NORTHAMPTON, MA - Rayonier (NYSE:RYN), a timberland real estate investment trust, has expanded its underground pore space lease agreements with ExxonMobil (NYSE:XOM), now covering an additional 33,000 acres of timberlands in the United States. This expansion brings the total acreage under lease agreements for carbon capture and storage (CCS) with the oil and gas giant to about 59,000 acres.
David Nunes, CEO of Rayonier, expressed the company's commitment to environmental initiatives, stating, "We view this as an important milestone as we continue to advance initiatives that accelerate the world's path to net zero." He also highlighted the strategic position of Rayonier's timberland portfolio in benefiting from the transition to a low-carbon economy.
ExxonMobil, which operates the largest CO2 pipeline network in the U.S., utilizes these leases to facilitate CCS deployment, a process critical to reducing greenhouse gas emissions. This network allows for cost-efficient transportation of CO2, serving ExxonMobil and third-party customers.
Rayonier's assets are primarily located in regions of the U.S. and New Zealand known for productive softwood timber growth. As of the end of last year, Rayonier owned or had long-term lease agreements for approximately 2.7 million acres of timberlands, distributed across the U.S. South, U.S. Pacific Northwest, and New Zealand.
The information regarding Rayonier's expanded lease agreements and its partnership with ExxonMobil in CCS initiatives is based on a press release statement. The company's strategic moves are part of broader efforts to leverage land-based solutions to combat climate change and contribute to the global objective of achieving net-zero emissions.
InvestingPro Insights
Rayonier (NYSE:RYN) has made significant strides in its environmental initiatives, particularly through its expanded partnership with ExxonMobil for carbon capture and storage (CCS) on its timberlands. This proactive approach in environmental stewardship is reflected in the company's financial health and market performance as well.
InvestingPro data reveals that Rayonier has a market capitalization of approximately $4.99 billion, indicating a substantial presence in the industry. The company's P/E ratio stands at 28.34, aligning with its last twelve months as of Q4 2023. This figure suggests that the company is trading at a valuation that is reasonable when considering its near-term earnings growth. Moreover, Rayonier has demonstrated a commendable revenue growth of 16.26% in the last twelve months, which is a testament to their solid business operations and strategic initiatives.
Among the InvestingPro Tips, it's noteworthy that Rayonier has been able to maintain dividend payments for an impressive 31 consecutive years, offering a current dividend yield of 3.43%. This consistency in rewarding shareholders underlines the company's financial stability and commitment to returning value to investors. Furthermore, analysts predict that Rayonier will remain profitable this year, which could be an attractive point for potential investors.
For those looking to delve deeper into Rayonier's financial metrics and gain additional insights, there are more InvestingPro Tips available. These tips provide a more comprehensive understanding of the company's financial position and market potential. For instance, Rayonier's liquid assets exceed its short-term obligations, which is a strong indicator of the company's liquidity and ability to meet its immediate financial commitments.
Interested readers can find more InvestingPro Tips by visiting InvestingPro's dedicated page for Rayonier. Additionally, for those considering a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to receive an additional 10% off. With several more tips listed on InvestingPro, investors can gain a well-rounded perspective on Rayonier's financial outlook and performance.
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