Item 8.01. Other Events
Weyerhaeuser Company is providing an update regarding the effect of Oregon
wildfires on its timberlands and operations.
In September 2020, forest fires in the state of Oregon, commonly referred to as
the Holiday Farm, Beachie Creek, Riverside, and Archie Creek fires, spread from
adjacent lands onto portions of the company's Oregon timberland properties.
Weyerhaeuser has been collaborating with state and federal authorities on fire
suppression efforts. At this time, fires are no longer actively spreading on the
company's land. Fire lines on Weyerhaeuser property are established, and as
seasonally wet weather continues the company believes that the risk of
escapement is very low. Firefighting efforts are now focused on extinguishing
hot spots within the fire perimeter.
Weyerhaeuser is in the process of evaluating damage to its timber and related
assets. Based on satellite imagery and aerial photography, the company estimates
the fires have had some impact on approximately 125,000 acres of its Oregon
timberlands. The company's initial assessments indicate that the extent of
damage varies widely from tract to tract based on topographical conditions, rate
of fire spread, age of the timber, and other circumstances. Weyerhaeuser has
begun salvage operations in a limited area of its timberlands to safely maximize
the value of affected timber. Based on information gathered thus far, the
company expects to recover a significant proportion of the merchantable timber
value. Weyerhaeuser will expand salvage activity as operating conditions
improve. The company remains focused on the continued safety of its employees
and contractors.
Weyerhaeuser expects to record a charge in third quarter 2020 to reflect a
preliminary assessment of the book value of timber and related assets that
cannot be salvaged. At this time, it is too early to provide an estimate of the
charge. Other than this charge, the company anticipates that the wildfire
activity will not materially affect third quarter financial results.
Weyerhaeuser's manufacturing operations sustained no damage and incurred minimal
downtime in conjunction with the fire activity.
Timberlands included in the company's recently announced agreements to purchase
timberlands from and sell timberlands to Hancock Natural Resources Group have
sustained minimal or no fire damage. The company continues to expect that these
separate transactions will close in the fourth quarter of 2020.
FORWARD LOOKING STATEMENTS
This report contains statements concerning, among other things, the impact of
fires on the company's Oregon timberlands, estimated timber salvage, third
quarter financial results, and the acquisition and sale by the company of
certain timberlands in Oregon. These statements are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934, and can be identified by use of words such as
"anticipates", "believes", "continues", "estimates", "expects" and "will" and
similar words and terms and phrases using such terms and words. The report may
also reference expected events to occur by or at a future date, and such
references may also constitute forward-looking statements.
Forward looking statements are based on Weyerhaeuser's and its management's
current expectations and assumptions and are not guarantees that the information
contained in the forward-looking statements will be accurate or that events
described in the statements will occur within the time frame indicated, or at
all. The accuracy of the company's and its management's expectations and
assumptions is subject to a number of risks and uncertainties that could cause
actual events to differ materially from those described in the forward-looking
statements. These risks and uncertainties include, but are not limited to, those
identified in our 2019 Annual Report on Form 10-K, as well as those set forth
from time to time in our other public statements, reports, registration
statements, prospectuses, information statements and other filings with the SEC.
More specifically, Weyerhaeuser's estimates of the extent of fire damage to its
timberlands, including affected acreage and estimated salvage of merchantable
timber value, may be inaccurate or incomplete and subject to adjustment as the
company gains more knowledge about the full effects of the fires to its
timberlands. Also, Weyerhaeuser may not be able to complete one or both of the
transactions described in this report within the stated time period, or at all,
because of a number of factors, including without limitation: the occurrence of
any event, change or other circumstances that could give rise to a termination
of the transaction under the terms of one or both of the purchase and sale
agreements governing the transactions, or the failure to satisfy other closing
conditions. There is no guarantee that any of the estimates described in these
forward-looking statements are accurate
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or that any of the anticipated events referenced in these forward-looking
statements will occur. If any of the events contemplated by the forward-looking
statements do occur, there is no guarantee what effect they will have on the
company's business, results of operations, cash flows, financial condition and
future prospects.
Forward-looking statements speak only as of the date they are made, and neither
the company nor its management undertakes any obligation to publicly update or
revise any forward-looking statements, whether because of new information,
future events, or otherwise.
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