Sure. In lumber, adjusted EBITDA was $260 million higher than the second quarter, as a 54% increase in average sales realizations was slightly offset by higher Western log costs. And even then, ... Dec 26 2020 – Jan 10 2021 all-day. We've been primarily focused during that time on cost reduction. More often than not, the Supreme Court gets reported on for the controversial 5-4 decisions that portray the Court as a deeply divided institution along political lines. No walk up service. Please proceed with your question. Update 5/21/2020 - there will be 58 Motorized permits and 16 Motorized Premium Permits available tonight at 6 PM. So I'm wondering, with your experience in trusses [Phonetic] manufacturing and all that, are you seeing any signs that the market is preparing to shift or trying to shift to more prefab or something else to reduce labor content? Permittee agrees that the Permit may not be sold, gifted, or transferred in any way to any other party. EWP, similar story. Frederick Weyerhaeuser, our company's founder, once said, "This is not for us, nor for our children, but for our grandchildren." Yeah. Let's conquer your financial goals together...faster. So, we are in touch with the manufacturers of CLT. We're certainly in discussions with all of our partners on how we can help them. Page 13 outlines the major components of our unallocated items. And so, there's just not a whole lot of extra inventory in the system. I do think, as we look out over the longer-term, obviously, we've seen a fair amount of sawmill capacity coming into the South over the last several years, call it, 5.5 billion, 6 billion board feet of new capacity. You mentioned in lumber, up $15 quarter-to-date and then up $140 for OSB. The charge recorded in the third quarter was primarily driven by higher unit costs for log and lumber inventories across our businesses. Visitor centers are issuing all permits by phone and email for the 2020 season. June XX, 2020 Draft permit review forwarded to Permittee for comments. Yeah. Yeah. Yeah. Southern Timberlands adjusted EBITDA decreased $8 million compared with the second quarter. I'm just wondering if you saw underlying kind of apples to apples price improvement in any regions of the South, especially with these saw mills running full out. See you at the top! We've allocated over $1 billion to debt reduction, which has been a significant percentage of our overall 2020 cash flow, which is the $400 million that we've reduced gross debt year-to-date. If that stays down, how meaningful will that be assuming more normal lumber prices? Cash from operations during the third quarter was $608 million, our highest operating cash flow since the fourth quarter of 2006. Good morning. Well, you know, George, you don't really see much in the way of substitution between Southern yellow pine and Doug fir and that's generally just the builders have preferences with an individual species and they generally stick with that. And I just -- I'd like to get your thoughts on that issue. 6/1/2020: Permit Documents. Returns as of 12/20/2020. We anticipate land basis as a percentage of real estate sales will be approximately 50% for the fourth quarter and approximately 70% for the full-year. Okay. One last very quick clarification. Luke Thies . 2020 recreational permit packets have started going out in the mail. Weyerhaeuser owns a significant amount of land in District 10. I will now turn it over to Russell to discuss financial items and our fourth quarter outlook. Heaters, West Virginia . And then just on mass timber and it is part of what Mark was asking around, but there has been a lot of activity there and this is an area that's growing straight line with your sustainability goals. And good luck in the quarter. So, just a little context around that. And then the other, just piece of color there is, we did see a number of our pulp log customers defer maintenance earlier in the year when the markets were a little stronger and a lot of that ran through Q3. Yeah. However, our sales volumes to China decreased significantly as we flexed volume to more profitable domestic opportunities. I guess, first, when we think about the cash flow that we generated from 2020, clearly, we have prioritized debt reduction with the cash flow that we've generated this year. Our next question comes from Steve Chercover with D.A. ... of the land accessible to the hunting community in Lewis County is owned by Weyerhauser and it is only available for a permit or lease fee. All right. If that land is not set aside to protect that species, then that land will be covered to conserve which would get a species away from being endangered.”. Channel inventories remained generally lean with buyers limiting purchases to immediate needs. George Staphos -- Bank of America -- Analyst. When you look at what we're selling in our Southern operations, I would say that those were -- they're good timberlands, but they were not as strategic or as strategically located as the timberlands we're acquiring. And last, we now expect total capex for 2020 will be approximately $280 million. And then just, we're finally back to 1.4 million housing starts and you indicated your Southern sawlog prices ticked up in the quarter, I think, commercial and merchandising activities. These priorities include value enhancing growth opportunities, liability management and opportunistic share repurchase. By Michael Cozzi |
It forces the government to show its cards and not hide behind vague statutes and interpretations.” Although such a victory occurred in the third branch of the federal government, this is but one more instance where “the Swamp” has begun to circle the drain. But ultimately, log prices are going to be based on the supply demand dynamic in that individual wood basket. Some time after that, they then thought that they need to protect land elsewhere in the case of a cataclysmic event that it would have to be relocated somewhere else. So, in lumber, generally, you're going to be pricing one to three weeks prior to shipment, which -- that's the lag effect that you see between the print and the delivered realizations. But what I would say is, at a high-level, at least based on our early work in the salvage operations, we think we're going to be able to capture the vast majority of value on our merchantable timber. Turning now to our third quarter business results, starting with Timberlands on Pages 6 through 8 of our earnings slide. I mean, if we think about share repurchase programs in cyclical businesses, they've been devilishly hard to pull off well. Paul Quinn -- RBC Capital Markets -- Analyst. In Northern Timberlands, adjusted EBITDA improved by $1 million compared with the second quarter due to seasonally higher harvest volumes as we exited spring breakup. 6/1/2020: Permit Documents. On the call this morning are Devin Stockfish, Chief Executive Officer; and Russell Hagen, Chief Financial Officer. However, it is in the unanimous decisions in which the Court’s wisdom is on full display. Any thoughts on that? And I think overall, it definitely improves the overall profile of our Western Oregon Timberlands. Looking forward, we remained focused on industry-leading performance and discipline, prudent capital allocation to sustainably grow our base dividend and drive superior long-term value for shareholders. Including our $23 million special item related to the early extinguishment of debt, third quarter interest expense was $111 million. Any thoughts on that would be helpful? Results from Energy and Natural Resources were slightly higher than the second quarter due to seasonally higher production of construction materials. So, I think, generally speaking, it's going to be similar each month over that Q4 period. As a practical matter, there is really no economically feasible way to buy insurance on significant acreage of timberland. Excluding the effects of changes in average sales realizations, we expect fourth quarter results will be significantly lower than the third quarter. The framing lumber composite has retreated from its late September peak but remains above the record levels of 2018. Evergreen Facility . Just a question on the supplemental dividend. What I would say is, when you think about each individual acre, they were impacted depending on topography, age class, the rate of spread, species. We're really excited about the momentum we're seeing around cross-laminated timber, mass timber, it's certainly something that has gotten people excited across the board and we're seeing that move, frankly, faster than we had anticipated. I would say that in '20 --. It presents the spectator with yet another exhibition of how the might of the American federal bureaucracy quashes the concerns of individuals as little more than lesser mitigating factors around a new administrative rule. True to form, in 2015 and 2016, the price of Weyerhaeuser access permits for the Vail tree farm increased yet again to $250 and $300 respectively. Clearly, there remains room for caution, especially as it pertains to US unemployment, the outlook for additional government stimulus, and the risk of further COVID-19-related disruptions as we approach the winter months. 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.’. But certainly, that's something that is top of mind for us, and it's going to be something in Russell's new role that he will be even more focused on going forward. Third quarter included a $9 million non-cash charge from elimination of inter-segment profit in inventory and LIFO in the third quarter, compared to an $18 million benefit in the second quarter. We will have reduced our total debt by nearly $900 million since 2019 year-end. Thanks, Devin, and good morning. 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… Weyerhaeuser has posted information about significant changes to its largely unpopular fee access system for the region. Let me now turn to capital allocation and the reinitiation of our quarterly dividend, Pages 14 to 16. We are committed to returning a meaningful portion of our resultant cash flow back to shareholders, and our new dividend framework positions us to deliver on our commitment in a way that is sustainable and appropriate across market cycles. I don't know that we're at a point where it's really starting to make a meaningful difference yet. We are reinitiating this quarterly cash dividend at $0.17 per share. Good morning, everybody. A lot of those guys that bought (the Weyerhaeuser permits) put in for special tags, so they needed the $150 permits. And also, whether you are running at capacity? This is $10 million more than our prior guidance reflecting a few additional high-return capital projects in Wood Products, slightly lower Timberlands capex due to the third quarter fires and severe weather. Mark Connelly -- Stephens Inc. -- Analyst. So, this is something I think is really -- it's a great opportunity for us and we'll continue to look at that. We've even seen a few new ones announced here just of late. Real Estate, Energy and Natural Resources, Pages 9 and 10. Thanks, Beth. All right. 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. This is 93% higher than the second quarter and over 140% higher than a year ago. So they're really looking at that across the board, because it does still remain a challenge, I think, to get to you, what would otherwise be full building. So quarter-to-date average realizations are $15 higher than the third quarter, is that about a third of the volumes that you'd expect to sell in the quarter that that $15 higher would apply to or is it 40%? So, I'm curious is that going lead you to think about shifting harvest cycles or marketing programs. And so, our expectation is that, over time, we'll continue to see more converting capacity come in and with each new mill that comes in, that has a tensioning effect in that particular wood basket. I mean, that's generally going to be the approach with the dividend framework to do that annually. We will apply this new supplemental dividend framework to our 2021 results and accordingly, we currently expect the first supplemental dividend will be paid in the first quarter of 2022 based on full-year 2021 adjusted FAD. This review has taken into account a number of considerations, including our market conditions, the broader macroeconomic environment, the desire for dividend framework that will drive long-term shareholder value across market cycles. (Michael Cozzi is a Ph.d candidate at Catholic University). are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc. More often than not, the Supreme Court gets reported on for the controversial 5-4 decisions that portray the Court as a deeply divided institution along political lines... Senate Majority Leader Mitch McConnell says Congress has reached an agreement on a COVID-19 relief bill. Fee harvest volumes should be comparable to the third quarter. Trips sponsored by organizations or commercial groups must contact the permit office before applying for a Mt. We expect our full-year cash taxes will be lower than the overall tax expense, as we defer some payments into early 2021. . What's the -- what was the thought process in going that much further out with the supplemental? Sutton OSB Facility . At Weyerhaeuser, we are proud to connect people with access to everything nature has to offer. Demand for Lumber Is Surging. Some segments, whether it's containerboard, boxboard, those kinds of markets, those have done OK. Printing paper, obviously, in a COVID environment has been somewhat challenged. Need to Know. Super. So, if memory serves, I had to step away from my desk, you took an $80 million write-off for the Oregon fires. I would say a couple of other comments there, going into fourth quarter for whatever it's worth, I think the log decks for most of the pulp and paper manufacturers are pretty light relative to normal. Okay. The $500 million we're paying down in Q4, another $150 million we've got earmarked for 2021. Yeah. Is the absolute level of debt at the level where you would want it to be? There's certainly lots of talk about that and I think there are certain homebuilders that are investing in that. Okay. We are experiencing little downgrade in the quality of the salvage logs delivered to our customers and we do not expect pricing for the salvage logs to negatively affect our fourth quarter realizations. Through three quarters, we've made excellent progress against our $50 million to $70 million full-year opex goal, and I'm confident we will achieve this target by year-end. But, look, we're not -- it's not anything new dealing with fires. July XX, 2020 Permit issued 4. No permit is required for motorized or non-motorized transit through Weyerhaeuser land to access any publicly owned land located within the borders of Weyerhaeuser land. Thank you. Obviously, we've seen some puts and takes in pulp log demand. 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. I think you can say generally across the board in all product categories, and I'll comment on each specifically. In Weyerhaeuser, the “deep state” acted in a repugnant way. Earlier this week, we submitted notice that we will be redeeming in mid-December, our $500 million, 4.625% notes due September 2023. Most years, we have very minimal damage and impact. And to the extent that, our shares are trading at a meaningful discount and that's something that we could look at to return cash to shareholders. I'll turn it over, Devin. What was the decision process in terms of not doing a supplemental dividend in the first quarter of '21 and then waiting another full year for the first payment to be in 2022? Obviously, we have also returned $375 million of cash through the dividend payment that we made in Q1 and the fourth quarter dividend we just declared. October 2017 So, we do expect that to improve over time. That's helpful. Yeah. The permit term is effective August 2021 through July 2022. Unit log and haul costs will increase modestly compared to the third quarter. THIS IS A UNIQUE OPPORTUNITY TO START OR GROW YOUR BUSINESS IN THE EVERETT WATERFRONT’S ICONIC STRUCTURE The sustainable base dividend remains our core mechanism for returning cash. So the short answer to your question is really -- notwithstanding some of the pricing dynamics, you don't really see a whole lot of crossover between Doug fir and Southern yellow pine. 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. So, again, it is definitely skewed in 2020 with those Oregon transactions. We have also significantly reduced our net debt-to-adjusted EBITDA leverage ratio, improving it by approximately 2 turns from the high of 4.9 times at the end of 2019 to 2.9 times at the end of the third quarter. Moving on to our third quarter operating performance. Please proceed with your question. We've got a number of additional projects in the queue that we think can return very good returns, continue to ensure that we have a very cost-effective, efficient mill set and in that, will be some opportunities for increased lumber capacity and production as well. On a seasonally adjusted basis, third quarter single-family starts improved by over 35% compared with the second quarter and over 15% compared with the third quarter of 2019. Timberlands, Real Estate and ENR results have been relatively stable over time, while earnings for our Wood Products business have fluctuated with lumber and oriented strand board pricing. And would you anticipate price improvement in 2021, assuming we stay at or above that 1.4 million starts level? 192 talking about this. We actively monitor all inquiries received through this feature and route them to the person best equipped to provide you a quick response. Yeah. Since May, the Board has regularly reviewed opportunities to reinitiate an appropriate quarterly dividend. We're going to continue to look at that. We continue to expect these transactions will close in the fourth quarter and the Southern Oregon Timberlands are now shown on the balance sheet as held for sale. I'll begin with our key financial items, which are summarized on Page 17. During the third quarter, we redeemed $325 million, 3.25% notes that were due March 2023. And where would they be, would you say in the various businesses relative to where they normally would be now? 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. My first question, given -- Anthony teed it up, I want to segue from that question and maybe the answer can be more or less the same, but given the supply constraints that you're seeing on the West, given the higher pricing that we're seeing for logs in the West, are you seeing any tangible evidence of maybe some substitution recognizing they're different regions, large distances between the two regions? But certainly, we know how to manufacture wood products and we'll continue to look at that market down the road, maybe that makes sense. Yeah. 200 10277 154TH ST SURREY, BC V3R 4J7. Our thoughts are with everyone affected by this disaster, and I want to acknowledge all of the fire fighters, first responders, government and industry partners, as well as our Weyerhaeuser employees for their extraordinary work to save lives, protect property and contain the fires. Yeah. US housing activity rebounded sharply in the third quarter, supported by a growing preference for larger single-family homes in less urban areas. Sign up for updates. 11. Basically, what we would now need is a permit from USFWS to do anything on the land, which they most likely would not permit.”. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. I don't know, in the near-term, we're really looking to get into manufacturing CLT. Luke Thies . Thank you. 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