Slide 1: 2023 LD Micro Conference
2023 LD Micro Conference October 4, 2023 S PURE CYCLE CORPORATION WASTEWATER eDEVELOPMENT i, rae E “LAND DEVELOPMENT: a er pS COMPANY eS OVERVIEW oo ea a Presented by Ma EO
Slide 2: Safe Harbor Statement
COMPANY OVERVIEW 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 a
Slide 3: We Operate Multiple Complementary Segments
WE OPERATE MULTIPLE COMPLEMENTARY SEGMENTS... ... driving value for stakeholders with water, land, and rentals Water Wastewater Resource Development Segment wn nearly 30K acre-feet of water rights (surface and ground water) + Sustainable water rights we estimate can serve up to 60,000 SFEs + Denver
Slide 4: 2023 LD Micro Conference
2023 LD Micro Conference October 4, 2023 S PURE CYCLE CORPORATION WASTEWATER eDEVELOPMENT i, rae E “LAND DEVELOPMENT: a er pS COMPANY eS OVERVIEW oo ea a Presented by Ma EO
Slide 5: Wholesale Water & Wastewater
olesale Water & Wastewater Well/Diversion Distribution Wastewater Treatment Treatement 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 ass
Slide 6: Water System
Water System Balance With Losses and Required Discharges Ground Water Supply : later System Treatment ) ) ) ee kvaporatif) hodcion® Surface Water Supply Outdoor Irrigation Discharge to i g 6
Slide 7: Water Infrastructure
WATER INFRASTRUCTURE Water Assets/Infrastructure Inventory All major infrastructure is in service to support all of Phase 2 of the Sky Ranch development | + 2 Wastewater reclamation ——_ facilities (one is a zero-discharge state of the art facility) + 20+ miles of transmission pipeline F Q3-2023 FY 2
Slide 8: Water and Wastewater Customers
WATER AND WASTEWATER Customers -1,326 System Capacity New Residential Residential water and wastewater customers added with every new phase at Sky Ranch + Avg. residential customer generates $1,500 per year in revenue + Future Sky Ranch commercial phases to include the equivalent of 1,800 taps + Mor
Slide 9: Current System Capacity
CURRENT SYSTEM CA Supply 3.233 Total MGD From Wells 1584 MGD Box Elder Wells 1.022 MGD Lowry 367 MGD Sky Ranch 259 MGD i DHS/ AFG a5MGD [WISE Storaae Available Demand Demand Available Capacity ©&G operations Commercial - export anc other Results Potential of ~ $88m in water revenues at developed cap
Slide 10: Tap Fees - Portfolio Capacity
Tap Fees - Portfolio Capacity (60,000) Supply Demand/Capacity 30,000 Acre Feet 60,000 Connections Combined Water Supply Available Capacity Current System Capacity ~N 1136 Taps Results $2.3 Billion Type Fee Per SFE Water Tap $ 30.977 Sewer Tap $7250 Total $ 38,227 We own or control the water rights a
Slide 11: 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 Oil rig can drill 20 wells per year Average $250,000 of water sales per well More than 200 squ
Slide 12: View Looking North of Development Encroachment
View looking north of development encroachment on Lowry Range exclusive Service Area
Slide 13: 2023 LD Micro Conference
2023 LD Micro Conference October 4, 2023 S PURE CYCLE CORPORATION WASTEWATER eDEVELOPMENT i, rae E “LAND DEVELOPMENT: a er pS COMPANY eS OVERVIEW oo ea a Presented by Ma EO
Slide 14: Land Development
CABND DEVELOPMENT + Developing the 930 acre Sky Ranch (Currently developing Phase 2A and Phase 2B) + Can accommodate up to 3,200 residential lots + Can accommodate up to 2M sq. ft. of commercial development (1,800 SFE's) - 15 miles east of downtown Denver and 4 miles south of DIA
Slide 15: Sky Ranch Phases and Partnering Homebuilders
K-7 opening in 8/2023 High School opening in 2025 Phase 1 - 509 lots 100% Complete - Completed 2022 Rental lots - 4 lots ‘FAMILY a | VELOPME PARTNERING HOMEBUILDERS LENNAR taylor | morrison —— kb , D-RHORTON eve oowe cate Pu [@y, |CHALLENGER =” Veena Louiieter TURE OAR a HOMES ‘OPEN SPACE’ a - ( RIC
Slide 16: Sky Ranch Phase Financial and Quantitative Data
SKY RANCH PHASE 2 Financial and Quantitative Data TOTAL LOT SALES BY BUILDER TOTALLOTS BY TYPE TOTAL LOTS BY BUILDER 15.08% 159 $24.5m 19.29% 45 LOTS @ AS LOTTS(ALLEY) @ SOLOTS @ 3sLoTs @ vuPLexs pg2 @ CHALLENGER @ LENNAR @ ORHORTON ( KBHOMES @ PcyosFR Phase 2D (206 LOTS) Lot Revenue** $ 155m Tap Fe
Slide 17: Sky Ranch Capacity Projections
SKY RANCH CAPACITY PROJECTIONS Development Progress S580m, 5,000 SFEs ‘Commercial 1,800 SFES. Remaining lential 1,850 SFES Sold Not Started Complete Under Construction *These are projections based on the performance of completed phases ‘Sky Ranch is zoned to accommodate up to 3200 single- and multi-
Slide 18: Market Conditions
Market Conditions Continued demand for new home sales 2005/2006 - 1.4M 2021/2022 - GOOK Interest Rates Abrupt uptick in 2022 - 3% to 7% (70s - 9%, 80s - 13%, 90s -8%, 2000s - 6%, 2010s - 4%) Mortgage rates stabalizing - Lot deliveries still trailing still at historical averages home starts All homeb
Slide 19: Sky Ranch Academy
Ze SKY RANCH ACADEMY 380 Students K-7 Pure Cycle Corporation | Earnings N Presentation pg 19
Slide 20: 2023 LD Micro Conference
2023 LD Micro Conference October 4, 2023 S PURE CYCLE CORPORATION WASTEWATER eDEVELOPMENT i, rae E “LAND DEVELOPMENT: a er pS COMPANY eS OVERVIEW oo ea a Presented by Ma EO
Slide 21: Single Family Rentals
(Sidele Family Rentals Pure Cycle contracts to build single family homes in it's Sky Ranch Master Planned Community to hold for rentals. + Retaining lots within the community it's building and adding value + Lot development costs fully recovered (horizontal costs and tap fees) + Contracting with exp
Slide 22: Single Family Rentals
Single Family Rentals Phase 1&2 Four units completed and rented in Phase 1 Flexible debt usage up to 70% of appraised value Low cost capital (First 3 units at 3.75 - 4.25%, working on next 11) House appraisal value estimated at $547,000 based on homes sold in Sky Ranch per NMLS. Annual appreciation
Slide 23: Our Single Family Rentals - Operations and Cash Flows
Our Single Family Rentals - Operations and Cash Flows Actual Results Rental Income $ Direct Operating Costs Interest and depreciation expense Net $ Add back non-cash items Cash flows before GSAS tax $ 82 $ 30 31 21 s 23 44 Ss “fon month ended 8/31/2022 SFR Lots Distribution (300 Planned) 95.33%/ Ann
Slide 24: 2023 LD Micro Conference
2023 LD Micro Conference October 4, 2023 S PURE CYCLE CORPORATION WASTEWATER eDEVELOPMENT i, rae E “LAND DEVELOPMENT: a er pS COMPANY eS OVERVIEW oo ea a Presented by Ma EO
Slide 25: Water & Wastewater Financial Results
WATER & WASTEWATER + $68.0 m in water assets (cost) + 1,326 total taps served + 262.6M gallons delivered nine months ended 5/31/2023 + Continued acquistions to ensure sustainability Financial Results YTD Q3 Summary LAND DEVELOPMENT + Phase 2A - 90% complete + Phase 2B - 21% complete, received Ist mi
Slide 26: Financial Results
$16M $14M g 3 = (in thousands) oe B = 0 Revenue Financial Results Fiscal YTD 03-2023 2019 2020 2021 $10.9M $15.8M $12.3M $12.1M 2022 2023 (in thousands) Segment Revenue YTD 2019 =YTD2020 YTD 2021 @ ww @ Land Development $0.9M $4.9M $6.2M $5.2M $6.0M $11.5M $4.9M $4.3M $7.4M $5.9M $5.9M YTD 2022, = Y
Slide 27: Financial Results
(in thousands) Financial Results Fiscal YTD Q3-2023 Net Income $0.1 $6.1M $18.3M $4.1M $3.6M i) Diluted EPS $0.25 $0.77 $0.15 2019 2020 2021 2022 2023 ] 2019 | 2020 2021 |) 2022, | 2023
Slide 28: Balance Sheet May 31, 2023
(in thousands, except shares) May 31, 2023 ASSETS: (unaudited) Current assets: Cash and cash equivalents s 26,000 Trade accounts receivable, net 2.671 Land under development 7 Income taxes receivable 190 Prepaid expenses and other assets Total current assets Restricted cash Investments in water and
Slide 29: Income Statement
INCOME STATEMENT (fn thousands, except share information) Revenues: Metered water usage from: Municipal customers Commercial customers Wastewater treatinent fees Water and wastewater tap fees Lot sales Project management fees Single-family rentals Special facility projects and other Total revenues E
Slide 30: Other Information / Upcoming Dates
Q OTHER INFORMATION / 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. No shares repurchased as of this d
Slide 31: Leadership and Board of Directors
Q LEADERSHIP AND BOARD OF DIRECTORS Mark W. Harding Marc Spezialy 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 Director and Chair of the Director and Chair of the Nom
Slide 32: 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 9 www.purecyclewater.com U es | O N S . Follow us on... W Twitter: @PureCycleCorp (BB Linkedin: https://www. linkedin.com/company/pure-c
Slide 33: 2023 LD Micro Conference
2023 LD Micro Conference October 4, 2023 S PURE CYCLE CORPORATION WASTEWATER eDEVELOPMENT i, rae E “LAND DEVELOPMENT: a er pS COMPANY eS OVERVIEW oo ea a Presented by Ma EO