Cadiz Announces Northern Pipeline Now Contracted for 85% Capacity
Cadiz, Inc. (NASDAQ: CDZI) has announced securing water purchase agreements for 85% of capacity of its Northern Pipeline, following the execution of the fifth agreement in 2024. The cumulative total under contract is now 21,275 acre-feet per year, with contracts spanning 40-50 years. The Northern Pipeline, stretching 220 miles, has a total capacity of 25,000 AFY. Cadiz expects to begin construction of the Project in 2025, with initial water delivery targeted for 2026.
The company anticipates net revenue of approximately $850 per AF in 2024 dollars, subject to annual adjustments. Cadiz is also planning to contract for water delivery via the Southern Pipeline later this year, which will enable an additional 25,000 acre-feet per year of water supply. The company is working on forming a Master Partnership to fund the Project's capital infrastructure costs.
Cadiz, Inc. (NASDAQ: CDZI) ha annunciato di aver stipulato accordi per l'acquisto di acqua per il 85% della capacità del suo Northern Pipeline, dopo l'esecuzione del quinto accordo nel 2024. Il totale cumulativo sotto contratto è ora 21.275 acri-piede all'anno, con contratti che si estendono per 40-50 anni. Il Northern Pipeline, che si estende per 220 miglia, ha una capacità totale di 25.000 AFY. Cadiz prevede di iniziare la costruzione del Progetto nel 2025, con la consegna iniziale dell'acqua prevista per il 2026.
L'azienda prevede un reddito netto di circa $850 per AF in dollari del 2024, soggetto ad aggiustamenti annuali. Cadiz sta anche pianificando di stipulare un contratto per la consegna dell'acqua attraverso il Southern Pipeline entro la fine di quest'anno, il che consentirà un ulteriore approvvigionamento di 25.000 acri-piede all'anno. L'azienda sta lavorando alla formazione di una Master Partnership per finanziare i costi delle infrastrutture del Progetto.
Cadiz, Inc. (NASDAQ: CDZI) ha anunciado la obtención de acuerdos de compra de agua para el 85% de la capacidad de su Northern Pipeline, tras la ejecución del quinto acuerdo en 2024. El total acumulado bajo contrato ahora es de 21,275 acres-pie por año, con contratos que abarcan de 40 a 50 años. El Northern Pipeline, que se extiende por 220 millas, tiene una capacidad total de 25,000 AFY. Cadiz espera comenzar la construcción del proyecto en 2025, con la entrega inicial de agua prevista para 2026.
La empresa anticipa ingresos netos de aproximadamente $850 por AF en dólares de 2024, sujetos a ajustes anuales. Cadiz también planea contratar la entrega de agua a través del Southern Pipeline más adelante este año, lo que permitirá un suministro adicional de 25,000 acres-pie por año. La empresa está trabajando en formar una Master Partnership para financiar los costos de infraestructura del Proyecto.
Cadiz, Inc. (NASDAQ: CDZI)는 2024년에 다섯 번째 계약을 체결한 후 Northern Pipeline의 85% 용량에 대한 물 구매 계약을 확보했다고 발표했습니다. 현재 계약상 누적 총량은 21,275 에이커-피트 per year로, 계약 기간은 40-50년입니다. Northern Pipeline은 220마일에 걸쳐 있으며, 총 용량은 25,000 AFY입니다. Cadiz는 2025년에 프로젝트 건설을 시작할 것으로 예상하며, 초기 물 공급은 2026년을 목표로 하고 있습니다.
회사는 2024년 기준으로 AF당 약 $850의 순수익을 예상하고 있으며, 연간 조정이 적용됩니다. Cadiz는 올해 말 Southern Pipeline을 통한 물 공급 계약을 체결할 계획이며, 이를 통해 연간 추가로 25,000 에이커-피트의 물 공급이 가능해집니다. 회사는 프로젝트의 자본 인프라 비용을 충당하기 위해 마스터 파트너십 형성을 진행 중입니다.
Cadiz, Inc. (NASDAQ: CDZI) a annoncé avoir sécurisé des contrats d'achat d'eau pour le 85% de la capacité de son Northern Pipeline, suite à l'exécution du cinquième contrat en 2024. Le total cumulé sous contrat est maintenant de 21,275 acres-pieds par an, avec des contrats s'étendant sur 40 à 50 ans. Le Northern Pipeline, qui s'étend sur 220 miles, a une capacité totale de 25 000 AFY. Cadiz s'attend à commencer la construction du projet en 2025, avec une livraison initiale d'eau prévue pour 2026.
La société prévoit un revenu net d'environ 850 $ par AF en dollars de 2024, sous réserve d'ajustements annuels. Cadiz envisage également de conclure un contrat pour la livraison d'eau via le Southern Pipeline plus tard cette année, ce qui permettra de fournir 25 000 acres-pieds supplémentaires par an. La société travaille à la formation d'un partenariat principal pour financer les coûts d'infrastructure du projet.
Cadiz, Inc. (NASDAQ: CDZI) hat die Sicherung von Wasserlieferverträgen für 85% der Kapazität seiner Northern Pipeline bekannt gegeben, nachdem der fünfte Vertrag im Jahr 2024 abgeschlossen wurde. Die kumulierte Gesamtmenge unter Vertrag beträgt nun 21,275 acre-feet pro Jahr, mit Verträgen, die über 40-50 Jahre laufen. Die Northern Pipeline erstreckt sich über 220 Meilen und hat eine Gesamtkapazität von 25.000 AFY. Cadiz erwartet, dass der Bau des Projekts 2025 beginnt, mit einer anfänglichen Wasserversorgung, die für 2026 angestrebt wird.
Das Unternehmen rechnet mit netto Einnahmen von etwa $850 pro AF in 2024 Dollar, vorbehaltlich jährlicher Anpassungen. Cadiz plant auch, noch in diesem Jahr einen Vertrag zur Wasserlieferung über die Southern Pipeline abzuschließen, was eine zusätzliche Wasserversorgung von 25.000 acre-feet pro Jahr ermöglichen wird. Das Unternehmen arbeitet an der Bildung einer Master Partnership zur Finanzierung der Infrastrukturkosten des Projekts.
- Secured water purchase agreements for 85% of Northern Pipeline capacity
- Cumulative total of 21,275 acre-feet per year under contract
- Long-term contracts spanning 40-50 years
- Expected net revenue of $850 per acre-foot in 2024 dollars
- On track to begin construction in 2025 with initial water delivery in 2026
- Planning to contract for additional 25,000 acre-feet per year via Southern Pipeline
- Project construction has not yet begun
- Remaining 15% of Northern Pipeline capacity still to be contracted
- Capital funding for the project not yet secured
Insights
This announcement marks a significant milestone for Cadiz's Northern Pipeline project. Securing
The projected net revenue of
Cadiz's announcement is financially promising. The
With a projected annual revenue of approximately
While Cadiz touts its project as a solution to water scarcity, it's important to consider the environmental implications. Groundwater extraction at this scale could potentially impact desert ecosystems. The project's sustainability will likely face ongoing scrutiny from environmental groups and regulators.
However, if executed responsibly, the project could provide critical water security to underserved communities in a climate change-impacted region. The planned storage of imported water could also offer valuable flexibility in managing regional water resources. Investors should monitor ongoing environmental assessments and regulatory approvals as key risk factors for project realization and long-term viability.
Achieves important milestone following execution of fifth water supply delivery agreement in 2024
Under the five water supply agreements signed so far this year, the Project is expected to deliver an annual supply of water under "take-or-pay" contracts over 40 – 50 years. The Northern Pipeline, which stretches approximately 220-miles northwest from Cadiz,
"Executing a critical mass of water purchase agreements to support construction on the Northern Pipeline has been our primary objective this year," said Cadiz Chairman and CEO Susan Kennedy. "These agreements, which cumulatively represent
The Company is in final stages of contracting for the remaining capacity of the Northern Pipeline and anticipates construction of the Project to begin in 2025 as planned with initial water delivery targeted for as early as 2026. Following construction of the Project, Cadiz expects to receive net revenue of approximately
The Company plans to begin contracting for water delivery via the Project's Southern Pipeline later this year. When constructed, the Southern Pipeline, will extend 43-miles southeast from Cadiz to the Colorado River Aqueduct, enabling delivery of an additional 25,000 acre-feet per year of water supply and allowing use of the Cadiz aquifer for storage of an additional one-million acre-feet of imported water. The Company is currently working with several public entity partners on forming a Master Limited Partnership to fund the Project's capital infrastructure costs and secure the capital necessary to begin construction in 2025.
Once fully online, the Project is expected to be the largest new groundwater banking operation in the
To view copies of the 2024 Agreements, visit https://www.cadizinc.com/agreements.
About Cadiz, Inc.
Founded in 1983, Cadiz, Inc. (NASDAQ: CDZI) is a
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, the expected benefits to be derived from our water purchase agreements, the projected timeline for construction of the Project and operation of the Northern Pipeline, expectations of obtaining financing needed for construction to begin, the formation of a Master Limited Partnership with public entities to fund capital infrastructure costs, and expected revenue from the water purchase agreements, which are subject to risks and uncertainties, many of which are beyond the control of the Company, including the Company's ability to fulfill the conditions precedent in the water purchase agreements, obtain requisite financing for construction of the Project and complete the needed construction for water delivery to occur. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements include whether the parties to the water purchase agreements referenced in this release will be able to obtain the funding contemplated by the agreements, potential delays in the supply chain for materials or permitting, and other factors detailed in the Company's Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent quarterly and current reports. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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SOURCE Cadiz, Inc.
FAQ
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