Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership)
(NYSE: TOO) today reported net income of $20.6 million for the
quarter ended September 30, 2008, compared to a net loss of $9.0
million for the same period last year. The results for the quarters
ended September 30, 2008 and 2007 included a number of specific
non-cash items which had the net effect of increasing net income by
$2.3 million and decreasing net income by $17.3 million,
respectively, as detailed in Appendix A to this release. Net voyage
revenues(1) for the third quarter of 2008 increased to $164.4
million from $159.3 million for the same period last year.
Net income for the nine months ended September 30, 2008 was
$33.1 million, compared to net income of $10.0 million for the same
period last year. The results for the nine months ended September
30, 2008 and 2007 included a number of specific items which had the
net effect of decreasing net income by $0.4 million and $13.0
million, respectively, as detailed in Appendix A to this release.
Net voyage revenues(1) for the nine months ended September 30, 2008
increased to $482.6 million from $473.4 million for the same period
last year.
For accounting purposes, the Partnership is required to
recognize the changes in the fair value of derivative instruments
through the statement of income (loss). This revaluation does not
affect the Partnership's cash flows or the calculation of
distributable cash flow, but results in the recognition of
unrealized gains or losses on the statement of income (loss).
During the three months ended September 30, 2008, the
Partnership generated $17.5 million of distributable cash flow(2),
up from $10.5 million for the second quarter of 2008, primarily as
a result of the acquisition of an additional 25 percent interest in
Teekay Offshore Operating Partners L.P. (OPCO) on June 18,
2008.
On November 3, 2008, the Partnership declared a cash
distribution of $0.45 per unit for the quarter ended September 30,
2008, an increase of $0.05 per unit, or 12.5 percent, from the
previous quarter. This distribution increase reflects the
acquisition of an additional 25 percent interest in OPCO and OPCO's
acquisition of two Aframax lightering vessels, on June 18, 2008.
The cash distribution was paid on November 14, 2008 to all
unitholders of record on November 7, 2008.
On February 2, 2009, the Partnership declared a cash
distribution of $0.45 per unit for quarter ended December 31, 2008.
The cash distribution is payable on February 13, 2009, to all
unitholders of record on February 6, 2009.
(1) Net voyage revenues represents voyage revenues less voyage
expenses, which comprise all expenses relating to certain voyages,
including bunker fuel expenses, port fees, canal tolls and
brokerage commissions. Net voyage revenues is a non-GAAP financial
measure used by certain investors to measure the financial
performance of shipping companies. Please see the Partnership's web
site at www.teekayoffshore.com for a reconciliation of this
non-GAAP measure as used in this release to the most directly
comparable GAAP financial measure.
(2) Distributable cash flow is a non-GAAP financial measure used
by certain investors to measure the financial performance of the
Partnership and other master limited partnerships. Please see
Appendix B for a reconciliation of this non-GAAP measure to the
most directly comparable GAAP financial measure.
Operating Results
The following table highlights certain financial information for
Teekay Offshore's three main segments: the shuttle tanker segment,
the conventional tanker segment, and the FSO segment (please refer
to the "Teekay Offshore's Fleet" section of this release below and
Appendix C for further details). The Partnership's financial
statements for prior periods include historical results of vessels
acquired by the Partnership from Teekay, referred to herein as the
Dropdown Predecessor, for the period when these vessels were owned
and operated by Teekay.
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Three Months Ended Three Months Ended
September 30, 2008 June 30, 2008
(unaudited) (unaudited)
Conven-
(in Conven- tional
thousands Shuttle tional Shuttle Tanker
of U.S. Tanker Tanker FSO Tanker Segment FSO
dollars) Segment Segment Segment Total Segment (1) Segment Total
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Net
voyage
revenues 121,052 25,939 17,408 164,399 121,624 24,982 18,067 164,673
Vessel
operating
expenses 33,970 6,433 7,045 47,448 31,975 6,152 7,380 45,507
Time-
charter
hire
expense 31,474 - - 31,474 32,262 - - 32,262
Deprec-
iation &
amorti-
zation 22,880 5,636 5,526 34,042 23,168 5,718 7,561 36,447
Cash
flow
from
vessel
operat-
ions (2) 45,436 17,048 9,559 72,043 44,319 16,961 9,474 70,754
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(1) Includes the results of the Dropdown Predecessor for two vessels, the
SPT Explorer and the SPT Navigator, from April 1, 2008 to June 17,
2008, when these vessels were operating and under the common control
of Teekay prior to their acquisition by Teekay Offshore. As a result of
the inclusion of the Dropdown Predecessor for the two vessels, cash
flow from vessel operations increased by $2.2 million for the three
months ended June 30, 2008.
(2) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense and
amortization of deferred gains. Cash flow from vessel operations is a
non-GAAP financial measure used by certain investors to measure the
financial performance of shipping companies. Please see the
Partnership's web site at www.teekayoffshore.com for a reconciliation
of this non-GAAP measure as used in this release to the most directly
comparable GAAP financial measure.
The Partnerships' total cash flow from vessel operations from in
third quarter of 2008 remained virtually unchanged from the
previous quarter. Utilization of the shuttle tanker fleet remained
strong offsetting the marginal operating cost increase experienced
during the quarter.
Teekay Offshore's Fleet
The following table summarizes Teekay Offshore's fleet,
including vessels owned by OPCO, as of December 31, 2008:
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Number of Vessels
--------------------------------------
Owned Chartered-in
Vessels Vessels Total
--------------------------------------
Shuttle Tanker Segment 27(1) 9 36
Conventional Tanker Segment 11 - 11
FSO Segment 5 - 5
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Total 43 9 52
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(1) Includes five shuttle tankers in which OPCO's ownership interest is
50%, and two shuttle tankers directly owned by Teekay Offshore, of
which one is 50% owned.
Future Growth Opportunities
Teekay Corporation (Teekay) is obligated to offer Teekay
Offshore shuttle tankers, FSO units, and Floating Production
Storage and Offloading (FPSO) units it may acquire in the future,
provided the vessels are servicing fixed-rate contracts of three or
more years in length.
Shuttle Tankers
Teekay has four Aframax shuttle tanker newbuildings on order
that are scheduled to deliver between the third quarter of 2010 and
the third quarter of 2011. It is anticipated that these vessels
will be offered to the Partnership and will be used to service
either new long-term, fixed-rate contracts Teekay may be awarded
prior to their delivery or OPCO's contracts-of-affreightment in the
North Sea.
FPSO Units
On July 9, 2008, Teekay completed the acquisition of the
remaining 35.3 percent of Teekay Petrojarl ASA it did not
previously own. Teekay Petrojarl is a leading operator of FPSO
units, with four units operating in the North Sea and one unit
operating in Brazil.
Based on a pre-existing agreement, Teekay is obligated to offer
Teekay Offshore, within one year after having acquired 100 percent
of Teekay Petrojarl, its interests in Teekay Petrojarl's existing
FPSO units that operate under charter contracts with remaining
terms greater than three years. Teekay is also obligated to offer
Teekay Offshore its interest in future FPSO projects with charter
contracts greater than three years.
Teekay's Remaining Interest in OPCO
Teekay may offer to Teekay Offshore additional limited partner
interests in OPCO that Teekay owns. Teekay currently owns 49
percent of OPCO and Teekay Offshore owns the remaining 51
percent.
Liquidity
As of September 30, 2008, the Partnership had total liquidity of
$304.0 million, comprised of $159.2 million in cash and cash
equivalents and $144.8 million in undrawn revolving credit
facilities.
About Teekay Offshore Partners L.P.
Teekay Offshore Partners L.P., a publicly-traded master limited
partnership formed by Teekay Corporation (NYSE: TK), is an
international provider of marine transportation and storage
services to the offshore oil industry. Teekay Offshore Partners
owns a 51 percent interest in and controls Teekay Offshore
Operating L.P., a Marshall Islands limited partnership with a fleet
of 34 shuttle tankers (including nine chartered-in vessels), four
FSO units, nine double-hull conventional oil tankers and two
lightering vessels. In addition, Teekay Offshore Partners L.P. has
direct ownership interests in two shuttle tankers and one FSO unit.
Teekay Offshore Partners also has rights to participate in certain
FPSO opportunities.
Teekay Offshore Partners' common units trade on the New York
Stock Exchange under the symbol "TOO".
TEEKAY OFFSHORE PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except unit data)
Three Months Ended Nine Months Ended
------------------ -----------------
September June September September September
30, 30, 30, 30, 30,
2008 2008(1) 2007(2) 2008(3) 2007(4)
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
VOYAGE REVENUES 226,947 224,484 195,711 656,363 581,225
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OPERATING
EXPENSES
Voyage expenses 62,548 59,811 36,458 173,736 107,852
Vessel
operating
expenses(5) 47,448 45,507 37,745 134,886 105,239
Time-charter
hire expense 31,474 32,262 37,161 97,382 111,749
Depreciation
and
amortization 34,042 36,447 31,945 103,401 90,897
General and
administrative
(5) 14,087 15,684 16,008 45,089 48,067
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189,599 189,711 159,317 554,494 463,804
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Income from
vessel
operations 37,348 34,773 36,394 101,869 117,421
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OTHER ITEMS
Interest
(expense) gain
(6) (32,592) 23,153 (60,418) (76,628) (69,839)
Interest income 901 1,051 1,784 3,201 4,365
Income tax
recovery
(expense) 29,485 7,542 (6,119) 36,830 (1,491)
Foreign
exchange gain
(loss)(5) 2,179 (1,110) (4,715) (1,394) (13,265)
Other income -
net 2,352 2,314 2,965 7,292 8,266
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Net income
before
non-controlling
interest 39,673 67,723 (30,109) 71,170 45,457
Non-controlling
interest (19,048) (42,498) 21,103 (38,069) (35,475)
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Net income
(loss) 20,625 25,225 (9,006) 33,101 9,982
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Limited
partners' units
outstanding:
Weighted-
average
number of
common units
outstanding
- Basic and
diluted 20,359,783 11,151,648 9,800,000 13,794,526 9,800,000
Weighted-
average
number of
subordinated
units
outstanding
- Basic and
diluted 9,800,000 9,800,000 9,800,000 9,800,000 9,800,000
Weighted-
average
number of
total units
outstanding
- Basic and
diluted 30,159,783 20,951,648 19,600,000 23,594,526 19,600,000
--------------------------------------------------------------------------
(1) Includes the results of the Dropdown Predecessor for two vessels, the
SPT Explorer and the SPT Navigator, from April 1, 2008 to June 17,
2008, when these vessels were operating and under the common control
of Teekay prior to their acquisition by Teekay Offshore. As a result
of the inclusion of the Dropdown Predecessor for the two vessels, net
income increased by $0.8 million for the three months ended June 30,
2008.
(2) Includes the results of the Dropdown Predecessor for the Dampier
Spirit, from July 1, 2007, when this vessel was operating and under
the common control of Teekay prior to its acquisition by Teekay
Offshore. As a result of the inclusion of the Dropdown Predecessor
for the Dampier Spirit, net income increased by $0.1 million for the
three months ended September 30, 2007.
(3) Includes the results of the Dropdown Predecessor for two vessels, the
SPT Explorer and the SPT Navigator, from January 7, 2008 and March
28, 2008, respectively, to June 17, 2008, when these vessels were
operating and under the common control of Teekay prior to their
acquisition by Teekay Offshore. As a result of the inclusion of the
Dropdown Predecessor for these two vessels, net income increased by
$1.3 million for the nine months ended September 30, 2008.
(4) Includes the results of the Dropdown Predecessor for two vessels, the
Dampier Spirit and the Navion Bergen, from January 1, 2007 and April
16, 2007, respectively, to June 30, 2007 and September 30, 2007,
respectively, when these vessels were operating and under the common
control of Teekay prior to their acquisition by Teekay Offshore. As a
result of the inclusion of the Dropdown Predecessor for the two
vessels, net income increased by $1.3 million for the nine months
ended September 30, 2007.
(5) Vessel operating expenses, general and administrative and foreign
exchange gain (loss) include unrealized losses of $0.6 million and
$0.2 million for the three months ended September 30, 2008 and
September 30, 2007, respectively, and an unrealized gain of $0.2
million for the three months ended June 30, 2008, from the change in
fair value of certain foreign exchange forward contracts that do not
qualify as effective hedges for accounting purposes and from hedging
ineffectiveness of certain foreign exchange forward contracts that
qualify as effective hedges for accounting purposes. Vessel operating
expenses, general and administrative, and foreign exchange gain (loss)
include unrealized losses of $0.1 million and $0.2 million for the
nine months ended September 30, 2008 and 2007, respectively, from the
change in fair value of certain foreign exchange forward contracts
that do not qualify as effective hedges for accounting purposes and
from hedging ineffectiveness of certain foreign exchange forward
contracts that qualify as effective hedges for accounting purposes.
These amounts are non-cash items and hence, do not affect the
Partnership's cash flows or the calculation of distributable cash
flow.
(6) Interest (expense) gain includes unrealized losses of $11.8 million
and $39.0 million, for the three months ended September 30, 2008 and
September 30, 2007, respectively, and an unrealized gain of $41.9
million for the three months ended June 30, 2008, from interest rate
swaps. Interest (expense) gain includes unrealized losses of $15.1
million and $10.4 million, respectively, for the nine months ended
September 30, 2008 and September 30, 2007 from the change in fair
value of interest rate swaps that do not qualify as effective hedges
for accounting purposes. These amounts are non-cash items and hence,
do not affect the Partnership's cash flows or the calculation of
distributable cash flow.
TEEKAY OFFSHORE PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
As at As at
September December
30, 2008 31, 2007
(unaudited) (unaudited)
--------- ---------
ASSETS
Cash and cash equivalents 159,204 121,224
Other current assets 106,906 107,172
Vessels and equipment 1,731,709 1,662,865
Other assets 73,660 92,622
Intangible assets 47,806 55,355
Goodwill 127,113 127,113
--------------------------------------------------------------------------
Total Assets 2,246,398 2,166,351
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--------------------------------------------------------------------------
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and accrued liabilities 55,401 50,540
Advances from affiliates 37,925 -
Current portion of long-term debt 74,766 64,060
Current portion of derivative instruments 18,616 5,277
Long-term debt 1,535,308 1,453,407
Other long-term liabilities 97,748 123,053
Non-controlling interest 245,829 392,613
Partners' equity 180,805 77,401
--------------------------------------------------------------------------
Total Liabilities and Partners' Equity 2,246,398 2,166,351
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Nine Months Ended
September 30,
----------------------
2008 2007
--------- ---------
(unaudited) (unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
--------------------------------------------------------------------------
Net operating cash flow 115,986 48,657
--------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 191,000 188,200
Scheduled repayments of long-term debt (24,393) (12,151)
Prepayments of long-term debt (119,000) (115,000)
Net advances to affiliate (46,544) (42,935)
Equity distribution from Teekay Corporation - 1,819
Proceeds from issuance of common units 216,837 -
Expenses from issuance of common units (6,171) (2,793)
Distribution to Teekay Corporation relating to
purchase of SPT Explorer LLC and SPT Navigator LLC (16,661) -
Excess of purchase price over the contributed
basis of a 25% interest in Teekay Offshore
Operating LP (94,882) -
Distribution to Teekay Corporation relating to
purchase of Navion Bergen LLC - (48,800)
Excess of purchase price over the contributed
basis of a 50% interest in Navion Gothenburg LLC - (6,358)
Cash distributions paid (28,337) (15,000)
Other (1,538) -
--------------------------------------------------------------------------
Net financing cash flow 70,311 (53,018)
--------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (52,990) (13,341)
Proceeds from sale of vessels and equipment - 3,225
Purchase of a 25% interest in Teekay Offshore
Operating LP (111,746) -
Purchase of a 50% interest in Navion Gothenburg
LLC - (10,231)
Investment in direct financing lease assets (537) (8,332)
Direct financing lease payments received 16,956 15,882
--------------------------------------------------------------------------
Net investing cash flow (148,317) (12,797)
--------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents 37,980 (17,158)
Cash and cash equivalents, beginning of the
period 121,224 113,986
--------------------------------------------------------------------------
Cash and cash equivalents, end of the period 159,204 96,828
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. dollars)
Set forth below are some of the significant items of income and
expense that affected the Partnership's net income for the three
and nine months ended September 30, 2008 and 2007, all of which
items are typically excluded by securities analysts in their
published estimates of the Partnership's financial results:
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Three Nine
Months Months
Ended Ended
September September
30, 2008 30, 2008
--------- ---------
(unaudited) (unaudited)
Foreign currency exchange gains (losses)(1) 1,635 (888)
Deferred income tax recovery on unrealized
foreign exchange losses(2) 16,900 8,200
Unrealized losses from interest rate swaps(3) (11,783) (15,122)
Non-controlling interests' share of above
items(4) (4,452) 7,405
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Total 2,300 (405)
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--------------------------------------------------------------------------
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Three Nine
Months Months
Ended Ended
September September
30, 2007 30, 2007
--------- ---------
(unaudited) (unaudited)
(restated) (restated)
--------- ---------
Foreign currency exchange losses(1) (4,652) (12,949)
Deferred income tax expense on unrealized foreign
exchange gains(2) (12,000) (19,700)
Unrealized losses from interest rate swaps(3) (39,008) (10,399)
Non-controlling interests' share of above
items(4) 38,329 30,054
--------------------------------------------------------------------------
Total (17,331) (12,994)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Foreign currency exchange gains (losses) primarily relate to the
Partnership's revaluation of all foreign currency-denominated monetary
assets and liabilities based on the prevailing exchange rate at the
end of each reporting period and also reflects the unrealized gains
and losses from the change in fair value of certain foreign exchange
forward contracts that do not qualify as effective hedges for
accounting purposes.
(2) Portion of deferred income tax related to unrealized foreign exchange
gains and losses.
(3) Reflects the unrealized gains (losses) due to changes in the
mark-to-market value of non-designated interest rate swaps.
(4) Primarily relates to Teekay's non-controlling interest share of the
items noted above.
TEEKAY OFFSHORE PARTNERS L.P.
APPENDIX B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
(in thousands of U.S. dollars)
Description of Non-GAAP Financial Measure - Distributable Cash
Flow (DCF)
Distributable cash flow represents net income adjusted for
depreciation and amortization expense, non-controlling interest,
non-cash items, estimated maintenance capital expenditures, gains
and losses on vessel sales, change in fair value of interest rate
swaps not qualifying for hedge accounting, income taxes and foreign
exchange related items. Maintenance capital expenditures represent
those capital expenditures required to maintain over the long-term
the operating capacity of, or the revenue generated by, the
Partnership's capital assets. Distributable cash flow is a
quantitative standard used in the publicly-traded partnership
investment community to assist in evaluating a partnership's
ability to make quarterly cash distributions. Distributable cash
flow is not required by United States generally accepted accounting
principles and should not be considered as an alternative to net
income or any other indicator of the Partnership's performance
required by United States generally accepted accounting principles.
The table below reconciles distributable cash flow to net
income.
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Three Months Ended
September 30, 2008
(unaudited)
--------------------------------------------------------------------------
Net Income 20,625
Add:
Depreciation and amortization 34,042
Non-controlling interest 19,048
Change in fair value of interest rate swaps 11,783
Less:
Foreign exchange and other, net (732)
Income tax recovery (29,485)
Estimated maintenance capital expenditures (20,288)
--------------------------------------------------------------------------
Distributable Cash Flow before Non-Controlling Interest 34,993
Non-controlling interests' share of DCF (17,487)
--------------------------------------------------------------------------
Distributable Cash Flow 17,506
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. dollars)
Three Months Ended September 30, 2008
-------------------------------------
(unaudited)
Conven-
Shuttle tional
Tanker Tanker FSO
Segment Segment Segment Total
--------------------------------------------------------------------------
Net voyage revenues(1) 121,052 25,939 17,408 164,399
Vessel operating expenses 33,970 6,433 7,045 47,448
Time-charter hire expense 31,474 - - 31,474
Depreciation and amortization 22,880 5,636 5,526 34,042
General and administrative 10,825 2,458 804 14,087
--------------------------------------------------------------------------
Income from vessel operations 21,903 11,412 4,033 37,348
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Three Months Ended June 30, 2008
--------------------------------
(unaudited)
Conven-
tional
Shuttle Tanker
Tanker Segment FSO
Segment (2) Segment Total
--------------------------------------------------------------------------
Net voyage revenues(1) 121,624 24,982 18,067 164,673
Vessel operating expenses 31,975 6,152 7,380 45,507
Time-charter hire expense 32,262 - - 32,262
Depreciation and amortization 23,168 5,718 7,561 36,447
General and administrative 12,602 1,869 1,213 15,684
--------------------------------------------------------------------------
Income from vessel operations 21,617 11,243 1,913 34,773
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Net voyage revenues represents voyage revenues less voyage expenses,
which comprise all expenses relating to certain voyages, including
bunker fuel expenses, port fees, canal tolls and brokerage
commissions. Net voyage revenues is a non-GAAP financial measure used
by certain investors to measure the financial performance of shipping
companies. Please see the Partnership's web site at
www.teekayoffshore.com for a reconciliation of this non-GAAP measure
as used in this release to the most directly comparable GAAP financial
measure.
(2) Includes the results of the Dropdown Predecessor for two vessels, the
SPT Explorer and the SPT Navigator, from April 1, 2008 to June 17,
2008, when these vessels were operating and under the common control
of Teekay prior to their acquisition by Teekay Offshore. As a result
of the inclusion of the Dropdown Predecessor for the two vessels,
income from vessel operations increased by $1.5 million for the three
months ended June 30, 2008.
FORWARD LOOKING STATEMENTS
This release 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
Partnership's future growth prospects; the potential for Teekay to
offer up to four Aframax shuttle tanker newbuildings either with
new long-term fixed-rate contracts, or to service the
contracts-of-affreightment in the North Sea; the potential for
Teekay to offer Teekay Petrojarl's existing FPSO units; the
potential for Teekay to secure future FPSO projects through its
wholly-owned subsidiary, Teekay Petrojarl ASA; the potential for
Teekay to offer to Teekay Offshore additional limited partner
interests in OPCO; and the Partnership's exposure to foreign
currency fluctuations, particularly in Norwegian Kroner. The
following factors are among those that could cause actual results
to differ materially from the forward-looking statements, which
involve risks and uncertainties, and that should be considered in
evaluating any such statement: changes in production of offshore
oil, either generally or in particular regions; changes in trading
patterns significantly affecting overall vessel tonnage
requirements; changes in applicable industry laws and regulations
and the timing of implementation of new laws and regulations; the
potential for early termination of long-term contracts and
inability of the Partnership or OPCO to renew or replace long-term
contracts; the failure of Teekay to offer additional interests in
OPCO to Teekay Offshore; required approvals by the board of
directors of Teekay and Teekay Offshore, as well as the conflicts
committee of Teekay Offshore to acquire additional interests in
OPCO; the Partnership's ability to raise financing to purchase
additional vessels and/or interests in OPCO; changes to the amount
or proportion of revenues, expenses, or debt service costs
denominated in foreign currencies; and other factors discussed in
Teekay Offshore's filings from time to time with the SEC, including
its Report on Form 20-F for the fiscal year ended December 31,
2007. The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Partnership's expectations with respect thereto or any
change in events, conditions or circumstances on which any such
statement is based.
Contacts: Teekay Offshore Partners L.P. Kent Alekson Investor
Relations Enquiries (604) 609-6442 Teekay Offshore Partners L.P.
Alana Duffy Media Enquiries (604) 844-6605 Website:
www.teekayoffshore.com
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