Teekay Corporation Ltd. · NYSE:TK
Teekay — Bank of America Conference 2005
23 slides from Teekay's conference presentation, Sep 21, 2005
Slide 1: Teekay Shipping Bank of America Conference
Teekay Shipping Bank of America Conference September 21, 2005 f TEEKAY – THE MARINE MIDSTREAM COMPANY® SM www.teekay.com
Slide 2: Forward Looking Statements
TEEKAY SHIPPING 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 regardi
Slide 3: Investment Highlights
TEEKAY SHIPPING Investment Highlights Diverse Portfolio of Assets Teekay is the only publicly traded shipping company with the following complement of assets: fFloating Storage Units fShuttle Tankers fRefined product tankers fLiquefied natural gas carriers fConventional crude oil tankers Unique Busi
Slide 4: Teekay's Strategy
TEEKAY SHIPPING Teekay’s Strategy Goal: To Be The Premier Provider of Marine Services to the Oil and Gas Industry Long-term Strategy fGrow in existing and adjacent conventional crude oil businesses fExpand presence in product tanker segment fRetain leading market position in the growing shuttle tank
Slide 5: Why Teekay?
TEEKAY SHIPPING Why Teekay? We have built a….. f Leading Marine Midstream Company based on a….. f Superior Business Model by…. f Managing the Shipping Cycle which has created…. f Significant Value through the use of …. f Innovative Financing 5 TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com
Slide 6: The Teekay Platform - 1998
TEEKAY SHIPPING The Teekay Platform - 1998 Teekay began as a regional spot player… CUSTOMER LOGISTICS ASSET MIX AFRAMAX (HARDWARE) INDO-PACIFIC CENTRALIZED PEOPLE & TECHNICAL SYSTEMS AND (SOFTWARE) COMMERCIAL OPERATIONS TOTAL 46 SHIPS 8 OFFICES ASSETS SCALE $1.4 BILLION 6 TEEKAY – THE MARINE MIDSTRE
Slide 7: The Teekay Platform - 2005
TEEKAY SHIPPING The Teekay Platform - 2005 …and transformed into The Marine Midstream Company NCS CONOCO OFFSHORE BHPB CALTEX CEPSA EMISSIONS NAVION PHILLIPS SPT OFFSHORE CUSTOMER LOADING MARINE AUSTRALIA STRATEGIC STRATEGIC CONTROL CHARTERING STRATEGIC LIGHTERING OILFIELD LOGISTICS LOGISTICS OUT- O
Slide 8: Superior Business Model–Serving Our Customer's Transportation Needs
TEEKAY SHIPPING Superior Business Model–Serving Our Customer’s Transportation Needs PROD’N & WELL SVCS OFFSHORE DRILLING FSO PRODUCTION SERVICES OIL SERVICE MAN’F. OFFSHORE SUPPORT SHUTTLE TANKER PRODUCT TANKER ONSHORE DRILLING LIGHTERING VESSEL CONVENTIONAL CRUDE OIL TANKER LNG VESSEL LARGE DIVERSI
Slide 9: Teekay's Spot Tanker Business
TEEKAY SHIPPING Teekay’s Spot Tanker Business 60 existing vessels newbuildings f Largest spot operator of medium-sized tankers # of Aframaxes 40 f Shipped close to 1.5 billion 20 barrels in 2004 f Unique global organization 0 ip t'l ar ay C f Maintaining high in-charter In sh IS m ek M vo ax en Te m
Slide 10: Teekay's Spot Tanker Business
TEEKAY SHIPPING Teekay’s Spot Tanker Business Strong Platform for Future Growth f Listen to the customer – replicate mid-size tanker franchise in other segments f Expand into new areas of the customers’ logistic chain f Able to consolidate or grow organically using large platform of conventional tan
Slide 11: Teekay's LNG Carrier Business
TEEKAY SHIPPING Teekay’s LNG Carrier Business Top LNG Carrier Owners – Oct. 2004 Top LNG Carrier Owners – Sept. 2005 Major LNG Carrier Owners (6 or more ships) Major LNG Carrier Owners (6 or more ships) 30 30 Existing On Order 25 25 Teekay # 5 Teekay # 14 No. of Ships 20 20 15 15 Existing On Order 1
Slide 12: Increased Demand for LNG Carriers
TEEKAY SHIPPING Increased Demand for LNG Carriers f $16+ billion Market Opportunity Projected Demand for LNG Carriers by 2010 389 Additional 81* additional Demand ships required 124 Ships to meet Currently On- projected 184 Order demand Existing Fleet Today 2010 * Excludes speculative projects, Comp
Slide 13: Teekay's Shuttle Tanker Business
TEEKAY SHIPPING Teekay’s Shuttle Tanker Business 45 Teekay is the Clear Market Leader 30 # vessels 15 0 Teekay Knutsen JJ Ugland Penny Ugland Transpetro Barriers to Entry Low Threat of Substitution f No spot market f Viewed as integral part of the f No speculative newbuilding offshore oil production
Slide 14: Teekay's Shuttle Tanker Segment
TEEKAY SHIPPING Teekay’s Shuttle Tanker Segment Significant Growth Potential in Offshore Oil…… f Rapid growth in deepwater exploration f Continued development of core North Sea market f Upside in Brazil market f Other opportunities: f East Coast of Canada f Gulf of Mexico f West Africa f Australia …
Slide 15: Actively Managing the Cycle
Actively Managing the Cycle $45,000 Adding Spot Exposure Acquired UNS L/T Contracts Adding Fixed- $40,000 rate business Acquired Tapias Strengthening Raised Flexible L/T Contracts Awarded L/T Balance Sheet Financing LNG Contracts $35,000 Non-recourse Realized Aframax TCE Reduced ConocoPhillips Finan
Slide 16: Teekay Valuation
TEEKAY SHIPPING Teekay Valuation Teekay LNG Fixed-Rate Tanker Segment Partners L.P. Spot Tanker Segment CFVO * $285m TGP Enterprise $1,473m Owned Fleet Value 1H’05 CFVO Multiple * 10x $262m Less: (annualized)* Enterprise $2,850m Multiple * 5.9x Actual net debt (523) Value Owned Fleet $1,546m MLP Equ
Slide 17: Financial Highlights
TEEKAY SHIPPING Financial Highlights f Net income of $383m or $4.42 per ROE of ~20% share in 1H 2005 f Reduced leverage from 42% to Near low end of 34% in last 6 months target range f ~ $300m or 6.9 million shares When completed, repurchased since Nov. ’04 => over 16% of o/s present authorization fo
Slide 18: Quarterly Earnings Per Share: Significant Operating Leverage
TEEKAY SHIPPING Significant Operating Leverage $3.00 $2.50 Q3 2005: Spot Rate increase EPS Increase Quarterly Earnings Per Share $1,000 TCE/day ~ $0.06 / qtr $2.00 above $15,000 / day $1.50 $1.00 $0.50 $- 0 0 0 0 0 0 0 0 0 0 0 00 00 00 00 00 00 00 00 00 00 00 0, 5, 0, 5, 0, 5, 0, 5, 0, 5, 0, $1 $1 $
Slide 19: Significant Free Cash Flow over past years
TEEKAY SHIPPING Significant Free Cash Flow over past 5 years 900 Op. cashflow Maint. Capex. D&A Free Cash Flow 750 600 $ millions 1H ‘05 450 Only 300 150 0 ed 5 01 02 03 04 '0 liz 20 20 20 20 1H a nu An 5 '0 Aframax TCE $30,542 $15,930 $24,909 $39,299 $37,301 Free Cash Flow=Operating Cash Flow-Maint
Slide 20: Investment Highlights
TEEKAY SHIPPING Investment Highlights Diverse Portfolio of Assets Unique Business Mix Teekay’s Business Model Appeals to Customers 20 TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com
Slide 21: Support for Teekay Valuation
TEEKAY SHIPPING Support for Teekay Valuation Teekay LNG Fixed-Rate Tanker Segment Partners L.P. Spot Tanker Segment (1) CFVO = Cash Flow from Vessel (5) At June 30, 2005 (6) 1H 2005 actual spot tanker Operations See reconciliation in segment CFVO adjusted for spot Appendix to this presentation in-ch
Slide 22: Teekay Fleet List
TEEKAY SHIPPING Teekay Fleet List at Aug. 31, 2005 Number of Vessels Owned Chartered-in Newbuildings Vessels Vessels on Order Total Spot Tanker Fleet: VLCC's 1 1 Suezmaxes 1 4 5 Aframaxes 27 16 3 46 Large Product Tankers 8 3 11 Small Product Tankers 10 10 Total Spot Tanker Segment 28 39 6 73 Fixed-r
Slide 23: Non-GAAP Reconciliation
TEEKAY SHIPPING Non-GAAP Reconciliation f Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense and vessel write-downs/(gain) loss on sale of vessels. Cash flow from vessel operations is a non-GAAP financial measure used by certain inv