Hello, and welcome to Weyerhaeuser's 2021 Virtual Investor Day. Thank you for joining us. With me here today are Russell Hagen, our Chief Development Officer, and Nancy Loewe, our Chief Financial Officer. Let me spend just a moment here at the outset to walk you through today's agenda. I'll start off with a brief strategic overview, including a summary of what we've accomplished over the last couple of years and where we're headed over the next several years. Next, Russell will discuss Weyerhaeuser's growth and business development initiatives, including our Natural Climate Solutions, Timberlands, and Wood Products businesses. After that, I will update you on our plans to capitalize on operational excellence and innovation to further improve our industry-leading operating performance. Nancy will then talk to you about our ESG leadership position and walk you through what is one of the most impressive carbon records of any company around. Following that, she will cover our capital allocation approach and initiatives, including the announcements we made this morning. Then I will offer a few closing remarks. We'll then take a short five-minute break. After that, we'll open it up for questions and answers. Before we start, I will note we will be making some forward-looking statements today. Please review the warning statements in the presentation slides and on our website regarding the risks associated with forward-looking statements. A copy of the presentation materials will be available on our website. A replay of this session will be posted shortly after the event. We'll go ahead and get started. Over the last several years, our employees and our management team have been hard at work, making Weyerhaeuser a better and more valuable company. We've been optimizing and enhancing our portfolio of assets. We've been improving our operating performance. We've been pursuing new growth and value creation opportunities, and we significantly strengthened our balance sheet. We've combined these strategic initiatives with solid execution to improve our competitive positioning and to deliver record results over the past year. Today, we're very excited to share with all of you more details on how our strategy will support long-term sustainable growth and drive strong returns for our shareholders. I'll begin with our investment thesis. At Weyerhaeuser, we're focused on four key levers to drive value for our shareholders: an unmatched portfolio of assets, industry-leading performance, a strong ESG foundation, and disciplined capital allocation. Over the last several years, we've made significant improvements across each of these areas. This has positioned us very well for the future. Today, we'll share more details about our longer-term plans across each of these levers and how we will drive superior value for our shareholders into the future. Before I move on, some of you may have noticed that we've added ESG to our investment thesis. While we've been focused on ESG at Weyerhaeuser for many decades, we believe it makes sense at this point to explicitly add that to our investment thesis. Similar to portfolio, performance, and capital allocation, ESG plays an important role at our company. ESG principles guide us in how we conduct our business, but increasingly, sustainability represents a compelling business opportunity for Weyerhaeuser, and we believe that our ESG leadership will drive significant long-term value for shareholders. For those who are newer to our story, I'll spend a few minutes here with a brief description of our company. Weyerhaeuser is the largest private owner of timberlands in North America, with 11 million acres of high-quality, highly productive timberlands across the United States. We're one of North America's largest producers of wood products, with 35 manufacturing facilities that produce lumber, OSB, and a variety of Engineered Wood Products. We also have 18 distribution facilities located in key markets across the U.S. Finally, our Real Estate, Energy & Natural Resources segment focuses on maximizing the value from every acre we own, including our new Natural Climate Solutions business. All of our business segments have significant scale and industry-leading performance, and we manage them within a tax-efficient REIT structure. In fact, we're one of the largest REITs in the U.S. Over the many decades as a leader in the industry, we've developed deep, unrivaled expertise in creating and capturing superior value across every step of our integrated supply chain. From our proprietary seedlings to our unmatched expertise in forest management to our efficient, low-cost manufacturing facilities, all the way to the end customer. We're constantly striving to be the best and to drive value at each and every step of the process. That includes capturing incremental value through our HBU land sales, energy and natural resources leasing activity, and realizing the optionality across our land base through our new Natural Climate Solutions business. Our unique portfolio and differentiated capabilities, together with our strong execution across the entire supply chain, including the ability to drive cross-business synergies, positions Weyerhaeuser to create significant value across all of our businesses. Ultimately, our ability to generate strong returns for our shareholders over time is largely a function of the competitive advantages that we bring to the marketplace. I can tell you without hesitation that we do bring significant advantages to the businesses and markets where we compete. No other company has the same scale and quality of assets, financial flexibility and the breadth and depth of expertise across the entire supply chain that we have here at Weyerhaeuser. When you combine that with the solid reputation and strong culture that we've built over many decades, we have a powerful platform to leverage in driving value for our customers, our suppliers, employees, and other stakeholders. Many of these things are very hard for our competitors to replicate. Further, these competitive advantages will help ensure that we deliver on the long-term plans and targets that we'll share with you today. Let me pivot for a moment to some of the fundamental drivers that will, we believe, be significant tailwinds for Weyerhaeuser in the coming years. Russell will go into more detail on each of these here in a few minutes. At a high level, there are several macro trends driving continued growth and demand for our products and opening up new and potentially meaningful opportunities. Again, Russell will speak to each of these in more details in here in just a few moments. I'll just say here that I'm very excited about the opportunities out in front of us. This should be a period of strong and growing demand for the forest products industry. Weyerhaeuser will be very well-positioned to capitalize on these strong markets and new opportunities to deliver superior returns for our investors. As I mentioned at the outset, we've been hard at work driving improvements across each of the value levers of our investment thesis. Just since the beginning of 2020, and throughout the many challenges that we've experienced over the last year, we've improved our timber portfolio, we formed a new Natural Climate Solutions business with Russell leading that effort. We've continued to drive significant OpEx improvements, which has led to industry-leading margins across our businesses. As we've experienced over the last year, when we combine our industry-leading performance with strong pricing, our businesses generate significant cash flows. We've also continued building on our longstanding ESG leadership position with our new sustainability strategy and our just-released carbon record, which we think will generate a lot of interest and excitement. We've paid down a significant amount of debt, and we've instituted a new dividend framework that will return a significant amount of cash to shareholders in a sustainable manner. Our people have done a remarkable job. We've made great progress, and we're now very well-positioned to move into our next phase of driving growth and creating value for our shareholders. Looking forward, we have detailed plans for how we will drive growth and deliver superior value. Specifically, we'll share this with you today, the targets we've set for the next several years through the end of 2025. Starting with our portfolio. We will, of course, continue optimizing and improving our portfolio of assets. Additionally, we intend to make investments of around $1 billion over this time period to further grow our Timberlands portfolio. We will do it in a prudent manner and in a way that generates attractive returns and creates superior value for our shareholders. Within Real Estate, Energy & Natural Resources, we intend to grow Natural Climate Solutions to a $100 million per year business. Russell will share more details on our growth plans in just a few moments. We will remain focused on our operating performance, and will look not only to maintain an industry-leading position, but to continue to further separate ourselves from our competition. I will share more details on how we intend to do that later in the presentation. We also plan to enhance our ESG leadership position through our 3 by 30 initiatives and our ongoing work around sustainability at Weyerhaeuser. We intend to make meaningful progress against the greenhouse gas reduction targets we announced today, and to capitalize on our positive carbon story to position the company as a very attractive option for those looking to invest in leaders in the ESG space. Nancy will go through this in more detail during her ESG presentation. With our portfolio industry-leading performance and the macro tailwinds I referenced earlier, we expect to generate strong cash flows through this 2025 timeframe and beyond. Through our disciplined capital allocation approach, we expect to generate significant amounts of free cash flow and return the vast majority of that cash to our shareholders through our new dividend framework, as well as opportunistic share repurchase. As we've said, we will return 75%-80% of adjusted FAD to shareholders through our base dividend, variable dividend, and share repurchase. Our dividend framework is designed to facilitate sustainable growth in our base dividend. We do expect to grow our base dividend by approximately 5% per year from 2022 through the end of 2025. Nancy will provide more detail on this and other capital allocation items, including the interim supplemental dividend and the increased share repurchase authorization that we announced today. In summary, we've made great progress on upgrading our portfolio, improving our operating performance, building on our ESG leadership, and demonstrating a commitment to disciplined capital allocation. We have detailed plans with specific targets to drive further improvements across each of these areas through 2025. As we deliver on these targets, we will grow the company and deliver superior shareholder returns. Now, let me turn it over to Russell to share a bit more detail on our growth and business development initiatives, including Natural Climate Solutions. Thank you, Devin, and welcome everyone. I'm excited to speak to you for the first time in my new role as Chief Development Officer. In this role, I have the opportunity to lead a portfolio management team, which includes acquisitions and divestitures, Real Estate, Energy & Natural Resources, as well as our new Natural Climate Solutions business. This alignment gives us an end-to-end view of every aspect of portfolio management, which creates unique opportunities to identify and capture additional value across our operations. Over the past several years, Weyerhaeuser has built a strong track record of optimizing and enhancing our timber portfolio and using our asset value optimization process to maximize the value of every acre we own. We have also realized significant gains through our disciplined capital investments to enhance the value of our assets and drive improvements in our operating performance. Today, I'm looking forward to talking to you about the next generation of asset value optimization and how we are using these tools to increase the value of our portfolio and capitalize on the optionality of our 11 million acres. I'll begin with a quick overview of the macro trends that are driving our overall growth strategy. I'll discuss growth and business development initiatives for each of our segments. I'll focus in particular on Natural Climate Solutions, which we believe, given our unique portfolio, will create a lot of value over the coming years and further position Weyerhaeuser as a uniquely attractive ESG investment. As Devin mentioned, we believe four fundamental trends will drive substantial growth in demand for sustainable forest products and serve as catalysts for the new market opportunities over the next decade. These trends include increased demand for housing, growth in wood-based building or mass timber construction, rising global demand for wood fiber, and emerging demand for Natural Climate Solutions. First, on housing. On the demand side, Millennials and Generation Z are entering the home buying market. Collectively, these demographic groups represent the largest population cohort in the U.S., and they are coming into their prime home buying years. As this group enters the housing market, there's a growing demand for every level of housing and a shift from multi-family to single-family homes. Additionally, we are seeing a post-pandemic consumer preference for more single-family suburban homes, supported by ongoing work-from-home flexibility. On the supply side, the underlying demand for housing, which is driven by new household formations, has exceeded the level of new home construction in every year since the Great Recession. As a result, U.S. housing is now severely underbuilt with a current deficit of approximately four million units. When combined with a shift in preference among older Americans to age in place, it's clear that the current 1.6 million annual housing start rate must increase if we're to significantly reduce the housing deficit. Beyond U.S. housing, we expect global population growth and economic modernization will drive steady growth in global construction, including infrastructure, housing, and industrial and office buildings. Today, global construction totals over $12 trillion a year and is on a square footage basis, is expected to increase 50% over the next several decades. As city planners, architects, developers, and consumers increasingly appreciate the benefits of wood-based construction, including its sustainable nature, lower carbon footprint, and ultimately, we believe, lower cost of construction compared with traditional steel and cement, we expect construction of tall wood buildings will become more and more commonplace. We've already seen a transition in building codes across developed countries to include mass timber in the construction of tall buildings, and we expect this trend to continue as technology and adoption improve. Global growth also drives demand for many other uses of fiber, such as consumer products, packaging, and specialty pulp. Taking all this into consideration, we expect global demand for softwood fiber will grow 25% by 2030. Relatively few timber-growing regions can sustainably supply more softwood fiber. Declining harvest volumes and long-term supply chain challenges will limit supply from regions like Canada, Europe, and Russia. The U.S. West and New Zealand will continue to benefit from strong markets, but material supply growth is not likely from these regions. This paves the way for the U.S. South, which has significant upside and ability to respond to increase in domestic and export demand. With our unmatched timberland portfolio in the West and South U.S., Weyerhaeuser is in a very strong position to benefit as these demand trends further develop over the next decade. The final trend I will discuss is climate change, which has become one of the most significant challenges of our time. Governments and businesses across the globe are recognizing the urgency for climate action and making significant net zero commitments. The customers, investors, stakeholders are urging meaningful progress against these targets. Achieving these commitments will require governments and companies to take major steps to modify operations, invest in low-carbon activities, and buy offsets to reduce environmental impacts. This will serve as a catalyst for substantial reallocation of capital and resources throughout the global economy. There are currently limited cost-effective solutions to achieve meaningful carbon removals and climate change mitigation. We firmly believe that forests and renewable energy will be an important source of cost-effective solutions and that carbon capture and storage, which I will discuss, will also contribute to future carbon reduction efforts. The time for action is upon us, and limiting global warming will require all currently available solutions. Turning to our strategic and business development initiatives. At a high level, our growth strategy through 2025 is focused on three areas: growing Natural Climate Solutions to a $100 million per year business, continuing to optimize and invest in our Timberlands portfolio with a target investment of $1 billion, and investing in our Wood Products business to further reduce costs, improve productivity, and grow our lumber production by roughly 5% annually through 2025. Before I go into the details, I want to set the stage with a brief discussion of our next-generation asset value optimization process. AVO, or asset value optimization, is our fundamental approach for maximizing the value of every acre we own. It was originally established several years ago to identify higher and better use properties that generate a premium over timberlands. As we have demonstrated, this AVO program has allowed us to consistently capture significant premiums to timber values through our real estate business. For the past year, we have been focused on developing a next-generation process that enhances our ability to identify and capture value from various timber and non-timber attributes, including carbon, renewable energy, and other Natural Climate Solutions opportunities. We are calling this AVO 2.0. This sophisticated technology-enabled approach, which leverages remote sensing, satellite imagery, machine learning, and other advanced data analytics, has generated step change results in our ability to identify strategic growth opportunities and, most importantly, manage every acre in our portfolio to maximize value across the full suite of attributes and opportunities. I'll begin the discussion of our strategic and business development initiatives with Natural Climate Solutions, one of the most important focus areas of AVO 2.0. There are four primary elements that make up this business. The first two are well-established in our portfolio and include mitigation and conservation and renewable energy. Forest carbon and Carbon Capture and Storage, or CCS, are newer businesses that have the potential to drive significant long-term value as markets develop. We expect to grow Natural Climate Solutions into a $100 million a year business by the end of 2025. This is roughly a fivefold increase from where it is today. Currently, the business is comprised primarily of renewable energy leases and mitigation banking income. Although we are forecasting meaningful growth from these activities in the future, we expect the primary catalyst for growth will be forest carbon and Carbon Capture and Storage, which are currently in early days of market development. It's important to note that our $100 million target does not represent the full potential of this business. Demand for Natural Climate Solutions will span decades, and Weyerhaeuser is uniquely positioned to benefit as the markets develop and expand well beyond 2025. Over the next several minutes, I'll provide a more in-depth look at each of the four components of the Natural Climate Solutions business with some context on the current landscape, future market drivers, and how we expect to participate. I'll begin with forest carbon. Forest carbon offsets can be generated from carbon that is proven to be sequestered, measurable over time, and represents a permanent removal of carbon. Importantly, the carbon stored must be additional. That is, there must be a change in management practices that results in incremental carbon sequestration beyond what would occur under business-as-usual operations. Within North America, the most common project type is improved forest management. This will be our primary focus as we are evaluating potential forest carbon projects within Weyerhaeuser's existing footprint. This means we will consider opportunities to modify certain management practices like silviculture to capture and store more carbon than our baseline carbon inventory within project areas. Developing and managing verified carbon credits is not a trivial process, and all credits are not created equal from an integrity perspective. We are committed to only bringing projects to market that meet the highest level of integrity requirements, ensuring that our credits represent a meaningful carbon removal that clearly contributes to climate change mitigation. I also want to be clear that carbon credits, which I just discussed, are different from the carbon removals described in our carbon record, which Nancy will speak about later today. Our carbon record accounts for both carbon removals and emissions, but it does not necessarily represent a pool of carbon deemed as additional for the purpose of monetization of forest-based carbon credit projects. Let's now discuss the two primary markets where forest carbon credits are transacted. Compliance markets are the result of government regulations to reduce greenhouse gas emissions. In this market, entities trade emission permits or purchase offsets to meet regulatory targets. The best-known U.S. compliance market is California. It is a highly complex, very restrictive, and requires a time commitment in excess of 100 years. In contrast, voluntary markets are not driven by regulatory mandates. This market primarily serves buyers seeking ways to meet carbon reduction commitments such as net zero targets. As more companies publicly commit to climate change mitigation and net zero goals, there'll be a greater need for carbon offsets, which will drive growth in the voluntary markets. We believe the voluntary markets are best suited for the projects we develop, given the complexity and time commitments of the compliance markets. However, the timing and scope of our participation will depend on future carbon prices. Although pricing is highly variable, credit prices in the voluntary market generally range from $5-$10. At this level, only a small number of our acres would generate favorable project economics. We expect the range of candidate acres will expand as carbon pricing continues to improve. Currently, voluntary markets are in early stages of development, but the addressable market is significant. Global net zero commitments today cover about 30 billion metric tons of annual carbon emissions. However, annual carbon credit issuances total only about 1% of the committed volume, and existing compliance mechanisms and emission trading programs will not be sufficient to move the world to net zero. Voluntary market transactions, in particular forestry carbon offsets, are expected to contribute significantly. Last year alone, forestry and land use projects comprised 30% of voluntary credit issuances, and we believe the volume of forest carbon transactions is positioned to grow substantially over the coming years. It is important to note that not all timberlands will be suitable for carbon projects. The value of standing timber differs by region, species type, productivity, and markets. This means the appeal of growing for carbon versus growing for timber will vary by landowner, and even within portfolios of timberlands. With this in mind, we expect owners of low-value timberlands to be the first to participate in the forest carbon markets, given current pricing. The value proposition starts to look more compelling for owners of high-quality timberlands as carbon prices increase and become more competitive with timber prices. As the voluntary market grows and carbon prices increase, a broader group of timber owners will have an alternative to harvesting timber to generate income, which will result in additional competition for fiber and logs in certain wood baskets. This pricing competition should influence timber values over time, which will benefit landowners even without direct participation in the market. I'll close my discussion on forest carbon with a brief outline of the path to monetizing a carbon credit and an update on where we are at along that pathway. Monetizing a carbon credit involves a series of steps. It begins with assessing the carbon potential of a wood basket or region, after which specific projects are identified and documented. The project can then be submitted to a voluntary market registry for verification. After verification is complete, the credits are issued and available for sale. Finally, the seller must manage the carbon inventory for the life of the agreement. Typically, most landowners will outsource their carbon projects to third-party developers. The outsource model makes sense for landowners who don't have a large portfolio of potential carbon projects because of the complexity and the expertise required to bring a project to market. Landowners who outsource this work share a meaningful amount of the economics with the developer. We expect to develop and manage our own projects. Given our scale, timber management expertise, and technology-enabled approach, this will allow us to optimally manage our portfolio of carbon opportunities while capturing the highest value. We have completed initial assessments across the Northeast and for select locations in the West and South, and commenced work to develop potential project scenarios, economics, and timing across multiple candidate areas. As a result of this work, we're initiating a pilot project in New England and positioning other timberlands for potential projects. We expect to have the New England project completed with the option of bringing these credits to market during 2022. Turning now to our carbon capture and storage. In addition to carbon sequestration in our forests, we have a unique opportunity to participate in the development of geologic carbon capture and storage, or CCS. This is enabled by our surface and subsurface ownership in targeted areas in the Gulf Coast region, where CCS development has the most near-term potential. At a high level, CCS is a process where carbon dioxide is captured at the source, typically an industrial facility, and transported along pipelines to a storage location and injected into deep subsurface formations for safe, permanent storage. This process has been used for decades in the oil and gas industry to improve hydrocarbon recovery. The costs have been a significant barrier to broader adoption for just carbon mitigation. A few things have changed which positions CCS for future growth. These include continued advances in technology and infrastructure, significant capital commitments to develop CCS by companies and heavy industries with hard-to-abate carbon, and last, federal tax and direct investment support. This includes recent legislation with specific CCS tax incentives and the new infrastructure bill, which contains nearly $12 billion for large-scale CCS commercialization and pipeline infrastructure. The map on this slide is an example of our AVO 2.0 process. It shows our surface and subsurface ownership combined with proprietary geologic data mapped against major industrial carbon emitters and existing CO2 pipeline infrastructure. Through this process, we have identified the potential for several large-scale CCS hubs on 400,000 acres of Weyerhaeuser surface and subsurface ownership. We now are in discussions with several potential companies that have significant expertise and interest in developing CCS projects on our acreage. Similar to our approach when partnering with developers of solar and wind projects, we do not intend to invest in the development or manage the operations of CCS projects that we enter. Instead, we will benefit from lease and royalty payments, the access to our surface and subsurface ownership. As we think about how this business will develop over the next few years, it is important to note that even with growing market demand and government backing, it will take time to finalize geologic assessments, permits, and infrastructure before projects become operational. As a result, we expect these revenues will begin to emerge towards the end of the 2022 to 2025 timeframe. Last, I'll touch briefly on our renewable energy and mitigation banking business. Through our AVO 2.0 process, we have identified a number of potential new wind sites, primarily in our Western and Northeastern ownership. We've also identified 200,000 additional acres for potential solar development. As is typical in these types of projects, not all areas identified will be developed. It does position us to create a significant project pipeline. Turning to our mitigation banking business, we are one of the largest providers of mitigation services in the Southeast. We have operating banks on over 20,000 acres and additional mitigation projects and entitlement on 11,000 acres. With the expected increase in building and infrastructure required to support population expansion, particularly in the Southeast, demand for mitigation banking is expected to triple by 2030. We are well-positioned to grow our business in that market. Turning now to Timberlands, the second focus area of our growth strategy. Our portfolio optimization and acquisition decisions follow a rigorous analytical process. We have identified using data analytics and market intelligence, a series of targeted investment zones where we see potential to strategically increase or decrease our Timberlands footprint over time. That analysis forms the foundation of our portfolio decisions. We then apply our proprietary data analytics, including many of the AVO 2.0 tools I have described, and our deep boots-on-the-ground understanding of timberland operations and markets to evaluate and prioritize specific investment opportunities. This approach allows us to efficiently pursue Timberlands that fit our strategic profile and provide the highest return opportunities. Over the past year, we have completed four acquisitions and divestitures totaling over $1.2 billion that enhanced the value of our portfolio and demonstrated the benefits of these tools and approach. In our Western Timberlands, we sold lower value, less productive acreage in Southern Oregon and Northern Washington. We also acquired highly productive acreage in Midcoast Oregon, which fits seamlessly into our existing ownership, provides additional timber to our mills, and adds fee volume to our export business. In the South, we acquired high-quality Timberlands in Alabama that are strategically located near our existing ownership and are in attractive pulp and log markets. Although these transactions reduced our Timberlands holdings by 140,000 acres collectively, they resulted in higher annual harvest volume, $30 million of annual EBITDA improvement, and cash yield uplift of nearly 5% that will be sustained over the long term, all while generating additional capital for future redeployment. These recent transactions demonstrate our ability to enhance the value of our Timberlands through disciplined investment and portfolio management. We remain committed to growing the value of our Timberlands over time. Looking forward, we are targeting to invest $1 billion in strategic Timberlands acquisitions focused in the U.S. South and West between now and the end of 2025. These investments will be made with a high level of discipline and rigor, and we expect to generate near-term cash yields comparable to the recent transactions I just discussed. As Devin outlined in his opening remarks, we actively manage all aspects of our value chain, from the integration of our Timberlands and mills to our supply chain and log merchandising, to our marketing and log export program. This competitive advantage drives incremental value from the Timberlands that we operate and enhances our near-term results. Our silviculture and productivity investments allow us to capture additional returns throughout the harvest cycle. As I discussed in previous slides, the sheer size and diversity of our portfolio generates tremendous option value. While we do not include these values in our acquisition underwriting, we have repeatedly demonstrated that we have the expertise to capture additional value from Real Estate, ENR, and conservation opportunities over time. With increasing demand for emerging Natural Climate Solutions, there's an opportunity for even further upside. I'll wrap up the timberland section with some comments on our business development efforts, and specifically our export growth strategy. Weyerhaeuser has a long history of exporting into the Asian markets from our Western timberlands. Building on this experience, operational scale, and supply chain reliability, we are increasing efforts to target new markets for our Western export program. This includes selling high-grade logs to new customers in China and exploring opportunities to sell into additional Asian markets. The Southern markets, as I discussed earlier, are in the best position to respond to growing export demand, not only for logs into the Chinese and Indian markets, but for wood fiber, pulp, and biomass into the Japanese markets. We are also seeing increased interest from non-traditional markets such as Turkey, as well as the Middle East and other parts of East Asia. Today, our southern export program is in the early stages of development. We are well-positioned for increased participation as this growing market continues to develop. Turning now to Wood Products, the final focus area for growth. We have transformed our Wood Products businesses over the last number of years through disciplined capital investments and OpEx improvements. As Devin previously mentioned, we have achieved black at the bottom in Wood Products and delivered peer-leading margin performance across all manufacturing businesses in 2020. Looking forward, our OSB and distribution businesses are well-positioned given the favorable supply-demand outlook. We will continue to improve efficiencies and reduce costs in these businesses. With rising demand for wood-based building, we see additional opportunity to expand our lumber production and enhance our Engineered Wood Products to serve the growing market for these products. Looking specifically at lumber, we expect North American lumber demand will increase by 10 billion board feet or 17% from 2020 to 2025. This is supported by favorable demand fundamentals for new residential construction, particularly single-family housing, as well as repair and remodel and wood-based commercial construction. With Western markets imbalanced and limited ability to add production capacity and continued reduction in Canadian production over time, we expect the U.S. South to serve as the primary supplier of incremental lumber supply. As a result, our southern Timberlands and manufacturing operations are well-positioned to capitalize on this new opportunity. Another area of demand growth is mass timber, which is gaining acceptance in the U.S. and overseas. This trend is supported by the environmental benefits of mass timber and continuing improvements in the production and building processes. As the relative cost in mass timber construction decreases over time and the benefits are demonstrated in larger projects, we expect to see capacity expansion and increasing adoption in construction of commercial and multi-unit buildings. While Weyerhaeuser has no current plans to invest in cross-laminated timber or mass timber panel manufacturing, we do expect to benefit as a supplier of lumber and Engineered Wood Products, which are feedstocks for mass timber construction materials. We view this as a compelling growth opportunity and are strategically positioned to serve this emerging market with our existing product base. Turning now to our lumber portfolio. Several years ago, we made the decision to modernize two of our highly strategic lumber mills, Dierks, Arkansas, and Millport, Alabama. These were relatively low-risk investments in proven operations with strong teams, markets, and fee timber alignment. The projects were completed in 2018 and 2019, and the results have been outstanding. We've reduced controllable costs by 15% and enhanced our product mix. The projects also increased our lumber capacity by 320 million board feet at an attractive cost and have generated an estimated 30% return on investment. Following these strong results, we announced earlier this year a third modernization project at our Holden, Louisiana mill, and an expected completion date in 2023. With the success of Dierks and Millport, and Holden on the horizon, we continue to view investments in our existing businesses as the primary catalyst for enhancing our Wood Products portfolio in the future. This proven strategy serves as a strong foundation for our target to organically grow lumber production by 5% annually. We expect this production growth will be achieved by capturing the full uplift of our Millport and Holden projects, as well as additional disciplined capital investments. We'll continue to position both our lumber and Engineered Wood Products businesses to capitalize on the emerging mass timber market. With our unmatched portfolio of assets, deep expertise, and proven track record, we are well-positioned to achieve these targets. Before handing it back to Devin, I will just summarize the growth strategy we announced today. We are focused in three areas, growing Natural Climate Solutions to a $100 million per year business, continuing to optimize and invest in our timberland portfolio with a target investment of $1 billion, and investing in our Wood Products business to further reduce costs, improve productivity, and grow our lumber production by roughly 5% annually through 2025. This growth strategy is aligned with our investment thesis, and we believe success in each of these areas will enhance portfolio value and shareholder returns. Now I'll turn it over to Devin. Thanks, Russell. A core part of our company strategy for some time has been a relentless focus on achieving industry-leading performance across all of our businesses. This is something that we're focused on each and every day. Today, we'll give you a little more detail on how we will continue to drive performance improvements going forward. Since 2014, we've made tremendous progress on improving our operating performance in each of our businesses. Our unrelenting focus on operational excellence has been at the heart of this improvement. Across the company, we've been working to attain an industry-leading cost structure, driving superior execution in everything we do, and identifying opportunities for future improvements. OpEx has become part of our culture and is now deeply ingrained in our organizational DNA. Over the past couple of years, we've also increased our focus on innovation. I'm encouraged by the progress we're making, and we are now starting to really leverage innovation to accelerate improvements in all parts of the company. OpEx and innovation will be the primary drivers for our operating performance improvements going forward. I think the OpEx and innovation culture that we're building will be a sustainable competitive advantage for us well into the future. As a reminder, the foundation of OpEx at Weyerhaeuser has always been cost control and margin improvement. That was the focus when we initiated the first operational excellence program back in 2014, and it will undoubtedly continue to be a core part of OpEx going forward. As OpEx continues to evolve into what we call OpEx 2.0, we've broadened our approach for driving operational excellence and incremental value. Specifically, we've added future value creation, which is important for any company, but certainly that's true for a long-term business such as ours. We've also included cost avoidance and efficiency as part of OpEx 2.0, as we believe that incentivizing these activities will create a better business today, but also position us well for the future. We're always looking for more opportunities to drive cross-business synergies and improvements throughout our integrated supply chain. Over the last several years, operational excellence has become a core part of who we are as a company. In fact, during a recent employee survey, 95% of our employees indicated that they understood how their work contributed to our OpEx goals. That level of alignment is a great indicator of how deeply ingrained this is within the organization. Our OpEx 2.0 efforts are supported by an increased level of focus on innovation at the company. We've been working to foster an innovative culture across our businesses and our functions. We've implemented new tools to better engage our workforce around innovation. We've also been increasing the role that innovation, both big and small, plays in how we run our business on a day-to-day basis. I'm really excited about the progress that we've been making on this front. I've highlighted just a few examples here in the slide of innovation that are driving improvements in our businesses today. From increasing mechanization in steep-slope logging out West to leveraging drones for a wide variety of forestry applications, we are seeing improvements across our Timberlands business. On the Wood Products side, we've been increasing our usage of automation and leveraging artificial intelligence to drive efficiencies and performance improvements in our mills. We've also been working on some proprietary tools and processes for drying lumber, which is allowing us to capture more value and increase the amount of higher-value product that we produce at the mills. These are just a few examples, but I believe that our innovation program is a very valuable source of competitive advantage and for Weyerhaeuser to set us up well for the future. Ultimately, these efforts are all about results. As you can see, we've delivered meaningful improvements across our businesses. Through 2020, we've captured $750 million of OpEx improvements. We've achieved black at the bottom in our manufacturing businesses, meaning we're positioned to be cash flow positive even in a historic downturn like the Great Recession. We've delivered record results both in terms of cost structure and EBITDA generation. From an EBITDA benchmarking standpoint, we were number one and number two in all of our businesses in 2020, including being number one across all of our manufacturing businesses. I'd also note we haven't stopped there. We've targeted another $50 million-$75 million of OpEx improvements for 2021. Our OpEx and innovation efforts have been paying off in terms of improved operating performance, and we are fully committed to ongoing improvement in the future. Looking forward, we will continue to focus on leveraging OpEx and innovation. This will include maintaining an industry-leading cost structure, increasing the mix of higher-value products, and improving reliability across our manufacturing operations. We plan to further reduce our controllable costs in our lumber business by approximately 10% and our OSB business by approximately 5% by the end of 2025. ESG progress and take pride in efforts toward improving our ESG performance and scores and increasing our disclosures. In 2020 alone, we achieved significant year-over-year improvements in our S&P Global, MSCI, and ISS scores, as well as several others as a result of our improved performance and disclosure. We have worked hard to set and achieve ambitious sustainability goals, and this effort has earned us a myriad of external recognitions that we're very proud of. In addition to these specific awards and recognitions, we're also part of numerous ESG and socially responsible investment indices. In summary, we have a long history of operating with a strong ESG foundation. It's part of our strategy, and we are uniquely positioned with our Natural Climate Solutions business to grow as carbon markets develop. With the announcements today on our carbon record and setting a Science-Based Emissions Reduction Target, we have further enhanced our industry-leading position as a premier ESG investment opportunity. Now I'm excited to talk to you about our ability to create value for shareholders through disciplined capital allocation, including the announcements we made earlier today. I'll start with a quick review of our balanced capital allocation philosophy. At Weyerhaeuser, we have three key priorities for capital allocation. Returning cash to shareholders, primarily through our dividend framework, but also through opportunistic share repurchase. Investing in our businesses through disciplined high return capital projects and value-enhancing growth opportunities, all while maintaining an appropriate capital structure. Over the past 18 months, we've taken strategic actions in all of these areas to position Weyerhaeuser to deliver superior long-term value for our shareholders. We implemented a new dividend framework that enhances our ability to return meaningful and appropriate amounts of cash to our shareholders across market cycles. We made disciplined investments to undertake additional high return capital projects to enhance the value of our portfolio, and we strengthened significantly our balance sheet. I'll spend a few moments on each of these areas, beginning with our dividend framework. Our framework targets a payout ratio of 75%-80% of our annual adjusted funds available for distribution, or FAD. This underscores our commitment to return a significant portion of our free cash flow back to shareholders. The framework includes two components. First is our sustainable quarterly base dividend, which is currently set at $0.17 per share. It's supported by the steady cash flow from our Timberlands, Real Estate, and ENR segments. Our base dividend is sustainable across market cycles, and we're committed to growing it over time. We'll supplement the base dividend each year with an additional return of cash to achieve the targeted 75%-80% of adjusted FAD. We expect to achieve this primarily through a variable supplemental cash dividend, which is largely tied to performance from our Wood Products segment. The supplemental dividend will normally be paid in the first quarter of each year based on prior year cash flow. Under certain circumstances, we may also utilize opportunistic share repurchase to return cash to shareholders. Next, I'll talk briefly about our capital expenditures, which are organic investments to sustain and enhance our Wood Products and Timberlands operations. These disciplined investments have been a key driver of the operating improvements and cost reductions that Devin talked about earlier and will support continued OpEx improvements into the future. For 2021, we continue to anticipate $460 million of CapEx, and this includes the beginning phase of our recently announced Holden sawmill modernization project. Looking forward, we expect our 2022 to 2025 annual CapEx level to be moderately lower than 2021, somewhere in the range of $420 million-$440 million. This level of investment includes CapEx required to support the growth targets that Russell previously discussed, and it demonstrates the low capital intensity of our growth strategy for those businesses. Now let's discuss our capital structure. Core to this is maintaining a solid investment-grade credit profile. We ended the second quarter of 2021 with approximately $1.8 billion of cash and a leverage ratio well below our target of 3.5 times. Over the past 18 months, we've paid down $1.1 billion of debt and reduced our pension liability by almost $800 million. We also plan to retire $150 million of debt when it matures in the fourth quarter. With these actions, we have strengthened our balance sheet, enhanced our credit profile, and created significant flexibility and dry powder in the form of debt capacity. This positions us to strategically deploy capital to grow the value of our portfolio and our returns to shareholders. I'll move now to a brief summary of our year-to-date cash flow generation and today's announcement that we have declared an interim supplemental dividend. Our financial results in the first half of 2021 were truly unprecedented. We generated over $2 billion of cash from operations, our highest first-half operating cash flow on record, as lumber and OSB prices surged to historic highs during May and June. Adjusted FAD through the second quarter totaled nearly $1.9 billion. Assuming the midpoint of our targeted 75%-80% payout ratio, that translates to nearly $1.5 billion of cash earmarked for our shareholder returns through a combination of our base plus variable supplemental dividend. We've returned $255 million of base dividends through mid-year of 2021, leaving approximately $1.2 billion of cash, or $1.60 per share, already earmarked for the variable supplemental component of our dividend. As I previously stated, our intention is to generally pay the full supplemental dividend annually in the first quarter based on the prior year's cash flow. Given the strength of the first-half financial results and a good line of sight to full-year cash generation, we are accelerating a small portion of our first quarter 2022 accumulated supplemental dividend for payment in the fourth quarter of this year. This morning, we announced that our board of directors has declared a one-time interim supplemental cash dividend of $0.50 per share, payable on October 19th, 2021, to shareholders of record as of close of business on October 5th, 2021. I want to emphasize that this is a one-time off-cycle cash return. It should not be interpreted as a change to our commitment to generally pay the entirety of our supplemental dividend on an annual basis in the first quarter. The interim dividend enables our shareholders to benefit from extraordinary market conditions with a supplemental dividend in the first calendar year of our new dividend framework. Additionally, the specific amount of the dividend allows us to take advantage of a one-time tax planning opportunity to enhance our future NOL capacity. We're excited to accelerate this return of cash, and we also look forward to delivering a meaningful supplemental dividend in the first quarter of 2022. After the interim supplemental dividend is paid next month, there remains an impressive $1.10 per share of supplemental dividend earmarked for payment in the first quarter of 2022. This is prior to the contribution from our second-half 2021 results. I'll now discuss our expected full-year dividend payments for 2021 and 2022. Combining the interim supplemental dividend announcement today and a full year of our base quarterly dividends, we expect our 2021 dividend payments will total $1.18 per share. This level of payout translates to an attractive dividend yield at our current share price. Looking forward to 2022, we're on pace to return more than $1.78 per share of dividends next year. Our base dividend is currently $0.68 on an annualized basis, and w e anticipate this amount will increase next year. I'll discuss that more in a minute. We also expect our variable supplemental dividend will increase beyond the $1.10 currently earmarked due to an incremental contribution from our second-half 2021 results. This level of payout will generate a 2022 dividend yield that is well in excess of what we expect to deliver in 2021. It's worth noting that we anticipate second-half 2021 adjusted FAD will be lower than the first half of 2021, primarily due to lower average price realizations for lumber and OSB, as well as higher capital expenditures in the second half of the year. Let's now spend a few minutes on our base dividend, specifically our plan to grow it over time. Since establishing our new dividend framework in late 2020, it's been our intention to grow the base dividend as we generate incremental cash flow that's sustainable across market cycles. The portfolio growth and OpEx targets that Russell and Devin have outlined will sustainably increase our annual cash flow generation over the next several years. Today we are committing to grow our base dividend by approximately 5% annually, beginning in 2022 and through 2025 as we make progress against those targets. We're excited to make this commitment in the first year of our new dividend framework, and we believe it underscores our ability to prudently return meaningful and growing amounts of cash to shareholders. I'll now briefly summarize the components of our total dividend framework and recap what investors can expect between now and year-end 2025. I've already talked about the foundation of this framework, which is our growing base dividend, sustainable and supported by our Timberlands, Real Estate, and ENR segments. We add a variable supplemental dividend that's supported by strong Wood Products earnings power. With our proven ability to be black at the bottom in our Wood Products business, we have confidence that we'll deliver an annual supplemental dividend across most market conditions. In summary, we're incredibly excited about the near and long-term benefits of this dividend structure for our shareholders, and we look forward to returning meaningful amounts of cash through this framework across market cycles. I'll wrap up this morning with the discussion of share repurchase. We believe share repurchase is a meaningful tool for returning capital to shareholders under certain circumstances, and we look to repurchase shares opportunistically when we believe it will create significant value. Entering the third quarter, we had $440 million of authorization remaining under our existing $500 million repurchase program. As you can see on the slide, we've executed on that authorization during the third quarter. With the new billion-dollar authorization announced today, we have significant flexibility to opportunistically repurchase shares. We're committed to allocating capital for this purpose as we look to maximize shareholder value within our overall capital allocation framework. In summary, driving superior long-term value for shareholders through disciplined and balanced capital allocation is the fourth lever in our investment thesis. The actions we've taken over the past 18 months have positioned us well for the future. With our new announcements today, we're further demonstrating our commitment to return meaningful and appropriate amounts of cash to shareholders across market cycles, while also investing to grow the company over time. Now I'll turn it over to Devin for some closing remarks. Thank you, Nancy. Over the past few years, we've made significant progress on improving our portfolio and achieving industry-leading performance. We've continued to build on our strong ESG foundation and have taken a number of actions to strengthen our balance sheet, invest in our businesses, and have positioned Weyerhaeuser to return significant amounts of cash to our shareholders. Today, we detailed a number of strategic actions to enhance shareholder value over the coming years. These actions and related multi-year targets will support the growth of our company and our cash flows, improve our competitive position in the marketplace, and further differentiate our company as a leader in ESG. These actions will also ensure that we continue to return meaningful amounts of cash to our shareholders through a growing base dividend, a variable supplemental dividend that allows shareholders to continue to benefit from Wood Products markets, and through opportunistic share repurchase, all while continuing to invest in our businesses and maintain an appropriate capital structure. In summary, with our unmatched portfolio, our industry-leading performance, our strong ESG foundation, and our disciplined capital allocation approach, combined with the strategic actions that we've outlined today to further improve in each of these areas, we are well positioned to drive superior total shareholder returns for our investors in the years to come. We will now take a brief 5-minute break to set up for the question and answers period. We'll be back shortly, and we'll look forward to taking your questions. Welcome back, everyone. We'll go ahead and get started with the question and answers here momentarily. Just a brief note, I understand that there was an issue with the webcast, that may have gone down for a few minutes. I will remind you that the full webcast will be available on our website as soon as the event ends. We're sorry about that. Let's go ahead and move on to the Q&A period. Just a couple of brief notes. We'll be taking live questions via audio. You can also enter questions in through the webcast platform as well. I would ask for those that are asking questions over the phone, if you could limit it to just one question and one follow-up, that way we can get through as many questions as possible. With that, I think we'll go ahead and kick it over to the operator to get us started. We will now begin the question and answer sessions. To ask your question by telephone, you may press star then one. If you are using a speaker phone, please take out your handset before pressing the key. To withdraw your question, please press star then two. Our first question today comes from George Staphos with Bank of America. Thanks, operator. Jim and Nancy, Russell, t hanks for the details. Appreciate the presentation and congratulations on the progress so far. Thanks. I want to spend the first question on your target. Having targets is wonderful. Yeah How do you guard against the unintended consequences of having to keep up with a 5% dividend growth rate on the regular dividend, or the billion-dollar investment program, which is obviously tied to that? How aligned is the dividend growth to the program? Would you reconsider the program over time if the investment opportunities aren't yielding the return that you'd want it? That's general question one. General question two is, how do you plan on reporting on Natural Climate Solutions? Will this be a separate business line item, or will you report it within one of the segments? Will you consider managing project areas for carbon inventory for others? Just purely for Weyerhaeuser? Thank you. Yeah. Thanks for the question, George. Maybe Nancy and I will tag-team the first part, and then we'll turn it over to Russell for the second question. Nancy, you wanna talk about the confidence level and the dividend target that we put out there? As we've said, any growth in our base dividend would come from growth in our steady Timberlands and Real Estate and ENR business segments. With today's announcement about the targeted Timberlands acquisitions over the next several years through 2025, as well as the growth in our Natural Climate Solutions business, those will support this 5% annual growth in our base dividend. Things like lower interest payments and operating OpEx sustainable performance improvements will also contribute to that. We modeled several different scenarios and sensitivities under different market conditions and specific business objectives, and we feel confident that we'll be able to fund a 5% annual growth in our base dividend through 2025. Great, Nancy. Russell, you wanna talk about the carbon business? Sure. George, I think you had a couple of questions there. If I missed one of them, please repeat. I think your first question was, in relation to the billion-dollar investment. I believe that was focused on the timber side. As we look at that opportunity, we're going to be very disciplined. We think that the billion-dollar fits within our profile. We've been in the market, we've been active in the market both on the buy side and the sell side. Looking at the strategic areas where we want to invest, we think the billion-dollar makes sense. We're only going to do deals that make sense to create value for the portfolio. We'll be very disciplined in that regard. As far as managing carbon for others or I think on other projects, our focus is going to be on our portfolio. We can go into that in a little more detail later. As far as our reporting segments, we're not going to change our current reporting segment. We basically have the Natural Climate Solutions. The current $22 million is sitting within our Energy & Natural Resources, and then our mitigation banking and our conservation is within the Real Estate program. Today, given the size, it just makes sense to have it within the existing segment. On an annual basis, we'll report our progress against our targets, and then as the business grows, if it makes sense to break that out as a separate segment, we may consider that sometime in the future. We'll provide you updates on a regular basis as to our progress. Terrific. I guess in summary, George. Thank you. The targets we put out, we certainly feel that they're aggressive, but we feel very confident in our ability to meet those. We have a lot of work ahead of us but feel very good about our ability to deliver on those. Thank you. Our next question comes from Anthony Pettinari with Citi. Good afternoon. Thanks for all the detail. On Timberlands optimization, is it possible to talk a little bit more about where you're seeing the most attractive opportunities for acquisitions, maybe especially in the U.S. South? Are there sub-regions where Weyerhaeuser is underrepresented or maybe on the other hand, where you look to accelerate divestitures? Is it possible to kind of frame that against your outlook for future southern log price improvement, which has maybe lagged expectations over the last decade? Russell, you want to take that? Sure. Yeah, the way I would look at our portfolio is we're in every major growing timber area in the U.S., in the West and in the South. We have a very broad perspective across all of our portfolio and across all the major timber growing regions. Given that we have a unique kind of opportunity to see what is coming to the market and how those values are trading and really how the operations work within those regions. Again, we look at every opportunity within our ownership. We look very closely at how it matches with our manufacturing base, and then we identify the strategic locations where we wanted to invest. As we've demonstrated in the past, we may divest. That portfolio optimization is an ongoing process both on the buy side and on the sell side. I would say that as we've announced, we're going to be pursuing in a billion dollars of transactions through 2025, that we're going to be a net buyer over the next number of years. That would be the expectations. If there's an opportunity or we see a need to divest of a property and reinvest, that's something we'll also consider. Our focus will be in the West and in the South. Again, we have a lot of opportunities throughout both of those regions. Got it. Just the billion-dollar investment program and the dividend growth, does that assume some level of southern log price improvement over the next few years? Is there a certain benchmark, whether it's an inventory level or a level of housing starts or that you think that we need to see before we see more price tension in the South? Yeah, a couple of comments there. Certainly, as we think about the go-forward plan, there is some recovery in southern sawlog that is baked into that. As we said, over the last several years, it's been slower to come back than we would have expected. That being said, we are seeing continued growth in the U.S. South in terms of new capacity coming into that region. We're seeing more opportunities around export. Our view of the long term is that we are going to see southern sawlog prices continue to grow and improve. In terms of how that's going to fund the dividend growth that we've laid out, we've been pretty modest in our internal modeling just because we want to make sure that we're able to meet that 5%. In other words, we don't need significant log price appreciation in order to meet that 5% dividend growth. Again, we do believe southern sawlog pricing will improve over time. Okay. That's very helpful. I'll turn it over. Our next question comes from Susan Maklari with Goldman Sachs. Thank you. Good afternoon, everyone, and thanks for taking the questions. Absolutely. My first question is, thinking about the goal that you talked about within Climate Solutions. Could that perhaps change or in any way influence where you're kind of targeting in terms of geographies for timberland acquisitions? You mentioned in the commentary that you've got a pilot program in New England. Does this suggest maybe that you're open to more geographies or incrementally focused on growing areas that you haven't been maybe expanding as rapidly in the last few years? Yeah, Russell. Yeah. What I would say is that's an interesting question. Our primary focus in our acquisitions is really on the near term and the midterm, and the long-term returns that are really specific to the Timberlands operations. If you recall, in the one graph I showed what are the option values that we're pursuing through our AVO 2.0 in bringing those forward, and that's really where a lot of the Natural Climate Solutions focus is. As far as acquiring with that thesis today, I would say that would be outside of our underlying economic evaluation or underwriting. It's an opportunity that we see as a potential for the future. I think as we've demonstrated in the past, we've done a really good job of capturing those alternative values through our real estate program and our ENR program. All I'd say is something we're definitely paying attention to as we think about the investment thesis and our approach over the next number of years. It won't be included in the underwriting and the valuation analytics. Yeah. The only thing I would even add to that, Susan, is just certainly that's true with respect to the near term, but one of the things that's really exciting about the AVO 2.0 work that Russell and his team are doing is it just opens up a whole another level of optionality across the land base. We're focused on capturing that value with our existing land base, and I do think over time, that will ultimately become a bigger player in terms of how we think about our A&D activity. Really exciting work there. It's going to feed, I think, a lot of how we think about acquisitions and divestitures into the future. Okay. That's helpful. My follow-up question is kind of shifting gears. You obviously announced the billion-dollar repurchase authorization this morning. Can you just talk a little bit to the timing of working through that? Anything that we should be thinking about there? Maybe a little bit more in terms of where the buyback and the authorization, using the authorization kind of fits within your overall thoughts on capital allocation. Is there any increased interest in kind of working through that, maybe a little faster than you have in the past? Nancy, you want to cover that? Yeah, sure. As we've said, we think share repurchases is a good tool for delivering return of capital back to shareholders under certain circumstances. Specifically, that's when it's the best option to create shareholder value. The primary rationale for our increase in the authority to a billion dollars today was to give us more flexibility to be opportunistic about buying back shares. That's flexibility in terms of both the amount, up to a billion dollars of share repurchase, and also the timing, to allow us to move quickly when we see the opportunity arise. We're not going to set a specific amount or a certain timeframe. We're going to continue to look at share repurchase on an opportunistic level in terms of when it creates shareholder value. Okay? Okay, great. Thank you. I'll reach to you. Thanks. Our next question comes from Mark Weintraub with Seaport. Thank you. Thanks for the very interesting presentation. One question on the $80 million of incremental EBITDA you're expecting from the, I think primarily as far as carbon and CCS. Can you give a sense, is that based on things that are already visible? Or does it depend on new development? Yeah, Mark. The way I would think about the $80 million, right now the business is at about $22 million. That $80 million kind of growth is going to be centered really in three areas. The first is in the renewable energy. As I mentioned, we're having significant demand for solar installations in the Southeast, and we've been working on that kind of pipeline of potential projects and bringing developers in for really a couple years. We'll start seeing that come to market in the near term. On the mitigation banking, we have a very active program. We continue to build out our mitigation credits as we see the Southeast continue to grow and demand continue to expand. We're starting to serve that market, and that business is starting to grow. I think in the near term, that will also make contributions. When you look at the carbon forestry and the Carbon Capture and Sequestration, the carbon forestry market is still pretty small. You saw the growth that we're projecting or we're expecting to $50 billion. I've seen estimates that are growing to $100 billion. We're definitely in the early stages of the growth of that market. As that grows, we're going to expect prices to increase. Our focus has been to AVO our whole carbon opportunity within our portfolio, so that when prices reach that point where it makes sense, we can readily act and bring projects to market. We only have a small pilot project up in the Northeast that we're expecting to bring into market in 2022. On the Carbon Capture and Storage, the reason that is so unique is that we have a very unique ownership in the Gulf South, and so we're working with potential developers to really accelerate the development of some of those projects in the Gulf South. I would expect that we'll sign contracts in kind of the early 2022 timeframe, and it will take a couple years to get those geological assessments done, the permitting, and the infrastructure installed, and the operations going. In the interim, we should see some cash flows from lease payments, right-of-ways, et cetera. The real cash flow generation from that will be when we actually start seeing carbon injected into the subsurface ownership. Okay. Just trying to think big picture, the longer-term growth opportunity, is that forest carbon, is that the one that's yet to be developed but ultimately can be the biggest potential source? In that context, I think you talked about 10 million, I forget the denomination, but 10 million tons or something in 2020. Is that a standard type number? Your harvest was lower than normal last year, that's not something that we should look at as a regular ongoing type number. How does one think about beginning to scope- Right The potential value from that carbon capture? Sure. The way I would think about it. From a forest product. We definitely feel that there's more opportunity to grow beyond just our 2025 target. I think that's really going to be driven by the renewables, because there's going to be a lot of renewable energy demand as states put forward their renewable energy requirements. I think it's in the carbon in the forestry, and then also in the Carbon Capture and Storage. I think those are going to be the future growth beyond what we're projecting in the 2025 timeframe. That will definitely be the focus. As far as how to dimension it, again, we're going through our AVO 2.0 process to identify all of the carbon opportunities. As I mentioned, we're really focused on what we call Improved Forest Management. It's the carbon that you capture as a result of changing your silviculture or your forestry practices. That carbon is actually built out over 20 years of the 40-year contract. As we bring more projects to market, you'll see a pipeline develop of carbon projects, and then it will be additive over that period of time. You'll see a kind of a long cash flow profile building over time, and obviously, it's going to be dependent on carbon prices. Does that kind of answer your question, Mark? It does. Maybe, and I apologize for this, but you made a reference to a $5 or $10 per unit. Okay. How does that relate to this conversation? Yeah as it is currently? Yeah. The reference to the $5-$10 is, right now, the carbon market is in early stages, and so there's a number of protocols, registries. As you look at where carbon is trading, and granted, it's still early, so price transparency isn't really there. A lot of the pricing that you're seeing is based on surveys, because in the voluntary market, a lot of it is over-the-counter trading. Looking at the surveys, it's anywhere from $5-$10. I will point to a recent survey that came out that showed the carbon pricing in the American Carbon Registry, which is one that we're looking at very closely, is now at about between $11-$12. As we start seeing carbon prices increase, then we'll start thinking about, okay, which projects are appropriate to bring into the market? I will say at $11 or $12, we'll probably bring that pilot project that we're working on in the Northeast. That might make sense at that stage to kind of get a feel for how these projects operate, how we actually manage it over time. Okay. I'll stop there. Thank you. Thanks, Mark. Thanks, Mark. Our next question comes from Mark Wilde with BMO. Good morning, Devin, Nancy, Russell. Morning. Morning. Devin, I wonder, to start off, the growth in the lumber business that you're talking about, which looks like about 800 million board feet by 2025 from this year's base, is that likely to be just debottlenecking in some of these rebuilds, or could that possibly be a new greenfield? Yeah, Mark. That incremental lumber production is coming just through organic growth within our existing mill footprint. We've got the Holden project, which we've announced, which is a brownfield modernization project, which is about 100 million board feet. We've got about 50 million board feet of additional production coming from the Millport project as we ramp that up to full production. The rest of that is really just coming through debottlenecking, improving rates, improving reliability, just the sort of normal capital projects that we have in our existing mill footprint. We don't have any greenfield projects in that. No more big modernization projects. It's really just replicating projects that we've already done in the mill set. Okay, that's helpful. Nancy, I wondered if you could just put a little more color around that NOL structure that you mentioned, the levy that pulls forward a portion of the variable dividend, and sort of how you just thought about that decision, in the context of also at the same, trying to establish some kind of predictability around Weyerhaeuser's dividend strategy. I mean, you had just rolled this out in the fourth quarter of last year. You've already made a kind of a one-time modification here. Just to help us think a little bit about that balancing act between wanting to be kind of financially rational to take advantage of situations like that, but at the same time, being consistent and predictable for investors. Yeah, sure. Thanks, Mark. We've said, normally we would be paying the supplemental dividend annually in the first quarter following the prior year's results. We really do that to ensure we're aligning the supplemental dividend with the cash we're generating from operations. This year was unusual With unprecedented first-half financial performance driven by the Wood Products pricing environment. Our decision to pay an interim dividend was to enable our shareholders to benefit from this extraordinary market condition. It's in the first calendar year of our new dividend framework. From that standpoint, we feel like it's pretty good news. Additionally, the $0.50 per share level allowed us to optimize our NOL capacity. It's a one-time tax planning opportunity, as we said. What it means is basically, if we hadn't paid an interim, then we would be utilizing our NOLs this year. By paying an interim $0.50 per share at that level, that allows us to preserve our NOL capacity that otherwise wouldn't be available in 2022. That's really why it's a one-time opportunity. Going forward, as we talked about, there's still the majority of the supplemental dividend to be paid and earmarked for the first quarter of 2022. Okay, that's helpful, t hanks, Nancy. I'll turn it over. Thanks. Our next question comes from Mark Connelly with Stephens. Thank you. As Russell pointed out, a severe housing construction deficit has been in place for some time now, and so have predictions that we're going to reverse it and get a big housing boom. What gives you confidence that the barriers to the higher housing starts are really behind us? Is it just this incredible pickup in pent-up demand? Yeah, I think there are a few things that go into that. No question, we've been talking about this dramatic uptick in housing for a number of years. I think everyone agrees that there is a significant amount of pent-up demand for housing. We're seeing that in the market today. We talk to the home builders all the time. The demand is certainly there for more home building. In fact, whether you think we're underbuilt by three million units or five million units, we're going to really have to elevate the level of building in the U.S. to catch up on that anytime in the foreseeable future. I think the demand signal is there. I think people generally agree on that. The challenge has been overcoming some of these supply-side challenges. That's really been the story over the last three, four, five years. What we've seen is each year we gradually improve. We build a little bit more housing year after year. We've gotten to the point now where certainly we think we're going to be well above 1.5 million housing starts for the year. I think that the supply-side challenges, they're not completely going away. It's just a matter of each year, the home builders find some incremental capacity to keep driving that up over time. Obviously, I think we could be building at a much higher level today if it weren't for some of the supply-side challenges. I have a lot of confidence in talking with the home builders that they've got a line of sight on how they're going to continue to grow the amount of home production that they've got in the pipeline over the coming years. I think it's just going to be gradual year-over-year improvement. Ultimately, again, we have a lot of homes that we have to build here in the United States, and so we have a very bullish outlook over the next 5- 10 years. That's helpful. Just as a follow-up, Nancy, how should we think about the primary drivers of buyback activity? This is going to be an opportunistic program. I'm sort of hoping you could help us understand the funding and utilization triggers other than just the cheap stock. Sure. Thanks for that follow-up question. We see it, as you said, as a good tool when it's an opportunity to create shareholder value. It's one of many tools in our capital allocation framework. That's why the flexibility in allowing us to go up to a billion dollars, and it's fair to say you can read into that we believe there are opportunities where we could buy back shares in addition to the previous authorization limit, which was that we had about $400 million left. Look, we're not going to give a number. In Q3, as we shared in the slides, we did start to buy back shares. We'll give a full report in our third-quarter earnings when we release. Again, it's really about having that flexibility and opportunistically buying back shares. Great. Thank you. Okay. Our next question will come from the webcast. Thank you. I'll paraphrase the question here. Many companies outside the forest products industry now seek to plant trees to support carbon neutrality goals by 2030 through 2050. Is Weyerhaeuser considering a program to manage the tree farms of non-forest products companies? Russell, why don't you take that question? Sure. Yeah. Tree planting has become very popular. We think that's good. A lot of companies are looking to enter programs like the Trillion Tree program, or we're seeing other companies even invest in afforestation-type programs. As I mentioned, as we look at the carbon opportunity on our Weyerhaeuser portfolio, it's really around the improved forest management. It's managing the existing timber stands to incrementally grow carbon so that we can then take that to the carbon markets. Afforestation is a very different model. The cash flows associated with that are very long-term. We really don't have any property or Timberlands that meet those requirements. The opportunity, I think, is going to be focused really on our existing portfolio. We'll watch that continue to develop. Again, it's early stages in this whole program, and if there's opportunities to participate in afforestation type program or partner with somebody in that regard, we would assess that. Today, our focus is really going to be on our portfolio and the carbon optionality within that portfolio. Thank you. One more question from the webcast. Does the targeted 75%-80% return of adjusted FAD just include dividends, or are share repurchases also included in that total? Yeah, sure. The way that the dividend framework is set up is to give us some flexibility to utilize share repurchase as part of that 75%-80%. We think that flexibility can be very helpful as we are returning cash to shareholders under different market conditions. I would say in year one, so for this year, the first year of our dividend framework, the full 75%-80% will come via dividends, so the base plus supplemental dividend. That share repurchase, anything we do will be over and above that 75%-80%. Again, we do have that kind of flexibility in the future if the market conditions warrant using it in that way. Our next question is going to be a follow-up on the phone line from George Staphos with Bank of America. Thanks very much. I wanted to come back to the OpEx targets of $175 million-$200 million over your planning horizon. The company's done a terrific job over the last number of years. I think the figure is $750 million cumulatively, and in recent years of the benefit that you've created. In recent years, you said, Devin, that a lot of the programs now are really coming bottoms up, and even I think in answering one of the questions you mentioned, you're not looking at it as Mark's question, not any large projects, but rather organic. Can you talk to us a bit about how this next tranche of projects might differ from what we've seen the last couple of years, and how confident, again, that you can hit that kind of number, given that you've already been so successful with this $750 million cumulatively so far? I have a follow-on. Well, look, OpEx has been one of the remarkable aspects of our strategy over the last several years. We've captured a lot of value through hard work in really every corner of the business. I would say, unlike when we first started OpEx back in 2014, where it was very much a top-down driven goal and target, at this point, the way those targets are developed is every mill, every operating area in Timberlands has a five-year roadmap to get to top quartile performance. Those OpEx targets are really built from those individual roadmaps. Each mill, each operating area has a number of specific targets that they need to achieve, and that gap closure is really what drives the OpEx number. It really cuts across all parts of the supply chain, from continuing to automate and mechanize our logging in the West, really working on how we do road building to drive those costs down, silviculture execution improvements all the way through the mill, and the blocking and tackling around driving reliability across the mill set, leveraging new technologies to drive efficiencies. It really has become part of the DNA of the organization. We have a lot of confidence in our ability to get to that $175 million-$250 million. Those projects are really coming across the board from every part of the organization. We've had even more momentum, I would say, on OpEx after we rolled out OpEx 2.0. The other thing is, we've really been increasing our focus on innovation, I think those efforts will generate more OpEx opportunities and ideas and ways to drive efficiencies, reliability, cost reductions throughout the system. A lot of work going on there, very exciting. Again, we have a lot of confidence in our ability to continue to execute on those OpEx programs. Thanks, Devin. Kind of a larger picture question in terms of the carbon opportunity ahead of you and some of the things that will go along with it. Again, really appreciate the detail that you gave us on the presentation around that. First, with the mitigation banks, to the extent that this becomes a larger and larger program, not just for Weyerhaeuser, but for other companies perhaps, will that ultimately engender more regulation from an environmental standpoint? as you're depositing carbon into the ground? Anything that we need to factor into our thought process for Weyerhaeuser around that regard? Then, as you think about afforestation programs and carbon capture, and again, it's laudable that we are now focused on that as you are as a company and as a society, that also could be somewhat deflationary over time for timber if there's not a sufficient amount of growth in wood products demand. As you look out longer term. What do you think the long-term growth rate is going to be for wood and wood fiber that will help to balance the growth of forests and prevent deflation in some of your key products? Thank you, guys, and good luck the rest of the presentation. Maybe I'll take the first part, and then you can speak to the regulatory impacts as some of the things that we're thinking about. There's a balance, certainly, and as we use the forest to sequester carbon, there may be some impacts to the overall availability of timber. I would say, on balance, our view is when you think about operating in a world that is focused on global warming and climate change, one of the best building materials that you can find anywhere, bar none, is wood. There is a growing appreciation for the benefits of building with wood. I think, and I think our view is, over time, this conversation is going to drive more demand for Wood Products, not less. That's kind of how we think about that. Maybe you want to speak to the regulatory impacts of some of these things. Yeah. George, specific to carbon, I think on the carbon forestry side, there are very strict protocols that are in place for you to bring a project to the market and actually transact on the carbon credits. These are in the voluntary markets, not in the compliance markets. The compliance markets are even more stringent as far as timeline, et cetera. I think the protocols that are being established for the voluntary market are very appropriate. I would expect to see those voluntary markets to continue to grow over time and not necessarily see a regulatory overlay within there. Some of the regulatory requirements, depending on where they're directed for emission reductions or greenhouse gas mitigation, may influence the way those markets grow and price. I don't see that being a significant impact in the development of the voluntary markets in the near term. On the Carbon Capture and Sequestration, definitely we're going to see probably a pretty state-level regulatory framework around that to ensure that as you establish the infrastructure, do the injection, that the geological formations are going to work as prescribed, that it's going to store the carbon permanently for a long, long time. Yes, we would expect to see a regulatory framework, that is being developed because it is different than the oil and gas regulatory framework that is currently in place. That regulatory framework is forming around the Carbon Capture and Sequestration. I think with the demand for Carbon Capture and Sequestration, because when you really look at what is available for carbon mitigation, first up is forests, then really next in line is the Carbon Capture and Sequestration. I think you'll see a very appropriate response, particularly since the federal government is now directing capital, I mentioned $12 billion, towards the development of the infrastructure for carbon capture and storage. I don't think it'll be a framework that will be unmanageable. I think we'll be able to manage through it, and our partners, our development partners, will be able to manage through it effectively. Thanks, Russell. Yeah, it was the CCS that I was really interested in. Yeah. Thanks very much. Great. Our next question is a follow-up from Susan Maklari with Goldman Sachs. Thank you. One of the things that we hear a lot from home builders is the value that they see in the EWP product as it reduces the labor content, helps them maybe build a bit faster than they would with some of the other products that are out there or alternatives. Can you maybe talk to any opportunities that you see to kind of further add value to the construction process, maybe the ability to expand that portfolio at all, or anything that's in there that perhaps could kind of just increase your ability to capture some of that growth that's coming through in housing? Yeah, absolutely. That's one of the reasons we're really excited about our EWP business. I think as we see more wood-based building generally or even the home builders looking to drive efficiencies into the process so that they can build more homes, I think EWP is an important part of that. We have a little bit of additional production that we think is available within our existing footprint on the EWP side. We're working very closely with not only the home builders, but the dealers, the distribution network. We're working with academic institutions like Boise State and some others on how do we leverage efficiencies in the system, and I think EWP is a really important part of that. In short, yes, we think that is an opportunity, and we as an industry, but we in particular, Weyerhaeuser, are excited to participate and really help drive that forward in the future. Okay. Thank you. Our next question will come from the webcast. Thank you. The question is: How have recent Hurricane and fire season activity affected Weyerhaeuser's operations during the third quarter? Sure. I'll take that. In Q3, we have had some impacts from fire, from weather. Fortunately, on the fire side in the West, although it was a pretty severe fire season across much of the Pacific Northwest, we didn't have any real impacts to our land in terms of damage. However, we did have fire restrictions, operating restrictions in certain parts of Oregon. We lost a little bit of production on the Timberlands side in Q3 as a result of those fire restrictions. More broadly, in terms of weather, Hurricane Ida, some of the other weather systems that we've seen in the South, we lost some production on the Timberlands side, as you would expect, as the hurricanes have come through. A little lower volume out of the South than we had perhaps expected. We lost a little bit of production time on the Wood Products side as well. We had one mill in particular in Louisiana that was down for about two weeks after the hurricane due to power outages, et cetera. We have experienced a little bit of impact from weather, fire, hurricanes, et cetera. I would say just on the note of Q3 in general, in addition to the weather, there are some other things going on. You've probably heard about transportation challenges. We haven't been immune to that. Certainly that's been a bit of a headwind in the quarter, and just the general labor issues in trying to manage through COVID. Not perhaps producing as much as you might otherwise be able to do as you manage through COVID and some of the inflationary pressures around resins, et cetera. That all being said, I think our team has done just a remarkable job navigating all of these challenges in the quarter. Our final question today will come from Mark Wilde with BMO. Thanks. I've got two follow-ups for Russell, fairly short. First, Russell, on that $80 million of non-timber earnings, can you give us any sense of how you think that cadences over the next four years? Yeah, as far as the cadence, again, as I mentioned, I think first you'll see the renewable energy EBITDA kind of increasing over the next couple of years, then the mitigation banking I think will pace with that also. Then I think you'll see a little more back-end loaded kind of in that 2025 timeframe coming from the forestry carbon and the carbon capture and storage. I will say if carbon prices increase and it makes sense for us to bring projects forward on the forestry carbon side, that's the whole emphasis for 2022, is to wrap up our assessment of our carbon opportunities. If prices dictate, we'll bring that forward too. I would say the CCS is going to be a little more back-end loaded just because of the development time required. Okay. On those renewables in the south that you've mentioned as my follow-up here, Russell, you talked about southeast solar. Yes. I'm just curious, is that more likely to come through outright land sales into like solar farms, or might that be structured as long-term lease payments? The goal is to structure those as long-term lease payments, and that fits with a lot of the developers' kind of capital requirements and how they're trying to structure those businesses. I will say we'll have instances where utilities will prefer an outright acquisition of the timberlands, but I'd say a majority of it will be in a lease structure, a long-term lease structure. Will you be able to provide us with some visibility on sort of terms around those lease structures? What I would say is the structures that we're negotiating kind of on a present value basis are well in excess of what you would realize on a timber operating basis. We're capturing a meaningful premium to timber for those developments and lease structures. It's a really good business. That's what I'm hearing from some others. Thanks very much, Russell. You bet. All right. Well, I think that was the last question, and that is the conclusion of our event. Again, thank you very much for joining us for the last couple of hours. We've got a lot of really exciting work going on at Weyerhaeuser. As you heard today, we are very optimistic about the demand drivers for our products and our services and some of the new opportunities that are out in front of us. We've done a lot of work. We've got a lot of work left to do around improving our portfolio, growing our company, growing our cash flows, enhancing our competitive position to be industry-leading from an operating performance standpoint. I think we've got a terrific ESG story. We've taken some actions this morning in publishing our carbon record, our greenhouse gas reduction targets to really enhance our role as the leader in ESG in our space and even more broadly. We're really excited about the targets and the goals that we've laid out, which will allow us to grow our company and return cash to shareholders, and ultimately deliver superior shareholder returns for our investors. Again, thank you for joining us today, and thank you for your interest in Weyerhaeuser.