Market Insight

06/26/2019 WestWater Research Welcomes 2019 Summer Associates

WestWater Research is pleased to introduce our 2019 Summer Associates, Bryan David and Colton Richard. Bryan David – University of North Carolina & Duke University Bryan David is completing a dual-degree program at the University of North Carolina’s Kenan-Flagler Business... Read More 

WestWater Research is pleased to introduce our 2019 Summer Associates, Bryan David and Colton Richard.

Bryan David – University of North Carolina & Duke University

Bryan David is completing a dual-degree program at the University of North Carolina’s Kenan-Flagler Business School and Duke’s Nicholas School of the Environment. There, he focuses on how financial tools and techniques can be applied toward sustainable outcomes. Previously, he worked for the Land Trust Alliance in Washington, DC where he advocated for federal tax incentives for land conservation and Farm Bill agricultural funding programs. Additionally, he worked for Natural Resources Defense Council, researching how pay-for-success and public-private-partnerships can improve local environmental and economic outcomes. He holds a Bachelor of Arts in Environmental Studies and History from Brown University. He enjoys fly-fishing, camping, and biking.

As a native Californian, Bryan understands the value of improving water efficiency and modernizing water policy. At WestWater, he will assist with client projects and conduct original research and financial modeling to deepen his understanding of water management in the western United States.

“I’m excited to join WestWater this summer and contribute to their innovative work in using market forces to improve water efficiency and add value to clients.”

Bryan will spend the summer in WestWater’s Phoenix Arizona office and will graduate next spring with an MBA from the University of North Carolina and a Master of Environmental Management from Duke University’s Nicholas School of the Environment.

Colton Richard – University of Colorado Boulder

Colton Richard is entering his final year at the University of Colorado Boulder and will complete his Master of Business Administration through the Leeds School of Business in 2020. In addition to his MBA, he will also complete a graduate certificate in Water Engineering and Management through the University’s College of Engineering and Applied Science. With a concentration on Finance and Water Resources, Mr. Richard brings valuable experience in Natural Resource Economics, Finance, and Water Resources.

Colton holds a dual degree in Economics and Environmental Studies from the University of Colorado Boulder where his passion for water resources was academically cultivated. As an outdoor enthusiast who has spent his life fishing year-round in the Western United States, he understands the serious supply and demand challenges of water resources that the West is currently facing.

This summer at WestWater, Colton will utilize both analytical skills and academic knowledge to assist the firm with client projects and research; gaining a deeper understanding of water policy and economics in the Western United States.

“During my time at WestWater, I hope to build upon and grow my knowledge of water resources, while leveraging the analytical skills I have developed to create a positive impact in the water profession.”

Upon completion of his internship in WestWater’s Fort Collins Colorado office, Colton will return to the University of Colorado Boulder where he will graduate in the spring with his MBA.

WestWater’s internship program is a competitive position which provides the opportunity for qualified graduate and undergraduate students to gain research and analytical experience and further develop their knowledge of the ever-expanding water market.

Clay Landry, WestWater’s Managing Director, said, “We are fortunate to have Bryan and Colton join the WestWater team this summer, and we look forward to working with each of them to advance their academic and professional careers in the water rights industry.”

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06/18/2019 Q2 2019 Water Market Insider: Premium for Buying Water

Capitalization rates, or “cap rates”, are a commonly used metric in evaluating real asset investments, such as farmland and real estate. Investors pay close attention to cap rates to understand the potential for annual revenue relative to the investment cost.... Read More 

Capitalization rates, or “cap rates”, are a commonly used metric in evaluating real asset investments, such as farmland and real estate. Investors pay close attention to cap rates to understand the potential for annual revenue relative to the investment cost.

The most recent issue of the Water Market Insider defines and discusses the role of cap rates in purchasing water rights assets.

Read the full issue here

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05/23/2019 Low snowpack, hot spring lead to drought declaration for nearly half of Washington state

On May 20th, Washington Gov. Jay Inslee declared drought for nearly half of Washington watersheds, as the mountain snowpack that churns through hydropower dams, irrigates our state’s orchards and provides for fish continues to dwindle well below normal. Read the... Read More 

On May 20th, Washington Gov. Jay Inslee declared drought for nearly half of Washington watersheds, as the mountain snowpack that churns through hydropower dams, irrigates our state’s orchards and provides for fish continues to dwindle well below normal. Read the full story here.

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05/21/2019 States sign short-term Colorado River drought plan, but global warming looms over long-term solutions

The Colorado River just got a boost that’s likely to prevent its depleted reservoirs from bottoming out, at least for the next several years.  Representatives of seven Western states and the federal government signed a landmark deal on Monday laying... Read More 

The Colorado River just got a boost that’s likely to prevent its depleted reservoirs from bottoming out, at least for the next several years. 

Representatives of seven Western states and the federal government signed a landmark deal on Monday laying out potential cuts in water deliveries through 2026 to reduce the risks of the river’s reservoirs hitting critically low levels. Read more here.

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05/02/2019 Front Range housing boom sends water prices soaring

Regional Director Brett Bovee recently spoke at the annual meeting of the American Water Resources Association Colorado chapter in Golden and offered critical insight into how the recent housing boom has affected water prices on the Front Range. Mr. Bovee... Read More 

Regional Director Brett Bovee recently spoke at the annual meeting of the American Water Resources Association Colorado chapter in Golden and offered critical insight into how the recent housing boom has affected water prices on the Front Range.

Mr. Bovee leads WestWater’s Fort Collins, Colorado office and performs a variety of studies focused on water valuation, comprehensive water planning, irrigated agriculture, scenario modeling, and water project feasibility

Click here for the full story

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02/13/2019 2019 Summer Associate Opportunity

WestWater Research is currently seeking qualified graduate students for our 2019 Graduate Summer Associate Position.  This position provides exposure and applied experience in water resource valuation, financial modeling, and water market transactions and research and is an opportunity to spend three... Read More 

WestWater Research is currently seeking qualified graduate students for our 2019 Graduate Summer Associate Position. 

This position provides exposure and applied experience in water resource valuation, financial modeling, and water market transactions and research and is an opportunity to spend three months with leading experts in the sector. WestWater has a tradition of hiring interns upon graduation and is actively seeking an early stage professional interested in developing a career with the company. 

The Summer Associate position is competitive and based on applicant’s qualifications, ability to communicate information and concepts, and follow instructions and processes. 

Complete application packages are due by April 19, 2019

For a detailed position description and application instructions, please review the link below.  

2019 Graduate Summer Associate

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01/24/2019 WestWater Research Becomes Exclusive Data Provider for Nasdaq Water Pricing Index

Nasdaq Veles California Water Index tracks the price of water based on representative markets BOISE, Idaho — WestWater Research along with Nasdaq (Nasdaq: NDAQ), and Veles Water, announced the launch of the Nasdaq Veles California Water Index (NQH2O), the first... Read More 

Nasdaq Veles California Water Index tracks the price of water based on representative markets

BOISE, Idaho — WestWater Research along with Nasdaq (Nasdaq: NDAQ), and Veles Water, announced the launch of the Nasdaq Veles California Water Index (NQH2O), the first of its kind water index that benchmarks the price of water in a way that supports price discovery and enables the creation of a tradable financial instrument. WestWater Research is the exclusive data provider for the index.

While existing water indexes track companies active in the extraction and delivery of water, the Nasdaq Veles California Water Index sets a weekly rate for the price of water in California. The index is calculated weekly, using a proprietary water index methodology developed by Nasdaq and Veles Water. Water pricing information is sourced from Waterlitix™ – a pricing and market information database developed and maintained by WestWater Research.

Key Points on the Nasdaq Veles California Water Index

  • Value is based on the volume-weighted average of the prevailing prices in five specific California water markets
  • Prices adjusted for market-specific pricing factors specific to each of the eligible markets and transactions
  • Pricing algorithm provides a benchmark price for water transactions across California.

“The Nasdaq Veles California Water Index is the first published price index that measures water resource scarcity,” said Clay Landry, Managing Director, WestWater Research. “Having this index is a great step forward for public markets and for using the power of the marketplace to better understand water as a commodity.”

 “Water is our most important commodity, and until now, there were no financial risk management instruments available in the global financial markets. We see the Nasdaq Veles California Water Index as an important first step to understanding water as a commodity, which means a more transparent and accessible marketplace for all,” said Lance Coogan, CEO of Veles Water. “Our collaboration with Nasdaq and WestWater Research will yield meaningful results for the entire financial ecosystem.”

Dave Gedeon, Vice President and Head of Research and Product Development for Nasdaq’s Global Indexes, added, “This index will bring transparency to this market and help drive a better outcome for water market participants through verifiable price discovery. The Nasdaq Veles California Water Index can bring dramatic change to the way we quantify and value an important resource.”

For more information on the Nasdaq Veles California Water Index (NQH2O), please visit https://indexes.nasdaqomx.com/Index/Overview/NQH2O.

About WestWater Research:

WestWater Research (WestWater) is the leading economic and financial consulting firm specializing in water rights and water resource acquisition and development throughout the United States. With a national practice, WestWater provides transaction advisory, market intelligence, and asset management services relating to water resources. The firm has advised on over $800 million in water transactions that include several creative public-private partnerships that have been recognized as “Global Water Deal of the Year.” To learn more, visit www.waterexchange.com.

About Nasdaq: 

Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information, and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 100 marketplaces in 50 countries, and 1 in 10 of the world’s securities transactions. Nasdaq is home to over 4,000 total listings with a market value of approximately $15 trillion. To learn more, visit https://business.nasdaq.com.

About Veles Water:

Veles is a water pricing specialist, involved primarily in water valuation methodologies. The company specializes in the conceptualization, creation, and development of bespoke financial instruments, whose unique pricing formulae contribute to bringing transparency and liquidity to the global water market. To learn more, visit www.veleswater.com.

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06/20/2018 New Faces at WestWater Research

As the water market continues to grow in the west, WestWater has expanded our team of professionals, and we are pleased to introduce new colleagues in our Arizona and Colorado locations. Walraven Ketellapper has joined WestWater Research as an Outside... Read More 

As the water market continues to grow in the west, WestWater has expanded our team of professionals, and we are pleased to introduce new colleagues in our Arizona and Colorado locations.

Walraven Ketellapper has joined WestWater Research as an Outside Operating Advisor, providing strategic advice on water acquisition, deal origination and water rights due diligence.

Walraven is highly regarded in the water transaction profession and joins us after a successful career of over 40 years of executing complex water transactions. He is one of the rare few who have successfully invested private capital in water rights. Located in Boulder, Colorado, Walraven has decided to wind down his water transaction business but wanted to maintain his market influence through his relationship with WestWater.

 

Audrey Arnao completed her 2017 Summer Associate internship with WestWater and has recently accepted a full-time position as the firm’s newest Research Analyst.

In 2018, Audrey received her Bachelor of Science in Economics from Barrett, The Honors College at Arizona State University where she completed her honors thesis on the effects of water right heterogeneity on California water market prices. She is based in our Phoenix office and will be covering market and price trends in Arizona and southern California.

 

Summer Associates

WestWater’s Summer Associate program is a three-month internship open to qualified graduate and undergraduate students who have an interest in studying Resource or Agricultural Economics, Economics, Finance, Business, or a related field. The program is an ideal opportunity for those who are seeking professional experience in water rights marketing, water asset valuation, water project consulting, and water resource investments. This year we are pleased to announce our Summer Associates in  Phoenix, and Fort Collins.

Beau Burns is a senior at Colorado College pursuing a degree in Mathematical Economics. Beau will spend the summer in WestWater’s Phoenix, Arizona office researching the Sustainable Groundwater Management Act (SGMA) in California and will incorporate his research into his senior thesis.

 

Andrew Cortrite Andrew Cortrite is entering his final year at the University of Colorado Boulder and will complete his Master of Business Administration in 2018 with a concentration in Finance and Sustainability through the Leeds School of Business. Andrew will be conducting financial modeling of alternative water transfers in Colorado and will assist in the facilitation of the 2018 Tribal Water Summit in November.

Bill Mennell recently completed his Master of Business Administration at The University of Arizona, Eller College of Management. Bill will be based in the Phoenix office and will be focused on financial modeling for strategic water investment opportunities.

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12/01/2017 Water Market Insider: Water Markets in the Ogallala Aquifer

The Ogallala Aquifer is one of the largest groundwater basins in the United States, underlying eight states and supplying over 30% of the groundwater used for irrigation in the entire United States. Roughly $7 billion worth of crops are grown... Read More 

The Ogallala Aquifer is one of the largest groundwater basins in the United States, underlying eight states and supplying over 30% of the groundwater used for irrigation in the entire United States. Roughly $7 billion worth of crops are grown each year with groundwater supplied by the aquifer. The Ogallala Aquifer is quite stratified, both in terms of groundwater available and in how states are managing the resource. Since pre-development (1950), the Aquifer has seen about 270 million acre-feet of overdraft, which represents a 9% decline in total groundwater storage. Physical and institutional water scarcity are often catalysts for water market development, and so WestWater spent time this summer examining water trades in the Ogallala Aquifer in Colorado, Kansas, Nebraska, New Mexico, and Texas. Read more about our findings in the most recent Water Market Insider.

Read the full issue here

 

 

 

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08/02/2017 Q2 2017 Water Market Insider: New Water from Old Power

The U.S. has seen several coal power plant closures in recent years with many more on the way in the next 10 years. Coal power generation is considered to be relatively inexpensive, but it does demand a large amount of... Read More 

The U.S. has seen several coal power plant closures in recent years with many more on the way in the next 10 years. Coal power generation is considered to be relatively inexpensive, but it does demand a large amount of water compared to natural gas plants and renewable energy sources such as wind and PV solar. The closure or conversion of many coal plants in the Western U.S. means that a new source of water could be on the market in the next decade, as the energy companies reduce their need for water. These changes in coal plants are estimated to result in about 84,000 acre-feet per year of reduced water demand in the Western U.S. with a market value of roughly $300 million.  In the current issue of the Water Market Insider, WestWater discusses the impact on water demands as coal production decreases.

Read the full edition here

 

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