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On May 4, 2009, the Partnership declared a cash distribution of $0.57 per unit for the quarter ended March 31, 2009. The cash distribution is payable on May 15, 2009 to all unitholders of record on May 8, 2009.
"Our cash flows are generated from long-term fixed-rate contracts with terms ranging from 10 to 25 years, providing the Partnership with stable distributable cash flow," commented Peter Evensen, Chief Executive Officer of Teekay GP LLC. "In addition, our long-term contracts are with creditworthy counterparties and have no exposure to commodity price fluctuation," continued Mr. Evensen. "With the proceeds from our recently completed follow-on equity offering, the Partnership's total liquidity comfortably exceeds our total remaining newbuilding capital expenditures. The combination of our long-term fixed-rate contracts, strong liquidity position, and fully-financed newbuilding program provides unitholders with stable cash distributions."
(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
In April 2009, the Partnership took delivery of the first of five Skaugen LPG/Mulitgas vessels which commenced a 15-year fixed-rate charter concurrently.
The following table summarizes the Partnership's fleet as of May 1, 2009:
---------------------------------------------------------
Number of Vessels
-------------------------------
Delivered Committed
Vessels Vessels Total
-------------------------------
LNG Carrier Fleet(1) 13 2 15
LPG Carrier Fleet 2 4(2) 6
Suezmax Tanker Fleet 8 - 8
---------------------------------------------------------
Total 23 6 29
---------------------------------------------------------
(1) Excludes Teekay's 33 percent interest in the four Angola LNG
newbuildings, as described below.
(2) Represents the four Skaugen LPG carriers currently under construction,
as described below.
Future LNG/LPG Projects
Below is a summary of LNG and LPG newbuildings that the Partnership has agreed to, or has the right to, acquire:
Tangguh LNG
The Partnership has agreed to acquire Teekay Corporation's (Teekay's) 70 percent interest in two 155,000 cubic meter newbuilding LNG carriers and expects the purchase to be completed during the second quarter of 2009. The Tangguh vessels will provide transportation services to The Tangguh Production Sharing Contractors, a consortium led by a subsidiary of BP plc, to service the Tangguh LNG project in Indonesia. The vessels will be chartered at fixed rates, with inflation adjustments, for a period of 20 years. An Indonesian joint venture partner owns the remaining 30 percent interest in these vessels.
Skaugen LPG
The Partnership has agreed to acquire a total of five LPG carriers from subsidiaries of IM Skaugen ASA (Skaugen), four of which are currently under construction and will be purchased upon their deliveries from the shipyard scheduled in 2009 and 2010. Upon their delivery, the vessels will commence service under 15-year fixed-rate charters to Skaugen. The first of the five vessels was delivered in April 2009.
Angola LNG
As previously announced, a consortium in which Teekay has a 33 percent 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, which are scheduled to commence in 2011. In accordance with an agreement between Teekay and Teekay LNG, Teekay is obligated to offer the Partnership its interest in these vessels and related charter contracts no later than 180 days before delivery of the newbuilding LNG carriers.
Financial Summary
The Partnership reported a net loss of $15.9 million for the quarter ended December 31, 2008, compared to a net loss of $0.6 million for the same period of the prior year. The results for the quarters ended December 31, 2008 and December 31, 2007 included a number of specific non-cash items which had the net effect of decreasing net income by $30.7 million and $12.2 million, respectively, as detailed in Appendix A to this release. Excluding the items in Appendix A, net income would have been $14.8 million and $11.6 million for the quarters ended December 31, 2008 and 2007, respectively. Net voyage revenues(1) for the fourth quarter of 2008 increased to $88.1 million from $68.7 million in the same quarter of the prior year.
Reported net income for the year ended December 31, 2008 was $19.5 million, compared to net income of $25.7 million for the prior year. The results for the year ended December 31, 2008 and 2007 included a number of specific non-cash items which had the net effect of decreasing net income by $30.0 million and $14.4 million, respectively, as detailed in Appendix A to this release. Excluding the items in Appendix A, net income would have been $49.5 million and $40.1 million for the years ended December 31, 2008 and 2007, respectively. Net voyage revenues for the year ended December 31, 2008 increased to $300.5 million from $268.8 million in the prior year.
For accounting purposes, the Partnership is required to recognize the changes in the fair value of its derivative instruments in the statement 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 statements of income.
Operating Results
The following table highlights certain financial information for Teekay LNG's segments: the liquefied gas segment and the Suezmax segment (please refer to the "Teekay LNG's Fleet" section of this release above and Appendix C for further details). 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.
----------------------------------------------------------------------------
Three Months Ended Three Months Ended
December 31, 2008 December 31, 2007
(unaudited) (unaudited)
-------------------------------------------------
Liquefied Liquefied
(in thousands of U.S. Gas Suezmax Gas Suezmax
dollars) Segment Segment Total Segment Segment Total
----------------------------------------------------------------------------
Net voyage revenues(i) 54,415 33,652 88,067 47,992 20,706 68,698
Vessel operating expenses 13,648 6,766 20,414 8,458 6,719 15,177
Depreciation & amortization 15,140 4,973 20,113 12,131 5,011 17,142
Cash flow from vessel
operations(ii) 39,058 15,153 54,211 37,456 11,205 48,661
----------------------------------------------------------------------------
(i) Net voyage revenues in the Suezmax tanker segment includes unrealized
mark-to-market gains (losses) of the derivative liability relating to
the agreement between the Partnership and Teekay for the Toledo Spirit
time-charter. For the three months ended December 31, 2008 and
December 31, 2007, these unrealized gains were $9.3 million and $0.5
million, respectively.
(ii) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense and unrealized
gains or losses relating to derivatives. Cash flow from vessel
operations 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.
(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.
Liquefied Gas Segment
Cash flow from vessel operations from the Partnership's liquefied gas segment increased to $39.1 million in the fourth quarter of 2008 from $37.5 million in the same quarter of the prior year, primarily due to the acquisition of the two Kenai LNG carriers on April 1, 2008.
Suezmax Segment
Cash flow from vessel operations from the Partnership's Suezmax tanker segment increased to $15.2 million for the fourth quarter of 2008 from $11.2 million in the same quarter of the prior year. This is primarily due to a $6.6 million increase in the Teide Spirit profit share recognized in the fourth quarter of 2008 (the time charter for the Teide Spirit contains a profit share component tied to spot tanker rates which is determined in the fourth quarter of each year), partially offset by an increase in vessel operating expenses related mainly to higher crewing costs and 27 off-hire days experienced due to a scheduled drydocking in the fourth quarter of 2008.
Liquidity
As of December 31, 2008, the Partnership had total liquidity of $491.8 million, comprised of $117.6 million in cash and cash equivalents (of which $22.9 million is only available to the Tangguh joint venture) and $374.2 million in undrawn medium-term revolving credit facilities.
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 fifteen LNG carriers, six LPG carriers and eight Suezmax class crude oil tankers. Two of the fifteen LNG carriers are newbuildings scheduled for delivery to the Partnership in the first half of 2009. Four 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".
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except unit data)
---------------------------------------------------------------------------
Three Months Ended Year Ended
-------------------------------------- ------------------------
December 31, September 30, December 31, December 31, December 31,
2008 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------- ------------ ----------- ----------- -----------
VOYAGE
REVENUES
(1) 89,648 78,206 69,038 303,781 269,974
---------------------------------------------------------------------------
OPERATING
EXPENSES
Voyage
expenses 1,581 615 340 3,253 1,197
Vessel
operating
expenses 20,414 17,500 15,177 77,113 56,863
Depreciation
and
amortiz-
ation 20,113 19,105 17,142 76,880 66,017
General
and
admin-
istrative 5,834 4,167 4,378 20,201 15,186
---------------------------------------------------------------------------
47,942 41,387 37,037 177,447 139,263
---------------------------------------------------------------------------
Income from
vessel
operations 41,706 36,819 32,001 126,334 130,711
---------------------------------------------------------------------------
OTHER ITEMS
Interest
expense (2) (262,520) (76,585) (84,553) (404,245) (167,870)
Interest
income (3) 169,476 34,680 45,018 240,922 88,737
Income tax
(expense)
recovery (453) 336 67 (205) (1,155)
Foreign
exchange
gain
(loss) (4) 3,597 48,567 (9,204) 18,244 (41,241)
Other - net 1,836 149 (69) 1,386 (259)
Goodwill
impairment - (3,648) - (3,648) -
---------------------------------------------------------------------------
(Loss) income
before non-
controlling
interest (46,358) 40,318 (16,740) (21,212) 8,923
Non-
controlling
interest 30,463 5,571 16,146 40,698 16,739
---------------------------------------------------------------------------
Net (loss)
income (15,895) 45,889 (594) 19,486 25,662
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Limited
partners'
units
outstanding:
Weighted-
average
number of
common
units
outstanding
- Basic
and
diluted 33,338,320 33,338,320 22,540,547 29,698,031 21,670,958
Weighted-
average
number of
sub-
ordinated
units
outstanding
- Basic
and
diluted 11,050,929 11,050,929 14,734,572 12,459,973 14,734,572
Weighted-
average
number of
total units
outstanding
- Basic
and
diluted 44,389,249 44,389,249 37,275,119 42,158,004 36,405,530
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Due to the change in fair value of a profit sharing agreement between
Teekay and the Partnership for the Toledo Spirit time-charter contract,
voyage revenues includes unrealized gains of $9.3 million, $0.7 million
and $0.5 million for the three months ended December 31, 2008, September
30, 2008 and December 31, 2007, respectively. Voyage revenues for the
years ended December 31, 2008 and December 31, 2007 includes an
unrealized loss of $2.0 million and an unrealized gain of $14.1 million,
respectively. These amounts are non-cash and hence, do not affect the
Partnership's cash flows or the calculation of distributable cash flow.
(2) Interest expense for the three months ended December 31, 2008, September
30, 2008 and December 31, 2007 includes unrealized losses of $222.9
million, $39.4 million and $45.0 million, respectively, from interest
rate swaps. Interest expense for the years ended December 31, 2008 and
December 31, 2007 includes unrealized losses of $253.4 million and $25.5
million, respectively, from interest rate swaps. These amounts are non-
cash and hence, do not affect the Partnership's cash flows or the
calculation of distributable cash flow.
(3) Interest income for the three months ended December 31, 2008, September
30, 2008 and December 31, 2007 includes unrealized gains of $150.3
million, $17.5 million and $26.4 million, respectively, from interest
rate swaps. Interest income for the years ended December 31, 2008 and
December 31, 2007 includes unrealized gains of $170.8 million and $22.3
million, respectively, from interest rate swaps. These amounts are non-
cash and hence, do not affect the Partnership's cash flows or the
calculation of distributable cash flow.
(4) The Partnership's Euro-denominated revenues currently approximate its
Euro-denominated expenses and debt service costs. As a result, the
Partnership currently is not exposed materially to foreign currency
fluctuations. However, 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 income statement.
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS (1)
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
As at As at
December 31, 2008 December 31, 2007 (3)
(unaudited) (unaudited)
----------------- --------------------
ASSETS
Cash and cash equivalents 117,641 91,891
Restricted cash - current 28,384 26,662
Other current assets 18,388 24,993
Advances to affiliates 9,583 -
Restricted cash - long-term 614,565 652,567
Vessels and equipment 2,007,321 1,824,799
Advances on newbuilding contracts 200,557 240,773
Derivative assets 167,326 33,594
Other assets 95,756 733,123
Intangible assets 141,805 150,935
Goodwill 35,631 39,279
---------------------------------------------------------------------------
Total Assets 3,436,957 3,818,616
---------------------------------------------------------------------------
---------------------------------------------------------------------------
LIABILITIES AND PARTNERS' EQUITY
Accounts payable, accrued
liabilities and unearned revenue 44,614 36,545
Current portion of long-term debt
and capital leases 197,922 187,635
Current portion of long-term debt
related to newbuilding vessels
to be delivered 26,495 34,665
Advances from affiliates and
joint venture partners 74,300 269,092
Long-term debt and capital leases 1,861,924 1,586,074
Long-term debt related to
newbuilding vessels to be delivered 113,611 774,617
Derivative liabilities 260,602 79,318
Other long-term liabilities 48,776 -
Non-controlling interest (2) 2,862 141,378
Partners' equity 805,851 709,292
---------------------------------------------------------------------------
Total Liabilities and Partners' Equity 3,436,957 3,818,616
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Due to the Partnership's agreement to acquire Teekay's 70 percent
interest in the Tangguh LNG Project, it is required to consolidate
Tangguh under U.S. generally accepted accounting principles. Due to the
Partnership's acquisition of a 40 percent interest in the four RasGas 3
LNG carriers on May 6, 2008, it is required to equity account for its
investment in the RasGas 3 joint venture under U.S. generally accepted
accounting principles.
(2) Non-controlling interest relates to the 30 percent portion of Teekay
Nakilat (RasGasII Project) which the Partnership does not own. There is
no non-controlling interest relating to the Tangguh project, as it had a
net equity loss which the Partnership assumed 100 percent of the deficit
as at December 31, 2008. The non-controlling interest would include 100
percent of a net equity gain in the Tangguh project until the
Partnership acquires the interest in the Tangguh project. As at December
31, 2007, the Partnership had not yet acquired either the Tangguh or the
RasGas 3 projects, and as such, the non-controlling interest for this
period includes 100 percent of the equity interest in the Tangguh
project and 100 percent equity in Teekay Nakilat Holdings Corporation
(RasGas 3 Project), although the Partnership's actual equity interest in
the latter joint venture is only 40 percent.
(3) Retroactively adjusted to include the Dropdown Predecessor for two
vessels, the Polar Spirit and Arctic Spirit, which were acquired from
Teekay on April 1, 2008, as if the vessels had been acquired by the
Partnership on December 13, 2007 and December 14, 2007, respectively,
the date the vessels were operating and under the common control of
Teekay.
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
Year Ended December 31,
----------------------
2008 2007
(unaudited) (unaudited)
---------- -----------
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
---------------------------------------------------------------------------
Net operating cash flow 141,399 115,305
---------------------------------------------------------------------------
FINANCING ACTIVITIES
Excess of purchase price over the contributed basis
of Teekay Nakilat (III) Holdings Corporation (28,192) -
Excess of purchase price over the contributed basis
of Teekay Nakilat Holdings Corporation - (13,844)
Distribution to Teekay Corporation for the purchase
of Kenai LNG carriers (230,000) -
Distribution to Teekay Corporation for the purchase
of Dania Spirit LLC carrier - (18,548)
Proceeds from long-term debt 936,982 1,021,615
Debt issuance costs (2,233) (5,345)
Scheduled repayments of long-term debt and capital
leases (106,789) (61,869)
Prepayments of long-term debt (321,000) (291,098)
Increases in restricted cash 36,511 11,590
Net advances from affiliates 17,147 (2,788)
Net advances from joint venture partners 621 (21,630)
Cash distributions paid (97,420) (74,116)
Proceeds from issuance of units 202,525 85,975
Equity distribution from Teekay Corporation 3,281 598
---------------------------------------------------------------------------
Net financing cash flow 411,433 630,540
---------------------------------------------------------------------------
INVESTING ACTIVITIES
Advances to joint venture (250,413) (461,258)
Receipt of Spanish re-investment tax credit 5,431 -
Return of capital from Teekay BLT Corporation to
its joint venture partners (28,000) -
Purchase of Teekay Nakilat (III) Holdings Corporation (82,007) -
Purchase of Teekay Nakilat Holdings Corporation - (61,227)
Expenditures for vessels and equipment (172,093) (160,757)
---------------------------------------------------------------------------
Net investing cash flow (527,082) (683,242)
---------------------------------------------------------------------------
Increase in cash and cash equivalents 25,750 62,603
Cash and cash equivalents, beginning of the year 91,891 29,288
---------------------------------------------------------------------------
Cash and cash equivalents, end of the year 117,641 91,891
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. dollars, except per share data)
Set forth below are some of the significant items of income and expense that affected the Partnership's net income for the three months and year ended December 31, 2008 and December 31, 2007, all of which items are typically excluded by securities analysts in their published estimates of the Partnership's financial results:
---------------------------------------------------------------------------
Three Months Ended Year Ended
December 31, 2008 December 31, 2008
------------------ -----------------
(unaudited) (unaudited)
Foreign currency exchange gains (1) 3,597 18,244
Unrealized losses from derivative
instruments (2) (63,315) (84,546)
Goodwill impairment - (3,648)
Non-controlling interests' share of
items above 29,008 39,912
---------------------------------------------------------------------------
Total (30,710) (30,038)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
----------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended Year Ended
December 31, 2007 December 31, 2007
------------------ -----------------
(unaudited) (unaudited)
Foreign currency exchange losses (1) (9,204) (41,241)
Unrealized (losses) gains from
derivative instruments (2) (18,044) 10,941
Non-controlling interests' share of
items above 15,030 15,887
---------------------------------------------------------------------------
Total (12,218) (14,413)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Foreign currency exchange gains and losses primarily relate to the
revaluation of the Partnership's debt denominated in Euros.
(2) Reflects the unrealized gain or loss due to changes in the mark-to-
market value of derivative instruments that are not designated as hedges
for accounting purposes.
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 (loss) income adjusted for depreciation and amortization expense, non-cash items, non-controlling interest, estimated maintenance capital expenditures, gains and losses on vessel sales, unrealized gains and losses from derivatives, income taxes and foreign exchange related items. 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 (loss) 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 (loss).
---------------------------------------------------------------------------
Three Months Ended
December 31, 2008
------------------
(unaudited)
---------------------------------------------------------------------------
Net loss (15,895)
Add:
Depreciation and amortization 20,113
Unrealized gains and losses from derivatives and other
non-cash items 66,550
Income tax expense 453
Partnership's share of RasGas 3 DCF before estimated
maintenance capital expenditures 4,525
Less:
Estimated maintenance capital expenditures (8,789)
Equity income of RasGas 3 joint venture (1,549)
Foreign exchange gain (3,597)
Non-controlling interest (30,463)
---------------------------------------------------------------------------
Distributable Cash Flow before Non-Controlling interest 31,348
---------------------------------------------------------------------------
Non-controlling interests' share of DCF before estimated
maintenance capital expenditures (1,756)
---------------------------------------------------------------------------
Distributable Cash Flow 29,592
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. dollars)
Three Months Ended December 31, 2008
------------------------------------
(unaudited)
Liquefied Suezmax
Gas Segment Segment Total
---------------------------------------------------------------------------
Net voyage revenues (1) 54,415 33,652 88,067
Vessel operating expenses 13,648 6,766 20,414
Depreciation and amortization 15,140 4,973 20,113
General and administrative 3,376 2,458 5,834
---------------------------------------------------------------------------
Income from vessel operations 22,251 19,455 41,706
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended December 31, 2007
------------------------------------
(unaudited)
Liquefied Suezmax
Gas Segment Segment Total
---------------------------------------------------------------------------
Net voyage revenues (1) 47,992 20,706 68,698
Vessel operating expenses 8,458 6,719 15,177
Depreciation and amortization 12,131 5,011 17,142
General and administrative 2,123 2,255 4,378
---------------------------------------------------------------------------
Income from vessel operations 25,280 6,721 32,001
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(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 prospects; Teekay Corporation offering its interest in the Angola LNG Project vessels to the Partnership; the certainty and timing of the Partnership's purchase of the Tangguh LNG carriers from Teekay Corporation and the amount of cash flow the acquisition will generate for the Partnership; the timing of LNG and LPG newbuilding deliveries; the amount and timing of the refinancing of the Partnership's existing debt facilities; and the likelihood of securing a commitment from lenders to finance five LPG newbuildings. 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; the outcome of a ruling that the Partnership requested of the IRS with respect to an LPG carrier holding structure that the Partnership also intends to use to acquire and hold the carriers servicing the Tangguh LNG project; changes in production of LNG or LPG, either generally or in particular regions; required approvals by the conflicts committee of the board of directors of the Partnership's general partner to acquire any LNG 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 project delays, shipyard production delays; the Partnership's ability to raise financing to purchase additional vessels or to pursue LNG or LPG projects; the securing of lenders' internal approvals for the provision of financing on the Partnership's five LPG newbuildings; 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/A for the fiscal year ended December 31, 2007. 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.
SOURCE: Teekay LNG Partners L.P.
Teekay LNG Partners L.P. Kent Alekson Investor Relations Enquiries (604) 609-6442 Teekay LNG Partners L.P. Alana Duffy Media Enquiries (604) 844-6605 Website: www.teekaylng.com
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