11:27 AM EDT, 08/14/2024 (MT Newswires) -- Cadiz (CDZI) said in a regulatory filing Wednesday that the company, its Cadiz Real Estate unit and Fenner Gap Mutual Water have signed a water supply agreement with Cucamonga Valley Water District.

Under the terms of the agreement, the companies will supply Cucamonga with 5,000 acre-feet of water per year from the Cadiz Water Conservation, Supply and Storage project.

Cucamonga will pay a maximum of the lesser of $1,650 per acre-feet of water per year, according to the filing. The company will provide water to Cucamonga from its 220-mile Northern pipeline with a capacity to deliver 25,000 acre-feet of water per year.

The Northern pipeline has an 85% delivery capacity and Cadiz is in discussions with public water systems to amend or exercise existing letters of intent for the remaining capacity of the pipeline, the company said.

Shares of Cadiz declined over 2% in recent Wednesday trading.

Price: 2.91, Change: -0.07, Percent Change: -2.35