And for OSB, every $10 change in realizations is approximately $8 million of EBITDA on a quarterly basis. I woud like to find new places to hunt grouse that consistently produce and are less crowded. Weyerhaeuser has posted information about significant changes to its largely unpopular fee access system for the region. Weyerhaeuser planned to test the Boiler during the week of June 20, 2020 for filterable particulate matter (PM), hydrogen chloride, mercury, and carbon monoxide, as required under Montana Operating Permit (Operating Permit… Thank you, Rob. This was just a tough year. In Weyerhaeuser, the “deep state” acted in a repugnant way. George, I'll take that. Sales volumes for solid section and I-joist products increased by 21% and unit manufacturing cost improved slightly. In China, average realizations were flat with the second quarter, and demand was solid. Heaters, West Virginia . We used a significant portion of this cash to strengthen our balance sheet by redeeming some of our 2023 debt maturities. Can you give us a bit more detail in terms of why you're selling one portion and buying another recognizing the deal hasn't closed and we might be limited in terms of what you can share there? So, if memory serves, I had to step away from my desk, you took an $80 million write-off for the Oregon fires. We ended the quarter with approximately $6 billion of total debt outstanding and strong liquidity, including the cash balance of $787 million and the full $1.5 billion capacity available on our revolver. I will begin by highlighting our third quarter results and then turn my focus to the dividend reinitiation. I don't think it's big enough to matter. In Japan, demand for our logs were soft early in the quarter due to continued slow housing activity and incremental effects of the COVID-19 pandemic. We actively monitor all inquiries received through this feature and route them to the person best equipped to provide you a quick response. October 2017 We had stepped those up at the time of the merger. And then, likewise, when you talk about it being $50 lower currently, is that based off where the random print was two or three weeks ago or is that based on where the random print is today? And finally, I'm in Oregon, so I can attest to this how windy it was and how extreme the weather was. And as we look to set that, we looked at the cash flow generation of each of our businesses across a variety of pricing scenarios, historical cash flows from the businesses, we looked at our Company level FAD over the last several years, and also modeled out FAD under a number of different market and pricing scenarios. We've done some portfolio moves over the last few years as well. But from a gross debt perspective, I think we're in the ballpark of where we want to be with the actions we've taken this year and then the $150 million that we have earmarked for the 2021 maturity, that gets you in the neighborhood of $5.3 billion of gross debt, and I think that gives us adequate flexibility really through all parts of the market cycle to stay right around that 3.5 times net debt-to-EBITDA. Okay. So just, I guess, a little context for the lag that you see in realizations and I'll be specific to lumber, although it's a similar dynamic in OSB, but just different supply demand dynamics. Just maybe longer-term bigger picture, I think we agree with you, certainly on the potential runway for the housing recovery and the single-family housing shortage that in all the demographic factors that go into that equation, and of course, the demand for lumber capacity is going to likely continue to increase. Average log sales realizations will be slightly lower than the third quarter due to mix. Yeah. The company that purchased 630,000 acres of Weyerhaeuser timberlands in Montana said it fully intends to keep the property in the state’s block management program, ... 2020 12:51 PM. And also, whether you are running at capacity? This exceeds the previous record EBITDA attained in 2018 by almost 60%. Just wondering if that's an area of interest to be able to expand that side of the business. Thank you, Ms. Baum. And I'm just recalling, I think, Devin, that back in '18 when you made the last dividend raise that actually the percent of kind of cross-cycle FAD you'd raised up to 85%. By. In our Timberlands business, fourth quarter adjusted EBITDA is expected to increase by approximately $20 million, compared to the third quarter. How are you doing? Demand improved as the quarter progressed as Japan housing activity improved modestly and US log availability was reduced by strong domestic lumber markets in Western fire activity. Would you make the judgment call to pay out less or should we think of this as just kind of a mechanical payout that we should expect to get paid out regardless of market conditions? Devin W. Stockfish -- President and Chief Executive Officer. Please proceed with your question. The framing lumber composite has retreated from its late September peak but remains above the record levels of 2018. Good morning, Devin. In September, we entered into an agreement to sell 149,000 acres of Southern Oregon Timberlands for $385 million and a separate agreement to purchase 85,000 acres of mid-coastal Oregon Timberlands for $426 million. So, I think we are optimistic that over time that will improve. Returns as of 12/20/2020. Fee harvest volumes declined by 5% compared with the second quarter as we continued to implement the previously announced 10% reduction in full-year Southern harvest volumes. Okay. We have done, I think a remarkable job over the last four or five years with our capex in the Wood Products business. Davidson. I'll begin with our key financial items, which are summarized on Page 17. We are also adjusting our dividend framework to ensure that the dividend and our overall approach for returning cash to shareholders are both sustainable and appropriate for the Company's portfolio and the cash flow that we generate from our businesses across market cycles. Anthony Pettinari -- Citigroup -- Analyst. I hope everyone is well and staying healthy. This Permit is valid from August 1, 2019 to July 2 3, 2020, unless terminated Visit the Southwest Clean Air Agency website or call 360-574-3058 for more information. And as we think about the ways in which we're going to be returning cash to shareholders, obviously, as we said, we're going to lean toward the supplemental dividend as the primary vehicle over and above the base. You may begin. However, we are increasingly confident that the recent strength in US housing and the repair and remodel segment will continue, notwithstanding ongoing macroeconomic headwinds. 007-00016. So this is just shipments for lumber and OSB over the last seven quarters, it's pretty much flat. Although, the US South experienced multiple hurricanes and tropical storms during the quarter, we incurred very minimal damage and lost almost no production days as we redeployed harvest crews to alternative parcels. Thank you. George Staphos -- Bank of America -- Analyst. Wood Products, Pages 11 and 12. Cumulative Growth of a $10,000 Investment in Stock Advisor, Weyerhaeuser Co (WY) Q3 2020 Earnings Call Transcript @themotleyfool #stocks $WY. Trips sponsored by organizations or commercial groups must contact the permit office before applying for a Mt. I wanted to go back to the dividend for a quick follow-up, maybe you -- maybe I missed this early in the discussion. Earlier this week, we submitted notice that we will be redeeming in mid-December, our $500 million, 4.625% notes due September 2023. But generally speaking, the inventories in the channel are pretty lean across the board. By Michael Cozzi    |   This has resulted in improved pricing during the month of October. They'll be cash-accretive, very strong cash accretion. For our Wood Products segment, new residential construction activity remains strong and our builder and dealer customers are optimistic moving into the winter months. Demand for Lumber Is Surging. In the South, we expect higher forestry expenditures in the fourth quarter as we complete work that was deferred during the third quarter hurricane -- due to the third quarter hurricane activity. Sutton OSB Facility . And I'm just curious in terms of any flexibility there. SEATTLE, March 26, 2020 / PRNewswire / -- Weyerhaeuser Company (NYSE: WY) today announced the completion of the sale of its 630,000 acres of Montana timberlands to Southern Pine Plantations for approximately $145 million in cash. Devin, we've been hearing about labor availability as the homebuilding challenge for several years now and yet housing activity seems to be constrained by other stuff and we haven't really seen a big change in construction approaches, which come slowly anyway. Sure. And/or would you need to -- or would you consider additional acquisition opportunities if there are any out there to increase your manufacturing capacity? You've seen the OSB pricing hold up a little better. Need to Know. And our outlook on the near-term business climate has improved markedly since late spring. And really the idea was to set the base quarterly dividend at a level that is both sustainable and supportable from our cash flow, even in a challenged market condition. The non-cash charge we recorded in the quarter represents the estimated book value of the timber and related assets that cannot be salvaged based on information available at this time. Can you share some thoughts with us on that? Our leverage ratio now sits comfortably below our target of 3.5 times net debt-to-adjusted EBITDA over the cycle. News and Updates. Western Timberlands EBITDA decreased by $1 million compared with the second quarter. Let's conquer your financial goals together...faster. OSB also very lean, a little bit different dynamic there. Hey, just a couple of questions in Wood Products there, Devin. You mentioned in lumber, up $15 quarter-to-date and then up $140 for OSB. Yeah, sure. In short, one can say they really want to have their cake (that is, have as much power as possible) and eat it too (by not paying you).”, The main takeaway from Weyerhaeuser is that, according to the author, “it forces the government to be much more specific and tailored in its regulatory decision-making and prompting administrative oversight into clearly defining what is and is not a ‘habitat.’. I will now turn the call over to Devin Stockfish. THIS IS A UNIQUE OPPORTUNITY TO START OR GROW YOUR BUSINESS IN THE EVERETT WATERFRONT’S ICONIC STRUCTURE Moving to the export markets. One thing I want to go back to, I think it was Slide 10 you had the realizations on the price per acre that you're seeing within Real Estate and Energy and Natural Resources. Accordingly, we are reinitiating a quarterly cash dividend. I appreciate that. I'll wrap up with a few additional outlook items highlighted on Page 20. So, it was very dry. We remain firmly committed to returning cash to shareholders as part of our balanced capital allocation philosophy. 334 0 obj >stream No Access permit is required on Weyerhaeuser parcels listed for these access sites; however, users cannot trespass through Weyerhaeuser properties that are NOT enrolled in this program to access these parcels. The gain will be reported as a special item in our Timberlands business. Even with the increased price, the 2015 and 2016 Weyerhaeuser access permit sales were over in a matter of minutes due to extremely high demand, similiar to what happened in 2013 and 2014. It's something that we see in the West every year. And I think the benefit of this dividend framework is that, we're going to be in a position to payout 75% to 80% of FAD really across all different market cycles. I don't know, in the near-term, we're really looking to get into manufacturing CLT. 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