April 24, 2019
HAMILTON, Bermuda, April 24, 2019 (GLOBE NEWSWIRE) — Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE: TGP), has declared a cash distribution of $0.19 per common unit for the quarter ended March 31, 2019, representing a 36 percent increase over the previous quarter’s distribution. The cash distribution is payable on May 15, 2019 to all common unitholders of record on May 7, 2019. Teekay LNG’s cash distributions are reported on Form 1099 for United States tax purposes.
In addition, the Partnership has secured a new, 3-year fixed-rate charter contract for the Magellan Spirit LNG carrier to an integrated oil and gas company commencing during the summer of 2019. Concurrently, Teekay LNG extended the in-charter of the Magellan Spirit until the summer of 2022.
“We are excited to be able to announce a significant increase in Teekay LNG’s distribution today,” commented Mark Kremin, President and Chief Executive Officer of Teekay Gas Group Ltd. “Our new annual distribution of $0.76 per unit is supported by our diverse portfolio of long-term fixed-rate LNG contracts. Importantly, our new distribution level strikes a balance between providing a meaningful increase in returns to our unitholders, while simultaneously allowing Teekay LNG to continue along its existing delevering path. Including the new, 3-year charter announced today, the Partnership’s LNG carrier fleet is approximately 97, 93 and 92 percent fixed for the remainder of this year, 2020 and 2021, respectively, which further supports Teekay LNG’s expected earnings growth and continued deleveraging profile over the next few years.”
About Teekay LNG
Teekay LNG Partners is one of the world’s largest independent owners and operators of LNG carriers, primarily providing LNG and LPG marine transportation services largely under long-term, fee-based charter contracts through its interests in 49 LNG carriers (including four newbuildings), 22 mid-size LPG carriers, seven multigas carriers and one conventional tanker. The Partnership’s interests in these vessels range from 20 to 100 percent. In addition, the Partnership owns a 30 percent interest in a regasification facility, which is currently under construction. Teekay LNG Partners was formed by Teekay Corporation (NYSE: TK) as part of its strategy to expand its operations in the LNG and LPG marine transportation sectors.
Teekay LNG Partners’ common units and preferred units trade on the New York Stock Exchange under the symbols “TGP”, “TGP PR A” and “TGP PR B”, respectively
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Forward Looking Statement
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements, among other things, regarding: the percentage of Teekay LNG’s LNG fleet which is considered to be fixed; Teekay LNG’s expected earnings growth and deleveraging; and the performance of the future charter contract for the Magellan Spirit. 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 shipyard and project construction delays, newbuilding specification changes or cost overruns; changes in production of LNG or LPG, either generally or in particular regions; changes in trading patterns or timing of start-up of new LNG liquefaction and regasification projects significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of vessel newbuilding orders and deliveries and greater or less than anticipated rates of vessel scrapping; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; the potential for early termination of long-term contracts of existing vessels in the Partnership’s fleet; higher than expected costs and expenses; the inability to secure new charters at higher rates; actual levels of quarterly distributions approved by the general partner’s Board of Directors; the inability of charterers to make future charter payments, including in respect of the Magellan Spirit charter; the inability of the Partnership to renew or replace long-term contracts on existing vessels; the Partnership’s or the Partnership’s joint ventures’ ability to secure or draw on financings for its vessels; the Partnership’s ability to repay its indebtedness to continue its deleveraging strategy; the Partnership’s ability maintain sufficient liquidity to pay its common unit distributions; and other factors discussed in Teekay LNG Partners’ filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2018. The Partnership expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.