Upload
teekay-offshore-partners-lp
View
1.879
Download
1
Tags:
Embed Size (px)
Citation preview
June 18, 2012
Teekay Offshore Partners Investor Day Presentation
2 www.teekayoffshore.com
This presentation 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, cash flows and distributions to unitholders; the timing of delivery of vessels under
construction or conversion; the industry fundamentals for deepwater offshore oil production, storage
and transportation; the potential for Teekay to offer additional vessels to the Partnership and the
Partnership’s acquisition of any such vessels, including the Petrojarl Foinaven, the Petrojarl Cidade de
Itajai, the Voyageur Spirit, the Hummingbird Spirit and the newbuilding FPSO unit that will service the
Knarr field under contract with BG Norge Limited; and the potential for the Partnership to acquire other
vessels or offshore projects from Teekay or third parties. 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; variability in shuttle tanker tonnage requirements under
the Statoil master agreement; different-than-expected levels of oil production in the North Sea and
Brazil offshore fields; potential early termination of contracts; failure of Teekay to offer to the Partnership
additional vessels; the inability of the joint venture between Teekay and Odebrecht to secure new Brazil
FPSO projects that may be offered for sale to the Partnership; failure to obtain required approvals by
the Conflicts Committee of Teekay Offshore’s general partner to acquire other vessels or offshore
projects from Teekay or third parties; the Partnership’s ability to raise 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, 2011. 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.
Forward Looking Statements
3 www.teekayoffshore.com
• Leading market positions
○ Market leader in harsh weather FPSOs and shuttle tankers
• Stable operating model
○ Diversified portfolio of fixed-rate contracts with major oil companies
• Visible growth through accretive acquisitions and projects
○ Seven FPSO units will be available for purchase from Sponsor, Teekay
Corporation
○ Four advanced shuttle tankers scheduled for delivery in 2013
• Strong fundamentals driving industry growth
○ High E&P spending driving record number of planned FPSO projects
• Advantageous tax structure
○ Teekay Offshore is a 1099 filer – no K-1 reporting requirements
Investment Highlights
4 www.teekayoffshore.com
• Teekay Offshore completed IPO
in Dec. 2006 by Teekay Corp.
• $1.9bn* Market Cap
• Strong Sponsor
○ Teekay Corp. ownership: 33%
(incl. 2% GP interest)
• Core focus: Deepwater offshore
production, floating storage and
transport projects
• 56 vessels in global fleet (Shuttle
tankers, FSOs, FPSOs, oil
tankers)
• 3 -10 years fixed-rate contracts
Teekay Offshore Overview
*As at June 8, 2012
5 www.teekayoffshore.com
Increase distributions per unit by executing on the following strategies:
• Expand presence in high-growth regions
○ Focus on leadership positions in Brazil and North Sea
• Continue to pursue new high-return projects in the FPSO, FSO and
shuttle tanker segments
• Opportunistically acquire existing assets on long-term fixed-rate
contracts
○ Preference for assets with contracts provides immediate accretion
○ Several FPSOs at Sponsor – received offer to acquire Voyageur Spirit
FPSO from Teekay Corp
• Provide superior customer service by maintaining high reliability,
safety, environmental and quality standards
○ Operational expertise is a competitive advantage
Strong Industry Fundamentals Support Our
Business Strategy
6 www.teekayoffshore.com
Source: Clarkson Research Services, Platou, Company Websites, Industry Sources.
Market Leader in Core Segments
Leading Operator of
Leased FPSOs in the
North Sea
Control More Than
50% of the World’s Fleet
TeekayOffshore /
TeekayCorp.
Bluewater Maersk BWOffshore
5
3 2 1
2 N
um
be
r o
f F
PS
O U
nits
7
Num
be
r o
f S
hu
ttle
Ta
nke
rs
TeekayOffshore
KnutsenNYK
Transpetro Viken /PJMR
Lauritzen
36
18
2 3
4
4
7 5
40
22
9 3
Existing Newbuildings on Order
7 www.teekayoffshore.com
Expertise in Deepwater and Harsh Environments
North Sea
• 20 shuttle tankers owned,
4 in-chartered
• 1 FPSO + 6 owned
by Sponsor
Brazil
• 16 shuttle tankers owned
• 2 FPSOs + 1 owned by
Sponsor
8 www.teekayoffshore.com
• Substantial portfolio of long-term, fixed-rate contracts with high quality
oil and gas companies
○ Total forward fixed-rate revenues of $3.8 billion
○ Weighted average remaining contract life of over 5.0 years
Attractive Contract Portfolio
5.4 years
3.2 years 2.8 years
Average
Contract Life
High
Quality
Customers
Shuttle Tankers FSO Units Conventional Tankers
4.1 years
FPSO Units
Forward
Revenues $2.6 bn $0.2 bn $0.3 bn
$0.7 bn
40 5 8 # of units 3
9 www.teekayoffshore.com
2012 2013 2014 2015 2016 2017 2018
Vessel Built 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Fuji Spirit 2003
Kilimanjaro Spirit 2004
SPT Navigator 2008
SPT Explorer 2008
Poul Spirit 1995
Gotland Spirit 1986
Hamane Spirit 1997 Sold
Torben Spirit 1994 For sale
Leyte Spirit 1992 In lay-up, FSO candidate
Luzon Spirit 1992 In lay-up, FSO candidate
• Expect reduction in conventional tanker fleet
○ Do not anticipate renewing conventional tanker charters
○ Will keep some conventional hulls for future redeployment as FSOs
- Two hulls currently tendered for FSO project in Asia
• Acquisition of FPSOs will replace lost cash flow
○ Example: cash flow from Piranema FPSO = approximately 4 conventional tankers
Conventional Tanker Portfolio Rolling-off
10 www.teekayoffshore.com
• Since IPO, greater proportion of TOO’s cash flow has come from high-
growth FPSO sector
○ Higher risk-adjusted returns
○ With roll-off of conventional tanker contracts, TOO is becoming a true ‘pure-play’ in
the build-out of offshore crude oil
TOO’s Business Mix is Evolving
*Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense, write-down of vessels and amortization of deferred gains and in-process
revenue contract, includes the realized gains (losses) on the settlement of foreign exchange forward contracts and adjusting for direct financing leases to a cash basis. 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.
TOO Q1-07 CFVO*
By Segment
66%
29%
5% 56%
7%
10%
27%
Conventional Tankers FPSOs Shuttle Tankers FSOs
TOO Q1-12 CFVO*
By Segment
11 www.teekayoffshore.com
Significant Visible Growth Opportunities
Petrojarl
Foinaven (BP)
Petrojarl I
(Statoil)
Petrojarl Banff
(CNR)
Hummingbird
Spirit (Centrica)
Voyageur Spirit
(E.ON)
4 Shuttle
Tankers (BG)
Directly ordered
by TOO
Assets and Contracts
Suitable for Acquisition
Acquisition Candidates
Following Contract
Renewal / Amendment
Knarr FPSO
(BG)
Cidade de Itajai
(50%)(Petrobras)
Omnibus agreements with Teekay & Sevan provide additional opportunities
Received offer
from Teekay Corp
12 www.teekayoffshore.com
• Charterer: E-ON Ruhrgas
• Year Built: 2009
• Upgrade in progress at Nymo
Shipyard in Arendal, Norway
• Expected First-Oil: Oct. 2012
• Cylindrical hull design by Sevan
Marine
• Firm Contract Length:5 years
• Contract Options:
evergreen with 12-month
cancellation
• Expected CFVO ~$75m p.a.
• Operating Water Depth +120m
• Processing Capacity: 30,000
bbls/d
• Storage Capacity: 270,000 bbls
• Field Application: Oil production,
Gas export and water injection
• Huntington Field North Sea, U.K.
Voyageur Spirit FPSO (ex. Sevan Voyageur)
13 www.teekayoffshore.com
• Charterer: BG Group
• Delivery Dates:
○ Hull 2037, Q2-2013
○ Hull 2038, Q2-2013
○ Hull 2039, Q3-2013
○ Hull 2040, Q4-2013
• Suezmax-sized DP2 shuttle tankers
• Delivered Cost: ~$120m / vessel
• Being constructed at Samsung
Shipyard, South Korea
• Contract Length:
10 years plus 2 x 5-year options
• Will service BG’s pre-salt
requirements
• BG is one of the largest
international oil companies
operating in Brazil
Four BG Shuttle Tankers
14 www.teekayoffshore.com
• Charterer: Petrobras
• Expected First-Oil: December 2012
• Aframax conversion at Jurong
Shipyard, Singapore
• 50/50 Joint Venture with Brazil-
based Odebrecht
• Firm Contract Length: 9 years
• Extension Options: 6 x 1 years
• Expected CFVO: $25m (50% basis)
• 80% Project Financing arranged
with syndicate of International Banks
• Designed Water Depth:
up to 1,000m
• Operating Depth: ~250m
• Processing Capacity: 80,000 bbls/d
• Storage Capacity: 650,000 bbls
• Tiro & Sidon fields on Block BM-S-
40, Santos Basin, offshore Brazil
○ +150 million barrels of recoverable oil
Petrojarl Cidade de Itajai FPSO (ex. Tiro & Sidon)
15 www.teekayoffshore.com
• Charterer: BG Group
• Expected First-Oil: 1H 2014
• Purpose built in South Korea by
Samsung Heavy Industries
• Firm Contract Length: 6 or 10
years
• Extension Options:
up to 20 years (total)
• Processing Capacity: 63,000
bbls/d
• Designed to handle a wide-range
of LPGs
• Operating Water Depth: ~400m
• Est. Recoverable Reserves:
70-150 mmbbls
• Knarr Field, North Sea
Knarr FPSO
16 www.teekayoffshore.com
Leading indicators for offshore
production, storage and
transportation demand
Linking Rig to Refinery
Teekay’s role in the
offshore value chain
17 www.teekayoffshore.com
Drilling Activity a Key Leading Indicator
0
20
40
60
80
100
120
0
20
40
60
80
100
$ / B
BL
Oil
Pri
ce
MO
DU
Ord
ers
MODU Orders Versus Oil Price
Jack Ups Semi-subs and Drillships Oil Price (USD)
• 81 mobile drilling unit (MODU) orders placed in 2011
○ Highest since 1980
• Growth strongest in the deepwater / ultra-deepwater drilling fleet
• Deepwater wells yielding the biggest results
○ Average discovery size in 2010 for wells >1,500m depth was 1,000+ mboe
Source: Clarksons, Douglas Westwood, BP
18 www.teekayoffshore.com
• Resurgence in North Sea
drilling activity yielding
results
○ 1.7 - 3.3 billion barrel Johan
Sverdrup find was biggest of
2011
• New finds tend to suit an
FPSO and shuttle tanker
solution
• Enhanced Oil Recovery
leading to renewed
production in mature areas
• Move into Barents Sea
requires high-specification
shuttle tankers and FPSOs
North Sea Market – Resurgent Activity
Record high level
of exploration
*Source: Norwegian Petroleum Directorate
Norwegian Exploration Wells Drilled*
Norwegian Sea
(existing shuttle
region)
North Sea
(existing shuttle
area)
Barents Sea
(emerging
shuttle region)
19 www.teekayoffshore.com
Brazil Market – More Growth to Come
0
20
40
60
80
100
120
140
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Brazil Offshore Production Fleet Development
Installed On Order Planned
• Brazilian offshore production fleet set to double in 2011-18
○ Growth in offshore production drives demand for shuttle tankers and FPSOs
• Petrobras is aggressively increasing its production capability
• Other oil companies also have shuttle requirements in offshore Brazil
Source: IMA
20 www.teekayoffshore.com
• The number of projects which could require an FPSO has doubled in
the past five years
• Estimate of 20-28 FPSO orders per year over the next five years
depending on the global economy, oil demand and energy prices
• Operational and engineering expertise required to be successful in
the leased FPSO business creates a high barrier to entry
Strong Future Demand for FPSOs
0 50 100 150
Apr-12
End-08
End-06
141
96
68
FPSOs in the Planning Stage
0
5
10
15
20
25
30
Avg.Orders
per year
OrdersJan-Apr
2012
LowCase
BaseCase
HighCase
15
10
20
24
28
FPSO Forecast (Next 5 Years)
Avg.
Orders
per year
Orders
Jan-Apr
2012
Low
Case
Base
Case
High
Case
Source: IMA Source: IMA
(2007 – 2011) Next 5 Years
21 www.teekayoffshore.com
• Resurgence in offshore activity creating new FSO opportunities
○ Re-emergence of FSO demand in the North Sea
○ New development in S.E. Asia
• 22 projects currently considering the use of an FSO
○ 11 in Asia; 4 in North Sea
Increased Demand for FSO Solutions
0
2
4
6
8
10
12
S.E. Asia NorthSea
MED GoM Brazil Africa
11
4 3
2 1 1
Planned FSO Projects
0
2
4
6
8
10
TankerPacific
Teekay Modec TradaMaritime
MISC
7
5
4 4
3
Top Leased FSO Operators
4 Owners with 2 units
19 Owners with 1 unit
22 www.teekayoffshore.com
• Leading market positions
• Stable operating model
• Visible growth through accretive acquisitions and projects
• Strong fundamentals driving industry growth
• Advantageous tax structure – no K-1 reporting requirements
Investment Highlights