Teekay Offshore Partners Announces Accretive Acquisition of Remaining 49 Percent of Teekay Offshore Operating L.P.
March 03 2011 - 9:00AM
Marketwired
Teekay Offshore GP L.L.C., the general partner of Teekay Offshore
Partners L.P. (Teekay Offshore or the Partnership) (NYSE: TOO)
announced today that the Partnership has agreed to acquire the
remaining 49 percent interest in Teekay Offshore Operating L.P.
(OPCO) from Teekay Corporation (Teekay) for a total purchase price
of $390 million. OPCO currently operates a fleet of 33 shuttle
tankers (including five chartered-in vessels), four Floating
Storage and Offtake (FSO) units, nine double-hull conventional oil
tankers and two lightering vessels. Upon the completion of this
transaction, Teekay Offshore will own 100 percent of OPCO,
including all general partner interests.
Teekay Offshore will finance the acquisition through a
combination of $175 million in cash and by issuing approximately
7.6 million new common units (and associated general partner
interest) to Teekay Corporation. The number of common units issued
to Teekay was determined based on the 10-day volume-weighted
average price, or $27.86 per unit, preceding the date of Teekay's
offer to sell its remaining 49 percent interest in OPCO to the
Partnership. The Partnership expects to complete this acquisition
during the week of March 7, 2011.
The Board of Directors of the Partnership's general partner and
its Conflicts Committee have approved the transaction. The
Conflicts Committee retained independent legal and financial
advisors to assist it in evaluating the transaction.
"We are pleased to acquire the remaining 49 percent of OPCO
which we expect will be accretive to the Partnership's
distributable cash flow per unit and will also simplify its
ownership structure," commented Peter Evensen, Chief Executive
Officer of Teekay Offshore GP L.L.C.. "As the world's largest owner
and operator of shuttle tankers, the outlook for OPCO is positive
due to increased offshore oil production activity in our core
markets of the North Sea and Brazil, which is augmented by higher
oil prices." Mr. Evensen continued, "In addition, with 100 percent
ownership of OPCO, the Partnership will fully benefit from the
shuttle tanker contract amendments completed in 2010, which
increased the amount and stability of OPCO's cash flows."
About Teekay Offshore
Teekay Offshore Partners L.P., a publicly-traded master limited
partnership formed by Teekay Corporation (NYSE: TK), is an
international provider of marine transportation, production and
storage services to the offshore oil industry. Following the
acquisition of the remaining interests in OPCO, Teekay Offshore
will own a 100 percent interest in and control Teekay Offshore
Operating L.P., a Marshall Islands limited partnership with a fleet
of 33 shuttle tankers (including five chartered-in vessels), four
Floating Storage and Offtake (FSO) units, nine double-hull
conventional tankers and two lightering vessels. Teekay Offshore
Operating L.P has also agreed to acquire one newbuilding shuttle
tanker from Teekay Corporation upon the commencement of its
time-charter contract in 2011. In addition, Teekay Offshore has
direct ownership interests in two shuttle tankers, two FSO units,
and two Floating Production, Storage and Offloading (FPSO) units.
Teekay Offshore also has rights to participate in certain other
FPSO and FSO opportunities of Teekay Corporation.
Teekay Offshore Partners' common units trade on the New York
Stock Exchange under the symbol "TOO".
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
expected accretion to the Partnership's distributable cash flow per
unit resulting from the Partnership's acquisition of the remaining
49 percent interest in OPCO; the timing of completing the
acquisition of the remaining 49 percent interest in OPCO; the
outlook for OPCO's business, particularly in its core markets of
the North Sea and Brazil; and the expected increase in the amount
and stability of OPCO's cash flows resulting from the shuttle
tanker contract amendments completed in 2010. 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: vessel operations and oil production volumes;
variations in expected levels of field maintenance; increased
operating expenses; different-than-expected levels of oil
production in the North Sea and Brazil offshore fields; potential
early termination of contracts; 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,
2009. 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. Scott Gayton Investor
Relations Enquiries + 1 (604) 609-4740 www.teekayoffshore.com
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From Jul 2023 to Jul 2024