Vidler Water Resources, Inc. Announces Exercise of Option to Purchase 53,750 Long Term Storage Credits in Arizona by Alternative Energy Developer
Vidler Water Resources announced that an alternative energy company has exercised its option to purchase 53,750 Long Term Storage Credits (LTSC) at its recharge facility in Harquahala Valley, Arizona, for $400 each. This sale is expected to generate approximately $21.5 million in revenue, closing in 2021. This agreement follows a previous sale of 1,250 LTSC to the same purchaser, bringing total revenue from LTSC sales to $22 million. Vidler is also in discussions for additional LTSC sales with developers and municipalities.
- Sale of 53,750 LTSC expected to generate $21.5 million.
- Total revenue from LTSC sales reaches $22 million.
- Strategic partnership with a respected alternative energy producer.
- Continued dependency on the alternative energy market for revenue.
Vidler’s President and Chief Executive Officer,
“We are extremely pleased to enter into a sale and purchase agreement with this highly respected alternative energy producer for a significant quantity of our LTSC in the Harquahala basin in
“We are in active discussions with a number of commercial and residential developers and municipalities regarding the sale of our remaining LTSC, not only from our recharge facility in Harquahala but also from our current inventory of approximately 27,000 LTSC in the Phoenix Active Management Area.”
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Our business is to source, develop and provide sustainable potable water resources to fast-growing communities throughout the
We conduct our business by working closely with many constituents in these communities: regulators, utilities, Native North American tribes, community leaders, residential and commercial developers and alternative energy companies. We ensure the water resources we develop and sell are sustainable and provide benefit to the citizens of the communities and regions we serve.
Currently, we believe the highest potential return to shareholders is from a return of capital. As we monetize our water and real estate assets, rather than reinvest the proceeds, we intend to return capital to shareholders through a stock repurchase program or by other means such as special dividends. Nonetheless, we may, from time to time, reinvest a portion of proceeds from asset monetization in further development of existing assets, if we believe the returns on such reinvestment outweigh the benefits of a return of capital.
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This press release contains statements that may constitute forward-looking statements, which are based on information currently available, usually identified by words such as "anticipates," "believes," "estimates," "plans,'' "projects," "expects," "hopes," "intends," "strategy," ''focus," "outlook," "will," "could," "should," "may," "continue," or similar expressions, and which speak only as of the date the statement was made. Such statements are forward-looking statements and are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those provisions and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including without limitation, statements regarding our business objectives, our ability to monetize our water resources, the future demand for our water resources, our ability to reduce net operating cash use, our ability to source additional revenue streams, our ability to preserve and utilize NOLs to offset taxable income and reduce our federal income liability, and our ability to monetize assets and return capital to shareholders through stock repurchases or through other means. Our forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties.
A number of factors may cause actual results to differ materially from our expectations, including: any slow down or downturn in the housing or in the real estate markets in which Vidler operates; fluctuations in the prices of water and water rights; physical, governmental and legal restrictions on water and water rights; a downturn in some sectors of the stock market; general economic conditions; the impacts of the COVID-19 global pandemic on the demand for real estate; the pace of real estate development, and demand for water resources to support residential and commercial real estate development; prolonged weakness in the overall
For further information regarding risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our
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President and Chief Executive Officer
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