Welcome to Teekay Corporation's Fourth Quarter and Fiscal 2018 Earnings Results Conference Call. During the call, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded. Now, for opening remarks and introductions, I'd like to turn the call over to Mr. Kenneth Hvid, Teekay's President and Chief Executive Officer. Please go ahead.

Before we begin, I'd like to direct all participants to our website at www.teekay.com, where you'll find a copy of our fourth quarter 2018 earnings presentation. Kenneth and Vince will review this presentation during today's conference call. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the fourth quarter 2018 earnings release and earnings presentation, available on our website. I will now turn the call over to Vince to begin.

Thanks Lee, and thank you all for joining us today for Teekay Corporation's fourth quarter 2018 earnings conference call. I will briefly review our fourth quarter results, before I hand the call over to Kenneth. Starting with Slide 3 of the presentation, in the fourth quarter, Teekay Corporation generated total consolidated cash flow from vessel operations or CFVO of $247 million, which is an increase of $50 million or 25% from the prior quarter, and up 34% from the prior year's fourth quarter. We also reported a consolidated adjusted net loss of $2 million or $0.02 per share, an improvement from the adjusted net loss of $11 million or $0.11 per share in the prior quarter. In the fourth quarter consolidated results, this marks the best quarter of 2018. As shown in the graph on the far right, the improvements quarter-over-quarter can primarily be attributed to higher cash flows in Teekay LNG, due to the delivery of contract delivery and contract start-up of various LNG newbuildings, and certain vessels commencing new contracts at higher rates, and an increase in spot tanker rates in Teekay Tankers. Fourth quarter results also included our minority portion of Teekay Offshore's previously announced positive settlement with Petrobras. However Teekay Parent's CFVO declined in the fourth quarter, mainly due to the unplanned maintenance shutdown of the Banff FPSO, which we mentioned during last quarter's earnings call and an unplanned shutdown of the Foinaven FPSO from late November, as well as higher oil tariff revenues recognized in the third quarter. I'm pleased to report that both FPSO units were back up and running as of early November for the Banff, and early January for the Foinaven. As a reminder, since we deconsolidated Teekay Offshore on September 25th of last year, our total CFVO for fiscal 2018 only…

Thank you, Vince. If you turn to Slide 5, I’ll now provide an update on all three directly owned that FPSOs. We continue to have discussions with each of the three charters on potential multiyear contract extensions as these units are needed by our customers to continue producing on the fields. So since the value of these units are highly correlated with the associated charter contracts in place, we continue to prioritize securing contract extensions to maximize the value of these unencumbered assets before engaging in any formal sale discussions with potential buyers. Despite the reason volatility in oil prices, we believe that the longer term offshore fundamentals remain intact and that all three FPSOs will continue to generate value for our customers and TK. In the meantime, we benefit from improving oil prizes from these units, all of which have contracts that have fixed charter rates with upside exposure for both oil prices and production at oil price level starting from $45 per barrel. Our FPSO CFVO results improved by $45 million in 2018, compared to 2017. Also as highlighted on the graph on this slide, our results during the fourth quarter were impacted by unplanned shutdown on two of our FPSO units. Excluding the impact of these maintenance shutdowns the fourth quarter CFVO would have been close to $11 million during the quarter. Looking at the first quarter, we expect our CFVO to range between $4 million and $8 million at all the prices between $60 and $70 per barrel. This range is lower than the $11 million in the false quarter after adjusting for the maintenance shutdowns as a result of $6 million of annual operational tariff revenues that were recorded in the fourth quarter under the Foinaven contract and lower expected average oil prices in the…

[Operator Instructions] We will now take our first question from Nick Kovich [Kovich Capital Management]. Please go ahead.

Good afternoon. Wanted to follow-up with management. The industry has experienced a lot of changes over the last several years. And one of the things that many companies have done relates to corporate structure, and I know you changed Teekay LNG from a K1 MLP to a C-Corp MLP. Could you address one of the trends in the industry and that's the collapse of the IDR structure and I wonder what management's intentions are on that topic. And is that something that might be addressed at the I guess June investor meeting? Thank you.

Yes, this is Vince here. I mean we're always looking at ways to optimize our corporate structure, and you're right. I think the decision to move TGP from a K-1 to 1099 is a good move to especially attract larger institutional investors. We have been closely monitoring what's happening in the MLP space with a lot of simplification transactions that have occurred as well as just the change dynamics of the MLP market, so that is something we are closely monitoring. So I'm not sure if we have anything specific to report in June, but it's sort of an evolving thing that we're looking at. But even though we do have these four public companies, I think one important thing is that we still really managed the company as one. So, we are an operating company, and there's a lot of synergies that occur when you look at the Teekay Group in terms of way we manage it. We are looking at number of ways where we can be more efficient, and sort of simplify things even without any changes to the structure, but it is something that we're always looking at.

Okay, thank you very much.

[Operator Instructions] We will now take our next question from James Lardakis. Please go ahead, your line is now open.

Hello. I was wondering about Teekay Tankers. With all the incoming free cash flow and everything turning around, will that be used for buybacks and to payback what is owed for TIL's merger? Also what do you think about analyst estimates going up so high 1,400%? Should it be a bit conservative or I'm not sure?

Well, yes, there was – Teekay Tankers just finished their earnings call about an hour ago, but I'll just maybe echo some of the comments they made. We did see a significant improvement in the earnings in Teekay Tankers and we are very positive on the outlook for that, the tanker market heading into the second half of 2019 and 2020. Teekay Tankers balance sheet is – I would say their leverage is elevated at this point in time. But that does give a lot of financial leverage and operating leverage into a recovering tanker market. I think in the near term, it's prudent for Teekay Tankers to continue to strengthen the balance sheet, pay down some debt and accrue some equity value in the meantime. But in longer term, I think there is obviously some ability to return capital to shareholders in the form of dividends or share buybacks, depending on where Teekay Tankers shares are trading at, at the time.

Thank you.

Thank you. I really appreciate it.

Welcome.

It appears we have no further questions at this time. I'd now like to turn the call back over to Kenneth Hvid for any additional or closing remarks.

Well, thank you for listening in today. We had extensive Q&A sessions at our daughter calls earlier this morning. So I believe we've answered most of the questions here. Thank you.

This concludes today's conference call. You may now disconnect.