Slide 1: Teekay's Q2-2017 Earnings Presentation
TEEKAY’S Q2- 2017 EARNINGS PRESENTATION August 4, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including: the proposed Brookfield Transacti
Slide 3: Recent Highlights and Significant Transactions
Recent Highlights and Significant Transactions • Generated Q2-17 consolidated total cash flow from vessel operations (CFVO)(1) of $254.5 million • Reported Q2-17 consolidated adjusted net loss(1) of $38.1 million, or $0.44 per share • Secured a new charter contract for the Arctic Spirit LNG carrier
Slide 4: Recent Highlights Cont'd
Recent Highlights Cont’d Teekay Offshore Partners • Generated Q2-17 distributable cash flow(1) of $27.2 million, or $0.18 per common unit • Declared Q2-17 cash distribution of $0.01 per unit • Libra FPSO and Randgrid FSO units scheduled to commence operations in Sep / Oct 2017 • Signed amendment to
Slide 5: Recent Transactions Have Significantly Enhanced Teekay Group's Financial Strength
Recent Transactions Have Significantly Enhanced Teekay Group’s Financial Strength… Teekay Corporation Strengthened Liquidity Simplified Structure Position • +$700M in debt/swap • ~$140M in cash + 15.5M Guarantees to TOO removed TOO Warrants to be • Tanker Ops. now owned 100% received by Teekay Tanke
Slide 6: Financially Strong Daughters will Drive Long-term Shareholder Value
…And Financially Strong Daughters will Drive Long- term Shareholder Value Across the Teekay Group Teekay Corporation • Each Daughter positioned to take advantage of upside opportunities as markets recover • 3 directly-owned FPSOs to be optimized through extensions and re- contracting • In-chartered
Slide 7: Appendix
Appendix 7
Slide 8: Q3 2017 Outlook – Teekay Consolidated
Q3 2017 Outlook – Teekay Consolidated Income Q3 2017 Statement Item Outlook (expected changes from Q2-17) Teekay Parent: • $2m net increase from FPSOs from the Banff FPSO maintenance shutdown in Q2-17, partially offset by the scheduled maintenance shutdown for the Foinaven FPSO in Q3-17 • $1m increa
Slide 9: Consolidated Adjusted Line Items
Consolidated Adjusted Line Items Q2-17 Income Statement Item As Reported Appendix A Reclassification As Adjusted Items (1) for Realized Gains/ Loss on Derivatives (2) Revenues 513,923 796 441 515,160 Vessel Operating Expenses (OPEX) (207,784) 12,672 (101) (195,213) General & Administrative Expenses
Slide 10: Brookfield Strategic Partnership will Transform TOO's Capital Structure
Brookfield Strategic Partnership will Transform TOO’s Capital Structure Stabilizing • $610m (Brookfield) + $30m (TK) of new TOO common equity at $2.50 per unit plus warrants equity base • Common unit distributions reduced to $0.01/quarter Reducing high • Pref. C-1s – to be retired with cash, at a di
Slide 11: Key Benefits of TNK/TIL Merger
Key Benefits of TNK/TIL Merger • Consistent with TNK’s strategy of increasing shareholder value by investing and operating throughout the tanker cycle • Establishes TNK’s market leading presence in key markets resulting in improved vessel utilization, triangulation opportunities and improved earning
Slide 12: Financial Benefits of Proposed TNK/TIL Merger
Financial Benefits of Proposed TNK/TIL Merger • Immediately 10% accretive to Asset Values Currently Near Historic Lows earnings per share1 90.0 • Fixed exchange ratio represents a 80.0 modest 3.1% premium on fair market 70.0 value of TIL’s fleet, at historically low 60.0 values 50.0 • Strengthens ba
Slide 13: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD