STOCK TITAN

Cadiz and Bureau of Reclamation Execute Funding Agreement for Evaluation of Mojave Groundwater Bank

(Positive)
Tags

Cadiz (NASDAQ: CDZI / CDZIP) announced a funding agreement with the U.S. Bureau of Reclamation to support technical and regulatory review of the Mojave Groundwater Bank project. Initial work will assess Colorado River water exchanges, validate water supply and delivery, and evaluate potential future federal investment steps.

The Mojave Groundwater Bank, in southeastern California, holds about 30 million acre-feet of groundwater, is approved for up to 75,000 acre-feet per year of supply and 1 million acre-feet of imported water storage capacity.

Loading...
Loading translation...

Positive

  • Funding agreement with U.S. Bureau of Reclamation for project evaluation
  • Mojave Groundwater Bank approved for up to 75,000 acre-feet per year
  • Project includes 1 million acre-feet of imported water storage capacity

Negative

  • Cadiz responsible for funding Reclamation’s review activities, adding near-term project costs
  • Agreement limited to evaluation; no federal investment commitment yet disclosed

News Market Reaction – CDZI

+7.89%
17 alerts
+7.89% Session close to close
+2.8% Peak in 49 min
$390.58M Market Cap
0.6x Rel. Volume

In the May 26 session, CDZI gained 7.89%, reflecting a notable positive market reaction. Argus tracked a peak move of +2.8% during that session. Our momentum scanner triggered 17 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +7.9% in the session following this news. A strong positive reaction aligns with pri...
Analysis

The stock moved +7.9% in the session following this news. A strong positive reaction aligns with prior instances where Mojave Groundwater Bank milestones, such as the WIFIA loan invitation, preceded gains of 5–7%. The new funding agreement with the Bureau of Reclamation reinforces federal engagement, which the market has previously treated constructively. However, past moves have sometimes reversed after governance or dividend news, and the stock trades well below its 52-week high, so position sizing and attention to financing and regulatory developments would remain important considerations.

Key Figures

Groundwater in storage: 30 million acre-feet Approved annual supply: 75,000 acre-feet per year Imported water storage capacity: 1 million acre-feet +3 more
6 metrics
Groundwater in storage 30 million acre-feet Mojave Groundwater Bank storage estimate
Approved annual supply 75,000 acre-feet per year Mojave Groundwater Bank reliable annual supply
Imported water storage capacity 1 million acre-feet Additional imported water storage at Mojave Groundwater Bank
Land holdings 45,000 acres Cadiz land in California
Water supply 2.5 million acre-feet Cadiz water supply resources
Pipeline assets 220 miles Cadiz pipeline infrastructure

Historical Context

4 past events · Latest: Mar 24 (Positive)
Pattern 4 events
Date Event Sentiment 24h Move Catalyst
Mar 24 Preferred dividend Positive +5.6% Declared Q1 2026 dividend on 8.875% Series A preferred shares.
Feb 17 Project financing news Positive +6.9% EPA invited application for up to $194M WIFIA loan for Northern Pipeline.
Feb 04 Board appointment Positive -6.0% Added experienced former Microsoft finance executive to Cadiz board.
Dec 26 Preferred dividend Positive -0.2% Declared Q4 2025 dividend on 8.875% Series A preferred stock.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has produced mixed follow-through: two clearly positive items saw aligned gains, while another positive and a dividend headline coincided with mild-to-sharp declines.

Recent Company History

Over the past several months, Cadiz has issued a mix of project, dividend, and governance updates. A February 17, 2026 announcement that its Mojave Groundwater Bank – Northern Pipeline Project was selected to apply for a WIFIA loan reservation of up to $194 million coincided with a 6.92% gain. Preferred stock dividend declarations on December 26, 2025 and March 24, 2026 produced small negative and stronger positive moves, respectively. A board appointment on February 4, 2026 saw a -6.04% reaction, highlighting that not all constructive developments have been rewarded similarly.

Key Terms

conjunctive-use, groundwater bank, acre-feet
3 terms
conjunctive-use technical
"The Mojave Groundwater Bank is a conjunctive-use groundwater storage project located..."
Conjunctive-use is the coordinated management of multiple water sources—typically surface water (rivers, reservoirs) and groundwater (wells)—to meet demand more reliably and efficiently. For investors, it matters because this strategy can lower operating costs, reduce the risk of supply disruptions and regulatory penalties, and affect the value and cost of infrastructure investments—think of it as switching between two power sources to keep a factory running smoothly while cutting costs.
groundwater bank technical
"About the Mojave Groundwater Bank The Mojave Groundwater Bank is a conjunctive-use..."
A groundwater bank is a managed system that stores excess surface water underground for later use, like a savings account where water is deposited during wet periods and withdrawn in dry ones. It matters to investors because reliable stored water supports crop yields, industrial operations and property values, reduces the risk of supply shortages, and can create tradable water credits or fees that affect company costs and local economic stability.
acre-feet technical
"The bank contains an estimated 30 million acre-feet of groundwater in storage..."
An acre-foot is a unit of water volume equal to enough water to cover one acre of land to a depth of one foot, roughly 325,851 gallons (about 1,233 cubic meters). Investors see it as a practical measure for valuing water assets, rights, reservoirs and the revenue of utilities or agricultural operations—think of it like counting barrels of oil but for water supply and demand.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google

CADIZ, Calif., May 26, 2026 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP, the "Company") today announced that it has entered into a funding agreement ("Agreement") with the U.S. Bureau of Reclamation to support technical and regulatory review activities associated with the Mojave Groundwater Bank project under the Memorandum of Understanding executed in September 2025 between Reclamation, Fenner Valley Water Authority and Fenner Gap Mutual Water Company.

Under the Agreement, Cadiz will provide funding to support Reclamation's review of proposed water exchange agreements, validation of water supply resources and technical work associated with evaluation of potential future federal investment in the project.

The initial tasks, which are expected to begin immediately, include assessing the appropriate method for implementing and accounting for proposed water exchanges within the Colorado River System, technical work to validate water supply and delivery capability, and evaluation of future steps necessary to support potential federal investment in the project. 

"This agreement represents an important step forward in our collaboration with Reclamation and other stakeholders to evaluate the Mojave Groundwater Bank's potential role in augmenting water supplies within the Colorado River system and improving water supply reliability throughout the Southwest," said Susan Kennedy, Chair and CEO of Cadiz.

About the Mojave Groundwater Bank

The Mojave Groundwater Bank is a conjunctive-use groundwater storage project located in southeastern California near the Arizona and Nevada border. Managed by Fenner Gap Mutual Water Company, the project is designed to interconnect the Colorado River and California State Water Project systems through new pipeline infrastructure, enhancing water supply flexibility and drought resilience for millions of Californians. The bank contains an estimated 30 million acre-feet of groundwater in storage and is approved to provide a reliable annual supply of up to 75,000 acre-feet per year, in addition to one million acre-feet of imported water storage capacity. To learn more, visit www.mojavegroundwaterbank.com

About Cadiz, Inc.

Founded in 1983, Cadiz, Inc. (NASDAQ: CDZI) is a California water solutions company dedicated to providing access to clean, reliable and affordable water for people through a unique combination of water supply, storage, pipeline and treatment solutions. With 45,000 acres of land in California, 2.5 million acre-feet of water supply, 220 miles of pipeline assets and the most cost-effective water treatment filtration technology in the industry, Cadiz offers a full suite of solutions to address the impacts of climate change on clean water access.  For more information, please visit www.cadizinc.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "would," "will," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." These forward-looking statements include, but are not limited to, statements regarding potential federal investment in the Mojave Groundwater Bank and related infrastructure; and expected development and regulatory progress for the Company's water storage, conveyance and supply projects, including anticipated agreements and approvals involving prospective partners and governmental agencies. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements include risks and uncertainties and other factors described in the Company's SEC filings including its annual report on Form 10-K for the year ended December 31, 2025 and subsequent Exchange Act and Securities Act filings. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cadiz-and-bureau-of-reclamation-execute-funding-agreement-for-evaluation-of-mojave-groundwater-bank-302781913.html

SOURCE Cadiz, Inc.

FAQ

What did Cadiz (NASDAQ: CDZI) announce on May 26, 2026?

Cadiz announced a funding agreement with the U.S. Bureau of Reclamation to support review of the Mojave Groundwater Bank. According to Cadiz, this covers technical and regulatory work on water exchanges, supply validation and evaluation of steps for potential future federal investment.

What is the Mojave Groundwater Bank project and its storage capacity?

The Mojave Groundwater Bank is a groundwater storage project in southeastern California designed to boost water reliability. According to Cadiz, it contains about 30 million acre-feet of groundwater, is approved for up to 75,000 acre-feet per year and 1 million acre-feet of imported water storage.

How might the Cadiz funding agreement with Reclamation impact CDZI investors?

The agreement supports federal technical and regulatory review of the Mojave Groundwater Bank but does not guarantee investment. According to Cadiz, initial tasks focus on water exchanges, supply validation and defining future steps that could enable potential federal participation in the project.

Where is the Mojave Groundwater Bank located and who manages it?

The Mojave Groundwater Bank is in southeastern California near the Arizona and Nevada borders. According to Cadiz, the project is managed by Fenner Gap Mutual Water Company and is intended to serve millions of Californians through enhanced water supply flexibility and drought resilience.

How could the Mojave Groundwater Bank affect Colorado River and California water systems?

The project is designed to interconnect the Colorado River and California State Water Project systems via new pipelines. According to Cadiz, this interconnection aims to enhance water supply flexibility, support proposed water exchanges and improve drought resilience for communities across the Southwest.

What technical work will be funded under the Cadiz and Reclamation agreement?

The funding will support assessing how to implement and account for proposed Colorado River water exchanges. According to Cadiz, it also covers validating water supply and delivery capability and evaluating future steps needed to support potential federal investment in the Mojave Groundwater Bank.