Target Information

Teekay Corporation, based in Hamilton, Bermuda, is an operational leader and project developer in the marine midstream sector. The company has a significant portfolio that includes a fleet of approximately 154 vessels comprising conventional tankers, liquefied natural gas (LNG) carriers, and offshore production and storage units. As of May 1, 2012, Teekay Parent directly owned 17 conventional tankers, of which it has agreed to sell 13 to its subsidiary Teekay Tankers for an estimated $455 million.

In the first quarter of 2012, Teekay reported a cash flow from vessel operations (CFVO) of $203.5 million, marking a 37% increase from the previous year. The company's operations are supported by its interests in two master limited partnerships: Teekay LNG Partners L.P. and Teekay Offshore Partners L.P., demonstrating a diversified business model within the marine transportation sector.

Industry Overview

Teekay operates within the marine transportation industry, which has historically been influenced by global oil production levels and seasonal demand fluctuations. During the first quarter of 2012, crude tanker rates experienced an upturn du