Author Topic: TOO - Teekay Offshore Partners L.P.  (Read 28887 times)

antoninscalia

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TOO - Teekay Offshore Partners L.P.
« on: August 31, 2018, 09:47:12 AM »
Anyone been following this company? Could be interesting with Brookfield's involvement.


chrispy

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #1 on: August 31, 2018, 10:12:18 AM »
I can't determine whether it's better to own it thru BBU or to buy some TOO now that it is at a low. I own a good chunk of BBU.

Brookfield has received higher yielding debt from Teekay Offshore as well.


JRM

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #3 on: August 31, 2018, 10:37:27 AM »
I own through TK.  There is also nice exposure to TK LNG partners with no K-1 to mess with. 

Deepdive

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #4 on: August 31, 2018, 12:31:22 PM »
I believe TOO is treated as a C Corp for tax purposes.  Check the IR website.

JRM

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #5 on: September 01, 2018, 06:34:52 AM »
I believe TOO is treated as a C Corp for tax purposes.  Check the IR website.

I think TK LNG Partners has a K-1.

bjakes00

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #6 on: September 06, 2018, 08:28:14 AM »
The key questions here, which I don't have the answer to, are likely:

1) Who are the contracts with?
2) Where are the oil fields that they are serving on the cost curve?

Basically if oil comes down to $40/bbl, how much strain will the majors they are working for take?


chrispy

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #7 on: September 06, 2018, 09:24:31 AM »
I believe those questions are covered in the PDF s that redhots posted. It is not economically viable to shut down FPSO/FSOs in a down oil market

peterHK

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #8 on: September 06, 2018, 10:42:29 AM »
We saw in the last oil price collapse that revenue stayed fairly intact so I believe the theory that it's a stable business; this is almost a BIP sort of play.

Big question I had was about this promise of $200mn of EBITDA improvement that was supposed to come this year. I didn't see it last quarter, and their outlook for Q3 was just as bad as Q2.

Haven't done in depth analysis on this, but BAM are no fools, so I suspect it's worth the time.

walkie518

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #9 on: September 06, 2018, 11:50:41 AM »
Here are a couple of write-ups...

https://seekingalpha.com/article/4165045-bonhoeffer-fund-partner-letter-q1-2018

https://jdpcap.com/wp-content/uploads/2018/04/Teekay-FINAL-PRESENTATION-2.pdf
The assumption in the JDP paper is that Teekay is worth 10x EBITDA. 

This feels a bit like what Fairfax is doing with Seaspan...