Slide 1: Teekay Corporation Fourth Quarter and Fiscal 2011 Earnings Presentation
Teekay Corporation Fourth Quarter and Fiscal 2011 Earnings Presentation February 23, 2012
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: tanker marke
Slide 3: Recent Highlights
Recent Highlights TEEKAY CORP NYSE: TK » Generated consolidated Q4-11 $189.9m of cash flow from vessel operations1 » Q4-11 consolidated adjusted net income attributable to Teekay of $1.6m, or $0.02 per share2 compared to $0.58 adjusted net loss per share in Q3-113 » Completed Sevan transaction TEEKA
Slide 4: Delivered on Value Creation in 2011
Delivered on Value Creation in 2011 General Investment in Return of Partner Higher-return Capital to Value Opportunities Shareholders Growth » Completed Acquisitions: » Acquisitions: » Share repurchases • Remaining Teekay Parent • 40% shareholding in • $162m since Nov 2010 49% OPCO interest to TOO S
Slide 5: Progress on Operational Initiatives
Progress on Operational Initiatives » Realized higher year-over-year revenue on the Foinaven FPSO contract due to strong production and higher oil prices » Negotiated improved rates for the Petrojarl1 FPSO » Renewed contracts at higher rates and realized OPEX savings in shuttle tanker business » Emp
Slide 6: Strategic Sevan Transaction Completed
Strategic Sevan Transaction Completed Transaction Recap: » Piranema FPSO acquired by Teekay Offshore for ~$165m and currently operating in Brazil • Annual Cash Flow: $23-$27m » Hummingbird FPSO acquired by Teekay Parent for ~$179m and currently operating in the North Sea • Annual Cash Flow: $22m, in
Slide 7: Potential Applications of Sevan Technology
Potential Applications of Sevan Technology FPSO GTW Floating Gas Production To Wire Storage (Offshore Offloading powerplant) MODU FDPSO Mobile Floating Offshore Drilling Drilling Production Unit Storage Offloading MSV FAU Multipurpose Floating Support FLNG Accomodation Vessel Floating Unit Liquefied
Slide 8: Maersk LNG Transaction Update
Maersk LNG Transaction Update » Teekay LNG – Marubeni jointly venture will now acquire ownership of 6 LNG carriers from A.P. Moller-Maersk for $1.33 billion on February 28, 2012 • Pre-emption rights exercised on two previously included 26% owned vessels LNG Carrier Year Ownership Time-Charter Extens
Slide 9: Sevan and Maersk LNG Transactions Will Further Enhance Fixed-Rate Cash Flows
Sevan and Maersk LNG Transactions Will Further Enhance Fixed-Rate Cash Flows Teekay Annual Fixed-rate Cash Flow from Vessel Operations $800 » Recent offshore and $700 LNG acquisitions and $600 $500 $ Millions projects will drive $400 further fixed-rate cash $300 $200 flow growth $100 $0 2006 2007 20
Slide 10: Offshore Market Outlook: Positive Shuttle Tanker and FPSO Fundamentals in the North Sea
Offshore Market Outlook: Positive Shuttle Tanker and FPSO Fundamentals in the North Sea Norwegian Exploration Wells Drilled Exploration Is Yielding Significant Results Record high level » Johan Sverdrup discovery off Norway of exploration estimated at 1.7-3.3 billion barrels • World’s largest oil di
Slide 11: LNG Market Outlook: Wave of Projects Coming 2015+
LNG Market Outlook: Wave of Projects Coming 2015+ Expected LNG Supply Increase By Region* 500 7.7% p.a. growth in LNG Others supply 2015-20; Potential upside from US 450 Middle export projects East LNG Supply (MTPA) Canada 400 4.1% p.a. growth in LNG supply 2011-15; Other Asia Japanese nuclear resta
Slide 12: Tanker Market Outlook: Improved Fundamentals From End-2012/Early-2013
Tanker Market Outlook: Improved Fundamentals From End-2012/Early-2013 Demand Range Supply Range Source: Platou / Internal estimates Global Floating Slowdown in Moving towards Tanker market recession; storage demand; balance by end recovery on of 2012 – accelerating steadied the fleet growth the back
Slide 13: 2012 Teekay Corporation Priorities
2012 Teekay Corporation Priorities » Continue to meet market leading » Banff FPSO repair and delivery HSE and operational KPIs » Tiro Sidon FPSO conversion and delivery » Integrate Sevan and Maersk LNG » Voyageur FPSO upgrade and transactions delivery » Project execution » Knarr FPSO construction »
Slide 14: Q4-2011 Consolidated Adjusted Income Statement
Q4-2011 Consolidated Adjusted Income Statement Three Months Ended Three Months Ended December 31, 2011 September 30, 2011 Reclass for (in thousands of US dollars, except Realized Gains/ per share amounts) Losses As Reported Appendix A Items (1) on Deriviatives (2) As Adjusted As Adjusted NET REVENUE
Slide 15: Q1-2012 Outlook – Teekay Consolidated
Q1-2012 Outlook – Teekay Consolidated Income Q1-2012 Statement Item Outlook » Fixed-Rate Fleet (expected changes from Q4-11): • $35m decrease from Foinaven FPSO due to annual recognition of operational and oil price tariff revenue in Q4-11 • $10m decrease from Banff FPSO unit off-hire • $25m increas
Slide 16: Parent and Daughter Companies Are Financially Well Positioned
Parent and Daughter Companies Are Financially Well Positioned Teekay Parent Includes: ($ millions) Total Debt 1,747 • $462m construction Cash (403) installments 1 Net Debt 1,344 • $220m Voyageur 2 Adjusted Net Debt 1,124 FPSO VIE debt Net Debt/Total Capitalization 48% • $180m Hummingbird 2 Adj. Net
Slide 17: $1.6 Billion of Debt Financings Completed Since November 2011
$1.6 Billion of Debt Financings Completed Since November 2011 Project Name Amount Entity Status • Completed Tiro & Sidon FPSO (50% portion) $150 million Teekay Parent (Drawn) EUR150 million • Completed Madrid Sprit (Refinancing) Teekay LNG (USD 200 million) (Drawn) • Completed Piranema FPSO $130 mil
Slide 18: Maersk LNG and Sevan Assets will Enhance Teekay's Sum-of-the-Parts Value
Maersk LNG and Sevan Assets will Enhance Teekay’s Sum-of-the-Parts Value Teekay Parent Assets ($ millions, except per share amounts) Conventional Tankers – Spot 1 $334 Conventional Tankers – Fixed 1 316 Voyageur FPSO not FPSOs 1 600 yet reflected Newbuildings 2 462 JVs and Other Investments 3 223 FM
Slide 19: Appendix
TZ | TEEKAY CORPORATION . - sind Appendix www.teekay.com A a
Slide 20: Q4 2011 Appendix A Item Descriptions
Q4 2011 Appendix A Item Descriptions Q4 - 2011 (in thousands of US dollars) Appendix A Items Explanation of Items NET VOYAGE REVENUES Revenues - Voyage expenses - Net revenues - OPERATING EXPENSES Vessel operating expense (49) Unrealized losses on derivative instruments Time charter hire expense (2,
Slide 21: Q3 2011 Adjusted Net Income Reconciled to GAAP Net Income
Q3 2011 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended September 30, 2011 Reclass for (in thousands of US dollars, except Realized Gains/ per share amounts) Losses As Reported Appendix A Items (1) on Deriviatives (2) As Adjusted NET REVENUES Revenues 468,106 - (6) 468,100 Voyag
Slide 22: Teekay Parent – Conventional Tanker Fleet Employment (Q1-12 to Q4-13)
Teekay Parent – Conventional Tanker Fleet Employment (Q1-12 to Q4-13) Three Months Ending Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 2012E 2012E 2012E 2012E 2013E 2013E 2013E 2013E Suezmax Spot revenue days 1 546 605 552 460 540 546 552 552 Average time-charter rate 2 23,525 20,
Slide 23: Teekay Parent – Q4-2011 In-chartered Fleet
Teekay Parent – Q4-2011 In-chartered Fleet Three Months Ended Dec. 31 Sept.30 31-Dec 2011 2011 2010 Suezmax 1 Average in-charter rate 28,792 29,466 32,502 In-charter days 182 113 361 Aframax - external in-charters Average in-charter rate 21,022 20,774 22,147 In-charter days 465 460 434 Average bareb
Slide 24: Teekay Parent – In-chartered Fleet (Q1-12 to Q4-13)
Teekay Parent – In-chartered Fleet (Q1-12 to Q4-13) Three Months Ending Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 2012E 2012E 2012E 2012E 2013E 2013E 2013E 2013E Suezmax 1 Average in-charter rate 28,750 28,750 28,750 - - - - - In-charter days 182 176 92 - - - - - Aframax - exte
Slide 25: 2012 Drydock Schedule
2012 Drydock Schedule March 31, 2012 (E) June 30, 2012 (E) September 30, 2012 (E) December 31, 2012 (E) Total 2012 (E) Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Offhire Offhire Offhire Offhire Offhire Drydocked Drydocked Drydocked Drydocked Drydocked Entity Segment Days D
Slide 26: Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership
Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership Three Months Ended December 31, September 30, June 30, March 31, December 31, 2011 2011 2011 2011 2010 Teekay LNG Partners Distribution per common unit $0.63 $0.63 $0.63 $0.63 $0.63 Common units owned by Teekay Parent 25,208,274 25,2