Teekay LNG Partners Declares 36 Percent Increase in Common Unit Distribution and Secures New 3-Year Charter
April 24 2019 - 6:50AM
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
For Investor Relations enquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com
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.
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