Cadiz, Inc. · NASDAQ:CDZI
Cadiz — iAccess Conference December 2024
30 slides from Cadiz's conference presentation, December 2024
Slide 1: Clean, reliable, affordable water for people
Clean, reliable, affordable water for people. Solutions Equity Environment We take a holistic We partner with Our leading-edge approach to meet communities to secure innovation sets the society’s pressing access to safe, reliable standard for Investor Presentation needs for long-term water supplies.
Slide 2: Safe Harbor Agreement
Investor Presentation | 2024 Safe Harbor Agreement During the course of this presentation, we may 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 f
Slide 3: Clean Water Solutions
Founded in 1983, Cadiz is a California water solutions company with uniquely valuable assets to provide clean, reliable and affordable water for people. Land Water Storage Treatment Pipelines New Water Supply - 50,000 acre-feet per Underground Storage Capacity - year – 2.5 million acre-feet over 50
Slide 4: Today and Tomorrow
Investor Presentation | 2024 From project developer to fully- Tomorrow Today integrated solution provider. Today Largest groundwater bank in the Southwest, with asset value unlocked via Highly differentiated water, pipeline partnership with Native American Tribes Yesterday and technology assets with
Slide 5: About the Mojave Groundwater Bank
About the Mojave Groundwater Bank • Large aquifer at base of a 2,000 sq. mile watershed system in the eastern Mojave Desert (San Bernardino Co, California) located between major water infrastructure systems serving Southwestern U.S. population centers. • 30-50 Million acre-feet of groundwater in sto
Slide 6: Mojave Groundwater Bank compared to Lake Mead
Mojave Groundwater Bank compared to Lake Mead – America’s Largest Reservoir Lake Mead 250 miles2 160,000 acres 28 million acre-feet storage capacity Cadiz 2,000 miles2 1.2 million acres 30-50 million acre-feet water in storage 6
Slide 7: Groundwater bank would facilitate water trading across California
A fully operational groundwater bank at Cadiz would facilitate water trading & exchanges across California and the Southwest - ~$800M Construction Capital Investment Required. 7
Slide 8: Value of Water
Value of Water The value of Cadiz water supply has increased steadily over time. Cadiz water is competitive with new storage and supply in California and wholesale water rates. New Supply Cadiz Supply/ MGB $1,650/ AF (delivered) Desalination (Doheny) $2,200/AF Carson Recycling $1,830/AF (assumes sub
Slide 9: 2024 Highlights
2024 Highlights Project Construction Financing LOIs with lead investors identified totaling $250M of $401M. Long-term water purchase agreements signed for 85% capacity (21,275 AFY) of the Northern Pipeline, including disadvantaged communities along the pipeline route. Optioned 180 miles of ste
Slide 10: Net Cash Flows to Cadiz Inc.
Net Cash Flows to Cadiz Inc. Cadiz Ranch ATEC Filter Fenner Gap Managing Member (Land) Systems Mutual Water Co. NewCo Approx 25% of 100% Water NewCo Cash ATEC Supply Flows Agriculture Products Revenues Land Leases 49% Treatment Groundwater Hydrogen Solar Services Banking / Storage
Slide 11: NewCo LLC Sources & Uses
NewCo LLC Sources & Uses The following is the estimated sources and uses for the NewCo LLC funding of project construction costs: ($ in 000s) Sources: Uses: Investor under non-binding LOI 150,000 Upfront Payment to Cadiz Inc. 51,000 Tribal Entities 201,000 Construction Costs (estimated): Other Publi
Slide 12: NewCo Cash Flows Forecast
NewCo Cash Flows Forecast Water Supply Cash Flows Water Storage / Groundwater Banking Cash Flows Contract Price Cap = $1,650 per AFY up to 50,000 AFY Reservation Fees - $1,500 per AF for 1 million AF of storage capacity $350 - 51% Reservation To NewCo LLC Capital Costs To NewCo LLC $765 / AF $500/AF
Slide 13: Illustrative Cash Flow Outlook to Cadiz
Illustrative Cash Flow Outlook to Cadiz Net $ Average Cumulative Start (1) (6) per AF Annual CF Project CF Date Water Supply $ 850.00 $50 M $2.5 B 2026/2027 Water Storage (2) Reservation Fees $ 735.00 $52.5M (3) $735 M 2028 Management Fees $ 12.25 $15 M $750 M 2028 Newco Ownership Interest/Profit Sh
Slide 14: Summary
Investor NASDAQ: CDZI Presentation | 2024 Summary Uniquely valuable portfolio of assets. > $5 billion in potential cash flows. Water Supply + Water Storage + Water Transport + Water Treatment • 45,000 acres of land with water • 2,000 square mile watershed • Multiple gas and railroad lines • Modular,
Slide 15: Cap Table
Investor Presentation | 2024 CAP TABLE ($ in millions) 9/30/2024 Cash and cash equivalents $29.1 Senior secured (non-convertible) term loan(1) $21.2 Senior secured (convertible) term loan (2) $20.5 Senior unsecured convertible loan(3) $16.6 Series A perpetual preferred stock (CDZIP) $57.5 Common Sto
Slide 16: Contacts
NASDAQ: CDZI www.cadizinc.com Contacts: Stan Speer, CFO [email protected] Courtney Degener, VP-IR [email protected]
Slide 17: Appendix – Board Bios
Appendix — Board Bios & Cadiz
Slide 18: About Chairman & CEO Susan Kennedy
Investor Presentation | 2024 About Chairman & CEO Susan Kennedy • Joined Board in February 2021, elected Chairman in February 2022, & appointed CEO in January 2024 • Led a distinguished career as a policymaker and entrepreneur • Built a formidable reputation through two decades at the highest levels
Slide 19: Kennedy's Leadership Backed by New Board of Directors
Investor Presentation | 2024 Kennedy’s Leadership Backed by New Board of Directors Stephen E. Courter Maria Dreyfus Independent Director Independent Director • Over 30 years of experience in management positions in the • CEO and Founder of Ardinall Investment Management, focused on sustainable techn
Slide 20: Appendix – Climate Change impacts on Water in the West
Appendix - Climate Change impacts on Water in the West 21
Slide 21: The hydrological cycle is spinning out of balance
“The hydrological cycle is spinning out of balance…” WMO State of Global Water Resources Report 2022 Droughts, extreme rainfall events, melting snow and ice… threaten long-term water security for billions of people. 22
Slide 22: The Water Planet
The problem is not water scarcity The Water Planet 23
Slide 23: The End of Snow Threatens to Upend 76 Million American Lives
The problem is snow The End of Snow Threatens to Upend 76 Million American Lives 24
Slide 24: Snowpacks in the west are steadily declining
Snowpacks in the west are steadily declining Source: California Dept of Water Resources May 2024 25
Slide 25: Where do we store freshwater?
Snow and snowmelt make up more than half our water supply Where do we store freshwater? 30% 60% 40% Snowpack Reservoirs Groundwater 26
Slide 26: Extreme is the new normal
Extreme is the new normal 2022 2023 Western megadrought is worst in 1,200 years, California has so much snow that flood intensified by climate change. danger will last through the year. 27
Slide 27: Climate whiplash pattern began with the 1976-77 drought
Climate “whiplash” pattern began with the 1976-77 drought Statewide annual precipitation (1895–2021) Source: WRCC, 2022 https://oehha.ca.gov/media/02precip.pdf May 2024 28
Slide 28: The future is rain
The future is rain. South South Central euthern Central euthern Sierra Sierra Northern Northern Sierra Sierra SNOW SNOW MIX 29 th Cadiz
Slide 29: Snowmelt and precipitation are moving South
Snowmelt and precipitation are moving South Source: California Dept of Water Resources Source: Data from USGS CA Dept Water Resources 30
Slide 30: Most of our water storage systems are in the North
Most of our water storage systems are in the North Source: California Dept of Water Resources Our water storage and conveyance system was designed to capture predictable Sierra snowmelt, not flash floods and atmospheric rivers Source: Data from USGS CA Dept Water Resources 31