Pure Cycle (PCYO)

Mark Harding President and CEO
Call transcript
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Good day, ladies and gentlemen. And welcome to the Pure Cycle Corporation Year Ended August 31, 2021 Earnings Call. At this time, all participants have been place on a listen-only mode. And the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Mark Harding. yours. is floor the Sir,

Mark Harding

Thank you to end afternoon. like welcome, call, much. you all And upfront. welcome housekeeping year bit good to a I'd of very our earnings XXXX

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that, So let's started. with get

thing, First room I'm is sure the reference incorporated statements. forward-looking by that the lawyers presentation harbor you want are of statements contained which or are out our statement, forward-looking do we the statements. in familiar all safe always this with harbor facts statement, are historical not note get and to of safe

to of want I highlight that, business of aspects with So various the the company. kind

businesses. We a water the have utility three level, of DNA At company. lines a company is

connections. those single-family shorten SFEs. water service terms our of - we Taking of right? water in where define those portfolio, wastewater country a portfolio in those, a as develop of rights water metropolitan water area we number property, look the a measure services own and own and here of two we in area. our real at So equivalents, in the you We of Denver level as Denver can an We

in serve can and of connections to for terms approximately will portfolio translates our us. XX,XXX what accounts which that define SFEs, So

we development In water the addition opportunities. land to provide portfolio,

homebuilders X have acres, own or out about years minus plus XXX of we land to about homes. development, sell been have and we but we've into to at constructed been able started that national So that XXX acres lots

about we XXX XXX about constructed on. have we've So acres that homes

project feet duplexes, different units, which of the commercial the with segment then retail, leverage to industrial master whole of X,XXX a will seen So the we little will multi-family, is for bunch that in new planned units, accommodate we've detached also about points development build be of we where a have light commercial that, mix segment square we a really finally, commercial, our kind spectrum units, a residential products attached to that associated have on of over successes total, the And a And price and continue types of that. community. there area that. as a for project run X then which land of residential has million zone great uses the

to into back our our our that then from able lots partnering we and market. directly then We home construct other our and homebuilders and are homebuilder the sort holding some independent be to homes rental we contract homebuilders retain and and - single-family partners that of will of people homebuilders partners, with enter homebuilder working with

at those have through walk a a that are exciting the really lot some on on information. do I robust we purecyclewater.com, not presentations of that really detail there. of a podcasts on company. some There's want got to it do website, There's of you some a bunch the update of that lot on there our videos you as note there. gives to you and to well. details do we've been for very So website have There

pay segment, a where let get together for be water. - pricing connection continue a fee, water of covers the all to little and that company. this, with a portfolio of we for We our building instruments Colorado, homebuilders, and the monitor the that's do to into we the of for which a the goes building With utility infrastructure the of paid bit own here. by certainly system. wholesale there'll you that, opposed get bit is talk a about grave that tax a two cost the and large fee call, little water a We permit. of connection And this And water the and lot. that go the of all as differently that that wastewater success mechanism open of kind outside all a time to kind fee So in that at treats, system, with here they resource to wholesale of up We distributes where that. property cradle infrastructure really we to construct area that that of diverts, the me

of or mechanism We sewer same have And They're water that system tap fees well these fees as connection get reference the charges. providers either as all those fees. tap development Different area we that. fees. tap as in

So capital those large those are fees.

about And basis, that. for combined then there some of connection. on a are $XX,XXX you on per math doing So the

capital take you and on XX,XXX we use to all that that we'll spend rate, that to $X attributable billion dollars to construct probably, paying. building And worth you're have than get that's at usage we have, accustomed in that system. billion annual more serve the of those a look XX,XXX of If those $X that, Once little we facilities connections a we that topline that's connection, connections. what the an of about and a

bills. You get water monthly sewer your and

particular and really per we get here on on and get $X,XXX side, so water service connection about areas, $XXX the sewer per And side. - in the connection we about our Colorado in

about actually retreat that that, year $X,XXX from per customer on every we SFE generates supply. them, collect then We that So back that. and water we reuse and then per water

some a water customers. of system in that discharge irrigation have reusing zero industrial we our all outdoor we're that where and So bringing back through

at your water component to substantial this a through of conservation show leisure So you in and this to it's Talk years areas that kind then at we're definition the Ranch the picked little a you but area called bit, and this and too service Wild through Sky will detail I Ranch an water ago won't of where very of also area can to service up some SGE where a and of we - business reuse. our our a provide study much, we Lowry service couple acquisition Pointe. metropolitan

our manage of kind we those we're have have some facilities some of - on the And getting of the the a chart of systems we and have some potential So have. we that that where operators our we we of and things, those wastewater then are connections, customers. today, our licensed water for system. just that wholesale started. metrics XX,XXX of Kind we're are in growth our both operate If

this alone. X,XXX from. then customer just be those long, our connections through Albert where We Ranch, have runway connections. a us. build have or residential Ranch at Sky at we XX, County projection in just Albert come connections opportunity to the other those be opportunities of about will to of either for as through the And those out, a is relate that long Highway customers. both kind Sky the This Ranch coming XXX from continues service They come customers water And connections Lowry so commercial customers, will area

X time that. of of X left years got all So X,XXX year those within build projected connections out horizon, a more we've a on

So that land successful update, very plan our Sky we'll Ranch. development bit a little project talk about but in with master

our kick that. at corner of it come area. and of the Lowry kind impresses One encroached get and that. where kind they of our metropolitan And a a comparison folks the gives kind has for good when This is really is is service proximity company development, that the something of area, the southwest often the of is area service on certainly, questions for of on Ranch you the in you this I tires to which feel shot on and the

Aurora, side attractive Colorado relating land. predominantly in beneficiaries, as piece the the for and the system then the area, K-XX the Ranch left of the that asset location itself develop Lowry in assets fiduciary of here of The service so owned of held which of that is and Colorado. certainly, It's in Board, their metropolitan by of they roadway So and in trust with side largest area. right is education very is operate public That the is number state the a of Land State the a city our Colorado. to trust everything of right education. have They public is

the responsible are responsible that. all for they land of utilities attributable and we're for So side, development to the

area service will take this that water you're a that some as of able highlight feel Metropolitan thing, of area. you a So gives is This utilities. water and out to the you in to in it come our for at look and investments where if wastewater utility, make really comparison the to come our or as continue our just we our kind

are gas. So on our revenue had customers are for going down these little Pointe, years, industrial adding oil taps the in in our as be land three water Drilled sold Ranch capacity recent well Sky years, tremendous that development. bit year-over-year over Ranch we've little service attributable to as tracking and the a recent over to to areas going be capacity bit fee there. most mostly our most and Wild of both A growth for Sky through our adding and tap

on As than of X,XXX well, We're of we significantly of about lots. up and X,XXX in as development XXX to if We're can look of that I we but down square accommodate single-family think, I that commercial mentioned, multifamily, depending of some It more development million It get X,XXX, had translate. users acres. to because about type there. be about - SFEs. that could at originally about opportunities might that on a can commercial continuing XXX bump X,XXX couple you estimating what feet

activity area we're think the area I-XX Denver We're corridor. of all of an in the where metropolitan We're is located. the occurring. along ideally I

with frontage We mile development. an have I-XX right our of interchange at about X.X along

of of down on you in had that. will our area. the We This give original So XXX first spot we're in Denver view sweet of growth of activity all an kind the Drilling day. lots. aerial the an

or then minus sold will give about - XX you We out houses units of under that is And caps construction. number two plus those of there. kind have between difference are the approximately the XXX those occupied

So we of that that homebuilders total we currently two X. were of sold the completely XXX estimating the out have lots available under in that are We're Phase have homes XXX three that of their be QX Those remaining The few homebuilder lots lots or 'XX. the end estimating. we're the are much final other has sold going of by out pretty home. construction to a

date. that Any lots little highlight going are going are what fast. received there available of those A are bit out to about So we've fast.

revenue fee almost $XX to revenues date. lot that. in million re-imbursables. attributable $XX some also to We've then have tap we fees So And million we in recognized have

and governmental build we be public will that drainage the by on get we roads, as entities, reimbursed the curves for gutters, improvements So that. owned the other it,

in those KB are on to of of first about in received our These So KB, look a that for our $XX phase. second contracted total and project are our Taylor which phase, Morrison lots about the up of date. by have returning. second those here. phase, and balance lots. to We'll the we be Taking worth have are we that Richmond portfolio those about of build of XXX homebuilder which XXX as we we've of are to million going first continues the portfolio out. that partners, of re-imbursables, lots is our $XX.X million receive opened homebuilders our at is a a phase,

in D.R. about that building all XX continue to in we Challenger that. Lennar, second XXX have there Horton can retained our And We expand we've lots added to phase. that with into then an lots be additional as and

to lots going So lots of for market single-family rental hold segment our be going this thing. those those are XX to that we're

to have model can We and pursuant expect those the for homes February, company, they We'll XXX full million generate to model this start some hit homebuilders later million deliver lots timeframe. to home revenue to in speed about lots around start season the about $XX first The contracts our year. on $XX the so tap our our fees. constructing available March lot probably lots will

and the We $XX get worth those of to costs will construct. all and reimbursable attributable million that have improvements curbs that we'll back roads about

it $XX.X million is an to costs development of second our have sub-phase phase. estimated we bit. attributable in This So little total kind a

as So what for want looking lots deliver we're - builder wants our builder is them. our to partners

those. they pace so a like And them down to take in attributable certain to

construction under us, for installments. So nicely very X. in We're it carved four equal Phase X project on up Phase almost the and

these over grading with and We're number develop and still phases. into of the grading those the in if you, then total So in take In to work phases, micro Phase we're the at to sequentially have utilities X. each kind incremental utilities lots. the connections Phase we'll of the for doing the you our roll each these phase, almost complete of and cost phase attributable X attributable X, work Phase our P&L attributable each those, revenue lot a tap of look infrastructure to fee their

some of so that's not linear. And quite

So for end a that than idea X, lot all you sequencing also the up Phase of in of those out but phase. in of kind providing more re-imbursables public X could of and that upfront and improvements the times, each be of you some having then do Phase costs an grading

those that give thing at for lots the And in how that particular the percentage color about gross the a they they phase. and and some our by types of works total X being full other distribute million kind terms how out are this of close total then to you the lots look of of that that So statistics you whole. Phase of of builders, whole potential margin as will $XX XXX, about when the number lots

of information an kind is kind manage give understanding run this business very how segment. to you So helpful of we and this of

we a phase, what of probably go terribly better into If where a delivery. as phase many very first do or where that. agreement down company, you and this who either of sub-phase job working agreement follow lot want on will But we we development of finished partners have the structure you have in - us pay to homebuilder the a lot should three named, really an we're second our installments in they're

then is are is preference that that price per lot we on significantly our your your lot depending development the some is until tolerance so of where lot homebuilder a paying attributable at what we cost so what cost the that, all lot, delivery, to is carrying one And have. capital than price and we if finished do the that lot agreement include more prices

be here. that some going So is to of distributed

we platted lots have LDA the our the on closed have We that in structure. for three builders

So that's been the first takedown.

'XX. takedown we're second first one the projecting out close The to this that quarter at end of

builders final for the the then be and second wet and then the So is builder it's that LDA we payment under are when deliver the one structure our will finished structure. utilities that the payment the three under lot delivery

that big be payment. the So will

So be in we'll see it always come Those a at that. And at all at in once. coming block time. doesn't will a

really see trickle on those of revenue basis, deliver but you'll a do in. real that we So some time

summer. all expect next completed to We of that be

sub color mechanism So phase. a first phase and million for will as sub sort well. this $XX.X product bit delivery the first the pricing this of their Give be lot you more builder little type of by

single-family weren't what this we the looking that building there. for through segment. our that us about to if many looking continue developer. and of in some the is lots the able we're talk in themselves And rental appreciation what really the to value of not lots roll And the to in we're homes community equity and the take in here, being segment we are would for heard be of in we have Moving on, land you really,

Ranch community metropolitan And segment. is we're value bought and ago, area XX XX naturally in price this from at attributable appreciation their seeing home as much seeing in market tremendous of appreciation in to in XX% that growth the they're growth the and months who So really here particular as months. the Sky buyers home

our build that's kind also on of want shareholder value. by So to that. build recurring really, value revenue We attributable and asset appreciated to a that highly strategy really

we are of of of detached we demand little there seeing prices first within steady have the offerings variety have of weakness, with in to that now square XX other in in that time, types in see things delivered Some town bit we this. homes, and maintain days. that continue where rental a foot number those duplexes, competitive tremendous constructed a of about like we're lease kind configurations. either homes, We listing increases while budget have product that in homes all three on homes three we with for started three a And those is and homes were our and bedroom phase, ultimately, are and or what process rented

some appreciation price then constrained that the here's and demand Denver about for strength So And availability we're the just single-family marketplace. the in market statistics segment. market, show a homes of tremendous continued seeing the which just to these general in you within

much money, market cost where that lines where year. we money we lender, and we leverage like credit opportunity of XXX an to of segment, this the we with X% at that vertical finance per houses available sheet inexpensive So our very can balance our where the to these do can X%, it's us very have we are are some at that like fact appreciating and pg borrow us through for

you've So flow a even all this itself a but by positive take every monthly the arbitrage income look it, then thing, for unit a got there, just when we've have. you we that natural cash at got on

gives recurring per single-family on per And us XX of $X,XXX revenue that recurring we about single-family customers, when connection almost the our house $XX,XXX, get rental revenue. times so utility on market $XX,XXX

those just of nice in between this. about are the little So cost company We difference those value statistics it. the adds more shareholder house. three and delivered the the for A very bit and homes

appraised homes at capital market of was almost of $XXX,XXX us $XXX,XXX. about house the the for cost those value So the and

value we're able XX% for use So loan tremendous for us, though. to to financing, opportunity and

aspects so somewhere of kind well it homes into each of all got. likes worked for the of three constructing This us per you XX we've would and a year between of We're homes get bank second estimating It's it. far. as we our XX on our phase. very So progression give that

take to you of can in look but get out. it, homes November, And a great. opportunity kind execute if these leased we those terrific the for it things start and only get they these not us look if to things in March of So at this see on concept - delivery date it's was of built,

they A floor So you and have detailed photos can nice of oil visit bit about little product the kind that. very gas. how our on We'll more website. themselves, some and but plans of position

leasehold So gas to three previous this a was XX,XXX they've and company. a XX-acre provide position and It's companies. water the It's public this this. company on the laterals which sometimes of we a number in called attractive a of do combination a We've very It's oil drill Civitas. they XX,XXX-foot it's much field, as of got ability number foot, in because in a and company, operators of which area. brand-new largest to got with And got drill spacings operators is as formations a horizontally maybe large at here. spacing,

capacity each if over capacity, fracked. And have tremendous of we we're for drill they XX,XXX $XXX,XXX of a on that. spread well XX-acre then that well about amount sales gets have full in We spacing that averaging water this field of worth at build-out a

wells date. than Oil a And fracked about they $XX at were so barrel. there's $XX barrel much prices are been attractive more at to a XXX

the side. system of can wholesale more activity an is width across we in full of This water kind see highway the get and of other bottom from on scale where way footprint the water a Line Road all And our well. a of we the have I-XX, now. to field very all county, we the have large that illustration side up to way the is which the ability of the lot of Road County distribute as - we right So on just the the northern County side the

terrific filing first gas for It with very nice Fiscal in all every and XXXX, oil we a Taking doing almost well. was that we that us, completing a continue So what us of year as to metric the year growth. employee Sky been by Ranch. a employee partners look terms at we it and can that's segment challenging companies for of of were our measure. I'd was for say, retention, a at in work

team challenge. And I you're company has we're building deliver to turning office continued and the We're of say, things. so in would because you're and throughout that a valves our critical the type

do brand-new got full we've of full that. a portfolio and the then terrific that start business a us. And folks job line just execution on from also to a So finish for of launch

So side. of great financial year, the also but not the terms side, operating in only on

always we're million. like $XX when highlight good to I of talking about this. So financing of years our the Revenues

able attributable have and but the as we into do those to to is spend on to revenues, but income not it. want That you $XX a well $XX those receivables sheet does we of million that. so does of sort then had we net to - we of - our were revenues, that And gross so Really, balance those. fall And that operations in difference that's recognize have the you rest the for the at both one a CPA, line attributable kind income. If the between revenue our are the on take because in on receivable that look on the $XX from margins this some the re-imbursables us I book how time difficult explain, net of and the million million happen? who well, as to say, we

that of million. on sheet So at are utility $XX currently our Ranch customers number XXX. Sky about sit about receivables balance Total

as So a well. for us financially very good year

payable. does one what was and liabilities. no high We tax position, is income balance out liability the time with in liquidity to sheet have very we The detailing any spend income won't strong have here that, asset degree the really this statement that come potential on this. both attributable but I almost

position this as on year-over-year on losses So paying be of that federal basis. opposed always to hurts to a happy entity accruing that get thing, you a to coffers a tax but in to the contribute

I'd operator. of like has over color what on if is on back that, you've that any if the concluded little to our the can more do want down turn with I us. And that a of to detail got some you bit for it questions, drill year-end things So for any


line question [Operator live. Instructions] is Bill for coming Your is your first today from Bill, Miller.

Unidentified Analyst

quarter. Congratulations on fronts. Great all Mark, year. terrific

Mark Harding

Thank you, Bill.

Unidentified Analyst

days The and over don't of you're well, have you of lot - more districts take active still your work, where water, utilities metro in have prime to that said, we a opportunities I of but land wonder in Whether acquire some endeavors. the very the more acquire of or the water. those And stands?

You've on know you've don't importantly, got to perhaps, a else? cash second anything be should be whether or lot I going these and more got already. But you receivables. want or all it

got more not you're stock. liquidity. yes, back don't why buying extraordinary And I understand You've

If strength could financing of you the to And to always which would. do you have your if borrow I make get you a, able acquisitions, it because you're to wanted sheet. the acquisition, always of secondly, you assume cash, balance for

buyback be fire want. to able of stock do acquisition kind powder any you a that So activity bunch ought you of a to to have and

please you could respond? So

Mark Harding

to three I will, apart going I'm break there. into segments that

in on let's that. out channeling saying, okay, of that's the our Board what's got so building follow Sky list, and great Ranch, Ranch Sky a you've certainly, about opportunity And And you've on and sort up continue wish to on now talking got true.

and really development for dividends water land our have is that. the combination proven on think I team and of us great,

we in an have I continue And the market a and that, for on market potential do that. a at is the is we we frighten additional the are we say to because to think us do acquisition would while certainly strong, bring appetite it. that know that acquisitions. so virtue strong that there's of by will of acquisitions number water value with can fact we to doesn't it have because I housing all And particular combine

taste find them particular the our water, and zone, out. and land position our of then that entitle water them side be to in a be equation opportunities them in So bring to that don't to build have would

are And and cases, that. takes so bit about for families these to it land on sellers some a a of side very a time. does are long aggressive who willing little standing. held long It take the In handholding we have Centennial that holdings seller that get sometimes, really

that's part - of equation. those key the a So

So Bill, as about announce little a that we be market. bit to to detail we are and the about hope that able very aggressive more to talk that

in over evaluating other their are potentials and we kind in take Pointe. help where what can did Wild utility bolster their and and other operations like We out we markets, combine utilities with utilities growth their of

didn't to but and those out us. do and to there. they in sheet, a but every call, two of is strong the valuing out cost, And significant - I that the I balance but are Strength shows that I do at the is year-over-year. sheet, year, say really stock cost So a stock are segment. performance are there, which had say, one I we're of market really it better we we is from delighted this this are increase highlight us. borrower market balance our was And us, in about. active if we've market things available we the look that borrow this have valuing presentation graph, time fairly yes, our our mean in able which develop they're wouldn't price, without last you any

market the $X Board buy we a appropriate at stock. discussion. it if share that people to something the and And with share, it as $XX But might not at that be for be competing that and in buyback talk about $X, every different were is significant about meeting talk opposed or potential it's a a so whether to trading to us want

we and have them program. compete to to build shareholder by to an to let balance, been our a be that shareholder out And and opportunity the base. a there's them has So with balance conclusion repurchase there's deliver and say, being, significant strike there. trying ways we're value try not for to to broader really time But diversified that still

to risen a point it's on it's item us a if action So that's lost yet. just potential, hasn't but it not -- of

Unidentified Analyst

Mark, now...

Mark Harding

had was There meant... that third one I a you

Unidentified Analyst

this probably progress Well, as not the - between stock your reflected and know, I made you before. you've last year you're undervalued is mean the price. year, in

You're still undervalued.

look generation, you if revenue in way rental were you than much at you're company ago. a at every your recurring from a year endeavors mean, you look cash I the stronger If you sales, the have, new the

Mark Harding

[indiscernible] Bill.

Unidentified Analyst

know But are even given going if that's now. you fact, undervalued that, in year to next in next to for the year more projections Okay. relation case, right and be your

authorization to you're be the to and mean saying. seems me I a So stock validation actual the buying back of of your everything

Mark Harding

- Yeah. would and pursue is it to on so to the thing some powder for that to with. I Well acquisitions have us one helpful is these that layer

on others. so depends for than these we so proposals some strength the liquidity, demonstrating sizes in bigger making And acquisition, want maintain we're some how to are some And continue the to acquisitions. size of

that So too I'll our you can't color beyond certainly give much leave be it there that, because to something more continues but is I that on agenda.


Your Knight. your is next coming live. line Elliot question is Elliot, from

Unidentified Analyst

Mark. you. Thank Hi,

Mark Harding

to nice you. Elliot, to talk

Unidentified Analyst

production, in permitting? worldwide What's on a in in fracking for that was is time particularly the be in US, to and a what's Could going this that? and should flush we talk their money but bit little Thank The water the seeking the be hiatus. going that - an were the and ideal water What's in supply? is on? getting the Pure on going that permitting, fracking, extra Cycle's industry oil gas anticipation Because a - in industry in the and given frac companies going oil understanding on. hiatus going of about aggressive back you. what logically, getting they're permits. What's sought on moving My preceding there very on in

Mark Harding

So way give on. update kind an an recovering call that one that's a gas. you approaching bit of had certainly, of question a, of Colorado as gas environmentally of oil of good bit a I and and sensitive and will a oil can kind And appreciate. you I'll a it, analyst

industry that down, updating they settled move or regulations fairly X and taken forward. look has has have a a state last, over level most of how the And the of at say, years. experimented so wide appreciation we X stronger can I And and changing at our and think a

with So constrained oil activity lot a together that had a price. $XX of

lot a that was so occurred low. And activity oil when of

the we is to the the do growth, Now whole is east, we're a on area has that develop ahead this more are this the What I live growing companies while is We metropolitan right, aggressive of what to you're oil right? oil only about supplies do it the us And so have growing a seeing while industry here to Denver, Rocky is, west probably it $XX at We from slide right? doing. an stay have you in tells developing a is much -- right? think not supplies. opportunity that we're which barrel, West. story low, And notion is better prevent of is what from Mountains,

growth that has it And as it gas. with all So grows and East, to go East. oil competes

regulations those through of all while we so the of development. regulations, oil updated that had on And ahead controls being have setbacks, gas to urban companies the the really concentrate these work and

while aggressively stay ahead that of is development. stuff so oil they're developing all that important to that they've that And they a lot them, got settled now so out, of price

of permitting other any this in more the has it robust than So year. is much

come well in you of player a to and the Denver. from as all permits their in extend central moving state growth communities, we're is upper thousands look [ph] in Colorado, getting of north towards northern this the so at area right? and of is the is around of this that particular some one, You seeing - the County then in east. kind the can pad Arapahoe take but you're airport most that set, probably urbanized an the sites certainly, in of the they're area So This

very oil continuing And looking gas their way about and to about pads in, aggressive are companies so wells being all their really these of kind drilled east. and then their getting getting walk

oil So I'd a the you increase significant in see revenues that. you will gas our XXXX, and guidance give that in on

that our right $X.X I for high year think was million. around

bringing that oil doing. in. the of And and those terms look in be sales. I They're the wells. very drilling They're think year this rigs they're all gas very, then they 'XX that because to XXXX, exceed good need we'll for those doing everything permits. They've us think I got

that this activity in because more lower see maybe of starting what the continues than these even years, areas. Denver be of X price much I at is fact to this area or is encroach X past urbanization trend while the and of that So oil risk a robust the to continuing the the

want they So to stay that. ahead of

So of it that's the describe what would nature really oil how to we've seen compared I robust and gas and as previously. the

Unidentified Analyst

with this, Civitas So obviously. on board is

are. their reflecting that be must Is You fair? what plans

Mark Harding

really stay mean that of drilling I fair. to are encroachment. Yeah, that's concentrating on ahead they

where but to where you be going if going to going going their their at already on, areas be their they be march to going those communities. legs are horizontal way pad that pads homes their They're located, located Actually, east. look site, to and laterals are so to drilling. have continue from going they'll be well to then they're under they're are And under offset their be

Unidentified Analyst

you. Thank Okay.

Mark Harding



is Elliot, Instructions] We question follow-up live. your coming a do [Operator from have Knight. line Elliot

Unidentified Analyst

us Well, you. Thank question, timetable of ask talk development if and Mark, the you update your to going properties? nobody - would on for commercial is the commercial else

Mark Harding

great Yeah, question.

centers. and the that's economy then people And of where something a of distribution that then fast the some and commercial big Depot a stuff, supply one mixed that. things you like for are little and be So time demand Club, order. some started out very is I Where uses box maybe very, leaving lower is did, And laying in relatively is we where type quick make is that all of the to nice dining of high to it because of commercial a starting and fact able we this it mix broken. we chain to the now we've borne availability store a logical got world that are, you out there. master of plan grocery, in as areas as being the then and like like in a to development kind that were ordered use to get to thing retail in retail and of going the model think detailed Home for it frankly, And be crisis our Walmart, the just uses that of the to still or site as well Sam's punchy casual aside commercial, a migrated type about

entities. And to that inventory so a or a high there's or going or and they very a seeing an the we're stack need, distributor some to Walmart be in whether demand Amazon stronger like actual things for somebody where distribution like can between centers that's

of So transactions I starting stay We say, a be probably would need we've bit of that. little probably just into aside got some of at certain and set for a - some timeframe they is retail 'XX, rooftops. 'XX to that next those year look we'll of then 'XX, because following number

you large grocery store, metrics volume million they they a $X a that number in their day at rooftops. the of If look into translate that and are need then

so And making about our on pins their folks been in put these sure all to good reaching that they project. we've very getting out and map,

of we it's marketing box, it's the And centers, those the whether so they grocery, big have very to whether active all those. distribution on - whether it's out been

build rooftops. development more the surrounding site the to rooftops our queue continue lot those that in in type of We're getting only we interchange be We're that and a the more folks so able area activity. do of get as be and the to they'll to that of really are properties out, And because logical. going that

had planning So the so off, we but they their on had accordingly. us on it, plans we It's a we them of call that that were right for little wanted of folks them conversations a didn't we make still in wait on make sure ton ton we've that a with of we've while making of it. and a plans to it that it, bit marketing we've had sure ton to front set - those

Unidentified Analyst

but buybacks. least, Cycle if continue stock. things and cash be dividend that make modest a about stock to I'd And even a last, didn't paying you've mention a remiss not would as And such dividends truly be are believe really dividend help. would I I annual dividend talked Okay. Pure There and

So I hope you'll dividends. consider cash

Mark Harding

funds holders segment look that's - that, our recurring new and have that And that supercharges whole took want certainly dividend take are revenues, like a otherwise that a your buyers strategically on right. and necessarily those the to of annual appreciate the model. You really, dividends we do I sales tap do and right? look dividends, your driving you sales one that your of a ahead where at utility the But land to do it from our of one you of would opens sort themselves to was don't segment. And through at and and through And or up us segment. of the factors allow driving, factors but not a dividends revenue to justified BTR stuff.

those that Board you're come right. is So each foremost meeting. on minds, our also conversations one It at of up

Unidentified Analyst

That music you, ears. Thank Mark. my is to

Mark Harding

others sure I'm yes. listening, And

Unidentified Analyst



coming from is Bill, have Miller. Bill live. do follow-up line your another You question

Unidentified Analyst

into getting why just before our it idea the whatever can to water you're very sales single your the future. best houses, call, able the not significantly recurring because $X,XXX use of you own me seems attractive $XX,XXX without model dramatically from investors a revenues in the per the and flow family or you expand limited year to study financial revenues to then Mark, of want so house, And is to cash being year to given under recurring rental the business you're getting long for circumstances, which... a like the

Mark Harding

Utility segment, Bill. question, Good sure. Sure.

walk customer, You that. at And whole accelerating looking product your fine line from a being we with customers that developing are actually competing your for us. and

significant of range, little first performed while this demand month, end on right? forecasting day, three, And there a and of that out think whole only the as there of a month. I $X,XXX were rental our $X,XXX that sure understanding making it's at how more interested had high out the We we at we bit to a was But rented in the that end works. those probably three, could how so strength the that occupants at be got given we So process we well. we are have were

that phase that of second reserve be second we're at there's and the while units. between XX a XXX that looking those, into of phase, XXX portion can Moving we

second that, big a phase. XXX If right? So you units much market see number. you're in, coming looking $XXX,XXX XXX and And could to units that on it's as is at as all that on

B and we're to it going on We're skis, incrementally. We're going to word start bit to so do talk do and the we too call. get that to recurring to a it We're don't then far little our going bolster that. smart. that about being aggressive revenue while And pursue over deliver to that still it do going but previous

Unidentified Analyst

Well, cash but dividends anyway... interest me,

Mark Harding

- paddling. I'm I can't

Unidentified Analyst

point your degree, maybe competing to second be is, I the rental really and that are should that than fact emphasize house… so Well, Okay. but the dramatically returns to units some units, you you're for rental would the basically are better your

Mark Harding

too. just the the asset, depreciation of And

Unidentified Analyst

that's not leverage that's give end. because higher important an going Well, for to more you

Mark Harding

word. Good


questions more in no queue. are There

Mark Harding

to doing. to we're a in of what or give call if very is for Great. call Well, hesitate you down excited. came happy don't question, that up it me any on this of that if and so We're drill the interest, wrapping up, specifics you something to a to have piqued technology listen certainly don't hesitate challenges on this replay a and your any

been I in of year year. performance the a think volume the a terrific is been It's Certainly, of better stock. terms it's up.

day. a on equity of So we're average worth about trading $X million

liquidity the So certainly all that. enhanced is on

this investor And if think a again to York, for to at a do to relations, like sometime out that, lunch can and yet face-to-face we'll maybe we or and conferences. in New for something up even to December, a get see be we'll huddle send I'm and to certainly do change. that New if I opportunity get we note more on an looking outreach year. continue so get York Maybe

results your great support want we thank and for in with XXXX. to continued that, you say stay company. And So for interest some your again, more in would the I continued all tuned

all. you thank So


gentlemen. conclude ladies does and This you, today's conference Thank call.

a disconnect your Thank this You day. for time, may and have lines phone your participation. at wonderful you