Slide 1: Q4-2015 Earnings and Business Outlook Presentation
TEEKAY TEEKAY TEEKAY CORPORATION Q4-2015 EARNINGS AND BUSINESS OUTLOOK PRESENTATION February 18, 2016
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: Teekay Offsh
Slide 3: Recent Highlights
Recent Highlights • Generated consolidated CFVO1 of $401.4 million in Q4-15, an increase of 30 percent from Q4-14 • Generated consolidated CFVO of $1.4 billion in fiscal 2015, up 35 percent over 2014 • Reported adjusted net income attributable to shareholders1 of $29.8 million, or $0.41 per share, i
Slide 4: Recent Daughter Highlights
Recent Daughter Highlights Teekay LNG Partners • Generated CFVO1 of $121.1 million in Q4-15, an increase of 6% from Q3-15 • Declared Q4-15 distribution of $0.14 per unit – $3.8M to Teekay Parent • Secured first LNG regasification project utilizing an existing MEGI LNG newbuilding and a 30% interest
Slide 5: Strategic Rationale for Dividend Reductions
Strategic Rationale for Dividend Reductions • In December 2015, Teekay Parent dividend reduced by 90% to reflect temporary distribution decreases at two MLPs (TGP and TOO) • Disconnect between capital markets (high correlation to weak oil prices) and the relative stability/growth profile of TGP and
Slide 6: Diverse, Fee-Based Contracted Revenue
Diverse, Fee-Based Contracted Revenue Consolidated Forward Fee-Based Average Remaining Contract Length Revenues by Segment¹ by Segment¹ 2% Gas 1212 years years 17% FPSO 55 years years $21.3B Total Forward Fee- 55% Based Revenue Offshore 27% 5 years Logistics Tankers 1 year2 Note: Forward fee-based r
Slide 7: TOO's CFVO Continues to Grow
TOO’s CFVO Continues to Grow Proportionally Consolidated Estimated Run-Rate CFVO $950 $850 $750 In USD Millions $650 $550 $450 $350 $250 $150 2015 Run-Rate OPEX and G&A Navion Saga Varg Contract Four ALP Petrojarl I Gina Krog Libra (50% Two ECC 2017 Run-Rate CFVO (1) Savings Layup and Termination Ne
Slide 8: TGP's CFVO Continues to Grow
TGP’s CFVO Continues to Grow Includes TGP’s proportionate share of equity-accounted investment CFVO $800 Committed growth in 2018 – 2020 expected to add approximately $250M of annual CFVO(1) $600 USD Millions $400 $200 $- Current Run- YLNG Cheniere Conventional YLNG MEGI Shell LNG BG LNG End of 2017
Slide 9: Teekay Parent Fleet Status
Teekay Parent Fleet Status Status of Teekay Parent’s Remaining Owned and Chartered-in Assets Asset Status Petrojarl Banff Owned • Life of field expected firm period to December 31, 2019 FPSO Hummingbird Spirit Owned • Firm period to March 31, 2017 unless terminated for FPSO convenience at any time w
Slide 10: Teekay Parent Free Cash Flow (FCF)
Teekay Parent Free Cash Flow (FCF) Q4-15 vs. Q3-15 ($’000’s, except per share amounts) GPCO Q4-15 Q3-15 LP Distributions 7,732 39,045 GP Distributions 467 17,168 Other dividends 4,846 1,212 Total Daughter Distributions 13,045 57,425 Less: Corporate G&A (4,174) (3,628) Teekay Parent GPCO Cash Flow 8,
Slide 11: Currently Trading at 28% Discount to SOTP
Currently Trading at 28% Discount to SOTP GP option value not currently priced in ($ millions) Teekay Parent Assets FPSO Assets1 $330 Conventional Tanker Asset1 $80 JVs and Other Investments $225 FMV of Teekay Parent Fleet $635 Teekay Parent Equity Investment in Daughters2 Teekay LNG $280 Teekay Off
Slide 12: Appendix
Appendix 12
Slide 13: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q4-15 vs. Q3-15 ($’000’s, Q4-15 Adjusted* Q3-15 Adjusted* Comments except per share amounts) Net revenues 663,323 578,172 Increase primarily due to improved results from the shuttle fleet as a result of higher CoA days at higher rates, Foinaven FPSO annual r
Slide 14: Q1 2016 Outlook – Teekay Consolidated
Q1 2016 Outlook – Teekay Consolidated Income Q1 2016 Statement Item Outlook (expected changes from Q4-15) » Teekay Parent: $15m decrease from Foinaven FPSO from the Q4-15 recognition of annual operational tariff revenue and an insurance recovery, offset by higher expected production $6m decrease
Slide 15: TOO Segment CFVO
TOO Segment CFVO Varg contract termination in 1H-2016; Petrojarl I delivery 2H-2016 ECC 2 shuttles; Gina Krog FSO (In USD Millions) CFVO 2015 2016 2017 FPSO Knarr FPSO 238 321 326 Shuttle 249 255 261 FSO 34 30 77 Towage 9 39 72 UMS #1 10 23 23 Conventionals Tankers 21 6 0 CFVO (Consolidated) 561 675
Slide 16: TGP Forecasted Segment CFVO
TGP FORECASTED SEGMENT CFVO Delivery of 1 x LNG newbuild in 1H- 2017 and 3 x LNG newbuilds in 2H- In USD Millions 2017 2016 2017 CFVO by Segment Delivery of 2 x LNG carriers on charter to Cheniere LNG LNG $224 $262 LPG 24 24 Conventional Tankers 45 44 Total CFVO 293 330 Equity Investment CFVO (TGP's
Slide 17: Forecast Assumptions – Vessel Deliveries and Sales TGP
Forecast Assumptions – Vessel Deliveries and Sales TGP Estimated Project Vessel Type Ownership Delivery (1) Interest Assumed Vessel Sales: Cheniere LNG Newbuilding #1 LNG 100% Q1-2016 1 x Suezmax – Q3-2017 Cheniere LNG Newbuilding #2 Exmar LPG Newbuilding #1 LNG LPG 100% 50% Q3-2016 Q1-2016 1 x Suez
Slide 18: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q4-15 Three Months Ended December 31, 2015 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 700,106 (491) - 699,615 Voyage expenses (36,292) - -
Slide 19: Consolidated Adjusted Statement of (Loss) Income
Consolidated Adjusted Statement of (Loss) Income Three Months Ended Q3-15 September 30, 2015 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 611,617 (3,510) - 608,107 Voyage expenses (2
Slide 20: Bringing Energy To
BRINGING ENERGY TO