Core Points - Cadiz, Inc. and the Lytton Rancheria of California have signed a Letter of Intent for Lytton to invest up to $50 million in the Mojave Groundwater Bank, marking the largest investment in water infrastructure off tribal lands by Native American Tribes in U.S. history [1] - The Mojave Groundwater Bank will provide 2.5 million acre-feet of new water supply and currently holds an estimated 30 million acre-feet of water in storage, making it the largest new groundwater bank in the Southwest [1][3] - The partnership signifies a landmark collaboration in water resource management, with Indigenous communities holding a majority ownership stake in the Mojave Groundwater Bank [2] Company Overview - Cadiz is a California water solutions company focused on providing access to clean, reliable, and affordable water through a combination of water supply, storage, pipeline, and treatment solutions [6] - The company owns 45,000 acres of land in California and has 220 miles of pipeline assets, along with the most cost-effective water treatment filtration technology in the industry [6] Project Details - The Mojave Groundwater Bank will include over 300 miles of pipelines to provide new clean water supply and storage resources to underserved and tribal communities in the Mojave River Basin and Colorado River Basin [4] - Construction of the project is anticipated to begin in 2025, with initial water delivery targeted for as early as 2026 [4]

Financial Performance - Cadiz reported a quarterly loss of $0.12 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.11, and the same loss as the previous year [1] - The company posted revenues of $3.22 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 38.24%, compared to revenues of $0.37 million a year ago [2] - Over the last four quarters, Cadiz has not surpassed consensus EPS or revenue estimates [2] Stock Performance - Cadiz shares have increased approximately 21.1% since the beginning of the year, while the S&P 500 has gained 25.5% [3] - The current Zacks Rank for Cadiz is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $7.6 million, and for the current fiscal year, it is -$0.46 on revenues of $14.45 million [7] - The trend of estimate revisions for Cadiz is mixed, which could change following the recent earnings report [6] Industry Context - The Agriculture - Operations industry, to which Cadiz belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Water Rights and Supply Agreements - Cadiz Inc. owns vested water rights to withdraw 2.5 million acre-feet of groundwater, expected to produce an average of 50,000 acre-feet of water per year for beneficial use in Southern California communities [119]. - In the first three quarters of 2024, Cadiz Inc. entered into agreements with multiple public water systems to purchase 21,275 acre-feet of annual water supply, representing approximately 85% of the Northern Pipeline's full capacity of 25,000 acre-feet per year [125]. - The Northern Pipeline has a water conveyance capacity of 25,000 acre-feet per year, while the Southern Pipeline's capacity ranges from 75,000 to 150,000 acre-feet per year depending on the diameter selected [122]. - The company has executed Letters of Intent reserving up to 100,000 acre-feet of surplus water for local disadvantaged communities as part of the Mojave-San Bernardino County One Water Project [127]. Financial Performance - Revenue for the three months ended September 30, 2024, totaled $3.2 million, a significant increase from $0.4 million in the same period in 2023, primarily driven by ATEC sales of $2.8 million [142]. - Revenue totaled $4.9 million for the nine months ended September 30, 2024, compared to $1.3 million for the same period in 2023, primarily driven by ATEC sales of $3.5 million [147]. - The total costs and expenses for the three months ended September 30, 2024, were $7.99 million, leading to an operating loss of $4.77 million [139]. - The company incurred a net loss of $6.8 million for the three months ended September 30, 2024, compared to a net loss of $6.9 million in the same period in 2023 [140]. - The company incurred a net loss of $22.5 million for the nine months ended September 30, 2024, an improvement from a net loss of $24.7 million in the same period of 2023 [146]. Costs and Expenses - Cost of sales for the nine months ended September 30, 2024, was $4.3 million, with a gross margin of 31.4% for ATEC, compared to $1.5 million in the same period of 2023 [149]. - General and administrative expenses, excluding stock-based compensation, decreased to $12.7 million for the nine months ended September 30, 2024, from $13.2 million in 2023 [150]. - Net interest expense increased to $5.9 million for the nine months ended September 30, 2024, compared to $3.6 million in the same period of 2023, primarily due to increased borrowing [152]. - Compensation costs for stock and option awards rose to $3.6 million for the nine months ended September 30, 2024, compared to $1.1 million in 2023 [151]. Cash Flow and Financing - Cash used in operating activities was $15.3 million for the nine months ended September 30, 2024, slightly down from $15.4 million in 2023 [169]. - Cash provided by financing activities totaled $14.7 million for the nine months ended September 30, 2024, compared to $18.9 million in the same period of 2023 [171]. - The company completed a registered direct offering in November 2024, raising approximately $21.9 million to advance its water supply and groundwater banking project [158][159]. - The net proceeds from the November 2024 Direct Offering are approximately $21.9 million, providing sufficient funds for short-term working capital needs [172]. Future Capital Needs - Future working capital needs will depend on measures pursued in the entitlement and development of water supply and storage resources [173]. - The company may need to raise additional capital for working capital and capital expenditures in the long term [173]. - Future capital expenditures will depend on the progress of the Water Project and ATEC operational needs [173]. - The company is evaluating cash requirements and potential means of raising cash, including equity or debt placements [175]. - Equity placements will be minimized to reduce the dilutive effect on existing stockholders [175]. - Limitations on liquidity and capital raising ability may adversely affect the company [175]. - Sufficient liquidity is critical for resource development activities [175]. Strategic Investments - A letter of intent was signed with a non-profit investment fund for a prospective investment of up to $150 million as a limited partner in Newco, aimed at financing sustainable infrastructure projects [131]. - Cadiz Inc. completed the acquisition of ATEC Water Systems, enhancing its portfolio with innovative water filtration solutions [123]. - Cadiz Inc. estimates that it would cost approximately $800 million to fully operationalize the Mojave Groundwater Banking Project [129].

Core Points - Cadiz, Inc. has entered into an agreement to purchase 180 miles of steel pipe from the terminated Keystone XL Pipeline Project for constructing a pipeline network to connect its groundwater bank in the Mojave Desert to major water networks in the Southwestern U.S. [1][3] - The new steel pipe will expand the company's existing pipeline assets, which include 220 miles acquired from El Paso Natural Gas in 2021, creating the largest new groundwater bank in the Southwest [1][3] - Construction of the pipeline network is planned to begin in 2025 [1] Company Mission and Vision - The company emphasizes its mission of repurposing fossil fuel infrastructure to deliver clean water to underserved communities, which aligns with its goal of environmental justice [2][4] - Cadiz CEO Susan Kennedy highlighted that securing the steel will enable faster and more efficient infrastructure development [2] Financial Aspects - In October, the company announced a letter of intent with a non-profit investment fund for a prospective investment of up to $150 million for the construction, ownership, and operation of the Mojave Groundwater Bank [5] - The total estimated cost for the construction of the Mojave Groundwater Bank is $800 million, with the fund and other investors expected to provide up to $401 million in equity capital [5]

Company Overview - Cadiz (CDZI) is expected to report a year-over-year increase in earnings driven by higher revenues for the quarter ended September 2024, with a consensus outlook indicating a quarterly loss of $0.11 per share, reflecting an 8.3% improvement from the previous year [1][3] - Revenues are projected to reach $5.22 million, representing a significant increase of 1310.8% compared to the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst assessments [4] - The Most Accurate Estimate for Cadiz aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10] Zacks Rank and Predictive Indicators - Cadiz currently holds a Zacks Rank of 4 (Sell), complicating the prediction of an earnings beat [11] - Historical performance shows that Cadiz has not surpassed consensus EPS estimates in the last four quarters, with the most recent quarter showing a surprise of -50% [12][13] Industry Context - In comparison, Corteva, Inc. (CTVA), another player in the Zacks Agriculture - Operations industry, is expected to report a loss of $0.31 per share for the same quarter, indicating a year-over-year decline of 34.8% [17] - Corteva's revenues are anticipated to be $2.69 billion, reflecting a 3.7% increase from the previous year [17] - The consensus EPS estimate for Corteva has been revised 4.8% higher in the last 30 days, but a lower Most Accurate Estimate results in an Earnings ESP of -30.75%, making it difficult to predict an earnings beat [18]

LOS ANGELES, Nov. 4, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI/CDZIP), a California water solutions company, today announced that it has entered into a placement agent agreement for the purchase and sale of an aggregate of 7,000,000 shares of its common stock in a registered direct offering (the "Offering") at a price of $3.34 per share. The aggregate gross proceeds to the Company from the Offering are expected to be approximately $23.38 million, before deducting the placement agent's fees and other of ...

Hydrogen facility at Cadiz Ranch site to use 100% solar power to produce 50 tons of green hydrogen per day to fuel zero-emission trucks, cars and electricityLOS ANGELES, Oct. 23, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP), a California water solutions company, and RIC Energy, a global renewable energy company, announced today they have entered into an agreement to build California's largest green hydrogen facility at Cadiz Ranch in the Mojave Desert. Under the agreement, Cadiz will supply land ...

Arsenic, iron and manganese filter systems to be delivered in 2025.LOS ANGELES, Oct. 22, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP) ("Cadiz" or the "Company"), a California water solutions company, today announced that its operating subsidiary ATEC Water Systems, LLC ("ATEC") was awarded three new sales contracts totaling $1.6 million for arsenic, iron and manganese filtration systems. The systems will be delivered in 2025.  "Groundwater contamination is a growing global threat," said Susan Ken ...

Fortune 500 industry veteran Steve Green to drive business development aimed at growth LOS ANGELES, Sept. 27, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP) ("Cadiz" or the "Company"), a California water solutions company, today announced the Company's operating subsidiary ATEC Water Systems, LLC ("ATEC") expanded its leadership team, hiring Steve Green as its Chief Commercial Officer. Green brings decades of water industry experience including business development leadership for Fortune 500 water ...

LOS ANGELES, Sept. 24, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP) ("Cadiz," the "Company"), a California water solutions company, today announced that its Board of Directors has declared the following cash dividend on the Company's 8.875% Series A Cumulative Perpetual Preferred Stock (the "Series A Preferred Stock"). Holders of Series A Preferred Stock will receive a cash dividend equal to $550.00 per whole share. Holders of depositary shares, each representing a 1/1000 fractional interest in a ...