Teekay Offshore Partners Announces Common Unit Distribution Change
January 08 2019 - 5:27PM
Teekay Offshore GP LLC, the general partner of Teekay Offshore
Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO),
today announced that the Partnership is reducing its quarterly
common unit cash distributions to zero, down from $0.01 per common
unit in previous quarters, in order to reinvest additional cash in
the business and further strengthen its balance sheet. There are no
changes to the quarterly cash distributions relating to any of the
Partnership’s outstanding preferred units, which were declared
today and announced under a separate news release.
“The decision to reduce our common unit cash
distributions was not reflective of the financial performance of
the Partnership, which continues to largely generate stable cash
flows, supported by a large and well-diversified portfolio of
fee-based contracts with high-quality counterparties,” commented
Ingvild Sæther, President and CEO of Teekay Offshore Group
Ltd. “Our Board of Directors has carefully assessed our
capital allocation plan and believes it is in the best interests of
our common unitholders to conserve more of our internally generated
cash flows to reinvest in the business and reduce financial
leverage. We remain focused on creating long-term value to our
unitholders through executing on our business strategy, which is
primarily focused on delivering on our existing growth projects,
extending contracts and redeploying existing assets on long-term
charters, further strengthening our balance sheet, and selectively
pursuing strategic growth projects in our core markets.”
About Teekay Offshore
Teekay Offshore Partners L.P. is a leading
international midstream services provider to the offshore oil
production industry, primarily focused on the ownership and
operation of critical infrastructure assets in offshore oil regions
of the North Sea, Brazil and the East Coast of Canada. Teekay
Offshore is structured as a publicly-traded master limited
partnership with consolidated assets of approximately $5.4 billion,
comprised of 63 offshore assets, including floating production,
storage and offloading (FPSO) units, shuttle tankers (including six
newbuildings), floating storage and offtake (FSO) units,
long-distance towing and offshore installation vessels, a unit for
maintenance and safety (UMS) and conventional tankers. The majority
of Teekay Offshore’s fleet is employed on medium-term, stable
contracts. Brookfield Business Partners L.P.
(NYSE:BBU)(TSX:BBU.UN), together with its institutional partners
(collectively Brookfield), and Teekay Corporation (NYSE:TK) own 51
percent and 49 percent, respectively, of Teekay Offshore’s general
partner.
Teekay Offshore's common units and preferred
units trade on the New York Stock Exchange under the symbols "TOO",
"TOO PR A", "TOO PR B" and “TOO PR E”, respectively.
For Investor Relationsenquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website:
www.teekay.com
Forward Looking Statement
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: the
Partnership’s future financial performance; and the Partnership’s
future value creation, including the impact of the Partnership’s
growth projects, contract extensions and redeployments, a stronger
balance sheet and future growth opportunities. 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 exploration, production and storage of
offshore oil and gas, either generally or in particular regions
that would impact expected future growth, particularly in or
related to North Sea, Brazil and East Coast of Canada offshore
fields; significant changes in oil prices; variations in expected
levels of field maintenance; increased operating expenses;
potential early termination of contracts; shipyard delivery delays
and cost overruns; delays in the commencement of charter contracts;
the inability of charterers to make future charter payments; the
inability of the Partnership to renew or replace long-term
contracts on existing vessels; the ability to fund the
Partnership’s remaining capital commitments and debt
maturities; 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, 2017. 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.
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