Cadiz and Fenner signed a water supply agreement with Solstra

Cadiz announced that the Company and Fenner Gap Mutual Water Company signed a water supply agreement with Solstra Communities California for delivery of 1,275 acre-feet per year of water from the Cadiz Water Supply and Storage Project to support development of more than 4,000 homes for military and working families along the Central California coast. Today’s announcement is the first time Cadiz has contracted with a housing developer for water supply. Water supply from Cadiz will be delivered through exchanges of water with regional water contractors utilizing the Company’s Northern Pipeline, a 220-mile natural gas pipeline originally built to transport oil from the California coast to Texas oil refineries. Under the terms of the Solstra Agreement, water supply will be made available to Solstra via the Coastal Branch of the State Water Project through an exchange with one or more contractors of the California State Water Project. Cadiz expects to receive net revenue of approximately $850 per AF in 2024 dollars for water purchased by Solstra over the contract term. The Company’s Northern Pipeline has a delivery capacity of 25,000 AFY. Following execution of the Solstra Agreement, approximately 65% of the delivery capacity of the Northern Pipeline, or 16,175 AFY, has been reserved under water supply agreements, with the remaining capacity in the final stages of contracting. The Company anticipates final development of the Northern Pipeline conversion project will occur in 2024, with construction beginning in 2025 and commencement of water delivery as early as 2026.