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Cadiz - CDZI STOCK NEWS

Welcome to our dedicated page for Cadiz news (Ticker: CDZI), a resource for investors and traders seeking the latest updates and insights on Cadiz stock.

Overview of Cadiz Inc.

Cadiz Inc. (NASDAQ: CDZI) is a California water solutions company that specializes in the development and management of renewable water resources. With a core focus on groundwater banking, sustainable water management, and water supply and storage, the company acquires vast land holdings endowed with significant water resources, turning these assets into integrated solutions for water conservation, agricultural development, and environmental management. Operating through a dual-segment approach involving Land and Water Resources and its subsidiary ATEC Water Systems, Cadiz is positioned to address critical challenges in water access, particularly in arid regions of Southern California.

Business Model and Operational Strategy

At its heart, Cadiz Inc. leverages its large portfolio of land to develop a series of interrelated water management projects. The company’s primary project, the Cadiz Valley Water Conservation, Recovery and Storage Project, aims to capture billions of gallons of groundwater that would otherwise be lost to evaporation. By actively managing its groundwater aquifer system, Cadiz seeks to create an efficient and reliable water storage mechanism that serves multiple community needs, from residential consumption to industrial use.

Cadiz generates revenue and enhances its market position through a diversified approach:

  • Water Supply and Storage: The company develops extensive groundwater banking systems that capture and conserve precious water resources, making them available to water agencies and public partners.
  • Pipeline Infrastructure: With an expansive network of pipelines, including a recently developed Northern Pipeline that spans over 220 miles, Cadiz is uniquely positioned to deliver water to communities across Southern California.
  • Water Treatment and Filtration: Through its subsidiary ATEC Water Systems, Cadiz offers state-of-the-art water treatment solutions designed to remove common contaminants such as iron, manganese, arsenic, and other constituents, ensuring clean and reliable water quality for a wide range of consumers.
  • Land Conservation and Organic Agriculture: The company’s properties in the eastern Mojave Desert not only support water projects but also provide a conducive environment for organic farming and land conservation initiatives.

Innovative Water Management Solutions

Cadiz’s integrated approach to water resource development is anchored in the concept of maximizing available water supplies while mitigating the environmental impacts of traditional water use. The Cadiz Valley Project exemplifies this by utilizing a series of sophisticated engineering techniques to capture groundwater before it evaporates. This not only ensures that water is conserved but also helps in recharging local aquifers, thereby supporting long-term sustainability in water-scarce regions.

The company’s water treatment arm, run through its subsidiary ATEC Water Systems, leverages breakthrough filtration technologies that are both scalable and cost-effective. With systems customized for different capacities—from urban municipalities to rural communities—ATEC’s solutions have been deployed at hundreds of locations, addressing issues ranging from discolored water to significant public health concerns tied to water contaminants.

Strategic Partnerships and Market Position

Another significant pillar of Cadiz's business is its network of strategic partnerships with public sector entities, local water agencies, and private investors. These collaborations are designed to enhance the capacities of local water systems and reduce dependency on traditional water sources, such as those from the State Water Project or imported supplies. Key collaborations include agreements with cities and water districts in the Mojave Desert and Inland Empire, where Cadiz’s reliably conserved water is integral to meeting regulatory and consumer demand.

The company’s commitment to secure water supply is further evidenced by its repeated engagement in infrastructure projects with long-term contractual frameworks. These contracts allow water agencies to secure a stable water source at cost-effective terms, which in turn supports robust financing of large-scale pipeline and storage projects.

Technology, Infrastructure, and Environmental Stewardship

Cadiz’s dual focus on technology and infrastructure innovation establishes it as a key player in the evolving water solutions sector. On the technology side, the company has invested in advanced water treatment filtration technologies that are recognized for their efficiency and scalability. The in-line treatment systems developed by ATEC utilize proprietary filter media processes to remove contaminants by adsorption, making them suitable for varied applications ranging from small community water systems to expansive industrial uses.

In parallel, the firm’s commitment to environmental stewardship is reflected in its investments in land conservation. By preserving over 45,000 acres of land in biologically diverse regions of California, Cadiz not only safeguards water resources but also supports organic agriculture and wildlife conservation. Its initiatives in managing the largest desert tortoise land conservation bank in the state further highlight its integrated approach to environmental management.

Comprehensive Infrastructure Development

Infrastructure is at the core of Cadiz’s operational strategy. The company owns and manages a significant pipeline network that spans hundreds of miles, connecting its groundwater banks to communities in need of reliable water supply. This network is crucial for the delivery of conserved water and serves as a backbone for the company’s broader agenda of water security in Southern California. In addition to its pipelines, Cadiz is actively involved in repurposing legacy infrastructure assets, such as the acquisition of steel pipe assets from the terminated Keystone XL Pipeline Project, repurposing them for water transportation needs. This innovative reuse of existing infrastructure not only accelerates project timelines but also serves as a model for sustainable infrastructure management.

Rhea-AI Summary

Cadiz, a California water solutions company, announced a quarterly cash dividend for Q2 2024 on its 8.875% Series A Cumulative Perpetual Preferred Stock. Holders of Series A Preferred Stock will receive $560.00 per share, while holders of depositary shares (representing 1/1000 of a share) will receive $0.56 per depositary share. The dividend will be paid on July 15, 2024, to holders of record as of July 5, 2024. Cadiz, founded in 1983, owns 45,000 acres of land in California, a 2.5 million acre-feet water supply, and 220 miles of pipeline assets.

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Cadiz has signed a definitive agreement with Santa Margarita Water District (SMWD) for the delivery of 5,000 acre-feet per year (AFY) of water through its Northern Pipeline. This 50-year take or pay contract, approved unanimously by SMWD's board on June 5th, sets a price cap at $1,650 per acre-foot, covering all costs. This agreement follows a term sheet signed in February 2024. The contract will support infrastructure financing for the pipeline, expected to be operational by 2026. The agreement allows SMWD to diversify water sources, reducing reliance on the Colorado River and State Water Project resources. SMWD already holds rights to acquire up to 15,000 AFY from the Cadiz Project via the Colorado River Aqueduct. Currently, Cadiz has contracts covering 65% of the Northern Pipeline's capacity and is negotiating for the remaining capacity.

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Cadiz (NASDAQ:CDZI), a California water solutions company, will participate in the iAccess Alpha Buyside Best Ideas Summer Conference 2024, held virtually on June 25 and 26. CEO Susan Kennedy will present on June 25 at 10:30 am ET, discussing innovative water solutions and financing structures. The company will also host one-on-one virtual meetings on June 26. The live webcast and replay will be available on Cadiz's investor website. Founded in 1983, Cadiz focuses on providing clean, reliable, and affordable water through a combination of supply, storage, pipeline, and treatment solutions. With substantial land, water supply, and pipeline assets, Cadiz is positioned to address the impacts of climate change on water access.

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Cadiz announced a new LOI to supply 75,000 acre-feet of water to Hesperia, part of the 'One Water' initiative in San Bernardino County's Mojave River Basin. The initiative aims to coordinate water resources and infrastructure among regional agencies. Cadiz, through its non-profit affiliate Fenner Gap Mutual Water Company, will supply water at cost. The Northern Pipeline, running 220 miles through various High Desert communities, will facilitate this. The project aims to reduce reliance on imported water and enhance water sustainability. The One Water initiative was launched by the Victor Valley Wastewater Reclamation Authority in 2024.

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Cadiz, a California-based water solutions company, shared updates from the B. Riley Securities 24th Annual Institutional Investor Conference. CEO Susan Kennedy highlighted key milestones, including firm contracts for water supply worth over $1.2 billion, expected to generate $16 million annually from 2026. The company plans further water supply contracts and aims for $50 million annual cash flow when both Northern and Southern Pipelines are operational. Cadiz also discussed a groundwater storage project with a potential $1.5 billion revenue over 50 years. Estimated capital costs for full operations by 2028 are around $800 million. Funding strategies include partnering with public agencies and potentially forming a Master Partnership (MLP) to move capital costs off balance sheet and reduce debt.

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Cadiz, a California-based water solutions company, announced that its Chairman and CEO, Susan Kennedy, presented at the VerdeXchange 2024 conference on May 13, 2024. The event in Los Angeles featured Kennedy's talk titled 'Water Resiliency at Scale', which addressed climate change impacts on water resources in the Southwest U.S. and the company's innovative solutions in water supply, storage, conveyance, and treatment. VerdeXchange, in its 15th year, brings together industry leaders and policymakers to discuss developments in the green economy. The conference highlighted how regions can leverage $1.1 trillion in U.S. infrastructure funding for climate infrastructure investments. Kennedy's presentation is available on Cadiz's YouTube channel.

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On May 17, 2024, Cadiz announced the availability of its Corporate Overview Investor Call materials on its Investor Relations website. The event, held on May 16, 2024, marked the debut investor presentation by Chairman and CEO, Susan Kennedy, who took over in January 2024. The materials include a webcast replay, an investor presentation, and a full transcript of the call, including a Q&A session. Kennedy introduced Cadiz's diversified water solutions, encompassing water supply, storage, conveyance, and treatment assets. Cadiz, founded in 1983, operates with 45,000 acres of land, 2.5 million acre-feet of water supply, and 220 miles of pipeline assets in California, offering advanced water treatment technology.

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Cadiz's subsidiary ATEC Water Systems has been awarded a $5.2 million contract to supply water treatment filtration systems for the Cascade Groundwater Alliance treatment project in Gresham, Oregon. This marks ATEC's 12th successful bid in the last 12 months, reflecting rapid growth in orders due to tightening water quality standards. The contract is expected to increase ATEC's 2024 revenue forecast to $15 million from $12 million.

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Cadiz, Inc. (NASDAQ: CDZI) announced a Corporate Overview Investor Call to be held on May 16, 2024, hosted by Susan Kennedy, Chairman and CEO, featuring prepared remarks and a Q&A session. The company will also participate in the B. Riley Investor Conference on May 22 - 23, 2024. Cadiz, founded in 1983, provides water solutions in California, focusing on water supply, storage, pipeline, and treatment solutions.

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Cadiz, Inc. engages MZ Group to enhance investor relations program amidst strategic developments, led by Susan Kennedy. Recent Form 4 filing reveals CEO's purchase of CDZI shares, aligning with shareholders. MZ to bolster capital markets strategy as Cadiz focuses on valuable water assets, infrastructure, and technologies to address water access issues.

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FAQ

What is the current stock price of Cadiz (CDZI)?

The current stock price of Cadiz (CDZI) is $3.64 as of March 7, 2025.

What is the market cap of Cadiz (CDZI)?

The market cap of Cadiz (CDZI) is approximately 268.9M.

What is the core business of Cadiz Inc.?

Cadiz Inc. focuses on renewable water resource development, including groundwater banking, water treatment, pipeline infrastructure, and land conservation. Its projects are designed to provide reliable water supplies and support sustainable water management in California.

How does Cadiz Inc. conserve water?

Cadiz employs advanced techniques to capture groundwater that would typically be lost to evaporation. Its Cadiz Valley Water Conservation, Recovery and Storage Project emphasizes efficient aquifer management and water banking, ensuring water is conserved and available for various uses.

What role does ATEC Water Systems play in the company?

ATEC Water Systems, a wholly owned subsidiary of Cadiz Inc., specializes in water treatment and filtration solutions. It designs scalable systems to remove contaminants such as iron, manganese, and arsenic, thereby ensuring clean and safe water for communities and industrial applications.

What is groundwater banking and why is it important?

Groundwater banking involves capturing and storing surplus water in underground aquifers, reducing losses from evaporation and ensuring a sustainable water supply. This process is vital for arid regions like Southern California, where water scarcity is a significant challenge.

How does Cadiz contribute to environmental sustainability?

Cadiz contributes to sustainability by conserving large tracts of land, managing water resources responsibly, and supporting organic agriculture. Its initiatives in land conservation and efficient water management help reduce environmental impact while ensuring long-term water availability.

What are some key infrastructure projects undertaken by Cadiz?

Key projects include the development of the Cadiz Valley Water Project, extensive pipeline networks for water delivery, and the repurposing of existing infrastructure such as steel pipe assets for water transportation. These projects play a critical role in establishing reliable water supply chains across California.

How does Cadiz partner with local communities and agencies?

Cadiz enters into strategic agreements with various water districts and local agencies to supply conserved water. These partnerships help enhance local water infrastructure, reduce dependency on imported water, and align with regional conservation and regulatory goals.

What differentiates Cadiz Inc. from other companies in the water sector?

Cadiz stands out due to its integrated business model that combines land acquisition, groundwater banking, pipeline development, and advanced water treatment technology. This comprehensive approach, along with its focus on renewable resources and environmental conservation, positions it uniquely within the competitive water solutions industry.
Cadiz

Nasdaq:CDZI

CDZI Rankings

CDZI Stock Data

268.87M
48.26M
36.8%
44.03%
7.59%
Utilities - Regulated Water
Water Supply
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United States
LOS ANGELES