Vidler Water Resources (VWTR) 2 Mar 182017 Q4 Earnings call transcript

Company Profile

Participants

Max Webb	Chairman of the Board, President, Chief Executive Officer
John Perri	Chief Financial Officer, Secretary
Andrew Shapiro	Lawndale Capital Management
David Anderson	Anbec Partners
Greg Venit	Morgan Stanley
Michael Melby	Gate City Capital Management

Call transcript

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Operator

Good morning and welcome to PICO Holdings 2017 earnings conference call. All participants will be in listen-only mode. [Operator Instructions].

As a reminder, today's call is being recorded. I would now like to turn the conference over to John Perri, PICO's Chief Financial Officer. ahead. go Please

John Perri

welcome us and the of who you ended Thank discuss to the joined to XX, for company's have December you XXXX. all financial year results

is to here today we remarks Max at release Our and investor CEO. President and answer will with on some I Releases. am Press then will Webb, website provide earnings your I questions. investors.picoholdings.com available and under available Max our be our prepared brief

that comments would forward-looking I we you will to Before today's like include on remind statements. begin, call

Forward-looking such statements or phrases approximate of believe, will, can the be negative identified by and seek, as intend, similar use of words should, or words the words expect, planned or or estimate, phrases. anticipate, these may,

assumptions that, filings is based, with except turn over Investor will with our revise and other circumstances in made any SEC statements any website as refer call could to upon by date and Relations of from any PIVO any or statements. additional speak Forward-looking the Holdings such expressly law. undertaking statements, by actual or of which changes their cause These those nature, involve our on thereto to as today obligation reflect Holdings' relied are be and of expressed to uncertainties update to to risks And and I not forward-looking required disclaims the and differ or that conference estimates, or to events, only forecasts results outcomes for projections, this information. or Please expectations the as events. should materially PICO in subject statements regard any forward-looking future forward-looking Max. predictions change call conditions statement goals, and

Max Webb

morning everybody. you Thank John. Good

UCP, most in million fully proceeds results subsidiary, of business execution XX% significant We during our reflect which the XXXX, plan. stake ultimately UCP. We for Our owned of stated sale homebuilding the $XXX.X monetized Inc. our received several assets of XXXX of of the

our of water storage XXXX, Company, in proceeds XXX,XXX addition, long Vidler in million. Water $XX.X sold resource In total development, credits for term Arizona

As able special these shareholders of to we fourth a XXXX. of very were a share $X pay our to per be result quarter dividend monetizations, in of pleased the to

XXXX John this our detail years reduced costs will his prior from address remarks. and in in significantly also in more We

As strategic believe company intents assets ultimately assets XXXX, a with efforts purposes, result of in and and shareholders that are through provide should we unique Company Vidler's the to for these are water conducted of Vidler monetized. operations resource portfolio water are highly resource Southwest subsidiaries. value now, projects and Water We development as these its all a those and in our

water in most Nevada, are the Greater in area. Our Northern located Reno/Sparks significant around and assets

those the to and that XXXX growth continue several We continued projected We believe years. this job note the to over area population are in strong robust growth should that and during job of lead are pleased and areas supplies. sustainable course to water population in developers and next growth the new their the then of any as new commercial our in development these located areas where lead such our water future monetization should we believe assets water and development are residential resources secure

are our pace the region. thus long-term monetization we citizen of in is believe and growth and a sustainable highly our development only of of the continued corporate residential to control However, users the assets. our out timing and develop responsible on such water the solutions largely of assets dependent water of We the commercial we and

political even less the the area. means supplies bringing permit managed into of in becomes But growth. proponents Greater responsible homes new and threatens benefits the believe that has occurred. approvals pace residential are Any much supplies business to in to better market to from Reno/Sparks That of and job strong right to the are region affordable This quality and that region the recognize to working potentially ensure in new leads exist to the growth the said, a we Reno/Sparks we citizens. undermine in the issue appear life with of for provide conditions the leaders and We of needed also all be that economic concerned region. of housing accruing housing delays the this Greater

of explore further sale we business and are intended strategic shareholder X engaged had value. PICO's enhance or potential alternatives Cooley company exclusive such The the counsel evaluate adviser announced alternatives as October PICO's we to financial combinations, on legal LLP as to JMP the I as company. or Securities engagements Finally, of to or neither over on merger time this note nor or this this progress at but of that that, call John the status to license is John. will a the I disposition With I comment a strategic engagement. the sale, assets process will further will ongoing, hand of

John Perri

shareholders' of is foreseeable primarily of million million our equity $XX.X assets. Thank cover comprised capital which the working than XX, to for December reported we and requirements million approximately we $XXX water cash, you $XXX.X our of adequate Max. estimated At future believe more XXXX, in

we We your XXXX estimated approximately record a allowance XX, be valuation approximately that, our that assets. on in burn overhead deferred declined employee expenses of to and quarter-over-quarter net and million a million million. full decrease and were XXXX our year-over-year. We due $X.X for our With reductions the directors net expenses rate and million up headcount, other professional open operating cash Such losses in continue December our we to will compensation tax to fees. stock-based reductions $X.X in $XXX believe will questions. XXXX, at call executive During compensation, $XX.X resulted overhead

Operator

Instructions]. [Operator

Capital Our go from Management. Please first Andrew ahead. of comes question Shapiro Lawndale

Andrew Shapiro

full of expect in year you the your million provided am income for terms bit in and summary $X.X XXXX From loss you there of if from of and burn insight, discern a continuing Thank revenues little press the release, Hi. of $X.X the ops a the statement you. that I can correct, rate. between expense limited we the million was burn about cash pretax

away, end impute So to I only By a are from QX. month quarterly think would can lower be be, what annual rate offline is in leases, is Or you burn may we rate? see the other of expected a QX, $X.X whatever do here it to QX, rate which that throughout costs, we the million going down progressively have coming our at from year?

John Perri

for the thanks, Andrew, Well, question.

I think fairly we evenly the expect throughout spread that year.

each quarter think quarter would of million be So the I throughout will incurred $X.X year. that one

are Of expenses anticipated that that haven't off. throw that we course, could there one-time

Andrew Shapiro

Sure.

John Perri

fairly But as it be to that we stands, even. expect

Andrew Shapiro

down QX? for we are already So you think there

John Perri

Yes.

so down are practical there. For we all far have purposes, what seen is I

Andrew Shapiro

Awesome.

Okay.

to quarters, feel being likely to out assets to closest in which called prior the Are Arizona Arizona you you be correct. monetization, Now as in might to that more are close that assets closest And out, there the might Or likely turned obviously be assets focused be a new for of it there monetization? now? set on is area you is monetization? now or

Max Webb

Andy. It's morning Good Max.

I the think may our Colorado solution that shortages date on the Arizona year more a be long-term to on of dry to some Southwest facing another the from forecast good going make Colorado because storage put pressure Arizona and River. that the very to issues that River. in it's credits of It's likely

be credits those monetized that So different long-term markets are I simultaneous. of other other. likely. are dynamics if monetizations we each storage and independent assets estimate, with before different will, thought think They get our could any of so still But is you in assets well they

Andrew Shapiro

Right.

view So ways, company's to others. had in be of if storage than of some have receivables, et liquid kind move liquid, inventory, you the some wanted more assets and you Do out? more companies or in are cetera to credits to Arizona them or those current pretty

Max Webb

Yes.

Andrew Shapiro

I mean, of pun, pardon course. the

Max Webb

We it have gotten the years. over used to

Andrew Shapiro

Yes.

to NOLs the you to Okay. SEC. a XX-K us XXXX And filed referred then the in for you your release with and tax referred

I your As that on were. I been minutes the miss it XX filings ago, referred past press hasn't it just of couldn't least filed, release at even it the or where XX-K tense? in past EDGAR though to Did find

John Perri

file yet. not has It very soon. We been hope to that Yes. filed

Andrew Shapiro

Okay.

in their acquiring won't ripens? a North saw more the rights, of and Reno's major next Just in water our specific you steps before need passed Fish the Valley some developmental What a on few it if We that questions are mind. Springs StoneGate interest for water hurdle.

Max Webb

to is how map. It tentative go and the at to when then the infrastructure likely they to back sustainable planning depends developer reading regional get final I map have they from to, and water the much before to to going have want believe to for commission, developer, will their second map Council place would they varies go but it they final the supplies at are project. Well, have in to that Reno City demonstrate they on put to

Andrew Shapiro

Right.

conference are things into earlier around similar price the And other that here to the And are that steps developments the and a the cost issue from the first likely next developments them and in developments calls Okay. is a Meeting talked one jump, similar on of it and maybe on we lot Annual at looking about area the get sitting all the people first there to have the there's hurdles have other of establishes pool likely get What the what and for the want to become rises. Springs? most may edge the here? take are the may overcome level before to have materially water Fish others customers that to in for those and

Max Webb

is and accordingly. process a approval units that the that group do some a have at particular completely individual may a for amount developers because, either therefore forward are They project. as of supplies developments StoneGate I supply-demand it's again, comment of of smaller same that some dynamics with how and housing are are looking slow dynamics developers needed. small zoning they to or through, there the their through quickly our that control. don't that have going they amount that in area of have moving own or infill and move I that clearly water small comment on will like Well, out already going a

Andrew Shapiro

What rights? updates Vegas Northern of Okay. development status as the other water water Las as enhancement well your value and rights on Nevada your are area

Max Webb

our Northern are to referring Nevada -- with Well, the other in you ? rights water rights,

Andrew Shapiro

City. Carson

Max Webb

in County. interest which Lyon in from that in lot developer corridor right, about a allows move Lyon driver create the are Industrial County The that Center a and driven Southern in result which very for to Yes, a water the talked of as residents sustainable in in can County-Dayton final there's more That's as are reason assets to lot our monetization water the area, that they we USA supplies, assets to developers growth much which a lot now obviously, we as the a comes of challenges, when value. easily same Reno, that big from Lyon extension, Tahoe-Reno up is area. commute completion secure very of Parkway, largely will of and area. Nevada appropriated water map, need to of with sense to should tentative much material. new long-term but of less They supply ultimately that lead

As always very projects is and fruition sustainable Management in to Land supply. Act development required uncertain, would those part water the Lincoln water County come rights which of be or to potential those be timing the power again when assets,

Andrew Shapiro

state? our status for And in or here but water items changes New of the New the there be enhancement has respect databases other in other the do with in been Colorado and and see I rights credits now Mexico, on to value any discuss any in development particular your legal for water that which may to rights, bucket, Mexico,

Max Webb

No. has. The very sell as terms we those, overall only of New lease assets small are they you are or value very Colorado, Vidler Mexico we Colorado, the and other mentioned. small in where assets that have in sales and

we our the just That hasn't of changed. in that appropriating north project. biggest Albuquerque are a the for is going that of are rights the Mexico, water New through asset developing process of particular we status process

are in get engineer of the through process still going appropriated. the those We water rights to state

Andrew Shapiro

am and what key Okay. sure it's and you the guess, us Lake's feel the elevation remind surface related questions what Lake guys Basin which And for it are, And monitor at? status is call is, I a regularly? elevation latest levels so are Drought they what last Proposals I we how close Mead get to, Contingency threshold the Lower the

Max Webb

that have my fingertips. don't I at

about it's if feet, recollect off think top of head. I I X,XXX my the

runoff in snowpack off obviously to than for the on current in we goes snow a is continued water is monitor Colorado The the the measurements the even in the that basin of which the lower dry think in We leads year based history. and what most forecasts Mead. the River tracking equivalent upper calling XXXX, weather the of generated, Lake possibility that where lowest Powell distinct understand, River. there's recorded was water I run Lake Colorado mid-February were that into then is

there on pressure So those reservoirs. appears runoff be to into

Operator

go comes question a from ahead. next Our investor. Please [indiscernible], private

Unidentified Analyst

gentlemen. morning Good

Max Webb

Good morning.

Unidentified Analyst

year. much. Thank XXXX very you was Thank an excellent you.

Max Webb

are welcome. You

Unidentified Analyst

of couple A questions.

balance that burn you a mentioned million. $X.X that be the of there's So $XX.X and will cash rate forward million going

So your cash roughly, about six plans talk that's years' for Can forward, balance please? worth. you going the

Max Webb

Well, the method would alternatives as dependent of strategic are I stock process. we our the forward, think repurchases think company again, largely shareholders. standalone continuing results capital to that us for, allow returning opportunistic other or I would a that's that of on moving If of

Unidentified Analyst

Okay.

years' to it on is plan to fair say of hold six continuing So expenses? you don't worth administrative

Max Webb

we correct. That's not. No, would

Unidentified Analyst

you come rate decreases $X.X audit forward, assuming the do even and the fees do in is no going Or million with changes portfolio? rate the to then burn expect that, things think further? And you administrative the down to Okay.

Max Webb

know you spoken a auditors. on John possible. got I Well, don't level have as very manageable that to if our know works to they if as don't get to the I know have fee. feeling I hard

a the areas And as to are that controls, responsible is But always can having report ensure on maintaining we public maintaining take that frankly, are to the to accurately, probably know company internal complex We costs cost seriously. that audit cost the looking we unusually water with it's like very we right on assets a our responsibility be assets whether you lookout fees, public for that always further. goes staff et very timely, of especially cut unique companies. for are, that, cuts for there fixed cetera, yes, able

John Perri

add I major looking rate. any that, that but negative, I just or costs, are the changes, would expect million, $X.X point, good burn cut the And to a think I always and see what of to estimate with I million to those kind Max's thereafter. is don't we positive good $X.X of number do that is year a costs of then that think up. number will unexpected caveat and again, drive things, occur absence in we could But the for happens number, the

Unidentified Analyst

water need going then your requirements in do And CapEx be estimate gentlemen, you, made? the portfolio any maintenance assets that any what of forward, Okay. to or are enhancements

Max Webb

$XX,XXX. Well, server requirements don't is outside a we whatever, fraction any computer which have for $XX,XXX, or CapEx maintenance,

expect refers that of are They especially Northern the for of That's That and part, the the to expensed. includes I fully to maintenance In all John that number those appropriation costs. terms do that costs Mexico they incur. all water ongoing require rights. assets, add million, there project are, costs $X.X million water that get of for Arizona most $X.X that developed, we our would Nevada assets. New

those don't though, So Hopefully appropriated, I would view incur water those we get one-off. we then as those rights have to costs being anymore.

of room always as Arizona. property part storage Arizona those have instance. there's We own real those. estate our less in So that to would We sold taxes reduce pay credits, the from to we for credits

come would costs down. So

maintain So included are costs to million ensure $X.X assets ongoing to want emphasize, in available-for-sale stead in required those that they are again, that and good just maintenance the number.

John Perri

cetera, small to add leases the be the sales to I million only project everyone's by is just about. $X.X what rights think would year $XXX,XXX. various aware, type et point, not water it and but that, that includes That's for Colorado, to talked also the going those of we generated includes in just revenue about so costs, Max's of Max

the when looking the revenue costs, that's about XX-K and be Those $X.X plus about will So million how file. the million. project for we when get total offset by $X.X you gross we details in to $XXX,XXX the are at in of pieces, overhead year

Unidentified Analyst

is operating $X.X number an like loss almost So million then?

John Perri

of Yes. absence other the revenue? In any

Max Webb

That asset doesn't sales. include

John Perri

in doesn't more asset That revenue contracted is already or the sales It's include sales. predicable pipeline. either we believe a that are

Unidentified Analyst

Okay. value Gentlemen, oil any there left gas portfolio? is and in

Max Webb

No.

wound those have We down.

Unidentified Analyst

little after could And bit Tax wondering, affect is Cuts if a that how Okay. on I talk the Cuts PICO. there we the Tax am have Job, obligatory then assets. that, deferred a tax more question wondering am question I be will for Act Jobs this and and about might I about and the the JP.

legislation recent does on So any forward? effect the tax have PICO going

John Perri

is Any We on the the in at fair usable limited We in NOLs rate that rate use. that assets. forward of lower think to year NOLs, tax what be certainly will our XX/XX/XX certainly ones those. have I be forward. measure value reducing fair looking us the we be the beneficial have going going could tax value. going income. their fully the And any likely. books helps we in Well, excess our be be for any effect more we value over have at But and importantly, most would will taxable But not carrying

our lower I tax end impacts because taxes. up to with of think don't taxes, So other tremendous we act reform there's the that, obviously, business than, paying any if

Unidentified Analyst

so the XX% reduced tax that the of to Okay. the on due assume covered the I the that fourth valuation corporate was lack a quarter, was were adjusted rata? up just it pro by changes, for to the P&L assets deferred rate charge But tax allowance XX%

John Perri

by which million the about That's completely yes. reduction allowance. the There's offset right, to the exactly in net $XX DTA, valuation haircut was

Unidentified Analyst

Okay.

allowance, So doesn't seen footnotes? show But million. a it of up show $XX the absent have P&L, then it would charge of the the because a up we valuation in valuation will in allowance,

John Perri

That's correct.

Unidentified Analyst

event Can of the And is of what in that? assets. an elaborate I of exactly So utilizable sales? on so them not sale. asset footnotes, am quantity Understood. in would the in event tax of the be mean, you all wondering then are deferred the there obviously, different classes Okay. utilizable many I asset is that

John Perri

Yes.

on that assets change on biggest a are books the that are my quite are in come sold, sale those deferred taxable for the Those taken NOLs past. we will stick come three of also So DTAs on are losses calculations. income. would down, DTAs out income have There these year-end. to at tax up we if mind. the the are asset classifications, the generates there and impairment down few have there two the as there's those an And Clearly, two assets but or that taxable your point, there some

Unidentified Analyst

Yes.

dollars be do will over so then, okay, you that that have of a Is gross amount And number say, you that can costs give would calculable? historical of kind X tax-free.

John Perri

can to get fingertips. at value don't number a fair calculate trying income to my it's the the Are I all it. me, have Or all you less taxable --? that less I NOLs equals where a excuse NOLs?

Unidentified Analyst

Yes. -- wondering I am

John Perri

so to speak? [indiscernible]

Unidentified Analyst

to free Well, get I how that I and to outflow tax we we premium authority. going to am see going much how over an exactly to wondering getting about historical are at. much be costs of That's the a as is am what taxing then

Max Webb

what on depends ultimately those that assets monetized are mean, I for.

that taxable that I a that dirty think is at $XXX sheltered quick can million is -- at looking income and way it of there's and that of be

John Perri

level, federal the anyway. At

Max Webb

of Nevada suffer At state I the income can't way speak baby. taxes. it. to any the assets I most easy federal to And not But that's And should at level. That's our look Arizona. think John's

Unidentified Analyst

$XXX basis, that a fair could shareholders. Is sold the would the mean, so So free to simplifying we assets simplification, tax that, to this say? transaction for be I if that gross is assume million tax roughly above were

John Perri

that. to project hate I

probably along we have California talking be Nevada we are to tax, a are does, in federal at and you Arizona were tax I doesn't the We think, I where to I lines. going but state it's it, does, But assets free. held could would income say to need think about as right point, look Max's thinking those vacuum, obviously. think

Unidentified Analyst

forward. disclosure my last relates Okay. question the compensation Understood. then you. And to Thank going

bonus some So outline is of kind the SEC the filings complicated. that the stuff of calculation,

Some of it is open to interpretation.

forward? what but am So much into going a larger wondering XXXX, it's may obviously, as as I for huge we far to PICO disclose forward. I plans get calculation those mean, number numbers going not is

vague? PICO Or going Does forward, on how to So proxy a the were what bonuses to proxy? going is going look calculations calculated? is to like plan Or is out it step-by-step it please? it statement as laying just more be in

Max Webb

Those are good questions.

periods. we think, as relatively it's I give XXXX. you great for in to disclose said, And and I as small significant future that how would thought we will think not

Operator

Our David comes ahead. next question Partners. Please of Anbec from Anderson go

David Anderson

StoneGate could curious, Hi. Fish have am represented I Good public StoneGate. hearings about comment point? either in nature understanding if water how I coming more some they morning certainly you arrangement I and back circle that long-haul? could with securing XX-year if looking just to kind any And development me they Vidler over from I if a the at project, how the guys. or this wondered the has they give that's And their could have that that you of specifically does appropriate, have, StoneGate of Ranch wondered generically if they Springs on water at the go help

Max Webb

Well, to with there question, answer your first is part StoneGate. of place in arrangement no the

that would TMWA, that serve the StoneGate StoneGate a be in the that are that's that the think water would Truckee be your to utility water is development. entered used question, Fish contract area, available for developer supply answer to the and both Meadows part by and sustainable Authority, into second North water the to Currently, the could the Valleys. And know developments available water I really, there and of is Water provide who ourselves. Springs for

water what the up StoneGate and what a arm's sustainable map water get those We would and then would supplies, final to of is a do Our then have negotiations length go provide can result be we and TMWA the to as say securing secured And pricing would TMWA will-serve. supply. take down.

sustainable selling are by how will-serve. obtain their are the the water to to So TMWA we able developer, they that's is. utility. the supply not But Ultimately,

David Anderson

understand. I

interesting. That's Okay.

no They contract. will There's be guess, their so no It's at there something of. you So that said notwithstanding Springs taken there's care the water are is, said available established. and secure that not fact it. they have to that There's right, they have yet. would price Fish intent done I be

ask more question. generic me Let a

think Looking more then get you under to are just that try are this, it to horizon, is have but how deal is curious and Phase reasonable today, is years don't phases at X this when the with you I the road? X works, a water to down contracted at generically, going future XX-year speak needs option? an am assume negotiate there at are just to water to prices to effort of for Phase they it looking end XX the Or

Max Webb

Yes.

to it think determined. I remains be

on think the are really I depends force occurring wants or ensure what water them developer to also have other water sales that can't decision. they really it That's at not. anything. to to do the That's whether do those to same time, We more up the supplies up their developer. secure

As that's we with all developments. have water those control, our that to is why, can available do we provide the I said,

David Anderson

helpful. Great. Thanks That's very very much.

Max Webb

you. Thank

Operator

[Operator Instructions].

question next comes Please Morgan Stanley. from Venit go Our Greg of ahead.

GregVenit

Good morning Max.

Max Webb

Good are morning Greg. you? How

Greg Venit

Great. Thank you. The NOL question.

to proceeds of like strategic I am far talked you about whole instead it alternatives NOL Or it to it the more then all me the shareholders? selling correct, company, a efficient utilize sense? the more as that doesn't have make isn't return as isn't be sounds of, you effective for to So capital and but more

Max Webb

Board, view we, element Well, would analyzing be depends price. purchase buyer that that any factor potential It's a as the offer. into. it of into an potential the again, Obviously, on and would factored

Greg Venit

new And assets, way I only buy they what are believe. the that's doesn't company? NOL For to asset the would I least buyer, at if they the over don't really the transfer whether it. interested a they The in difference buyer, make, the or understand it buy

Max Webb

with NOLs to on don't preservation change that of are correct. assess And is I Again, limited. and but that NOL, reflecting the for disappear, be one tax we and would that's holistic in the any our just asking potential offer. it Again, They we that so analysis. limited. reasons not would potential we believe it's is but get. the if a you a view ratify otherwise of would purchaser the value whether those plan control, that valuation get very be shareholders It's that any really, are assess might they would

Greg Venit

the them and just intention to the Board, and going NOLs still sell may it forward so Is were assets company liquidate be of let's it would say water of but with Board it cash to that something the or were on else Board cash. or essentially the the you Or company? that essentially of cash do dispose distribute have has to close intention cash? you the distribute Is down shareholders the to or or the

Max Webb

Well, Board I I asking very be future. way you that The those. the Greg, are questions want clear. are viewed think, hasn't to out in

liquidation. We in not are

plan this is to business at Our monetize assets point.

adapt strategic a one-off it may in sell are the several assets. would We That we take years facts or review and there's And a may we process. purchaser be a transaction to those the if as at circumstances time.

assets our that shareholders at this do point, committed very the value possible we the for to then returning the I think proceeds XXXX, and best we as we shareholders. monetizing at are in demonstrated to can

Greg Venit

the on to number you if rights, let's on rights, amount based of what water the be you recent your sales, on just take last water all that release would if sell and were to based your sales, or Based were Arizona recent your transaction?

Max Webb

comment that, Greg. would on like I Yes. not to

and just the I the think community, fair option an Active the we Phoenix water farming small in with district we where have reflects Area credits storage the that Management agreement value believe that we of maximize a a with Arizona those going long-term I value in conservation potential purchasers look not up to to to, We comment supplies. of on in that's publicly. their try work something am need to again, various water shore Arizona

Greg Venit

figure the it out, us way of for water? a amount Is there to

Max Webb

of that have. we Well, I inventory the think we disclosed amount

credits, in Area. storage long-term of acre-feet XXX,XXX approximately have the We Phoenix Management of are Active some which

the the Phoenix Area. miles than there Phoenix. credits who buyer Obviously, If probably a the be Active Area, credits that's site depends of and those the the Active in in-basin Active impact was in of in west what pricing. our be the Again, some would number. value water buyer there. to XXX,XXX the the higher value I again get Depending to deduction not, marker purchaser would Management think good storage Phoenix a on is who the pricing And Management be those quote and There's costs Area It's XX to Management amounts. Arizona. want it is. on is be used wheeling I about acre-feet whether into where would wouldn't don't are or

midst that. negotiations I to the do able be in that be and on able free prefer are We of to be to constant to

Greg Venit

for Thanks the good. Very work. good Okay.

Max Webb

Thank you.

Operator

from ahead. comes question next go Michael Our Please of Melby Capital Management. Gate City

Michael Melby

question. taking Thanks I that if credits morning any water the And QX? for Thank did on am you could elaborate you did? just Good sell gentlemen. or in you. you rights curious,

Max Webb

Sure. sold Management in X,XXX district. Yes, under credits with had Active Area the option storage the we conservation the Mike. Good agreement morning water long-term we Phoenix

would that long-term been storage credit. a So per $XXX have

may recollect believe I by amount goes after that that quarter. well pricing December as in we rights Colorado You And sold a every in of small up months. water XX, X% fourth six

Michael Melby

Got it. Thank you.

Max Webb

Thank you.

Operator

over remarks. This for any to question-and-answer the I Webb closing conference back turn Max Mr. concludes would our session. like to

Max Webb

forward you. you We remarks appreciate thank you very support very Well, those for to and your listening our very of soon. and Thank much all for with look much you talking to good questions.

Operator

attending Thank The for conference has today's you presentation. now concluded.

You disconnect your now may lines.

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