Teekay Offshore Announces Distribution Increase and Provides 2013 Distribution Guidance; Receives Offer to Acquire 50% Intere...
April 18 2013 - 10:15AM
HAMILTON, BERMUDA--(Marketwired - April 18, 2013)
- 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 Baúna
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.
Contact
Information
Teekay Offshore Partners L.P.
Kent Alekson
Investor Relations
+1 (604) 609-6442
www.teekayoffshore.com
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Teekay Offshore Partners L.P. via Thomson Reuters
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