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