TeeKay Posts Weak Q1 Results, Misses Estimates

TeeKay Posts Weak Q1 Results, Misses Estimates



May 12, 2011

TeeKay Corp (NYSE:TK) reported a Q1 loss of $0.39 per share today, wider than the expected loss for $0.32 per share. Revenues were down 11.2% year-over-year to $442.9 million, below the consensus estimate for $448.3 million.

Peter Evensen, Teekay Corporation's President and CEO commented, "During the first quarter and second quarter to date we have seen strong business development activity across all of our businesses, led by our offshore business. Based on the recent high pace of offshore project tendering and asset acquisition opportunities, we remain optimistic about the prospects of our offshore business and are actively pursuing several opportunities in the North Sea and Brazil offshore markets."

Teekay has a potential upside of 15.7% based on a current price of $33.99 and an average consensus analyst price target of $39.33.

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Oilflow Names Meyer CEO

Oilflow Names Meyer CEO

Thursday, May 12, 2011
Oilflow Solutions

Oilflow Solutions, the developer and provider of technology for heavy oil viscosity reduction, announced Thursday the appointment of Fred Meyer as Chief Executive Officer.

Meyer was previously the VP Sales and Marketing with a midsized Calgary based international service company. He has 31 years experience in the oil and gas industry, including 27 years with a major international service company which included assignments in Eastern and Western Canada as well as several assignments in Africa and South America. During this period Meyer's roles included several senior operational and sales managerial positions. Meyer brings to Oilflow Solutions valuable insight and experience within the Calgary E&P community.

Working with clients such as Husky, Canadian Natural Resources and Shell, Oilflow Solutions has developed a range of innovative and environmentally friendly products for the extraction of heavy oil.

Proflux has been boosting production from underperforming heavy oil wells across Alberta and Saskatchewan since 2008. It is also effective in extending the production life of steam-stimulated wells.

In his new position Meyer will lead the company's growth in Canada and world-wide.

"This unique and exciting technology is already delivering significant value to our customers, frequently doubling or tripling production," said Meyer. "There is huge potential for future growth of this technology in the Canadian heavy oil market."

Co-founder and previous CEO Mike Crabtree will take up a new position as President of Oilflow Solutions with specific responsibility for product development and international business.

"Fred Meyer coming on board is a major coup for Oilflow, he will bring the experience and high level contacts to take the business to the next level of growth and development in Canada, while allowing the large overseas markets to be effectively addressed," said Crabtree.

Oilflow Solutions provides its Proflux Technology products across Western Alberta from service bases in Peace River and Lloydminster, with its head office in Calgary. Oilflow Solutions' Proflux Technology products are fully recyclable and environmentally friendly.

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W&T Adds Focus Area Via Permian Acreage Buy

W&T Adds Focus Area Via Permian Acreage Buy

Thursday, May 12, 2011
W&T Offshore, Inc.

W&T Offshore, Inc. on Wednesday announced that it has completed the purchase of approximately 21,900 gross leasehold acres (21,500 net acres) in the West Texas Permian Basin from private sellers, with an effective date of January 1, 2011. The announced purchase price of $366 million is subject to customary post-effective adjustments.

At January 1, 2011, estimates of the acquired proved reserves were approximately 27 million barrel equivalents (164 Bcfe) and estimates of probable reserves were approximately 26 million barrel equivalents (154 Bcfe) (both using a 6 to 1 Mcf to barrel equivalency). The proved reserves are approximately 91% oil and natural gas liquids.

Tracy W. Krohn, Chairman and Chief Executive Officer, commented, "Through this Permian Basin oil property acquisition, combined with 9,400 net exploratory acres we recently acquired in the basin, we now have a new focus area that offers the potential for substantial longterm growth and attractive full-cycle economic returns. Additionally, the oil and liquids component of our total estimated proved reserves as of December 31, 2010 increases from 47% to 58%. Currently, the acreage acquired from this acquisition has approximately 73 wells producing about 2950 barrel of oil equivalent per day and hundreds of proved undeveloped and probable well locations that have been identified. For the balance of 2011, we have allocated between $35 million and $40 million in capital expenditures associated with planned development and expect to maintain an active drilling program with at least three rigs working in West Texas. This budgeted amount is within our total 2011 capital plan of $310 million that we announced previously. Initially we will be targeting the Spraberry, Dean, Wolfcamp and Strawn formations in the Wolfberry trend, but we believe there may be potential for production from deeper formations as well."

W&T Offshore is an independent oil and natural gas company focused primarily in the Gulf of Mexico and has recently expanded to the Permian Basin and the onshore Gulf Coast region. W&T has grown through acquisitions, exploitation and exploration, holds working interests in over 69 fields and operates a majority of its daily production.

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