Welcome to Teekay Corporation's 2nd Quarter 2019 Earnings Results Conference Call. During the call, all participants are in a listen only mode. Afterwards, you will be invited to participate in a question and answer session. As a reminder, this call is being recorded. Now for opening remarks and introduction, I would like to turn the call over to Mr.
Kenneth Fid, Teekay's President and Chief Executive Officer. Please go ahead, sir.
Before we begin, I'd like to direct all participants to our website at www.teekay.com, where you'll find a copy of the Q2 2019 earnings presentation. Kenneth and Vince will review this presentation during today's conference call. Please allow me to remind you that our discussion today contains forward looking statements. Actual results may differ materially from results projected by those forward looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward looking statements is contained in the Q2 2019 earnings release and earnings presentation available on our website.
I will now turn the call over to Vince to begin.
Thanks, Lee, and thank you all for joining us today for Teekay Corporation's Q2 2019 earnings conference call. I will briefly review our Q2 results before I hand over the call to Kenneth. Starting with Slide 3 of the presentation. Overall, our Q2 results came in better than expected for each of our entities. On a consolidated basis, we generated total adjusted EBITDA of $197,000,000 up $32,000,000 or 20% from the same period of the prior year.
We also reported a consolidated adjusted net loss of $13,000,000 or $0.13 per share, a significant improvement from the consolidated net loss of $22,000,000 or $0.21 per share recorded in the same period of the prior year. Our Q2 consolidated results were positively impacted by the start up of various growth projects at Teekay LNG, higher charter rates in our tanker business and on certain LNG carriers and lower G and A expenses. These increases were partially offset by lower revenues and higher costs from Teekay Parent's directly owned FPSO units as a result of some unplanned downtime and lower production and oil prices. We will discuss the results and outlook for the FPSO units in more detail later in the presentation. Teekay Parent generated positive adjusted EBITDA of over 3,000,000 dollars which includes EBITDA from our directly owned assets and cash distributions from our publicly traded daughter entities.
Our results were down compared to the Q2 of 2018, mainly as a result of lower revenues from our 3 FPSOs, as mentioned earlier, partially offset by the 36% increase in Teekay LNG's quarterly cash distribution, lower G and A expenses and lower interest expense as a result of bond repurchases completed over the past year and our recent bond refinancing. In May 2019, we completed the refinancing of our $498,000,000 2020 bond maturity with a new $250,000,000 secured bond, the proceeds from the sale of our remaining interest in Teekay Offshore and our existing liquidity. Teekay Parent's current liquidity of over 180,000,000 dollars is more than sufficient to retire the remaining $37,000,000 of outstanding January 2020 bonds. As a result of the refinancing, Teekay Parent's gross debt has decreased by $223,000,000 or 37% from last quarter, which is reducing our interest expense, the full effect of which will be reflected in our earnings and cash flows in the Q3 of 2019. For further details on our Q2 results as well as our Q3 outlook, please refer to the slides in the appendices to this presentation.
I will now turn the call over to Kenneth.
Thanks, Vince. Turning to Slide 4, Teekay Parent has been and will continue to derisk, delever and focus on maximizing value of Teekay Parent's assets. With the sales of our interest in Teekay dollars we received a total of approximately $130,000,000 in cash, which significantly improved our credit profile, reduced our portfolio exposure to the offshore segment and resulted in a number of other benefits. Specifically on the TOO sale, we believe it was an opportune time to sell as it enabled us to secure significantly better terms on our 2020 bond refinancing. Following the public launch of our secured bond offering on April 24, Brookfield approached us with an unsolicited offer to acquire our remaining in TOO, which we were able to quickly agree on a deal, which then allowed us to relaunch our bond offering to reduce the size of the new bond from $300,000,000 to $250,000,000 reduce the tenure from 5 years to 3.5 years and pushed down pricing by approximately 100 basis points.
We were able to secure a bond that was more flexible and at a lower cost, which better fits our delevering strategy. Looking ahead, from Teekay's perspective, we'll continue to focus on maximizing the value of our remaining 4 key assets. Teekay LNG and Teekay Tankers continue to execute on their respective strategies and have achieved total unitholder and shareholder returns year to date of 34.4% and 32.5%, respectively. We believe that we have strengthened both companies through various initiatives over the past couple of years. With expected cash flow increases in both companies and current valuations still being below our intrinsic values, we continue to see considerable upside in both companies, which should translate into value uplift for Teekay Corporation as well.
To illustrate this point, based on yesterday's closing share prices, if the unit and share prices of TGP and TNK increased by 10%, that would translate into a sum of the parts value uplift to Teekay of just under $0.50 per share or approximately 11% based on yesterday's closing price. I will touch on Teekay LNG and Teekay Tankers in more detail later in the presentation. With respect to the TGP incentive distribution rights, we are focused on maximizing the value of the IDRs for Teekay shareholders, while also positioning Teekay LNG for continuous success in the future. This remains a high priority for us and we intend to explore all solutions that will be beneficial to both companies. Lastly, with Teekay Parent 3 FPSOs, we continue to have dialogue on further contract extension amendments and or dispositions and are encouraged by our recent progress.
I'll touch more on the FPSOs on the next slide. In addition, we have continued to reduce our G and A expenses across the Teekay Group. This includes rightsizing our organization in light of our divestiture of Teekay Offshore and lower anticipated growth, streamlining and automating some of our core processes, reducing the size of our boards and reducing office costs. These initiatives are already having an impact at the consolidated and TK parent level with G and A down 15% 30% respectively in the Q2 compared to the same period of the prior year. Turning to Slide 5, I'll provide an update on our 3 directly owned FPSOs.
Our results during the Q2 were negatively impacted by unplanned shutdowns on 2 of our FPSO units. However, we did experience better than expected overall results during the Q2 for our FPSO units as a result of higher production and oil prices for the Banff and Hummingbird Spirit, partially offset by lower production and higher operating expenses on the Foinaven FPSO. As we indicated last quarter, the Q3 results for the Foinaven and Banff are expected to be lower as a result of scheduled planned maintenance during the summer, which is expected to also address some of the unplanned downtime we have experienced on these units during the past few quarters. As a result, we expect the 3 units to return to full production capacity in the 4th quarter, which is reflected in the rebound in forecasted cash flows for Q4. We also continue to focus on addressing the negative financial performance on the Foinaven FPSO, which has resulted in negative $19,000,000 of adjusted EBITDA in the first half of twenty nineteen and another negative $50,000,000 forecasted for Q3.
Excluding the Foinaven FPSO, the EBITDA from our other 2 FPSOs in the 3rd quarter are expected to be breakeven to positive $4,000,000 at oil prices between $60 $80 per barrel. Looking further ahead to the Q4, we expect we estimate our EBITDA for the 3 units to range between $11,000,000 to $18,000,000 at oil prices between $60 to $80 per barrel. With the Foinaven FPSO making up approximately $5,000,000 of that, which includes the Foinaven's annual incentive revenues recognized in Q4. We continue to follow our strategy of contract extensions and potential sale of any or all of our 3 FPSOs. These units are needed by our customers to continue producing on their fields.
In a relatively strong and constructive oil price environment, we believe this is the right strategy to maximize the value of these assets. I'll just briefly review our daughter entities on the next slide as I will assume most of you listened into their respective earning calls earlier. On slide 6, we have summarized Teekay LNG's recent results and highlights and the status of its growth projects. Teekay LNG Partners generated total adjusted EBITDA of $162,000,000 and adjusted net income of $34,000,000 or $0.35 per unit, up significantly during the quarter compared to the same period of the prior year as growth projects continue to deliver increasing cash flows. There's more to come as these projects and its remaining new buildings yet to be delivered are fully reflected in its financial statements throughout 2019 2020.
In June, Teekay LNG took delivery of its 3rd 50% owned ARC-seven LNG carrier newbuilding for the Yamal LNG project, which immediately commenced its 27 year charter contract. The 4th vessel is expected to deliver in a couple of weeks. Teekay LNG's fleet is 100% fixed for the next 12 months, which is expected to drive 2019 results well within the earnings and adjusted EBITDA guidance ranges. Additionally, Teekay LNG continues to execute on its balanced capital allocation strategy, which includes prioritizing balance sheet delevering for now and the quarterly cash distribution increase of 36%, which commenced in May 2019, which also opportunistic while also opportunistically repurchasing its common units below its intrinsic value. As outlined on the graph on the far right, this approach has allowed for significant delevering from a net debt to annualized adjusted EBITDA basis from 9 times at the end of Q2 of 2018 to 6.7 times at the end of our most recent quarter.
This is creating significant equity value for all Teekay LNG unitholders with more to come as Teekay LNG approaches its target leverage of around 5 to 5.5 times and which is expected to result in significantly increased financial flexibility. Lastly, since December 2018, TGP has opportunistically repurchased a total of 1,430,000 common units or 2% of the outstanding common units for a total cost of $16,900,000 representing an average purchase price of $11.86 per unit. Turning to Slide 7, Teekay Tankers reported total adjusted EBITDA of $36,000,000 up from $17,000,000 in the same period of the prior year an adjusted net loss of $12,000,000 or $0.05 per share in the Q2, an improvement from an adjusted net loss of $29,000,000 or $0.11 per share in the same period of the prior year. These improved results reflect tighter market fundamentals as Q2 2019 spot tanker rates were the highest second quarter rates since 2016. Crude tanker spot rates for the Q2, however, declined compared to the previous quarter, mainly due to seasonal factors and some near term headwinds.
This included lower OPEC oil production and heavier than normal refinery maintenance as refineries prepare for the implementation of the new IMO 2020 regulations, which we expect will continue into the early part of the Q3. Looking ahead, despite an extension of OPEC oil production cost, we continue to believe that tanker market fundamentals support a market recovery in the latter part of the year and into 2020 due to projected underlying oil demand growth and inspected expected increase in U. S. Crude oil exports, significantly higher refinery throughput ahead of IMO 2020 regulations and lower tanker fleet growth. Lastly, looking at the graph on the right, we highlight Teekay Tankers' significant operating leverage to a tanker market recovery.
If spot tanker rates are at mid cycle levels, Teekay Tankers' estimated annual free cash flow per share would be over $1 per share over the next 12 months, which is extremely attractive relative to its closing price of $1.23 Before opening the line to Q and A, I would like to finish the call today on Slide 8 with a formal save the date and I invite you all to our Investor Day at the Grand Hyatt Hotel in New York on October 2, where we will cover the strategy, financial position and market outlook for the Teekay Group. Registration starts at 8 am Eastern with presentations between 8:30 and 11:30 a. M. Eastern followed by 1 on 1 meetings. Please RSVP at the link on Slide 8 and if you would like a 1 on 1 meeting, please contact Emily Yee at emily.
Yee teekay.com. We look forward to seeing you all there. With that, operator, we're now available to take questions. Thank
you. All right. I'm showing no questions in the queue at this time.
Well, we look forward to seeing you all in October at our Investor Day and reporting back to you next quarter. Thank you for listening in today.
Thank you. Ladies and gentlemen, this concludes today's teleconference. You may now disconnect.