Welcome to the Teekay Corporation's First Quarter 2019 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. And now, for opening remarks and introductions, I'd like to now 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 first quarter 2019 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 first quarter 2019 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 first quarter 2019 earnings conference call. I will review our first quarter results and Teekay current highlights before I hand the call over to Kenneth. Starting with Slide 3 of the presentation, in the first quarter, Teekay Corporation generated total adjusted EBITDA of $237 million which is up over 40% from the same period of the prior year. We also reported a consolidated adjusted net loss of $13 million or $0.13 per share, an improvement from an adjusted net loss of $18 million or $0.19 per share in the same period of prior year. Our stronger first quarter consolidated results were driven by the startup of various gross projects across the Teekay Group, certainly LNG carriers commencing new charters at higher rates and higher spot tanker rates. However, our results were impacted by lower revenues from Teekay Parent’s directly owned FPSO units as a result of some unplanned maintenance, lower oil production and timing differences arising from the adoption of the new lease accounting standard on January 1st which in aggregate reduced revenues by approximately $8 million in the first quarter of 2019. We will cover this in more detail later in the presentation. Also in the quarter, Teekay Parent generated negative adjusted EBITDA of $2 million, which includes EBITDA from our directly owned assets and cash distributions from our publicly traded daughter entities. This was down compared to the first quarter of 2018, mainly as a result of lower revenues from our three FPSO as mentioned earlier, partially offset by a 36% increase in Teekay LNG's quarterly cash distribution during the quarter. For further details on our first quarter results as well as our second quarter outlook, please refer to the slides and the appendixes of…

Thank you, Vince, and first of all, I just must apologize for my Godfather voice here today. Now turning to Slide 7, we have a diversified business model. We're building growth with market leading positions in each of our core gas and tanker businesses as well as exposure of the offshore production through our free directly-owned FPSOs. This provides us with stable and growing LNG cash flows, which makes up 68% of our invested capital that is supported by an unrivaled portfolio with a diverse customer base totaling over $10 billion of forward revenues with an average remaining contract duration of 12 years with upside from our tanker cash flows where we're well positioned to benefit from a tanker market recovery. Turning to Slide 8, I’ll now provide an update on our free directly owned FPSOs. I'm pleased to report that earlier today we signed a one year contract extension on the pan-FPSO to August 2020, on substantially similar terms with upside offside from a formula based on both oil price and production. Unfortunately, our FPSO results during the first quarter were negatively impacted by lower revenues from the Banff and Foinaven FPSOs due to unplanned shutdowns and lower oil production, which reduced revenues by roughly $4 million and the adoption of the new lease accounting standard in this quarter that resulted in deferring the recognition of approximately $4 million of revenues to future quarters. Excluding the impact of these items, the FPSOs adjusted EBITDA would have been approximately $5 million during the first quarter. Unfortunately, we have continued to experience further downtime during the second quarter. And despite an increase in oil prices, we expect the adjusted EBITDA for our three FPSOs in Q2 to range between negative $7 million to $2 million and oil prices between $60 and…

Thank you. At this time we will open the floor for questions. [Operator Instructions] And our first question comes from Michael Webber with Wells Fargo.

First of congrats on the refi, I know that's something you guys have been working on for quite awhile. And I kind of want to touch on that and kind of what you can do on a go forward basis in a second, but they wanted to, first touch on the FPSOs. As you mentioned and did a subsequent release where you extended about for a year, I guess. One, can you talk to what the prospects look for the other to FPSOs? And two, you’d extend the contracts on those and ultimately look to sell them, does the contract extension on the Banff for a year get you there?

Yes, let's go through them one by one, Mike. So on Banff, I don't think a one-year contract extension gets us to a sale. It doesn't materially change our position from a year ago. What it does give us though is more time for the operator to continue their assessment of the field. We know that they're looking at the potential for the drilling there and there is still good gas flow. So we are in discussions in terms of if we were to extend the Banff and even longer period, what kind of upgrades will we need to make to the units to say keep it out there for another three to four years. So that's probably more what will be focused on as it relates to Banff. Hummingbird, there isn't really much to report from when we reported last quarter, we're still on this contract that runs out until September 2020. And I think we commented on last quarter, we wouldn't expect a real move in terms of further development plans on that field until the second half of this year. So that we will need to watch and of course following up on, and as it relates to Foinaven, as you know, this has is a legacy contract that hasn't created a lot of value for Teekay over the years. The Foinaven is obviously getting older. We have an extended maintenance period planned, scheduled for this summer. And we are again in dialogue with BP to see what we can do there. So, I can't really comment on exactly where we're going to end up on Foinaven, but hopefully we can report something next quarter.

Perfect, okay, that’s helpful. And then maybe just big picture, the Jan 2020 has been kind of hovering over the story for quite a while. So you know largely getting that bond is helpful. Can you maybe talk a bit about for the first time where do you see taking Teekay now that, that's largely behind you? There obviously you can only work with the tools you've got, but you get TGP sitting -- 2 daughter entities and the parent entity. Can you just talk a bit about how you see the structure look going forward? And to the point where you are deploying capital at the Teekay level at some point in the future where you think interesting place to look?

Yes, I think you're absolutely right. I mean, we have obviously had the 2020 bond facing us for the last couple of years and a lot of the decisions we made over the past couple of years have been guided by coming into a position where we have a more sustainable capital structure, post 2020. I think what you're hearing from, both Kevin and from Mark, is that we've done a lot of work. We’ve done a lot of work we’ve been very prudent in our conservatism also around our financial management of the balance sheet and the business there. For example, in TGP, we have delivered $2.5 billion of projects and not raised any equity. We know and understand that that has left the Company with an elevated leverage, but as they also pointed out on their call as we really start to de-lever rapidly here, we’re building a lot of accretive value and that is what we look at as kind of the financial or strategically flexibility that we’ve been working on for the past number of years. We’re now quite there in 2019, but we definitely are building that flexibility as we enter into 2020, and I think that we can really start looking and having more of these capital allocation discussions, which is all about creating value as opposed to managing the business for liquidity. We’ve started building to doing over the past couple of years.

And that does conclude today’s Q&A session. I will now turn the call back over to Mr. Kenneth Hvid.

Well, thanks for this meeting today. We look forward to reporting back to you in August.

Thank you, ladies and gentlemen. That concludes today’s teleconference. You may now disconnect.