Teekay LNG Partners LP. (NYSE:TGP) Q1 2020 Earnings Conference Call - Final Transcript

May 21, 2020 • 01:00 pm ET


Teekay LNG Partners LP. (NYSE:TGP) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to today's Teekay LNG Partners' First Quarter 2020 Earnings Results Call. [Operator Instructions].

And now for opening remarks and introductions, I'd like to turn the call over to the company. Please go ahead.

Scott Gayton

Before Mr. Kremin begins, I would like to direct all participants to our website at www.teekaylng.com, where you will find a copy of the first quarter of 2020 earnings presentation. We will review this presentation during today's conference call.

Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the fourth quarter and fiscal 2019 earnings release and earnings presentation available on our website.

I will now turn the call over to Mark to begin.

Mark Kremin

Thank you, Scott. Good morning everyone and thank you for joining us on our first quarter of 2020 earnings conference call for Teekay LNG Partners. We hope that you and your families are all safe and healthy. I'm joined today by Scott Gayton. Teekay Gas Group CFO.

Before we get into our results, we will take a moment to say thank you to all our seafarers and shore based staff for their extraordinary dedication to maintain business continuity. While COVID-19 is having an unprecedented impact on the world and is clearly a major focus for us, our long-term contract cover has ensured it has had minimal impact on Teekay LNGs operations and cash flows. We are truly proud of our seafarers and our onshore colleagues, how they have responded to COVID-19, implementing new standards, which focus on the health and well-being of everyone involved in our organization, especially our colleagues at sea, while maintaining consistently safe and efficient operations for our customers.

Turning to slide 3 of the presentation; we will review some of Teekay LNG's recent highlights, as well as a few key takeaways that summarize how we believe Teekay LNG is uniquely positioned today, and not just against our LNG shipping peers, but also how we are uniquely compared against most energy related companies out there.

Our first quarter adjusted net income increased to over $52 million, the seventh consecutive quarterly increase, and as we will discuss in a moment, we expect our adjusted net income will increase again next quarter. With the recent charter of the Marib Spirit, our LNG fleet is now 100% fixed for 2020, which is in line with our strategy of optimizing utilization of our fleet, which we think benefits all our key stakeholders.

As announced last week, we agreed with our sponsor, Teekay Corporation, to eliminate their their incentive distribution rights or IDRs. We believe this creates greater alignment between Teekay Corporation and the rest of our investors and removes one of the primary uncertainties for new and existing TGP investors. And importantly, we believe we are trading at attractive multiples of earnings and cash flow that aren't