Slide 1: Teekay Corporation Q1-2019 Earnings Presentation
Teekay Corporation Q1-2019 Earnings Presentation May 23, 2019
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, among other things, reg
Slide 3: Q1-19 Results And Teekay Consolidated Highlights
Q1-19 Results And Teekay Consolidated Total Adjusted EBITDA(1) Teekay Parent • Q1-19 total adjusted EBITDA(1) of $237 million, compared to $168 million in Q1-18 250 Highlights • Q1-19 consolidated adjusted net loss(1) of $13 Over 40% increase in total million, or $0.13 per share, compared to adjuste
Slide 4: Positive Turning Point: Now Positioned To Maximize Value
Positive Turning Point: Now Positioned To Maximize Value Objectives over the past few Strategic transactions with Brookfield relating to Teekay Offshore (TOO) years: • De-risk • Delever Eliminated over $500 million of TOO guarantees and reduced TNK guarantees to $161 million • Preserve value and opt
Slide 5: Delevering Balance Sheet
Teekay Parent Teekay Parent Debt and Financial Guarantees* Delevering Balance Sheet Removed Teekay Parent’s 1,600 $1,496 TOO guarantees as part of TOO / Brookfield transaction in 1,400 2017 and reduced TNK guarantees as a result of TNK ($ USD Millions) refinancings 1,200 1,000 $929 Since beginning o
Slide 6: Pro Forma Teekay Parent Capitalization
Pro Forma Teekay Parent Capitalization Debt reductions since the Sources & Uses Teekay Parent Pro Forma Capitalization* beginning of 2018 and the 2020 bond refinancing results Sources Amt. ($mm) As of in cash interest savings of $23 Cash from balance sheet $148 million per year to run-rate ($ millio
Slide 7: Stable Asset Portfolio With Diverse Customer Base
Stable Asset Portfolio With Diverse Customer Base Invested Capital Breakdown By Segment(1) Supported by unrivaled contracted revenue with strong counterparties 3% LNG Growing fixed-rate gas cash flows provide stability with 6% $10.1B significant upside from tanker 68% Forward fee-based revenues(2) c
Slide 8: Maximizing The Value Of Teekay Parent's FPSOs
Maximizing The Historical FPSO Adj EBITDA Hummingbird Banff Foinaven Value Of Teekay Parent’s FPSOs 50 Q1-19 results for Foinaven and Banff were impacted by: 40 • Unplanned shutdowns and lower production ($4M) 30 • Adoption of new lease accounting standard ($4M of revenue deferred to future quarters
Slide 9: Teekay LNG ("TGP")
Recent Highlights Existing Growth Projects • Q1-19 total adjusted EBITDA(1) of $158 million Teekay LNG (“TGP”) and adjusted net income(1) of $33 million, or Project 2019 $0.34 per unit, up 35%, 51% and 79% from Q1-18, respectively Yamal LNG Charter contracts through to 2045, plus ARC 7 Carriers (50%
Slide 10: Positive Outlook For 2H-19; 2020 To Remain Strong
Positive Outlook For 2H-19; 2020 To Remain Strong LNG Fleet Demand and Supply Growth 14% Expected tonne-mile demand growth of 11% in 12% 2019 due to increasing exports 10% - 2018 projects continue to ramp up production as some 8% were delayed until 2nd half of the year 6% - 33 MTPA* expected to star
Slide 11: Teekay Tankers ("TNK")
Recent Highlights FCF2 Per Share Spot Rate Sensitivity3 Teekay Tankers • Q1-19 total adjusted EBITDA(1) of $63 million, (“TNK”) compared to $22 million in Q1-18 TNK has significant cash flow • Q1-19 adjusted net income(1) of $15 million, or $1.50 and asset price upside from a $0.05 per share, compar
Slide 12: Tanker Market Fundamentals Set To Tighten From 2H-2019
Tanker Market Fundamentals Set To Tighten From 2H-2019 Highest Q1 Spot Rates Since 2016 Refinery Throughput Set to Surge TNK Q1 Spot Earnings Global Refinery Throughput Strong global oil demand 40 86 - Estimated 1.3 mb/d oil demand $39 Suezmax Aframax 85 growth in 2019 $36 ‘000 USD / day 30 - Refine
Slide 13: Teekay Group Positioned To Create Value
Teekay Group Positioned To Create Value Key Drivers TGP TNK TKC LNG trade increasing; seasonal spot LNG charter Global oil & gas demand Favourable supply/demand Improving Macro rate weakness with medium- fundamentals growing driving need for oil term time charter rates and gas shipping remaining str
Slide 14: Appendix
Appendix 14
Slide 15: Consolidated Adjusted Net Loss Reconciliation
Consolidated Adjusted Net Loss Reconciliation (Thousands of U.S. Dollars except per Q1-2019 Q4-2018 (1) (1) Q1-19 vs Q4-18 share amounts) (unaudited) (unaudited) Comments Revenues 474,737 491,805 Voyage expenses (103,123) (117,199) Net revenues 371,614 374,606 Teekay Parent - $10m decrease primarily
Slide 16: Q2 2019 Outlook – Teekay Consolidated
Q2 2019 Outlook – Teekay Consolidated Income Q2 2019 Statement Item Outlook (expected changes from Q1-19) (1) Teekay Parent • $5m increase from the Banff FPSO from higher oil tariff revenue in Q2-19 Teekay LNG • $3m increase from Yamal Spirit due to full quarter activity forecasted for Q2-19 • $3m i
Slide 17: Consolidated Adjusted Net Loss Reconciliation
Consolidated Adjusted Net Loss Reconciliation Teekay Corporation Q1-2019 Consolidated Adjusted Statement of Net Loss Q1-19 vs Q4-18 Three Months Ended Three Months Ended March 31, 2019 December 31, 2018 Reclass for Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Re
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