Andrei Metelev While land is an inherently limited resource, timber has largely been oversupplied in the U.S. due to government incentives put in place long ago encouraging farmers and other large landowners to plant forests, particularly in the South. The forests planted in these incentive programs have been reaching maturity in the last decade resulting in an oversupply of timber and consequently low timber pricing. Note the TimberMart-South data showing pine sawtimber pricing about the same as 10 yea ...

Core Viewpoint - Weyerhaeuser Company has entered into a two-year exclusive agreement with Lapis Energy LP for subsurface carbon dioxide sequestration in multiple states, which is expected to enhance its climate solutions portfolio and carbon capture capabilities [1][2]. Group 1: Agreement Details - The agreement allows Lapis Energy to assess the carbon sequestration potential of five sites covering 187,500 acres of subsurface rights owned by Weyerhaeuser [1]. - Following technical and commercial evaluations, Lapis will work towards full-scale development agreements and the necessary permits for permanent carbon dioxide sequestration sites [1]. Group 2: Business Outlook - Weyerhaeuser is positioned to benefit from its partnerships with high-quality developers in renewable energy and carbon capture, aligning with global climate change initiatives aimed at achieving net-zero emissions by 2040 [3]. - The company anticipates significant progress on projects with Oxy Low Carbon Ventures and Exxon, expected to be operational by late 2025 or 2026, and aims to grow its Natural Climate Solutions (NCS) business to $100 million in EBITDA by the end of 2025 [3]. Group 3: Market Performance - Weyerhaeuser's shares have increased by 3.8% over the past three months, underperforming the Zacks Building Products - Wood industry's growth of 13% [4]. - Despite this, the improving new-home market and high demand for carbon/ESG-related projects are expected to support the company's growth in the near future [4].

Exclusive two-year agreement covers 187,500 acres across Arkansas, Louisiana and Mississippi SEATTLE, Feb. 27, 2024 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) and Lapis Energy LP ("Lapis") announced today the execution of an exclusive exploration agreement for subsurface carbon dioxide sequestration in Arkansas, Louisiana and Mississippi. The agreement covers 187,500 acres of subsurface rights owned by Weyerhaeuser and spans five potential sequestration sites, including two locations that were previous ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO f COMMISSION FILE NUMBER 1-4825 WEYERHAEUSER COMPANY A WASHINGTON CORPORATION 91-0470860 (IRS EMPLOYER IDENTIFICATION NO.) 220 OCCIDENTAL AVENUE SOUTH, SEATTLE, WASHINGTON ...

Weyerhaeuser Company (WY) has entered into a national partnership with Be Pro Be Proud, a licensed initiative led by the Arkansas State Chamber of Commerce and the Associated Industries of Arkansas (ASCC/AIA).This strategic partnership aligns with the company’s commitment to rural communities and workforce development, highlighted in its 3 by 30 Sustainability Ambition.The Initiative in DetailAs part of the partnership, Weyerhaeuser will support this initiative’s educational outreach and recruiting activiti ...

SEATTLE, Feb. 8, 2024 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced that its board of directors declared a quarterly base cash dividend of $0.20 per share on the common stock of the company, reflecting a 5.3 percent increase from the prior quarterly dividend of $0.19 per share. The dividend is payable in cash on March 22, 2024, to holders of record of such common stock as of the close of business on March 8, 2024. "We're pleased to announce this increase in our quarterly base dividend and ...

alexsl/iStock via Getty Images Introduction I am a big fan of the wood/timber industry. Although I have no direct exposure, I own railroads that ship wood products in various forms, including building materials. I also own Deere & Company (DE), which is one of the biggest producers of forestry machinery. On top of that, it needs to be said that lumber prices are a fantastic economic indicator, as these products are used in various economic industries, including homebuilding. The chart below, for example ...

Financial Data and Key Metrics Changes - For the full year 2023, Weyerhaeuser reported GAAP earnings of $839 million or $1.15 per diluted share on net sales of $7.7 billion, with adjusted EBITDA totaling $1.7 billion [4] - In Q4 2023, GAAP earnings were $219 million or $0.30 per diluted share on net sales of $1.8 billion, while adjusted EBITDA was $321 million [4][5] - The company generated $986 million of adjusted funds available for distribution (FAD) in 2023, returning approximately 80% of this to shareholders through dividends and share repurchases [5][6] Business Segment Data and Key Metrics Changes - Timberlands contributed $77 million to Q4 earnings with adjusted EBITDA of $143 million, showing comparable results across all regions [10] - Real Estate, Energy, and Natural Resources generated $320 million of adjusted EBITDA for the full year, with Q4 adjusted EBITDA at $67 million, a decrease driven by timing and mix of properties sold [14] - Wood Products contributed $105 million to earnings before special items in Q4, with adjusted EBITDA down 52% to $159 million due to lower commodity pricing [19] Market Data and Key Metrics Changes - In the Western domestic market, log demand and pricing faced downward pressure, but average domestic sales realizations were slightly higher due to an increased mix of grade logs [10] - The Japanese log market returned to a balanced state, with average sales realizations for export volumes comparable to Q3, despite lower sales volumes [12] - In China, log supply adjusted to lower consumption levels, leading to increased sales volumes into the region [13] Company Strategy and Development Direction - Weyerhaeuser aims to grow its timberlands portfolio through $1 billion of disciplined investments between 2022 and 2025, having deployed approximately $530 million to date [9] - The company is focused on enhancing its Natural Climate Solutions business, targeting $100 million of EBITDA by year-end 2025 [18] - Weyerhaeuser continues to emphasize disciplined capital allocation, increasing its quarterly dividend by over 5% annually and returning nearly $4.6 billion to shareholders since 2021 [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market in 2024, particularly in the single-family segment, supported by improving mortgage rates and strong demand [37][38] - The company anticipates steady demand for real estate properties and expects a significant increase in EBITDA from its Natural Climate Solutions business in 2024 [30] - Management acknowledged challenges in the lumber market during Q4 but expects improved performance in 2024 due to capital investments and operational improvements [53] Other Important Information - Weyerhaeuser completed the acquisition of high-quality timberlands in the Carolinas and Mississippi while divesting less strategic acreage, resulting in a net cash inflow of $7 million [8] - The company ended 2023 with approximately $1.2 billion in cash and cash equivalents, with no further debt maturities until 2025 [24] Q&A Session Summary Question: Can you talk about the ability to ramp production across different product categories? - Management indicated that lumber has the most flexibility for production increases, expecting significant production growth in 2024 due to prior capital investments [45] Question: What initiatives will be focused on in 2024 regarding operational excellence? - Management highlighted ongoing initiatives in reliability, recovery, and innovation across Wood Products and Timberlands to improve efficiency and reduce costs [48] Question: Can you discuss the pricing dynamics in the lumber market? - Management noted that Q4 was challenging due to low product pricing, but they expect to ramp up operational excellence and benefit from capital projects in 2024 [52] Question: What are the trends in Timberlands pricing and transaction volumes? - Management reported a typical transaction volume of around $2.5 billion in 2023, with significant appreciation in Southern Timberlands prices, now reaching as high as $4,000 per acre [60] Question: How will new regulations in Oregon impact the market? - Management stated that while new regulations may tighten fiber supply in Oregon, Weyerhaeuser's own timberlands position them favorably without anticipated issues in fiber availability [65] Question: What is the outlook for European lumber imports? - Management observed a decrease in European lumber imports in the latter half of 2023, attributing it to pricing dynamics and the winding down of salvage activities in Central Europe [67]

Weyerhaeuser Company’s (WY) shares inched up 0.4% in the after-hour trading session on Jan 25, after it reported mixed results for fourth-quarter 2023. Its earnings beat the Zacks Consensus Estimate, but net sales missed the same.On a year-over-year basis, both metrics declined due to lower fee harvest volumes in the West and a decrease in domestic sales volumes.The company optimized its timberlands holdings with the strategic acquisition of mature and highly productive acreage in the Carolinas and Mississi ...

Weyerhaeuser (WY) reported $1.77 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 2.7%. EPS of $0.16 for the same period compares to $0.24 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.85 billion, representing a surprise of -4.00%. The company delivered an EPS surprise of +14.29%, with the consensus EPS estimate being $0.14.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...