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Teekay LNG Partners L.P. (TGP)

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15.20+0.14 (+0.93%)
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  • T
    Tom
    Empires in decline ship out food and energy
  • C
    Common Sense
    $20 by year end.
  • G
    GG
    Yum yum dividends.
  • K
    Karlfried
    Tax question: Part of the dividend is "Return of Capital". After I have sold the stock, is the 1099 (from E-trade) purchase price already adjusted (reduced) by the return of capital? Or do I have to manually reduce the purchase price?
  • M
    Marek
    divi on way ... :)
    Bullish
  • G
    GG
    Ok. Christmas is over. And Business and Business. You listen to me TGP. No more effing around. We going to 15.00. Start moving.
  • G
    GG
    So amazing to see this close over $15. I almost shed a tear. For those of you who have been on this boat a while, congrats. And for all those who bought way lower, nicely done. TGP, keep up the good work. We love our fleet.
  • r
    randy
    ok, what is the consensus here? dividend raise to $.30? I think so...with a price move to $16.
  • J
    Jp
    It was a phenomenal conference call. Increasing the dividend by 15%, to 8.5% yield. +90% of their vessels contracted for the next year. Natural gas consumption is only growing and they are paying down debt. Over $450 million in cash with only ~ $140 in debt due this year. The world economy will be recovering this year it can only get better for TGP
    Bullish
  • G
    GG
    The only way to 18 is through 15. Get back up.
  • R
    R
    I stand corrected..... congrats on the new $1.15/year distribution!
  • R
    R
    BRINGING ENERGY TO THE WORLD

    Teekay Corporation and Teekay LNG Partners L.P. Announce Elimination of Incentive Distribution Rights
    HAMILTON, Bermuda, May 11, 2020 (GLOBE NEWSWIRE) -- Teekay Corporation (Teekay) (NYSE:TK) and Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) today announced the execution of a definitive agreement to eliminate all of the Partnership’s incentive distribution rights (IDRs) in exchange for 10.75 million newly-issued Teekay LNG common units (Transaction). The Transaction concurrently closed on May 11, 2020.
    “This important transaction creates greater alignment between our sponsor, Teekay, and the rest of our common unitholders, and we believe that it removes one of the primary uncertainties for investors in Teekay LNG,” commented Mark Kremin, President and CEO of Teekay Gas Group Ltd. “With approximately 98 percent and 94 percent of our LNG fleet operating on fixed-rate charters for 2020 and 2021, respectively, and having increased our quarterly common unit distributions by over 30 percent for two consecutive years, we are well-positioned to continue executing on our balanced capital allocation plan of near-term balance sheet delevering, while continuing to return capital to unitholders.”
    Kenneth Hvid, Teekay’s President and CEO, commented: “This transaction simplifies Teekay LNG’s capital structure and is beneficial to both parties. With a market-leading position, strong contracted cash flows and an improving balance sheet, we believe that Teekay LNG is and will remain a true market leader in the LNG transportation industry for the long-term.”
    Following the completion of this Transaction, Teekay now beneficially owns approximately 36 million Teekay LNG common units and remains the sole owner of Teekay GP L.L.C. (Teekay GP), the general partner of Teekay LNG, which together represents an economic interest of approximately 42 percent in the Partnership.
    The Boards of Directors of Teekay and Teekay GP, as well as the Teekay GP Conflicts Committee, which consists entirely of independent directors, unanimously approved the IDR elimination transaction.
    Houlihan Lokey Capital, Inc. acted as financial advisor and Potter Anderson & Corroon LLP acted as legal advisor to the Teekay GP Conflicts Committee. Jefferies LLC acted as financial advisor and Baker Botts LLP and Perkins Coie LLP acted as legal advisors to Teekay.
    About Teekay
    Teekay is a leading provider of international crude oil and gas marine transportation services and also provides offshore production. Teekay provides these services primarily through its directly-owned fleet and its controlling ownership interests in Teekay LNG Partners L.P. (NYSE:TGP), one of the world’s largest independent owners and operators of LNG carriers, and Teekay Tankers Ltd. (NYSE:TNK), one of the world’s largest owners and operators of mid-sized crude tankers. The consolidated Teekay entities manage and operate total assets under management of approximately $11 billion, comprised of approximately 140 liquefied gas, conventional tanker, and offshore assets. With offices in 10 countries and approximately 5,500 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading oil and gas companies.
    Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.
    About Teekay LNG
    Teekay LNG is one of the world’s largest independent owners and operators of LNG carriers, providing LNG and LPG services primarily under long-term, fee-based charter contracts through its interests in 47 LNG carriers, 23 mid-size LPG carriers, and seven multi-gas carriers. Teekay LNG’s ownership interests in these vessels range from 20 to 100 percent. In addition, Teekay LNG owns a 30 percent interest in a regasification terminal. Teekay LNG 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’s 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 expected impact and benefits of the IDR elimination transaction, including the potential impact on Teekay LNG’s unit price; the Partnership’s market position and financial strength relative to its peers; the Partnership’s percentage of fixed charter coverage for its LNG fleet in 2020 and 2021; the Partnership’s ability to benefit from its fixed contracts; and the Partnership’s expectations on future allocation of ca
  • G
    GG
    Every time we start looking at $14.00 you turn the other way, TGP. No more ! March onward. Upward. Excelsior. Let's chart our course for $20.00.
  • J
    Joe
    One week to Q3 earnings release, let me start the speculations on what to expect:

    The Q3 report will, in my opinion, contain 3 potentially interesting items:

    1. Earnings and debt reduction in Q3 - I do not expect any surprises as all LNG vessels are under fixed contracts. So this part should be pleasant but boring reading.
    2. Expected earnings and debt reduction in 2021 - we should get TGPs expectations in this release. This is much more interesting although i do not expect huge differences to 2020 - I expect the forecast for revenue and EBITDA to be slightly lower than in 2020. The ongoing debt reduction should lead to lower interest paid - possibly as much as 0,15 USD per share. I therefore expect earnings to be similar to net earnings in 2020 - but i admit this is more of a guesstimate.
    3. Dividend: I expect management to raise the quarterly dividend to 0,30 USD/share or 1,20 USD / year. TK could certainly use more cash and as TGP has not been awarded any tenders or placed any new building orders - TGP is building cash for no apparent reason - so send it back to the shareholders is always a popular solution and increased dividend could lead to a increase in the share price - which would be welcomed by TK (in case they wish to sell the 10,75 mio shares they received from the sale of the IDRs). I do not believe TK wish to sell the shares at these prices, but maybe they do not have a lot of choice. I know you will say "well, if the they have that much cash why not raise dividend to 0,40 or 0,50 USD/quarter?" - yes it could be done but I believe TGP prefers a gradual increase year over year also for the coming years - and it is probably also to early to say that TGP will not be awarded any new tenders or find other attractive investments in the coming year.

    We will know much more in a weeks time.
  • T
    Trevor
    $GLOP conversation
    The LNG industry is the future despite growth in renewables. Looks pretty positive overall and there are some good shipping companies that can capitalize on this growing trend. TGP and GLOP have their financials analyzed in the article.
    https://wantfi.com/natural-gas-lng-is-an-investment-growth-opportunity.html

    $TGP $TK $GLOP $GLOG $DLNG $GMLP $GMLPP $GLNG
  • R
    R
    Good news today to TGP!..... yet another piece of the puzzle.

    TEEKAY LNG PARTNERS ANNOUNCES NEW LNG CHARTERS AND REFINANCING OF $225 MILLION UNSECURED CREDIT FACILITY
    [GlobeNewswire]
    GlobeNewswireApril 3, 2020

    HAMILTON, Bermuda, April 03, 2020 (GLOBE NEWSWIRE) -- Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (TGP) announced today that it has secured new fixed-rate charters for two of its 52 percent-owned LNG carriers, a 12-month charter on the Arwa Spirit and an eight-month charter on the Methane Spirit, both of which are expected to commence upon completion and in direct continuation of their existing contracts in May and July 2020, respectively.

    In addition, Teekay LNG has successfully refinanced its existing $225 million unsecured revolving credit facility, which was scheduled to mature in November 2020, with a new two-year facility of the same amount and pricing consistent with the previous facility of LIBOR + 140 bps.

    “As we are an integral part of the world’s LNG supply chain, all of our vessels have continued to operate as expected under their existing fixed-rate contracts and I am pleased to report that, with these two new fixed-rate contracts, our LNG fleet is now 98 percent fixed though 2020 and 94 percent fixed for 2021,” commented Mark Kremin, President and CEO of Teekay Gas Group Ltd. “The Partnership expects to continue to benefit from its long-term contracted cash flow, and continue allocating capital in a manner that focuses on delevering and strengthening its balance sheet, while also returning capital to unitholders, including a 32 percent increase in our cash distribution to an annualized amount of $1.00 per common unit effective for the first quarter of 2020.”

    “We are also grateful for the continued strong support we receive from our bank group, as represented by the refinancing and closing of our $225 million unsecured revolving credit facility with 13 major international banks, which provides the Partnership with a strong consolidated liquidity position of approximately $400 million and increased financial flexibility with which to add value to our long-term unitholders.”

    About Teekay LNG

    Teekay LNG Partners is one of the world’s largest independent owners and operators of LNG carriers, providing LNG and LPG services primarily under long-term, fee-based charter contracts through its interests in 47 LNG carriers, 23 mid-size LPG carriers, and seven multi-gas carriers. The Partnership’s ownership interests in these vessels range from 20 to 100 percent. In addition, the Partnership owns a 30 percent interest in a regasification terminal. Teekay LNG Partners is a publicly-traded master limited partnership formed by Teekay Corporation (TK) as part of its strategy to expand its operations in the LNG and LPG shipping 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
  • R
    R
    Press release from TGP this a.m.(a piece is shown below)........ odd phrasing using the word "mandate"...... I must be missing something....... looks like it's a pep talk to refinance a chunk of the debt or who knows, buy back the preferred..... guess we'll have to wait and see.

    Teekay LNG Partners Mandates Banks to Arrange Fixed Income Investor Call
    [GlobeNewswire]
    Teekay LNG Partners L.P.
    ,GlobeNewswire•August 18, 2020

    HAMILTON, Bermuda, Aug. 18, 2020 (GLOBE NEWSWIRE) -- Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) mandates DNB Markets and Nordea as Global Coordinators and Joint Bookrunners; Credit Agricole Corporate and Investment Bank, Danske Bank, SEB, Swedbank and Arctic Securities as Joint Bookrunners to arrange a Fixed Income Investor Call on August 19, 2020. Subject to inter alia market conditions, a NOK denominated senior unsecured bond issue with a five-year tenor may follow.
  • R
    R
    Good Research......Interesting review of TGP IDR from Stifel:

    Teekay LNG Partners L.P.
    Put the IDR Genie Back in the Bottle.
    Financial Summary Changes Previous Current Rating—Buy Target Price—$20.00
    Summary Incentive distribution rights (IDRs) were a way to incentivize the sponsor company to dropdown assets only to the MLP as the sponsor would get an increasing share of distribution growth. However, after most MLPs increased distributions too much, it has become clear that IDRs were not a good idea. Good thing Teekay LNG has already cut distributions and stated they believe the company will not be anywhere close to split levels in the foreseeable future, effectively saying the IDRs have little to no value. However, in 2018 the parent company announced they were planning on monetizing the IDRs. Since then no monetization has happened, but it remains an overhang on TGP units. We believe it is time to either put a buyout permanently on hold or resolve on a conservative sum. Ultimately, we believe TGP is set to re-rate higher as leverage falls, particularly if IDRs are resolved reasonably.
    Key Points Teekay LNG is currently distributing $0.19/quarter although it has announced that it will be increased to $0.25 in May. The first IDR split begins at $0.4125/quarter. We estimate distributable cash flow to be about $0.65/quarter in 2020, i.e. the new distributions are 38% of availability. However, with leverage beyond the comfort level, the next several years need to be focused on balance sheet repair and beyond that retaining cash flow for fleet replacement and eventual growth. IDR value has been shrinking. TGP is in a strange position as there is no cash flow and no identifiable hope of cash flow for years to come, so effectively a buyout would be simply for some long-dated extremely out of the money option. However, even that option value has been shrinking for the following reasons: The MLP industry is shifting from distribution growth. Investors place little value on that growth, particularly as MLPs have not been able to cover increasing distribution requirements. Investors have instead preferred more organically generated growth and reduction of leverage. Thus even in cases where IDRs have actually associated cash flow, there has been a dramatic reduction in takeout value (we expect 8-10 times cash flows is the current market rate). LNG shipping is out of favor, particularly those MLPs with exposure to that sector. The market clearly believes that distributions for those partnerships are likely to see distribution compression, meaning that IDR takeouts for those other situations were needlessly dilutive. Again driving down the value of future similar transactions. What's it worth. By reaching the high splits we estimate TGP would be paying about $17 million of annual IDR with the potential to grow beyond that. However, at 8x-10x $17 million the undiscounted value would be $136 million to $170 million. Assuming 5 years at least before this is possible and a 10%-12% discount rate, the value would be $77 million to $105 million. Given the partnership has no aspirations of returning to a high payout model, even as debt comes down, the practicality of realistic reaching those levels is small, so any buyout would be to remove the long-dated out of the money option value that it might happen. Thus putting a realistic probability rating on those valuations, we believe something below a $50 million TGP share payment to TK to remove the IDR is more reasonable. What to do. We expect the sponsor has taken out expectations that are anchored to outdated now perhaps unrealistic expectations. However, the uncertainty is still an overhang on TGP valuation. Ultimately, we believe TGP announcing they have no intention of buying out the IDRs would be a solution or drawing a hard line on price would be another. One way or the other, TGP clearly has the leverage in the negotiation. Valuation. With units trading at 6.2x adjusted EBITDA, at a 7.3% yield following the stated increase, and best in case cash flow visibility, it is hard for us to see a downside in the shares (outside of silly price IDR takeout dilution). Thus, we still like this name for multi-year value creation.
    Bullish
  • m
    martin
    In light of GLOP impairment charge today on their Steam vessels...roughly $30M/vessel reduction on present value estimate, their balance sheet was sufficiently hurt to force a redirection of div to debt repayment.

    TGP has 49 LNG carriers, about 14 of which are Steam. Many of those roll off contracts in 2021-2023 time frame, and will not be able to renew at past rates. Not that shipping demand has waned, but that Steam ships are uncompetitive with XDF vessels.

    Depending on what TGP currently carries as the book value of those Steam vessels, they too face a impairment charge. If it were $30M per ship, then the non-cash charge could be $400M.

    No one here knows, and maybe TGP has paid down the debt on those to not be a material matter. But it is an overhang that hadn’t been much appreciated till GLOP move today...
  • R
    R
    My Schwab accounts notes today that TGP shares are "hard to borrow"...... looks like someone thinks (or knows) that earnings estimates will be missed and they are shorting TGP. I could guess that there's continuing leaking for somewhere within the TK enterprises but that would be callous of me to think. I still remember the haircut the little people (smaller shareholders) took when TGP's dividend was cut. The issue wasn't the dividend cut but the stock selloff (cut in half) that occurred the week before the dividend cut was announced...... one could easily translate that to mean some variant of insider trading. Management are largely different people now but these people need to be cleaning up the operations..... they appear to be quite good at getting and keeping shipping business but the office side still isn't derserving. We'll have to wait and see how earnings pan out near the end of the month..... hopefully, the shorts will be wrong and there's an earnings beat. GLTA