Teekay Corporation Ltd. · NYSE:TK
Teekay — Wells Fargo MLP Conference 2013
37 slides from Teekay's conference presentation, Dec 10, 2013
Slide 1: Teekay Partnerships
// Teekay Partnerships Wells Fargo MLP Conference - December 10, 2013 TEEKAY CORPORATION
Slide 2: Teekay Group Corporate and Asset Structure
Teekay Group Corporate and Asset Structure GP TEEKAY CORP. (“Teekay Parent”) NYSE: TK Market Cap: $3.2b Project Developer Asset manager and project developer General Partner / controlling shareholder of daughter companies Fleet size: 4 owned conventional tankers and 5 FPSO units Current Yiel
Slide 3: Teekay Corporation
// Teekay Corporation TEEKAY LNG
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: timing and c
Slide 5: Diversified Business Model
Diversified Business Model • A world leader in marine logistical solutions to the global oil and gas industry • $11 billion of consolidated assets, approximately 170 vessels • Over $15 billion of consolidated forward fee-based revenues • „One-stop shop‟ for customers‟ marine energy solutions TEEKAY
Slide 6: Main Drivers for Growing NAV per Share
Main Drivers for Growing NAV per Share • Increase the value • Organically develop • Operate with high of daughter new projects and HSEQ standards companies and commercialize new the value of our business areas • Greater focus on two GP interests costs and • Accretive profitability • Allocate capital
Slide 7: Teekay Parent Sum-of-Parts
Teekay Parent Sum-of-Parts ($ millions, except per share amounts) Teekay Parent Assets GP Ticker P/DCF % DCF to multiple GP Conventional Tankers 1 $152 KMI 23.5x 45.6% FPSOs 1 530 AHGP 19.9x 44.0% WMB 16.1x 33.8% Newbuilding 2 606 PAGP 33.1x 33.0% JVs and Other Investments 75 TRGP 26.7x 27.8% OKE 19
Slide 8: Organic Growth and Acquisitions Continuing to Yield Results
Organic Growth and Acquisitions Continuing to Yield Results • Both TOO and TGP intend to increase Q4‟13 LP distributions by 2.5%, adding further to GP distributions as both TOO and TGP GP Incentive distribution rights (IDRs) are in the 50% high-splits TOO & TGP Cash Distributions to Teekay Parent $1
Slide 9: 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 34.0x Publicly Traded GP Cash Flow Multiple) $3,500 $41.30/Teekay
Slide 10: Execution Plan
Execution Plan Increasing Teekay Parent Free Cash Flow and NAV Deleveraging Improving Support Future Teekay Parent Profitability of Daughter Balance Sheet Existing Assets Growth TEEKAY CORPORATION 10
Slide 11: Teekay Offshore Partners
Teekay Offshore Partners TEEKAY OFFSHORE
Slide 12: 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 fundamen
Slide 13: Investment Highlights
Investment Highlights • Diversified portfolio of fee-based contracts with major oil Stable companies Operating • $5.1 billion of forward fee-based revenues (weighted avg. Model contract duration of over 5 years, excluding extension options) • A market leader in harsh weather FPSO operations Leading
Slide 14: 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 15: Market Leader in Core Segments
Market Leader in Core Segments Control Approximately Number of Shuttle Tankers 36 1 26 45% of the World‟s 4 Shuttle Tanker Fleet* 35 9 22 5 4 7 2 2 2 Teekay Knutsen Transpetro Viken / AET Offshore NYK PJMR Existing Newbuildings on Order 15 Leading Position in 14 Teekay Offshore 3 11 Leased FPSOs 10
Slide 16: 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 5 FPSOs capable 6 FSOs with oil 37 shuttle tankers 1 of producing storage
Slide 17: Expertise in Deepwater and Harsh Environments
Expertise in Deepwater and Harsh Environments North Sea • 17 shuttle tankers owned, 4 in-chartered • 2 FPSOs + 5 owned by Sponsor Brazil 1 • 16 shuttle tankers owned • 2 FPSOs + 50% interest in 1 FPSO (1) Includes one Remora HiLoad Dynamic Positioning (DP) unit TEEKAY OFFSHORE 17
Slide 18: 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 $5.1 billion – Weighted average remaining contract life of over 5.0 years Shuttle Tankers FPSO Units FSO Units Conventio
Slide 19: Completed 2013 Acquisitions and Deliveries
Completed 2013 Acquisitions and Deliveries Cidade de Itajai FPSO BG Shuttle Tankers Voyageur Spirit FPSO Management intends to increase cash distribution by 2.5% for Q4-13 (total of 5% distribution growth in 2013) TEEKAY OFFSHORE 19
Slide 20: North Sea Market - Resurgent Activity
North Sea Market - Resurgent Activity 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 finds in deep water and located far from shore and pipelin
Slide 21: 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 22: Visible Existing and Potential Growth Opportunities for TOO
Visible Existing and Potential Growth Opportunities for TOO Visible Growth 2013 2014 2015 2016 2017 Q4 1H 2H BG Shuttle Tanker SHUTTLE & FSO Remora HiLoad DP Unit Salamander FSO Project Gina Krog FSO Project FPSO Petrojarl Knarr Potential Future Growth Hummingbird Petrojarl I Petrojarl Banff Petroja
Slide 23: Track Record of Distribution Growth
Track Record of Distribution Growth $2.15 Shuttle Tankers (4 Vessels) Shuttle Cidade Tankers de Itajai (4 Vessels) FPSO (50% Interest) Cidade de Itajai FPSO (received Voyageur Spirit offer FPSO to acquire $2.00 $2.05 50% in Q2’13) Piranema Spirit FPSO Additional 49% $1.90 of OPCO INCREASING Cidade d
Slide 24: Teekay LNG Partners
Teekay LNG Partners TEEKAY LNG
Slide 25: 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 26: Teekay LNG Partners Highlights
Teekay LNG Partners Highlights One of the World’s Largest • Top 2 independent owner and operator of LNG LNG Carrier carriers Owners • 100% of existing LNG fleet operating under fee-based Stable contracts (weighted avg. contract duration of ~13 years) Operating primarily to major oil and gas companie
Slide 27: 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) • Structured as a Master Limited Partnership (K-1 Filer) TEEKAY LNG 27
Slide 28: Major Independent LNG Operator
Major Independent LNG Operator • Teekay LNG has grown to become the second largest independent operator of LNG carriers In Service On Order 35 34 28 7 6 Number of LNG carriers 1 24 20 16 15 2 28 28 27 17 9 3 14 12 7 11 MOL Teekay NYK Maran Golar BW Gas K Line LNG Gas Note: Excludes state & oil compa
Slide 29: 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: 13 years – LPGs: 7 years* – Tankers: 6 years * The avera
Slide 30: 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 vessels 34 33* 11 Average remaining 13 years 7 years** 5 years Contract Life Forward $5.9 bil
Slide 31: Strong LNG Supply Growth Post-2015
Strong LNG Supply Growth Post-2015 • More than 200 MTPA of new LNG export capacity to be added by 2020 – Strongest export capacity growth expected between 2016 to 2020, led by Australia and USA • Teekay LNG‟s new capacity comes online in 2016 – Teekay‟s fuel-efficient orders are ideal for long-haul
Slide 32: 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 33: 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 1200 ~$825k/month in Q3-2013 800 • Very Large Gas Carrier (VLGC) 400 spot rates spiked in Q3-2013 on 0 the back of an uptick in U.S. Nov-08
Slide 34: Teekay LNG's Growth Pipeline
Teekay LNG’s Growth Pipeline Options for 3 MEGI LNG Carrier Newbuldings 3 MEGI LNG Intend to increase Carrier Newbuildings quarterly cash distribution by 4 Exmar LPG JV Newbuildings 2.5% 2 MEGI LNG Carrier Newbuildings (Cheniere Energy) 4 Exmar LPG JV Newbuildings 4 Exmar LPG JV Newbuildings Two Awi
Slide 35: 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 three recently ordered LNG carrier newbuildings delivering in 2017 • Pursuing growth in the LPG sector through our
Slide 36: Track Record of Distribution Growth
Track Record of Distribution Growth $2.77 Awilco LNG carrier Purchase- leasebacks (2 LNG carriers) Exmar LPG $2.70 (50% JV) (28 LPG carriers*) MAERSK LNG (52% JV) $2.52 (6 LNG Carriers) ANGOLA PROJECT (33%) (4 LNG carriers) SKAUGEN (3 LPGs) $2.52 EXMAR (2 LNGs) CONVENTIONAL INCREASING $2.40 TANKERS
Slide 37: Teekay Corporation Offshore
TEEKAY CORPORATION OFFSHORE