GlobeNewswire Inc | Aug 13, 2020 02:00AM EDT

August 13, 2020

Highlights

-- GAAP net income attributable to shareholders of Teekay of $21.7 million, or $0.21 per share, and adjusted net income attributable to shareholders of Teekay(1) of $39.7 million, or $0.39 per share, in the second quarter of 2020 (excluding items listed in Appendix A to this release). -- Total adjusted EBITDA(1) of $315.9 million in the second quarter of 2020, a 61 percent increase over the same period of the prior year. -- Reduced consolidated net debt by over $267 million in the second quarter of 2020; and total consolidated liquidity position of approximately $940 million as of June 30, 2020. -- Teekay Parent received $67 million of cash related to the previously-announced new Foinaven FPSO contract in April 2020; eliminated all of its remaining Teekay Tankers debt guarantees as a result of Teekay Tankers' debt refinancing in August 2020; and secured commitments for a new equity margin revolver at substantially similar terms to refinance its undrawn December 2020 debt maturity, subject to final documentation. -- Teekay LNG reported another record-high adjusted net income in the second quarter of 2020. -- Teekay Tankers delivered nine vessels onto previously announced time charter-out contracts, increasing the percentage of the fleet on fixed-rate charters to approximately 23 percent and reducing its spot fleet free cash flow breakeven rate to $12,700 per day(3) through mid-2021.

VANCOUVER, British Columbia, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported results for the second quarter ended June 30, 2020. These results include the Companys two publicly-listed consolidated subsidiaries, Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP) and Teekay Tankers Ltd. (Teekay Tankers) (NYSE:TNK) (collectively, the Daughter Entities), and all remaining subsidiaries and equity-accounted investments. Teekay, together with its subsidiaries other than the Daughter Entities, is referred to in this release as Teekay Parent. Please refer to the second quarter 2020 earnings releases of Teekay LNG and Teekay Tankers, which are available on Teekay's website at www.teekay.com, for additional information on their respective results.

Financial Summary

Three Months Ended June 30, March 31, June 30,(in thousands of U.S. dollars, except per 2020 2020 2019 ^(2)share amounts) (unaudited) (unaudited) (unaudited)TEEKAY CORPORATION CONSOLIDATED GAAP FINANCIAL COMPARISON Revenues 482,805 574,054 462,397 Income from vessel operations 148,504 128,896 71,463 Equity income (loss) 35,343 2,313 (6,284 )Net income (loss) attributable to shareholders of Teekay 21,723 (49,805 ) (39,485 )Earnings (loss) per share attributable to shareholders of Teekay 0.21 (0.49 ) (0.39 )NON-GAAP FINANCIAL COMPARISON Total adjusted revenues ^(1) 592,658 681,353 532,138 Total adjusted EBITDA ^(1) 315,869 342,198 196,609 Adjusted net income (loss) attributable to shareholders of Teekay ^(1) 39,713 25,259 (13,368 )Adjusted net income (loss) per share attributable to shareholders of Teekay ^(1) 0.39 0.25 (0.13 )TEEKAY PARENT NON-GAAP FINANCIAL COMPARISON Teekay Parent adjusted EBITDA ^(1) 9,716 5,139 3,427 Total Teekay Parent free cash flow ^(1) (1,886 ) 52,689 (6,427 )

(1) These are non-GAAP financial measures. Please refer to Definitions and Non-GAAP Financial Measures and the Appendices to this release for definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under United States generally accepted accounting principles (GAAP).

(2) Comparative balances relating to the three months ended June 30, 2019 have been recast to reflect results consistent with the presentation in the Companys 2019 Annual Report on Form 20-F and Form 6-K for the three and six months ended June 30, 2020.

(3) Please refer to Definitions and Non-GAAP Financial Measures for definition of free cash flow in the Teekay Tankers Second Quarter of 2020 earnings release. The figures also includes expenditures for drydock and ballast water treatment system installation.

CEO Commentary

In the second quarter of 2020, we reported our third consecutive quarterly adjusted profit, recording consolidated adjusted net income of $39.7 million, or $0.39 per share, and increasing our total adjusted EBITDA by approximately $119 million, or 61 percent, from the same period of last year, commented Kenneth Hvid, Teekays President and Chief Executive Officer. While COVID-19 continues to have an unprecedented impact on the world and is a major focus for us, Teekays fleet has experienced minimal operational impact. As a result of the pandemic, the overall maritime industry has experienced significant challenges related to crew changes, but I am pleased to report that we have safely changed-out a number of crew members on effectively all our vessels. We continue to work hard with both the industry and inter-governmental organizations to tackle this challenge and bring our remaining overdue colleagues home safely as soon as possible. I am truly proud of how our seafarers and onshore colleagues have responded to ensure safe and successful transitions with no reported COVID-19 cases, while providing uninterrupted service to our customers.

Our strong second quarter results can be attributed to solid earnings in each of our businesses. Teekay LNG reported another quarterly record-high in adjusted net income and total adjusted EBITDA; Teekay Tankers experienced another quarter of strong spot tanker rates; and our directly-owned FPSO unit operating results improved as a result of the new bareboat charter contract on the Foinaven FPSO unit, which eliminated our exposure to the previous loss-making contract, commented Mr. Hvid. Looking ahead to next quarter, we expect Teekay LNG will continue earning stable cash flows as a result of its LNG fleet being 100 percent fixed through the rest of 2020. At Teekay Tankers, the spot tanker market has come under pressure since mid-May 2020 following three quarters of very strong spot tanker rates. The near-term outlook for the tanker business is uncertain at this point, but we are pleased to have significantly reduced our effective free cash flow breakevens and near-term spot exposure by locking-in 23 percent of the tanker fleet on fixed-rate contracts at attractive rates, and we are encouraged by the fleet supply fundamentals which are favorable relative to prior market cycles. In addition, the Banff FPSO unit ceased production on its field in June 2020 and we have commenced the various decommissioning and subsea remediation procedures on the field. The FPSO unit is expected to leave the Banff field during the third quarter of 2020 and prepare for recycling by the end of the year with the remaining subsea remediation work expected to be carried out in the summer of 2021.

We continue to execute on our delevering path and further simplifying our structure, commented Mr. Hvid. During the quarter, we reduced our consolidated net debt by over $267 million as a result of strong cash flows, proceeds from asset sales and cash received from the new Foinaven FPSO unit contract. Over the past year, we have reduced our consolidated net debt by approximately $887 million, or 20 percent. In addition, with the recent refinancing of four of Teekay Tankers Suezmax tankers, we have eliminated all of our remaining guarantees of Teekay Tankers debt. As announced in May, we also eliminated the incentive distribution rights we held in Teekay LNG in exchange for 10.75 million newly-issued Teekay LNG common units.

Mr. Hvid added, With our balance sheets continuing to strengthen, extensive contracted revenues at Teekay LNG and higher contracted revenue at Teekay Tankers, and no committed growth capital expenditures or significant near-term debt maturities, we have made significant progress in both insulating our companies from near-term market volatility and positioning the Teekay Group to create long-term shareholder value and remain a leader in shaping the future of marine energy transportation.

Summary of Results

Teekay Corporation Consolidated

The Company's consolidated results during the quarter ended June 30, 2020 improved compared to the same period of the prior year, primarily due to: higher average spot tanker rates earned by Teekay Tankers in the second quarter of 2020; higher earnings in Teekay LNG due to earnings from six liquefied natural gas (LNG) carrier newbuildings which delivered into its consolidated fleet and equity-accounted joint ventures last year, and higher earnings by certain of Teekay LNG's joint ventures as their individual projects commenced or certain of their vessels commenced charters at, or earned, higher rates; improved results from the commencement of the Foinaven FPSO unit's new bareboat charter in late-March 2020; and fewer dry docking and off-hire days in the second quarter of 2020. These improvements were partially offset by Teekay Tankers' sale of four Suezmax tankers during December 2019 and the first quarter of 2020, as well as the sale of the non-US portion of the ship-to-ship support services business and its LNG terminal management business in the second quarter of 2020; a reduction in Teekay LNG's earnings following the sale of two LNG carriers in early-2020; and a reduction in the Banff FPSO unit's earnings due to the decommissioning of the Banff oil field, which commenced on June 1, 2020, and lower oil price tariffs earned due to lower oil prices in the second quarter of 2020.

In addition, consolidated GAAP net income was positively impacted in the three months ended June 30, 2020, compared to the same quarter of the prior year, by various items, including a reduction in freight tax accruals in the second quarter of 2020, losses of $10.7 million and $7.8 million recognized in the second quarter of 2019 relating to the repurchase of Teekay's 8.5% senior notes due 2020 (the 2020 Notes) and the sale of Teekay Parent's remaining investment in Altera Infrastructure L.P. (or Altera), respectively, as well as a $3.1 million gain recognized on Teekay Tankers' sale of the non-US portion of the ship-to-ship support services business and its LNG terminal management business in the second quarter of 2020. These items were partially offset by a $13.6 million provision in the second quarter of 2020 relating to an adjustment in the Banff FPSO unit's estimated asset retirement obligation and the write-down of the unit's remaining residual value. The Banff FPSO unit's estimated asset retirement obligation relating to the remediation of the subsea infrastructure, net of a customer receivable of $8.1 million, was $43.9 million as of June 30, 2020 (excluding remaining operating expenses and recycling costs relating to the FPSO unit).

Teekay Parent

Total Teekay Parent Free Cash Flow(1) was negative $1.9 million during the second quarter of 2020, compared to negative $6.4 million for the same period of the prior year, primarily due to: the elimination of the operating losses on the Foinaven FPSO unit as a result of the commencement of the new bareboat contract at the end of the first quarter of 2020; higher distributions received from Teekay LNG as a result of Teekay LNG's 32 percent increase in its quarterly cash distributions in May 2020 and the newly-issued Teekay LNG common units Teekay Parent received as consideration for the Teekay LNG incentive distribution rights (IDR) transaction completed in May 2020; and lower net interest expense(1) as a result of the repurchase of unsecured bonds over the past year and the bond refinancing completed in May 2019. These increases are partially offset by: higher general and administrative costs incurred in the second quarter of 2020 mainly due to a change in timing of the annual equity-based compensation grants in 2020 and professional fees associated with the IDR transaction; and lower contribution from the Banff FPSO unit due to the decommissioning of the Banff oil field, which commenced on June 1, 2020, and lower oil price tariffs earned due to lower oil prices in the second quarter of 2020.

Please refer to Appendix D of this release for additional information about Teekay Parent's Free Cash Flow(1).

(1) This is a non-GAAP financial measure. Please refer to Definitions and Non-GAAP Financial Measures and the Appendices to this release for a definition of this term and a reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable financial measures under GAAP.

Summary Results of Daughter Entities

Teekay LNG

Teekay LNGs net income and adjusted net income(1) and total adjusted EBITDA(1) for the three months ended June 30, 2020, compared to the same quarter of the prior year, were positively impacted by: earnings from six LNG carrier newbuildings which delivered into Teekay LNG's consolidated fleet and equity-accounted joint ventures last year; fewer dry docking and repair off-hire days; and higher earnings by certain of Teekay LNG's joint ventures as their individual projects commenced or certain of their vessels commenced charters at, or earned, higher rates. These increases were partially offset by a reduction in earnings as a result of the sales of two LNG carriers in January 2020, and an oil tanker in October 2019.

Please refer to Teekay LNG's second quarter 2020 earnings release for additional information on the financial results for this entity.

Teekay Tankers

Teekay Tankers' net income, adjusted net income(1), and total adjusted EBITDA(1) for the three months ended June 30, 2020 significantly increased compared to the same period of the prior year, primarily due to higher average spot tanker rates and fewer off-hire days in the second quarter of 2020. These increases were partially offset by the sale of four Suezmax tankers during December 2019 and the first quarter of 2020, as well as the sale of the non-US portion of the ship-to-ship support services business and the LNG terminal management business in the second quarter of 2020.

In addition, GAAP net income was positively impacted in the three months ended June 30, 2020, compared to GAAP net loss for the same quarter of the prior year, as a result of a $15.2 million reduction in freight tax accruals and a $3.1 million gain on sale of assets.

Spot tankers rates have come under pressure since mid-May 2020 as a result of the unwinding of floating storage and record OPEC+ production cuts, in addition to lower non-OPEC production, which reduced crude exports. Teekay Tankers has so far secured spot tanker rates for its Suezmax and Aframax-sized vessels of $24,800 per day and $15,200 per day, based on 57 percent and 47 percent of the available spot revenue days fixed to-date in the third quarter of 2020, respectively, compared to $46,500 per day and $29,600 per day in the second quarter of 2020, respectively.

Please refer to Teekay Tankers' second quarter 2020 earnings release for additional information on the financial results for this entity.

(1) This is a non-GAAP financial measure. Please refer to Definitions and Non-GAAP Financial Measures and the Appendices to this release for a definition of this term and a reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable financial measures under GAAP.

Summary of Recent Events

Teekay Parent

In July 2020, Teekay Parent secured commitments for a two-year equity margin revolver of up to $150 million to refinance its existing facility, which is currently undrawn and scheduled to mature in December 2020. The new revolver, which has substantially similar terms to the existing facility, is expected to be closed in August 2020 and remains subject to final documentation.

Teekay LNG

In July 2020, Teekay LNG entered into a new commercial management agreement with the current manager of its seven wholly-owned multi-gas vessels. The new agreement has a two-year term commencing in September 2020 and is in direct continuation of the expiry of the current commercial management agreement.

In May 2020, Teekay Parent and Teekay LNG eliminated all of Teekay LNG's IDRs held by Teekay LNG's general partner (the General Partner) in exchange for 10.75 million newly-issued Teekay LNG common units. Following the completion of this transaction on May 11, 2020, Teekay Parent now beneficially owns approximately 36 million of Teekay LNG's common units and remains the sole owner of the General Partner, which together represents an economic interest of approximately 42 percent in Teekay LNG.

In May 2020, on maturity, Teekay LNG repaid its 1 billion Norwegian Krone (NOK) -denominated bonds and the associated cross currency swap arrangement. This repayment amounted to $111 million, net of $23 million of cash collateral released on the associated cross currency swap.

In May 2020, Teekay LNG's 52 percent-owned joint venture with Marubeni Corporation (the MALT Joint Venture) chartered the Marib Spirit LNG carrier to an international trading company for a period of six months, which commenced in mid-June 2020.

In April 2020, the MALT Joint Venture secured new charters for the Arwa Spirit and the Methane Spirit LNG carriers for periods of twelve and eight months, respectively. The new charters commenced upon completion and in direct continuation of their existing charters in May and July 2020, respectively.

Teekay Tankers

In August 2020, Teekay Tankers secured a new three-year, $67 million term loan to refinance four Suezmax tankers. The proceeds from the new debt facility along with existing cash are expected to be used to repay approximately $85 million outstanding on Teekay Tankers' existing debt facility with respect to these vessels that was scheduled to mature in 2021. The new facility is priced at LIBOR plus 225 basis points and matures in 2023.

In late-April 2020, Teekay Tankers closed the previously announced sale of a portion of its oil and gas ship-to-ship transfer support business, which also provides gas terminal management and consulting services, for approximately $27.1 million, of which approximately $14.3 million was received in May 2020 with the remaining cash received in July 2020. During the second quarter of 2020, Teekay Tankers recognized a gain of $3.1 million from this transaction. Teekay Tankers retained its entire Full Service Lightering business that operates in the U.S. Gulf, which provides ship-to-ship oil transfers for both U.S. crude imports and exports. In addition, Teekay Tankers will continue to operate oil ship-to-ship transfer support services in North America and the Caribbean, a business that has synergies with its core Full Service Lightering business.

Liquidity

As at June30, 2020, Teekay Parent had total liquidity of approximately $165.5 million (consisting of $66.9 million of cash and cash equivalents and $98.6 million of undrawn capacity from a revolving credit facility), up from Teekay Parent liquidity of $87.1 million as at March 31, 2020.

On a consolidated basis, Teekay had consolidated total liquidity of approximately $939.4 million (consisting of $461.2 million of cash and cash equivalents and $478.2 million of undrawn capacity from its revolving credit facilities), up from total consolidated liquidity of $827.9 million as at March 31, 2020.

Conference Call

The Company plans to host a conference call on Thursday, August13, 2020 at 11:00 a.m. (ET) to discuss its results for the second quarter of 2020. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:

By dialing (800) 367-2403 or (647) 490-5367, if outside North America, and quoting conference ID code 2738323.

By accessing the webcast, which will be available on Teekays website at www.teekay.com (the archive will remain on the website for a period of one year).

An accompanying Second Quarter 2020 Earnings Presentation will also be available at www.teekay.com in advance of the conference call start time.

About Teekay

Teekay is a leading provider of international crude oil and gas marine transportation services and also provides offshore production. Teekay provides these services primarily through its directly-owned fleet and its controlling ownership interests in Teekay LNG Partners L.P. (NYSE:TGP), one of the worlds largest independent owners and operators of LNG carriers, and Teekay Tankers Ltd. (NYSE:TNK), one of the worlds largest owners and operators of mid-sized crude tankers. The consolidated Teekay entities manage and operate total assets under management of approximately $10 billion, comprised of approximately 140 liquefied gas, offshore, and conventional tanker assets. With offices in 10 countries and approximately 5,500 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the worlds leading oil and gas companies.

Teekays common stock is listed on the New York Stock Exchange where it trades under the symbol TK.

For Investor Relations enquiries contact:Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com

Definitions and Non-GAAP Financial Measures

This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission (SEC). These non-GAAP financial measures, which include Adjusted Net Income (Loss) Attributable to Shareholders of Teekay, Teekay Parent Free Cash Flow, Total Adjusted Revenues, Net Interest Expense, Adjusted Equity Income and Adjusted EBITDA, are intended to provide additional information and should not be considered substitutes for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized meanings across companies, and therefore may not be comparable to similar measures presented by other companies. The Company believes that certain investors use this information to evaluate the Companys financial performance, as does management.

Non-GAAP Financial Measures

Total Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation and amortization, foreign exchange gain (loss), items included in other (loss) income, write-down and gain (loss) on sale, gain on commencement of sales-type lease, equipment and other operating assets, adjustments for direct financing and sales-type leases to a cash basis, amortization of in-process revenue contracts, unrealized (losses) gains on derivative instruments, realized losses on interest rate swaps, realized losses on interest rate swap amendments and terminations, unrealized credit loss adjustments, write-downs related to equity-accounted investments, and our share of the above items in non-consolidated joint ventures which are accounted for using the equity method of accounting.

Consolidated Adjusted EBITDA represents Adjusted EBITDA from vessels that are consolidated on the Company's financial statements. Adjusted EBITDA from Equity-Accounted Vessels represents the Company's proportionate share of Adjusted EBITDA from its equity-accounted vessels. The Company does not have the unilateral ability to determine whether the cash generated by its equity-accounted vessels is retained within the entity in which the Company holds the equity-accounted investments or distributed to the Company and other owners. In addition, the Company does not control the timing of any such distributions to the Company and other owners. Total Adjusted EBITDA represents Consolidated Adjusted EBITDA plus Adjusted EBITDA from Equity-Accounted Joint Ventures. Adjusted EBITDA is a non-GAAP financial measure used by certain investors and management to measure the operational performance of companies. Please refer to Appendices C and E of this release for reconciliations of Adjusted EBITDA to net income (loss) and equity (loss) income, respectively, which are the most directly comparable GAAP measures reflected in the Companys consolidated financial statements.

Total Adjusted Revenues represents the Company's revenues from its consolidated vessels, as shown in the Company's Consolidated Statements of Income (Loss), and its proportionate ownership percentage of the revenues from its equity-accounted joint ventures, as shown in Appendix E of this release, and commencing in 2020, less the Company's proportionate share of revenues earned directly from its equity-accounted joint ventures. Please refer to Appendix E of this release for a reconciliation of this non-GAAP financial measure to revenues and equity income, the most directly comparable GAAP measure reflected in the Company's consolidated financial statements. The Company does not have the unilateral ability to determine whether the cash generated by its equity-accounted vessels is retained within the entity in which the Company holds the equity-accounted investments or distributed to the Company and other owners. In addition, the Company does not control the timing of any such distributions to the Company and other owners.

Adjusted Net Income (Loss) Attributable to Shareholders of Teekay excludes items of income or loss from GAAP net income (loss) that are typically excluded by securities analysts in their published estimates of the Companys financial results. The Company believes that certain investors use this information to evaluate the Companys financial performance, as does management. Please refer to Appendix A of this release for a reconciliation of this non-GAAP financial measure to net income (loss), and refer to footnote (6) of the statements of income (loss) for a reconciliation of adjusted equity income to equity income (loss), the most directly comparable GAAP measure reflected in the Companys consolidated financial statements.

Teekay Parent Financial Measures

Teekay Parent Adjusted EBITDA represents the sum of (a) distributions or dividends (including payments-in-kind) relating to a given quarter (but received by Teekay Parent in the following quarter) as a result of ownership interests in its consolidated publicly-traded subsidiaries (Teekay LNG and Teekay Tankers) and its equity-accounted investment in Altera prior to it being sold in May 2019, net of Teekay Parents corporate general and administrative expenditures for the given quarter and (b) Adjusted EBITDA attributed to Teekay Parents directly-owned and chartered-in assets.

Teekay Parent Free Cash Flow represents Teekay Parent Adjusted EBITDA, plus upfront cash receivable in respect of a sales-type lease, less Teekay Parents net interest expense and, commencing in the second quarter of 2020, asset retirement costs incurred for the given quarter. Net Interest Expense includes interest expense (excluding the amortization of prepaid loan costs), interest income and realized losses on interest rate swaps. Please refer to Appendices B, C, D and E of this release for further details and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures reflected in the Companys consolidated financial statements.

Teekay CorporationSummary Consolidated Statements of Income (Loss)(in thousands of U.S. dollars, except share and per share data)

Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 ^(1) 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Revenues 482,805 574,054 462,397 1,056,859 949,270 Voyage expenses (66,896 ) (121,564 ) (103,410 ) (188,460 ) (212,193 )Vessel operating (147,796 ) (153,293 ) (162,621 ) (301,089 ) (319,613 )expensesTime-charter (17,714 ) (27,056 ) (28,817 ) (44,770 ) (58,655 )hire expenseDepreciation and (62,936 ) (72,917 ) (73,849 ) (135,853 ) (145,956 )amortizationGeneral andadministrative (23,668 ) (18,277 ) (20,868 ) (41,945 ) (43,840 )expensesWrite-down andgain (loss) on (10,669 ) (94,606 ) ? (105,275 ) (3,328 )sale of assets ^(2)Gain oncommencement of ? 44,943 ? 44,943 ? sales-type lease^(3)Restructuring (4,622 ) (2,388 ) (1,369 ) (7,010 ) (9,990 )charges^ (4)Income fromvessel 148,504 128,896 71,463 277,400 155,695 operations Interest expense (59,245 ) (62,520 ) (70,205 ) (121,765 ) (143,876 )Interest income 2,314 2,803 2,233 5,117 4,922 Realized andunrealized loss onnon-designatedderivative (9,270 ) (21,663 ) (10,964 ) (30,933 ) (16,387 )instruments ^(5)Equity income 35,343 2,313 (6,284 ) 37,656 (67,937 )(loss) ^(6)Income taxrecovery 17,175 (3,792 ) (3,404 ) 13,383 (8,440 )(expense) ^(7)Foreign exchange (8,922 ) 6,646 (5,851 ) (2,276 ) (8,481 )(loss) gainOther loss ? net (399 ) (681 ) (11,099 ) (1,080 ) (11,071 )(8)Net income 125,500 52,002 (34,111 ) 177,502 (95,575 )(loss)Net income attributable tonon-controlling (103,777 ) (101,807 ) (5,374 ) (205,584 ) (28,167 )interestsNet income(loss) attributable tothe shareholdersof Teekay 21,723 (49,805 ) (39,485 ) (28,082 ) (123,742 )CorporationEarnings (loss)per common share of TeekayCorporation- Basic $ 0.21 $ (0.49 ) $ (0.39 ) $ (0.28 ) $ (1.23 )- Diluted $ 0.21 $ (0.49 ) $ (0.39 ) $ (0.28 ) $ (1.23 )Weighted-average number of commonshares outstanding- Basic 101,107,362 100,887,551 100,783,496 100,997,456 100,652,685 - Diluted 101,196,383 100,887,551 100,783,496 100,997,456 100,652,685

(1) Comparative balances relating to the three and six months ended June 30, 2019 have been recast to reflect results consistent with the presentation in the Companys 2019 Annual Report on Form 20-F and Form 6-K for the three and six months ended June 30, 2020.

(2) Write-down and gain (loss) on sale of assets for the three months ended June 30, 2020 includes a $13.6 million provision in the second quarter of 2020 relating to an adjustment in the Banff FPSO unit's estimated asset retirement obligation and the write-down of the unit's remaining residual value, partially offset by a gain of $3.1 million on the sale of the non-US portion of Teekay Tankers' ship-to-ship support services business and its LNG terminal management business. Write-down and gain (loss) on sale for the three months ended March 31, 2020 includes write-downs of six multi-gas carriers totaling $45.0 million and write-downs of two FPSO units totaling $46.5 million.

(3) Gain on commencement of sales-type lease for the three months ended March 31, 2020 of $44.9 million relates to the commencement of the sales-type lease for the Foinaven FPSO unit as a result of a new bareboat charter agreement.

(4) Restructuring charges for the three months ended June 30, 2020 include severance costs resulting from the expected termination of the contract for an FSO unit based in Australia, which are fully recoverable from the customer. Restructuring charges also include severance costs resulting from the reorganization and realignment of resources of the Company's shared services functions, of which a portion of the costs are recoverable from the customer, Altera. Recoverable severance costs totalling $4.5 million are presented in revenue for the three months ended June 30, 2020.

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

Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Realized losses relating toInterest rate swap (3,879 ) (2,677 ) (1,785 ) (6,556 ) (3,473 )agreementsStock purchase ? ? (25,559 ) ? (25,559 )warrants ^(i)Foreign currency ? (241 ) ? (241 ) ? forward contractsForward freight (201 ) (49 ) (29 ) (250 ) (42 )agreements (4,080 ) (2,967 ) (27,373 ) (7,047 ) (29,074 )Unrealized (losses) gains relating toInterest rate swap (5,251 ) (18,812 ) (8,195 ) (24,063 ) (14,216 )agreementsForeign currency 53 202 (101 ) 255 (101 )forward contractsStock purchase ? ? 24,584 ? 26,900 warrantsForward freight 8 (86 ) 121 (78 ) 104 agreements (5,190 ) (18,696 ) 16,409 (23,886 ) 12,687 Total realized andunrealized losses (9,270 ) (21,663 ) (10,964 ) (30,933 ) (16,387 )on derivativeinstruments

(1) Stock purchase warrants for the three and six months ended June 30, 2019 relates to the sale of the Company's remaining interest in Altera in May 2019. Also refer to footnote (6)(i) below. (6) The Companys proportionate share of items within equity income (loss) as identified in Appendix A of this release is detailed in the table below. By excluding these items from equity income (loss) as reflected in the consolidated statements of income (loss), the Company believes the resulting adjusted equity income is a normalized amount that can be used to evaluate the financial performance of the Companys equity-accounted investments. Adjusted equity income is a non-GAAP financial measure.

Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Equity income 35,343 2,313 (6,284 ) 37,656 (67,937 )(loss)Proportionate shareof unrealized losseson derivative 3,806 22,204 5,203 26,010 13,968 instrumentsLoss on sale ofinvestment in ? ? 7,853 ? 72,753 Altera ^(i)Other^ (ii) (61 ) 8,441 1,023 8,380 1,023 Equity incomeadjusted for items 39,088 32,958 7,795 72,046 19,807 in Appendix A

(i) During the three and six months ended June 30, 2019, the Company recognized a loss of $7.9 million on sale of its investment in Altera to affiliates of Brookfield Business Partners L.P. (or Brookfield), which occurred in May 2019. Also refer to footnote (5)(i) above in respect of gains and losses on stock purchase warrants.(ii) Other for the three months ended June 30, 2020 and March 31, 2020 includes credit loss provision adjustments to the Company's financial instruments upon adoption of ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13). (7) Income tax recovery (expense) for the three and six months ended June 30, 2020 includes a reduction in freight tax accruals of $16.8 million related to periods prior to 2020.

(8) Other loss net for the three and six months ended June 30, 2019 includes a $10.7 million loss relating to the repurchase of the Company's 2020 Notes.

Teekay CorporationSummary Consolidated Balance Sheets(in thousands of U.S. dollars)

As at June 30, As at March 31, As at June 30, 2020 2020 2019 (unaudited) (unaudited) (unaudited)ASSETS Cash and cash equivalents - 66,917 48,366 74,890 Teekay ParentCash and cash equivalents - 226,328 312,710 124,880 Teekay LNGCash and cash equivalents - 167,907 203,325 35,429 Teekay TankersAssets held for sale ? 50,818 12,300 Accounts receivable and other 318,726 359,705 424,735 current assetsRestricted cash - Teekay Parent 3,915 3,569 2,023 Restricted cash - Teekay LNG 66,147 113,528 80,308 Restricted cash - Teekay Tankers 8,203 6,755 5,353 Vessels and equipment - Teekay 13,964 18,791 284,840 ParentVessels and equipment - Teekay 2,931,602 2,959,067 3,320,937 LNGVessels and equipment - Teekay 1,672,976 1,676,213 1,856,766 TankersOperating lease right-of-use 81,255 91,624 185,716 assetsNet investment in direct 554,986 625,541 564,685 financing and sales-type leasesInvestments in and loans to 1,102,386 1,083,741 1,011,530 equity-accounted investmentsOther non-current assets 130,200 130,051 141,626 Total Assets 7,345,512 7,683,804 8,126,018 LIABILITIES AND EQUITY Accounts payable and other 441,857 427,640 397,111 current liabilitiesLiabilities associated with ? 2,535 ? assets held for saleShort-term debt - Teekay Tankers 10,000 55,000 15,000 Current portion of long-term ? 60,000 36,663 debt - Teekay ParentCurrent portion of long-term 366,237 398,839 468,038 debt - Teekay LNGCurrent portion of long-term 53,830 55,685 125,661 debt - Teekay TankersLong-term debt - Teekay Parent 354,065 351,594 345,768 Long-term debt - Teekay LNG 2,568,258 2,679,835 2,799,426 Long-term debt - Teekay Tankers 661,627 829,671 894,501 Operating lease liabilities 72,982 83,456 173,476 Other long-term liabilities 229,415 252,885 197,749 Equity: Non-controlling interests 2,058,273 2,085,617 2,005,399 Shareholders of Teekay 528,968 401,047 667,226 Total Liabilities and Equity 7,345,512 7,683,804 8,126,018 Net debt - Teekay Parent ^(1) 283,233 359,659 305,518 Net debt - Teekay LNG ^(1) 2,642,020 2,652,436 3,062,276 Net debt - Teekay Tankers ^(1) 549,347 730,276 994,380

(1) Net debt is a non-GAAP financial measure and represents short-term debt, current portion of long-term debt and long-term debt, less cash and cash equivalents, and, if applicable, restricted cash.

Teekay CorporationSummary Consolidated Statements of Cash Flows(in thousands of U.S. dollars)

Six Months Ended June 30, 2020 2019 (unaudited) (unaudited)Cash, cash equivalents and restricted cash provided by (used for)OPERATING ACTIVITIES Net income (loss) 177,502 (95,575 )Non-cash and non-operating items: Depreciation and amortization 135,853 145,956 Unrealized loss on derivative instruments 27,544 14,933 Write-down and (gain) loss on sale 105,275 3,328 Gain on commencement of sales-type lease (44,943 ) ? Equity (income) loss, net of dividends received (22,804 ) 85,211 Foreign currency exchange (gain) loss and other (7,250 ) 34,744 Direct financing lease payments received 334,146 6,050 Change in operating assets and liabilities 75,978 18,427 Expenditures for dry docking (5,608 ) (34,150 )Net operating cash flow 775,693 178,924 FINANCING ACTIVITIES Proceeds from issuance of long-term debt, net of 931,871 376,658 issuance costsPrepayments of long-term debt (1,302,389 ) (759,401 )Scheduled repayments of long-term debt (240,355 ) (117,110 )Proceeds from short-term debt 205,000 65,000 Prepayment of short-term debt (245,000 ) (50,000 )Proceeds from financing related to sales-leaseback of ? 222,400 vesselsRepayments of obligations related to finance leases (47,162 ) (45,928 )Repurchase of Teekay LNG common units (15,635 ) (12,056 )Distributions paid from subsidiaries to (35,519 ) (30,465 )non-controlling interestsCash dividends paid ? (5,523 )Other financing activities (794 ) (580 )Net financing cash flow (749,983 ) (357,005 ) INVESTING ACTIVITIES Expenditures for vessels and equipment (12,824 ) (89,120 )Proceeds from sale of vessels and equipment 60,915 ? Proceeds from sale of assets, net of cash sold 12,221 100,000 Loan repayment by joint venture 3,500 ? Proceeds from sale of equity-accounted investments and ? ? related assetsInvestment in equity-accounted investments ? (15,555 )Other investing activities (6,430 ) ? Net investing cash flow 57,382 (4,675 ) Increase (decrease) in cash, cash equivalents and 83,092 (182,756 )restricted cashCash, cash equivalents and restricted cash, beginning 456,325 505,639 of the periodCash, cash equivalents and restricted cash, end of the 539,417 322,883 period

Teekay CorporationAppendix A - Reconciliation of Non-GAAP Financial MeasuresAdjusted Net Income (Loss)(in thousands of U.S. dollars, except per share data)

Three Months Ended Six Months Ended June 30, March 31, June 30, 2020 2020 2020 (unaudited) (unaudited) (unaudited) $ Per $ Per $ Per $ Share^ $ Share^ $ Share^ (1) (1) (1)Net income ? GAAP 125,500 52,002 177,502 basisAdjust for: Net income attributable tonon-controlling (103,777 ) (101,807 ) (205,584 ) interestsNet income (loss) attributable toshareholders of Teekay 21,723 0.21 (49,805 ) (0.49 ) (28,082 ) (0.28 )Add (subtract)specific items affecting net lossUnrealized losses(gains) from derivativeinstruments^(2) 8,995 0.09 40,900 0.41 49,895 0.49 Foreign exchange 7,492 0.07 (8,463 ) (0.08 ) (971 ) (0.01 )losses (gains)^(3)Banff FPSOdecommissioning costs, net ofrecoveries^(4) 5,854 0.06 ? ? 5,854 0.06 Write-down and (gain) loss on saleof vessels and otherassets^(5) 10,669 0.11 94,606 0.94 105,275 1.04

Gain on commencementof sales-type lease^ ? ? (44,943 ) (0.45 ) (44,943 ) (0.44 )(6)Restructuring charges, 112 ? 1,188 0.01 1,300 0.01 net of recoveriesOther^(7) (17,598 ) (0.17 ) 8,230 0.08 (9,368 ) (0.09 )Non-controllinginterests? share of 2,466 0.02 (16,454 ) (0.16 ) (13,988 ) (0.14 )items above^(8)Total adjustments 17,990 0.18 75,064 0.75 93,054 0.92 Adjusted net income attributable toshareholders of Teekay 39,713 0.39 25,259 0.25 64,972 0.64

(1) Basic per share amounts.

(2) Reflects unrealized losses (gains) relating to the change in the mark-to-market value of derivative instruments that are not designated in qualifying hedging relationships for accounting purposes, including those losses (gains) included in the Company's proportionate share of equity income (loss) from joint ventures.

(3) Foreign currency exchange losses (gains) primarily relate to the Companys debt denominated in Euros and Norwegian Kroner (NOK) and unrealized losses on cross currency swaps used to economically hedge the principal and interest on NOK bonds.

(4) In the first quarter of 2020, CNR International (U.K.) Limited (or CNR) provided formal notice to the Company of its intention to decommission the Banff field and remove the Banff FPSO and the Apollo Spirit FSO from the field in June 2020. The oil production under the existing contract for the Banff FPSO unit ceased in June 2020, and the Company has commenced decommissioning activities during the second quarter of 2020.

(5) Refer to footnote (2) of the Consolidated Statements of Income (Loss) for additional information.

(6) Gain on commencement of sales-type lease for the three months ended March 31, 2020 relates to the commencement of the sales-type lease for the Foinaven FPSO unit as a result of a new bareboat charter agreement.

(7) Other for the three and six months ended June 30, 2020 includes a reduction in freight tax accruals and credit loss provision adjustments to the Company's financial instruments upon adoption of ASU 2016-13.

(8) Items affecting net income include items from the Companys consolidated non-wholly-owned subsidiaries. The specific items affecting net income are analyzed to determine whether any of the amounts originated from a consolidated non-wholly-owned subsidiary. Each amount that originates from a consolidated non-wholly-owned subsidiary is multiplied by the non-controlling interests percentage share in this subsidiary to determine the non-controlling interests share of the amount. The amount identified as Non-controlling interests share of items above in the table above is the cumulative amount of the non-controlling interests proportionate share of items listed in the table.

Teekay Corporation

Appendix A - Reconciliation of Non-GAAP Financial MeasuresAdjusted Net Income (Loss)(in thousands of U.S. dollars, except per share data)

Three Months Ended Six Months Ended June 30, June 30, 2019 2019 (unaudited) (unaudited) $ Per $ Per $ Share^ $ Share^ (1) (1)Net loss ? GAAP basis (34,111 ) (95,575 ) Adjust for: Net income attributable to non-controlling interests (5,374 ) (28,167 ) Net loss attributable to shareholders of Teekay (39,485 ) (0.39 ) (123,742 ) (1.23 )Add (subtract) specific items affecting net lossUnrealized (gains) losses from derivative (11,206 ) (0.11 ) 1,282 0.01 instruments ^(2)Foreign exchange losses ^(3) 4,764 0.05 5,960 0.06 Write-down and loss on sale of vessels and other assets^ (4) 7,853 0.08 76,081 0.76

Restructuring charges, net of recoveries 1,369 0.01 3,527 0.04 Other ^(5) 37,329 0.37 39,327 0.39 Non-controlling interests? share of items (13,992 ) (0.14 ) (28,758 ) (0.29 )above ^(6)Total adjustments 26,117 0.26 97,419 0.97 Adjusted net loss attributable to shareholders of Teekay (13,368 ) (0.13 ) (26,323 ) (0.26 )

(1) Basic per share amounts.

(2) Reflects unrealized (gains) losses relating to the change in the mark-to-market value of derivative instruments that are not designated in qualifying hedging relationships for accounting purposes, including those (gains) losses included in the Company's proportionate share of equity income (loss) from joint ventures.

(3) Foreign currency exchange losses primarily relate to the Companys debt denominated in Euros and Norwegian Kroner (NOK) and unrealized losses on cross currency swaps used to economically hedge the principal and interest on NOK bonds.

(4) Refer to footnote (2) of the Summary Consolidated Statements of Income (Loss) for additional information.

(5) Other for the three and six months ended June 30, 2019 includes the realized loss on sale of stock purchase warrants in Altera and a loss on the repurchase of 2020 Notes. Other for the six months ended June 30, 2019 also includes the loan extinguishment costs related to Teekay LNG's refinancing of one of its debt facilities.

(6) Items affecting net loss include items from the Companys consolidated non-wholly-owned subsidiaries. The specific items affecting net loss are analyzed to determine whether any of the amounts originated from a consolidated non-wholly-owned subsidiary. Each amount that originates from a consolidated non-wholly-owned subsidiary is multiplied by the non-controlling interests percentage share in this subsidiary to determine the non-controlling interests share of the amount. The amount identified as Non-controlling interests share of items above in the table above is the cumulative amount of the non-controlling interests proportionate share of items listed in the table.

Teekay CorporationAppendix B - Supplemental Financial InformationSummary Statement of Income for the Three Months Ended June30, 2020(in thousands of U.S. dollars)(unaudited)

Teekay Teekay Teekay Consolidation Total LNG Tankers Parent Adjustments^ (1) Revenues 148,205 246,492 88,108 ? 482,805 Voyage expenses (5,329 ) (61,558 ) (9 ) ? (66,896 )Vessel operating (28,407 ) (46,218 ) (73,171 ) ? (147,796 )expensesTime-charter hire (5,368 ) (9,296 ) (3,050 ) ? (17,714 )expenseDepreciation and (31,629 ) (29,546 ) (1,761 ) ? (62,936 )amortizationGeneral and (7,883 ) (9,784 ) (6,001 ) ? (23,668 )administrative expensesWrite-down and gain on ? 2,896 (13,565 ) ? (10,669 )saleGain on commencement of ? ? ? ? ? sales-type leaseRestructuring charges ? (4,622 ) ? (4,622 ) Income (loss) from 69,589 92,986 (14,071 ) ? 148,504 vessel operations Interest expense (35,143 ) (13,492 ) (10,667 ) 57 (59,245 )Interest income 1,697 567 107 (57 ) 2,314 Realized and unrealized loss onnon-designated (8,516 ) (589 ) (165 ) ? (9,270 )derivative instrumentsEquity income 32,155 3,188 ? ? 35,343 Equity in earnings of ? ? 43,704 (43,704 ) ? subsidiaries ^(2)Income tax recovery 1,804 14,598 773 ? 17,175 Foreign exchange (loss) (11,624 ) (87 ) 2,789 ? (8,922 )gainOther (loss) income ? (679 ) 1,027 (747 ) ? (399 )netNet income 49,283 98,198 21,723 (43,704 ) 125,500 Net income attributable tonon-controlling (4,349 ) ? ? (99,428 ) (103,777 )interests ^(3)Net income attributable to shareholders/unitholders of 44,934 98,198 21,723 (143,132 ) 21,723 publicly-listed entities

(1) Consolidation Adjustments column includes adjustments which eliminate transactions between Teekay LNG, Teekay Tankers and Teekay Parent.

(2) Teekay Corporations proportionate share of the net earnings of its publicly-traded subsidiaries.

(3) Net income attributable to non-controlling interests in the Teekay LNG column represents the joint venture partners share of the net income of its respective consolidated joint ventures. Net income attributable to non-controlling interest in the Consolidation Adjustments column represents the publics share of the net income of Teekays publicly-traded consolidated subsidiaries.

Teekay CorporationAppendix C - Supplemental Financial InformationTeekay Parent Summary Operating ResultsFor the Three Months Ended June30, 2020(in thousands of U.S. dollars)(unaudited)

Teekay Corporate Parent FPSOs Other^(1) G&A Total Revenues 28,787 59,321 ? 88,108 Voyage expenses (9 ) ? ? (9 )Vessel operating expenses (24,404 ) (48,767 ) ? (73,171 )Time-charter hire expense (20 ) (3,030 ) ? (3,050 )Depreciation and amortization (1,761 ) ? ? (1,761 )General and administrative expenses (578 ) ? (5,423 ) (6,001 )Write-down of vessels ^(2) (13,565 ) ? ? (13,565 )Restructuring charges 10 (4,632 ) ? (4,622 )(Loss) income from vessel operations (11,540 ) 2,892 (5,423 ) (14,071 ) Depreciation and amortization 1,761 ? ? 1,761 Amortization of operating lease ? liabilityand other (1,536 ) 596 (940 )Write-down of vessels ^(2) 13,565 ? ? 13,565 Daughter Entities distributions^ (3) ? ? 9,401 9,401 Teekay Parent adjusted EBITDA 2,250 3,488 3,978 9,716

(1) Includes the results of one chartered-in FSO unit owned by Altera, which is largely on a flow-through basis with Teekay Parent earning a small margin.

(2) Write-down of vessels for the three months ended June 30, 2020 relates to write-down of the remaining residual value of the Banff FPSO unit and an adjustment to the unit's estimated asset retirement obligation. In the first quarter of 2020, CNR provided formal notice to Teekay of its intention to cease production in June 2020 and decommission the Banff field shortly thereafter. As such, the Company expects to remove the Banff FPSO and Apollo Spirit FSO from the Banff field in 2020 and the subsea equipment in 2021. The Company expects to recycle the FPSO unit and subsea equipment and redeliver the FSO unit to its owner following removal from the field.

(3) In addition to the adjusted EBITDA generated by its directly owned and chartered-in assets, Teekay Parent also receives cash distributions from its consolidated publicly-traded subsidiary, Teekay LNG. For the three months ended June30, 2020, Teekay Parent received cash distributions of $9.4 million from Teekay LNG, including those made with respect to its general partner interests in Teekay LNG. Distributions received for a given quarter consist of the amount of distributions relating to such quarter but received by Teekay Parent in the following quarter. Please refer to Appendix D of this release for further details.

Teekay CorporationAppendix D - Reconciliation of Non-GAAP Financial MeasuresTeekay Parent Free Cash Flow(in thousands of U.S. dollars, except share and per share data)

Three Months Ended June 30, March 31, June 30, 2020 2020 2019 (unaudited) (unaudited) (unaudited)Daughter Entities distributions to Teekay Parent ^(1)Teekay LNG Limited Partner interests ^(2) 8,990 6,302 4,790 GP interests 411 389 304 Total Daughter Entity Distributions to 9,401 6,691 5,094 Teekay Parent FPSOs 2,250 (1,448 ) (99 )Other income and corporate general and administrative expensesOther Income 3,488 2,021 1,251 Corporate general and administrative (5,423 ) (2,125 ) (2,819 )expenses^ (3)TEEKAY PARENT ADJUSTED EBITDA ^(4) 9,716 5,139 3,427 Net interest expense ^(5) (8,675 ) (8,577 ) (9,854 )Asset retirement costs incurred^ (6) (2,927 ) ? ? Upfront lease payment received in excess of ? 56,127 ? revenue recognized^ (7)TOTAL TEEKAY PARENT FREE CASH FLOW (1,886 ) 52,689 (6,427 ) Weighted-average number of common shares - 101,107,362 100,887,551 100,783,496Basic

(1) Daughter Entities dividends and distributions for a given quarter consist of the amount of dividends and distributions relating to such quarter but received by Teekay Parent in the following quarter.

(2) Common unit distribution cash flows to Teekay Parent are based on Teekay Parents ownership on the ex-dividend date for its publicly-traded subsidiary Teekay LNG for the periods as follows:

Three Months Ended June 30, March 31, June 30, 2020 2020 2019 (unaudited) (unaudited) (unaudited)Teekay LNG Distribution per common unit $ 0.25 $ 0.25 $ 0.19 Common units owned by Teekay Parent 35,958,274 25,208,274 25,208,274 Total distribution $ 8,989,569 $ 6,302,069 $ 4,789,572

(3) Increase in corporate general and administrative expenses for the three months ended June 30, 2020 relates primarily to a change in timing of annual equity-based compensation grants in 2020 and professional fees associated with the IDR transaction completed in May 2020.

(4) Please refer to Appendices C and E for additional financial information on Teekay Parents adjusted EBITDA.

(5) Please see Appendix E to this release for a description of this measure and a reconciliation of this non-GAAP financial measure as used in this release to interest expense net of interest income, the most directly comparable GAAP financial measure.

(6) Relates to decommissioning activities for the Banff FPSO, which have been accrued on the balance sheet as an asset retirement obligation. Please see Appendix C footnote (2) for additional information.

(7) Upfront lease payment relates to cash received in early April 2020 in excess of revenue recognized in the three months ended March 31, 2020, as a result of a new bareboat charter agreement relating to the Foinaven FPSO unit. Please refer to Summary Consolidated Statements of Income (Loss) for additional information.

Teekay CorporationNon-GAAP Financial Reconciliations

Teekay CorporationAppendix E - Reconciliation of Non-GAAP Financial MeasuresAdjusted EBITDA - Consolidated(in thousands of U.S. dollars)

Three Months Ended June 30, March 31, June 30, 2020 2020 2019 (unaudited) (unaudited) (unaudited)Net income (loss) 125,500 52,002 (34,111 )Depreciation and amortization 62,936 72,917 73,849 Interest expense, net of interest income 56,931 59,717 67,972 Income tax (recovery) expense (17,175 ) 3,792 3,404 EBITDA 228,192 188,428 111,114 Specific income statement items affecting EBITDA:Write-down and (gain) loss on sale of 10,669 94,606 ? assetsGain on commencement of sales-type lease ? (44,943 ) ? Adjustments for direct financing and 2,452 2,963 2,782 sales-type lease to a cash basis and otherRealized and unrealized losses on 9,270 21,663 10,964 derivative instrumentsRealized loss from the settlements of (200 ) (49 ) ? non-designated derivative instrumentsEquity (income) loss (35,343 ) (2,313 ) 6,284 Foreign currency exchange loss (gain) 8,922 (6,646 ) 5,851 Other expense - net 399 681 11,099 Consolidated Adjusted EBITDA 224,361 254,390 148,094 Adjusted EBITDA from equity-accounted 91,508 87,808 48,515 vessels (See Appendix E)Total Adjusted EBITDA 315,869 342,198 196,609

Teekay CorporationAppendix E - Reconciliation of Non-GAAP Financial MeasuresAdjusted EBITDA Equity-Accounted Vessels(in thousands of U.S. dollars)

Three Months Ended June 30, 2020 March 31, 2020 June 30, 2019 (unaudited) (unaudited) (unaudited) At Company's At Company's At Company's 100% Portion^ 100% Portion^ 100% Portion^ (1) (1) (1)Revenues 266,539 115,422 260,488 113,054 174,382 74,266 Vessel and otheroperating (74,233 ) (32,468 ) (74,396 ) (33,336 ) (69,135 ) (30,565 )expensesDepreciation and (26,075 ) (13,006 ) (26,564 ) (13,441 ) (29,459 ) (14,195 )amortizationIncome fromvesseloperations of 166,231 69,948 159,528 66,277 75,788 29,506 equity-accountedvessels Net interest (73,310 ) (29,465 ) (76,359 ) (30,644 ) (53,356 ) (21,467 )expenseIncome taxrecovery 225 110 (598 ) (299 ) (670 ) (246 )(expense)Other itemsincluding realized andunrealized loss on derivativeinstruments ^(2) (17,786 ) (5,250 ) (102,926 ) (33,021 ) (18,764 ) (6,224 )Loss on sale of equity-accountedinvestments ^(3) ? ? (7,853 )Net income(loss) / equityincome (loss) of 75,360 35,343 (20,355 ) 2,313 2,998 (6,284 )equity-accountedvessels Net income(loss) / equity income (loss)ofequity-accounted 75,360 35,343 (20,355 ) 2,313 2,998 (6,284 )vesselsDepreciation and 26,075 13,006 26,564 13,441 29,459 14,195 amortizationNet interest 73,310 29,465 76,359 30,644 53,356 21,467 expenseIncome tax(recovery) (225 ) (110 ) 598 299 670 246 expenseEBITDA 174,520 77,704 83,166 46,697 86,483 29,624 Specific income statement items affecting EBITDA:Adjustments fordirect financingand sales-type 26,381 9,499 24,976 9,025 16,131 5,759 lease to a cashbasisAmortization ofin-process (1,738 ) (945 ) (1,718 ) (935 ) (1,736 ) (945 )contracts andotherOther itemsincludingrealized and 17,786 5,250 102,927 33,021 18,764 6,224 unrealized losson derivativeinstruments^(2)Loss on sale ofequity-accounted ? ? ? ? ? 7,853 investments ^(3)Adjusted EBITDAfrom 216,949 91,508 209,351 87,808 119,642 48,515 equity-accountedvessels ^(4)

(1) The Companys proportionate share of its equity-accounted vessels and other investments ranged from 20% to 52%.

(2) For the three months ended June 30 and March 31, 2020, includes unrealized credit losses recorded upon the adoption of ASU 2016-13.

(3) For the three months ended June 30, 2019, includes a loss on sale of the Company's investment in Altera.

(4) Adjusted EBITDA from equity-accounted vessels represents the Companys proportionate share of adjusted EBITDA from its equity-accounted vessels and other investments.

Teekay CorporationAppendix E - Reconciliation of Non-GAAP Financial MeasuresTotal Adjusted Revenues(in thousands of U.S. dollars)

Three Months Ended June 30, March 31, June 30, 2020 2020 2019 ^(1) (unaudited) (unaudited) (unaudited)Revenues 482,805 574,054 462,397 Proportionate share of revenues from equity-accounted joint ventures 115,422 113,054 74,266 Less proportionate share of voyage revenues earneddirectly from equity-accounted joint (5,569 ) (5,755 ) (4,525 )venturesTotal adjusted revenues 592,658 681,353 532,138

(1) Comparative balances relating to the three months ended June 30, 2019 have been recast to reflect results consistent with the presentation in the Companys 2019 Annual Report on Form 20-F and Form 6-K for the three and six months ended June 30, 2020.

Teekay CorporationAppendix E - Reconciliation of Non-GAAP Financial MeasuresAdjusted EBITDA - Teekay Parent(in thousands of U.S. dollars)

Three Months Ended March 31, 2020 (unaudited) Teekay Corporate Parent FPSOs Other G&A Total Teekay Parent (loss) income from (12,268 ) 1,425 (2,125 ) (12,968 )vessel operationsWrite-down of vessels 46,519 ? ? 46,519 Gain on commencement of sales-type (44,943 ) ? ? (44,943 )leaseDepreciation and amortization 10,646 ? ? 10,646 Amortization of in-process revenue (1,402 ) 596 ? (806 )contracts and otherDaughter Entities distributions ? ? 6,691 6,691 Adjusted EBITDA ? Teekay Parent (1,448 ) 2,021 4,566 5,139

Three Months Ended June 30, 2019 (unaudited) Teekay Corporate Parent FPSOs Other G&A Total Teekay Parent (loss) income from vessel (5,987 ) 541 (2,819 ) (8,265 )operationsDepreciation and amortization 7,811 42 ? 7,853 Amortization of in-process revenue (1,923 ) 668 ? (1,255 )contracts and otherDaughter Entities distributions ? ? 5,094 5,094 Adjusted EBITDA ? Teekay Parent (99 ) 1,251 2,275 3,427

Teekay CorporationAppendix E - Reconciliation of Non-GAAP Financial MeasuresNet Interest Expense - Teekay Parent(in thousands of U.S. dollars)

Three Months Ended June 30, March 31, June 30, 2020 2020 2019 (unaudited) (unaudited) (unaudited)Interest expense (59,245 ) (62,520 ) (70,205 )Interest income 2,314 2,803 2,233 Interest expense net of interest income (56,931 ) (59,717 ) (67,972 )consolidatedLess: Non-Teekay Parent interest (46,371 ) (49,213 ) (56,444 )expense net of interest incomeInterest expense net of interest income (10,560 ) (10,504 ) (11,528 )- Teekay ParentTeekay Parent non-cash accretion and 2,191 2,215 1,896 loan cost amortizationTeekay Parent realized losses on (306 ) (288 ) (222 )interest rate swapsNet interest expense - Teekay Parent (8,675 ) (8,577 ) (9,854 )

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 managements current views with respect to certain future events and performance, including statements, among other things, regarding: the impact of COVID-19 and related global events on the Companys business and financial results; the Company's ability to complete remaining crew changes and anticipated timing thereof; the Company's results for the third quarter of 2020; the future outlook for the tanker market; Teekay Tankers future free cash flow breakevens for its spot fleet; the timing on the Banff FPSO unit leaving its field and undergoing green recycling and the timing and costs associated with the remediation of the Banff fields subsea infrastructure and the Banff FPSO unit's decommissioning and recycling; the Company's liquidity and the Teekay Groups positioning for both near-term market volatility and to create long-term shareholder value and the ability in the longer-term to shape the future of marine energy transportation; the Companys strategic priorities and anticipated delevering of the Teekay Groups balance sheets and simplification of its structure; expected timing for completing the Companys new and refinanced debt facilities and the ability of the Company to use proceeds from new debt facilities to repay its existing facilities in full; and Teekay Tankers continued operation of its oil ship-to-ship transfer support services in North America and the Caribbean and the synergies of that business with Teekay Tankers core Full Service Lightering business. 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: market or counterparty reaction to changes in exploration, production and storage of offshore oil and gas, either generally or in particular regions that would impact expected future growth; changes in the demand for oil, refined products, LNG or LPG; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of vessel newbuilding orders and deliveries and greater or less than anticipated rates of vessel scrapping; changes in global oil prices or tanker rates; OPEC+ and non-OPEC production and supply levels; oil contango levels; the duration and extent of the COVID-19 pandemic and any resulting effects on the markets in which the Company operates; the impact of the pandemic on the Companys ability to maintain safe and efficient operations; issues with vessel operations; higher than expected costs and expenses, off-hire days or dry-docking requirements; higher than expected costs and/or delays associated with the remediation of the Banff field or the decommission/recycling of the Banff FPSO unit; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; the effects of IMO 2020 and IMO 2030; the potential for early termination of long-term contracts of existing vessels; delays in the commencement of charter or other contracts, including potential further delays to the commencement of commercial operations of the regasification terminal in Bahrain; changes in borrowing costs or equity valuations; declaration by Teekay LNGs board of directors of common unit distributions; available cash to reduce financial leverage at Teekay Parent, Teekay LNG and Teekay Tankers; the impact of geopolitical tensions and changes in global economic conditions; and other factors discussed in Teekays filings from time to time with the SEC, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2019. Teekay 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 Teekays expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.