Teekay Corporation Reports Third Quarter Results

HAMILTON, BERMUDA -- (Marketwire) -- 11/08/12 -- Teekay Corporation (NYSE:TK) -

Highlights


--  Third quarter 2012 total cash flow from vessel operations of $191.6
    million, up 11 percent from the same period of the prior year. 
    
--  Third quarter 2012 adjusted net loss attributable to stockholders of
    Teekay of $20.0 million, or $0.29 per share (excluding specific items
    which increased GAAP net loss by $0.3 million, or $0.00 per share). 
    
--  Agreed to sell the Voyageur Spirit FPSO to Teekay Offshore for $540
    million; transaction expected to be completed in December 2012. 
    
--  Cidade de Itajai FPSO sea trials underway; expected to leave shipyard
    for Brazil in mid-November 2012. 
    
--  Total consolidated liquidity of approximately $2.0 billion as at
    September 30, 2012, pro forma for Teekay Corporation's October 2012 US
    $123 million Norwegian bond offering. 

Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported an adjusted net loss attributable to stockholders of Teekay(1) of $20.0 million, or $0.29 per share, for the quarter ended September 30, 2012, compared to an adjusted net loss attributable to stockholders of Teekay of $40.6 million, or $0.58 per share, for the same period of the prior year. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of increasing GAAP net loss by $0.3 million, or $0.00 per share, for the three months ended September 30, 2012 and increasing GAAP net loss by $250.6 million, or $3.62 per share, for the three months ended September 30, 2011, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net loss attributable to stockholders of Teekay of $20.3 million, or $0.29 per share, for the quarter ended September 30, 2012, compared to net loss attributable to stockholders of Teekay of $291.2 million, or $4.20 per share, for the same period of the prior year. Net revenues(2) for the third quarter of 2012 were $433.9 million, compared to $428.5 million for the same period of the prior year.

For the nine months ended September 30, 2012, the Company reported an adjusted net loss attributable to stockholders of Teekay(1) of $57.8 million, or $0.84 per share, compared to an adjusted net loss attributable to stockholders of Teekay of $104.7 million, or $1.48 per share, for the nine months ended September 30, 2011. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of increasing GAAP net loss by $8.7 million, or $0.12 per share, for the nine months ended September 30, 2012 and increasing GAAP net loss by $312.6 million, or $4.42 per share, for the nine months ended September 30, 2011, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, a net loss attributable to stockholders of Teekay of $66.5 million, or $0.96 per share, for the nine months ended September 30, 2012, compared to a net loss attributable to stockholders of Teekay of $417.3 million, or $5.90 per share, for the nine months ended September 30, 2011. Net revenues(2) for the nine months ended September 30, 2012 were $1,333.5 million, compared to $1,304.4 million for the same period of the prior year.

On October 5, 2012, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended September 30, 2012. The cash dividend was paid on October 26, 2012, to all shareholders of record on October 17, 2012.


1.  Adjusted net (loss) income attributable to stockholders of Teekay is a
    non-GAAP financial measure. Please refer to Appendix A to this release
    for a reconciliation of this non-GAAP measure as used in this release to
    the most directly comparable financial measure under United States
    generally accepted accounting principles (GAAP) and for information
    about specific items affecting net income that are typically excluded by
    securities analysts in their published estimates of the Company's
    financial results.  
2.  Net revenues represents revenues less voyage expenses, which comprise
    all expenses relating to certain voyages, including bunker fuel
    expenses, port fees, cargo loading and unloading expenses, canal tolls,
    agency fees and commissions. Net revenues is a non-GAAP financial
    measure used by certain investors to measure the financial performance
    of shipping companies. Please see the Company's website at
    www.teekay.com for a reconciliation of this non-GAAP measure as used in
    this release to the most directly comparable financial measure under
    GAAP. 

"During the third quarter, we continued to make progress on executing on our multiple projects, most notably the completion of upgrades to the Voyageur Spirit FPSO," commented Peter Evensen, Teekay Corporation's Chief Executive Officer. "The Voyageur Spirit arrived at the Huntington Field in early October, and the sale of this FPSO unit to Teekay Offshore is expected to be completed shortly after production start-up which is expected to occur in mid-December 2012. Factoring the approximately $130 million of capital upgrade payments funded by Teekay, the assumption of Sevan's $230 million debt facility secured by the Voyageur Spirit and payments to Sevan bondholders, Teekay Offshore's $540 million purchase price will be approximately $90 million above Teekay Parent's acquisition cost."

Mr. Evensen continued, "The Cidade de Itajai FPSO conversion project experienced a two-month delay to its delivery from the shipyard which has no material financial impact to Teekay. The FPSO unit is expected to leave the shipyard in mid-November destined for offshore Brazil where it will begin preparations for its nine-year contract with Petrobras during the first quarter of 2013. In October, the Petrojarl Knarr FPSO hull was completed and launched and installation of the topside processing equipment and turret is underway. The Petrojarl Knarr FPSO is expected to achieve first oil on its North Sea field in the first half of 2014. Construction on Teekay Offshore's newbuilding shuttle tankers is also proceeding on schedule with steel cutting initiated on three of the four vessels, which are expected to deliver in mid- to late-2013. Finally, repairs on the Petrojarl Banff FPSO are underway, with all long lead-time items ordered and the unit on track for re-installation on the field in the fourth quarter of 2013."

"Operationally, we have made progress on our cost-savings initiatives including, the contractual redelivery of in-chartered conventional tankers and the establishment of our new ship management subsidiary, Teekay Marine Ltd.," Mr. Evensen continued. "All employees and systems have now been transferred into our subsidiary, Teekay Marine Ltd. and the transfer of technical management for Teekay's conventional tanker fleet to Teekay Marine was completed in September. Also in September, we commenced a reorganization of our onshore shuttle tanker operations, which is expected to provide additional cost savings upon completion in mid-2013."

Operating Results

The following tables highlight certain financial information for each of Teekay's four publicly-listed entities: Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE:TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP), Teekay Tankers Ltd. (Teekay Tankers) (NYSE:TNK) and Teekay Parent (which excludes the results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers). A brief description of each entity and an analysis of its respective financial results follow the tables below. Please also refer to the "Fleet List" section below and Appendix B to this release for further details.


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                            Three Months Ended September 30, 2012           
                                         (unaudited)                        
                ------------------------------------------------------------
                   Teekay   Teekay                                          
                 Offshore      LNG   Teekay          Consolida-       Teekay
(in thousands of Partners Partners  Tankers  Teekay        tion  Corporation
 U.S. dollars)         LP       LP     Ltd.  Parent Adjustments Consolidated
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Net revenues      203,731   97,863   43,912 126,354     (37,997)     433,863
                                                                            
Vessel operating                                                            
 expense           70,767   21,992   23,529  66,293           -      182,581
Time-charter                                                                
 hire expense      14,910        -      804  49,014     (37,342)      27,386
Depreciation and                                                            
 amortization      47,768   24,570   17,896  22,522           -      112,756
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CFVO -                                                                      
 Consolidated(1)                                                            
 (2)(3)            95,528   71,178   16,252 (29,170)          -      153,788
CFVO - Equity                                                               
 Investments(4)         -   40,550        -  (2,750)          -       37,800
CFVO - Total       95,528  111,728   16,252 (31,920)          -      191,588
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----------------------------------------------------------------------------
                            Three Months Ended September 30, 2011           
                                         (unaudited)                        
                ------------------------------------------------------------
                   Teekay   Teekay                                          
                 Offshore      LNG   Teekay          Consolida-       Teekay
(in thousands of Partners Partners  Tankers  Teekay        tion  Corporation
 U.S. dollars)         LP       LP     Ltd.  Parent Adjustments Consolidated
----------------------------------------------------------------------------
Net revenues      208,804   96,949   28,966 152,625     (58,833)     428,511
                                                                            
Vessel operating                                                            
 expense           71,641   22,366   10,908  67,457           -      172,372
Time-charter                                                                
 hire expense      18,620        -    1,610  86,036     (58,833)      47,433
Depreciation and                                                            
 amortization      46,905   23,032   10,797  27,012           -      107,746
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CFVO -                                                                      
 Consolidated(1)                                                            
 (2)(3)           105,227   70,402   14,521 (32,736)          -      157,414
CFVO - Equity                                                               
 Investments(4)         -   15,202        -     348           -       15,550
CFVO - Total      105,227   85,604   14,521 (32,388)          -      172,964
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1.  Cash flow from vessel operations (CFVO) represents income from vessel
    operations before depreciation and amortization expense, amortization of
    in-process revenue contracts, vessel write-downs, gains and losses on
    the sale of vessels, adjustments for direct financing leases to a cash
    basis, and unrealized gains and losses relating to derivatives, but
    includes realized gains and losses on the settlement of foreign currency
    forward contracts. CFVO - Consolidated represents CFVO from vessels that
    are consolidated on the Company's financial statements. Cash flow from
    vessel operations is a non-GAAP financial measure used by certain
    investors to measure the financial performance of shipping companies.
    Please refer to Appendix B and Appendix C of this release and see the
    Company's website at www.teekay.com for a reconciliation of this non-
    GAAP measure as used in this release to the most directly comparable
    GAAP financial measure. 
2.  Excludes CFVO relating to assets acquired from Teekay Parent for the
    periods prior to their acquisition by Teekay Offshore, Teekay LNG and
    Teekay Tankers, respectively, as those results are included in the
    historical results for Teekay Parent. 
3.  In addition to CFVO from directly owned vessels, Teekay Parent also
    receives cash dividends and distributions from its daughter public
    companies. For the three months ended September 30, 2012 and 2011,
    Teekay Parent received daughter company dividends and distributions
    totaling $38.0 million and $34.9 million, respectively. The dividends
    and distributions received by Teekay Parent include, among others, those
    made with respect to its general partner interests in Teekay Offshore
    and Teekay LNG. Please refer to Appendix D to this release for further
    details. 
4.  CFVO - Equity Investments represents the Company's proportionate share
    of CFVO from its equity-accounted vessels and other investments. Please
    refer to Appendix B of this release and see the Company's website at
    www.teekay.com for a reconciliation of this non-GAAP measure as used in
    this release to the most directly comparable GAAP financial measure. 

Teekay Offshore Partners L.P.

Teekay Offshore is an international provider of marine transportation, oil production and storage services to the offshore oil industry through its fleet of 39 shuttle tankers (including four chartered-in vessels and four newbuildings under construction), three floating, production, storage and offloading (FPSO) units, five floating storage and offtake (FSO) units and nine conventional oil tankers, in which its interests range from 50 to 100 percent. Teekay Offshore also has the right to participate in certain other FPSO and vessel opportunities. Teekay Parent currently owns a 29.4 percent interest in Teekay Offshore (including the 2 percent sole general partner interest).

For the third quarter of 2012, Teekay Offshore's quarterly distribution was $0.5125 per common unit. The cash distribution to be received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay Offshore totals $14.6 million for the third quarter of 2012, as detailed in Appendix D to this release.

Cash flow from vessel operations from Teekay Offshore decreased to $95.5 million in the third quarter of 2012, from $105.2 million in the same period of the prior year. This decrease was primarily due to the sale of two conventional tankers and the lay-up of two conventional tankers during the past four quarters following expiry of their time-charter contracts, and the dry-docking of the Navion Saga FSO during a portion of the third quarter of 2012. This was partially offset by a full quarter contribution from the Scott Spirit shuttle tanker newbuilding that delivered in the fourth quarter of 2011, the acquisition of the Piranema Spirit FPSO unit on November 30, 2011, decreases in time-charter hire expense due to the redelivery of one in-chartered vessel in the fourth quarter of 2011, and lower vessel operating costs due to lower repairs, maintenance and crewing costs and the lay-up of the Navion Torinita shuttle tanker commencing in the second quarter of 2012 upon expiration of its charter.

In September 2012, Teekay Offshore completed a public equity offering of 7.8 million common units (including 0.4 million units issued upon exercise of the underwriters' overallotment option), raising net proceeds of $211.5 million (including the general partners' contribution). Net proceeds will be used to partially finance the $540 million acquisition by Teekay Offshore from Teekay of the Voyageur Spirit FPSO, which is expected to occur in mid-December following start-up on the Huntington Field in the North Sea. The 2009-built Voyageur Spirit will operate under a five-year time-charter contract with E.ON which includes certain extension options.

In July 2012, Teekay Offshore sold 1.7 million common units in a private placement for net proceeds of $45.9 million (including the general partners' contribution), which will be used to partially finance the shipyard installments relating to four newbuilding shuttle tankers being constructed by Samsung Heavy Industries, for a total delivered cost of approximately $470 million. Upon their scheduled deliveries in mid- to late-2013, the vessels will commence operations under 10-year time-charter contracts, which include certain contract extension and vessel purchase options, with a subsidiary of BG Group plc to provide shuttle tanker services in Brazil.

In July 2012, Teekay Offshore sold a 1992-built shuttle tanker, the Navion Fennia, to a third party buyer for net proceeds of $7.0 million.

Teekay LNG Partners L.P.

Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil marine transportation services under long-term, fixed-rate charter contracts with major energy and utility companies through its current fleet of 27 LNG carriers, five LPG carriers and 11 conventional tankers, in which Teekay LNG's interests range from 33 to 100 percent. Teekay Parent currently owns a 37.5 percent interest in Teekay LNG (including the 2 percent sole general partner interest).

For the third quarter of 2012, Teekay LNG's quarterly distribution was $0.675 per common unit. The cash distribution to be received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay LNG totals $23.0 million for the third quarter of 2012, as detailed in Appendix D to this release.

Including cash flows from equity-accounted vessels, Teekay LNG's total cash flow from vessel operations increased to $111.7 million in the third quarter of 2012, from $85.6 million in the same period of the prior year. This increase was primarily due to the acquisition of a 52 percent interest in six LNG carriers from A.P. Moller-Maersk in February 2012 (the MALT LNG Carriers), the acquisition of a 33 percent interest in the four Angola LNG carriers from Teekay between August 2011 and January 2012, and the acquisition of newbuilding Multigas/LPG carriers in September and October of 2011.

In September 2012, Teekay LNG completed a public equity offering of 4.8 million common units (including 0.2 million units issued upon exercise of the underwriters' overallotment option), raising net proceeds of $182.2 million (including the general partners' contribution). Net proceeds have been used for general corporate purposes and to reduce amounts outstanding under Teekay LNG's revolving credit facilities, which may be withdrawn to finance future newbuilding deliveries or vessel acquisitions.

Teekay Tankers Ltd.

Teekay Tankers currently owns a fleet of 29 vessels, including 12 Aframax tankers, 10 Suezmax tankers, three Long Range 2 (LR2) product tankers, three MR product tankers, and a 50 percent interest in a Very Large Crude Carrier (VLCC) newbuilding scheduled to deliver in April 2013. In addition, Teekay Tankers currently time-charters in one Aframax tanker and has invested $115 million in first-priority mortgage loans secured by two 2010-built VLCCs, which loans yield an annualized fixed-rate return of 10 percent. Of the 29 vessels currently in operation, 15 are employed on fixed-rate time-charters, generally ranging from one to three years in initial duration, with the remaining vessels trading in Teekay's spot tanker pools. Based on its current ownership of Class A common stock and its ownership of 100 percent of the outstanding Teekay Tankers Class B stock, Teekay Parent currently owns a 25.1 percent economic interest in and has voting control of Teekay Tankers.

On November 7, 2012, Teekay Tankers declared a third quarter 2012 dividend of $0.02 per share which will be paid November 26, 2012 to all shareholders of record on November 19, 2012. Based on its ownership of Teekay Tankers Class A and Class B shares, the dividend to be paid to Teekay Parent will total $0.4 million for the third quarter of 2012.

In the third quarter of 2012, cash flow from vessel operations from Teekay Tankers increased to $16.3 million from $14.5 million in the same period of the prior year, primarily due to the contribution from 13 vessels acquired from Teekay Corporation in June 2012, partially offset by the expiration of certain time-charter contracts, and subsequent renegotiation at lower tanker rates, over the course of the past year.

Teekay Parent

In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers, Teekay Parent directly owns several vessels, which, as at November 1, 2012, included four conventional Suezmax tankers and four FPSO units. In addition, Teekay Parent currently has one newbuilding FPSO unit under construction, owns a 50 percent interest in an FPSO unit currently under conversion, and has agreed to acquire one FPSO unit later in 2012 and resell this unit to Teekay Offshore following commencement of its time-charter contract. As at November 1, 2012, Teekay Parent also had 14 chartered-in conventional tankers (including seven vessels owned by its subsidiaries), two chartered-in LNG carriers owned by Teekay LNG, and two chartered-in shuttle tankers and two chartered-in FSOs owned by Teekay Offshore.

For the third quarter of 2012, Teekay Parent generated negative cash flow from vessel operations of $31.9 million, compared to negative cash flow from vessel operations of $32.4 million in the same period of the prior year. The relative increase in cash flow is due to lower time-charter hire expense as a result of the redelivery of time-chartered in vessels during the past year and the acquisition of the Hummingbird Spirit FPSO in November 2011, partially offset by the sale of the 13 conventional tankers to Teekay Tankers in June 2012, the Petrojarl Banff FPSO being off-hire since its December 2011 storm-related incident and a planned maintenance shut-down on the Foinaven FPSO during the third quarter of 2012.

In the third quarter of 2012, Teekay Parent sold its 40 percent interest in the Ikdam FPSO to a third party resulting in a gain of $10.8 million.

In early October 2012, Teekay Parent issued in the Norwegian bond market NOK 700 million in senior unsecured bonds that mature in October 2015. The aggregate principal amount of the bonds is equivalent to approximately USD 123 million and all interest and principal payments were swapped into USD at a fixed rate of 5.5 percent. The proceeds from the bond issuance have been used to reduce amounts outstanding under Teekay Parent's revolving credit facilities and for general corporate purposes. Teekay Parent is applying to list the bonds on the Oslo Stock Exchange.

In late October 2012, Teekay Parent received notification from Statoil ASA that commercial services of the Petrojarl I FPSO will no longer be required on the Glitne field in the North Sea beyond April 2013. The Petrojarl I has been servicing Statoil at the Glitne field since August 2001. Teekay Parent is currently reviewing redeployment opportunities for the Petrojarl I upon completion of the charter with Statoil.

Fleet List

The following table summarizes Teekay's consolidated fleet of 147 vessels as at November 1, 2012, including chartered-in vessels and vessels under construction/conversion but excluding vessels managed for third parties:


----------------------------------------------------------------------------
                                         Number of Vessels(1)               
                          --------------------------------------------------
                               Owned   Chartered-in Newbuildings /          
                             Vessels        Vessels    Conversions     Total
----------------------------------------------------------------------------
Teekay Parent Fleet(2)(3)                                                   
  Aframax Tankers(4)               -              6              -         6
  Suezmax Tankers(4)               4              -              -         4
  MR Product Tankers               -              1              -         1
  FPSO Units(5)                    4              -              3         7
----------------------------------------------------------------------------
  Total Teekay Parent                                                       
   Fleet                           8              7              3        18
----------------------------------------------------------------------------
                                                                            
Teekay Offshore Fleet             48              4              4        56
Teekay LNG Fleet                  43              -                       43
Teekay Tankers Fleet              28              1              1        30
                                                                            
----------------------------------------------------------------------------
Total Teekay Consolidated                                                   
 Fleet                           127             12              8       147
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1.  Ownership interests in these vessels range from 33 percent to 100
    percent. Excludes vessels managed on behalf of third parties. 
2.  Excludes two LNG carriers chartered-in from Teekay LNG. 
3.  Excludes two shuttle tankers and two FSOs chartered-in from Teekay
    Offshore. 
4.  Excludes five Aframax tankers chartered-in from Teekay Offshore and two
    Suezmax tankers chartered-in from Teekay Tankers. 
5.  Includes one FPSO unit, the Voyageur Spirit, that for accounting
    purposes is a variable interest entity (VIE) whereby Teekay is the
    primary beneficiary. As a result, the Company has consolidated the VIE
    even though the Company does not expect to acquire the FPSO unit until
    December 2012. 

Liquidity and Capital Expenditures

As at September 30, 2012, Teekay had consolidated liquidity of $1.9 billion (consisting of $586.9 million cash and cash equivalents and $1,322.0 million of undrawn revolving credit facilities), of which $397.9 million of liquidity (consisting of $262.9 million cash and cash equivalents and $135.0 million of undrawn revolving credit facilities) is attributable to Teekay Parent. Giving pro forma effect for the NOK 700 million (approximately USD 123 million equivalent) of proceeds from Teekay Parent's senior unsecured Norwegian bond issuance completed in early October 2012, Teekay had total consolidated liquidity of approximately $2.0 billion as at September 30, 2012, of which $520.9 million was attributable to Teekay Parent.

The following table provides the Company's remaining capital commitments relating to its portion of acquisitions, newbuildings and conversions and related total financing completed as at September 30, 2012:


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                                                                      Amount
                                                                    Financed
(in millions)                         2012    2013    2014   Total   to Date
----------------------------------------------------------------------------
Teekay Offshore(1)                     $45    $323       -    $368         -
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Teekay LNG                               -       -       -       -         -
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Teekay Tankers(2)                      $10     $27       -     $37       $34
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Teekay Parent(3)                      $284     $56    $343    $683   $237(4)
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Total Teekay Corporation                                                    
 Consolidated                         $339    $406    $343  $1,088   $271(4)
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1.  Includes capital expenditures related to four newbuilding shuttle
    tankers. 
2.  Includes remaining capital expenditures related to Teekay Tankers' 50
    percent interest in the Wah Kwong VLCC Newbuilding. 
3.  Includes remaining capital expenditures related to the Knarr FPSO
    newbuilding, the upgrade and acquisition by Teekay from Sevan of the
    Voyageur Spirit FPSO unit (net of the existing $230 million debt
    facility which Teekay Parent will assume as part of the acquisition and
    is currently accounted for on Teekay Parent's Balance Sheet as the
    Voyageur Spirit is deemed a variable interest entity) and Teekay
    Parent's 50 percent interest in the Cidade de Itajai FPSO unit. 
4.  Includes a firm commitment to upsize the Voyageur Spirit FPSO debt
    facility by $100 million syndicated by a bank group in November 2012. 

As indicated above, the Company had total capital expenditure commitments pertaining to its portion of acquisitions, newbuildings and conversions of approximately $1.1 billion remaining as at September 30, 2012. The Company's current pre-arranged financing of approximately $271 million mostly relates to its remaining 2012 capital expenditure commitments. The Company is in the process of obtaining additional debt financing to fund its remaining capital expenditure commitments relating to the four shuttle tanker newbuildings, which are scheduled to deliver in mid- to late-2013 and the Knarr FPSO newbuilding, which is scheduled to deliver in the first half of 2014.

Conference Call

The Company plans to host a conference call on November 8, 2012 at 11:00 a.m. (ET) to discuss its results for the third quarter of 2012. An accompanying investor presentation will be available on Teekay's website at www.teekay.com prior to the start of the call. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:


--  By dialing (800) 820-0231 or (416) 640-5926, if outside North America,
    and quoting conference ID code 7306074. 
    
--  By accessing the webcast, which will be available on Teekay's website at
    www.teekay.com (the archive will remain on the website for a period of
    30 days). 

The conference call will be recorded and available until Thursday, November 15, 2012. This recording can be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North America, and entering access code 7306074.

About Teekay

Teekay Corporation is an operational leader and project developer in the marine midstream space. Through its general partnership interests in two master limited partnerships, Teekay LNG Partners L.P. (NYSE:TGP) and Teekay Offshore Partners L.P. (NYSE:TOO), its controlling ownership of Teekay Tankers Ltd. (NYSE:TNK), and its fleet of directly-owned vessels, Teekay is responsible for managing and operating consolidated assets of over $11 billion, comprised of approximately 150 liquefied gas, offshore, and conventional tanker assets. With offices in 16 countries and approximately 6,400 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, and its reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.

Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".


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                            TEEKAY CORPORATION                             
                  SUMMARY CONSOLIDATED STATEMENTS OF LOSS                  
      (in thousands of U.S. dollars, except share and per share data)      
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                        Three Months Ended            Nine Months Ended    
               ------------------------------------------------------------
                 September               September   September   September 
                       30,    June 30,         30,         30,         30, 
               ------------------------------------------------------------
                      2012        2012        2011        2012        2011 
               ------------------------------------------------------------
               (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 
---------------------------------------------------------------------------
                                                                           
REVENUES(1)        463,537     481,911     468,106   1,441,012   1,441,052 
---------------------------------------------------------------------------
                                                                           
OPERATING                                                                  
 EXPENSES                                                                  
Voyage                                                                     
 expenses(1)        29,674      39,176      39,595     107,487     136,610 
Vessel                                                                     
 operating                                                                 
 expenses(1)(2)    182,581     172,356     172,372     522,138     508,666 
Time-charter                                                               
 hire expense       27,386      31,491      47,433     102,856     163,877 
Depreciation                                                               
 and                                                                       
 amortization      112,756     115,068     107,746     342,438     318,018 
General and                                                                
 administrative                                                            
 (1)(2)             49,630      50,777      48,801     153,780     170,292 
Loss on sale of                                                            
 vessels and                                                               
 equipment /                                                               
 asset                                                                     
 impairments         9,193       3,269      91,809      12,265     101,214 
Goodwill                                                                   
 impairment              -           -      36,652           -      36,652 
Restructuring                                                              
 charges             3,919       1,525          69       5,444       5,490 
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                   415,139     413,662     544,477   1,246,408   1,440,819 
---------------------------------------------------------------------------
Income (loss)                                                              
 from vessel                                                               
 operations         48,398      68,249     (76,371)    194,604         233 
---------------------------------------------------------------------------
OTHER ITEMS                                                                
Interest                                                                   
 expense(1)        (41,652)    (42,707)    (33,649)   (126,659)    (99,959)
Interest                                                                   
 income(1)             674       1,645       2,394       4,365       7,316 
Realized and                                                               
 unrealized                                                                
 loss on                                                                   
 derivative                                                                
 instruments(1)    (35,149)    (94,598)   (219,570)   (124,932)   (298,453)
Equity income                                                              
 (loss)(3)          30,179       5,291     (40,624)     53,114     (40,282)
Income tax                                                                 
 (expense)                                                                 
 recovery           (4,039)      1,849      (1,487)      1,378      (4,321)
Foreign                                                                    
 exchange                                                                  
 (loss) gain        (8,504)     17,835      26,230      (6,493)     (1,267)
Other (loss)                                                               
 income - net         (376)         89         766       2,056       1,820 
---------------------------------------------------------------------------
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Net loss           (10,469)    (42,347)   (342,311)     (2,567)   (434,913)
Less: Net                                                                  
 (income) loss                                                             
 attributable                                                              
 to non-                                                                   
 controlling                                                               
 interests          (9,792)     (4,927)     51,149     (63,902)     17,645 
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net loss                                                                   
 attributable                                                              
 to                                                                        
 stockholders                                                              
 of Teekay                                                                 
 Corporation       (20,261)    (47,274)   (291,162)    (66,469)   (417,268)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Loss per common                                                            
 share of                                                                  
 Teekay                                                                    
- Basic             ($0.29)     ($0.68)     ($4.20)     ($0.96)     ($5.90)
- Diluted           ($0.29)     ($0.68)     ($4.20)     ($0.96)     ($5.90)
                                                                           
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Weighted-                                                                  
 average number                                                            
 of common                                                                 
 shares                                                                    
 outstanding                                                               
- Basic         69,372,220  69,231,419  69,375,036  69,153,966  70,743,085 
- Diluted       69,372,220  69,231,419  69,375,036  69,153,966  70,743,085 
                                                                           
---------------------------------------------------------------------------
---------------------------------------------------------------------------

1.  Realized and unrealized gains and losses related to derivative
    instruments that are not designated as hedges for accounting purposes
    are included as a separate line item in the statements of loss. The
    realized gains (losses) relate to the amounts the Company actually
    received or paid to settle such derivative instruments and the
    unrealized gains (losses) relate to the change in fair value of such
    derivative instruments, as detailed in the table below: 

                                Three Months Ended       Nine Months Ended  
                          --------------------------------------------------
                          September           September September September 
                                30,  June 30,       30,       30,       30, 
                          --------------------------------------------------
                               2012      2012      2011      2012      2011 
                          --------------------------------------------------
Realized (losses) gains                                                     
 relating to:                                                               
  Interest rate swaps       (30,027)  (29,669)  (32,447)  (90,112)  (99,136)
  Interest rate swap                                                        
   resets and terminations        -         -   (34,426)        -  (127,098)
  Foreign currency forward                                                  
   contracts                                                                
    Vessel operating                                                        
     expenses                  (876)      243     4,065       604     8,618 
    General and                                                             
     administrative                                                         
     expenses                     -       (96)      147       (96)      477 
  Bunkers, freight forward                                                  
   agreements (FFAs) and                                                    
   other                          -         -        (6)   11,452        36 
                          --------------------------------------------------
                            (30,903)  (29,522)  (62,667)  (78,152) (217,103)
                          --------------------------------------------------
Unrealized (losses) gains                                                   
 relating to:                                                               
  Interest rate swaps        (8,036)  (58,425) (142,697)  (49,326)  (74,170)
  Foreign currency forward                                                  
   contracts                  3,790    (6,651)  (14,324)    5,931    (7,076)
  Bunkers, FFAs and other         -         -       118    (3,385)     (104)
                          --------------------------------------------------
                             (4,246)  (65,076) (156,903)  (46,780)  (81,350)
                          --------------------------------------------------
Total realized and                                                          
 unrealized (losses) gains                                                  
 on non-designated                                                          
 derivative instruments     (35,149)  (94,598) (219,570) (124,932) (298,453)
                          --------------------------------------------------
                          --------------------------------------------------

2.  The Company has entered into foreign currency forward contracts, which
    are economic hedges of vessel operating expenses and general and
    administrative expenses. Certain of these forward contracts have been
    designated as cash flow hedges pursuant to GAAP. Unrealized gains
    (losses) arising from hedge ineffectiveness from such forward contracts
    are reflected in vessel operating expenses and general and
    administrative expenses in the above Summary Consolidated Statements of
    Loss, as detailed in the table below: 

                                Three Months Ended       Nine Months Ended  
                          --------------------------------------------------
                          September           September September September 
                                 30   June 30        30        30        30 
                          --------------------------------------------------
                               2012      2012      2011      2012      2011 
                          --------------------------------------------------
Vessel operating expenses         -         -      (168)        -      (519)
General and administrative     (168)     (306)     (145)     (492)       71 

3.  Equity income excluding the Company's proportionate share of items
    identified in Appendix A of this release is detailed in the table below:

                                Three Months Ended       Nine Months Ended  
                          --------------------------------------------------
                          September           September September September 
                                30,   June 30,      30,       30,       30, 
                          --------------------------------------------------
                               2012       2012     2011      2012      2011 
                          --------------------------------------------------
                                                                            
Equity income (loss)         30,179      5,291  (40,624)   53,114   (40,282)
Gain on sale of equity                                                      
 investment                 (10,830)         -        -   (10,830)        - 
Proportionate share of                                                      
 unrealized losses (gains)                                                  
 on derivative instruments    1,896     10,428   26,223     5,404    34,435 
Impairment of equity                                                        
 investment                       -          -   19,411         -    19,411 
Other                           269        557        -       826         - 
                          --------------------------------------------------
Equity income adjusted for                                                  
 items in Appendix A         21,514     16,276    5,010    48,514    13,564 
                          --------------------------------------------------
                          --------------------------------------------------
                                                                            
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION                             
                     SUMMARY CONSOLIDATED BALANCE SHEETS                    
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               As at September                As at December
                                           30, As at June 30,            31,
                               ---------------------------------------------
                                          2012           2012           2011
                               ---------------------------------------------
                                   (unaudited)    (unaudited)    (unaudited)
                               ---------------------------------------------
ASSETS                                                                      
Cash and cash equivalents              586,901        665,737        692,127
Other current assets                   623,335        557,506        495,357
Restricted cash - current               35,051          4,659          4,370
Restricted cash - long-term            496,309        526,705        495,784
Vessels held for sale                    8,000         14,961         19,000
Vessels and equipment                7,152,048      7,197,259      7,360,454
Advances on newbuilding                                                     
 contracts/conversions                 590,114        444,173        507,908
Derivative assets                      177,485        167,701        165,269
Investment in equity accounted                                              
 investees                             453,143        436,486        252,637
Investment in direct financing                                              
 leases                                442,121        447,746        459,908
Investment in term loans               187,581        187,347        186,844
Other assets                           200,141        209,774        184,438
Intangible assets                      124,870        128,682        136,742
Goodwill                               166,539        166,539        166,539
----------------------------------------------------------------------------
Total Assets                        11,243,638     11,155,275     11,127,377
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND EQUITY                                                      
Accounts payable and accrued                                                
 liabilities                           509,798        382,128        487,651
Current portion of long-term                                                
 debt                                  826,630        798,828        448,579
Long-term debt                       4,806,595      5,227,640      5,422,344
Long-term debt - variable                                                   
 interest entity(1)                    230,394        230,450        220,497
Derivative liabilities                 732,536        728,944        686,879
In process revenue contracts           254,615        272,733        308,640
Other long-term liabilities            219,203        219,493        220,986
Redeemable non-controlling                                                  
 interest                               36,241         36,356         38,307
Equity:                                                                     
  Non-controlling interests          2,223,805      1,919,410      1,863,798
  Stockholders of Teekay             1,403,821      1,339,293      1,429,696
----------------------------------------------------------------------------
Total Liabilities and Equity        11,243,638     11,155,275     11,127,377
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  For accounting purposes, the Voyageur Spirit is a variable interest
    entity (VIE), whereby Teekay is the primary beneficiary. As a result,
    the Company has consolidated the VIE as of December 1, 2011, even though
    the Company does not expect to acquire the Voyageur Spirit FPSO unit
    until December 2012. 

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION                             
               SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS                
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                      Nine Months Ended     
                                                  --------------------------
                                                         September 30       
                                                  --------------------------
                                                          2012         2011 
                                                  --------------------------
                                                   (unaudited)  (unaudited) 
                                                  --------------------------
Cash and cash equivalents provided by (used for)                            
OPERATING ACTIVITIES                                                        
----------------------------------------------------------------------------
Net operating cash flow                                262,545       48,356 
----------------------------------------------------------------------------
                                                                            
FINANCING ACTIVITIES                                                        
Net proceeds from long-term debt                     1,026,902    1,225,710 
Scheduled repayments of long-term debt                (212,877)    (184,624)
Prepayments of long-term debt                       (1,055,135)    (430,860)
Increase in restricted cash                            (31,421)      (5,306)
Repurchase of common stock                                   -     (118,036)
Net proceeds from public offerings of Teekay LNG       178,431      107,234 
Net proceeds from public offerings of Teekay                                
 Offshore                                              252,051       19,877 
Net proceeds from public offerings of Teekay                                
 Tankers                                                65,854      158,326 
Equity contribution from joint venture partner          70,750            - 
Cash dividends paid                                    (61,308)     (70,124)
Distribution from subsidiaries to non-controlling                           
 interests                                            (182,647)    (152,985)
Other                                                    7,857        5,492 
----------------------------------------------------------------------------
Net financing cash flow                                 58,457      554,704 
----------------------------------------------------------------------------
                                                                            
INVESTING ACTIVITIES                                                        
Expenditures for vessels and equipment                (413,970)    (561,378)
Proceeds from sale of vessels and equipment            226,201       33,355 
Investment in term loans                                     -      (70,404)
Proceeds from sale of marketable securities              1,063            - 
Loan to joint ventures and equity accounted                                 
 investees                                             (94,097)      (4,092)
Investment in joint ventures                          (163,482)     (25,281)
Direct financing lease payments received and other      18,057       20,395 
----------------------------------------------------------------------------
Net investing cash flow                               (426,228)    (607,405)
----------------------------------------------------------------------------
                                                                            
Decrease in cash and cash equivalents                 (105,226)      (4,345)
Cash and cash equivalents, beginning of the period     692,127      779,748 
----------------------------------------------------------------------------
Cash and cash equivalents, end of the period           586,901      775,403 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

TEEKAY CORPORATION

APPENDIX A - SPECIFIC ITEMS AFFECTING NET LOSS

(in thousands of U.S. dollars, except per share data)

Set forth below is a reconciliation of the Company's unaudited adjusted net loss attributable to stockholders of Teekay, a non-GAAP financial measure, to net loss attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company's financial results. Adjusted net loss attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                     Three Months Ended  Nine Months Ended  
                                    ----------------------------------------
                                     September 30, 2012  September 30, 2012 
                                    ----------------------------------------
                                        (unaudited)         (unaudited)     
                                                  $ Per               $ Per 
                                            $  Share(1)         $  Share(1) 
----------------------------------------------------------------------------
Net loss - GAAP basis                 (10,469)             (2,567)          
Adjust for: Net income attributable                                         
 to                                                                         
non-controlling interests              (9,792)            (63,902)          
----------------------------------------------------------------------------
Net loss attributable to                                                    
 stockholders of Teekay               (20,261)    (0.29)  (66,469)    (0.96)
Add (subtract) specific items                                               
 affecting net loss:                                                        
Unrealized losses from derivative                                           
 instruments(2)                         6,310      0.10    52,677      0.76 
Foreign exchange loss(3)                7,825      0.11     4,089      0.06 
Loss on sale of assets/asset                                                
 impairments(4)                         9,193      0.13    12,265      0.18 
Restructuring charges(5)                3,919      0.06     5,444      0.08 
Gain on sale of equity investment(6)  (10,830)    (0.16)  (10,830)    (0.16)
Realized gain upon settlement of                                            
 embedded derivative                        -         -   (11,452)    (0.17)
Non-recurring adjustments to tax                                            
 accruals                                   -         -    (8,006)    (0.12)
Other(7)                                  269         -      (221)        - 
Non-controlling interests' share of                                         
 items above                          (16,394)    (0.24)  (35,300)    (0.51)
----------------------------------------------------------------------------
Total adjustments                         292         -     8,666      0.12 
----------------------------------------------------------------------------
Adjusted net loss attributable to                                           
 stockholders of Teekay               (19,969)    (0.29)  (57,803)    (0.84)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  Fully diluted per share amounts. 
2.  Reflects the unrealized gains or losses relating to the change in the
    mark-to-market value of derivative instruments that are not designated
    as hedges for accounting purposes, including those included in equity
    income (loss) from joint ventures, and the ineffective portion of
    foreign currency forward contracts designated as hedges for accounting
    purposes. 
3.  Foreign currency exchange gains and losses primarily relate to the
    Company's debt denominated in Euros and Norwegian Kroner in addition to
    the unrealized gains and losses on cross currency swaps used to hedge
    the principal and interest on the Norwegian Kroner bonds. Nearly all of
    the Company's foreign currency exchange gains and losses are unrealized.
4.  Relates to impairment of one of the Company's older shuttle tankers and
    disposal of another of the Company's older shuttle tankers. 
5.  Restructuring charges relate to the reorganization of the Company's
    marine operations. 
6.  Relates to the sale of the Company's 40 percent interest in FPSO unit. 
7.  Other includes transaction and acquisition related costs associated with
    the sale of 13 conventional tankers from Teekay Parent to Teekay Tankers
    in June 2012 and the acquisition by Teekay LNG from a third party of the
    MALT LNG carriers in February 2012. 

TEEKAY CORPORATION

APPENDIX A - SPECIFIC ITEMS AFFECTING NET LOSS

(in thousands of U.S. dollars, except per share data)

Set forth below is a reconciliation of the Company's unaudited adjusted net loss attributable to stockholders of Teekay, a non-GAAP financial measure, to net loss attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company's financial results. Adjusted net loss attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                     Three Months Ended  Nine Months Ended  
                                    ----------------------------------------
                                     September 30, 2011  September 30, 2011 
                                    ----------------------------------------
                                        (unaudited)         (unaudited)     
                                                  $ Per               $ Per 
                                            $  Share(1)         $  Share(1) 
----------------------------------------------------------------------------
Net loss - GAAP basis                (342,311)           (434,913)          
Adjust for: Net loss attributable to                                        
 non-controlling interests             51,149              17,645           
----------------------------------------------------------------------------
Net loss attributable to                                                    
 stockholders of Teekay              (291,162)    (4.20) (417,268)    (5.90)
Add (subtract) specific items                                               
 affecting net loss:                                                        
Unrealized losses from derivative                                           
 instruments(2)                       183,803      2.65   116,596      1.65 
Foreign exchange (gain) loss(3)       (27,006)    (0.39)    1,936      0.03 
Loss on sale of assets/asset                                                
 impairments(4)                       111,220      1.60   120,625      1.70 
Goodwill impairment(5)                 36,652      0.53    36,652      0.52 
Upfront payments related to interest                                        
 rate swap resets and interest rate                                         
 swap termination                      34,426      0.50   127,098      1.80 
Restructuring charges(6)                   69         -     5,490      0.08 
Deferred income tax expense on                                              
 unrealized foreign exchange gains          -         -    10,095      0.14 
Adjustments to pension accruals and                                         
 stock-based compensation(7)                -         -    18,102      0.25 
Other - net(8)                              -         -    (6,234)    (0.09)
Non-controlling interests' share of                                         
 items above                          (88,570)    (1.27) (117,785)    (1.66)
----------------------------------------------------------------------------
Total adjustments                     250,594      3.62   312,576      4.42 
----------------------------------------------------------------------------
Adjusted net loss attributable to                                           
 stockholders of Teekay               (40,568)    (0.58) (104,692)    (1.48)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  Fully diluted per share amounts. 
2.  Reflects the unrealized gains or losses relating to the change in the
    mark-to-market value of derivative instruments that are not designated
    as hedges for accounting purposes, including those included in equity
    income (loss) from joint ventures, and the ineffective portion of
    foreign currency forward contracts designated as hedges for accounting
    purposes. 
3.  Foreign currency exchange gains and losses primarily relate to the
    Company's debt denominated in Euros and deferred tax liability
    denominated in Norwegian Kroner. A substantial majority of the Company's
    foreign currency exchange gains and losses are unrealized. 
4.  Relates to the write-down in the carrying value of certain smaller
    product tankers, certain older vessels and an investment in a joint
    venture. 
5.  Relates to impairment of goodwill of the Company's conventional tanker
    segment. 
6.  Restructuring charges relate to crew changes, reflagging of certain
    vessels, and global staffing changes. 
7.  Relates to one-time pension retirement payment to the Company's former
    President and Chief Executive Officer and accelerated timing of
    accounting recognition of stock-based compensation expense. 
8.  Relates to non-recurring adjustments to tax accruals. 


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION                             
               APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION              
               SUMMARY BALANCE SHEET AS AT SEPTEMBER 30, 2012               
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 (unaudited)                                
                                                                            
                                                      Consolida-            
                Teekay    Teekay    Teekay    Teekay        tion            
              Offshore       LNG   Tankers    Parent Adjustments       Total
            ----------------------------------------------------------------
ASSETS                                                                      
Cash and                                                                    
 cash                                                                       
 equivalents   205,753    91,931    26,298   262,919           -     586,901
Other                                                                       
 current                                                                    
 assets        134,672    19,327    19,843   449,493           -     623,335
Restricted                                                                  
 cash                                                                       
 (current &                                                                 
 non-                                                                       
 current)            -   527,670         -     3,690           -     531,360
Vessels held                                                                
 for sale        8,000         -         -         -           -       8,000
Vessels and                                                                 
 equipment   2,400,466 1,960,756 1,266,594 1,524,232           -   7,152,048
Advances on                                                                 
 newbuilding                                                                
 contracts      81,868         -         -   508,246           -     590,114
Derivative                                                                  
 assets          8,957   167,638         -       890           -     177,485
Investment                                                                  
 in equity                                                                  
 accounted                                                                  
 investees           -   388,722     3,224    68,197      (7,000)    453,143
Investment                                                                  
 in direct                                                                  
 financing                                                                  
 leases         37,120   404,981         -        20           -     442,121
Investment                                                                  
 in term                                                                    
 loans               -         -   117,581    70,000           -     187,581
Other assets    29,412    37,668    13,487   119,574           -     200,141
Advances to                                                                 
 affiliates      6,722     3,338    22,619   (32,679)          -           -
Equity                                                                      
 investment                                                                 
 in                                                                         
 subsidiaries        -         -         -   581,123    (581,123)          -
Intangibles                                                                 
 and                                                                        
 goodwill      144,169   143,199         -     4,041           -     291,409
            ----------------------------------------------------------------
                                                                            
TOTAL ASSETS 3,057,139 3,745,230 1,469,646 3,559,746    (588,123) 11,243,638
            ----------------------------------------------------------------
            ----------------------------------------------------------------
                                                                            
LIABILITIES                                                                 
 AND EQUITY                                                                 
Accounts                                                                    
 payable and                                                                
 accrued                                                                    
 liabilities    86,625    46,019    19,023   358,131           -     509,798
Advances                                                                    
 from                                                                       
 affiliates     57,762    11,072    16,154   (84,988)          -           -
Current                                                                     
 portion of                                                                 
 long-term                                                                  
 debt          121,509   253,791    25,246   426,084           -     826,630
Long-term                                                                   
 debt        1,621,909 1,730,220   706,896   747,570           -   4,806,595
Long-term                                                                   
 debt -                                                                     
 variable                                                                   
 interest                                                                   
 entity              -         -         -   230,394           -     230,394
Derivative                                                                  
 liabilities   306,998   328,930    37,365    59,243           -     732,536
In-process                                                                  
 revenue                                                                    
 contracts     117,250         -         -   137,365           -     254,615
Other long-                                                                 
 term                                                                       
 liabilities    27,065   105,147     4,578    82,413           -     219,203
Redeemable                                                                  
 non-                                                                       
 controlling                                                                
 interest       36,241         -         -         -           -      36,241
Equity:                                                                     
  Non-                                                                      
   controlling                                                              
   interests                                                                
   (1)          42,711    32,434         -   199,713   1,948,947   2,223,805
  Equity                                                                    
   attributable to                                                          
   stockholders/                                                            
   unitholders of                                                      
   publicly-                                                                
   listed                                                                   
   entities    639,069 1,237,617   660,384 1,403,821  (2,537,070)  1,403,821
            ----------------------------------------------------------------
                                                                            
TOTAL                                                                       
 LIABILITIES                                                                
 AND EQUITY  3,057,139 3,745,230 1,469,646 3,559,746    (588,123) 11,243,638
            ----------------------------------------------------------------
            ----------------------------------------------------------------
                                                                            
NET DEBT(2)  1,537,665 1,364,410   705,844 1,137,439           -   4,745,358
            ----------------------------------------------------------------
            ----------------------------------------------------------------

1.  Non-controlling interests in the Teekay Offshore and Teekay LNG columns
    represent the joint venture partners' share of joint venture net assets.
    Non-controlling interest in the Consolidation Adjustments column
    represents the public's share of the net assets of Teekay's publicly-
    traded subsidiaries. 
2.  Net debt represents current and long-term debt less cash and, if
    applicable, current and long-term restricted cash. 

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION                             
              APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION               
SUMMARY STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 
                                    2012                                    
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                (unaudited)                                 
                                                                            
                                                        Consolida-          
                                                             tion           
                     Teekay   Teekay   Teekay   Teekay     Adjust-          
                   Offshore      LNG  Tankers   Parent      ments     Total 
                   ---------------------------------------------------------
                                                                            
Revenues            227,956   98,723   46,084  129,140    (38,366)  463,537 
                   ---------------------------------------------------------
                                                                            
Voyage expenses      24,225      860    2,172    2,786       (369)   29,674 
Vessel operating                                                            
 expenses            70,767   21,992   23,529   66,293          -   182,581 
Time-charter hire                                                           
 expense             14,910        -      804   49,014    (37,342)   27,386 
Depreciation and                                                            
 amortization        47,768   24,570   17,896   22,522          -   112,756 
General and                                                                 
 administrative      19,195    6,254    3,327   21,509       (655)   49,630 
Loss on sale of                                                             
 vessels and                                                                
 equipment/asset                                                            
 impairments          9,193        -        -        -          -     9,193 
Restructuring                                                               
 charges                417        -        -    3,502          -     3,919 
                   ---------------------------------------------------------
Total operating                                                             
 expenses           186,475   53,676   47,728  165,626    (38,366)  415,139 
                   ---------------------------------------------------------
                                                                            
Income (loss) from                                                          
 vessel operations   41,481   45,047   (1,644) (36,486)         -    48,398 
                   ---------------------------------------------------------
                                                                            
Net interest                                                                
 expense            (11,889) (13,564)  (2,939) (12,586)         -   (40,978)
Realized and                                                                
 unrealized loss on                                                         
 derivative                                                                 
 instruments        (13,458)  (9,945)  (4,252)  (7,494)         -   (35,149)
Income tax expense   (1,025)    (679)       -   (2,335)         -    (4,039)
Equity income             -   21,098        -    9,081          -    30,179 
Equity in earnings                                                          
 of subsidiaries(1)       -        -        -   22,580    (22,580)        - 
Foreign exchange                                                            
 loss                  (715)  (6,248)    (126)  (1,415)         -    (8,504)
Other - net             (55)     374     (700)       5          -      (376)
                   ---------------------------------------------------------
Net income (loss)    14,339   36,083   (9,661) (28,650)   (22,580)  (10,469)
Less: Net (income)                                                          
 loss attributable                                                          
 to non-controlling                                                         
 interests(2)          (572)  (3,022)       -    8,389    (14,587)   (9,792)
                   ---------------------------------------------------------
Net income (loss)                                                           
 attributable to                                                            
 stockholders/
 unitholders of                                                  
 publicly-listed                                                            
 entities            13,767   33,061   (9,661) (20,261)   (37,167)  (20,261)
                   ---------------------------------------------------------
                   ---------------------------------------------------------
CFVO -                                                                      
 Consolidated(3)(4)  95,528   71,178   16,252  (29,170)         -   153,788 
CFVO - Equity                                                               
 Investments(5)           -   40,550        -   (2,750)         -    37,800 
CFVO - Total         95,528  111,728   16,252  (31,920)         -   191,588 
                   ---------------------------------------------------------
                   ---------------------------------------------------------

1.  Teekay Corporation's proportionate share of the net earnings of its
    publicly-traded subsidiaries. 
2.  Net (income) loss attributable to non-controlling interests in the
    Teekay Offshore and Teekay LNG columns represent the joint venture
    partners' share of the net income (loss) of the respective joint
    ventures. Net (income) loss attributable to non-controlling interest in
    the Consolidation Adjustments column represents the public's share of
    the net income (loss) of Teekay's publicly-traded subsidiaries. 
3.  Cash flow from vessel operations (CFVO) represents income from vessel
    operations before depreciation and amortization expense, amortization of
    in-process revenue contracts, vessel write-downs, gains and losses on
    the sale of vessels, adjustments for direct financing leases to a cash
    basis, and unrealized gains and losses relating to derivatives, but
    includes realized gains and losses on the settlement of foreign currency
    forward contracts. CFVO - Consolidated represents CFVO from vessels that
    are consolidated on the Company's financial statements. Cash flow from
    vessel operations is a non-GAAP financial measure used by certain
    investors to measure the financial performance of shipping companies.
    Please see the Company's Web site at www.teekay.com for a reconciliation
    of this non-GAAP financial measure as used in this release to the most
    directly comparable GAAP financial measure. 
4.  In addition to Teekay Parent's CFVO, Teekay Parent also receives cash
    dividends and distributions from its publicly-traded subsidiaries. For
    the three months ended September 30, 2012, Teekay Parent received cash
    dividends and distributions from these subsidiaries totaling $38.0
    million. The dividends and distributions received by Teekay Parent
    include, among others, those made with respect to its general partner
    interests in Teekay Offshore and Teekay LNG. Please refer to Appendix D
    to this release for further details. 
5.  Cash flow from vessel operations (CFVO) - Equity Investments represents
    the Company's proportionate share of CFVO from its equity accounted
    vessels and other investments. Please see the Company's Web site at
    www.teekay.com for a reconciliation of this non-GAAP measure as used in
    this release to the most directly comparable GAAP financial measure. 

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                             TEEKAY CORPORATION                             
              APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION               
 SUMMARY STATEMENT OF INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 
                                    2012                                    
                       (in thousands of U.S. dollars)                       
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                                (unaudited)                                 
                                                                            
                                                       Consolida-          
                                                            tion           
                 Teekay   Teekay   Teekay       Teekay    Adjust-          
               Offshore      LNG  Tankers       Parent     ments      Total 
               -------------------------------------------------------------
                                                                            
Revenues        723,705  294,293  151,936      396,435  (125,357) 1,441,012 
               -------------------------------------------------------------
                                                                            
Voyage expenses  98,506    1,445    3,601        4,884      (949)   107,487 
Vessel                                                                      
 operating                                                                  
 expenses       211,854   62,627   65,600      182,057         -    522,138 
Time-charter                                                                
 hire expense    41,496        -    3,109      183,255  (125,004)   102,856 
Depreciation                                                                
 and                                                                        
 amortization   147,382   73,876   53,934       67,246         -    342,438 
General and                                                                 
 administrative  58,020   19,876   11,139       57,183     7,562    153,780 
Loss (gain) on                                                              
 sale of                                                                    
 vessels and                                                                
 equipment/asset                                                            
 impairments     12,462        -        -         (197)        -     12,265 
Restructuring                                                               
 charges            417        -        -        5,027         -      5,444 
               -------------------------------------------------------------
Total operating                                                             
 expenses       570,137  157,824  137,383      499,455  (118,391) 1,246,408 
               -------------------------------------------------------------
                                                                            
Income (loss)                                                               
 from vessel                                                                
 operations     153,568  136,469   14,553     (103,020)   (6,966)   194,604 
               -------------------------------------------------------------
                                                                            
Net interest                                                                
 expense        (36,821) (38,215) (17,133)     (30,125)        -   (122,294)
Realized and                                                                
 unrealized                                                                 
 loss on                                                                    
 derivative                                                                 
 instruments    (57,536) (43,993)  (9,226)     (14,177)        -   (124,932)
Income tax                                                                  
 (expense)                                                                  
 recovery          (564)    (549)       -        2,491         -      1,378 
Equity income         -   49,232        -        3,882         -     53,114 
Equity in                                                                   
 earnings of                                                         
 subsidiaries(1)      -        -        -       61,372   (61,372)         - 
Foreign                                                                     
 exchange loss   (2,585)  (1,989)      (9)      (1,910)        -     (6,493)
Other - net       1,251    1,067   (1,797)       1,535         -      2,056 
               -------------------------------------------------------------
Net income                                                                  
 (loss)          57,313  102,022  (13,612)     (79,952)  (68,338)    (2,567)
Less: Net                                                                   
 (income) loss                                                              
 attributable                                                               
 to non-                                                                    
 controlling                                                                
 interests(2)    (3,040)  (6,542)       -       13,483   (67,803)   (63,902)
               -------------------------------------------------------------
Net income                                                                  
 (loss)                                                                     
 attributable                                                               
 to stockholders/                                                           
 unitholders of                                               
 publicly-                                                                  
 listed                                                                     
 entities        54,273   95,480  (13,612)     (66,469) (136,141)   (66,469)
               -------------------------------------------------------------
               -------------------------------------------------------------
CFVO -                                                                      
 Consolidated                                                             
 (3)(4)         307,424  214,844   48,480      (60,178)   (7,000)   503,570 
CFVO - Equity                                                               
 Investments(5)       -  104,771        -       (4,816)        -     99,955 
CFVO - Total    307,424  319,615   48,480   (64,994)(4)   (7,000)   603,525 
               -------------------------------------------------------------
               -------------------------------------------------------------

1.  Teekay Corporation's proportionate share of the net earnings of its
    publicly-traded subsidiaries. 
2.  Net (income) loss attributable to non-controlling interests in the
    Teekay Offshore and Teekay LNG columns represent the joint venture
    partners' share of the net income (loss) of the respective joint
    ventures. Net (income) loss attributable to non-controlling interest in
    the Consolidation Adjustments column represents the public's share of
    the net income (loss) of Teekay's publicly-traded subsidiaries. 
3.  Cash flow from vessel operations (CFVO) represents income from vessel
    operations before depreciation and amortization expense, amortization of
    in-process revenue contracts, vessel write-downs, gains or losses on the
    sale of vessels, adjustments for direct financing leases to a cash
    basis, and unrealized gains and losses relating to derivatives, but
    includes realized gains and losses on the settlement of foreign currency
    forward contracts. CFVO - Consolidated represents CFVO from vessels that
    are consolidated on the Company's financial statements. Cash flow from
    vessel operations is a non-GAAP financial measure used by certain
    investors to measure the financial performance of shipping companies.
    Please see the Company's website at www.teekay.com for a reconciliation
    of this non-GAAP financial measure as used in this release to the most
    directly comparable GAAP financial measure. 
4.  In addition to Teekay Parent's CFVO, Teekay Parent also receives cash
    dividends and distributions from its publicly-traded subsidiaries. For
    the nine months ended September 30, 2012, Teekay Parent received cash
    dividends and distributions from these subsidiaries totaling $116.5
    million. The dividends and distributions received by Teekay Parent
    include, among others, those made with respect to its general partner
    interests in Teekay Offshore and Teekay LNG. Please refer to Appendix D
    to this release for further details. 
5.  Cash flow from vessel operations (CFVO) - Equity investments represents
    the Company's proportionate share of CFVO from its equity accounted
    vessels and other investments. Please see the Company's Web site at
    www.teekay.com for a reconciliation of this non-GAAP measure as used in
    this release to the most directly comparable GAAP measure. 

TEEKAY CORPORATION

APPENDIX C - SUPPLEMENTAL FINANCIAL INFORMATION

TEEKAY PARENT SUMMARY OPERATING RESULTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012

(in thousands of U.S. dollars)

(unaudited)

Set forth below is a reconciliation of unaudited cash flow from vessel operations, a non-GAAP financial measure, to loss from vessel operations as determined in accordance with GAAP, for Teekay Parent's primary operating segments. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate Teekay Parent's financial performance. Disaggregated cash flow from vessel operations for Teekay Parent, as provided below, is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


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                                             In-                           
                                        Charter-                           
                                  Owned       ed                      
                               Convent- Conventi                     Teekay 
                                  ional     onal                     Parent 
                                Tankers  Tankers    FPSOs Other(1)    Total 
                               ---------------------------------------------
                                                                            
Revenues                          4,892   30,721   78,105   15,422  129,140 
Voyage expenses                     120    2,475        -      191    2,786 
Vessel operating expenses         2,200    5,937   57,508      648   66,293 
Time-charter hire expense             -   32,631    5,304   11,079   49,014 
Depreciation and amortization     2,570        -   19,132      820   22,522 
General and administrative        1,122    1,491    9,936    8,960   21,509 
Restructuring charges                 -        -        -    3,502    3,502 
                               ---------------------------------------------
Total operating expenses          6,012   42,534   91,880   25,200  165,626 
                               ---------------------------------------------
                                                                            
Loss from vessel operations      (1,120) (11,813) (13,775)  (9,778) (36,486)
                               ---------------------------------------------
                                                                            
Reconciliation of income (loss) from vessel operations to cash flow from    
 vessel operations                                                          
                                                                            
Loss from vessel operations      (1,120) (11,813) (13,775)  (9,778) (36,486)
Depreciation and amortization     2,570        -   19,132      820   22,522 
Amortization of in process                                                  
 revenue contracts and other          -        -  (14,208)       -  (14,208)
Unrealized losses from the                                                  
 change in fair value of                                                    
 designated foreign exchange                                                
 forward contracts                   26        -       82        -      108 
Realized losses from the                                                    
 settlements of non-designated                                              
 foreign exchange forward                                                   
 contracts                       (1,095)       -      (11)       -   (1,106)
                               ---------------------------------------------
CASH FLOW FROM VESSEL                                                       
 OPERATIONS(2)                      381  (11,813)  (8,780)  (8,958) (29,170)
                               ---------------------------------------------
                               ---------------------------------------------

1.  Results of two chartered-in LNG carriers owned by Teekay LNG and one
    chartered-in FSO unit owned by Teekay Offshore and interest income
    received from an investment in term loan. 
2.  Excludes CFVO from the Company's proportionate share of CFVO generated
    by its equity-accounted vessels and other investments. 

TEEKAY CORPORATION

APPENDIX C - SUPPLEMENTAL FINANCIAL INFORMATION

TEEKAY PARENT SUMMARY OPERATING RESULTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012

(in thousands of U.S. dollars)

(unaudited)

Set forth below is a reconciliation of unaudited cash flow from vessel operations, a non-GAAP financial measure, to income from vessel operations as determined in accordance with GAAP, for Teekay Parent's primary operating segments. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate Teekay Parent's financial performance. Disaggregated cash flow from vessel operations for Teekay Parent, as provided below, is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


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                                          In-                               
                                    Chartered                         
                              Owned  Convent-                               
                           Convent-     ional                        Teekay 
                              ional   Tankers                        Parent 
                            Tankers       (1)     FPSOs  Other(2)     Total 
                          --------------------------------------------------
                                                                            
Revenues                     20,802   101,484   229,015    45,134   396,435 
                                                                            
Voyage expenses                 638     4,399         -      (153)    4,884 
Vessel operating expenses     7,006    14,802   157,951     2,298   182,057 
Time-charter hire expense         -   134,383    15,917    32,955   183,255 
Depreciation and                                                            
 amortization                 8,640         -    57,786       820    67,246 
General and administrative    2,578     5,471    28,864    20,270    57,183 
Net gain on vessel sales       (197)        -         -         -      (197)
Restructuring charges             -         -         -     5,027     5,027 
                          --------------------------------------------------
Total operating expenses     18,665   159,055   260,518    61,217   499,455 
                          --------------------------------------------------
                                                                            
                          --------------------------------------------------
Income (loss) from vessel                                                   
 operations                   2,137   (57,571)  (31,503)  (16,083) (103,020)
                          --------------------------------------------------
                                                                            
Reconciliation of (loss) income from vessel operations to cash flow from    
 vessel operations                                                          
                                                                            
Income (loss) from vessel                                                   
 operations                   2,137   (57,571)  (31,503)  (16,083) (103,020)
Depreciation and                                                            
 amortization                 8,640         -    57,786       820    67,246 
Net gain on vessel sales       (197)        -         -         -      (197)
Amortization of in process                                                  
 revenue contracts and                                                      
 other                         (138)     (114)  (42,990)        -   (43,242)
Unrealized losses from the                                                  
 change in fair value of                                                    
 designated foreign                                                         
 exchange forward                                                           
 contracts                      (61)        -       259         -       198 
Realized (losses) gains                                                     
 from the settlements of                                                    
 non-designated foreign                                                     
 exchange forward                                                           
 contracts/bunkers/FFAs      (1,469)        -       150         -    (1,319)
Dropdown predecessor cash                                                   
 flow(3)                     20,155         -         -         -    20,155 
                          --------------------------------------------------
CASH FLOW FROM VESSEL                                                       
 OPERATIONS(4)               29,068   (57,685)  (16,298)  (15,263)  (60,179)
                          --------------------------------------------------
                          --------------------------------------------------

1.  Time-charter hire expense includes a one-time $14.7 million charter
    termination fee paid to Teekay Offshore. 
2.  Includes the results of two chartered-in LNG carriers owned by Teekay
    LNG and one chartered-in FSO unit owned by Teekay Offshore, interest
    income received from an investment in term loan and a one-time $7.0
    million success fee payment received from Teekay LNG upon the
    acquisition of six LNG carriers in February 2012. 
3.  Includes cash flow from vessel operations (CFVO) relating to assets
    owned by Teekay Parent prior to their acquisition by Teekay Tankers as
    these results are included in the historical results for Teekay Parent. 
4.  Excludes CFVO from the Company's proportionate share of CFVO generated
    by its equity-accounted vessels and other investments. 

TEEKAY CORPORATION

APPENDIX D - SUPPLEMENTAL FINANCIAL INFORMATION

TEEKAY PARENT FREE CASH FLOW

(in thousands of U.S. dollars)

(unaudited)

Set forth below is an unaudited calculation of Teekay Parent free cash flow for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011, and September 30, 2011. The Company defines free cash flow, a non-GAAP financial measure, as cash flow from vessel operations attributed to its directly-owned and in-chartered assets, distributions received as a result of ownership interests in its publicly-traded subsidiaries (Teekay LNG, Teekay Offshore, and Teekay Tankers), net of interest expense and drydock expenditures in the respective period. For a reconciliation of Teekay Parent cash flow from vessel operations for the three months ended September 30, 2012 to the most directly comparable financial measure under GAAP, please refer to Appendix C to this release. For a reconciliation of Teekay Parent cash flow from vessel operations to the most directly comparable GAAP financial measure for the three months ended June 30, 2012, March 31, 2012, December 31, 2011, and September 30, 2011, please see the Company's website at www.teekay.com. Teekay Parent free cash flow, as provided below, is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


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                                          Three Months Ended                
                          --------------------------------------------------
                          September                      December September 
                                30,  June 30, March 31,       31,       30, 
                          --------------------------------------------------
                               2012      2012      2012      2011      2011 
                          --------------------------------------------------
Teekay Parent cash flow                                                     
 from vessel operations(1)                                                  
Owned Conventional Tankers      381    13,339    15,347    18,090    13,690 
  In-Chartered                                                              
   Conventional Tankers(2)  (11,813)  (28,138)  (17,734)  (34,957)  (30,966)
  FPSOs                      (8,780)   (3,205)   (4,313)   35,044    (5,501)
  Other                      (8,958)   (6,441)      136   (13,073)   (9,959)
                          --------------------------------------------------
  Total                     (29,170)  (24,445)   (6,564)    5,104   (32,736)
Daughter company                                                            
 distributions to Teekay                                                    
 Parent(3)                                                                  
Common shares/units(4)                                                      
  Teekay LNG Partners        17,016    17,016    17,016    15,881    15,881 
  Teekay Offshore Partners   11,461    11,461    11,461    11,181    11,181 
  Teekay Tankers Ltd.(5)        420     2,307     2,578     1,772     2,417 
                          --------------------------------------------------
  Total                      28,897    30,784    31,055    28,834    29,479 
General partner interest                                                    
  Teekay LNG Partners         5,935     5,524     5,524     3,470     3,176 
  Teekay Offshore Partners    3,155     2,849     2,782     2,488     2,237 
                          --------------------------------------------------
  Total                       9,090     8,373     8,306     5,958     5,413 
Total Teekay Parent cash                                                    
 flow before interest and                                                   
 dry dock expenditures        8,817    14,712    32,797    39,896     2,156 
Less:                                                                       
  Net interest expense (6)  (16,284)  (19,269)  (19,504)  (17,280)  (16,920)
  Dry dock expenditures           -      (129)     (124)   (3,659)   (1,811)
                          --------------------------------------------------
TOTAL TEEKAY PARENT FREE                                                    
 CASH FLOW                   (7,467)   (4,686)   13,169    18,957   (16,575)
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1.  Cash flow from vessel operations represents income from vessel
    operations before depreciation and amortization expense, vessel/goodwill
    write-downs, gains or losses on the sale of vessels, adjustments for
    direct financing leases on a cash basis, and unrealized gains and losses
    relating to derivatives, but includes realized gains and losses on the
    settlement of foreign currency forward contracts. Cash flow from vessel
    operations is a non-GAAP financial measure used by certain investors to
    measure the financial performance of shipping companies. For further
    details for the quarter ended September 30, 2012, including a
    reconciliation of this non-GAAP financial measure to the most directly
    comparable GAAP financial measure, please refer to Appendix C to this
    release; for a reconciliation of this non-GAAP financial measure to the
    most directly comparable GAAP financial measure for the quarters ended
    June 30, 2012, March 31, 2012, December 31, 2011, and September 30,
    2011, please refer to the Company's website at www.teekay.com. 
2.  Includes a one-time charter termination fee of $14.7 million paid to
    Teekay Offshore during the three months ended June 30, 2012. 
3.  Cash dividend and distribution cash flows are shown on an accrual basis
    for dividends and distributions declared for the respective period. 
4.  Common share/unit dividend/distribution cash flows to Teekay Parent are
    based on Teekay Parent's ownership on the ex-dividend date for the
    respective company and period as follows: 

                                      Three Months Ended                    
                  ----------------------------------------------------------
                     September                                     September
                           30,    June 30,   March 31,December 31,       30,
                  ----------------------------------------------------------
                          2012        2012        2012        2011      2011
                  ----------------------------------------------------------
                                                                            
Teekay LNG                                                                  
 Partners                                                                   
  Distribution                                                              
   per common                                                               
   unit          $     0.675 $     0.675 $     0.675 $     0.630 $     0.630
  Common units                                                              
   owned by                                                                 
   Teekay Parent  25,208,274  25,208,274  25,208,274  25,208,274  25,208,274
                ------------------------------------------------------------
  Total                                                                     
   distribution  $17,015,585 $17,015,585 $17,015,585 $15,881,213 $15,881,213
Teekay Offshore                                                             
 Partners                                                                   
  Distribution                                                              
   per common                                                               
   unit          $    0.5125 $    0.5125 $    0.5125 $     0.500 $     0.500
  Common units                                                              
   owned by                                                                 
   Teekay Parent  22,362,814  22,362,814  22,362,814  22,362,814  22,362,814
                ------------------------------------------------------------
  Total                                                                     
   distribution  $11,460,942 $11,460,942 $11,460,942 $11,181,407 $11,181,407
Teekay Tankers                                                              
 Ltd.                                                                       
  Dividend per                                                              
   share         $      0.02 $      0.11 $      0.16 $      0.11 $      0.15
  Shares owned                                                              
   by Teekay                                                                
   Parent( 5)     20,976,530  20,976,530  16,112,244  16,112,244  16,112,244
                ------------------------------------------------------------
  Total dividend $   419,531 $ 2,307,418 $ 2,577,959 $ 1,772,347 $ 2,416,837

5.  Includes Class A and Class B shareholdings. 
6.  Net interest expense includes realized gains and losses on interest rate
    swaps. For the three months ended June 30, 2012, net interest expense
    includes $6.3 million related to 13 conventional tankers prior to their
    sale to Teekay Tankers in June 2012. For the three months ended
    September 30, 2011, net interest expense excludes a realized loss of
    $34.4 million related to early termination of an interest rate swap
    agreement. 

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: the estimated cost and timing of delivery of FPSO and shuttle tanker newbuildings or conversions and the effect on the Company's future operating results; the timing and certainty of the completion of repairs and field re-installation for the Petrojarl Banff FPSO; the estimated timing of commencement of new charter contracts upon delivery of FPSO and shuttle tanker newbuildings or conversions; the sale of the Voyageur Spirit FPSO from Sevan Marine to Teekay Parent and then to Teekay Offshore, including Teekay Parent's estimated acquisition cost of the Voyageur Spirit from Sevan Marine, and the difference between Teekay Offshore's purchase price and Teekay Parent's acquisition cost from Sevan Marine; the timing and certainty of completing the Company's new $330 million debt facility for the Voyageur Spirit; expected timing of redeliveries of vessels chartered-in by Teekay Parent; the potential redeployment of the Petrojarl I FPSO, including timing and certainty of commencing a new charter; timing and amount of cost savings related to the Company's new ship management company, Teekay Marine Ltd., and the Company's cost-savings initiatives, including reorganization of the Company's shuttle tanker operations; and the Company's future capital expenditure commitments and the debt financings that the Company expects to obtain for its remaining unfinanced capital expenditure commitments.

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 or demand for oil, petroleum products, LNG and LPG, either generally or in particular regions; greater or less than anticipated levels of tanker newbuilding orders or greater or less than anticipated rates of tanker scrapping; 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; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil or demand for shuttle tankers, FSOs and FPSOs; decreases in oil production by or increased operating expenses for FPSO units; trends in prevailing charter rates for shuttle tanker and FPSO contract renewals; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts or complete existing contract negotiations; changes affecting the offshore tanker market; shipyard production or vessel conversion delays and cost overruns; delays in commencement of operations of FPSO units at designated fields; changes in the Company's expenses; the Company's future capital expenditure requirements and the inability to secure financing for such requirements; the inability of the Company to complete vessel sale transactions to its public company subsidiaries or to third parties; factors impeding or preventing the Company from realizing expected savings from the reorganization of its conventional tanker and shuttle tanker operations; conditions in the United States capital markets; and other factors discussed in Teekay's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2011. The Company 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 Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Contacts:
Teekay Corporation
Kent Alekson
+1 (604) 844-6654
www.teekay.com