Teekay GP LLC, the general partner of Teekay LNG Partners L.P., has declared a cash distribution of US$0.19 per common unit for the quarter ended 31 March 2019, representing a 36% increase over the previous quarter’s distribution.
The cash distribution is payable on 15 May 2019 to all common unitholders of record on 7 May 2019. Teekay LNG’s cash distributions are reported on Form 1099 for US 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 US$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% 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.”