Cadiz Mojave Groundwater Bank Northern Pipeline Project Selected to Submit Application for $194 Million WIFIA Loan

Rhea-AI Summary

Cadiz (NASDAQ: CDZI) announced the EPA selected the Mojave Groundwater Bank – Northern Pipeline Project to submit an application for a WIFIA loan reservation of up to $194 million. The reservation holds funds while Cadiz advances underwriting and seeks complementary equity, grants and municipal financing.

The company cites a $51 million first tranche from Lytton Rancheria and due diligence with private equity for up to $400 million into the project vehicle MWI; the bank is approved to provide up to 75,000 acre-feet/year and holds ~30 million acre-feet of groundwater.

Positive

• EPA reserved $194 million WIFIA loan capacity
• $51 million first tranche committed by Lytton Rancheria
• Private equity diligence for up to $400 million
• Project approved for 75,000 acre-feet/year reliable supply

Negative

• Project requires multiple funding sources; full financing not yet secured
• Construction dependent on pending WIFIA approval and definitive equity agreements

Key Figures

WIFIA loan size: up to $194 million Initial tribal investment: up to $51 million Target equity capital: approximately $450 million +5 more

8 metrics

WIFIA loan size up to $194 million Potential low-interest loan reserved for Northern Pipeline capital costs

Initial tribal investment up to $51 million First tranche from Lytton Rancheria for Mojave Groundwater Bank

Target equity capital approximately $450 million Total equity capital being raised for construction and development

Planned private equity up to $400 million Private equity in Mojave Water Infrastructure Company under due diligence

Southern Pipeline length 43 miles Planned Southern Pipeline connection to Colorado River Aqueduct

Groundwater in storage 30 million acre-feet Estimated groundwater in Mojave Groundwater Bank storage

Annual supply capacity 75,000 acre-feet per year Approved reliable annual supply from Mojave Groundwater Bank

Imported water capacity one million acre-feet Imported water storage capacity at Mojave Groundwater Bank

Market Reality Check

Price: $4.91 Vol: Volume 454,483 is below t...

low vol

$4.91 Last Close

Volume Volume 454,483 is below the 20-day average of 929,499 (relative volume 0.49). low

Technical Shares at 4.91 are 29.45% below the 52-week high of 6.96 and trading above the 200-day MA at 4.33.

Peers on Argus

CDZI gained 3.37% as WIFIA financing advanced, while water peers like ARTNA, CWC...

CDZI gained 3.37% as WIFIA financing advanced, while water peers like ARTNA, CWCO, YORW, GWRS, and PCYO rose a more modest 0.99–3.61% without same-day headlines, suggesting a company-specific driver rather than a scanner-flagged sector move.

Historical Context

5 past events · Latest: Feb 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 04	Board addition	Positive	-6.0%	Experienced former Microsoft executive joined the Cadiz Board of Directors.
Dec 26	Preferred dividend	Neutral	-0.2%	Declared Q4 2025 dividend on 8.875% Series A preferred shares.
Nov 13	Investor update	Positive	+4.6%	Q3 2025 update on Mojave Groundwater Bank financing and operating milestones.
Oct 28	Project financing	Positive	+4.8%	Definitive agreement for up to $51M first tranche for Mojave Groundwater Bank.
Sep 24	Preferred dividend	Neutral	+0.4%	Declared Q3 2025 dividend on 8.875% Series A preferred stock.

Pattern Detected

Mojave Groundwater Bank financing and project milestones have often coincided with modest positive share moves, while governance and preferred dividend updates have produced muted or negative reactions.

Recent Company History

Over the past six months, Cadiz has steadily advanced financing for the Mojave Groundwater Bank. In September 2025, it announced a Memorandum of Understanding with federal and local entities to study the project. An October 27, 2025 agreement with Lytton Rancheria provided up to $51 million as the first tranche toward roughly $450 million in equity capital, followed by a Q3 2025 update highlighting progress on financing and operations. Today’s WIFIA loan invitation builds on that capital stack by adding potential low-interest federal debt alongside tribal and private equity funding.

Market Pulse Summary

This announcement highlights EPA’s selection of Cadiz’s Mojave Groundwater Bank – Northern Pipeline ...

Analysis

This announcement highlights EPA’s selection of Cadiz’s Mojave Groundwater Bank – Northern Pipeline Project to apply for a WIFIA loan of up to $194 million, adding prospective low-interest federal debt to an emerging capital stack that already includes an up to $51 million tribal tranche and plans for approximately $450 million in equity. Investors may track advancement through WIFIA underwriting, definitive agreements for up to $400 million of private equity, and progress on the 43‑mile Southern Pipeline, as well as permitting and construction milestones.

Key Terms

water infrastructure finance and innovation act, wifia, acre-feet

3 terms

water infrastructure finance and innovation act regulatory

"under the federal Water Infrastructure Finance and Innovation Act ("WIFIA") program."

A federal loan and credit-assistance program that helps cities, utilities and other borrowers pay for large water and wastewater projects by offering long-term, low-cost financing and credit support. For investors, it matters because it lowers the cost of capital for infrastructure projects, increases the likelihood projects get built and repaid, and can affect the creditworthiness and revenue stability of municipal borrowers, contractors and related securities — like giving a community a cheaper mortgage to upgrade essential pipes and treatment plants.

wifia regulatory

"has selected the Mojave Groundwater Bank – Northern Pipeline ("MGB–NPL") Project to submit an application for a low-interest loan of up to $194 million ... under the federal Water Infrastructure Finance and Innovation Act ("WIFIA") program."

A WIFIA loan is a long-term, low-cost financing program run by the U.S. government to help pay for large water and wastewater infrastructure projects, like pipes, treatment plants and stormwater systems. For investors, WIFIA matters because it reduces project financing costs and risk—similar to a subsidized mortgage for public works—making projects more likely to proceed on schedule and improving the credit profile of utilities or firms involved.

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. Not financial advice.

CADIZ, Calif., Feb. 17, 2026 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP, the "Company") today announced that the U.S. Environmental Protection Agency ("EPA") has selected the Mojave Groundwater Bank – Northern Pipeline ("MGB–NPL") Project to submit an application for a low-interest loan of up to $194 million to fund capital costs under the federal Water Infrastructure Finance and Innovation Act ("WIFIA") program. WIFIA, established by Congress in 2014, is a federal financing program designed to accelerate investment in nationally significant water and wastewater infrastructure projects.

EPA's selection means that EPA has administratively reserved $194 million for the Company's Northern Pipeline Project and has invited the Company to submit an application.  EPA will hold this funding in reserve while the Company advances an application through the WIFIA underwriting process.

"We appreciate EPA's selection of the Mojave Groundwater Bank to move forward in the WIFIA process," said Don Bunts, General Manager of Fenner Gap Mutual Water Company. "This selection is an important milestone for us as we finalize project financing and advance construction of the Mojave Groundwater Bank."

The Company expects to fund construction of all Project facilities with a combination of equity capital, government grant funding, municipal financing and low interest debt programs such as WIFIA. If approved, WIFIA's low-cost, long-term financing for the MGB–NPL Project will complement private equity and other funding sources being assembled to finance construction of the Mojave Groundwater Bank facilities which includes the Northern Pipeline and the planned 43-mile Southern Pipeline connection to the Colorado River Aqueduct.  The Company plans to seek additional WIFIA funding in a separate application for the Southern Pipeline and other parts of the project.  

"The public-private partnership business model is the best way to finance critical large-scale water infrastructure today," said Susan Kennedy, Chair and CEO of Cadiz. "It takes creative investment structures that leverage both public and private funding to build major infrastructure and lower costs for ratepayers." 

In November, Lytton Rancheria of California, a federally recognized Native American tribe, entered into an agreement to provide up to $51 million as the first tranche of up to approximately $450 million in total equity capital being raised for construction and development of the Mojave Groundwater Bank. The investment is convertible into Mojave Water Infrastructure Company LLC ("MWI"), the special-purpose entity formed by Cadiz to construct, own, and operate the Project.

With water supply agreements executed for the Northern Pipeline, the Company initiated construction financing activities last year. The Company is in due diligence with private equity investors to provide up to $400 million of private equity in MWI and is completing key permitting, engineering, procurement and construction milestones while working toward execution of a definitive agreement.

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, expectations regarding project financing activities, including but not limited to access to funding under the WFIA loan program, and the use and conversion of loan proceeds from the Lytton Rancheria investment into equity of MWI; anticipated terms, timing and structure of additional capital raises for 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, 2024 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/cadiz-mojave-groundwater-bank-northern-pipeline-project-selected-to-submit-application-for-194-million-wifia-loan-302689591.html

SOURCE Cadiz, Inc.

FAQ

What does the EPA WIFIA selection mean for Cadiz (CDZI) on Feb 17, 2026?

It means the EPA administratively reserved $194 million for the project's WIFIA loan and invited an application. According to the company, this reservation holds funds while Cadiz advances the WIFIA underwriting and submits a formal loan application.

How much equity has Cadiz (CDZI) secured for the Mojave Groundwater Bank construction?

Cadiz has a committed $51 million first tranche from Lytton Rancheria toward ~$450 million equity being raised. According to the company, additional private equity due diligence targets up to $400 million for the project vehicle MWI.

What financing mix will Cadiz (CDZI) use to build the Mojave Groundwater Bank?

Cadiz plans to combine equity capital, government grants, municipal financing and low-cost debt like WIFIA. According to the company, WIFIA would complement private equity and other funding sources for construction.

What water capacity and storage does the Mojave Groundwater Bank offer according to Cadiz?

The bank holds an estimated 30 million acre-feet and is approved to provide up to 75,000 acre-feet per year of reliable supply. According to the company, it also offers one million acre-feet of imported water storage capacity.

Will Cadiz (CDZI) seek additional WIFIA funding beyond the Northern Pipeline?

Yes. Cadiz plans separate WIFIA applications for the Southern Pipeline and other project parts. According to the company, the Southern Pipeline connects 43 miles to the Colorado River Aqueduct and is part of overall financing plans.