Teekay Tankers is among the world’s largest operators of midsize tankers. The company owns 22 Suezmax oil tankers, 14 Aframax ships, seven long-range product tankers (LR2) and 12 medium-range product tankers (MR).
In addition, Teekay Tankers owns a 50 percent interest in a VLCC and a 10 percent stake in Tanker Investments (Oslo: TIL), which specializes in lightering tankers used to transport crude oil between ships and from the shore to vessels docked offshore.
Teekay Tankers is a corporation, not a master limited partnership (MLP), and pays quarterly dividends. Late last year, the company adopted a new policy of disbursing 30 percent to 50 percent of its quarterly net income in dividends, subject to a minimum quarterly payout of $0.03 per share.
Besides paying dividends, Teekay Tankers will use its excess cash flow to pay down debt and has targeted a net debt-to-capitalization ratio of 40 percent to 45 percent this year.
The company’s progress in reducing leverage helped the firm to secure a $900 million credit facility in January at an attractive rate of LIBOR plus 200 basis points. This facility replaces two bridge loans that matured in January 2016 and a revolving credit line that comes due in late 2017, effectively pushing back several major debt repayments to 2021.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Jun. 30, 2021
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.