Teekay LNG Partners L.P.
NYSE : TGP

Teekay LNG Partners L.P.

December 18, 2008 17:45 ET

Teekay LNG Partners Provides Update on Third Quarter Financial Results

HAMILTON, BERMUDA--(Marketwire - Dec. 18, 2008) - Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) today announced that its estimated distributable cash flow(1) for the three months ended September 30, 2008 is expected to be greater than the previous quarter and will exceed the total cash distributions paid to the Partnership's LP unitholders and GP interests for the quarter. The Partnership also announced that it expects to publish its complete third quarter results in January 2009, upon finalization of the regular quarterly review by the Partnership's independent auditor, Ernst & Young LLP. The delay is due to a later than normal start to the Partnership's third quarter earnings review process as a result of committing resources to finalize the recently completed restatement of historical results.

"Teekay LNG continues to benefit from its substantial fixed-rate revenues and cash flows from strong counterparties," commented Peter Evensen, Chief Executive Officer of Teekay LNG Partners LLC. "We remain confident in our ability to generate strong cash flows going forward as demonstrated by the four percent increase in our distribution this quarter, the second such increase this year." Mr. Evensen continued, "Based on our favorable debt profile with no near-term refinancing requirements or covenant concerns, fully financed capital commitments and over $500 million in total liquidity, we believe Teekay LNG is well-positioned in the current uncertain economic and financial environment."

On November 3, 2008, the Partnership declared a cash distribution of $0.57 per unit for the quarter ended September 30, 2008, an increase of $0.02 per unit, or four percent, from the previous quarter. The cash distribution was paid on November 14, 2008 to all unitholders of record on November 7, 2008.

About Teekay LNG Partners L.P.

Teekay LNG Partners L.P. is a publicly-traded master limited partnership formed by Teekay Corporation (NYSE:TK) as part of its strategy to expand its operations in the LNG and LPG shipping sectors. Teekay LNG Partners L.P. provides LNG, LPG and crude oil marine transportation services under long-term, fixed-rate time-charter contracts with major energy and utility companies through its fleet of 15 LNG carriers, six LPG carriers and eight Suezmax class crude oil tankers. Two of the 15 LNG carriers are newbuildings scheduled for delivery to the Partnership in early 2009. Five of the six LPG carriers are newbuildings scheduled for delivery in 2009 and 2010.

Teekay LNG Partners' common units trade on the New York Stock Exchange under the symbol "TGP".

(1) Distributable cash flow is a non-GAAP financial measure used by certain investors to measure the financial performance of the Partnership and other master limited partnerships. Distributable cash flow represents net income adjusted for depreciation and amortization expense, non-controlling interest, non-cash items, estimated maintenance capital expenditures, gains and losses on vessel sales, income taxes and foreign exchange related items.

FORWARD LOOKING STATEMENTS

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 regarding: the Partnership's future growth prospects; timing of publishing its third quarter 2008 results; the Partnership's financial position in the current economic and financial environment; and the estimated distributable cash flow generated during the third quarter of 2008 and subsequent quarters. 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: changes in production of LNG or LPG, either generally or in particular regions; less than anticipated revenues or higher than anticipated costs or capital requirements; changes in trading patterns significantly affecting overall vessel tonnage requirements; 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 and inability of the Partnership to renew or replace long-term contracts; LNG and LPG project delays, shipyard production delays; the Partnership's ability to raise financing to purchase additional vessels or to pursue LNG or LPG projects; changes to the amount or proportion of revenues, expenses, or debt service costs denominated in foreign currencies; and any adjustments to the Partnership's estimated distributable cash flow for the third quarter of 2008 arising from Ernst & Young LLP's review of the Partnership's third quarter results; and other factors discussed in Teekay LNG's filings from time to time with the SEC, including its Report on Form 20-F/A for the fiscal year ended December 31, 2007. The Partnership expressly disclaims any obligation or undertaking 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.

Contact Information

  • Teekay LNG Partners L.P.
    Kent Alekson
    Investor Relations Enquiries
    (604) 609-6442
    or
    Teekay LNG Partners L.P.
    Alana Duffy
    Media Enquiries
    (604) 844-6605
    Website: www.teekaylng.com