Slides
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1 Teekay Group Second Quarter 2025 Earnings Presentation July 31, 2025
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Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements included in this release, other than statements of historical fact, are forward-looking statements. When used in this release, the words "expect", "believe", "anticipate", "plan", "intend", "estimate", "may", "will", "should" or similar words are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward- looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Forward-looking statements contained in this release include, among others, statements regarding: our expectations regarding vessel sales and acquisitions, including the occurrence and timing of vessel deliveries, the expected financial impacts of such transactions and our expected operating plans for acquired vessels; the Company's expectations regarding tanker charter-in contracts, including the timing of commencement, expiry or extensions thereof; the timing of payments of cash dividends; any future dividends; geopolitical events and the impact thereof on the global economy, the industry and tanker market, and the Company's business, including the imposition of global trade tariffs; management's view of the tanker operating and rate environments, the strength of the tanker market, and related effects on the Company and its operations; crude oil and refined product tanker market fundamentals, including expectations regarding oil supply and demand, as well as tonne-mile demand; forecasts of worldwide tanker fleet growth or contraction, vessel scrapping levels, and newbuilding tanker orders; expected full recovery from a customer of severance cost resulting from the termination of a management contract related to the Company's Australian operations; the Company's ability to benefit from its balance sheet strength and approach to fleet renewal; and the Company's liquidity and market position. 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 the Company's capital allocation plan or dividend policy; the declaration by the Company's Board of Directors of any future cash dividends on the Company's common shares; the Company's available cash and the levels of its capital needs; changes in the Company's liquidity and financial leverage; changes in the annual EBITDA levels of the Company's Australian operations; changes in tanker rates, including spot tanker market rate fluctuations, and in oil prices; changes in the production of, or demand for, oil or refined products and for tankers; changes in trading patterns affecting overall vessel tonnage requirements; non-OPEC+ and OPEC+ production and supply levels; the impact of geopolitical tensions and conflicts, and changes in global economic conditions; greater or less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; the potential for early termination of charter contracts on existing vessels in the Company's fleet; the inability of charterers to make future charter payments; the refusal or inability of a customer to make payments relating to severance costs; delays of vessel deliveries; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations and the impact of such changes; increased costs; and other factors discussed in Teekay Tankers’ filings from time to time with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2024. 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. Photo credit: Third Officer Jomar Remolagio Verbo Limerick Spirit
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• Strong cash flow generation and cash position supports TNK’s fleet renewal strategy, which includes selling older vessels, incrementally acquiring more modern tonnage over time, and being patient with larger fleet renewal opportunities o Acquired one 2017-built Suezmax, which delivered in July 2025 o Agreed to acquire remaining 50% ownership interest of the Hong Kong Spirit VLCC from our joint venture partner o Agreed to sell five vessels with an average age of 17 years old for total gross proceeds of approximately $158.5 million and estimated gains from sales of approximately $46 million • Declared a fixed quarterly dividend of $0.25 per share payable in August 2025 GAAP Net Income GAAP EPS Adj. Net Income(1) Adj. EPS(1) FCF(1) Cash(2) $62.6 million $1.81 $48.7 million $1.41 $62.8 million $712 million (1) These are non-GAAP financial measures. Please see Teekay Tankers Ltd.’s Q2-25 earnings release for definitions and reconciliations to the comparable GAAP measures. Free cash flow (FCF), please see appendix slide 15 for the definition and reconciliations. (2) Cash, cash equivalents, restricted cash, and short-term investments as of June 30, 2025. (3) Includes Aframax RSA, non-RSA voyage charters and full-service lightering (FSL) for all Aframax and LR2 vessels whether trading in the clean or dirty spot market. Currently there is one vessel trading clean. (4) Based on 1,750 Suezmax and 1,577 Aframax / LR2 spot ship days available for the full quarter ended September 30, 2025. Teekay Tankers Q2-25 Highlights Counter-seasonal strength with spot rates outperforming the last two quarters; and executing on fleet renewal plan 44,900 43,600 26,800 27,800 33,100 31,500 Suezmax Aframax / LR2 Q2-24 vs. Q2-25 Spot Rates Q2-2024 Q1-2025 Q2-2025 % days booked 31,000 35,900 31,400 28,200 Suezmax Aframax / LR2 QTD Q3-25 vs. Q3-24 Spot Rates Q3-2024 Q3-2025 To-Date 44% 42% 3 (3) (3) (4) Teekay Tankers Financials:
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4 Spot Market Update Firmer spot tanker rates in Q2-25 due to strength during the first half of the quarter Strength at the start of the quarter due to longer voyage distances and higher tonne-miles before falling in line with normal seasonality Q2 rates were lower than the cyclical highs seen in 2023 and 2024 but still well above long-term average levels 0 10 20 30 40 50 60 70 80 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '000 USD / Day 5-year range FCF Breakeven 2024 2025 0 5 10 15 20 25 30 35 40 45 50 55 ‘000 $ / Day 15-year average Source: Average of TNK Aframax and Suezmax spot earnings
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5 Tanker Market Tailwinds in 2H-2025 Low inventory levels and rising oil supply pave the way for higher tanker demand Source: IEA Oil inventories outside China are well below average levels. Periods of oil inventory building are generally positive for tanker rates Global oil supply set to accelerate in 2H-2025 due to OPEC+ supply unwind and new production from South America 98 99 100 101 102 103 104 105 106 107 108 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Mb/d (Supply / Demand) Mb/d (Stock Change) Stock Change Oil Demand (RHS) Oil Supply (RHS) 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Million Barrels 10-year range 10-year avg. 2024 2025 Source: IEA OECD Commercial Oil Stocks
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6 Tanker Demand • Global oil demand growth forecast of 0.7 mb/d in both 2025 and 2026(1) • OPEC+ in the process of unwinding supply cuts • Non-OPEC+ supply growth led by the Americas Fleet Supply • Pace of newbuild orders has fallen in 1H-2025 • Orderbook stable at 15% of the existing fleet size(2) • Average fleet age at a 25- year high of 14.0 years(2) • War in Ukraine & sanctions on Russia • Middle East unrest and sanctions on Iran • Red Sea disruption • U.S. trade tariffs and impact on economy and oil demand • USTR Section 301 fees on Chinese owned, operated, and/or built vessels • Future OPEC+ production policy Key drivers Uncertainties / Wild cards Medium-Term Outlook Balanced underlying supply and demand fundamentals, but complex geopolitical landscape (1) Source: International Energy Agency (2) Source: Clarksons. Includes VLCCs, Suezmaxes, Aframaxes, and LR2s
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7 • x (1) Free cash flow (FCF) is a non-GAAP financial measure. Please see appendix slide 15 for the definition. (2) For 12 months ending June 30, 2026, based on the current fleet and all in-charters shown on slide 11. Optional periods for in-charter options were excluded. (3) Free Cash Flow (FCF) yield is equal to annual FCF divided by TNK’s closing share price on July 30, 2025 of $44.99. • Improving shareholder value and significant FCF generation with high operating leverage in strong, but volatile, tanker market o Low fleet FCF break-even of approximately $13,000 per day(1)(2) o Generated 1H-25 FCF of $128 million o Every $5,000 increase in spot rates above TNK’s FCF break-even expected to increase annual FCF yield by 4.2%(2,3) or generate $1.89(3) of annual FCF per share • Cyclical, capital-intensive industry requires disciplined capital allocation o Generating cash flows and making small, opportunistic acquisitions to offset recent sales o Disciplined capital returns to shareholders o Remaining patient; balance sheet strength supports larger fleet renewal opportunities without significant levels of debt or dilution Strong Cash Flow Generation, Patient Fleet Replenishment Continue to build balance sheet strength in volatile sector $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 0% 5% 10% 15% 20% 25% 30% 35% 40% Annual FCF/Share Annualized FCF Yield FCF Per Share Spot Rate Sensitivity Next 12 Months (1,2,3) Average Fleet Spot Rates
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8 Q&A Photo credit: Second Officer Vadim Kernosenko Vail Spirit
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9 Appendix
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10 Teekay Corporation Q2-25 Highlights GAAP Net Income GAAP EPS Cash and Cash Equivalents(1) $18.7 million $0.22 per share $200.6 million (1) As at June 30, 2025. Includes short-term investment but excludes special dividend of $1.00 which was paid in July 2025. Photo credits: Third Officer Jomar Remolagio Verbo Limerick Spirit • In July 2025, Teekay Corporation paid the previously announced one-time cash dividend of $1.00 per common share for a total of $85.3 million
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Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Aframax/ LR2 Suezmax Q3-2025 Q4-2025 Q1-2026 Q2-2026 Q3-2026 Q4-2026 Q1-2027 Q2-2027 Q3-2027 Q4-2027 Q1-2028 Q2-2028 Optional Days 0 0 0 0 53 0 91 0 92 0 92 0 37 0 0 3 0 92 0 92 0 91 0 87 Firm Days 195 92 184 92 127 90 91 91 92 92 92 92 90 90 91 88 92 0 92 0 91 0 91 0 Avg Rate $25,437 $32,250 $24,925 $32,250 $25,514 $32,250 $25,925 $32,250 $25,925 $32,250 $25,925 $32,250 $22,910 $32,250 $18,700 $32,341 $18,700 $35,000 $18,700 $35,000 $18,700 $35,000 $18,700 $35,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 0 50 100 150 200 250 Ship Days Firm Days Optional Days 11 (1) (1) Weighted average rate for the firm and optional period hire rates Fleet In-charters
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12 (1) For the Q2-25 and Q1-25 reconciliations of non-GAAP financial measures to the most directly comparable financial measures under United States generally accepted accounting principles (GAAP), please refer to Slide 14 and the Q1-25 earnings presentation. (2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q2-25 Earnings Release for a definition and reconciliation of this term. (In thousands of U.S. dollars) Adjusted Net Income(1) Q2-25 vs. Q1-25 Statement Item Q2-2025 (unaudited) Q1-2025 (unaudited) Variance Comments Revenues 227,298 231,639 (4,341) Voyage expenses (78,638) (86,867) 8,229 Net revenues (2) 148,660 144,772 3,888 Increase primarily due to higher overall spot TCE rates and the acquisition of one tanker that was delivered in Q2-25, partially offset by the sales of six tankers during Q1-25 and Q2-25, more scheduled dry dockings in Q2-25, as well as the redelivery of one in-chartered tanker in Q1-25. Vessel operating expenses (60,499) (61,168) 669 Charter hire expenses (11,618) (14,409) 2,791 Decrease primarily due to the redelivery of one in-chartered tanker in Q1-25. Depreciation and amortization (20,944) (23,240) 2,296 Decrease primarily due to the sales of six tankers during Q1-25 and Q2-25, partially offset by the acquisition of one tanker that was delivered in Q2-25. General and administrative expenses (14,505) (9,712) (4,793) Increase primarily due to the annual recognition of equity-based compensation in Q2-25 and certain non-recurring expenditures. Write-down of assets - (786) 786 Income from operations 41,094 35,457 5,637 Interest expense (777) (773) (4) Interest income 7,568 5,857 1,711 Increase primarily due to interest income earned on higher average cash balances in Q2- 25. Equity income 659 230 429 Other (expense) income (257) 562 (819) Income tax recovery 432 470 (38) Adjusted net income 48,719 41,803 6,916
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13 (1) Changes described are after adjusting Q2-25 for items included in Appendix A of Teekay Tankers’ Q2-25 Earnings Release. See slide 14 for the reconciliation. (2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q2-25 Earnings Release for a definition and reconciliation of this term. Q3-25 Outlook Q2-25 in thousands adjusted basis(1) Q3-25 Outlook(1) Income Statement Item (expected changes from Q2-25) Net revenues (2) 148,660 Decrease of approximately 76 net revenue days, consisting of a decrease of 26 spot days and a decrease of 50 fixed days, primarily due to the sales of six tankers during Q2-25 and Q3-25, as well as the redelivery of one in-chartered tanker in Q3-25, partially offset by the acquisitions of one tanker during Q2-25 and two tankers during Q3-25. In addition, there was the redelivery of one tanker from its fixed time-charter contract in Q2-25. Refer to Slide 3 for Q3-25 booked to-date spot tanker rates. We anticipate 1,750 Suezmax and 1,577 Aframax / LR2 spot ship days available for the full quarter ended September 30, 2025. Vessel operating expenses (60,499) Decrease of approximately $2.0 million, primarily due to the sales of six tankers during Q2-25 and Q3-25, as well as the timing of planned maintenance, partially offset by the acquisitions of one tanker during Q2-25 and two tankers during Q3-25. Charter hire expenses (11,618) Decrease of approximately $2.0 million, primarily due to the redelivery of one in-chartered tanker in Q3-25. General and administrative expenses (14,505) Decrease of approximately $3.5 million, primarily due to the annual recognition of equity-based compensation in Q2-25. Income tax recovery 432 Increase of approximately $2.5 million, primarily due to vessel trading activities and the regular assessment of tax positions.
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14 Consolidated Adjusted Statement of Income Q2-25 (1) Please refer to Appendix A in Teekay Tankers Q2-25 Earnings Release for a description of Appendix A items. (2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q2-25 Earnings Release for a definition of this term. (In thousands of U.S. dollars) Statement Item As Reported Appendix A Items (1) As Adjusted Revenues 232,866 (5,568) 227,298 Voyage expenses (78,638) - (78,638) Net revenues (2) 154,228 (5,568) 148,660 Vessel operating expenses (60,499) - (60,499) Charter hire expenses (11,618) - (11,618) Depreciation and amortization (20,944) - (20,944) General and administrative expenses (14,505) - (14,505) Gain on sale of vessels 13,895 (13,895) - Restructuring charges (5,568) 5,568 - Income from operations 54,989 (13,895) 41,094 Interest expense (777) - (777) Interest income 7,568 - 7,568 Equity income 659 - 659 Other expense (257) - (257) Income tax recovery 432 - 432 Net income 62,614 (13,895) 48,719
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15 Free cash flow (FCF) represents net income, plus depreciation and amortization, loss on sale of assets, unrealized losses from derivatives and marketable securities, non-cash items, FCF from equity-accounted investments and any write-offs or other non-cash non-recurring items, less gain on sale of assets, unrealized gains from derivatives and marketable securities, other non-cash items, dry-docking expenditures and other capital expenditures. (In thousands of U.S. dollars) Reconciliation of Non-GAAP Financial Measure Free Cash Flow Three Months Ended June 30, 2025 (unaudited) Net income - GAAP basis 62,614 Add: Depreciation and amortization 20,944 Proportionate share of free cash flow from equity-accounted joint venture 1,267 Unrealized loss on marketable securities 390 Less: Gain on sale of vessels (13,895) Equity income (659) Dry-docking and capital expenditures (7,812) Free cash flow 62,849
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(1) Includes vessels scheduled for dry docking and an estimate of unscheduled off-hire. (2) In the case that a vessel dry dock & off-hire straddles between quarters, the vessel count has been allocated to the quarter in which a majority of dry-dock days occur. (3) Vessel count only reflects vessels with dry-dock related off-hire. (4) Includes 19 days during the quarter ended June 30, 2025 and an estimated 15 days during the quarter ended September 30, 2025 related to days for certain vessels that were unavailable for hire while awaiting delivery to their purchasers. Dry-dock & Off-hire Schedule(1)(2)(3) 16 Teekay Tankers March 31, 2025 (A) June 30, 2025 (A) September 30, 2025 (E) December 31, 2025 (E) Total 2025 (E) Segment Vessels Total Off-hire Days Vessels Total Off-hire Days Vessels Total Off-hire Days Vessels Total Off-hire Days Vessels Total Off-hire Days Spot Tanker 1 27 4 134 3 138 2 70 10 369 Other - Unplanned Offhire(4) - 44 - 42 - 30 - 23 - 139 1 71 4 176 3 168 2 93 10 508