GlobeNewswire Inc | Feb 25, 2021 02:00AM EST

February 25, 2021

Highlights

-- GAAP net income attributable to the partners and preferred unitholders of $35.1 million and GAAP net income per common unit of $0.32 in the fourth quarter of 2020; and $87.4 million and $0.73 per common unit, respectively, for fiscal 2020. -- Adjusted net income(1) attributable to the partners and preferred unitholders of $60.0 million and adjusted net income per common unit of $0.61 in the fourth quarter of 2020 (excluding other items listed in Appendix A to this release), and a record high $233.8 million and $2.45 per common unit, respectively, for fiscal 2020. -- Total adjusted EBITDA(1) of $190.2 million in the fourth quarter of 2020; and $757.9 million for fiscal 2020. -- In early-December 2020, secured a fixed-rate charter for the 52 percent-owned Methane Spirit to early-2023. The Partnership's LNG fleet is 97 percent fixed for 2021, and is currently 89 percent fixed for 2022. -- Teekay LNG expects to increase its common unit distributions by 15 percent to $1.15 per common unit, on an annualized basis, commencing with the first quarter's distribution to be paid in May 2021.

HAMILTON, Bermuda, Feb. 25, 2021 (GLOBE NEWSWIRE) -- Teekay GP L.L.C., the general partner (the General Partner) of Teekay LNG Partners L.P. (TeekayLNG or the Partnership) (NYSE: TGP), today reported the Partnerships results for the quarter and year ended December31, 2020.

Consolidated Financial Summary

Three Months Ended Year Ended December September December December December 31, 2020 30, 2020 31, 2019 31, 2020 31, 2019(in thousands ofU.S. Dollars, (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)except per unitdata)GAAP FINANCIAL COMPARISONVoyage revenues 154,076 148,935 148,797 591,103 601,256Income from vessel 65,169 69,597 83,604 226,093 299,253operationsEquity income 15,359 24,346 30,207 72,233 58,819Net incomeattributable to thepartners and 35,142 40,275 67,370 87,357 152,790preferredunitholdersLimited partners?interest in net 0.32 0.38 0.77 0.73 1.59income per commonunitNON-GAAP FINANCIAL COMPARISONTotal adjusted 190,228 186,902 184,168 757,858 684,667EBITDA^(1)Distributable cash 85,033 79,168 71,350 322,248 252,819flow (DCF)^(1)Adjusted net incomeattributable to thepartners and 59,978 58,933 50,342 233,790 168,656preferredunitholders^(1)Limited partners?interest in 0.61 0.59 0.56 2.45 1.79adjusted net incomeper common unit

These are non-GAAP financial measures. Please refer to ?Definitions and Non-GAAP Financial Measures? and the Appendices to this release for(1) definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under United States generally accepted accounting principles (GAAP).

Fourth Quarter of 2020 Compared to Third Quarter of 2020

GAAP net income and non-GAAP adjusted net income attributable to the partners and preferred unitholders were positively impacted for the three months ended December31, 2020, compared to the three months ended September 30, 2020, primarily due to fewer scheduled dry dockings in the fourth quarter of 2020.

GAAP net income attributable to the partners and preferred unitholders was also negatively impacted by write-downs recorded in the fourth quarter of 2020 of four wholly-owned multi-gas carriers by $6.0 million and four, 50 percent-owned liquefied petroleum gas (LPG) carriers by $17.0 million. These decreases to GAAP net income were partially offset by lower unrealized credit loss provisions recorded in the fourth quarter of 2020 compared to the third quarter of 2020.

Fourth Quarter of 2020 Compared to Fourth Quarter of 2019

GAAP net income and non-GAAP adjusted net income attributable to the partners and preferred unitholders were positively impacted for the three months ended December 31, 2020, compared to the same quarter of the prior year, primarily due to: the delivery of liquefied natural gas (LNG) carrier newbuildings, commencement of terminal use payments for the Partnership's 30 percent-owned Bahrain LNG Terminal, higher LPG rates, and lower net interest expense. These increases were partially offset by more scheduled dry dockings during the fourth quarter of 2020 and lower charter rates earned by certain of the Partnership's LNG carriers and in addition, the increases in non-GAAP adjusted net income attributable to the partners and preferred unitholders were partially offset by the sales of two LNG carriers in January 2020.

GAAP net income attributable to the partners and preferred unitholders was also negatively impacted by write-downs recorded in the fourth quarter of 2020 of four wholly-owned multi-gas carriers and four, 50 percent-owned LPG carriers; a gain recognized in the fourth quarter of 2019 upon derecognition of two LNG carriers and reclassification as sales-type leases; and lower unrealized gains on non-designated derivative instruments in the fourth quarter of 2020 compared to the fourth quarter of 2019.

CEO Commentary

For both the fourth quarter and fiscal year 2020, we generated strong earnings and cash flows resulting in the highest ever recorded annual adjusted results for Teekay LNG, commented Mark Kremin, President and Chief Executive Officer of Teekay Gas Group Ltd. During a year which saw extreme volatility in gas prices, LNG shipping rates and equity markets, our strategy of chartering substantially all of our LNG fleet on long-term contracts helped us to achieve consistently strong results throughout the year and to maintain certainty and forward visibility amid the unprecedented uncertainty and volatility that impacted many others in the broader energy space in 2020. Mr. Kremin continued, In 2020, we increased our total adjusted EBITDA(i) and adjusted net income(i) by 11 percent and 39 percent, respectively, over our 2019 fiscal results, while simultaneously reducing our proportionate net debt(ii) by nearly $560 million(iii), or over 10 percent.

Im also pleased to announce our plan to increase our common unit distributions by 15 percent, to $1.15 per common unit per annum, commencing with the first quarters distribution to be paid in May 2021. This represents our third consecutive year of double-digit increases to our distributions, which is supported by not only a record level of adjusted earnings, but also an industry-leading revenue backlog of long-term contracts to a diversified portfolio of strong counterparties. As a result, Teekay LNG's distributions are well-covered, which enables the Partnership to provide an attractive distribution to existing and new investors while also build equity value and financial flexibility through continued balance sheet delevering.

These are non-GAAP financial measures. Please refer to ?Definitions and Non-GAAP Financial Measures? and the Appendices to this release for(i) definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under GAAP.(ii) Including Teekay LNG's proportionate share of net debt in its equity-accounted joint ventures.(iii) Including $260 million of proceeds received from the sale of two LNG carriers in January 2020.

Summary of Recent Events

Chartering Activities

In October 2020, the charterer of the 52 percent-owned LNG carrier Marib Spirit exercised its options to extend the current charter by 14 months at a higher charter rate, extending the vessel's charter coverage to early-2022.

In December 2020, the Partnership's 52 percent-owned joint venture with Marubeni Corporation (the MALT Joint Venture) secured a two-year, fixed-rate charter contract, with a one-year option, for the Methane Spirit which is expected to commence after its current charter contract ends in March 2021.

Financing Activities

In December 2020, the Partnership's 50 percent-owned joint venture with Exmar NV (the Exmar LPG Joint Venture) successfully refinanced its $254 million revolving credit facility and term loan by entering into a new revolving credit facility in the amount of $310 million maturing in December 2023.

On February 8, 2021, the Partnership's 70 percent-owned joint venture with PT Berlian Laju Tanker (the Tangguh Joint Venture), refinanced its $191.5 million term loan which was scheduled to mature in 2021, by entering into a new $191.5million term loan maturing in February 2026.

Operating Results

The following table highlights certain financial information for Teekay LNGs segments: the Liquefied Natural Gas Segment, the Liquefied Petroleum Gas Segment and, until the sale of our last conventional tanker in October 2019, the Conventional Tanker Segment (please refer to the Teekay LNGs Fleet section of this release below and Appendices D and E for further details).

Three Months Ended December 31, 2020 December 31, 2019(in thousands of (unaudited) (unaudited)U.S. Dollars) Liquefied Liquefied Liquefied Liquefied Conventional Natural Petroleum Total Natural Petroleum Tanker Total Gas Gas Gas Gas Segment Segment Segment Segment SegmentGAAP FINANCIAL COMPARISONVoyage revenues 143,071 11,005 154,076 138,436 10,347 14 148,797 Income (loss)from vessel 73,142 (7,973 ) 65,169 85,522 (1,801 ) (117 ) 83,604 operationsEquity income 28,593 (13,234 ) 15,359 28,468 1,739 ? 30,207 (loss)NON-GAAPFINANCIAL COMPARISONConsolidatedadjusted EBITDA^ 107,427 203 107,630 112,547 188 (117 ) 112,618 (i)Adjusted EBITDAfrom 70,958 11,640 82,598 61,454 10,096 ? 71,550 equity-accountedvessels^(i)Total adjusted 178,385 11,843 190,228 174,001 10,284 (117 ) 184,168 EBITDA^(i)

These are non-GAAP financial measures. Please refer to ?Definitions and Non-GAAP Financial Measures? and the Appendices to this release for(i) definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under GAAP.

Liquefied Natural Gas Segment

Income from vessel operations for the LNG segment for the three months ended December31, 2020, compared to the same quarter of the prior year, decreased primarily due to a $14.3 million gain on the derecognition of the WilForce and WilPride LNG carriers as they were reclassified as sales-type leases prior to their sale in January 2020. Consolidated adjusted EBITDA(1) for the LNG segment for the three months ended December31, 2020, compared to the same quarter of the prior year, decreased primarily due to a reduction in earnings upon the sales of the WilForce and WilPride LNG carriers.

Equity income and adjusted EBITDA from equity-accounted vessels(1) for the LNG segment for the three months ended December31, 2020, compared to the same quarter of the prior year, increased primarily due to the deliveries of two ARC7 LNG carrier newbuildings in November and December 2019 to the Partnership's 50 percent-owned joint venture with China LNG (the Yamal LNG Joint Venture) and commencement of terminal use payments in January 2020 to the Partnership's 30 percent-owned joint venture in Bahrain (the Bahrain LNG Joint Venture). These increases were partially offset by lower earnings from the Partnership's 52 percent-owned MALT Joint Venture as a result of lower charter rates earned upon redeployment of the Arwa Spirit, Marib Spirit and Methane Spirit between May and July 2020. In addition, GAAP equity income was negatively impacted by increases in unrealized credit loss provisions in the fourth quarter of 2020 related to the adoption of the new accounting standards on credit losses (Accounting Standards Codification 326: Financial Instruments - Credit Losses (ASC 326)) at the beginning of 2020 and lower unrealized gains on non-designated derivative instruments in the Partnership's equity-accounted joint ventures in the fourth quarter of 2020 compared to fourth quarter of 2019.

Liquefied Petroleum Gas Segment

Loss from vessel operations for the LPG segment for the three months ended December31, 2020, compared to the same quarter of the prior year, was negatively impacted by write-downs recorded in the fourth quarter of 2020 on four multi-gas carriers by $6.0 million.

Consolidated adjusted EBITDA(1) for the LPG segment for the three months ended December31, 2020 was comparable to the same quarter of the prior year.

Equity (loss) income and adjusted EBITDA from equity-accounted vessels(1) for the LPG segment for the three months ended December 31, 2020, compared to the same quarter of the prior year, were positively impacted from higher charter rates earned in the Partnership's 50 percent-owned Exmar LPG Joint Venture. In addition, equity (loss) income for the LPG segment for the three months ended December 31, 2020, compared to the same quarter of the prior year, was negatively impacted by the write-downs of four LPG carriers in the Partnerships 50 percent-owned Exmar LPG Joint Venture by $17.0 million.

Conventional Tanker Segment

There were no results from vessel operations for the conventional tanker segment for the three months ended December31, 2020, as the last of the Partnership's conventional tanker, the Alexander Spirit, was sold in October of 2019.

These are non-GAAP financial measures. Please refer to ?Definitions and Non-GAAP Financial Measures? and the Appendices to this release for(1) definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under GAAP.

Teekay LNG's Fleet

The following table summarizes the Partnerships fleet as of February 1, 2021. In addition, the Partnership owns a 30 percent interest in an LNG regasification terminal in Bahrain.

Number of Vessels Owned and In-Chartered Vessels^(i)LNG Carrier Fleet 47^(ii)LPG/Multi-gas Carrier Fleet 30^(iii)Total 77

(i) Includes vessels leased by the Partnership from third parties and accounted for as finance leases. (ii) The Partnership?s ownership interests in these vessels range from 20 percent to 100 percent. (iii) The Partnership?s ownership interests in these vessels range from 50 percent to 100 percent.

Liquidity

As of December31, 2020, the Partnership had total liquidity of $461.6 million (comprised of $206.8 million in cash and cash equivalents and $254.8 million in undrawn credit facilities) compared to $430.8 million as of September 30, 2020.

Conference Call

The Partnership plans to host a conference call on Thursday, February 25, 2021 at 1:00 p.m. (ET) to discuss the results for the fourth quarter and year ended of 2020. All unitholders and interested parties are invited to listen to the live conference call by choosing from the following options:

-- By dialing 1 (800) 437-2398 or 1 (647) 792-1240, if outside North America, and quoting conference ID code 5369396. -- By accessing the webcast, which will be available on Teekay LNGs website at www.teekay.com (the archive will remain on the website for a period of one year).

An accompanying Fourth Quarter and Fiscal Year of 2020 Earnings Presentation will also be available at www.teekay.com in advance of the conference call start time.

About Teekay LNG Partners L.P.

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 an LNG regasification terminal. Teekay LNG Partners 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 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 HamiltonTel: +1 (604) 609-2963Website: www.teekay.com

Definitions and Non-GAAP Financial Measures

This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the SEC. These non-GAAP financial measures which include Adjusted Net Income Attributable to the Partners and Preferred Unitholders, Distributable Cash Flow and Adjusted EBITDA, are intended to provide additional information and should not be considered substitutes for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized meanings across companies, and may not be comparable to similar measures presented by other companies. These non-GAAP measures are used by management, and the Partnership believes that these supplementary metrics assist investors and other users of its financial reports in comparing financial and operating performance of the Partnership across reporting periods and with other companies.

Non-GAAP Financial Measures

Adjusted EBITDA represents net income before interest, taxes, and depreciation and amortization and is adjusted to exclude certain items whose timing or amount cannot be reasonably estimated in advance or that are not considered representative of core operating performance. Such adjustments include unrealized credit loss provisions, unrealized gains or losses on non-designated derivative instruments, write-down and gains or losses on sales of vessels, foreign currency exchange gains or losses, adjustments for direct financing and sales-type leases to a cash basis, and certain other income or expenses. Adjusted EBITDA also excludes realized gains or losses on interest rate swaps as management, in assessing the Partnership's performance, views these gains or losses as an element of interest expense and realized gains or losses on derivative instruments resulting from amendments or terminations of the underlying instruments. Consolidated Adjusted EBITDA represents Adjusted EBITDA from vessels that are consolidated on the Partnership's financial statements. Adjusted EBITDA from Equity-Accounted Vessels represents the Partnership's proportionate share of Adjusted EBITDA from its equity-accounted vessels. The Partnership does not have the unilateral ability to determine whether the cash generated by its equity-accounted vessels is retained within the entity in which the Partnership holds the equity-accounted investments or distributed to the Partnership and other owners. In addition, the Partnership does not control the timing of any such distributions to the Partnership and other owners. Adjusted EBITDA is a non-GAAP financial measure used by certain investors and management to measure the operational performance of companies. Please refer to Appendices C and E of this release for reconciliations of Adjusted EBITDA to net income and equity income, respectively, which are the most directly comparable GAAP measures reflected in the Partnerships consolidated financial statements.

Adjusted Net Income Attributableto the Partners and Preferred Unitholders excludes items of income or loss from GAAP net income that are typically excluded by securities analysts in their published estimates of the Partnerships financial results. The Partnership believes that certain investors use this information to evaluate the Partnerships financial performance, as does management. Please refer to Appendix A of this release for a reconciliation of this non-GAAP financial measure to net income, and refer to footnote (3) of the Consolidated Statements of Income for a reconciliation of adjusted equity income to equity income, the most directly comparable GAAP measure reflected in the Partnerships consolidated financial statements.

Distributable Cash Flow (DCF) represents GAAP net income adjusted for depreciation and amortization expense, deferred income tax and other non-cash items, estimated maintenance capital expenditures, unrealized gains and losses from non-designated derivative instruments, unrealized credit loss provisions, distributions relating to equity financing of newbuilding installments, distributions relating to preferred units, adjustments for direct financing and sales-type leases to a cash basis, unrealized foreign currency exchange gains or losses, write-downs of vessels, gains or losses on sales of vessels, and the Partnerships proportionate share of such items in its equity-accounted for investments. Maintenance capital expenditures represent those capital expenditures required to maintain over the long-term the operating capacity of, or the revenue generated by, the Partnerships capital assets. DCF is a quantitative standard used in the publicly-traded partnership investment community and by management to assist in evaluating financial performance. Please refer to Appendix B of this release for a reconciliation of this non-GAAP financial measure to net income, the most directly comparable GAAP measure reflected in the Partnerships consolidated financial statements.

Teekay LNG Partners L.P. Consolidated Statements of Income(in thousands of U.S. Dollars, except unit and per unit data)

Three Months Ended Year Ended December 31, September December 31, December 31, December 31, 30, 2020 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Voyage revenues 154,076 148,935 148,797 591,103 601,256 Voyage expenses (5,798 ) (3,950 ) (4,628 ) (17,394 ) (21,387 )Vessel operating (31,243 ) (30,642 ) (30,706 ) (116,396 ) (111,585 )expensesTime-charter (6,294 ) (5,980 ) (5,987 ) (23,564 ) (19,994 )hire expensesDepreciation and (32,883 ) (32,601 ) (33,053 ) (129,752 ) (136,765 )amortizationGeneral andadministrative (6,689 ) (6,165 ) (4,829 ) (26,904 ) (22,521 )expensesWrite-down andgain on sales of (6,000 ) ? 14,349 (51,000 ) 13,564 vessels^(1)Restructuring ? ? (339 ) ? (3,315 )charges^(2)Income fromvessel 65,169 69,597 83,604 226,093 299,253 operations Equity income^ 15,359 24,346 30,207 72,233 58,819 (3)Interest expense (30,431 ) (30,528 ) (40,712 ) (132,806 ) (164,521 )Interest income 1,411 1,406 922 6,884 3,985 Realized andunrealized(loss) gain on (3,020 ) (1,327 ) 4,352 (33,334 ) (13,361 )non-designatedderivativeinstruments^(4)Foreign currencyexchange loss^ (6,618 ) (7,853 ) (4,545 ) (21,356 ) (9,640 )(5)Other expense^ (1,721 ) (14,149 ) (1,767 ) (16,910 ) (2,454 )(6)Net incomebefore income 40,149 41,492 72,061 100,804 172,081 tax expenseIncome tax (1,364 ) (1,420 ) (985 ) (3,492 ) (7,477 )expenseNet income 38,785 40,072 71,076 97,312 164,604 Non-controllinginterest in net 3,643 (203 ) 3,706 9,955 11,814 income (loss)Preferredunitholders' 6,427 6,425 6,426 25,702 25,702 interest in netincomeGeneralpartner's 504 595 1,218 1,023 2,542 interest in netincomeLimitedpartners? 28,211 33,255 59,726 60,632 124,546 interest in netincomeLimitedpartners'interest in net income percommon unit:? Basic 0.32 0.38 0.77 0.73 1.59 ? Diluted 0.32 0.38 0.77 0.73 1.59 Weighted-averagenumber of common unitsoutstanding:? Basic 86,951,234 86,951,234 77,509,379 83,313,097 78,177,189 ? Diluted 87,077,496 87,041,046 77,615,829 83,419,004 78,268,412 Total number ofcommon units 86,951,234 86,951,234 77,509,339 86,951,234 77,509,339 outstanding atend of period

During the three months and year ended December 31, 2020, the Partnership wrote-down its seven wholly-owned multi-gas carriers to their estimated fair values. The total impairment charges of $6.0 million and $51.0 million were included in write-down of vessels and gain on sales of vessels for the three months and year ended December 31, 2020,(1) respectively. In December 2019, the Partnership recognized a gain of $14.3 million for the three months and year ended December 31, 2019 on derecognition of two LNG carriers on charter to Awilco LNG ASA as they were reclassified as sales-type leases. For the year ended December 31, 2019, the Partnership recorded a write-down of $0.8 million on the Alexander Spirit conventional tanker, which was sold in October 2019. In January 2019, the Toledo Spirit conventional tanker was sold and as a(2) result of the sale, the Partnership recorded restructuring charges relating to seafarer severance costs of $0.3 million and $3.3 million for the three months and year ended December 31, 2019, respectively. The Partnership?s proportionate share of items within equity income as identified in Appendix A of this release are detailed in the table below. By excluding these items from equity income, the Partnership believes the(3) resulting adjusted equity income is a normalized amount that can be used to better evaluate the financial performance of the Partnership?s equity-accounted investments. Adjusted equity income is a non-GAAP financial measure.

Three Months Ended Year Ended December September December December December 31, 30, 31, 31, 31, 2020 2020 2019 2020 2019Equity income 15,359 24,346 30,207 72,233 58,819 Proportionate share ofunrealized (gain) loss on (4,214 ) (2,680 ) (6,271 ) 19,116 8,341 non-designated interest rateswapsProportionate share of 17,000 ? ? 17,000 ? write-down of vesselsProportionate share ofunrealized credit loss 2,989 7,099 ? 18,645 ? provisions^(a)Proportionate share of other (669 ) 1,167 1,436 321 2,828 itemsEquity income adjusted for items 30,465 29,932 25,372 127,315 69,988 in Appendix A

(a) Related to adoption of new accounting standard ASC 326 effective January 1, 2020. The realized losses on non-designated derivative instruments relate to the amounts the Partnership actually paid to settle(4) non-designated derivative instruments and the unrealized gains (losses) on non-designated derivative instruments relate to the change in fair value of such non-designated derivative instruments, as detailed in the table below:

Three Months Ended Year Ended December September December December December 31, 30, 31, 31, 31, 2020 2020 2019 2020 2019Realized losses relating to: Interest rate swap agreements (5,106 ) (4,947 ) (2,683 ) (16,626 ) (10,081 )Foreign currency forward ? ? (147 ) (241 ) (147 )contracts (5,106 ) (4,947 ) (2,830 ) (16,867 ) (10,228 )Unrealized gains (losses) relating to:Interest rate swap agreements 2,086 3,620 6,849 (16,669 ) (2,891 )Foreign currency forward ? ? 333 202 (202 )contractsToledo Spirit time-charter ? ? ? ? (40 )derivative 2,086 3,620 7,182 (16,467 ) (3,133 )Total realized and unrealized(losses) gains on (3,020 ) (1,327 ) 4,352 (33,334 ) (13,361 )non-designated derivativeinstruments

For accounting purposes, the Partnership is required to revalue all foreign currency-denominated monetary assets and liabilities based on the prevailing exchange rates at the end of each reporting period. This(5) 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 currency exchange loss includes realized (losses) gains relating to the amounts the Partnership paid to settle the Partnership?s Norwegian Krone (NOK) denominated unsecured bonds and the associated non-designated cross currency swaps that were entered into as economic hedges in relation to the NOK denominated bonds. Foreign currency exchange loss also includes unrealized gains (losses) relating to the change in fair value of such derivative instruments and unrealized gain (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, 30, 31, 31, 31, 2020 2020 2019 2020 2019Realized losses on (1,672 ) (1,669 ) (1,019 ) (6,588 ) (5,061 )cross-currency swapsRealized losses on ? ? ? (33,844 ) ? cross-currency swaps maturityRealized gains on repurchase ? ? ? 33,844 ? of NOK bondsUnrealized gains (losses) on 29,001 1,490 12,579 26,832 (13,239 )cross currency swapsUnrealized (losses) gains on (28,694 ) (1,836 ) (11,877 ) (30,351 ) 5,810 revaluation of NOK bonds

Includes unrealized credit loss provisions of $1.5 million, $14.4 million and $16.1 million for the three months ended December 31, 2020,(6) three months ended September 30, 2020 and for the year ended December 31, 2020, respectively, related to the Partnership's adoption of ASC 326 effective January 1, 2020.

Teekay LNG Partners L.P. Consolidated Balance Sheets (in thousands of U.S. Dollars)

As at As at As at December September December 31, 30, 31, 2020 2020 2019 (unaudited) (unaudited) (unaudited)ASSETS Current Cash and cash equivalents 206,762 201,036 160,221 Restricted cash ? current 8,358 11,224 53,689 Accounts receivable 7,631 6,753 13,460 Prepaid expenses 9,259 9,706 6,796 Current portion of derivative assets ? ? 355 Current portion of net investments in 13,969 13,762 273,986 direct financing and sales-type leases, netCurrent portion of advances to 10,991 ? ? equity-accounted joint ventures, netAdvances to affiliates 4,924 1,953 5,143 Other current assets 237 237 238 Total current assets 262,131 244,671 513,888 Restricted cash ? long-term 42,823 42,577 39,381 Vessels and equipment At cost, less accumulated depreciation 1,220,355 1,244,123 1,335,397 Vessels related to finance leases, at cost, 1,654,814 1,664,059 1,691,945 less accumulated depreciationOperating lease right-of-use asset 20,750 24,179 34,157 Total vessels and equipment 2,895,919 2,932,361 3,061,499 Investments in and advances to 1,056,792 1,092,724 1,155,316 equity-accounted joint ventures, netNet investments in direct financing and 500,101 508,561 544,823 sales-type leases, netOther assets 22,382 20,025 14,738 Derivative assets 4,505 ? 1,834 Intangible assets ? net 34,510 36,724 43,366 Goodwill 34,841 34,841 34,841 Total assets 4,854,004 4,912,484 5,409,686 LIABILITIES AND EQUITY Current Accounts payable 4,883 2,319 5,094 Accrued liabilities 81,706 84,975 76,752 Unearned revenue 30,254 32,685 28,759 Current portion of long-term debt 250,508 291,720 393,065 Current obligations related to finance 71,932 71,441 69,982 leasesCurrent portion of operating lease 14,003 13,841 13,407 liabilitiesCurrent portion of derivative liabilities 56,925 35,616 38,458 Advances from affiliates 11,047 13,970 7,003 Total current liabilities 521,258 546,567 632,520 Long-term debt 1,221,705 1,201,909 1,438,331 Long-term obligations related to finance 1,268,990 1,287,044 1,340,922 leasesLong-term operating lease liabilities 6,747 10,338 20,750 Other long-term liabilities 56,063 81,991 51,006 Derivative liabilities 32,971 53,088 49,182 Total liabilities 3,107,734 3,180,937 3,532,711 Equity Limited partners ? common units 1,465,408 1,459,599 1,543,598 Limited partners ? preferred units 285,159 285,159 285,159 General partner 46,182 46,081 50,241 Accumulated other comprehensive loss (103,836 ) (111,967 ) (57,312 )Partners' equity 1,692,913 1,678,872 1,821,686 Non-controlling interest 53,357 52,675 55,289 Total equity 1,746,270 1,731,547 1,876,975 Total liabilities and total equity 4,854,004 4,912,484 5,409,686

Teekay LNG Partners L.P.Consolidated Statements of Cash Flows(in thousands of U.S. Dollars)

Year Ended December December 31, 31, 2020 2019 (unaudited) (unaudited)Cash and cash equivalents provided by (used for) OPERATING ACTIVITIES Net income 97,312 164,604 Non-cash and non-operating items: Unrealized loss on non-designated derivative 16,467 3,133 instrumentsDepreciation and amortization 129,752 136,765 Write-down and (gain) on sales of vessels 51,000 (13,564 )Unrealized foreign currency exchange loss including theeffect of settlement upon maturity of cross currency 16,194 2,805 swapsEquity income, net of distributions received $71,758 (475 ) (18,516 )(2019 ? $40,303)Amortization of deferred financing issuance costs 5,788 8,135 included in interest expenseChange in unrealized credit loss provisions included in 16,075 ? other expenseOther non-cash items 7,161 7,634 Change in non-cash operating assets and liabilities: Receipts from direct financing and sales-type leases 274,562 17,073 Expenditures for dry docking (5,259 ) (12,358 )Other non-cash operating assets and liabilities 4,928 3,218 Net operating cash flow 613,505 298,929 FINANCING ACTIVITIES Proceeds from issuance of long-term debt 604,050 186,566 Scheduled repayments of long-term debt and settlement (256,085 ) (132,627 )of related swapsPrepayments of long-term debt (752,061 ) (188,787 )Financing issuance costs (5,111 ) (1,149 )Proceeds from financing related to sales and leaseback ? 317,806 of vesselsScheduled repayments of obligations related to finance (69,982 ) (71,726 )leasesExtinguishment of obligations related to finance leases ? (111,617 )Repurchase of common units (15,635 ) (25,728 )Cash distributions paid (104,397 ) (82,379 )Dividends paid to non-controlling interests (5,940 ) (90 )Acquisition of non-controlling interest in certain of (2,219 ) ? the Partnership's subsidiariesNet financing cash flow (607,380 ) (109,731 )INVESTING ACTIVITIES Expenditures for vessels and equipment, net of warranty (10,482 ) (97,895 )settlementCapital contributions and advances to equity-accounted (991 ) (72,391 )joint venturesProceeds from repayments of advances to 10,000 ? equity-accounted joint venturesProceeds from sales of vessels ? 11,515 Net investing cash flow (1,473 ) (158,771 )Increase in cash, cash equivalents and restricted cash 4,652 30,427 Cash, cash equivalents and restricted cash, beginning 253,291 222,864 of the yearCash, cash equivalents and restricted cash, end of the 257,943 253,291 year

Teekay LNG Partners L.P.Appendix A - Reconciliation of Non-GAAP Financial MeasuresAdjusted Net Income(in thousands of U.S. Dollars)

Three Months Ended Year Ended December 31, September December 31, December 31, 30, 2020 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Net income ? GAAP 38,785 40,072 71,076 97,312 164,604 basisLess: net (income)loss attributable to (3,643 ) 203 (3,706 ) (9,955 ) (11,814 )non-controllinginterestsNet incomeattributable to the 35,142 40,275 67,370 87,357 152,790 partners and preferredunitholdersAdd (subtract)specific items affecting net income:Write-down and (gain)on sales of vessels^ 6,000 ? (14,349 ) 51,000 (13,564 )(1)Restructuring charges^ ? ? 339 ? 3,315 (^2^)Foreign currency 4,944 6,184 3,436 14,766 4,021 exchange losses^(3)Unrealized credit lossprovisions, unrealizedgains and losses onnon-designated 15,106 5,586 (4,835 ) 55,082 11,169 derivativeinstrumentsand other items fromequity-accountedinvestees^(^4^)Unrealized (gains)losses onnon-designated (2,086 ) (3,620 ) (7,182 ) 16,467 3,133 derivative instruments^(5)Unrealized credit lossprovisions and other 174 14,397 5,046 12,852 8,461 items^(6)Non-controllinginterests? share of 698 (3,889 ) 517 (3,734 ) (669 )items above^(^7)Total adjustments 24,836 18,658 (17,028 ) 146,433 15,866 Adjusted net incomeattributable to the 59,978 58,933 50,342 233,790 168,656 partners and preferredunitholders Preferred unitholders'interest in adjusted 6,427 6,425 6,426 25,702 25,702 net incomeGeneral partner'sinterest in adjusted 941 923 878 3,824 2,859 net incomeLimited partners?interest in adjusted 52,610 51,585 43,038 204,264 140,095 net incomeLimited partners?interest in adjusted 0.61 0.59 0.56 2.45 1.79 net income per commonunit, basicWeighted-averagenumber of common units 86,951,234 86,951,234 77,509,379 83,313,097 78,177,189 outstanding, basic

(1) See Note 1 to the Consolidated Statements of Income included in this release for further details. (2) See Note 2 to the Consolidated Statements of Income included in this release for further details. Foreign currency exchange losses 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(3) reporting period and unrealized losses (gains) on the cross-currency swaps economically hedging the Partnership?s NOK bonds. This amount excludes the realized losses relating to the cross currency swaps for the NOK bonds. See Note 5 to the Consolidated Statements of Income included in this release for further details. Reflects the proportionate share of write-down of vessels, unrealized credit loss provisions and unrealized gains or losses due to changes in(4) the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes in the Partnership's equity-accounted investees. See Note 3 to the Consolidated Statements of Income included in this release for further details. Reflects the unrealized (gains) losses due to changes in the mark-to-market value of the Partnership's derivative instruments that are(5) not designated as hedges for accounting purposes. See Note 4 to the Consolidated Statements of Income included in this release for further details. For the three months ended December 31, 2020, three months ended September 30, 2020 and for the year ended December 31, 2020, includes(6) unrealized credit loss provisions of $1.5 million, $14.4 million and $16.1 million, respectively, related to the Partnership's adoption of ASC 326 effective January 1, 2020. Items affecting net income include items from the Partnership?s consolidated non-wholly-owned subsidiaries. The specific items affecting net income are analyzed to determine whether any of the amounts originated from a consolidated non-wholly-owned subsidiary. Each amount that originates from a consolidated non-wholly-owned subsidiary is(7) multiplied by the non-controlling interests? percentage share in this subsidiary to arrive at the non-controlling interests? share of the amount. The amount identified as ?non-controlling interests? share of items above? in the table above is the cumulative amount of the non-controlling interests? proportionate share of the other specific items affecting net income listed in the table.

Teekay LNG Partners L.P.Appendix B - Reconciliation of Non-GAAP Financial Measures Distributable Cash Flow (DCF)(in thousands of U.S. Dollars, except units outstanding and per unit data)

Three Months Ended Year Ended December 31, September December 31, December 31, 30, 2020 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Net income 38,785 40,072 71,076 97,312 164,604 Add: Partnership?sshare ofequity-accountedjoint ventures'DCF net of 38,511 38,065 32,514 158,843 101,637 estimatedmaintenancecapitalexpenditures^(1)Depreciation and 32,883 32,601 33,053 129,752 136,765 amortizationWrite-down and(gain) on sales 6,000 ? (14,349 ) 51,000 (13,564 )of vesselsForeign currency 4,944 6,184 3,436 14,766 4,021 exchange lossDeferred incometax and other 3,723 (709 ) 992 4,383 5,674 non-cash itemsDirect financeand sale-typelease paymentsreceived in 3,578 3,502 10,310 14,241 21,636 excess of revenuerecognized andother adjustmentsUnrealized credit 1,518 14,397 ? 16,075 ? loss provisionsDistributionsrelating to ? ? 886 ? 4,190 equity financingof newbuildingsSubtract: Unrealized(gains) losses onnon-designated (2,086 ) (3,620 ) (7,182 ) 16,467 3,133 derivativeinstrumentsDistributionsrelating to (6,427 ) (6,425 ) (6,426 ) (25,702 ) (25,702 )preferred unitsEstimatedmaintenance (14,683 ) (14,683 ) (17,411 ) (58,536 ) (69,404 )capitalexpendituresEquity income (15,359 ) (24,346 ) (30,207 ) (72,233 ) (58,819 )DistributableCash Flow before 91,387 85,038 76,692 346,368 274,171 non-controllinginterestNon-controllinginterests? shareof DCF beforeestimated (6,354 ) (5,870 ) (5,342 ) (24,120 ) (21,352 )maintenancecapitalexpendituresDistributable 85,033 79,168 71,350 322,248 252,819 Cash FlowAmount of cashdistributionsattributable to (389 ) (389 ) (301 ) (1,578 ) (1,211 )the GeneralPartnerLimited partners'Distributable 84,644 78,779 71,049 320,670 251,608 Cash FlowWeighted-averagenumber of commonunits 86,951,234 86,951,234 77,509,379 83,313,097 78,177,189 outstanding,basicDistributableCash Flow per 0.97 0.91 0.92 3.85 3.22 limited partnercommon unit

The estimated maintenance capital expenditures relating to the Partnership?s share of equity-accounted joint ventures were $15.4(1) million, $15.4 million and $13.4 million for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively, and $61.2 million and $47.0 million for the years ended December 31, 2020 and 2019, respectively.

Teekay LNG Partners L.P.Appendix C - Reconciliation of Non-GAAP Financial MeasuresTotal Adjusted EBITDA (in thousands of U.S. Dollars)

Three Months Ended Year Ended December September December December 31, 31, 30, 31, 2020 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Net income 38,785 40,072 71,076 97,312 164,604 Depreciation and 32,883 32,601 33,053 129,752 136,765 amortizationInterest expense,net of interest 29,020 29,122 39,790 125,922 160,536 incomeIncome tax expense 1,364 1,420 985 3,492 7,477 EBITDA 102,052 103,215 144,904 356,478 469,382 Add (subtract)specific income statement itemsaffecting EBITDA:Foreign currency 6,618 7,853 4,545 21,356 9,640 exchange lossOther expense 1,721 14,149 1,767 16,910 2,454 Equity income (15,359 ) (24,346 ) (30,207 ) (72,233 ) (58,819 )Realized andunrealized loss(gain) on 3,020 1,327 (4,352 ) 33,334 13,361 non-designatedderivativeinstrumentsWrite-down and(gain) on sales of 6,000 ? (14,349 ) 51,000 (13,564 )vesselsDirect finance andsale-type leasepayments receivedin excess of 3,578 3,502 10,310 14,241 21,636 revenue recognizedandotheradjustmentsConsolidated 107,630 105,700 112,618 421,086 444,090 adjusted EBITDAAdjusted EBITDAfromequity-accounted 82,598 81,202 71,550 336,772 240,577 vessels (SeeAppendix E)Total adjusted 190,228 186,902 184,168 757,858 684,667 EBITDA

Teekay LNG Partners L.P.Appendix D - Reconciliation of Non-GAAP Financial MeasuresConsolidated Adjusted EBITDA by Segment(in thousands of U.S. Dollars)

Year Ended Three Months Ended December 31, 2020 December 31, 2020 (unaudited) (unaudited) Liquefied Liquefied Conventional Natural Petroleum Tanker Total Total Gas Gas Segment Segment SegmentVoyage revenues 143,071 11,005 ? 154,076 591,103 Voyage expenses (747 ) (5,051 ) ? (5,798 ) (17,394 )Vessel operating (26,010 ) (5,233 ) ? (31,243 ) (116,396 )expensesTime-charter hire (6,294 ) ? ? (6,294 ) (23,564 )expensesDepreciation and (30,707 ) (2,176 ) ? (32,883 ) (129,752 )amortizationGeneral and (6,171 ) (518 ) ? (6,689 ) (26,904 )administrative expensesWrite-down of vessels ? (6,000 ) ? (6,000 ) (51,000 )Income (loss) from 73,142 (7,973 ) ? 65,169 226,093 vessel operationsDepreciation and 30,707 2,176 ? 32,883 129,752 amortizationWrite-down of vessels ? 6,000 ? 6,000 51,000 Direct finance andsales-type leasepayments received in 3,578 ? ? 3,578 14,241 excess of revenuerecognizedand otheradjustmentsConsolidated adjusted 107,427 203 ? 107,630 421,086 EBITDA Year Ended Three Months Ended December 31, 2019 December 31, 2019 (unaudited) (unaudited) Liquefied Liquefied Conventional Natural Petroleum Tanker Total Total Gas Gas Segment Segment SegmentVoyage revenues 138,436 10,347 14 148,797 601,256 Voyage (expenses) (57 ) (4,573 ) 2 (4,628 ) (21,387 )recoveriesVessel operating (25,363 ) (5,102 ) (241 ) (30,706 ) (111,585 )expensesTime-charter hire (5,987 ) ? ? (5,987 ) (19,994 )expensesDepreciation and (31,064 ) (1,989 ) ? (33,053 ) (136,765 )amortizationGeneral andadministrative (4,392 ) (484 ) 47 (4,829 ) (22,521 )(expenses) recoveriesGain on sales and 14,349 ? ? 14,349 13,564 write-down of vesselsRestructuring (charges) (400 ) ? 61 (339 ) (3,315 )recoveriesIncome (loss) from 85,522 (1,801 ) (117 ) 83,604 299,253 vessel operationsDepreciation and 31,064 1,989 ? 33,053 136,765 amortizationGain on sales and (14,349 ) ? ? (14,349 ) (13,564 )write-down of vesselsDirect finance andsales-type leasepayments received in 10,310 ? ? 10,310 21,636 excess of revenuerecognizedand otheradjustmentsConsolidated adjusted 112,547 188 (117 ) 112,618 444,090 EBITDA

Teekay LNG Partners L.P. Appendix E - Reconciliation of Non-GAAP Financial MeasuresAdjusted EBITDA from Equity-Accounted Vessels(in thousands of U.S. Dollars)

Three Months Ended December 31, 2020 December 31, 2019 (unaudited) (unaudited) At Partnership's At Partnership's 100% Portion^(1) 100% Portion^(1)Voyage revenues 247,876 107,172 218,416 97,617 Voyage expenses (3,886 ) (1,809 ) (1,567 ) (788 )Vessel operating expenses,time-charter hire expenses and (72,680 ) (31,726 ) (71,018 ) (31,535 )general and administrativeexpensesDepreciation and amortization (23,748 ) (12,339 ) (28,528 ) (13,852 )Write-down of vessels (34,000 ) (17,000 ) ? ? Income from vessel operations 113,562 44,298 117,303 51,442 of equity-accounted vesselsNet interest expense (66,314 ) (26,832 ) (61,932 ) (25,641 )Income tax expense (2,863 ) (1,080 ) (200 ) (107 )Other items including realizedand unrealized (losses) gainson derivative instruments and (4,485 ) (1,027 ) 12,743 4,513 unrealized credit lossprovisions^(2)Net income / equity income of 39,900 15,359 67,914 30,207 equity-accounted vesselsNet income / equity income of 65,903 28,593 64,274 28,468 equity-accounted LNG vesselsNet (loss) income / equity(loss) income of (26,003 ) (13,234 ) 3,640 1,739 equity-accounted LPG vessels Net income / equity income of 39,900 15,359 67,914 30,207 equity-accounted vesselsDepreciation and amortization 23,748 12,339 28,528 13,852 Net interest expense 66,314 26,832 61,932 25,641 Income tax expense 2,863 1,080 200 107 EBITDA from equity-accounted 132,825 55,610 158,574 69,807 vessels Add (subtract) specific incomestatement items affecting EBITDA:Other items including realizedand unrealized losses (gains)on derivative instruments and 4,485 1,027 (12,743 ) (4,513 )unrealized credit lossprovisions^(2)Write-down of vessels 34,000 17,000 ? ? Direct finance and sale-typelease payments received in 27,387 9,917 19,286 7,212 excess of revenue recognizedAmortization of in-process (1,759 ) (956 ) (1,758 ) (956 )contractsAdjusted EBITDA from 196,938 82,598 163,359 71,550 equity-accounted vesselsAdjusted EBITDA from 173,657 70,958 143,164 61,454 equity-accounted LNG vesselsAdjusted EBITDA from 23,281 11,640 20,195 10,096 equity-accounted LPG vessels

The Partnership's equity-accounted vessels for the three months ended December31, 2020 and 2019 include: the Partnership?s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership?s 50 percent ownership interest in the Partnership?s joint venture with Exmar NV (the Excalibur Joint Venture), which owns one LNG carrier; the Partnership?s 33 percent ownership interest in four LNG carriers servicing the Angola LNG project; the(1) Partnership?s 52 percent ownership interest in the MALT Joint Venture, which owns six LNG carriers; the Partnership?s 50 percent ownership interest in Exmar LPG BVBA, which owns and in-charters 23 LPG carriers; the Partnership?s ownership interest ranging from 20 to 30 percent in four LNG carriers chartered to Shell (the Pan Union Joint Venture); the Partnership?s 50 percent ownership interest in six ARC7 LNG carriers in the Yamal LNG Joint Venture; and the Partnership's 30 percent ownership interest in the Bahrain LNG Joint Venture, which owns an LNG receiving and regasification terminal in Bahrain. (2) Unrealized credit loss provisions relate to the Partnership's adoption of ASC 326 effective January 1, 2020.

Year Ended December 31, 2020 December 31, 2019 (unaudited) (unaudited) At Partnership's At Partnership's 100% Portion^(1) 100% Portion^(1)Voyage revenues 1,007,442 435,299 767,026 334,218 Voyage expenses (10,876 ) (5,168 ) (10,807 ) (5,359 )Vessel operating expenses,time-charter hire expensesand (290,270 ) (127,684 ) (247,070 ) (109,063 )general and administrativeexpensesDepreciation and (100,969 ) (51,162 ) (114,610 ) (55,340 )amortizationWrite-down of vessels (34,000 ) (17,000 ) ? ? Income from vesseloperations of 571,327 234,285 394,539 164,456 equity-accounted vesselsNet interest expense (277,038 ) (111,809 ) (224,635 ) (91,394 )Income tax expense (3,685 ) (1,504 ) (3,683 ) (1,420 )Other items includingrealized and unrealizedlosses on (151,821 ) (48,739 ) (41,197 ) (12,823 )derivative instruments andunrealized credit lossprovisions^(2)Net income / equity income 138,783 72,233 125,024 58,819 of equity-accounted vesselsNet income / equity incomeof equity-accounted LNG 151,858 79,244 125,944 59,600 vesselsNet loss / equity loss of (13,075 ) (7,011 ) (920 ) (781 )equity-accounted LPG vessels Net income / equity income 138,783 72,233 125,024 58,819 of equity-accounted vesselsDepreciation and 100,969 51,162 114,610 55,340 amortizationNet interest expense 277,038 111,809 224,635 91,394 Income tax expense 3,685 1,504 3,683 1,420 EBITDA from equity-accounted 520,475 236,708 467,952 206,973 vessels Add (subtract) specificincome statement items affecting EBITDA:Other items includingrealized and unrealizedlosses on derivative 151,821 48,739 41,197 12,823 instruments and unrealizedcredit loss provisions^(2)Write-down of vessels 34,000 17,000 ? ? Direct finance and sale-typelease payments received in 105,496 38,117 67,807 24,574 excess of revenue recognizedAmortization of in-process (6,974 ) (3,792 ) (6,974 ) (3,793 )contractsAdjusted EBITDA from 804,818 336,772 569,982 240,577 equity-accounted vesselsAdjusted EBITDA from 720,137 294,435 499,176 205,181 equity-accounted LNG vesselsAdjusted EBITDA from 84,681 42,337 70,806 35,396 equity-accounted LPG vessels

The Partnership's equity-accounted vessels for the year ended December31, 2020 and 2019 include: the Partnership?s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership?s 50 percent ownership interest in the Partnership?s joint venture with Exmar NV (the Excalibur Joint Venture), which owns one LNG carrier; the Partnership?s 33 percent ownership interest in four LNG carriers servicing the Angola LNG project; the(1) Partnership?s 52 percent ownership interest in the MALT Joint Venture, which owns six LNG carriers; the Partnership?s 50 percent ownership interest in Exmar LPG BVBA, which owns and in-charters 23 LPG carriers; the Partnership?s ownership interest ranging from 20 to 30 percent in four LNG carriers chartered to Shell (the Pan Union Joint Venture); the Partnership?s 50 percent ownership interest in six ARC7 LNG carriers in the Yamal LNG Joint Venture; and the Partnership's 30 percent ownership interest in the Bahrain LNG Joint Venture, which owns an LNG receiving and regasification terminal in Bahrain. (2) Unrealized credit loss provisions relate to the Partnership's adoption of ASC 326 effective January 1, 2020.

Teekay LNG Partners L.P. Appendix F - Summarized Financial Information of Equity-Accounted Joint Ventures(in thousands of U.S. Dollars)

As at December 31, 2020 As at December 31, 2019 (unaudited) (unaudited) At Partnership's At Partnership's 100% Portion^(1) 100% Portion^(1) Cash and restricted cash, 549,454 225,049 509,065 210,736 current and non-currentOther current assets 67,580 25,415 62,566 27,719 Property, plant andequipment, includingowned vessels, vessels 1,961,820 1,000,386 3,112,349 1,375,570 related to finance leasesand operating leaseright-of-use assetsNet investments insales-type and direct 5,384,652 2,077,707 4,589,139 1,856,709 financing leases, currentand non-currentOther non-current assets 87,248 51,812 50,967 41,015 Total assets 8,050,754 3,380,369 8,324,086 3,511,749 Current portion oflong-term debt andobligations related to 306,185 129,538 315,247 136,573 finance leases andoperating leasesCurrent portion of 68,966 27,988 34,618 13,658 derivative liabilitiesOther current liabilities 164,266 65,311 153,816 66,224 Long-term debt andobligations related to 4,789,260 1,938,748 5,026,123 2,041,595 finance leases andoperating leasesShareholders' loans, 341,113 121,778 346,969 126,546 current and non-currentDerivative liabilities 280,480 112,922 162,640 66,060 Other long-term 70,743 33,353 64,196 32,323 liabilitiesEquity 2,029,741 950,731 2,220,477 1,028,770 Total liabilities and 8,050,754 3,380,369 8,324,086 3,511,749 equity Investments inequity-accounted joint 950,731 1,028,770 venturesAdvances toequity-accounted joint 121,778 126,546 venturesUnrealized credit loss (4,726 ) ? provisions^(2)Investments in andadvances, net toequity-accounted joint 1,067,783 1,155,316 ventures, current andnon-current

The Partnership's equity-accounted vessels as at December31, 2020 and December 31, 2019 include: the Partnership?s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership?s 50 percent ownership interests in the Excalibur Joint Venture, which owns one LNG carrier; the Partnership?s 33 percent ownership interest in four LNG carriers servicing the Angola LNG project; the Partnership?s 52 percent ownership interest in the MALT(1) Joint Venture, which owns six LNG carriers; the Partnership?s 50 percent ownership interest in Exmar LPG BVBA, which owns and in-charters 23 LPG carriers; the Partnership?s ownership interest ranging from 20 percent to 30 percent in four LNG carriers chartered to Shell in the Pan Union Joint Venture; the Partnership?s 50 percent ownership interest in six ARC7 LNG carriers in the Yamal LNG Joint Venture; and the Partnership's 30 percent ownership interest in the Bahrain LNG Joint Venture, which owns an LNG receiving and regasification terminal in Bahrain. (2) The unrealized credit loss provisions relate to the Partnership's adoption of ASC 326 effective January 1, 2020.

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 managements current views with respect to certain future events and performance, including statements, among other things, regarding: the impact of market volatility and related global events on the Partnership's operations and cash flows; fixed charter coverage for the Partnership's LNG fleet for 2021 and 2022; the expected increase in the Partnerships common unit distribution commencing in the first quarter of 2021 (and the coverage of such increased distribution payments); the continued creditworthiness of the Partnerships contractual counterparties; the ability of the Partnership to realize and receive the full benefits from its contractual backlog of revenue under its long-term charter contracts; continued receipt of terminal use payments in respect of the Bahrain LNG regasification terminal; the expected increase in the Partnership's equity value and financial flexibility resulting from the Partnerships continued delevering of its balance sheet; and the expected cash flows from, and the continued performance of, the Partnership's and its joint ventures' charter contracts.

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: 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; 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 Partnership's fleet; higher than expected costs and expenses, including as a result of off-hire days or dry-docking requirements (both scheduled and unscheduled); delays in the Partnerships ability to successfully and timely complete dry dockings; general market conditions and trends, including spot, multi-month and multi-year charter rates; inability of customers of the Partnership or any of its joint ventures to make future payments under contracts; potential further delays to the formal commencement of commercial operations of the Bahrain Regasification Terminal; the inability of the Partnership to renew or replace long-term contracts on existing vessels; potential lack of cash flow to reduce balance sheet leverage or of excess capital available to allocate towards returning capital to unitholders; potential lack of cash flow to continue paying distributions on the Partnerships common units and other securities; 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, 2019. 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 Partnerships expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.