Slide 1: Teekay Corporation Fourth Quarter 2014 Earnings Presentation
TEEKAY TEEKAY TEEKAY CORPORATION FOURTH QUARTER 2014 EARNINGS PRESENTATION February 19, 2015
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 statements regarding: future growt
Slide 3: Recent Highlights - Teekay Corporation (Parent)
Recent Highlights Teekay Corporation (Parent) • Generated $308 million of total CFVO1 in Q4-14, an increase of 25% from Q4-13 • Reported Q4-14 consolidated adjusted net income2 of $30.7 million, or $0.42 per share, compared to $1.1 million, or $0.02 per share in Q4-13 • Reported FY2014 consolidated
Slide 4: Recent Highlights - Teekay LNG, Offshore, Tankers
Recent Highlights Teekay LNG Teekay Offshore Teekay Tankers Partners Partners Ltd. • Declared Q4-14 distribution of • Declared Q4-14 distribution of • Declared Q4-14 dividend of $0.70 per unit (1.2% increase $0.5384 per unit – $18.1M to $0.03 per share – $0.9M from the previous quarter) – Teekay Par
Slide 5: Status of Dropdown FPSOs at Teekay Parent
Status of Dropdown FPSOs at Teekay Parent Remaining FPSOs targeted for dropdown to TOO by 2017 FPSO Current Status Dropdown Trigger Agreed Petrojarl 1 • Completed • Award of new 5-year fixed-rate contract commencing in 1H-2016 Petrojarl • Finalizing field installation • Completion of Interim Perform
Slide 6: Consolidated Adjusted Statements of Income (Loss)
Consolidated Adjusted Statements of Income (Loss) Q4-14 vs. Q3-14 ($’000’s, except per share amounts) Q4-14 Adjusted* Q3-14 Adjusted* Comments Net revenues 512,797 456,000 Increase mainly related to Foinaven FPSO annual recognition of operation and oil price tariff revenue in Q4-14, Banff FPSO full
Slide 7: Q1 2015 Outlook – Teekay Consolidated
Q1 2015 Outlook – Teekay Consolidated Income Statement Q1 2015 Item Outlook » Fixed-Rate Fleet (expected changes from Q4-14): • $20m increase from Knarr FPSO assuming interim performance testing completed March 1, 2015 • $4m increase from the rate reset on the Banff FPSO effective January 1, 2015 •
Slide 8: Teekay Parent Free Cash Flow
Teekay Parent Free Cash Flow Q4-14 vs. Q3-14 ($’000’s, except per share amounts) OPCO Q4-14 Q3-14 CFVO 22,238 (9,170) Net Interest expense (15,056) (13,000) Dry-docking expense (3,652) (2,673) Teekay Parent OPCO Cash Flow 3,530 (24,843) GPCO Q4-14 Q3-14 LP Distributions 30,465 30,258 GP Distribution
Slide 9: Diverse, Fee-Based and Contracted Revenues from Strong Customer Group
Diverse, Fee-Based and Contracted Revenues from Strong Customer Group Provides downside cash flow protection and predictability Forward Fee-Based Revenues Average Remaining Contract Length by Segment by Segment Gas 13 years 30% FPSO 5 years 54% $20.4B Total Forward Fee- Based Revenues Offshore Logis
Slide 10: Visible Pipeline of Profitable Growth
Visible Pipeline of Profitable Growth Currently over $7 billion of known accretive growth will support future dividend increases Q4 2014 2015 2016 2017 2018 2019 2020 FPSO Dropdowns (Est.) Logitel FAU Newbuilds Petrojarl 1 FPSO Offshore Teekay ALP Towing Vessels Gina Krog FSO TOO 51% Libra FPSO (50%
Slide 11: Appendix
Appendix 11
Slide 12: Teekay Group's Capital Commitments
Teekay Group’s Capital Commitments • Teekay Group’s remaining capital commitments relating to its portion of acquisitions, newbuildings and conversions as at December 31, 2014, including recent announcements: (in Millions) 2015 2016 2017 2018 2019 2020 Total Offshore Production FPSO (excl. dropdowns
Slide 13: Consolidated Adjusted Statement of (Loss) Income
Consolidated Adjusted Statement of (Loss) Income Q4-14 Three Months Ended December 31, 2014 Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Appendix A Losses As Reported Items (1) on Derivatives (2) As Adjusted Revenues 544,989 (6,979) - 538,010 Voyage expenses (25
Slide 14: Appendix A Item Descriptions
Appendix A Item Descriptions Q4-14 Q4 - 2014 (in thousands of US dollars) Appendix A Items Explanation of Items Revenues (6,979) Recovery of crew redundacy costs from customer Voyage expenses - Net revenues (6,979) Vessel operating expense 5,380 Pre-operational costs incurred in respect of Knarr FPS
Slide 15: Consolidated Adjusted Statement of Income (Loss)
Consolidated Adjusted Statement of Income (Loss) Q3-14 Three Months Ended September 30, 2014 Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Appendix A Losses As Reported Items (1) on Derivatives (2) As Adjusted Revenues 490,183 - - 490,183 Voyage expenses (34,183)
Slide 16: Appendix A Item Descriptions
Appendix A Item Descriptions Q3-14 Q3 - 2014 (in thousands of US dollars) Appendix A Items Explanation of Items Revenues - Voyage expenses - Net revenues - Vessel operating expense 280 Pre-operational costs incurred in respect of Knarr FPSO unit Time charter hire expense - Depreciation and amortizat
Slide 17: Bringing Energy To
BRINGING ENERGY TO