Teekay Group Fourth Quarter and Annual 2024 Earnings Presentation 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: potential changes to or termination of Teekay Tankers' capital allocation plan or dividend policy; the declaration of any future cash dividends on our common shares; the Teekay Group's available cash and the levels ...

Financial Data and Key Metrics Changes - Teekay Tankers reported adjusted net income of $52 million or $1.50 per share for Q4 2024, and for the full year 2024, adjusted net income was $355 million or $10.31 per share [7] - The company generated $69 million in free cash flow in Q4 and $450 million for the year, despite softer spot rates towards the end of the year [7] - A quarterly fixed dividend of $0.25 per share was declared, with a total of $3 per share paid in dividends for the full year [13] Business Line Data and Key Metrics Changes - The company sold two 2009-built Suezmaxes and one 2006-built LR2 for a combined $96 million as part of its fleet management strategy [7][8] - A total of five vessels were sold during Q4 for combined proceeds of $160 million, resulting in expected book gains of nearly $60 million [8] - The company signed a Memorandum of Agreement to acquire a modern LR2 tanker, expected to close in Q2 [8] Market Data and Key Metrics Changes - Weak Chinese demand impacted the VLCC market, affecting Suezmax and Aframax spot rates, although rates remained above long-term averages [14] - Spot rates booked to date for Q1 are slightly below Q4 levels but are trending upwards [12] - The imposition of US sanctions on tankers servicing the Russian oil trade has increased rate volatility, particularly in larger crude tanker asset classes [15] Company Strategy and Development Direction - Teekay Tankers is focused on fleet renewal by selling older vessels and acquiring modern tonnage when opportunities arise [9][10] - The company aims to maintain a fully integrated shipping platform within the Teekay Group following the acquisition of Teekay Australia [10] - The investment in Ardmore Shipping Corporation represents a strategic move to gain exposure in the product sector, although it remains a small part of the overall capital allocation plan [11][35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the geopolitical factors affecting the tanker market, including the ongoing conflicts in Ukraine and the Middle East, which could influence tanker demand and supply [16][17] - The company remains optimistic about underlying tanker supply and demand fundamentals, projecting a balanced market over the medium term [28] - Management emphasized the importance of patience in capital deployment, given the current market conditions and the cyclical nature of the business [51] Other Important Information - The company has a low free cash flow breakeven of approximately $14,300 per day, allowing it to generate significant cash flow in various market conditions [28] - The tanker fleet is currently the oldest in over 20 years, with a significant number of vessels over 20 years old, which could lead to increased scrapping in the future [26][27] Q&A Session Summary Question: Insights on the Ardmore investment - Management clarified that the investment in Ardmore is small and opportunistic, aimed at gaining value without straying from core operations [33][35] Question: Continued pace of renewal buying versus selling - Management indicated that while more vessels are being sold than bought, the focus remains on fleet renewal and capital allocation for long-term shareholder value [39][42] Question: Impact of sanctions on the Aframax market - Management confirmed that sanctions have affected Russian oil exports, leading to increased volumes from alternative sources, which has created volatility in the freight market [58][60] Question: Factors driving pressure on rates - Management noted that the Suezmax market experienced a weaker finish to 2024, but recent upticks in demand are expected to improve rates [68][70] Question: Future of the tanker market amid geopolitical uncertainties - Management expressed uncertainty about how quickly trade normalization could occur, emphasizing the unprecedented nature of the current situation [76][77]

Core Insights - Teekay Tankers Ltd. reported its financial results for the quarter and year ended December 31, 2024, and declared a cash dividend of $0.25 per share, payable on March 14, 2025, to shareholders of record as of March 3, 2025 [1]. Company Overview - Teekay Tankers operates a fleet of 39 double-hull tankers, which includes 23 Suezmax tankers and 16 Aframax/LR2 tankers, along with five time-chartered oil and product tankers [3]. - The company's vessels are typically utilized through a combination of spot market trading and short- to medium-term fixed-rate time charter contracts [3]. - Teekay Tankers also owns a Very Large Crude Carrier (VLCC) through a 50 percent-owned joint venture and manages vessels for the Australian Government and energy companies [3]. - Additionally, the company operates a ship-to-ship transfer business that provides full-service lightering and support operations in the U.S. Gulf and Caribbean [3]. - Teekay Tankers was established in December 2007 by Teekay Corporation Ltd. [3].

Company Performance - Teekay Tankers (TNK) closed at $41.70, reflecting a -1.56% change from the previous day's closing price, underperforming compared to the S&P 500's daily loss of 0.95% [1] - Over the past month, shares of Teekay Tankers have increased by 0.59%, which is lower than the Transportation sector's gain of 4.51% and the S&P 500's gain of 1.86% [1] Upcoming Earnings - Analysts expect Teekay Tankers to report earnings of $1.49 per share, indicating a year-over-year decline of 48.08% [2] - The consensus estimate for revenue is $158.26 million, down 18.62% from the same quarter last year [2] Analyst Estimates - Recent adjustments to analyst estimates for Teekay Tankers are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [3] Zacks Rank and Valuation - Teekay Tankers currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate decreasing by 6.56% in the past month [5] - The company has a Forward P/E ratio of 5.95, which is lower than the industry average of 9.03, and a PEG ratio of 1.98 compared to the industry average of 1.44 [6] Industry Context - The Transportation - Shipping industry, which includes Teekay Tankers, ranks in the bottom 6% of all industries according to the Zacks Industry Rank, indicating weaker performance compared to other sectors [7]

Company Performance - Teekay Tankers' stock closed at $41.92, down 1.11% from the previous trading day, underperforming the S&P 500 which lost 0.51% [1] - The stock has increased by 2.76% over the past month, lagging behind the Transportation sector's gain of 5.35% and the S&P 500's gain of 2.87% [1] Upcoming Financial Results - The projected earnings per share (EPS) for Teekay Tankers is $1.49, representing a 48.08% decrease from the same quarter last year [2] - Revenue is estimated to be $158.26 million, indicating an 18.62% decrease compared to the same quarter of the previous year [2] Analyst Estimates and Valuation - Recent changes in analyst estimates for Teekay Tankers are important as they reflect the evolving business trends [3] - The Zacks Rank system, which incorporates estimate changes, currently rates Teekay Tankers as 5 (Strong Sell), with a 6.56% decrease in the consensus EPS estimate over the last 30 days [4][5] - Teekay Tankers has a Forward P/E ratio of 5.95, which is lower than the industry average of 8.65 [6] - The company has a PEG ratio of 1.98, compared to the Transportation - Shipping industry's average PEG ratio of 1.27 [7] Industry Context - The Transportation - Shipping industry, which includes Teekay Tankers, has a Zacks Industry Rank of 248, placing it in the bottom 2% of over 250 industries [8]

Company Performance - Teekay Tankers closed at $39.74, reflecting a +0.61% change from the previous day, which is lower than the S&P 500's gain of 0.92% [1] - The stock has increased by 1.65% over the past month, underperforming the Transportation sector's gain of 5.3% and the S&P 500's gain of 0.81% [1] Earnings Report Expectations - Teekay Tankers is projected to report earnings of $1.67 per share, indicating a year-over-year decline of 41.81% [2] - The consensus estimate anticipates revenue of $158.26 million, representing an 18.62% decrease from the same quarter last year [2] Analyst Estimates and Ratings - Recent adjustments to analyst estimates for Teekay Tankers are being monitored, as they reflect changing business trends [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks Teekay Tankers at 5 (Strong Sell), with the Zacks Consensus EPS estimate having decreased by 4.26% in the past month [4][5] Valuation Metrics - Teekay Tankers has a Forward P/E ratio of 5.41, which is lower than the industry's Forward P/E of 7.9, indicating a valuation discount [6] - The company has a PEG ratio of 1.8, compared to the industry average PEG ratio of 1.17 [6] Industry Context - The Transportation - Shipping industry, which includes Teekay Tankers, has a Zacks Industry Rank of 240, placing it in the bottom 5% of over 250 industries [7] - The Zacks Industry Rank measures the average Zacks Rank of individual stocks within the industry, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1: Company Performance - Teekay Tankers' stock closed at $47.31, reflecting a +0.32% change, which is lower than the S&P 500's gain of 1.83% [1] - Over the past month, shares of Teekay Tankers have increased by 24.63%, outperforming the Transportation sector's decline of 2.55% and the S&P 500's drop of 3.31% [1] Group 2: Upcoming Earnings - The company is expected to report an EPS of $1.81, indicating a 36.93% decrease compared to the same quarter last year [2] - Revenue is anticipated to be $158.26 million, down 18.62% from the prior-year quarter [2] Group 3: Analyst Estimates - Recent changes to analyst estimates for Teekay Tankers reflect shifting business dynamics, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Consensus EPS estimate has decreased by 13.94% over the last 30 days, and Teekay Tankers currently holds a Zacks Rank of 5 (Strong Sell) [5] Group 4: Valuation Metrics - Teekay Tankers has a Forward P/E ratio of 6.18, which is lower than the industry average of 8.03, suggesting it is trading at a discount [6] - The company has a PEG ratio of 2.06, compared to the Transportation - Shipping industry's average PEG ratio of 0.53 [7] Group 5: Industry Context - The Transportation - Shipping industry is ranked 241 in the Zacks Industry Rank, placing it in the bottom 4% of over 250 industries [7][8] - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - Teekay Tankers' stock closed at $42.11, reflecting a -1.31% change from the previous day, underperforming the S&P 500's gain of 0.16% [1] - Over the past month, Teekay Tankers' shares increased by 9.43%, outperforming the Transportation sector's decline of 5.71% and the S&P 500's loss of 2.7% [1] Group 2 - The upcoming earnings disclosure for Teekay Tankers is projected to show an EPS of $1.81, which is a 36.93% decrease compared to the same quarter last year [2] - Revenue is expected to be $158.26 million, indicating an 18.62% decline from the corresponding quarter of the previous year [2] Group 3 - Recent changes in analyst estimates for Teekay Tankers suggest a favorable outlook on the company's business health and profitability [3] - The Zacks Rank system, which evaluates estimated changes, currently ranks Teekay Tankers at 5 (Strong Sell), with a consensus EPS estimate that has decreased by 26.22% in the past month [5] Group 4 - Teekay Tankers is trading at a Forward P/E ratio of 5.52, which is lower than the industry average of 7.11, indicating a discount relative to its peers [6] - The company's PEG ratio stands at 1.84, while the Transportation - Shipping industry has an average PEG ratio of 0.52, suggesting differing growth expectations [7] Group 5 - The Transportation - Shipping industry, to which Teekay Tankers belongs, ranks in the bottom 4% of all industries, with a current Zacks Industry Rank of 241 [7][8]

Company Overview - Teekay Tankers (TNK) closed at $39.91, reflecting a slight decrease of -0.03% from the previous day, underperforming the S&P 500 which gained 0.55% [1] - The upcoming earnings release is anticipated, with an expected EPS of $1.81, indicating a significant decline of 36.93% compared to the same quarter last year [2] - Revenue projections are set at $158.26 million, down 18.62% from the previous year [2] Analyst Estimates - Recent changes in analyst estimates for Teekay Tankers suggest a trend in short-term business performance, with positive revisions indicating analyst optimism [3] - Over the past month, the Zacks Consensus EPS estimate has decreased by 26.22%, leading to a current Zacks Rank of 5 (Strong Sell) for the company [5] Valuation Metrics - Teekay Tankers is currently trading at a Forward P/E ratio of 5.24, which is below the industry average of 6.9, indicating a valuation discount [6] - The company has a PEG ratio of 1.75, compared to the Transportation - Shipping industry's average PEG ratio of 0.52 [6] Industry Context - The Transportation - Shipping industry is ranked 233 in the Zacks Industry Rank, placing it in the bottom 8% of over 250 industries [7] - Historical data shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape [7]

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Teekay Tankers (TNK) .Teekay Tankers currently has an average bro ...