PotlatchDeltic Corporation (NASDAQ:PCH) Q1 2024 Earnings Call Transcript

The sawmill expansions the additions that we’re seeing, they tend to be in more of the weaker markets and the fact that capacity is going in those weaker markets is what in turn is going to drive log prices higher. But at the end of the day, like I said at the start, we’re portfolio managers at the right price. We’ll sell just about anything.

Unidentified Analyst: No. Understood. And I appreciate the thoughts on that. I guess my final question and I’ll turn it over, recognizing the land sales we’ll make for a nicely improved 2Q versus 1Q. If we hold that aside and we look just at Timberland and wood products, Wood Products lumber volumes might be up a touch from what we saw in the first quarter. But pricing right now is relatively stable and actually may you’re expecting to be lower in timberlands. Harvest lines are now recognizing if you’re going to be opportunistic. It will be a touch lower than the first quarter, where you’ve got Northern prices up, Southern prices down. So it seems like, operationally, EBITDA kind of flat 2Q versus 1Q. Would you agree with that very, very quick analysis?

Wayne Wasechek: I think that was pretty quick analysis. I mean my expectation is yes, lumber markets are weak. We actually had a decent April, not a great April, but it was certainly better than say the first quarter. So I think wood products could be to be a little bit better. And I think timber lands ,I don’t know. It may be flattish, but yes real estate should be up significantly.

Unidentified Analyst: Okay. Thank you very much guys for the thoughts. Good luck in the quarter.

Wayne Wasechek: Thanks.

Operator: At this time, I’m showing there are no more questions. I’ll now turn the call back over to Wayne Wasechek.

Wayne Wasechek: Thank you for your questions. and your interest in PotlatchDeltic. That concludes our call.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.