Moving on to our third quarter operating performance. If you have a situation where you generated a lot of cash in year one, but heading into year two the outlook has deteriorated based on macro or market trends? Please proceed with your question. I do think where you see a little bit more substitution is with the SPF and Southern yellow pine. 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. Okay. 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. I'd like to turn the floor back over to Devin Stockfish for closing comments. June 26, 2018. 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. I wanted to go back to the dividend for a quick follow-up, maybe you -- maybe I missed this early in the discussion. Does anyone have experience with Weyerhaeuser permits? And with the progress we have made on our debt reductions, particularly the 2023 maturities, we have reduced leverage to a level that we believe is appropriate and sustainable for the Company over the cycle and supports our solid investment-grade profile. Fish & Wildlife Service (2018), which “was a case that arose from a requirement of the Endangered Species Act where the US Fish and Wildlife Services (USFWS) has to declare what is considered an endangered species' critical habitat. Obviously, we've seen some puts and takes in pulp log demand. 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. ... 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. Yeah. In Japan, housing starts improved modestly in the third quarter. 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. Chavez said Weyerhaeuser had received many requests for a walk-in permit option, so it added one this year. And just in terms of the 75% to 80% payout ratio, it's in the general vicinity, over the last several years, it's been anywhere from 75% to 85%. Why Weyerhaeuser Stock Soared 23.8% in July, Weyerhaeuser Co (WY) Q2 2020 Earnings Call Transcript, Why Shares of Weyerhaeuser Were Up in April, Weyerhaeuser Co (WY) Q1 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. . See you at the top! 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. Evergreen Facility . We do want to make sure that we're being disciplined about it, though. They'll be cash-accretive, very strong cash accretion. We expect a modest seasonal reduction in sales volume, as well as higher Western and Canadian log costs and higher raw material costs for engineered wood products. So, I think, generally speaking, it's going to be similar each month over that Q4 period. Well, I think if you can provide clarity to people kind of going forward about how you're going to make those judgments, I think that's helpful. Good luck. 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. Permit Table of Changes/Modifications and TVEE Discussion The following changes were made to the Weyerhaeuser – Grifton Mill, Air Permit No. I think a good way to think about that is it somewhere in the third category. And I'd say, generally, pretty minimal inventory in the channel in that product. Major changes to hunting access in 2015 included a requirement that hunters buy an access permit to hunt on Weyerhaeuser land, including the St. Helens Tree Farm (GMUs 550, 520, 524, and 556). Weyerhaeuser upgraded to outperform from market perform at Raymond James Dec. 4, 2020 at 9:11 a.m. 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. We believe this new dividend framework will enhance our ability to return meaningful and appropriate amounts of cash to our shareholders across a variety of market conditions, while positioning Weyerhaeuser to deliver superior long-term value creation. So, part of the back-up land was roughly 50 miles away in my client’s property in Louisiana. 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. (Michael Cozzi is a Ph.d candidate at Catholic University). Please proceed with your question. I don't know that we're necessarily looking to get into panelized manufacturing, if that's the question. 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. I'll begin with our key financial items, which are summarized on Page 17. Thank you, Ms. Baum. Kalispell, MT 59903 . Turning to our Real Estate, Energy and Natural Resources segment. And last, we now expect total capex for 2020 will be approximately $280 million. I mean, if we think about share repurchase programs in cyclical businesses, they've been devilishly hard to pull off well. 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. I don't know, in the near-term, we're really looking to get into manufacturing CLT. Russell S. Hagen -- Senior Vice President and Chief Financial Officer. Well, I think there definitely are opportunities for us through our capital expenditures program to continue to drive value through the Wood Products business. So, the level of the base quarterly dividend was really based on the cash flows that we generate across business cycles both at the business level and the Company level. Beth Baum -- Vice President, Investor Relations. Sure. This base dividend payment, which totals approximately $127 million per quarter is supported by the cash flow from our Timberlands, Real Estate and ENR segments. Thank you. Yeah. Evergreen Facility . All right. We incurred a small amount of weather-related downtime in the quarter due to wildfire smoke in the West and hurricanes in the South. 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. ACCESS INFORMATION Alsea Area: With inventories lean across the channel, benchmark pricing for lumber and oriented strand board escalated rapidly until mid-September. This is attributable to improved sales volumes and higher margins, including operational excellence initiatives. We expect the supplemental dividend will be our primary tool for returning cash above and beyond the base dividend to achieve our targeted annual payout. On the reference to the debt leverage ratios being where you want them to be. 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