Pure Cycle Corporation Lytham Partners Fall 2026 Investor Conference

All right. Hello, everyone. Thank you for continuing to join us throughout the day here at the Lytham Partners Fall 2026 Investor Conference. Again, my name is Robert Blum, managing partner here at Lytham. Up next, Mark Harding, Chief Executive Officer of Pure Cycle Corporation, will take us through the company's slide presentation. As a reminder, Pure Cycle trades under the ticker symbol PCYO on the Nasdaq. Mark, thanks so much for participation today. The floor is all yours.

Thank you very much, Robert. Welcome, everyone. I would like to give you an overview of Pure Cycle Corporation and really introduce you to the company for those of you who are new to the story, and maybe update those of you who are familiar with the company. I will kick us off by obviously talking about forward-looking statements. Statements that are not historical facts are incorporated in this presentation are forward-looking statements. I think most of you are familiar with the forward-looking statements. I really want to lead off with just an outstanding management team that I get to work with. These are dedicated professionals that really differentiate themselves in their industry expertise, and it is my pleasure to work with them in really guiding the development of our assets and kind of managing the 40-ish employees that currently work to monetize our assets.

Together with one of the best boards of directors. I am sure a lot of you hear CEOs talk about their boards of directors, but I have got just an outstanding board that really punches above our weight in terms of industry expertise, whether that is from housing and land development, SEC, corporate governance, commercial expertise, audit expertise with KPMG partners, water rights expertise, municipal bond expertise, operational expertise amongst the team. They are great oversights, and they really give me a tremendous amount of guidance in what we are doing in operating the company. Just an investment snapshot. We are a company that really has a terrific asset base, and we have had 28 straight quarters of profitability as we have been developing these assets. We continue to grow and build our revenue base. We are in two primary segments. A land development segment, where we are a developer of master plan communities here in the Denver area.

Also a water utility, where we are able to provide water and wastewater services to largely the companies or the properties that we own, as well as our franchise service area that we have here. We are one of the companies that really generates substantial revenue. We fund our development from in-house capital, so we are not really in a position of diluting shareholder counts and are in a position to be able to buy back shares and continue to return shareholder capital that way. Let me talk first about the water utility segment. That is kind of the DNA level of the company. We have water both for domestic needs, which is basically your potable water and wastewater that we deliver to residential homes. We sell a lot of industrial water to oil and gas customers, and that is really for fracking purposes.

We have a large Niobrara oil and gas play right on top of where our water sources originate. We have continued customer growth, which really is a welded customer. That is a very sticky customer for us that continues to build in terms of driving that monthly revenue and recurring revenue segments for the utility business. This is just a snapshot on the customer growth. We have over a 22% CAGR growth in our customers. This is kind of a year-to-date summary. This is a Q3 summary of how our utility revenues compare year-over-year, and what you see is just strong growth in there. This really illustrates three types of revenues for us, the monthly recurring water and wastewater revenue, the oil and gas segment revenue, and also revenue from connection charges.

Talk a little bit about sort of that oil and gas segment. We do sell probably about five times as much water to our oil and gas customers as we do to our domestic customers, which really generates very high-margin revenue for us. It is a raw water basis, so we do not have sort of that finishing water quality treatment cost is attributable to that, and really variable demand. It kind of depends on the number of wells they have permitted. The field that we are developing is really de-risked, so we just have a field development schedule here.