Devin Stockfish: Yes, sure. So it’s a really nice acquisition for us. A couple of things I would highlight, as you noted, really good mature age class, high percentage of sawlog mix. And importantly, there’s two pieces of it. There’s a northern piece and a southern piece. Each of them are really close to short haul distances to lumber mills that we have in Mississippi. So some really nice synergies there. I think from a comp standpoint, just for frame of reference, one of our large competitors did a deal in Mississippi recently at $2,700 an acre. So it’s pretty in line with what we’ve seen for the higher quality acquisitions in that Mississippi region. We are the largest landowner in Mississippi by a fair margin. I think the positive news from a Mississippi standpoint is we’re seeing a fair bit of new capacity coming in there.
From a sawmill standpoint, we’ve got the pellet mills that are coming in and building new mills in Mississippi. So it’s a market while it’s been less tension perhaps than some of the other markets. And this is true for Louisiana and Arkansas, by the way, I do think that’s where a lot of the new capacity is coming in. And with the work that Russell and his team are doing, we’re working real hard to make sure that we can influence where some of that capacity is coming in so that it’s placed in a region where we benefit from a timberland standpoint can drive synergies for those customers. So I think we feel pretty good about the trajectory of all three of those markets. And my instinct here is that over the next several years, you’re going to see some of the biggest price growth in those markets as that new capacity comes into place.
Anthony Pettinari: Okay. That’s very helpful. And then just switching to Climate Solutions. I think you mentioned two carbon projects underway in the South. Given the experience you’ve gained with the main pilot. I mean, is it possible to say how long it might take for those two Southern projects to maybe ultimately start issuing credits? Is that one or two years or maybe longer or shorter? And then I kind of thought that the main project was chosen because economics in the Northern region or maybe less compelling than in the Southern region. I don’t know if that’s the case or if that’s changed. But is there any sort of change in view where carbon projects are getting more feasible or more attractive and you’re moving them to the South or maybe these are special regions within the South. I don’t know if you can comment there.
Devin Stockfish: Sure. Well, I think first of all, with the main project, and that’s why we call it a pilot project is there were learnings that we acquired through that process. And I think we’ve been able to take the learnings from that main project and apply that to those two projects in the South. So my expectation is those projects are going to move dramatically faster than the main project. And we could have those issued as soon as later this year or early next year. So much faster. And again, I think we’ve taken a lot of the learnings from that initial project, which was the whole point in building out that group and the expertise so that we can start to scale this business. In terms of the regional decision-making for where carbon projects go, you’re absolutely right.
We started in May because the economics there are more supportive. But as you think about our portfolio of 7 million acres across the South, there are going to be certain parcels and certain tracks that are less economically beneficial than others. And so there are going to be places where the economics for carbon, even in the near-term still makes sense in the South. And just to be clear, we’re only going to do carbon projects where we think the economics in doing carbon will be the economics of doing timber. And so part of that is the quality of the land base, but part of that is where we think carbon prices are trending. And what we’ve seen here of late is for improved forest management, carbon projects that are of high quality, they’re generating strong pricing, and that’s our expectation when we bring these credits to market.
