The first quarter of 2020 marked the second consecutive quarterly adjusted profit for Teekay as we recorded consolidated adjusted net income of $25 million or $0.25 per share compared to an adjusted net loss of $13 million or $0.13 per share in the same period last year.
We also generated total adjusted EBITDA of $342 million, an increase of $128 million or 59% from the same period in the prior year.
As a reminder, the Q1 2019 results included the contribution from the 14% ownership stake in Altera Infrastructure, formerly Teekay Offshore, which was sold in May 2019.
It is also important to note that these figures only include $11 million of the $67 million upfront payment received for the Foinaven FPSO contract we entered into in late March.
Teekay Parent generated positive adjusted EBITDA of $5 million, which includes EBITDA from our directly owned assets and cash distributions from our publicly traded daughter entities.
However, based on US GAAP and our definition of the adjusted EBITDA, only $11 million of the $67 million upfront payment from the new Foinaven FPSO contract was included in our Q1 revenues.
However, the remaining $56 million has been included in Teekay Parent's free cash flow.
As a result, Teekay Parent's free cash flow increased to $53 million, a significant improvement from negative $14 million in the same period of the prior year.
The increase was also a result of lower interest expense due to bond repurchases over the past year and our bond refinancing completed in May 2019; a 32% increase in Teekay LNG's quarterly cash distribution; and lower G&A expenses.
Since reporting back in February, we have been busy executing on our strategic priorities, which included the new bareboat contract for the Foinaven FPSO that covers the vessel all the way through to its eventual retirement and the monetization of our TGP incentive distribution rights or IDRs in exchange for 10.75 million newly issued TGP common units.
We eliminated the TGP IDRs in exchange for 10.75 million newly issued TGP common units, which we believe is beneficial to both parties.
The transaction also increases our economic interest in TGP from 34% to approximately 42%, including our GP stake, and increases Teekay Parent's free cash flows by almost $11 million per annum based on the current TGP distribution level.
In late March, we secured a new up to 10 year bareboat contract on the Foinaven FPSO that effectively covers the remaining life and the eventual green recycling of the unit.
The new contract includes an upfront payment of $67 million, which was received in early April; a nominal per day fee for the contract life that effectively covers any ancillary costs; and a lump sum payment at the end of the contract term that is expected to cover any cleanup and green recycling costs of the unit.
Lastly, the Hummingbird FPSO continues to operate on its fixed rate contract and is currently producing between 7,500 barrels and 8,500 barrels per day.
Teekay LNG Partners reported record high adjusted net income during the quarter, generating total adjusted EBITDA of $188 million and adjusted net income of $52 million or $0.58 per unit, up significantly compared to the same period of the prior year as a result of a complete quarter contribution in Q1 from its fully delivered LNG fleet.
TGP has also reaffirmed its 2020 adjusted EBITDA and adjusted net income guidance, with adjusted net income expected to increase by 36% to 60% in 2020 versus 2019.
Since reporting in February, TGP has secured new time charter contracts on three 52% owned LNG carriers and is now 100% fixed in 2020 and 94% fixed in 2021, and TGP has also repaid its NOK bond this week using existing cash.
Additionally, TGP continues to execute on its balanced capital allocation strategy, which includes prioritizing balance sheet delevering for now, alongside a second consecutive year of over 30% increase in quarterly cash distributions with a 32% increase in May 2020.
As highlighted on the graph on this slide, TGP continues to delever its balance sheet and has also opportunistically bought back approximately $44 million of stock since the program was announced in December 2018 at an average price of $12.16 per unit.
With a strengthening financial foundation and deleveraging that is expected to provide financial flexibility, market-leading positions and a very compelling valuation at a 4 times PE ratio based on the midpoint of its 2020 financial guidance, we believe TGP has significant long-term value potential which benefits Teekay, given our full alignment of interest and position as the largest common unitholder.
For every $1 per unit increase in TGP's unit price, Teekay's equity interest would increase by $0.37 per share or 12% based on yesterday's closing price of $3.11 per share.
Teekay Tankers reported the highest quarterly adjusted profit, generating total adjusted EBITDA of $155 million, up from $63 million in the same period of the prior year, and adjusted net income of $110 million or $3.27 per share in the first quarter, an improvement from $15 million or $0.44 per share in the same period of the prior year.
We also expect TNK's Q2 results to be strong based on the spot rates secured so far in Q2, with 69% of Q2 Suezmax days fixed that $52,100 per day and 62% of our Q2 Aframax size vessels fixed at $33,600 per day compared to $49,100 per day and $34,500 per day in the first quarter, respectively.
TNK reduced its net debt by approximately $200 million or over 20% since the beginning of the year, and increased its total liquidity to $368 million and have subsequently continued to make meaningful progress on both fronts.
In total, TNK has now fixed up 13 vessels on fixed rate contracts totaling approximately $170 million of forward fixed rate revenues.
These new contracts also reduce TNK's free cash flow breakeven to approximately $10,500 per day, which is expected to enable TNK to create shareholder value in almost any tanker market.
We also take a long-term view on TNK's business and prospects TNK has significantly grown its net asset value, earning over $240 million of free cash flow in just two quarters, which is compelling relative to its market cap of $540 million and its net debt balance of $730 million, and it has an industry-leading 20% earnings per share yield in Q1 2020 based on its closing share price yesterday or 80% on an annualized basis.
For every $1 per unit increase in TNK's unit price, Teekay's equity interest would increase by $0.10 per share or 3% based on yesterday's closing price of $3.11 per share.
In summary, for every $1 increase in TGP and TNK's share prices, Teekay's equity interest would increase by $0.47 per share or 15% based on yesterday's closing price of $3.11 per share.
Looking at the graph on the slide, Teekay Corporation has reduced its pro forma consolidated net debt by $830 [Phonetic] million or 19% since the beginning of 2019 and reduced its pro forma net debt to EBITDA from a peak of 9 times to 4.5 times, while increasing our pro forma consolidated liquidity to over $900 million.
We have also reduced Teekay Parent's pro forma net debt by approximately $100 million or 25% since the beginning of 2019 and reduced our daughter debt guarantees to under $90 million as of March 31, which we expect will be completely eliminated by the end of 2020, while also holding a healthy pro forma liquidity position of $150 million.
For instance, our latest LNG carrier newbuildings produce about 50% less CO2 emissions per cubic meter of LNG transported.
As our industry has set itself the challenge of progressively becoming carbon-neutral by 2050, we have an enormous task ahead of us.
In closing, with our balance sheet continuing to strengthen, total pro forma liquidity of over $900 million for the Teekay Group, extensive contracted revenue from Teekay LNG and higher contracted revenue and strong spot rates to date at Teekay Tankers and with no committed growth capex or significant upcoming debt maturities, we believe that the Teekay Group is financially well-positioned for both any potential market volatility in the near term and the longer-term future of marine energy transportation.

Summary:
The first quarter of 2020 marked the second consecutive quarterly adjusted profit for Teekay as we recorded consolidated adjusted net income of $25 million or $0.25 per share compared to an adjusted net loss of $13 million or $0.13 per share in the same period last year.