Slide 1: Teekay's Q3-2018 Earnings Presentation
TEEKAY’S Q3- 2018 EARNINGS PRESENTATION November 15, 2018
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, among other things, re
Slide 3: Q3-18 Results
Q3-18 Results Teekay Corporation Consolidated • Q3-18 consolidated total CFVO(1) of $196.4 million, compared to $164.2 million in Q2-18 • Q3-18 consolidated adjusted net loss(1) of $11.4 million, or $0.11 per share, compared to adjusted net loss of $21.6 million, or $0.21 per share, in Q2-18 Teekay
Slide 4: Teekay LNG Partners ("TGP")
Teekay LNG Partners (“TGP”) Recent Highlights Existing Growth Projects • Q3-18 total CFVO(1) of $132.6 million and Project 2H-18 2019 adjusted net income(1) of $19.5 million, or $0.16 per common unit, up 15%, 44% and 78% from 1 vessel with 8-year contract with Shell , 1 Q2-18, respectively. MEGI LNG
Slide 5: Delevering While Returning Capital to Unitholders
Delevering While Returning Capital to Unitholders Building equity value inside TGP will benefit Teekay Parent through its LP and GP interest longer-term 10.0x 9.0x 8.0x Net Debt / CFVO 7.0x 6.0x Target Leverage of 5.5x 5.0x 4.0x 2018 2019 2020 Proportionate Consolidated Consolidated (GAAP) • As TGP
Slide 6: Teekay Tankers ("TNK")
Teekay Tankers (“TNK”) • Q3-18 total CFVO(1) of $27.8 million, FCF2 Per Share Spot Rate Sensitivity3 compared to $16.6 million in Q2-18 • Q3-18 adjusted net loss(1) of $18.0 million, or $1.50 $0.07 per share, compared to $28.7 million, or $0.11 per share, in Q2-18 Current Spot Rates4,5 • Crude spot
Slide 7: Teekay Offshore Partners ("TOO")
Teekay Offshore Partners (“TOO”) Recent Highlights Existing Growth Projects • Q3-18 total CFVO(1) of $167.3 Project 2018 2019 2020 2021 million and adjusted net income of North Sea Shuttle Secured on charter contracts $7 million, compared to $162.2 Tankers million and an adjusted net loss of $0.7 mi
Slide 8: Teekay Parent FPSOs Benefiting from Stronger Oil Prices
Teekay Parent FPSOs Benefiting from Stronger Oil Prices Discussing contract extensions for all 3 units Banff Hummingbird Spirit Foinaven Operating under Evergreen contract Firm charter contract out to September Operating under Evergreen contract. with firm charter contract out to August 2020 2019 Fi
Slide 9: Steady Progress Towards Greater Value Creation
Steady Progress Towards Greater Value Creation Key Drivers TGP TNK TOO TKC Favourable LNG trade Global oil & gas Improving supply/demand increasing; hitting Increasing offshore demand growing fundamentals; hitting Macro multi-year high LNG activity driving need for oil multi-year high carrier spot r
Slide 10: Appendix
Appendix 10
Slide 11: Consolidated Adjusted Net Loss Comparison
Consolidated Adjusted Net Loss Comparison Q3-18 vs. Q2-18 (Thousands of U.S. Dollars except Q3-2018 Q2-2018 per share am ounts) (unaudited) (1) (unaudited) (1) Com m ents Revenues 416,443 403,921 Voyage expenses (90,899) (94,912) Teekay Parent - $6m increase primarily from the Banff FPSO from higher
Slide 12: Q4 2018 Outlook – Teekay Consolidated
Q4 2018 Outlook – Teekay Consolidated Income Q4 2018 Statement Item Outlook (expected changes from Q3-18) (1) Teekay Parent • $13m decrease from the Banff FPSO from an unplanned shutdown in Q4-18, lower expected tariff revenues in Q4-18, and the recognition of a maintenance bonus in Q3-18 • $7m incr
Slide 13: Consolidated Adjusted Net Loss Reconciliation
Consolidated Adjusted Net Loss Reconciliation Q3-18 vs Q2-18 Three Months Ended Three Months Ended September 30, 2018 June 30, 2018 Reclass for Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Realized Gains/ Appendix A Losses Appendix A Losses As Reported Items (1)
Slide 14: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD