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Yes AND why I'm saying to insulate it all the way up. Let the moisture go out because any condensation you have in the exhaust will collect soot and unburned fuel. It will make a mess inside the pipe.Howdy,
A possible source of water back into your unit.
With a exhaust stack that long, you will have incredible amounts of condensation forming and rolling back down the pipe. It just will not get hot enough to evacuate all the water. You have no means of a water trap. You would be better off with a TEE right out side and a short pipe maybe 12" going down with a cap and screw hole to drain water from your stack. An example would be a air compressor line with a water collection drain.
This is why I don't recommend going larger on an exhaust pipe. That slows down the gas velocity.
Keep it hot and keep it flowing fast.