.purecyclewater.com @PureCycleCorp PURE CYCLE CORPORATION EARNINGS PRESENTATION FOR THE YEAR ENDED AUGUST 31, 2022 WATER & WASTEWATER SINGLE FAMILY Jam RENTALS | id FINANCIAL RESULTS Presented by Mark Harding, CEO | Kevin McNeill, CFO | Dirk Lashnits, VP Land Development 36.