Fiscal Second Quarter 2025 Earnings Results Teleconference May 1, 2025 Forward-Looking Statements This presentation contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings guidance, business outlook and investment opportunities. These forward-looking statements are based on management's expectations and assumptions as of the date of this presentation and are not guarantees of future performance. Whil ...

Core Viewpoint - ExxonMobil sees carbon capture and sequestration (CCS) as a significant opportunity for profitability while contributing to environmental sustainability, estimating the CCS market could reach $4 trillion by 2050 [1] Group 1: Business Developments - ExxonMobil is positioning itself as a leader in the CCS market, recently signing a deal with Calpine to transport and store up to 2 million tons of carbon dioxide annually from its Bayton Energy Center [3] - The agreement with Calpine is part of a broader strategy to provide low-carbon electricity and steam to industrial facilities, producing approximately 500 megawatts of electricity, enough for 500,000 homes [3] - Exxon has now signed six contracts for carbon dioxide transportation and sequestration, totaling 16 million tons per year, indicating growing confidence from clients across various sectors [5] Group 2: Revenue Potential - The company aims to secure 30 million tons of transportation and storage contracts by 2030, with current contracts already exceeding halfway to this goal [7] - ExxonMobil anticipates that its CCS business could generate over $10 billion in annual contractual revenue within the next five to ten years, providing stable earnings compared to its traditional oil and gas operations [9] - The company plans to invest $30 billion by 2030 in reducing emissions and providing carbon reduction solutions, estimating these initiatives could yield $2 billion in earnings by 2030 [8] Group 3: Strategic Acquisitions - In 2023, Exxon acquired Denbury Resources for nearly $5 billion, primarily for its extensive carbon dioxide pipeline system, enhancing its CCS capabilities [6] - The integration of Calpine's facility into Exxon's existing carbon dioxide pipeline system, the largest globally, will facilitate the transportation of greenhouse gases to sequestration sites along the U.S. Gulf Coast [4] Group 4: Long-term Investment Appeal - The CCS business is viewed as a long-term growth driver for ExxonMobil, potentially extending the use of fossil fuels while stabilizing earnings volatility [10] - The recent contract with Calpine reinforces the attractiveness of Exxon's CCS business as a lucrative venture, enhancing its long-term investment appeal [10]

Financial Data and Key Metrics Changes - Weyerhaeuser reported first quarter GAAP earnings of $83 million or $0.11 per diluted share on net sales of $1.8 billion [6] - Adjusted EBITDA totaled $328 million, a 12% increase over the fourth quarter of 2022 [7] - The company ended the first quarter with $560 million of cash and total debt of just under $5.2 billion [31] Business Line Data and Key Metrics Changes - Timberlands contributed $102 million to first quarter earnings with adjusted EBITDA of $167 million, a $41 million increase compared to the fourth quarter [8] - Real Estate and Natural Resources contributed $56 million to first quarter earnings and $82 million to adjusted EBITDA, with a $6 million increase from the fourth quarter [16] - Wood Products contributed $106 million to first quarter earnings with adjusted EBITDA of $161 million, comparable to fourth quarter results [19] Market Data and Key Metrics Changes - Log demand was healthy in the first quarter, with pricing for grade logs increasing significantly compared to the fourth quarter [9] - In Japan, sales volumes for export logs increased significantly compared to the fourth quarter due to improved demand [11] - In China, log demand moderated significantly due to reduced consumption during the Lunar New Year holiday, leading to a decrease in sales volumes [12] Company Strategy and Development Direction - The company is focused on advancing its Carbon Capture and Sequestration (CCS) project, with a significant milestone achieved through a 25-year off-take agreement with Occidental Petroleum [18] - Weyerhaeuser aims to capitalize on steady demand and pricing for high-value real estate properties [16] - The company is strategically shifting logs to domestic customers in response to market conditions, particularly in light of the ban on U.S. log imports to China [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the housing market remains uncertain, with homebuilder sentiment waning due to economic concerns [50] - The company remains optimistic about long-term housing demand supported by demographic trends and low existing home inventories [51] - Management expects a slight uptick in demand for engineered wood products as building activity increases in warmer months [72] Other Important Information - The company returned $152 million to shareholders through dividends, marking the fourth consecutive year of increasing the base dividend by 5% [32] - Capital expenditures for the quarter were $93 million, including $16 million for the construction of an engineered wood products facility [34] - The company anticipates adjusted EBITDA for the real estate segment to be approximately $50 million higher in the second quarter compared to the first quarter [43] Q&A Session Summary Question: What is the outlook for lumber demand as the building season begins? - Management indicated that overall lumber demand is steady, with some pullback noted in builder confidence levels [62] Question: How do you see the outlook for engineered wood products (EWP) pricing? - Management expects pricing for EWP to remain comparable in the near term, with volumes anticipated to increase due to seasonal building activity [72] Question: Have you adjusted your harvest profile given the softer demand? - Management stated that harvest levels are set to be within sustainable levels and do not anticipate changes unless a significant recession occurs [78] Question: Can you provide more details on the Occidental Petroleum agreement? - Management expressed excitement about the CCS project, noting it is a significant milestone and expects first injection to begin in 2029 [84] Question: How do you view the impact of potential tariffs on timberland valuations? - Management does not expect a meaningful impact on timberland valuations in the near term due to the long-term nature of the asset class [94] Question: What is the expected impact of planned maintenance on OSB pricing? - Management indicated that the planned maintenance would not have a meaningful impact on operating rates in the second quarter [102] Question: How are channel inventories characterized in the current market? - Management noted that inventories are lighter than usual for this time of year, but supply is currently meeting demand [114] Question: What is the outlook for repair and remodel (R&R) activity? - Management expects R&R activity to pick up later in the year, supported by high levels of home equity and an aging housing stock [141]