HAMILTON, Bermuda, Dec. 19, 2018 (GLOBE NEWSWIRE) -- Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP), has today announced that its Board of Directors has authorized a common unit repurchase program for the repurchase of up to $100 million of Teekay LNG’s common units.  Common units may be repurchased in the open market or privately-negotiated transactions or otherwise at times and prices considered appropriate by the Partnership. The timing of any purchases and the exact number of common units to be purchased under the program will be dependent on market conditions and other factors.  The Partnership intends to establish a trading plan pursuant to Rule 10b5-1 under the U.S. Securities Exchange Act relating to the repurchase of its common units under the program.

The Partnership also announced the outcome of the special meeting of common unitholders held yesterday.  All proposals, including the proposal to allow Teekay LNG to elect to be treated as a corporation, instead of a partnership, for U.S. federal income tax purposes, were approved by unitholders.  As a result, effective January 1, 2019, Teekay LNG will be treated as a corporation for U.S. federal income tax purposes and common and preferred unitholders will receive Form 1099s instead of Schedule K-1s relating to distributions taxable as dividends commencing in 2019.  Teekay LNG will remain a master limited partnership, and all other provisions of the Partnership’s limited partnership agreement remain in effect.

“We believe that Teekay LNG’s common units represent compelling value and repurchasing them is currently the best investment we can make as the unit price does not fully reflect the underlying value of our business, our large and diversified contract portfolio totaling $10.6 billion(1) of forward revenues, and the strong LNG carrier market fundamentals, which is resulting in higher cash flows for the Partnership,” commented Mark Kremin, President and Chief Executive Officer of Teekay Gas Group Ltd.  “This new common unit repurchase program is another component of our previously announced balanced capital allocation strategy, which will see the Partnership delever its balance sheet as a priority while also providing investors with a 36 percent increase in ongoing distributions, commencing in 2019.  This repurchase program will enable the Partnership to return some of the additional capital generated from the current strong LNG carrier market and early newbuilding deliveries to create long-term value for unitholders.” 

Mr. Kremin continued, “We are pleased that unitholders voted in favor of the amendment to our U.S. tax structure effective for the 2019 taxation year as we continue to believe that this will make Teekay LNG a more attractive investment, particularly for larger institutional investors.”

(1) As of October 1, 2018, based on existing contracts but excludes extension options; includes proportionate share of equity-accounted joint ventures.

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 six newbuildings), 22 mid-size LPG carriers, seven multigas carriers and two conventional tankers. 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 Hamilton
Tel: +1 (604) 609-2963
Website: www.teekay.com

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, among other things, regarding: the amounts and timing of potential repurchases of Teekay LNG’s common units under the Partnership’s common unit repurchase program; the underlying value of Teekay LNG’s common units; future forward revenues; the strength of the LNG carrier market; the effects of Teekay LNG’s amendments to its U.S. federal income tax status, including greater appeal to certain investors; and Teekay LNG’s guidance on 2019 cash distributions. 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: future trading prices and volumes of the Partnership’s common units; 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 and common unit repurchases approved by the general partner’s Board of Directors; the inability of charterers to make future charter payments; 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; 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, 2017. 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.