Pure Cycle Corp (NASDAQ:PCYO) Q2 2019 Earnings Conference Call - Final Transcript
Apr 08, 2019 • 01:00 pm ET
Mark W. Harding
Plan Community, so that will describe about our land development segment and we're developing land for lots, we will develop single family and multi-family and commercial retail lots for developers and users of that. And so we have a lot to talk about on the development side. We have a small portfolio that's generating some oil and gas royalties and then we provide industrial water to oil and gas in and around our service area. So those are kind of where the shareholder value comes in from all the various assets.
We'll briefly describe of water utility, we're sort of cradle the raise on water utilities where we own the water rights, we develop those water supplies both in terms of our surface water supplies as well as our groundwater supplies, we treat those supplies, we put them into a distribution system and then we collect that water back as that turns into wastewater, we retreat that wastewater and put that back into a separate distribution system, so we have a domestic system and an irrigation system that provides water to our customers in that.
You move to -- let me stay on the slide four for those who are new to the Company. This is a little bit more detail on what it is that we have and how we really generate the revenue from our utility business. We have that 27,000 acre feet of water; 60,000 connections of water service capacity.
If you take a look at our tap fees, our current water tap fees are $26,640. Our sewer tap fees are $4,600, if you take a look at that map, over 60,000 connections that's a top line revenue of about $1.8 billion. We generate about $1,500 per connection per year, so about a $1,000 per connection on the water side, about $500 per connection on the sewer side. So that buildout that's about $90 million once we're serving that 27,000 acre feet into our system. We currently serve a modest amount of that today, we serve about 400 water connections, about 160 sewer connections.
Moving to our next slide, slide five, little bit about our Master Planned Community and our development activities. We've got about a 1,000 acres of property, which is in the right location. It's in the I-70 corridor here in the Denver metropolitan area, most of the new investment activity in the metropolitan Denver area is being concentrated on the I-70 corridor. We have a geologic barrier on our west, so we can't grow much left on the west side of town, so most of the activity has been growing north, south and I think the highest concentration really for the foreseeable future is going to be along the I-70 corridor, so it's going really concentrate the activity. What we try describe here is a little bit of the statistics on how our land development segment works? Some of the top line revenue both in land development segments and the crossover in that --