Good afternoon. I'm Anthony Pettinari with Citi Research, and we're pleased to have with us Weyerhaeuser and CEO Devin Stockfish. This session is for Citi clients only, so if media or other individuals are on the line, please disconnect now. Disclosures are available on the webcast and at the AV desk. For those in the room or on the webcast, you can go to liveqa.com and enter code GPC 24 to submit any questions if you don't want to raise your hand. Devin, we'll turn it over to you to introduce your company, provide any opening remarks, and tell the audience the top reasons investors should buy your stock.
All right. Well, thanks, Anthony. Appreciate the introduction. I'm going to keep my prepared remarks pretty short so we have plenty of time for Q&A. If you're interested, we do have a fulsome investor deck that's available on our website with lots of additional information. So just a quick overview for those that aren't as familiar with our story, we are the largest private owner of timberlands in North America. We have about 10.5 million acres of high quality, highly productive timberlands across the U.S. We manage an additional 14 million across Canada under long-term license agreements. We're one of the largest manufacturers of wood products in North America. We have 35 mills in the U.S. and Canada. Those are typically located in close proximity to our timberlands, industry-leading performance across both of those businesses.
Then our last business, our real estate, energy, and natural resources business, is really focused on capturing the maximum value from every acre we own. We do that through a variety of opportunities around real estate, natural climate solutions, a variety of other things, oil and gas, etc. All of these businesses have significant scale, industry-leading performance. We manage them within a tax-efficient REIT structure. In fact, we are one of the largest REITs in the U.S. Just a few brief comments on our progress against the multi-year targets that we set out a few years ago at our investor day. We continue to make progress against our billion-dollar acquisition target in the timberland space. We're about $530 million into that program, made some nice acquisitions last year in the Carolinas and Mississippi.
We continue to grow our lumber volume against the billion board foot target that we set a few years back. I think you'll see a nice, healthy uplift this year as some of those projects have come to completion. We continue to drive operating improvement across all of our portfolio. When we look back over the last several years, we've taken hundreds of millions of dollars of cost out of the business just over the last two. We've captured an additional $77 million of OpEx improvements, and we're well on our way to the $175 million-$250 million target that we set out at our investor day. So feel very good about that. We'll always be focused on sustainability and ESG. We've been doing that long since the beginning of the company.
We're continuing to make progress against our greenhouse gas emission targets, reduction targets, and really just setting the company up as a vehicle for those investors that are interested in investing in sustainable companies. So just really proud of the progress that we're making across all of those multi-year targets. In terms of investment thesis, we're really focused on four things to drive value for shareholders. It's about having an unmatched portfolio of assets. It's about having industry-leading performance all built on a strong ESG foundation and then combine that with disciplined capital allocation. And we think that is a formula to deliver a lot of value for our shareholders. So in the interest of time, I'm only going to touch on a couple of those, and I'll just start with the industry-leading performance.
If you look back at the history of the company, you go back five, 10 years, we weren't necessarily always leading in terms of our operating performance. That has dramatically shifted over time. When you look at all of our manufacturing businesses, number one EBITDA margin, best EBITDA per acre in the West, I think when you look at it on a region-by-region basis, that's true in the South as well. So we've really gotten to the point as a company where we really do have industry-leading performance across each of our businesses, and we're not done. As I mentioned, we have more OpEx targets. We're layering in a whole new era of innovation at the company that's going to combine with that OpEx performance to really drive our competitive performance relative to the industry, I think further widen that gap.
So we're really pleased with how that's going, and I think this is going to be a competitive advantage for us in the years to come. Just touching on capital allocation, we have three key priorities with our capital allocation framework. It's about returning cash to shareholders, investing in our business, and maintaining an appropriate capital structure. And we've made a lot of progress on all three of those areas over the last several years. We have a cash return framework that we put in place a few years ago that targets returning 75%-80% of our annual Adjusted FAD back to shareholders. And we do that through a combination of a quarterly-based dividend that is sustainable across business cycles. We've committed to growing that 5% per year through the end of 2025.
And then on top of that quarterly-based dividend, we provide an incremental cash back to shareholders through a variety of a supplemental variable dividend as well as share repurchase. Since we put this new program in place, we've returned nearly $4.6 billion of cash back to shareholders. So that will continue to be a very important component of our overall capital allocation framework. We're continuing to invest back in the business. That primarily is through our capital expenditures, which we target $420 million-$440 million a year. That has been a critical component of driving a lot of that operational improvement that we've seen across the company. High-quality projects, relatively low risk, it's some of the best investments that we can make is back into those business for those organic growth and cost reduction opportunities.
Then lastly, in terms of having an appropriate capital structure, that's primarily about maintaining an investment-grade credit profile. When you look at what we've done around the balance sheet over the last several years, we've paid down $1.2 billion of debt. We've lowered our leverage ratio. We've done a lot of work to reduce our liabilities on the pension. We really have dramatically strengthened the balance sheet over the last several years, which I think really positions us well as we go forward and navigate whether markets are good or soft. I think we're well positioned to deliver value across market cycles. As we think about the next few years, as I said, we have some very specific targets on how we're going to continue to grow and improve the company, growing that timberland base. We're going to be net buyers going forward.
We believe we have an opportunity to create a lot of value through our timberlands portfolio and adding to that in a disciplined and strategic way. We're going to continue to perform from an operating standpoint to make sure we not only maintain our industry-leading performance but continue to widen that gap against the competition. We're going to continue to generate nice cash flow across our portfolio, particularly as we implement some of these growth initiatives and get what we think will be some supportive markets. That will translate into returning a lot of cash back to our shareholders. I think with that, Anthony, I'll probably stop there so that we have plenty of time for Q&A.
Great. Great. Thank you, Devin. Maybe we could start off. As part of your investor day, you put out a target for natural climate solutions, $100 million of EBITDA, and that was comprised of a number of opportunities with wind, solar, CCS, forest carbon. Wondering if you could just walk through those opportunities and sort of where are we from an industry maturity perspective? What are some of the enablers that could accelerate adoption? What are the potential obstacles?
Sure. Well, I think this is a really exciting opportunity for our company, and we are still in what I would say the early days of development for a bunch of these businesses. I'll kind of walk through them individually. We've been doing mitigation banking and conservation for a while. I do think that's an opportunity that continues to grow, particularly on the mitigation banking side. For those of you that aren't familiar with that aspect of the business, anytime you're going to do construction or any other kind of activity that impacts wetlands and if you think about the U.S. South, there are a lot of wetlands, you have to get mitigation banking offsets in order to be able to proceed with that construction activity. Because of the size of our land base, we are now the third largest mitigation banking provider in the country.
I think we continue to have some opportunities there. There's a lot of demand. A lot of building activity is happening in the southeastern United States, places where we have a lot of land. So that's an opportunity that's growing. It will be a big component of that initial $100 million target, similar with conservation. The renewables business is, I think, an exciting opportunity that continues to grow. Wind will continue to grow, but probably at a more moderate pace. It's very time-consuming and onerous to get a wind project through the permitting, just all of the local resistance anytime you try to do a wind project. There's still demand for it, but I think that will grow at a somewhat slower pace. The more exciting aspect of the renewables business is really around solar.
There is just an immense amount of interest and activity going on in solar, primarily in the Southeastern United States, all the way from the Carolinas through the South, all the way through to Texas. We've now signed over 50 agreements on solar deals. Now, not all of those will convert. That's an important thing to remember when people are talking about their solar portfolio. But we're trying to align because of our scale and the size of our portfolio with high-quality solar developers. NextEra and Apex, the folks that we think are likely to get those projects from start into production. Our first project is nearly up and running, and those will continue to build on each other over time.
The beauty about solar for us is when you have a solar deal, you harvest, you keep the money from the harvest, somebody else puts their capital to work to put the facility in place, you get a 30- to 35-year period of recurring revenues, it's got an increment of inflation adjustment over time. And then at the end of that period, they come in, take the solar off, you replant. So you basically skip a harvest rotation, but at a much higher value than you would have had managing it for timber. So we're excited about it. It's going to be a component of that initial 100, but that will grow over time into a larger component. The carbon capture and storage piece is largely, if you look to the back end of the decade, going to be the biggest component of our natural climate solutions business.
We've signed two deals a couple of years ago, one with Occidental Petroleum, one with Exxon. Those are progressing well. The beauty about the CCS deals is it's pure incremental revenue. So the way these work is you go to a high-emitting facility, you put a scrubber on the smokestack, you pressurize the CO2, pipe it through a pipeline, and then you inject it down 7,000, 10,000 feet underground. So for us, we'll get a fee in the interim while they're doing the exploration, the drilling, the permitting. But once they start to inject the CO2 is when the economics really start to become higher quality. So for us, we get to continue to manage the timberlands above ground, but we get an incremental payment for each ton of CO2 that they inject below ground. So we've got two agreements that are progressing with OXY and Exxon.
We just signed up last week another agreement with Lapis for an additional five sites. So they're going through the exploration work. These things do take time. So it's a multi-year process to get them tested, get the test wells, get the permitting done, the pipeline infrastructure. But once they're built, it's a multi-decade revenue stream that's purely incremental to the timberlands ownership. So I think as you get kind of into the next phase beyond this initial $100 million, that will be a much larger component of the business. Then the last piece, the forest carbon, we just sold our first forest carbon credits out of our main project last year for $29 a ton, very attractive price. This is a market, this voluntary credit market is still in its early stages and developing.
And candidly, there have been carbon projects that have come to market that have been lower quality, and that's created some noise in the system. And you may read articles in The New York Times or other articles that are critical of this. The good news is when you go to a parcel of land and you ask a forester, "Can you grow more carbon on this landscape if you change how you manage the forest?" That's not controversial. That's just math. 100 out of 100 foresters will tell you they can do that. They can plant more trees per acre, different thinning regimes, different fertilizer regimes, deferred harvest. That is not controversial in and of itself. It's the governance around how you do these projects.
In order for this to scale, and it's important for us, not just to scale for Weyerhaeuser, but for the industry, because that has knock-on effects across our portfolio, we have to bring high-quality credits to market to demonstrate that the buyers and finance, the banks, the tech companies, oil and gas, who have now become sophisticated enough to appreciate the difference between high quality and low quality and demonstrate to the market that they're willing to pay higher value for high quality. And that's we, Weyerhaeuser, are really trying to lead the industry and kind of pushing in that direction. The good news is there is demand for this, for high-quality credits. Lots of buyers want to buy these. What they don't want is to end up on the front page of The Wall Street Journal for greenwashing.
So that is the process that we're undergoing right now, is to demonstrate the credibility of this market. I do think as you do that and as you can show that, "Hey, these are real. If Time Magazine wants to do an exposé, we'll open the books. We'll show them how it works." When you can bridge that, I think the demand for carbon is going to be very strong, and that should push carbon prices up over time, which is good for us in terms of just the forest carbon credits that we sell. But it also, and this is already starting to happen, this interest in carbon is starting to cause timberland values to go up. And you can see that if you look across the South in particular, you're already starting to see that.
So as the value of carbon goes up, we have an opportunity across our platform with land values, selling forest carbon credits, carbon capture and storage. Ultimately, I think if you have carbon prices at $35 a ton, you're not going to have stumpage prices at $25 a ton. Those are going to have to normalize. Otherwise, people will take timber out of production and move into the carbon market. If that really goes, I mean, if you have $50 carbon markets down the road, ultimately, I think that constricts log supply, perhaps, which as the only large player that has timber and manufacturing assets we've seen in the Northwest and in Canada, if you have both of those things, that can be a very lucrative position to be in.
I think this whole development around carbon and climate is going to be likely a nice tailwind for us for years to come.
Great. Maybe just a couple of follow-ups there. For CCS specifically, what is Weyerhaeuser's kind of competitive advantage from a counterparty perspective? So why did Exxon choose you as opposed to maybe other landowners? And then understanding these are large, complex projects, is permitting kind of the biggest bottleneck, or how should we think about that?
Yeah. I mean, from a competitive advantage standpoint, there are a couple of things I would highlight. So first of all, these days when you transact in land, ordinarily the subsurface rights are not traveling with the above-ground rights. Because we've owned much of this land for a very long time, unlike most other landowners, we own subsurface and surface rights. So we have the pore space. Second, we've had geologists on staff for decades because we have a natural gas business. And so we understand the pore space in a vastly different way than most other landowners.
So we can go to an Exxon, we can go to an OXY or Chevron or whomever and say, "These are the areas that we think are suitable for carbon capture and storage, and here's the data." They're going to do their own testing, but that can advance the process for them 12-18 months and expedite from start to finish. Beyond that, the ability to transact with one counterparty that's sophisticated. I mean, when you look at our ownership in most of these geographies, we own a lot of land. So you can come to a Weyerhaeuser who understands how to do these deals and enter into an agreement where you lock up most of the pore space versus other geographies where you're going to go out and try to negotiate with 50 different farmers of varying degree of sophistication.
One of those is much, much easier than the other. And so when we bring those three things to the table, for those areas where we have pore space that's suitable, I think it's an opportunity for us to be out in front of the industry.
I think you said, I don't know if I got this right, about $100 million opportunity on the carbon capture.
So that is our natural climate solutions business. So that is comprised of mitigation banking, conservation, renewables, carbon capture and storage, and forest carbon. So we started that business a couple of years ago, and we set a target by the end of 2025 to have that at a $100 million per year business over time. And that's really more of a reflection on how quickly we can get these things going as opposed to the magnitude of the opportunity, which we think is in excess of that. That $100 million is going to include relatively little carbon capture and storage component. Our first injection on one of those projects is going to come late 2025 or early 2026. And then the Oxy is going to come in 2026, and Lapis will come on behind that.
So that is working its way through the pipeline, but that CCS will not be a big component of that 100.
What are the main components of that 100?
It's going to be mitigation banking, conservation, and renewables, primarily in that first tranche.
Is the renewable solar or wind?
Solar and wind. It's going to be right now, it's more wind than solar. But as we progress, that solar will outstrip the wind in terms of production.
So Rayonier presenter before you, and they were talking about a $75 million opportunity for carbon capture in the solar. I might be missing something else they were doing. I would think you're like five times bigger than that opportunity should be, I don't know, five times bigger.
Yeah. So and they're probably the best ones to ask about the specifics of how they built that up. But as we think about $100 million in 2025, most of these businesses are going to continue to grow. And the beauty about these is every new carbon project, every new solar project, these things just, they build over time. And so that is going to continue to build from 2025 to 2030. So they're $75 million in 2030. We're $100 million in 2025. Do I think we're going to be well in excess of $100 million by the time we get to 2030? Absolutely.
Following up on forest carbon, you talked about the main project where you sold credits for $29 a ton. Can you remind us the size of that? And then you have, I think, a couple of projects in the South. And maybe just walk us through kind of the learnings from the main project, why you chose New England for that and how applicable those projects could be in the South.
Sure. And actually, just to answer your last question about permitting, the short answer is yes. The permitting system in the United States, almost no matter what you're talking about, is fundamentally broken. And so whether it's solar, wind, CCS, pretty much anything permitting is going to be one of the bottlenecks. So that is what it is, but that's built into our expected timeline is to work its way through the process. Both Occidental and Exxon, these parties are all sophisticated and working through the permitting program. So that's the answer to the last question. In Maine, so the project was 50,000 acres. And just to be clear, when we talk about the acreage on these projects, it's not as though we're just going to take 50,000 acres, put it off to the side, and never touch it again.
There are a variety of components that make up these programs. It can be a little fertilizer extra over here to juice the growth. It's deferring harvest over here. Maybe it's a few more trees per acre that you plant over there. So it's a combination. We're still going to be a timber company. We're still going to sell logs to our customers. This forest carbon piece is an increment of additional return that we're building into the way that we manage it. So 50,000 in Maine. The reason we chose Maine, and this is going to be true as this market develops, you're only going to do carbon projects where the price you're getting for carbon is margin beneficial relative to managing it for timber. And so Maine, as those of you that follow the industry probably know, is not the best timber market.
The threshold for the margin you have to overcome to do credits in Maine was lower than other parts of the country. Where you're going to see this develop is you're going to start with markets where the timber market's not as strong or maybe the quality of the land is not as strong. That's why we're going to pick some probably lower quality markets to start in Mississippi and Arkansas. You're probably not going to see a lot of carbon projects in the Pacific Northwest because the margins on saw logs in the Northwest are quite a bit higher than other regions. It will depend on what are stumpage prices, what are the market dynamics, and then what are carbon prices. That will really drive where you do these projects over time.
Got it. And you talked about how some of these decarbonization opportunities are maybe showing up in timberland cap rates. Can you talk a little bit more about the private market for timberland's kind of valuations you're seeing? And again, the billion-dollar program that you're a little bit more than halfway through.
Yeah, it's a competitive space. That's been true for a number of years. But when you look around the table at these deals that come to market, there are new faces there. The traditional REITs have been fairly active. The TIMOs remain active in the space. But you're seeing new players like JPMorgan buying Campbell. You're seeing Apple wanting to buy timberlands. You're seeing IKEA now is buying timberlands. There are a variety of different players in the space. I think for the most part, the reason they're getting into the timberland asset class is because they think that there is a carbon play there over time. I don't think people necessarily fully understand how to quantify it, but they are underwriting some aspect of it.
And I think to some extent, you've seen that just in the way timberland values have been going up over the last few years. When we go into the market, I mean, we bid on a lot of deals. We get relatively few of them. And I think that's probably an indication that it's working the way it should from a discipline standpoint. If you overpay for timberlands, it's hard to make that up down the road. So when we get deals, it's generally because there's something extra that we can bring to the table. Now, fortunately, I think we do have some competitive advantages that will allow us to continue to do that. But whether it's our size and scale, we have the lowest log and haul costs. We know how to build roads less expensively.
Some of the silviculture that we can do, that provides an extra increment versus some competitors. If it's near an export program, we have a scaled export program that can drive some other value. Maybe it's near one of our manufacturing facilities. So both of the deals we did last year, a component of the timber that we bought was proximate to a mill. So I mean, if you think about, hey, I'm buying timberland that's 20 miles from the mill instead of an average of 50 or 60, that additional transportation and logistics synergy that you can bring to the table gives you a little increment. But I think the biggest one is we've been developing these solutions internally for a while.
So when we look at a parcel or a deal, we can look across the acreage and say, all right, we have a pretty good feel for how you're going to manage this for base timber. But this piece, I think we can do solar here. There's probably a mitigation banking opportunity there. That's HBU. Now, we don't necessarily fully underwrite all of that because we have to have a high degree of certainty before we actually underwrite it. But directionally, every deal that we've done over the last several years, we've found additional components of some form or another that's added to that return profile. So those are the deals that we're going to get is where we can provide some competitive advantage there.
Great. Then regionally, if you look at the Pacific Northwest and then maybe the Inland South and Coastal South, is it possible to generalize where you're maybe seeing the most opportunities? Are there regions that you'd like to get bigger or smaller or how would you do about it?
Yeah. So I mean, the U.S. South as a whole has been pretty active. You've seen a little less activity in the Pacific Northwest. And I would say, broadly speaking, I'm more or less agnostic West versus the South in general. It's more about what kind of return can you generate from the asset? Now, within each broader geography, we have a view on which wood baskets we want to own more timberlands and which wood baskets we want to own less timberlands. And that's driven by some modeling work that we do internally, wood basket by wood basket, to do growth drain, understanding what is the mill set, who's capitalized, who's not well capitalized, what's going to be here, what's going to grow, etc. So we have a pretty specific view, wood basket by wood basket, on where we need to grow.
Broadly speaking, would I like to buy more timberlands in the Northwest? Yes. Would I like to buy more timberlands in the South? Yes. Anywhere within those geographies, within targeted zones, is an acquisition opportunity for us if it becomes available at the right price.
And we talked about the kind of decarbonization opportunity in timberlands. Presumably, you have a lot of sort of HBU and real estate kind of opportunities. How do you manage that? How much development do you do? And can you just talk about your real estate business?
So I mean, we have a pretty active portfolio of real estate business. We generally sell just under 1% of our acreage every year. Now, we replenish that through our acquisition. So it's going to be sustainable. We have a team. We've got a program. We call it AVO 2.0, Asset Value Optimization, that looks at the attributes of every single acre we own. And if it's a stream, if it's near a city, proximity, roads, schools, there is a lot of data that feeds into that algorithm that identifies land that we think can get higher, better use valuation. And that runs the gamut from selling 120 acres to someone that wants to build a cabin in the woods in Arkansas to the development that we have in New Bern, North Carolina. So it runs the gamut.
I would say we generally don't invest a lot of capital in terms of vertical construction. That's really not where we participate in the market. We'll take it up through entitlement if it's the right property, and then we'll kind of parcel that out to a variety of different buyers. But it'll continue to be an important part of our program.
Great. And maybe just shifting gears from timberlands to wood products, you are the largest lumber producer in the United States. We're kind of in the heart of the spring selling season for the home builders. Can you talk a little bit about kind of current lumber market dynamics and how you're seeing demand?
Yeah. I mean, lumber prices, when you look at 2023 and really for the first couple of months, the quarter have been a little softer. And I think that's a function of a few things. Part of last year, you saw some excess European volume coming into the market. And that was largely a result of when you're salvaging wood from the beetle and the fires, that's more or less free logs that you're getting. And since that's the biggest cost of manufacturing lumber, you can afford the logistics to get it to the U.S. market. That salvage activity is starting to wane. So I don't think you're going to see that same level of European supply coming into the U.S. this year. I think the other thing is repair and remodel has been okay as we got into the winter months, which are typically seasonally slower.
We just didn't have enough traction from R&R. Building activity, particularly on single families, actually been pretty strong. But we just couldn't really get out of that rut with kind of that seasonal. We saw some rain down in California, which has been restricting some building activity down in that region. But as we get into the spring, we're really now kind of getting into the meat of the spring building season. You can sense a pickup in activity. We kind of saw that last week with OSB prices. Inventories in the channel pretty lean. As you really start to get into the heart of the building season, people pick up the phone and say, all right, I'm now ready to order some OSB. And they realize there's no market wood. And so you see prices pop $25 a week.
We haven't necessarily had that fully happen on the lumber side yet, but you are starting to sense more activity. Lumber is going to be better this year than it was last year. I think as we sort of get into the spring where you see more decks and fences and remodel activity combined with what we see going on in single family, you'll start to see some traction on the lumber side, we think.
Given some of the profitability challenges for the industry, are you seeing capacity response in British Columbia or the South or the U.S.?
Yeah, we've seen it. I think it probably happened a little bit more slowly last year than you might have expected. But when you look at 2023, you saw 1.3 billion board feet of capacity come out either permanent or indefinite. And even just in Q1 this quarter, you've seen about 1.1 billion of permanent or indefinite curtailment. So that response probably took a little longer than you might expect. I believe you're going to see more capacity coming out of British Columbia and the Pacific Northwest just because the dynamics with log availability and log costs are going to make it challenging for a lot of players in the industry. If you don't have the right cost structure and if you don't have access to fiber, those are very difficult markets to operate in. And even in the South, we have seen a few mills.
I mean, I think that's surprising to some that you would have sawmills in the South closing down. But there's still a lot of mills that haven't been capitalized. And you've got to be a good operator when you see a little bit of softness in the pricing. But again, I think pricing should find its footing here. EWP pricing's been solid. OSB pricing's been solid. So lumber's just kind of lagging a little bit behind. But I expect it'll follow here shortly.
Can you just remind us quickly, in terms of lumber versus OSB, the exposure to R&R versus starts?
Yeah. Lumber has a bigger component of repair and remodel. So when you think about lumber, 30%-35% is residential construction. 40% is repair and remodel. So it's a pretty heavy component. When you look to OSB, that's much more heavily driven by single-family construction and residential construction. There's an R&R component to it, but it's much smaller relative to lumber. And then EWP is primarily single-family residential.
Great. You touched on this earlier, but you have a very large timberlands business, which is pretty stable earnings, pretty defensive. Then you have a wood products business, which demonstrates a lot more cyclicality. How do you kind of manage that from a dividend policy perspective and capital?
Yeah. I mean, that's the essence of our new cash return framework, right? I think a lot of people think of cyclical businesses inherently bad. They're not bad. In fact, they can be very lucrative if you have a strategy that is aligned with being in cyclical businesses. And so what that's meant for us is you better be in a good spot from a cost curve standpoint. And that's true across all of our businesses. You need to have the balance sheet in the right place. That's why we pay down a lot of debt, refinance a lot of debt, help get the pension under control, and then have a cash return framework that's aligned with the cash flow that you're actually generating.
And so as we look across market cycles, you're going to have some years like we saw in 2021 and 2022 where it's just off the charts cash generation and shareholders get a whole lot of money. And years where it's a little softer, where you still got a decent cash return at $786 million, but it's tied to the cash that you're generating. And what that means is in 2019, we had a billion-dollar dividend and $500 million free cash flow. When you find yourself in that situation, you cut CapEx, which is not good long-term strategy. You sell assets and you take on more debt. That's not a good long-term strategy. So we have positioned ourselves over the last few years where if I could have $1,000 lumber prices forever, obviously, I would take that. But we will have cycles.
And you'll have that in timberlands too in the West. You'll have it in wood products. But if you can be strong when everyone else is weak, that's where the big opportunities come. And I think we've positioned the company where we're going to continue to buy back stock. We're going to continue to invest in our businesses. We're going to continue to return cash to shareholders.
Execute on our long-term strategy.
Great. Thank you, Devin.
Yep.