Teekay Offshore Announces Distribution Increase and Provides 2013 Distribution Guidance; Receives Offer to Acquire 50% Intere...
April 18 2013 - 9:09AM
Marketwired
Teekay Offshore Partners (Teekay Offshore or the Partnership)
(NYSE:TOO) today announced that the Board of Directors of its
general partner, Teekay Offshore GP LLC, has approved an increase
to the Partnership's first quarter of 2013 cash distribution to be
paid on May 14, 2013, to all unitholders of record on April 30,
2013. Teekay Offshore will increase its first quarter distribution
by $0.0128 per unit, or approximately 2.5 percent, to $0.5253 per
unit, and management intends to recommend to the Board of Directors
an additional distribution increase of a minimum of 2.5 percent
later this year.
The increase to the first quarter distribution coincides with
the expected completion of the previously announced acquisition of
the Voyageur Spirit FPSO unit which began production on April 13,
2013. Teekay Offshore will now recognize the results from the
Voyageur Spirit acquisition in the second quarter of 2013,
commencing from the acquisition date which is expected to occur
before the end of April 2013.
In addition, Teekay Offshore today announced that it has
received an offer from Teekay Corporation (Teekay) to acquire its
50 percent interest in the Cidade de Itajai (Itajai) FPSO unit at
Teekay's fully built-up cost. The Itajai FPSO has been operating on
the Bauna and Piracaba (previously named Tiro and Sidon) fields in
the Santos Basin offshore Brazil since February 2013 under a
nine-year time-charter contract (plus extension options) with
Petroleo Brasileiro SA (Petrobras). The offer is currently being
reviewed by the Board of Directors of the Partnership's general
partner and its Conflicts Committee. The remaining 50 percent
interest in the Itajai FPSO is owned by Brazilian-based Odebrecht
Oil & Gas.
"We are pleased that the accretive acquisition of the Voyageur
Spirit FPSO, our largest FPSO purchase to-date, will soon be
completed and we are once again in a position to increase the
Partnership's distribution," commented Peter Evensen, Chief
Executive Officer of Teekay Offshore GP LLC. "Looking forward, with
multiple near-term growth opportunities, including four newbuilding
shuttle tankers delivering in 2013 onto 10-year contracts with the
BG Group, and multiple FPSO assets potentially available in the
future for purchase from our sponsor, Teekay Corporation, we
believe we are well-positioned to continue increasing our
distributions through accretive acquisitions."
About Teekay Offshore Partners L.P.
Teekay Offshore Partners L.P. is an international provider of
marine transportation, oil production and storage services to the
offshore oil industry focusing on the fast-growing, deepwater
offshore oil regions of the North Sea and Brazil. Teekay Offshore
is structured as a publicly-traded master limited partnership and
owns interests in 37 shuttle tankers (including four chartered-in
vessels and four committed newbuildings), four floating production,
storage and offloading (FPSO) units, five floating storage and
offtake (FSO) units and six conventional oil tankers. The majority
of Teekay Offshore's fleet trades on long-term, stable contracts.
In addition, Teekay Offshore has rights to participate in certain
other FPSO and shuttle tanker opportunities provided by Teekay
Corporation (NYSE:TK) and Sevan Marine ASA (Oslo Bors:SEVAN).
Teekay Offshore's 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
amount and timing of potential future distribution increases per
common unit; the timing and the certainty of the Partnership's
acquisition of the Voyageur Spirit FPSO unit; the effect of the
Voyageur Spirit FPSO acquisition and delivery of four shuttle
tanker newbuildings on the Partnership's future distributable cash
flow; the timing and certainty of the Partnership's potential
acquisition of Teekay's 50 percent interest in the Itajai FPSO and
the impact on the Partnership's future distributable cash flow; and
the potential for additional asset acquisitions. 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;
significant changes in oil prices; 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; potential delays in the delivery of the four newbuilding
shuttle tankers and commencement of their respective time-charter
contracts with the BG Group; failure or delay of the completion of
the Partnership's acquisition of the Voyageur Spirit FPSO unit;
failure to obtain required approvals by the Conflicts Committee of
Teekay Offshore's general partner to acquire vessels offered by
Teekay, including the Itajai, or third parties; the Partnership's
ability to raise adequate financing to purchase additional assets;
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, 2012. 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 +1 (604) 609-6442 www.teekayoffshore.com
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From May 2024 to Jun 2024
Teekay Offshore Partners (NYSE:TOO)
Historical Stock Chart
From Jun 2023 to Jun 2024