Teekay Offshore Partners L.P.

Teekay Offshore Partners L.P.

April 29, 2010 16:14 ET

Teekay Offshore Partners L.P. Announces 5.6 Percent Increase to Distribution

HAMILTON, BERMUDA--(Marketwire - April 29, 2010) - Teekay Offshore GP LLC, the general partner of Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) (NYSE:TOO), has declared a cash distribution of $0.475 per unit for the quarter ended March 31, 2010, an increase of $0.025 per unit, or 5.6 percent, from the previous quarter.

"We are pleased to announce an increase to the Partnership's distribution," commented Peter Evensen, Chief Executive Officer of Teekay Offshore GP LLC. "This increase is a result of the incremental cash flow contribution provided by the Petrojarl Varg FPSO unit, which we acquired in September 2009, and the Falcon Spirit FSO unit, which we acquired in April 2010. Both these units are currently generating stable cash flows under long-term, fixed-rate contracts." Mr. Evensen added, "The increase also reflects the improving profitability in our shuttle tanker fleet."

The cash distribution is payable on May 14, 2010 to all unitholders of record on May 7, 2010.

About Teekay Offshore Partners L.P.

Teekay Offshore Partners L.P., a publicly-traded master limited partnership formed by Teekay Corporation (NYSE:TK), is an international provider of marine transportation, production and storage services to the offshore oil industry. Teekay Offshore owns a 51 percent interest in and controls Teekay Offshore Operating L.P., a Marshall Islands limited partnership with a fleet of 33 shuttle tankers (including seven chartered-in vessels), four FSO units, nine conventional oil tankers and two lightering vessels. In addition, Teekay Offshore has direct ownership interests in two shuttle tankers, two FSO units, and one FPSO unit. Teekay Offshore also has rights to participate in certain other FPSO and FSO opportunities of Teekay Corporation.

Teekay Offshore Partners' 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 future cash flows; incremental distributable cash flow contribution from the Petrojarl Varg FPSO unit and Falcon Spirit FSO unit; and the profitability of the Partnership's shuttle tanker fleet. 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 production of offshore oil, either generally or in particular regions; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; the potential for early termination of long-term contracts and inability of the Partnership or OPCO to renew or replace long-term contracts; changes in expected operating costs; changes to the amount or proportion of revenues, expenses, or debt service costs denominated in foreign currencies; and other factors discussed in Teekay Offshore's filings from time to time with the United States Securities and Exchange Commission, including its Report on Form 20-F for the fiscal year ended December 31, 2008. 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 enquiries
    +1 (604) 609-6442
    Teekay Offshore Partners L.P.
    Alana Duffy
    Media enquiries
    +1 (604) 844-6605