Teekay LNG Partners L.P.
NYSE : TGP

Teekay LNG Partners L.P.

May 12, 2011 09:01 ET

Teekay LNG Partners Reports First Quarter Results

HAMILTON, BERMUDA--(Marketwire - May 12, 2011) - Teekay LNG Partners L.P. (NYSE:TGP) -

Highlights


--  Generated distributable cash flow of $39.1 million in the first quarter
    of 2011, an increase of 15 percent from the first quarter of 2010. 
--  Declared first quarter 2011 cash distribution of $0.63 per unit. 
--  Agreed to acquire Teekay Corporation's 33 percent interest in four LNG
    carrier newbuildings scheduled to deliver in 2011 and 2012. 
--  Partnership's total liquidity increased to approximately $600 million as
    at May 1, 2011. 

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) today reported its results for the quarter ended March 31, 2011. During the first quarter of 2011, the Partnership generated distributable cash flow(1) of $39.1 million, compared to $33.9 million in the same quarter of the previous year. The increase primarily reflects the incremental distributable cash flow resulting from a full quarter of revenue from the Partnership's acquisition of three vessels in March 2010, the Partnership's November 2010 acquisition of a 50 percent interest in two LNG carriers, and reduced off-hire days relating to scheduled drydockings.

On April 21, 2011, the Partnership declared a cash distribution of $0.63 per unit for the quarter ended March 31, 2011. The cash distribution is payable on May 13, 2011 to all unitholders of record on May 6, 2011.

"The Partnership's first quarter results reflect the stable cash flows generated by our fixed-rate contract portfolio of vessels and include a full quarter contribution from the Exmar vessel interests we acquired in November 2010," commented Peter Evensen, Chief Executive Officer of Teekay GP LLC. "We look forward to further distributable cash flow growth as the Partnership takes delivery of new gas carriers supported by long-term fixed-rate contracts in the near future, including the 33 percent interest in four Angola LNG carrier newbuildings which will begin delivering in the second half of 2011."

Mr. Evensen continued, "After a period of slower growth in the LNG sector, activity is picking up with an increasing number of projects for both traditional LNG transportation and floating storage and regasification units, or FSRUs, coming up for tender. In addition, with its substantial level of available liquidity, the Partnership will continue to evaluate opportunities to acquire high quality third party assets servicing long-term contracts, which should further drive distributable cash flow growth."

(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. Please see Appendix B for a reconciliation of this non-GAAP measure to the most directly comparable GAAP financial measure.

Teekay LNG's Fleet

The following table summarizes the Partnership's fleet as of May 1, 2011:


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                                         Number of Vessels           
                             ----------------------------------------
                             ----------------------------------------
                                 Delivered                            
                                   Vessels  Committed Vessels   Total
                             ----------------------------------------
LNG Carrier Fleet                    17 (1)              4 (2)     21
LPG/Multigas Carrier Fleet               2               3 (3)      5
Conventional Tanker Fleet               11                  -      11
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Total                                   30                  7      37
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(1) Includes a 50 percent interest in a FSRU unit.                         
(2) Represents a 33 percent interest in four Angola LNG carriers under     
construction, as described below.                                          
(3) Represents the three Skaugen LPG/Multigas carriers currently under     
construction, as described below.                                          

Future Projects

Below is a summary of LNG and LPG/Multigas newbuildings that the Partnership has agreed to acquire:

Skaugen LPG/Multigas

The Partnership has agreed to acquire one LPG carrier from a subsidiary of IM Skaugen ASA (Skaugen) and two Multigas carriers from Teekay Corporation (Teekay). The three LPG/Multigas carriers are currently under construction and are expected to be delivered in 2011. Upon delivery, the vessels will commence service under 15-year fixed-rate charters to Skaugen.

Angola LNG

A consortium in which Teekay has a one-third interest, has agreed to charter four newbuilding LNG carriers for a period of 20 years to the Angola LNG Project, which is being developed by subsidiaries of Chevron, Sonangol, BP, Total and ENI. The vessels will be chartered at fixed rates, with inflation adjustments, following their deliveries. The vessels are currently under construction and are expected to deliver during 2011 and 2012. In March 2011, the Partnership agreed to purchase Teekay Corporation's 33 percent interest in these vessels and related charter contracts concurrent with their respective deliveries.

Financial Summary

The Partnership reported adjusted net income attributable to the partners(1) (as detailed in Appendix A to this release) of $25.9 million for the quarter ended March 31, 2011, compared to $21.4 million for the same period of the prior year. Adjusted net income attributable to the partners excludes a number of specific items which had the net effect of decreasing net income by $0.9 million and increasing net income by $7.1 million for the three months ended March 31, 2011 and 2010, respectively, as detailed in Appendix A. Including these items, the Partnership reported net income attributable to the partners, on a GAAP basis, of $25.0 million and $28.5 million for the three months ended March 31, 2011 and 2010, respectively.

For accounting purposes, the Partnership is required to recognize the changes in the fair value of its derivative instruments on the consolidated statements of income. This method of accounting does not affect the Partnership's cash flows or the calculation of distributable cash flow, but results in the recognition of unrealized gains or losses on the consolidated statements of income as detailed in footnote 2 of the Summary Consolidated Statements of Income.

The Partnership's financial statements for the prior periods include historical results of vessels acquired by the Partnership from Teekay, referred to herein as the Dropdown Predecessor, for the period when these vessels were owned and operated by Teekay.

Operating Results

The following table highlights certain financial information for Teekay LNG's segments: the Liquefied Gas Segment and the Conventional Tanker Segment (please refer to the "Teekay LNG's Fleet" section of this release above and Appendix C for further details).


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                          Three Months Ended         Three Months Ended    
                     ------------------------------------------------------
                            March 31, 2011             March 31, 2010      
                     ------------------------------------------------------
                             (unaudited)                (unaudited)        
                     ------------------------------------------------------
                     ------------------------------------------------------
                                                           Convent-         
                                Convent-                     ional         
                     Liquefied    ional         Liquefied   Tanker         
(in thousands of U.S.      Gas   Tanker               Gas  Segment         
dollars)               Segment  Segment    Total  Segment       (i)   Total
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Net voyage                                                                 
 revenues(ii)           65,784   27,065   92,849   65,813   26,538   92,351
Vessel operating                                                           
 expenses               11,077    9,730   20,807   11,416    9,612   21,028
Depreciation and                                                           
 amortization           15,124    7,225   22,349   15,238    6,918   22,156
Cash flow from vessel                                                      
 operations(iii)        52,742   14,333   67,075   52,914    9,902   62,816
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(i) Cash flow from vessel operations for the Conventional Tanker segment   
only reflects the cash flows generated by the Alexander Spirit, Hamilton   
Spirit and Bermuda Spirit subsequent to their acquisition by the           
Partnership on March 17, 2010. Results for the Alexander Spirit, Hamilton  
Spirit and Bermuda Spirit for the periods prior to their acquisition by the
Partnership when they were owned and operated by Teekay are referred to as 
the Dropdown Predecessor.                                                  
(ii) Net voyage revenues represents voyage revenues less voyage expenses,  
which comprise all expenses relating to certain voyages, including bunker  
fuel expenses, port fees, canal tolls and brokerage commissions. Net voyage
revenues is a non-GAAP financial measure used by certain investors to      
measure the financial performance of shipping companies. Please see the    
Partnership's web site at www.teekaylng.com for a reconciliation of this   
non-GAAP measure as used in this release to the most directly comparable   
GAAP financial measure.                                                    
(iii) Cash flow from vessel operations represents income from vessel       
operations before (a) depreciation and amortization expense, (b) Dropdown  
Predecessor's income from vessel operations and (c) adjusting for direct   
financing leases to a cash basis. However, the Partnership's cash flow from
vessel operations does not include the Partnership's equity accounted      
investee's cash flow from vessel operations. Cash flow from vessel         
operations is included because certain investors use this data to measure a
company's financial performance. Cash flow from vessel operations is not   
required by accounting principles generally accepted in the United States  
and should not be considered as an alternative to net income or any other  
indicator of the Partnership's performance required by accounting          
principles generally accepted in the United States.                        

Liquefied Gas Segment

Cash flow from vessel operations from the Partnership's Liquefied Gas segment decreased slightly to $52.7 million in the first quarter of 2011 from $52.9 million in the same quarter of the prior year. This decrease is primarily due to the sale of the Dania Spirit LPG carrier in November 2010, partially offset by fewer off-hire days in the first quarter of 2011 relating to scheduled drydockings. Cash flow from vessel operations, as reported in the above table, does not include cash flow of $12.9 million for the three months ended March 31, 2011 from the Partnership's two equity-accounted joint ventures, RasGas 3 and Exmar.

Conventional Tanker Segment

Cash flow from vessel operations from the Partnership's Conventional Tanker segment increased to $14.3 million in the first quarter of 2011 from $9.9 million in the same quarter of the prior year. The increase is primarily due to a full quarter of operations from the two Suezmax tankers and one Handymax tanker that were acquired from Teekay late in the first quarter of 2010.

Liquidity

As of March 31, 2011, the Partnership had total liquidity of $437.6 million, comprised of $72.6 million in cash and cash equivalents and $365.0 million in undrawn credit facilities. Total liquidity increased from $437.6 million to approximately $600 million as at May 1, 2011, primarily as a result of the Partnership's recently completed equity offering, which provided net proceeds to the Partnership of approximately $161.6 million, including proceeds received upon the partial exercise of the underwriter's over-allotment option.

Availability of 2010 Annual Report

Teekay LNG Partners L.P. filed its 2010 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (SEC) on April 4, 2011, amended on April 29, 2011 to include XBRL. Copies are available on Teekay LNG's web site, under "Investor Briefcase", at www.teekaylng.com. Unitholders may request a printed copy of this annual report, including the complete audited financial statements free of charge by contacting Teekay LNG's Investor Relations.

Conference Call

The Partnership plans to host a conference call on May 13, 2011 at 11:00 a.m. (ET) to discuss the results for the first quarter of 2011. All unitholders and interested parties are invited to listen to the live conference call by choosing from the following options:


--  By dialing (866) 399-6716 or (416) 640-5933, if outside North America,
    and quoting conference ID code 7351063. 
--  By accessing the webcast, which will be available on Teekay LNG's Web
    site at www.teekaylng.com (the archive will remain on the web site for a
    period of 30 days). 

A supporting First Quarter 2011 Earnings Presentation will also be available at www.teekaylng.com in advance of the conference call start time.

The conference call will be recorded and available until Friday, May 20, 2011. This recording can be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North America, and entering access code 7351063.

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 charter contracts with major energy and utility companies through its fleet of 21 LNG carriers (including one LNG regasification unit), five LPG carriers and 11 conventional tankers. Four of the 21 LNG carriers are newbuildings scheduled for delivery in 2011 and 2012. Three of the five LPG carriers are newbuildings scheduled for delivery in 2011.

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


TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. dollars, except unit data)

                                            Three Months Ended             
                              ---------------------------------------------
                                     March 31,   December 31,      March 31,
                              ---------------------------------------------
                                         2011           2010        2010 (1)
                              ---------------------------------------------
                                   (unaudited)    (unaudited)    (unaudited)
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VOYAGE REVENUES                        93,219         97,516         92,492
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OPERATING EXPENSES                                                         
Voyage expenses                           370            685            141
Vessel operating expenses              20,807         20,545         21,028
Depreciation and amortization          22,349         22,658         22,156
General and administrative              6,326          7,566          5,392
Gain on sale of vessel                      -         (4,340)             -
Restructuring charge                        -              -             49
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                                       49,852         47,114         48,766
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Income from vessel operations          43,367         50,402         43,726
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OTHER ITEMS                                                                
Interest expense                      (11,754)       (12,217)       (12,774)
Interest income                         1,578          1,805          1,873
Realized and unrealized gain                                               
 (loss) on derivative                                                       
 instruments(2)                        10,769         27,064        (26,812)
Foreign exchange (loss)                                                    
 gain(3)                              (21,033)         7,528         23,221
Equity income(4)                        8,057         10,526          1,317
Other (expense) income - net           (1,247)        (1,435)           470
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Net income                             29,737         83,673         31,021
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Net income attributable to:                                                
 Non-controlling interest               4,757          7,301            301
 Dropdown Predecessor(1)                    -              -          2,258
 Partners                              24,980         76,372         28,462
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Limited partners' units                                                    
 outstanding:                                                               
Weighted-average number of                                                 
 common units outstanding          55,106,100     54,705,598     44,972,563
 - Basic and diluted                                                        
Weighted-average number of                                                 
 subordinated units outstanding             -              -      7,367,286
 - Basic and diluted                                                        
Weighted-average number of                                                 
 total units outstanding           55,106,100     54,705,598     52,339,849
 - Basic and diluted                                                        
Total number of units                                                      
 outstanding at end of period      55,106,100     55,106,100     52,339,849
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(1) Results for the Alexander Spirit, Hamilton Spirit and Bermuda Spirit
for the periods prior to their acquisition in March 2010 by the Partnership
when they were owned and operated by Teekay Corporation are referred to as
the Dropdown Predecessor.  
(2) The realized losses relate to the amounts the Partnership actually paid
to settle such derivative instruments and the unrealized gains (losses)
relate to the change in fair value of such derivative instruments as
detailed in the table below. 


                                                  Three Months Ended       
                                          ---------------------------------
                                             March 31,  December   March 31,
                                                 2011   31, 2010       2010
                                          ---------------------------------
Realized losses relating to:                                               
Interest rate swaps                           (10,237)   (10,394)   (11,214)
Toledo Spirit time-charter derivative                                      
 contract                                           -     (1,919)         -
                                          ---------------------------------
                                              (10,237)   (12,313)   (11,214)
                                          ---------------------------------
Unrealized gains (losses) relating to:                                     
Interest rate swaps                            19,806     37,277    (15,398)
Toledo Spirit time-charter derivative                                      
 contract                                       1,200      2,100       (200)
                                          ---------------------------------
                                               21,006     39,377    (15,598)
                                          ---------------------------------
Total realized and unrealized gains                                        
 (losses) on derivative instruments            10,769     27,064    (26,812)
                                          ---------------------------------
                                          ---------------------------------

(3) For accounting purposes, the Partnership is required to revalue all
foreign currency-denominated monetary assets and liabilities based on the
prevailing exchange rate at the end of each reporting period. This
revaluation does not affect the Partnership's cash flows or the calculation
of distributable cash flow, but results in the recognition of unrealized
foreign currency translation gains or losses in the consolidated statements
of income. 
(4) Equity income includes unrealized gains (losses) on derivative
instruments of $2.6 million, $6.4 million and $(2.2) million for the three
months ended March 31, 2011, December 31, 2010 and March 31, 2010,
respectively. 


TEEKAY LNG PARTNERS L.P. 
SUMMARY CONSOLIDATED BALANCE SHEETS (1) 
(in thousands of U.S. dollars)

                                                                      As at
                                                  As at March      December
                                                     31, 2011      31, 2010
                                                 --------------------------
                                                    unaudited     unaudited
                                                 --------------------------
ASSETS                                                                     
Cash and cash equivalents                              72,612        81,055
Restricted cash - current                              88,443        82,576
Other current assets                                   23,448        25,273
Advances to affiliates                                  7,238         6,133
Restricted cash - long-term                           493,483       489,562
Vessels and equipment                               1,922,164     1,940,041
Advances on newbuilding contracts                      80,933        79,535
Net investments in direct financing leases            414,327       415,695
Derivative assets                                      50,688        62,283
Investments in joint ventures                         180,868       172,898
Other assets                                           32,389        33,167
Intangible assets                                     121,263       123,546
Goodwill                                               35,631        35,631
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Total Assets                                        3,523,487     3,547,395
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LIABILITIES AND EQUITY                                                     
Accounts payable, accrued liabilities and                                  
 unearned revenue                                      53,594        56,971
Current portion of long-term debt and capital                              
 leases                                               557,567       343,790
Advances from affiliates and joint venture                                 
 partners                                             132,210       133,410
Long-term debt and capital leases                   1,600,770     1,793,459
Derivative liabilities                                167,364       199,965
Other long-term liabilities                           106,563       106,477
Equity                                                                     
 Non-controlling interest(2)                           21,828        17,123
 Partners' equity                                     883,591       896,200
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Total Liabilities and Total Equity                  3,523,487     3,547,395
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(1) Due to the Partnership's agreement to acquire Teekay Corporation's 100
percent interest in the two Skaugen Multigas Carriers, it is required to
consolidate these vessels prior to the actual acquisition date under U.S.
GAAP. 
(2) Non-controlling interest includes the 30 percent portion of the RasGasII
Project, 31 percent of the equity interest in the Tangguh project and 1
percent of the equity interest in both the Kenai LNG Carriers and the
Excalibur Joint Venture, which in each case the Partnership does not own.


TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)

                                                   Three Months Ended March
                                                              31,          
                                                   ------------------------
                                                           2011      2010(1)
                                                   ------------------------
Cash and cash equivalents provided by (used for)                           
OPERATING ACTIVITIES                                                       
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Net operating cash flow                                  39,670      60,486
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FINANCING ACTIVITIES                                                       
Distribution to Teekay Corporation for the                                 
 acquisition of the Bermuda Spirit,                                         
 Hamilton Spirit and Alexander Spirit                         -     (33,997)
Proceeds from issuance of long-term debt                 24,118      28,246
Scheduled repayments of long-term debt                  (16,275)    (19,248)
Prepayments of long-term debt                           (12,000)     (9,000)
Scheduled repayments of capital lease obligations                          
 and other long-term liabilities                         (2,482)       (774)
Advances to and from affiliates                           1,401      (4,420)
Repayment of joint venture partners' advances               (59)          -
Equity contribution from Teekay Corporation to                             
 Dropdown Predecessor                                         -         466
Cash distributions paid                                 (37,666)    (31,587)
(Increase) decrease in restricted cash                   (3,213)        299
Other                                                      (120)       (120)
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Net financing cash flow                                 (46,296)    (70,135)
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INVESTING ACTIVITIES                                                       
Receipts from direct financing leases                     1,367       1,268
Expenditures for vessels and equipment                   (3,184)     (2,651)
Advances to joint venture partner and joint venture           -         (94)
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Net investing cash flow                                  (1,817)     (1,477)
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Decrease in cash and cash equivalents                    (8,443)    (11,126)
Cash and cash equivalents, beginning of the period       81,055     108,350
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Cash and cash equivalents, end of the period             72,612      97,224
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(1) In accordance with GAAP, the Consolidated Statements of Cash Flows
includes the cash flows relating to the Dropdown Predecessor for the
Alexander Spirit, Hamilton Spirit and Bermuda Spirit, for the period from
September 3, 2009, June 24, 2009 and May 27, 2009, respectively to
March 17, 2010, when the vessels were under the common control of Teekay,
but prior to their acquisition by the Partnership. 

TEEKAY LNG PARTNERS L.P.

APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME

(in thousands of U.S. dollars)

Set forth below is a reconciliation of the Partnership's unaudited adjusted net income attributable to the partners, a non-GAAP financial measure, to net income attributable to the partners as determined in accordance with GAAP. The Partnership believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Partnership's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Partnership's financial results. Adjusted net income attributable to the partners is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


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                                                          Three       Three
                                                         Months      Months
                                                          Ended       Ended
                                                   ------------------------
                                                       March 31,   March 31,
                                                           2011        2010
                                                   ------------------------
                                                     (unaudited) (unaudited)
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Net income - GAAP basis                                  29,737      31,021
Less:                                                                      
 Net (income) attributable to Dropdown Predecessor            -      (2,258)
 Net (income) attributable to non-controlling                               
  interest                                               (4,757)       (301)
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Net income attributable to the partners                  24,980      28,462
Add (subtract) specific items affecting net income:                        
 Foreign exchange loss (gain)(1)                         21,033     (23,096)
 Unrealized (gains) losses from derivative                                  
  instruments(2)                                        (21,006)     15,598
 Unrealized (gains) losses from derivative                                  
  instruments from equity accounted investees(2)         (2,554)      2,182
Restructuring charge and other(3)                           949          49
Non-controlling interests' share of items above           2,484      (1,804)
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Total adjustments                                           906      (7,071)
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Adjusted net income attributable to the partners         25,886      21,391
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(1) Foreign exchange gains primarily relate to the revaluation of the
Partnership's debt, capital leases and restricted cash denominated in
Euros. 
(2) Reflects the unrealized gain (loss) due to changes in the mark-to-market
value of derivative instruments that are not designated as hedges
for accounting purposes. 
(3) Amount for three months ended March 31, 2011 relates to a one-time
management fee associated with the portion of stock-based compensation
grants to Teekay's former President and Chief Executive Officer that had
not yet vested prior to the date of his retirement on March 31, 2011. 

TEEKAY LNG PARTNERS L.P.

APPENDIX B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE

(in thousands of U.S. dollars)

Description of Non-GAAP Financial Measure - Distributable Cash Flow (DCF)

Distributable cash flow represents net income adjusted for depreciation and amortization expense, non-cash items, estimated maintenance capital expenditures, gains and losses on vessel sales, unrealized gains and losses from derivatives, income from variable interest entity, deferred income taxes, foreign exchange related items and net income attributable to the Dropdown Predecessor before depreciation. Maintenance capital expenditures represent those capital expenditures required to maintain over the long-term the operating capacity of, or the revenue generated by, the Partnership's capital assets. Distributable cash flow is a quantitative standard used in the publicly-traded partnership investment community to assist in evaluating a partnership's ability to make quarterly cash distributions. Distributable cash flow is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Partnership's performance required by accounting principles generally accepted in the United States. The table below reconciles distributable cash flow to net income.


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                                                               Three Months
                                                                      Ended
                                                              -------------
                                                                   March 31,
                                                                       2011
                                                              -------------
                                                                 (unaudited)
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Net income                                                           29,737
Add:                                                                       
 Depreciation and amortization                                       22,349
 Partnership's share of joint ventures' DCF before estimated                
  maintenance capital expenditures                                    7,863
 Non-cash tax expense                                                   617
 Unrealized foreign exchange loss                                    21,033
Less:                                                                      
 Unrealized gain from derivatives and other non-cash items          (19,427)
 Estimated maintenance capital expenditures                         (11,168)
 Equity income from joint ventures                                   (8,057)

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Distributable Cash Flow before Non-controlling interest              42,947
Non-controlling interests' share of DCF before estimated                   
maintenance capital expenditures                                     (3,866)
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Distributable Cash Flow                                              39,081
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TEEKAY LNG PARTNERS L.P.
APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. dollars) 

                                      Three Months Ended March 31, 2011   
                                   ---------------------------------------
                                                 (unaudited)

                                      Liquefied   Conventional            
                                            Gas         Tanker             
                                        Segment        Segment       Total
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Net voyage revenues(1)                   65,784         27,065      92,849
Vessel operating expenses                11,077          9,730      20,807
Depreciation and amortization            15,124          7,225      22,349
General and administrative                3,324          3,002       6,326
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Income from vessel operations            36,259          7,108      43,367
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                                      Three Months Ended March 31, 2010   
                                   ---------------------------------------
                                                 (unaudited) 

                                      Liquefied   Conventional            
                                            Gas         Tanker             
                                        Segment        Segment       Total
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Net voyage revenues(1)                   65,813         26,538      92,351
Vessel operating expenses                11,416          9,612      21,028
Depreciation and amortization            15,238          6,918      22,156
General and administrative                2,744          2,648       5,392
Restructuring charge                          -             49          49
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Income from vessel operations            36,415          7,311      43,726
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(1) Net voyage revenues represents voyage revenues less voyage expenses,
which comprise all expenses relating to certain voyages, including bunker
fuel expenses, port fees, canal tolls and brokerage commissions. Net voyage
revenues is a non-GAAP financial measure used by certain investors to
measure the financial performance of shipping companies. Please see the
Partnership's web site at www.teekaylng.com for a reconciliation of this
non-GAAP measure as used in this release to the most directly comparable
GAAP financial measure. 

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 opportunities; improvements in the LNG sector; the timing of LNG and LPG/Multigas newbuilding deliveries and incremental cash flows relating to long-term, fixed-rate contracts serviced by these newbuildings; the growth opportunities in floating LNG regasification market; the Partnership's financial position, including available liquidity; and the potential for the Partnership to increase distributable cash flow from future projects and acquisitions of additional vessels from third parties. 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: the unit price of equity offerings to finance acquisitions; changes in production of LNG or LPG, either generally or in particular regions; development of LNG and LPG projects; required approvals by the Conflicts Committee of the Board of Directors of the Partnership's general partner to acquire any projects offered to the Partnership by Teekay Corporation; 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/Multigas project delays or shipyard production delays which would change the expected timing and cost of newbuild vessel deliveries; the Partnership's ability to raise financing to purchase additional vessels or to pursue LNG or LPG/Multigas projects; changes to the amount or proportion of revenues, expenses, or debt service costs denominated in foreign currencies; 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, 2010. 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.

Contact Information

  • Teekay LNG Partners L.P.
    Kent Alekson
    Investor Relations Enquiries
    +1 (604) 609-6442
    www.teekaylng.com