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TWST: We'd like to begin with a brief historical sketch of Pure Cycle and a
picture of the things you're doing at the present time.
Mr. Harding: Pure Cycle is a water and wastewater service provider with its
principal operations in the Denver, Colorado, market. We are a vertically
integrated provider, whereby we own the physical water supply as well as the
infrastructure that produces, treats, and distributes water to customers as well
as the infrastructure to collect and treat wastewater which we either discharge
into a stream or reuse in our irrigation systems. Due to the importance of water
in the region, Pure Cycle is environmentally sensitive to water use in our arid
state and seeks to maximize the use and reuse of our water supplies. In addition
to owning and developing water and wastewater systems to serve our customers,
the company also operates its systems, as well as systems owned by others,
providing high quality water and wastewater services to the region.
Our business is divided into two categories. One is the design, development,
construction, and operation and maintenance of our water and wastewater system,
and systems that are owned by others. The second is growth, where we are adding
new connections to our existing systems, and adding new water supplies to
increase our service capabilities to the region. TWST: What are the main things you expect to accomplish over the next three
years?
Mr. Harding: The company has focused its efforts on acquiring a large and
valuable portfolio of water. We have assets in numerous locations throughout the
state, including our Denver-based assets, both surface water and groundwater
supplies, our Colorado River water supplies on Colorado's West Slope, and
recently we have entered into a contract to purchase a very large block of water
together with some real property in the Arkansas River Valley. We have a large
and diverse portfolio of water that the company is developing to provide service
to developers and home builders in the Denver and Colorado Springs markets.
The company's water supplies represent the largest unallocated inventory of
water in the region. With the addition of the Arkansas River water asset, the
company has adequate water to provide water and wastewater service to 180,000
single-family equivalents.
Our focus will predominantly be to work with area developers, landowners, and
other water providers to assist in helping the region address one of its most
significant growth constraints, which is the availability of water. As area
developers seek to urbanize land in the metropolitan region, a growing number of
municipalities are requiring developers to provide assurances they have adequate
water supplies to accommodate the level of development for their proposed
projects.
One example of this is a master planned community that the company has entered
into an agreement to provide water service. An area developer sought to develop
a 1,000-acre parcel in an attractive location as a new master planned community.
The local land use agency required the developer to have a binding contract for
water service prior to consideration of any zoning approvals. Pure Cycle and the
developer entered into an agreement for water service and the developer received
approvals for a new master planned community which will include up to 4,800
single family equivalent units. The developer has now partnered with a national
home builder and Pure Cycle is looking forward to developing water
infrastructure to service customers in this exciting new development.
Additionally, we are working with a number of other area landowners and
developers pursuing similar projects, all of which are in need of water service.
Tickers included in this excerpt: PCYO
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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