Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Investor Presentation (June 2009)
15 slides from Teekay Tankers's investor presentation, Jun 23, 2009
Slide 1: Teekay Tankers (and Tanker Market Update)
TEEKAY TANKERS LTD. Teekay Tankers (and Tanker Market Update) June 23, 2009 www.teekaytankers.com
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: the Company’
Slide 3: Financial Market Profile
Financial Market Profile TEEKAY CORPORATION NYSE: TK TEEKAY TANKERS LTD. NYSE: TNK TEEKAY LNG TEEKAY OFFSHORE PARTNERS L.P. PARTNERS L.P. f Market Cap: $294m* NYSE: TGP NYSE: TOO f Focus on conventional tankers f Spot and short-term time-charter contracts (0 – 3 years) 99 www.teekaytankers.com
Slide 4: Teekay Tankers - Investment Highlights
Teekay Tankers - Investment Highlights f Attractive yield in high or low spot tanker markets f More stable dividend payment secured through: f Fixed-rate time-charter contracts which provide stable cash flows f All contracts with creditworthy counterparties f Dividend calculation now deducts mainten
Slide 5: Ownership Structure – Post June Equity Offering
Ownership Structure – Post June Equity Offering* Teekay Teekay Corporation Corporation Public Public Shareholders Shareholders 42% 42% Economic Economic Interest Interest 58% 58% Economic Economic Interest Interest 52% Vote 52% Vote 48% Vote 48% Vote f 1.0 million Class A Shares Teekay f 18.5 millio
Slide 6: Beneficial Effects of Recent Follow-on Offering
Beneficial Effects of Recent Follow-on Offering f Raised net proceeds of $65.6m* to acquire the Ashkini Spirit from Teekay Corp. f Liquidity increased by $66.6m Net offering $66m f Provides flexibility on future vessel proceeds acquisitions Cost of Ship $<57m> f Low debt balance provides flexibility
Slide 7: Sponsorship From Teekay Corporation Proving Valuable
Sponsorship From Teekay Corporation Proving Valuable TNK’s spot vessels gain scale benefits from trading in Teekay pools f Gemini Suezmax Pool: f 45 vessels f Includes leading names in tanker industry such as Teekay, Frontline, NAT, HMM and Koenig f Teekay Aframax Pool: f 30 vessels TNK benefits fro
Slide 8: Active Fleet Management has Provided Significant Forward Fixed-rate Charter Cover
Active Fleet Management has Provided Significant Forward Fixed-rate Charter Cover Name Y/ Built Dwt Fleet Coverage (by Revenue Days) Ashkini Spirit(1) 2003 165,200 Fixed Spot Narmada Spirit 2003 159,200 Trading in 2009E 57% 43% Kanata Spirit 1999 113,000 Teekay Pools 2010E 41% 59% Falster Spirit 199
Slide 9: TNK Can Pay a Dividend in Any Spot Market Environment
TNK Can Pay a Dividend in Any Spot Market Environment Q2 2009 Estimated Dividend Suezmax Spot Rate Assumption (TCE basis per day) Per Share* $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $10,000 $0.24 $0.27 $0.30 $0.34 $0.39 $0.43 (TCE basis per day) Aframax Spot Rate $15,000 $0.29 $0.32 $0.35 $0.
Slide 10: Teekay Tankers Financial Snapshot
Teekay Tankers Financial Snapshot f Q1’09 dividend: $0.59/share f Net Debt/FMV: 54%(2) f Annualized yield: 25.6%(1) f No CAPEX commitments f Cash Flow Breakeven below $0/day in f Minimal principal payments through 2009 2013 f Pro Forma(2) liquidity as of June 1, 2009: f Low average cost of debt ~4%(
Slide 11: Tanker Market Update
TEEKAY TANKERS LTD. Tanker Market Update www.teekaytankers.com
Slide 12: Tanker Fleet Utilization
Tanker Fleet Utilization Utilization Suezmax Spot Rates Aframax Spot Rates 90,000 96% 80,000 94% 70,000 92% 60,000 90% = Full Fleet Utilization (USD / Day) Spot Rates Utilization 90% 50,000 88% 40,000 86% 30,000 20,000 84% 10,000 82% 2000 2001 2002 2003 2004 2005 2006 2007 2008 1H-09 Source : Clarks
Slide 13: Possible 2010 Scenarios
Possible 2010 Scenarios Recovery Continued Weakness Case Case Recovery towards end-2009. Economic downturn is prolonged. Global Economy Global GDP growth 2-3% in 2010 Global GDP shrinks in 2010 2010 Tanker Demand Growth of over 5% Flat Phase-out strictly enforced. Some flag / port state extensions.
Slide 14: Tanker Market Fundamentals
Tanker Market Fundamentals BALANCE OF 2009 – Weak Outlook 2010 – Emerging Recovery? Demand Demand f Global oil demand shrinking as GDP f Potential for economic recovery from growth turns negative 2010 f OPEC cutbacks have led to reduced tanker f Economic stimulus and low energy prices demand / lower
Slide 15: Does Recent Rate Spike Suggest Closer Market Balance?
…Does Recent Rate Spike Suggest Closer Market Balance? 2007 2008 2009 180,000 160,000 140,000 120,000 USD / Day 100,000 80,000 60,000 40,000 20,000 0 Q1 Q2 Q3 Q4 Source : Clarksons (Suezmax global average) 111 www.teekaytankers.com