Vidler Water Resources, Inc. announced that it has entered into
an agreement to lease up to 1,926 acres of its land in Maricopa and
La Paz Counties in Arizona to an affiliate of one of the world’s
largest producers of wind and solar energy. The agreement is
structured as an option for up to five years to lease up to 1,926
acres for $500 per acre per year for 26 years with two five-year
options to extend the lease. The agreement also provides for a
lease rate increase of 2% per annum over the term of the lease. In
addition, Vidler also agreed to reserve 2,000 of its Arizona
Long-Term Storage Credits for construction purposes for a price of
$1,630 per LTSC, utilizing Vidler facilities to recover the
water.
Vidler Water Resource’s President and Chief Executive Officer,
Dorothy Timian-Palmer, commented:
“We are extremely pleased to enter into an agreement to lease
certain of our Arizona properties. We have worked previously with
this company on our other properties, and we have found them to be
an excellent partner with first-rate innovative and sustainable
energy solutions for the communities they serve. We are glad to
play our part in increasing the region’s alternative energy
supplies. The affiliate’s parent company is actively involved in
the Data Center and Green Hydrogen power space, and we look forward
to the opportunities our alliance may bring and allow us to utilize
our Harquahala Long-Term Storage Credits in the Basin where they
are stored or the Phoenix metropolitan area. The mega-drought that
is occurring in the Western U.S. is driving entities to seek water
supplies that would not have been considered in the past. As the
mega-drought continues, we believe it will have an upward impact on
pricing of water supplies.
“We are also currently in negotiations with Ten West Link, as
they require an easement across several of our Harquahala Valley,
Arizona properties. The Ten West Link Transmission Project is an
electrical Interconnection that would provide 500 KV Transmission
between substations in Tonopah, Arizona and Riverside County,
California. The power transmission activity in Harquahala is
attracting various solar and other alternative energy facilities to
propose projects in the Harquahala Basin and we have Long-Term
Storage Credits that can be used for both operation and
construction needs that can be recovered throughout the Basin.”
About Vidler Water Resources, Inc.
As of December 31, 2020, our primary holding was Vidler Water
Company, Inc. (“Vidler”), a water resource and water storage
business, with assets and operations primarily in the Southwestern
U.S.
Our business is to source, develop and provide sustainable
potable water resources to fast-growing communities throughout the
Southwest U.S. that lack, or are running short of, available water
resources.
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 monetizations in further development of existing assets, if
we believe the returns on such reinvestment outweigh the benefits
of a return of capital.
OTHER INFORMATION
At December 31, 2020, we had a market capitalization of $173.8
million, and 18,583,366 shares outstanding.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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, 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 sections 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
and the future prices that may be obtained for 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. The forward-looking statements
are based on current expectations and assumptions and are subject
to risks and uncertainties.
A number of other factors may cause actual results to differ
materially from our expectations, such as: any slowdown 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 U.S. and global economies; the performance of the
businesses in which Vidler operates; the continued service and
availability of key management personnel; and potential capital
requirements and financing alternatives.
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 SEC filings,
including our Annual Report on Form 10-K and our Quarterly Reports
on Form 10-Q, copies of which may be obtained by contacting us at
(775) 885-5000 or at http://vidlerwater.com.
We undertake no obligation to (and we expressly disclaim any
obligation to) update our forward-looking statements, whether as a
result of new information, subsequent events, or otherwise, in
order to reflect any event or circumstance which may arise after
the date of this press release, except as may otherwise be required
by law. Readers are urged not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20210506006206/en/
Dorothy Timian-Palmer President and Chief Executive Officer
(775) 885-5000
Vidler Water Resources (NASDAQ:VWTR)
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