Author Topic: TOO - Teekay Offshore Partners L.P.  (Read 28637 times)

Spekulatius

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #90 on: December 29, 2018, 06:10:51 AM »
Tax loss selling may be happening too. Seems over sold. BBU has roughly followed its price movement too despite it being one of many holdings

I get the tax loss selling in December, but who would have waited until Dec 20 or later to do it ...

Just my guess, but the stock market slump late this December messed up tax planning for many investors.
To be a realist, one has to believe in miracles.


Steven B

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #91 on: December 30, 2018, 08:14:10 PM »
Also generally follows the whole Teekay construct's trading pattern as of late...

heth247

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #92 on: December 31, 2018, 08:47:25 AM »
Also generally follows the whole Teekay construct's trading pattern as of late...

The Teekay parent has a $600MM bond due in a year. Although they have $200MM cash on hand, they don't have good collateral's other than 3 very old FPSOs that are cash flow break even + the shares in TGP/TOO/TNK. Don't know if they will try to do funny things with TOO shares when rolling those bonds.

In the hind sight, BBU did a pretty good job by pushing TOO's debt maturity to 2023 earlier this year, before the market going down.

Steven B

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #93 on: December 31, 2018, 12:32:57 PM »
Also generally follows the whole Teekay construct's trading pattern as of late...

The Teekay parent has a $600MM bond due in a year. Although they have $200MM cash on hand, they don't have good collateral's other than 3 very old FPSOs that are cash flow break even + the shares in TGP/TOO/TNK. Don't know if they will try to do funny things with TOO shares when rolling those bonds.

In the hind sight, BBU did a pretty good job by pushing TOO's debt maturity to 2023 earlier this year, before the market going down.
Don't see what they can do now that Brookfield is the GP...

heth247

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #94 on: December 31, 2018, 03:15:35 PM »
The Teekay parent has a $600MM bond due in a year. Although they have $200MM cash on hand, they don't have good collateral's other than 3 very old FPSOs that are cash flow break even + the shares in TGP/TOO/TNK. Don't know if they will try to do funny things with TOO shares when rolling those bonds.

In the hind sight, BBU did a pretty good job by pushing TOO's debt maturity to 2023 earlier this year, before the market going down.
Don't see what they can do now that Brookfield is the GP...

Yeah, I don't worry that TK force to drop those old FPSOs down to TOO, but not sure about if they might fire sale their TOO shares when in distress...

Deepdive

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #95 on: December 31, 2018, 09:30:58 PM »
The Teekay parent has a $600MM bond due in a year. Although they have $200MM cash on hand, they don't have good collateral's other than 3 very old FPSOs that are cash flow break even + the shares in TGP/TOO/TNK. Don't know if they will try to do funny things with TOO shares when rolling those bonds.

In the hind sight, BBU did a pretty good job by pushing TOO's debt maturity to 2023 earlier this year, before the market going down.
Don't see what they can do now that Brookfield is the GP...

Yeah, I don't worry that TK force to drop those old FPSOs down to TOO, but not sure about if they might fire sale their TOO shares when in distress...

I doubt Brookfield is the kind of investor who let people drop down crap assets

heth247

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #96 on: January 08, 2019, 02:57:40 PM »
Common unit distribution cut to zero. Although it makes sense from capital allocation point of view, I wonder if it means they are having difficulty to extend the FPSO contract? 

chrispy

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #97 on: January 08, 2019, 04:01:12 PM »
The story of the TOO in 2019 and forward was deleveraging and putting capital into the shuttle tanker business.  Cutting the dividend may very well be the correct move here.

heth247

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #98 on: January 08, 2019, 04:05:49 PM »
The story of the TOO in 2019 and forward was deleveraging and putting capital into the shuttle tanker business.  Cutting the dividend may very well be the correct move here.

I agree. Actually they should have just eliminated the distribution in 2017 when BBU bought in. I just wonder what makes them to decide to cut now, is it because there are new investing opportunities or because of some sort of distress?

chrispy

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Re: TOO - Teekay Offshore Partners L.P.
« Reply #99 on: January 08, 2019, 05:07:11 PM »
That is a good question and I have no answer.

The market didn't give a hoot about the stock with the dividend. I am guessing whatever they do with the money will be more beneficial.