Slide 1: Teekay Corporation Q2-2015 Earnings Presentation
TEEKAY TEEKAY TEEKAY CORPORATION Q2-2015 EARNINGS PRESENTATION August 7, 2015
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: expectations
Slide 3: Recent Teekay Parent Highlights
Recent Teekay Parent Highlights • Teekay Parent generated free cash flow1 of $49.5 million, or $0.68 per share, in Q2-15, an increase of 57% from Q1-15 • Implemented new dividend policy: ○ Increased Q2-15 dividend by 75% to $0.55 per share ($2.20 per share annualized) ○ Linking future dividend incre
Slide 4: Recent Daughter Highlights
Recent Daughter Highlights Teekay LNG Partners • Declared Q2-15 distribution of $0.70 per unit (coverage ratio of 1.03x) – $26.3M to Teekay Parent • Signed 13-year time-charter contracts with BP Shipping Ltd. for up to two LNG carriers and placed order for 2 MEGI newbuildings (plus option) Teekay Of
Slide 5: Knarr FPSO Dropdown Completed
Knarr FPSO Dropdown Completed • On July 1st, Knarr sold to Teekay Offshore for $1.26 billion ○ Acquisition fully financed by TOO, including $300 million of common units to Teekay Parent • Resulted in $1 billion reduction in Teekay Parent’s net debt to approximately $580 million 5
Slide 6: Teekay Parent Free Cash Flow (FCF)
Teekay Parent Free Cash Flow (FCF) Q2-15 vs. Q1-15 ($’000’s, except per share amounts) GPCO Q2-15 Q1-15 LP Distributions 30,465 30,465 GP Distributions 13,948 13,917 Other dividends 881 881 Total Daughter Distributions 45,294 45,263 Less: Corporate G&A (4,139) (6,889) Teekay Parent GPCO Cash Flow 41
Slide 7: Teekay Parent's Dividend and FCF Growth Supported by Stable and Growing Daughter Cash Flows
Teekay Parent’s Dividend and FCF Growth Supported by Stable and Growing Daughter Cash Flows • Diversified portfolios of fixed-rate MLP charter contracts ○ TGP $11.4 billion with an average tenor of 13 years ○ TOO $8.4 billion with an average tenor of 5 years • No direct commodity price exposure • St
Slide 8: Built-in MLP Growth Supported by Continued Access to Capital
Built-in MLP Growth Supported by Continued Access to Capital ($ millions) Daughter Remaining Committed / Minimum Entity Committed Anticipated Equity CAPEX* Debt Financing Requirement TOO TGP $2,977 $2,839 $138 TGP 61% $6.3B 39% TOO $1,672 $1,404 $268 Total Committed Growth CAPEX Total $4,649 $4,243
Slide 9: Appendix
Appendix 9
Slide 10: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q2-15 vs. Q1-15 ($’000’s, except per share amounts) Q2-15 Adjusted* Q1-15 Adjusted* Comments Net revenues 569,786 514,868 Increase mainly related to Knarr FPSO full quarter of operations, Foinaven FPSO higher production, delivery of five towing and offshore
Slide 11: Q3 2015 Outlook – Teekay Consolidated
Q3 2015 Outlook – Teekay Consolidated Income Q3 2015 Statement Item Outlook (expected changes from Q2-15) * » Teekay Parent: $5m decrease from the scheduled shut-down of the Foinaven FPSO » Teekay Offshore: $11m increase from the delivery of the Arendal Spirit UMS early-June 2015 $11m increase
Slide 12: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q2-15 Three Months Ended June 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 592,797 879 - 593,676 Voyage expenses (23,890) - - (23,8
Slide 13: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Three Months Ended Q1-15 March 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 545,862 (5,324) - 540,538 Voyage expenses (25,670) - -
Slide 14: Bringing Energy To
BRINGING ENERGY TO