PotlatchDeltic (PCH) 2025 Conference June 04, 2025 08:00 AM ET Speaker0 What I would tell you is that any kind of a demand increase or supply reduction, especially coming out of Canada, is likely to result in in price tension. So the fact that nobody is expanding right now, it bodes well for the future is the way we think of it. And I think the smaller competitors probably are less likely to put capital back into their mills, unlike the larger competitors like us that understand you need to keep these mills ...

Core Viewpoint - Carbon Streaming Corporation has made significant strides in cost reduction and financial sustainability in Q1 2025, while exploring strategic alternatives to enhance shareholder value despite challenging market conditions [2]. Financial Highlights - The company reported a net gain of $49 thousand on the revaluation of carbon credit streaming and royalty agreements, a significant improvement from a net loss of $33.1 million in Q1 2024 [4][6]. - Operating loss for Q1 2025 was $1.4 million, down from $36.6 million in the same period last year [5][6]. - The net loss for the quarter was $0.8 million, compared to a net loss of $35.8 million in Q1 2024 [5][6]. - Cash at the end of the quarter stood at $36.4 million, with no corporate debt [5][6]. - The company reduced the number of full-time employees from 24 at the start of 2024 to just 3 by May 2025, leading to substantial savings in operating expenses [5][6]. Portfolio Updates - The Nalgonda Rice Farming Stream project was registered with Verra on February 10, 2025, after overcoming delays related to methodology reviews [7]. - The Sheep Creek Reforestation Stream project has faced significant challenges, including higher than expected mortality rates and slower growth, leading to a potential loss of anticipated carbon credits [9][11]. - The Baccala Ranch Reforestation Stream was terminated by Mast, confirming no further plantings will occur [12]. Strategic Focus - The company is prioritizing maximizing value from its existing portfolio while evaluating potential acquisitions, divestments, and strategic partnerships [2][14]. - Ongoing corporate restructuring efforts have led to reduced operating expenses and streamlined decision-making processes [16]. - The company aims to optimize cash flow generation through the sale of carbon credits from its streaming agreements, despite uncertainties in the carbon market [17].

Core Insights - Occidental Petroleum is diversifying its business beyond traditional oil and gas, focusing on carbon capture and chemical production [2][10] - The company is the largest driller in the Permian Basin, which is a significant asset in the energy sector [1] Group 1: Carbon Capture Initiatives - Occidental's 1PointFive initiative aims to operate 100 direct air capture (DAC) plants by 2035, targeting the removal of 500,000 tons of carbon annually [2][3] - Major carbon credit agreements have been established with Microsoft and Amazon, indicating strong market interest and potential revenue streams [2] Group 2: Chemical Division Performance - OxyChem, Occidental's chemical division, generated $270 million in Q4 2024 and $1.12 billion for the full year, showcasing its profitability [4] - The division produces essential chemicals, including caustic potash, chlorinated organics, sodium silicates, and calcium chloride, which are critical for various industries [5] Group 3: Future Growth and Upgrades - OxyChem is undergoing significant upgrades, including the modernization of the Battleground plant in Texas, expected to enhance margins and reduce emissions by mid-2026 [6][9] - These upgrades are projected to add approximately $300 million in annualized EBITDA starting in late 2026, indicating strong future cash flow potential [9] Group 4: Market Position and Analyst Sentiment - Occidental is positioned as the fourth-largest chloralkali producer and the second-largest merchant caustic seller globally, with significant cash flow sensitivity to price changes in chlorine and caustic soda [8] - Despite a current "Hold" rating from analysts, the company is seen as a blend of stability and future upside, making it a noteworthy investment option [10][11]