Slide 1: Teekay Partnerships
// Teekay Partnerships NAPTP Conference - May 22/23, 2013 TEEKAY OFFSHORE
Slide 2: Teekay Group Corporate Structure
Teekay Group Corporate Structure GP TEEKAY CORP. (“Teekay Parent”) NYSE: TK Project Market Cap: $2.6b Developer Asset manager and project developer General Partner / controlling shareholder of daughter companies Fleet size: 4 owned conventional tankers and 6 FPSO units Current Yield: 3% 25%
Slide 3: Teekay Offshore Partners
Teekay Offshore Partners TEEKAY OFFSHORE
Slide 4: 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 statements regarding: factors affe
Slide 5: Investment Highlights
Investment Highlights Stable • Diversified portfolio of fee-based contracts with major oil companies Operating Model • $4.8 billion of forward fee-based revenues (weighted avg. contract duration of over 5 years, excluding extension options) • A market leader in harsh weather FPSO operations Leading
Slide 6: Teekay Offshore at a Glance
Teekay Offshore at a Glance • Provider of offshore oil solutions, including floating production, storage and transportation services under long-term, fee-based contracts to primarily investment grade customers • Contracts not linked to, or exposed to commodity prices • Common units listed on the NYS
Slide 7: Market Leader in Core Segments
Market Leader in Core Segments Control More Than Number of Shuttle Tankers 37 4 50% of the World‟s 22 4 Shuttle Tanker Fleet* 33 9 5 3 18 7 2 3 Teekay Knutsen Transpetro Viken / Lauritzen Offshore NYK PJMR Existing Newbuildings on Order Leading Position in 15 Teekay Offshore 14 Leased FPSOs 4 11 10
Slide 8: Teekay Offshore – Linking Rig to Refinery
Teekay Offshore – Linking Rig to Refinery Leading indicators for Teekay Teekay Offshore‟s role in Offshore‟s business the offshore oil value chain Oil Production Oil Storage Floating Pipelines FPSOs FSOs Shuttle Tankers 4 FPSOs capable 6 FSOs with oil 36 shuttle tankers1 of producing storage c
Slide 9: Expertise in Deepwater and Harsh Environments
Expertise in Deepwater and Harsh Environments North Sea • 17 shuttle tankers owned, 4 in-chartered • 2 FPSOs + 6 owned by Sponsor Brazil • 15 shuttle tankers owned • 2 FPSOs + 50% interest in 1 unit recently offered by Sponsor TEEKAY OFFSHORE 9
Slide 10: Attractive Portfolio of Fee-based Contracts
Attractive Portfolio of Fee-based Contracts • Substantial portfolio of long-term, fee-based contracts with high quality oil and gas companies – Total forward fee-based revenues of $4.8 billion – Weighted average remaining contract life of over 5.0 years Shuttle Tankers FPSO Units FSO Units Conventio
Slide 11: Recent Developments
Recent Developments Completed the Voyageur Spirit FPSO acquisition for $540m FPSOs Received offer from Teekay to acquire its 50% interest in the Cidade de Itajai FPSO Shuttle Took delivery of the Samba Spirit shuttle tanker in May Tankers Remaining 3 BG shuttle tankers delivering between June and No
Slide 12: Awarded Statoil FSO Contract
Awarded Statoil FSO Contract • TOO will supply an FSO unit to Statoil ASA Gina Krog Field in the Norwegian sector of the North Sea on a 3 year fee-based contract, plus 12 x one-year extension options o Est. conversion $220m using 1995-built Randgrid shuttle tanker • Provision, installation, operatio
Slide 13: North Sea Market - Resurgent Activity Driving Demand
North Sea Market - Resurgent Activity Driving Demand for New FPSO and Shuttle Tanker Solutions Norwegian Exploration Wells Drilled* • Resurgence in North Sea Record high level drilling activity yielding results of exploration – 1.7 - 3.3 billion barrel Johan Sverdrup find was biggest of 2011 • New f
Slide 14: Brazil Market – More Growth to Come
Brazil Market – More Growth to Come Brazil Offshore Production Fleet Development 140 120 100 Installed On Order Planned 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: International Maritime Associates • Brazilian offshore production fleet predicted to dou
Slide 15: Visible Existing and Potential Growth Opportunities
Visible Existing and Potential Growth Opportunities for Teekay Offshore NEAR-TERM MEDIUM-TERM LONGER-TERM Directly Ordered by TOO Acquisition Pending by TOO Direct by TOO Teekay Corporation HiLoad DP Unit FSO Petrojarl Banff 4 NB Shuttle Tankers (Petrobras) (Salamander Energy) (CNR) (BG) Teekay Corp
Slide 16: Track Record of Distribution Growth
Track Record of Distribution Growth $2.10 Remora HiLoad DP Unit Shuttle Tankers (4 Vessels) Shuttle Cidade Tankers de Itajai (4 Vessels) FPSO (received offer to acquire 50% in Q2’13) Cidade de Itajai FPSO (received Voyageur Spirit offerFPSO to acquire $2.00 $2.05 50% in Q2’13) Sevan Piranema FPSO Ad
Slide 17: Teekay LNG Partners
Teekay LNG Partners TEEKAY LNG
Slide 18: 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 statements regarding: future growt
Slide 19: Teekay LNG Partners Highlights
Teekay LNG Partners Highlights One of the World’s Largest • Top 3 independent owner and operator of LNG LNG Carrier carriers Owners • 100% of LNG fleet operating under fixed-rate Stable contracts (weighted avg. contract duration of ~14 Operating years) primarily to major oil and gas companies Cash F
Slide 20: Teekay LNG at a Glance
Teekay LNG at a Glance • Provider of LNG, LPG and crude oil marine transportation primarily under long-term, fee-based contracts • Contracts not linked to, or exposed to commodity prices • Common units listed on the NYSE (TGP) with a market cap. of $3.1bn* • Structured as a Master Limited Partnershi
Slide 21: Major Independent LNG Operator
Major Independent LNG Operator • Teekay LNG has grown to become the third largest independent operator of LNG carriers 40 32 29 8 1 2 21 16 16 12 32 31 27 11 2 11 10 14 5 MOL NYK Teekay Golar BW Gas Maran K Line LNG Gas Exisiting Newbuildings on order Note: Excludes state & oil company fleets. TEEKA
Slide 22: Stable Long-Term Cash Flows
Stable Long-Term Cash Flows • Attractive fee-based contracts, “locking-in” cash flows: – 10 - 25 years initial length for LNG carriers – High credit quality customers – Cost escalation provisions • Long average remaining contract life: – LNGs: 14 years – LPGs: 7 years* – Tankers: 6 years • Liabiliti
Slide 23: Long-Term Contract Portfolio With Blue-Chip Customer Base
Long-Term Contract Portfolio With Blue-Chip Customer Base • Substantial portfolio of long-term fee-based contracts with high quality oil and gas companies LNG LPG Conventional Carriers Carriers Tankers # of units 29 28* 11 Average remaining 14 years 7 years** 6 years Contract Life Forward $5.1 billi
Slide 24: Summary of Recent Developments
Summary of Recent Developments • On February 2013, TGP acquired a 50% interest in a new LPG joint venture with Exmar (named Exmar LPG BVBA) focused on the mid-size gas carrier (MGC) segment – Exmar LPG BVBA includes interests in 24 LPG carriers • Significant increase in tendering activity for both L
Slide 25: Strong LNG Supply Growth Post-2015
Strong LNG Supply Growth Post-2015 • Australia expected to add ~80 MTPA of LNG supply by 2020 • Requirement for additional newbuildings to move new LNG volumes LNG Capacity Additions By Region vs. LNG Carrier Orderbook 500 Others Russia Africa North America Australia Existing Million Tonnes Per Annu
Slide 26: LNG Demand Growth Primarily Driven By China and India
LNG Demand Growth Primarily Driven By China and India • LNG is a cornerstone of China‟s energy mix • Chinese LNG imports expected to double to ~25-30 million tonnes (MT) by 2015 • Domestic gas shortfall prompting India to turn to LNG imports • India planning to double regasification capacity by end-
Slide 27: LPG Market
LPG Market MGC Term Rates Remain Steady 2000 MGC 1-year TC rate VLGC spot rate • Medium Gas Carrier (MGC) rates (USD ‘000 / month) 1600 have remained steady at ~$810k / 1200 month in Q1-2013 800 400 • Very Large Gas Carrier (VLGC) 0 spot rates down on lower Middle- May-08 May-09 May-10 May-11 May-12
Slide 28: Current TGP Growth Initiatives
Current TGP Growth Initiatives • Actively bidding on point-to-point LNG and FSRU projects – Experiencing increased number of new LNG and FSRU tenders • Pursuing long-term contracts for two recently ordered LNG carrier newbuildings delivering in 1H-2016 • Pursuing growth in the LPG sector through our
Slide 29: Track Record of Distribution Growth
Track Record of Distribution Growth $2.70 Exmar LPG (50% JV) $2.70 (23 LPG carriers*) MAERSK LNG (52% JV) (6 LNG Carriers) $2.52 ANGOLA PROJECT (33%) (4 LNG carriers) SKAUGEN (3 LPGs) $2.52 EXMAR (2 LNGs) INCREASING CONVENTIONAL TANKERS $2.40 (3 Vessels) DISTRIBUTIONS SKAUGEN (CAGR = 5.6%) (2 LPGs)
Slide 30: Teekay Corporation
// Teekay Corporation TEEKAY LNG
Slide 31: 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 statements regarding: the estimate
Slide 32: Diversified Business Model
Diversified Business Model • Patient, deliberate evolution across three segments • Eliminating cyclicality by generating value at every point in the cycle • $11 billion of consolidated assets, approximately 170 vessels • Over $15 billion of consolidated forward fee-based revenues • „One-stop shop‟ f
Slide 33: Main Drivers for Growing NAV per Share
Main Drivers for Growing NAV per Share • Increase the value • Organically develop • Operate with high of daughter new projects and HSEQ standards companies and commercialize new the value of our business areas • Greater focus on two GP interests costs and • Accretive profitability • Allocate capital
Slide 34: Teekay Parent Sum-of-Parts
Teekay Parent Sum-of-Parts ($ millions, except per share amounts) Teekay Parent Assets Conventional Tankers 1 $160 FPSOs 1 540 Newbuilding 2 563 JVs and Other Investments 3 117 FMV of Teekay Parent Assets $1,380 Teekay Parent Pro Forma Net Debt 3 $(1,002) Equity Value of Teekay Parent Assets $378 Te
Slide 35: Dropdown of Assets to Daughters Deleveraging Teekay Parent
Dropdown of Assets to Daughters Deleveraging Teekay Parent Teekay Parent Net Debt $1,400 $1,343 $1,352 Includes: $1,200 • $563m newbuilding $ Millions advances for Petrojarl Knarr FPSO project $1,002 $1,000 • Remaining debt relates to warehoused FPSOs and four conventional $800 tankers December 31,
Slide 36: Daughter Organic Growth and Acquisitions Benefiting Teekay Parent
Daughter Organic Growth and Acquisitions Benefiting Teekay Parent TOO & TGP Cash Distributions to Teekay Parent $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 2008 2009 2010 2011 2012 2013E* Common Unit Distributions GP Distributions • More growth to come in both the offshore and gas businesses through
Slide 37: Illustrative Growth in GP Value
Illustrative Growth in GP Value Illustrative Assumptions: TGP TOO 2013 2014 2015 2013 - 2015 Annual Distribution Growth Rate per LP Unit 0% 2% 4% 5% p.a. LP Unit Growth per Annum 0% 5% 10% 12% p.a. Illustrative GP Valuation (Assuming 22.4x Publicly Traded GP Cash Flow Multiple) $2,500 $27.21/Teekay
Slide 38: Appendix
Appendix TEEKAY CORPORATION 38
Slide 39: Teekay Offshore Key Financial Information
Teekay Offshore Key Financial Information In $ millions Net Revenues1 $800 (in $ millions) Q1-13 Q1-12 F2012 F2011 $600 Net Revenues1 $201.2 $202.6 $810.0 $767.1 $400 $200 CFVO2 $94.1 $102.1 $405.3 $394.0 $- Net Interest $26.1 $27.4 $105.4 $94.0 2009 2010 2011 2012 Expense3 In $ millions CFVO2 Cash
Slide 40: Teekay LNG Key Financial Information
Teekay LNG Key Financial Information In $ millions Net Revenues1 (in $ millions) Q1-13 Q1-12 F2012 F2011 $400 1 Net Revenues $96.7 $99.0 $390.5 $378.6 $300 2 $200 CFVO $65.6 $72.7 $282.2 $271.5 $100 3 Net Interest Expense $22.3 $20.9 $88.1 $83.3 $0 2009 2010 2011 2012 Cash $90.9 $83.9 $113.6 $93.6 2
Slide 41: Teekay Corporation
TEEKAY CORPORATION