Teekay LNG Partners L.P. : Teekay LNG Partners Reports Fourth Quarter and Annual Results

  Teekay LNG Partners L.P. : Teekay LNG Partners Reports Fourth Quarter and
                                Annual Results

HAMILTON, BERMUDA--(Marketwire - Feb. 21, 2013) - Teekay LNG Partners L.P.
(NYSE:TGP) -

Highlights

  *Generated distributable cash flow of $53.6 million in the fourth quarter
    of 2012, an increase of 22 percent from the fourth quarter of 2011.

  *Declared fourth quarter 2012 cash distribution of $0.675 per unit.

  *On February 12, 2013, completed the previously-announced 50/50 joint
    venture with Exmar NV which owns and charters-in 25 vessels in the LPG
    carrier segment.

  *On December 12, 2012, ordered two LNG carrier newbuildings with options to
    order up to three additional vessels.

  *Total liquidity of approximately $495.0 million as at December 31, 2012.

Teekay GP L.L.C., the general partner of Teekay LNG Partners L.P. (Teekay LNG
or the Partnership) (NYSE:TGP), today reported the Partnership's results for
the quarter ended December 31, 2012. During the fourth quarter of 2012, the
Partnership generated distributable cash flow[1] of $53.6 million, compared to
$44.1 million in the same quarter of the previous year. The increase primarily
reflects the incremental distributable cash flow resulting from the following
acquisitions: a 52 percent interest in six liquefied natural gas (LNG)
carriers acquired in February 2012; a 33 percent interest in two LNG carriers
delivered between October 2011 and January 2012; and one Multigas carrier
delivered in October 2011.

On January 18, 2013, the Partnership declared a cash distribution of $0.675
per unit for the quarter ended December 31, 2012. The cash distribution was
paid on February 14, 2013 to all unitholders of record on February 4, 2013.

[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 financial measure under
United States generally accepted accounting principles (GAAP).

Recent Transactions

New LPG Joint Venture

In February 2013, the Partnership completed its joint venture agreement with
Belgium-based Exmar NV to own and charter-in liquefied petroleum gas (LPG)
carriers with a primary focus on the mid-size gas carrier segment. The joint
venture entity, called Exmar LPG BVBA, took economic effect as of November 1,
2012 and includes 16 owned LPG carriers (including four newbuildings scheduled
for delivery in 2014) and five chartered-in LPG carriers. In addition, the
joint venture recently ordered another four medium-size gas carrier
newbuildings with deliveries scheduled between 2015 and 2016, with options to
order up to four additional vessels, which brings the total fleet size of
Exmar LPG BVBA to 25 vessels, excluding options. For its 50 percent ownership
interest in the joint venture, including newbuilding payments made prior to
the November 1, 2012 economic effective date of the joint venture, Teekay LNG
invested approximately $134 million of equity and assumed approximately $108
million of its pro rata share of existing debt and lease obligations as of the
economic effective date, secured by certain vessels in the Exmar LPG BVBA
fleet. Exmar LPG BVBA is in the process of refinancing the joint venture fleet
and four of the newbuildings with a new $355 million debt facility which is
currently in documentation.

LNG Newbuildings

In December 2012, Teekay LNG entered into an agreement with Daewoo
Shipbuilding & Marine Engineering Co., Ltd., (DSME) of South Korea for the
construction of two 173,400-cubic meter LNG carrier newbuildings, for a total
purchase price of approximately $400 million, with options to order up to
three additional vessels. The newbuildings will be constructed with M-type,
Electronically Controlled, Gas Injection (MEGI) twin engines, which are
expected to be significantly more fuel-efficient and have lower emission
levels than engines currently being utilized in LNG shipping. The Partnership
intends to secure long-term contract employment for both vessels prior to
their scheduled deliveries in the first half of 2016.

"Teekay LNG continued to broaden its position as a leader in liquefied gas
shipping during the fourth quarter, entering into a new joint venture with
Exmar in the LPG carrier sector and placing orders for two LNG newbuilding
carriers," commented Peter Evensen, Chief Executive Officer of Teekay GP
L.L.C. "Last week, the Partnership finalized its 50/50 joint venture with
Exmar which will directly own and charter-in a fleet of 25 LPG carriers,
including eight newbuildings. This accretive transaction provides Teekay LNG
with immediate access to Exmar's well-established commercial presence in the
LPG market, including a sizeable contract of affreightment portfolio, and deep
expertise in medium-sized gas carrier operations. In addition to providing
exposure to the attractive fundamentals in the LPG shipping market, the
newbuilding LPG carriers currently on order provide the Partnership with
visible distributable cash flow growth."

"With the Partnership's recent orders for two 173,400 cubic meter LNG carrier
newbuildings from DSME in South Korea, and options to order up to three
additional vessels, the Partnership is also well positioned for the expected
ramp-up in global LNG supply as several new liquefaction facilities are
scheduled to commence operations in late-2015," Mr. Evensen continued. "The
vessels have manageable tail-weighted shipyard installment payments and, based
on the increased demand for LNG carrier tonnage that is expected to coincide
with the vessel delivery timeframe, we are confident that we will be able to
secure attractive fixed-rate employment for these modern, fuel efficient,
newbuilding vessels which will further contribute to the Partnership's
distributable cash flow growth."

Mr. Evensen continued, "In our conventional tanker segment, during the fourth
quarter, we agreed to amend the time-charter contracts for two of our Suezmax
tankers which will result in a reduced cash flows for 24 months commencing
October 1, 2012. However, we expect that increased cash flow from our recent
LPG joint venture will more than offset any reduction in cash flows from these
vessels during this period. Further to our recent growth transactions, the
Partnership continues to actively bid on new LNG shipping and regasification
projects and review opportunities to acquire quality on-the-water assets. With
approximately $360 million of total liquidity as of December 31, 2012, giving
pro forma effect for the Exmar LPG joint venture, we believe the Partnership
is financially well-positioned for further growth."

Teekay LNG's Fleet

The following table summarizes the Partnership's fleet as of February 15,
2013, including vessels operated through the Exmar LPG BVBA joint venture:

                                         Number of Vessels
                              Owned
                            Vessels In-Chartered Vessels Newbuilds Total
LNG Carrier Fleet          27 ^[i]                    -         2    29
LPG/Multigas Carrier Fleet  17 [ii]            5 ^[iii]   8 [iii]    30
Conventional Tanker Fleet        11                    -         -    11
Total                            55                    5        10    70

[i] The Partnership's ownership interests in these vessels ranges from 33
percent to 100 percent.
[ii]The Partnership's ownership interests in these vessels ranges from 50
percent to 99 percent.
[iii] The Partnership has a 50 percent ownership interests in these vessels.

Financial Summary

The Partnership reported adjusted net income attributable to the partners[1]
(as detailed in Appendix A to this release) of $38.5 million for the quarter
ended December 31, 2012, compared to $29.8 million for the same period of the
prior year. Adjusted net income attributable to the partners excludes a number
of specific items that had the net effect of decreasing net income by $10.3
million and increasing net income by $10.6 million for the three months ended
December 31, 2012 and 2011, respectively, as detailed in AppendixA. Including
these items, the Partnership reported net income attributable to the partners,
on a GAAP basis, of $28.2 million and $40.3 million for the three months ended
December 31, 2012 and 2011, respectively.

For the year ended December 31, 2012, the Partnership reported adjusted net
income attributable to the partners[1] (as detailed in Appendix A to this
release) of $156.3 million, compared to $108.9 million for the same period of
the prior year. Adjusted net income attributable to the partners excludes a
number of specific items that had the net effect of decreasing net income by
$32.6 million and $19.0 million for the years ended December 31, 2012 and
2011, respectively, as detailed in AppendixA. Including these items, the
Partnership reported net income attributable to the partners, on a GAAP basis,
of $123.7 million and $89.8 million for the years ended December 31, 2012 and
2011, respectively.

For accounting purposes, the Partnership is required to recognize the changes
in the fair value of its derivative instruments on its consolidated statements
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 consolidated statements of
income as detailed in footnotes 2 and 3 to the Summary Consolidated Statements
of Income included in this release.

[1] Adjusted net income attributable to the partners is a non-GAAP financial
measure. Please refer to Appendix A to this release for a reconciliation of
this non-GAAP measure to the most directly comparable financial measure under
GAAP and information about specific items affecting net income which are
typically excluded by securities analysts in their published estimates of the
Partnership's financial results.

Operating Results

The following table highlights certain financial information for Teekay LNG's
two segments: the Liquefied Gas segment and the Conventional Tanker segment
(please refer to the "Teekay LNG's Fleet" section of this release above and
Appendix C for further details).

                                 Three Months Ended      Three Months Ended
                                 December 31, 2012        December 31, 2011
                                    (unaudited)              (unaudited)
                               Lique- Convent-          Lique- Convent-
                                 fied    ional            fied    ional
(in thousands of U.S.             Gas   Tanker             Gas   Tanker
Dollars)                      Segment  Segment   Total Segment  Segment  Total
Net voyage revenues[i]         70,545   27,086  97,631  68,966   28,262 97,228
Vessel operating expenses      12,810   10,910  23,720  11,748   10,737 22,485
Depreciation and amortization  17,359    8,590  25,949  16,995    7,372 24,367
CFVO from consolidated
vessels[ii]                    54,285   13,069  67,354  55,468   15,428 70,896
CFVO from equity accounted
vessels[ii], [iii]             38,498        -  38,498  20,005        - 20,005
Total CFVO[ii]                 92,783   13,069 105,852  75,473   15,428 90,901

[i] 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
website 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.

[ii] Cash flow from vessel operations (CFVO) represents income from vessel
operations before (a) depreciation and amortization expense, (b) amortization
of in-process revenue contracts, (c) write down of vessels and (d) adjustments
for direct financing leases to a cash basis. CFVO is included because certain
investors use this data to measure a company's financial performance. CFVO is
not required by GAAP and should not be considered as an alternative to net
income, equity income or any other indicator of the Partnership's performance
required by GAAP. Please see the Partnership's website 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.

[iii] The Partnership's equity accounted investments for the three months
ended December 31, 2012 and 2011 include the Partnership's 40 percent interest
in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the
Partnership's 50 percent interest in the Excalibur and Excelsior Joint
Ventures, which owns one LNG carrier and one regasification unit,
respectively; and the Partnership's 33 percent interest in three LNG carriers
servicing the Angola LNG Project. The Partnership's equity accounted
investment for the three months ended December 31, 2012 also includes the
Partnership's 33 percent interest in one other LNG carrier that was delivered
in early 2012 servicing the Angola LNG Project; and the Partnership's 52
percent interest in MALT LNG Holdings ApS, the joint venture between the
Partnership and Maurbeni Corporation, which acquired six LNG carriers on
February 28, 2012.

Liquefied Gas Segment

Cash flow from vessel operations from the Partnership's Liquefied Gas segment,
excluding equity-accounted vessels, decreased to $54.3 million in the fourth
quarter of 2012 from $55.5 million in the same quarter of the prior year. The
decrease is mainly attributable to higher general and administrative costs
related to an increase in business development activities.

Cash flow from vessel operations from the Partnership's equity-accounted
vessels in the Liquefied Gas segment increased to $38.5 million in the fourth
quarter of 2012 from $20.0 million in the same quarter of the prior year. This
increase was primarily due to the Teekay LNG-Marubeni joint venture's
acquisition of six LNG carriers from A.P. Moller Maersk A/P (the MALT LNG
Carriers) in February 2012 and the acquisition of a 33 percent interest in two
of the Angola LNG carriers from Teekay Corporation between October 2011 and
January 2012.

Conventional Tanker Segment

Cash flow from vessel operations from the Partnership's Conventional Tanker
segment decreased to $13.1 million in the fourth quarter of 2012 from $15.4
million in the same quarter of the prior year, primarily as a result of
amendments for two of the Partnership's Suezmax tankers charter contracts
which temporarily reduces the daily hire rate for each vessel by $12,000 from
October 2012 until September 2014. However, during this period, if Suezmax
spot tanker rates exceed the amended rates, the charterer will pay the
Partnership the excess amount up to a maximum of the original daily charter
rate.

Liquidity

As of December 31, 2012, the Partnership had total liquidity of $495.0 million
(comprised of $113.6 million in cash and cash equivalents and $381.4 million
in undrawn credit facilities), compared to total liquidity of $558.9 million
as of September 30, 2012. The change in liquidity during the fourth quarter of
2012 primarily reflects shipyard installment payments for the two LNG
newbuildings ordered in December 2012. Giving pro forma effect to the
Partnership's equity contribution for the Exmar LPG joint venture transaction,
the Partnership's total liquidity at December 31, 2012 was approximately $360
million.

Conference Call

The Partnership plans to host a conference call on Friday, February 22, 2013
at 11:00 a.m. (ET) to discuss the results for the fourth quarter and fiscal
year of 2012. All unitholders and interested parties are invited to listen to
the live conference call by choosing from the following options:

  *By dialing (866) 322-2356 or (416) 640-3405, if outside North America, and
    quoting conference ID code 7443167.

  *By accessing the webcast, which will be available on Teekay LNG's website
    at www.teekaylng.com (the archive will remain on the web site for a period
    of 30 days).

A supporting Fourth Quarter and Fiscal Year 2012 Earnings Presentation will
also be available at www.teekaylng.com in advance of the conference call start
time.

The conference call will be recorded and made available until Friday, March 1,
2013. This recording can be accessed following the live call by dialing (888)
203-1112 or (647) 436-0148, if outside North America, and entering access code
7443167.

About Teekay LNG Partners L.P.

Teekay LNG Partners is the world's third largest independent owner and
operator of LNG carriers, providing LNG, LPG and crude oil marine
transportation services primarily under long-term, fixed-rate charter
contracts with major energy and utility companies through its interests in 29
LNG carriers (including one LNG regasification unit and two newbuildings), 30
LPG/Multigas carriers (including five chartered-in LPG carriers and eight
newbuildings) and 11 conventional tankers. The Partnership's interests in
these vessels range from 33 to 100 percent. Teekay LNG Partners L.P. is a
publicly-traded master limited partnership (MLP) 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' common units trade on the New York Stock Exchange under
the symbol "TGP".

TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. Dollars, except units outstanding)
                           Three Months Ended                     Year Ended
                    December     September      December      December      December
                         31,           30,           31,           31,           31,
                        2012          2012          2011          2012          2011
                 (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)
VOYAGE REVENUES       97,958        98,723        97,253       392,251       379,975
OPERATING
EXPENSES
Voyage expenses          327           860            25         1,772         1,387
Vessel operating
expenses              23,720        21,992        22,485        86,347        89,046
Depreciation and
amortization          25,949        24,570        24,367        99,825        91,919
General and
administrative         7,273         6,254         5,455        27,149        24,120
Write down of
vessels[1]            29,367             -             -        29,367             -
                      86,636        53,676        52,332       244,460       206,472
Income from
vessel
operations            11,322        45,047        44,921       147,791       173,503
OTHER ITEMS
Equity income[2]      29,634        21,098         8,189        78,866        20,584
Interest expense     (13,265 )     (14,414 )     (13,861 )     (54,211 )     (49,880 )
Interest income          771           850         1,835         3,502         6,687
Realized and
unrealized gain
(loss) on
derivative
instruments[3]        14,373        (9,945 )      (8,780 )     (29,620 )     (63,030 )
Foreign exchange
(loss) gain[4]        (6,255 )      (6,248 )      10,722        (8,244 )      10,310
Other income
(expense) - net          540          (305 )          98         1,058          (818 )
Net income            37,120        36,083        43,124       139,142        97,356
Net income
attributable to:
 Non-controlling
 interest              8,895         3,022         2,777        15,437         7,508
 Partners             28,225        33,061        40,347       123,705        89,848
Limited
partners' units
outstanding:
Weighted-average
number of common
and total units
outstanding -
basic and
diluted           69,683,763    65,882,450    62,885,074    66,328,496    59,147,422
Total number of
units
outstanding at
end of period     69,683,763    69,683,763    64,857,900    69,683,763    64,857,900

[1] The carrying value of three of the Partnership's conventional Suezmax
tankers (the Tenerife Spirit, Algeciras Spirit and Huelva Spirit) was written
down during the three months and year ended December 31, 2012 due to the
expected termination of their time-charter contracts between August 2013 and
April 2014. The estimated fair value was based on a discounted cash flow
approach and such estimates of cash flows were based on existing time-charter
contracts, lease obligations and budgeted operating costs.

[2] Equity income includes unrealized gains (losses) gains on derivative
instruments as detailed in the table below.

                                        Three Months Ended        Year Ended
                             December September   December December December
                             31, 2012  30, 2012   31, 2011 31, 2012 31, 2011
Equity income                  29,634    21,098      8,189   78,866   20,584
Proportionate share of
unrealized gains (losses) on
derivative instruments
included in equity income       9,599      (870 )      158    5,548   (5,956 )
Equity income excluding
unrealized gains (losses) on
derivative instruments         20,035    21,968      8,031   73,318   26,540

[3] The realized (losses) gains relate to the amounts the Partnership actually
paid to settle derivative instruments and the unrealized gains (losses) relate
to the change in fair value of such derivative instruments as detailed in the
table below:

                             Three Months Ended              Year Ended
                       December   September   December   December   December
                       31, 2012    30, 2012   31, 2011   31, 2012   31, 2011
Realized (losses)
gains relating to:
Interest rate swaps      (9,614 )    (9,450 )   (9,795 )  (37,427 )  (40,100 )
Interest rate swaps
terminations                  -           -    (22,560 )        -    (22,560 )
Toledo Spirit
time-charter
derivative contract         945           -        (40 )      907        (93 )
                         (8,669 )    (9,450 )  (32,395 )  (36,520 )  (62,753 )
Unrealized gains
(losses) relating to:
Interest rate swaps      21,442        (295 )   (6,345 )    5,200    (32,237 )
Interest rate swaps
terminations                  -           -     22,560          -     22,560
Toledo Spirit
time-charter
derivative contract       1,600        (200 )    7,400      1,700      9,400
                         23,042        (495 )   23,615      6,900       (277 )
Total realized and
unrealized gains
(losses) derivative
instruments              14,373      (9,945 )   (8,780 )  (29,620 )  (63,030 )

[4] 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 consolidated statements of income.

Foreign exchange (loss) gain includes realized gains relating to the amounts
the Partnership received to settle the Partnership's non-designated cross
currency swap that was entered into as an economic hedge in relation to the
Partnership's Norwegian Kroner (NOK)-denominated unsecured bonds. The
Partnership issued NOK 700 million unsecured bonds in May 2012 maturing in
2017. Foreign exchange (loss) gain also includes unrealized gains (losses)
relating to the change in fair value of such derivative instruments, partially
offset by unrealized gains (losses) on the revaluation of the NOK bonds as
detailed in the table below:

                                 Three Months Ended            Year Ended
                           December   September   December December   December
                           31, 2012    30, 2012   31, 2011 31, 2012   31, 2011
Realized gains on
cross-currency swaps            102         107          -      257          -
Unrealized gains (losses)
on cross-currency swaps       4,516       3,077          -   (2,677 )        -
Unrealized losses on
revaluation of NOK bonds     (3,523 )    (4,828 )        -     (791 )        -
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. Dollars)

                                                 As at       As at       As at
                                              December   September    December
                                                   31,         30,         31,
                                                  2012        2012        2011
                                           (unaudited) (unaudited) (unaudited)
ASSETS
Cash and cash equivalents                      113,577      91,931      93,627
Restricted cash - current                       34,160      31,361           -
Other current assets                            19,244      19,327      18,837
Advances to affiliates                          13,864       3,338      11,922
Restricted cash - long-term                    494,429     496,309     495,634
Vessels and equipment                        1,911,016   1,960,756   2,021,125
Advances on newbuilding contracts               38,624           -           -
Net investments in direct financing leases     403,386     404,981     409,541
Derivative assets                              162,559     167,638     155,259
Investments in and advances to equity
accounted joint ventures                       409,735     388,722     191,448
Other assets                                    39,237      37,668      34,760
Intangible assets                              109,984     113,731     120,950
Goodwill                                        35,631      35,631      35,631
Total Assets                                 3,785,446   3,751,393   3,588,734
LIABILITIES AND EQUITY
Accounts payable, accrued liabilities and
unearned revenue                                59,729      46,019      60,030
Current portion of long-term debt and
capital leases                                 156,761     253,791     131,925
Advances from affiliates and joint venture
partners                                        12,083      11,072      17,400
Long-term debt and capital leases            1,894,166   1,730,220   1,830,353
Derivative liabilities                         296,295     328,930     293,218
Other long-term liabilities                    112,138     111,310     116,099
Equity
Non-controlling interest[1]                     41,294      32,434      26,242
Partners' equity                             1,212,980   1,237,617   1,113,467
Total Liabilities and Total Equity           3,785,446   3,751,393   3,588,734

[1] Non-controlling interest includes a 30 percent equity interest in the
RasGas II project (which owns three LNG carriers), a 31 percent equity
interest in the Tangguh Project (which owns two LNG carriers), a 1 percent
equity interest in the two Kenai LNG carriers, a 1 percent equity interest in
the Excalibur joint venture (which owns one LNG carrier), and a 1 percent
equity interest in the five LPG/Multigas carriers, which in each case the
Partnership does not own.

TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. Dollars)
                                                     Year Ended December 31,
                                                          2012          2011
                                                   (unaudited)   (unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
Net operating cash flow                                192,013       122,046
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt               500,335       600,862
Debt issuance costs                                     (2,065 )      (2,578 )
Scheduled repayments of long-term debt                 (84,666 )    (290,940 )
Prepayments of long-term debt                         (324,274 )    (383,000 )
Scheduled repayments of capital lease obligations
and other long-term liabilities                        (10,161 )     (89,350 )
Proceeds from equity offering, net of offering
costs                                                  182,316       341,178
Advances to and from affiliates                              -        27,048
(Increase) decrease in restricted cash                 (31,217 )      76,249
Cash distributions paid                               (195,909 )    (159,380 )
Purchase of Skaugen Multigas Subsidiary                      -      (114,466 )
Advances to joint venture partners                      (3,600 )           -
Other                                                     (385 )       1,551
Net financing cash flow                                 30,374         7,174
INVESTING ACTIVITIES
Purchase of equity accounted investments              (170,067 )     (57,287 )
Receipts from direct financing leases                    6,155         6,154
Expenditures for vessels and equipment                 (39,894 )     (64,685 )
Other                                                    1,369          (830 )
Net investing cash flow                               (202,437 )    (116,648 )
Increase in cash and cash equivalents                   19,950        12,572
Cash and cash equivalents, beginning of the year        93,627        81,055
Cash and cash equivalents, end of the year             113,577        93,627

TEEKAY LNG PARTNERS L.P.
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. Dollars)

Set forth below is a reconciliation of the Partnership's unaudited adjusted
net income attributable to the partners, a non-GAAP financial measure, to net
income attributable to the partners as determined in accordance with GAAP. The
Partnership believes that, in addition to conventional measures prepared in
accordance with GAAP, certain investors use this information to evaluate the
Partnership's financial performance. The items below are also typically
excluded by securities analysts in their published estimates of the
Partnership's financial results. Adjusted net income attributable to the
partners is intended to provide additional information and should not be
considered a substitute for measures of performance prepared in accordance
with GAAP.

                            Three Months Ended           Year Ended
                   December 31,   December 31,   December 31,   December 31,
                           2012           2011           2012           2011
                    (unaudited)    (unaudited)    (unaudited)    (unaudited)
Net income - GAAP
basis                    37,120         43,124        139,142         97,356
Less:
 Net income
 attributable to
 non-controlling
 interest                (8,895 )       (2,777 )      (15,437 )       (7,508 )
Net income
attributable to
the partners             28,225         40,347        123,705         89,848
Add (subtract)
specific items
affecting net
income:
 Write down of
 vessels[1]              29,367              -         29,367              -
 Unrealized
 foreign exchange
 loss (gain)[2]           6,300        (10,722 )        8,213        (10,310 )
 Unrealized
 (gains) losses
 from derivative
 instruments[3]         (23,042 )      (23,615 )       (6,900 )          277
 Unrealized
 (gains) losses
 from derivative
 instruments and
 other items from
 equity accounted
 investees[4]            (8,849 )          677         (3,721 )        6,790
 Interest rate
 swap cancellation
 costs                        -         22,560              -         22,560
 Other items[5]               -              -              -            949
 Non-controlling
 interests' share
 of items above           6,497            507          5,650         (1,256 )
Total adjustments        10,273        (10,593 )       32,609         19,010
Adjusted net
income
attributable to
the partners             38,498         29,754        156,314        108,858

[1] The carrying value of three of the Partnership's conventional Suezmax
tankers (the Tenerife Spirit, Algeciras Spirit and Huelva Spirit) was written
down during the three months and year ended December 31, 2012 due to the
expected termination of their time-charter contracts between August 2013 and
April 2014. The estimated fair value was based on a discounted cash flow
approach and such estimates of cash flows were based on existing time-charter
contracts, lease obligations and budgeted operating costs.

[2] Unrealized foreign exchange losses (gains) primarily relate to the
Partnership's revaluation of all foreign currency-denominated monetary assets
and liabilities based on the prevailing exchange rate at the end of each
reporting period and unrealized loss on the cross-currency swap economically
hedging the Partnership's NOK bonds and exclude the realized gains relating to
the cross currency swap for the NOK bonds.

[3] Reflects the unrealized (gain) loss due to changes in the mark-to-market
value of interest rate derivative instruments that are not designated as
hedges for accounting purposes.

[4] Reflects the unrealized (gain) loss due to changes in the mark-to-market
value of derivative instruments that are not designated as hedges for
accounting purposes within the Partnership's equity-accounted investments and
$1.1 million, $0.8 million and $0.8 million of acquisition-related costs
during the year ended December 31, 2012, and the three months and the year
ended December 31, 2011, respectively, relating to the acquisition of the six
MALT LNG Carriers. In addition, the three months and the year ended December
31, 2012 each includes a $0.8 million provision relating to a customer claim
relating to a prior year.

[5] Amount for the year ended December 31, 2011 relates to a one-time
management fee associated with the portion of stock-based compensation grants
to Teekay Corporation's former President and Chief Executive Officer that had
not yet vested prior to the date of his retirement on March 31, 2011.

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 income adjusted for depreciation and
amortization expense, non-cash items, estimated maintenance capital
expenditures, unrealized gains and losses from derivatives, deferred 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 GAAP and should not be considered as an alternative to
net income or any other indicator of the Partnership's performance required by
GAAP. The table below reconciles distributable cash flow to net income.

                                     Three Months Ended   Three Months Ended
                                      December 31, 2012    December 31, 2011
                                            (unaudited)          (unaudited)
Net income:                                      37,120               43,124
Add:
  Depreciation and amortization                  25,949               24,367
  Write down of vessels                          29,367                    -
  Partnership's share of equity
  accounted joint ventures' DCF
  before estimated maintenance
  capital expenditures                           27,748               12,359
  Unamortized amount relating to
  swap cancellation costs                             -               21,782
  Unrealized foreign exchange loss
  (gain)                                          6,300              (10,722 )
Less:
  Unrealized gain on derivatives and
  other non-cash items                          (25,089 )            (23,130 )
  Estimated maintenance capital
  expenditures                                  (14,345 )            (12,045 )
  Equity income                                 (29,634 )             (8,189 )
Distributable Cash Flow before
Non-controlling interest                         57,416               47,546
Non-controlling interests' share of
DCF before estimated maintenance
capital expenditures                             (3,817 )             (3,442 )
Distributable Cash Flow                          53,599               44,104
 TEEKAY LNG PARTNERS L.P.
 APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
 (in thousands of U.S. Dollars)

                                       Three Months Ended December 31, 2012
                                                   (unaudited)
                                    Liquefied Gas Conventional Tanker
                                          Segment             Segment    Total
Net voyage revenues[1]                     70,545              27,086   97,631
Vessel operating expenses                  12,810              10,910   23,720
Depreciation and amortization              17,359               8,590   25,949
General and administrative                  4,925               2,348    7,273
Write down of vessels                           -              29,367   29,367
Income (loss) from vessel
operations                                 35,451             (24,129 ) 11,322
                                       Three Months Ended December 31, 2011
                                                   (unaudited)
                                    Liquefied Gas Conventional Tanker
                                          Segment             Segment    Total
Net voyage revenues[1]                     68,966              28,262   97,228
Vessel operating expenses                  11,748              10,737   22,485
Depreciation and amortization              16,995               7,372   24,367
General and administrative                  3,398               2,057    5,455
Income from vessel operations              36,825               8,096   44,921

[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
website 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: future growth opportunities, including the Partnership's
ability to successfully bid for new LNG shipping and regasification projects,
the Partnership's ability to secure long-term contract employment for the DSME
LNG carrier newbuildings and the Partnership's ability to acquire quality
on-the-water assets; increase in the Partnerships distributable cash flow
resulting from newbuildings and joint ventures, including the Partnership's
two DSME LNG carrier newbuildings and Exmar LPG BVBA joint venture; the
ability of cash flow from the Exmar LPG BVBA joint venture to offset the
reduced cash flow in the conventional tanker segment; the success of the
Partnership's joint ventures, including the Exmar LPG BVBA joint venture;
Exmar LPG BVBA's ability to refinance its joint venture fleet and four
newbuildings; the expected delivery dates for the Partnership's newbuildings;
the expected fuel-efficiency and emission levels of the DSME LNG carrier
newbuilding; LNG and LPG shipping market fundamentals, including the future
growth in global LNG supply, the balance of supply and demand of shipping
capacity and shipping charter rates in these sectors; the Partnership's
financial position, including available liquidity; and the Partnership's
ability to secure additional accretive growth opportunities.

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:
availability of LNG shipping LPG shipping, floating storage, regasification
and other growth project opportunities; 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; the Partnership's
ability to secure new contracts through bidding on project tenders and/or
acquire existing on-the-water assets; 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 Teekay LNG fleet; and the inability of the Partnership to renew or replace
long-term contracts on existing vessels or attain fixed-rate long-term
contracts for newbuilding vessels; the Partnership's ability to raise
financing to purchase additional vessels or to pursue other projects; changes
to the amount or proportion of revenues, expenses, or debt service costs
denominated in foreign currencies; competitive dynamics in bidding for
potential LNG or LPG projects; 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, 2011. 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.

Contact Information

Contacts:
Teekay LNG Partners L.P.
Kent Alekson
Investor Relations Enquiries
+1 (604) 609-6442
www.teekaylng.com

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Source: Teekay LNG Partners L.P. via Thomson Reuters ONE
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