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Teekay LNG Partners Reports First Quarter Results

HAMILTON, BERMUDA -- (Marketwire) -- 05/17/12 -- Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) -

Highlights


--  Generated distributable cash flow of $50.8 million for the first quarter
    of 2012, an increase of 30 percent from the first quarter of 2011. 
--  Declared first quarter 2012 cash distribution of $0.675 per unit, an
    increase of 7 percent from the previous quarter. 
--  Completed acquisition of six LNG carriers from A.P. Moller Maersk on
    February 28, 2012, through the Teekay LNG-Marubeni joint venture. 
--  Current total liquidity of approximately $440 million, including
    proceeds from the Norwegian bond offering completed in May 2012. 

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) today reported the Partnership's results for the quarter ended March 31, 2012. During the first quarter of 2012, the Partnership generated distributable cash flow(1) of $50.8 million, compared to $39.1 million in the same quarter of the previous year. The increase primarily reflects the incremental distributable cash flow resulting from the following acquisitions: Multigas carriers delivered in June and October 2011; a 33 percent interest in four liquefied natural gas (LNG) carriers delivered between August 2011 and January 2012; one liquefied petroleum gas (LPG) carrier delivered in September 2011; and a 52 percent interest in six LNG carriers completed in February 2012.

On April 12, 2012, the Partnership declared a cash distribution of $0.675 per unit for the quarter ended March 31, 2012. The cash distribution was paid on May 14, 2012 to all unitholders of record on April 23, 2012.

"The Partnership's distributable cash flows increased in the first quarter due to a month of contribution from our interest in the Maersk LNG fleet, in addition to incremental contributions from the newbuilding Multigas carrier and two newbuilding Angola LNG carriers which delivered during the past two quarters," noted Peter Evensen, Chief Executive Officer of Teekay GP L.L.C. "These additional cash flows enabled us to raise our first quarter distribution by 7 percent, while maintaining our coverage ratio above 1.0."

"The delivery of the fourth and final Angola LNG carrier in January completed our latest newbuilding program; however, we continue to actively pursue new acquisition opportunities and organic growth projects," Mr. Evensen continued. "Given the positive market fundamentals in the LNG sector and our financial strength, we believe there will continue to be attractive growth opportunities for the Partnership."

(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).

Teekay LNG's Fleet

The following table summarizes the Partnership's fleet as of May 1, 2012:


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                                                           Number of Vessels
                                             -------------------------------
                                             -------------------------------
LNG Carrier Fleet                                                     27 (i)
LPG/Multigas Carrier Fleet                                            5 (ii)
Conventional Tanker Fleet                                                 11
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Total                                                                     43
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i.  The Partnership's ownership interests in these vessels ranges from 33
    percent to 100 percent. 
ii. The Partnership has a 99 percent ownership interest 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 $35.6 million for the quarter ended March 31, 2012, compared to $25.9 million for the same period of the prior year. Adjusted net income attributable to the partners excludes a number of specific items which had the net effect of decreasing net income by $10.9 million and $0.9 million for the three months ended March 31, 2012 and 2011, respectively, as detailed in Appendix A. Including these items, the Partnership reported net income attributable to the partners, on a GAAP basis, of $24.7 million and $25.0 million for the three months ended March 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 footnote 1 of 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).


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                      Three Months Ended            Three Months Ended      
                ------------------------------------------------------------
                        March 31, 2012                March 31, 2011        
                ------------------------------------------------------------
                          (unaudited)                   (unaudited)         
                ------------------------------------------------------------
                ------------------------------------------------------------
                 Liquefied Conventional        Liquefied Conventional       
(in thousands of       Gas       Tanker              Gas       Tanker       
 U.S. dollars)     Segment      Segment  Total   Segment      Segment  Total
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Net voyage                                                                  
 revenues(i)        70,697       28,176 98,873    65,784       27,065 92,849
Vessel operating                                                            
 expenses           10,811        9,720 20,531    11,077        9,730 20,807
Depreciation and                                                            
 amortization       17,238        7,395 24,633    15,124        7,225 22,349
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CFVO from                                                                   
 consolidated                                                               
 vessels(ii)        56,832       15,835 72,667    52,742       14,333 67,075
CFVO from equity                                                            
 accounted                                                                  
 vessels(ii)                                                                
 (iii)              26,186            - 26,186    12,935            - 12,935
Total CFVO(ii)      83,018       15,835 98,853    65,677       14,333 80,010
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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 and (c) adjusting 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 March 31, 2012 and 2011 include the Partnership's 40 percent
    interest in Teekay Nakilat (III) Corporation, which owns four LNG
    carriers and the Partnership's 50 percent interest in the Excalibur and
    Excelsior Joint Ventures, which owns one LNG carrier and one
    regasification unit. The Partnership's equity accounted investment for
    the three months ended March 31, 2012 also includes the Partnership's 33
    percent interest in four LNG carriers that were delivered in mid-2011
    through 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, increased to $56.8 million in the first quarter of 2012 from $52.7 million in the same quarter of the prior year. This increase was primarily due to higher voyage revenues as a result of the acquisition of two newbuilding Multigas carriers in June and October 2011, and a newbuilding LPG carrier in September 2011.

Cash flow from vessel operations from the Partnership's equity-accounted vessels in the Liquefied Gas segment increased to $26.2 million in the first quarter of 2012 from $12.9 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 the four Angola LNG Carriers from Teekay between August 2011 and January 2012.

Conventional Tanker Segment

Cash flow from vessel operations from the Partnership's Conventional Tanker segment increased to $15.8 million for the first quarter of 2012 from $14.3 million for the same quarter of the prior year. This increase was primarily due to an additional revenue day as a result of the 2012 leap year and interest rate and inflation adjustments on contracts for five of the Partnership's Suezmax tankers.

Liquidity

As of March 31, 2012, the Partnership had total liquidity of $318.1 million (comprised of $83.9 million in cash and cash equivalents and $234.2 million in undrawn credit facilities), compared to total liquidity of $538.7 million as of December 31, 2011. Subsequent to March 31, 2012, the Partnership's liquidity balance increased by approximately $125.0 million due to the NOK 700 million Norwegian bond offering completed in early May 2012.

Availability of 2011 Annual Report

Teekay LNG filed its 2011 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (SEC) on April 11, 2012. Copies are available on Teekay LNG's web site, under "Investor Briefcase", at www.teekaylng.com. Unitholders may request a printed copy of this annual report, including the complete audited financial statements free of charge by contacting Teekay LNG Investor Relations.

Conference Call

The Partnership plans to host a conference call on Friday, May 18, 2012 at 10:00 a.m. (ET) to discuss the results for the first quarter 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 7421187. 
--  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 First Quarter 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, May 24, 2012. 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 7421187.

About Teekay LNG Partners L.P.

Teekay LNG Partners is the world's third largest independent owner and operator of LNG vessels, 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 27 LNG carriers (including one LNG regasification unit), five LPG/Multigas carriers and 11 conventional tankers. The Partnership's ownership 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".


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                          TEEKAY LNG PARTNERS L.P.                          
                  SUMMARY CONSOLIDATED STATEMENTS OF INCOME                 
              (in thousands of U.S. dollars, except unit data)              
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                                                Three Months Ended          
                                      --------------------------------------
                                         March 31,  December 31,   March 31,
                                      --------------------------------------
                                             2012          2011        2011 
                                      --------------------------------------
                                       (unaudited)   (unaudited) (unaudited)
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VOYAGE REVENUES                            99,216        97,253      93,219 
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OPERATING EXPENSES                                                          
Voyage expenses                               343            25         370 
Vessel operating expenses                  20,531        22,485      20,807 
Depreciation and amortization              24,633        24,367      22,349 
General and administrative                  7,116         5,455       6,326 
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                                           52,623        52,332      49,852 
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Income from vessel operations              46,593        44,921      43,367 
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OTHER ITEMS                                                                 
Interest expense                          (12,798)      (13,861)    (11,754)
Interest income                               932         1,835       1,578 
Realized and unrealized (loss) gain on                                      
 derivative instruments(1)                (15,903)       (8,780)     10,769 
Foreign exchange (loss) gain(2)            (9,668)       10,722     (21,033)
Equity income(3)                           17,048         8,189       8,057 
Other income (expense) - net                  475            98      (1,247)
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Net income                                 26,679        43,124      29,737 
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Net income attributable to:                                                 
  Non-controlling interest                  1,948         2,777       4,757 
  Partners                                 24,731        40,347      24,980 
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Limited partners' units outstanding:                                        
Weighted-average number of common and                                       
 total units outstanding - Basic and                                        
 diluted                               64,857,900    62,885,074  55,106,100 
Total number of units outstanding at                                        
 end of period                         64,857,900    64,857,900  55,106,100 
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(1) The realized losses relate to the amounts the Partnership actually paid 
to settle derivative instruments and the unrealized (losses) gains relate to
the change in fair value of such derivative instruments as detailed in the  
table below.                                                                
                                                                            
                                               Three Months Ended           
                                     ---------------------------------------
                                        March 31,   December 31,   March 31,
                                            2012           2011        2011 
                                     ---------------------------------------
Realized (losses) relating to:                                              
Interest rate swaps                       (9,079)        (9,795)    (10,237)
Interest rate swap terminations                -        (22,560)          - 
Toledo Spirit time-charter derivative                                       
 contract                                    (32)           (40)          - 
                                     ---------------------------------------
                                          (9,111)       (32,395)    (10,237)
                                     ---------------------------------------
                                                                            
Unrealized (losses) gains relating                                          
 to:                                                                        
Interest rate swaps                       (7,092)        (6,345)     19,806 
Interest rate swap terminations                -         22,560           - 
Toledo Spirit time-charter derivative                                       
 contract                                    300          7,400       1,200 
                                     ---------------------------------------
                                          (6,792)        23,615      21,006 
                                     ---------------------------------------
Total realized and unrealized                                               
 (losses) gains on derivative                                               
 instruments                             (15,903)        (8,780)     10,769 
                                     ---------------------------------------
                                                                            
(2) 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.                                                                  
                                                                            
(3) Equity income includes unrealized gains on derivative instruments as    
detailed in the table below.                                                
                                                                            
                                                 Three Months Ended         
                                        ------------------------------------
                                          March 31,  December 31,  March 31,
                                              2012          2011       2011
                                        ------------------------------------
                                                                            
Equity income                               17,048         8,189      8,057
Proportionate share of unrealized gains                                    
 on derivative instruments                   5,061           283      2,554
                                        ------------------------------------
Equity income excluding unrealized gains                                    
 on derivative instruments                  11,987         7,906      5,503
                                        ------------------------------------

The equity income from the Teekay LNG-Marubeni joint venture is based on a preliminary purchase price allocation and actual results may differ. Any revisions to the preliminary purchase price allocation are not expected to have a material impact to equity income or to the distributable cash flow of the Partnership.


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                          TEEKAY LNG PARTNERS L.P.                          
                    SUMMARY CONSOLIDATED BALANCE SHEETS                     
                       (in thousands of U.S. dollars)                       
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                                                      As at           As at 
                                                   March 31,    December 31,
                                                ------------  --------------
                                                       2012            2011 
                                                ------------  --------------
                                                 (unaudited)     (unaudited)
                                                ------------  --------------
ASSETS                                                                      
Cash and cash equivalents                            83,904          93,627 
Other current assets                                 16,345          18,837 
Advances to affiliates                               17,971          11,922 
Restricted cash - long-term                         526,901         495,634 
Vessels and equipment                             2,001,654       2,021,125 
Net investments in direct financing leases          408,060         409,541 
Derivative assets                                   129,123         155,259 
Investments in and advances to equity accounted                             
 joint ventures                                     363,025         191,448 
Other assets                                         38,184          34,760 
Intangible assets                                   112,133         114,416 
Goodwill                                             35,631          35,631 
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Total Assets                                      3,732,931       3,582,200 
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LIABILITIES AND EQUITY                                                      
Accounts payable, accrued liabilities and                                   
 unearned revenue                                    52,038          60,030 
Current portion of long-term debt and capital                               
 leases                                             262,506         131,925 
Advances from affiliates and joint venture                                  
 partners                                            28,775          17,400 
Long-term debt and capital leases                 1,898,379       1,830,353 
Derivative liabilities                              273,874         293,218 
Other long-term liabilities                         105,922         109,565 
Equity                                                                      
  Non-controlling interest(1)                        28,190          26,242 
  Partners' equity                                1,083,247       1,113,467 
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Total Liabilities and Total Equity                3,732,931       3,582,200 
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(1) Non-controlling interest includes a 30 percent equity interest of 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.                                                   
                                                                            
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                          TEEKAY LNG PARTNERS L.P.                          
                SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS               
                       (in thousands of U.S. dollars)                       
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                                                     Three Months Ended     
                                                         March 31,          
                                                ----------------------------
                                                        2012           2011 
                                                -------------  -------------
                                                  (unaudited)    (unaudited)
                                                -------------  -------------
Cash and cash equivalents provided by (used for)                            
OPERATING ACTIVITIES                                                        
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Net operating cash flow                               48,299         39,670 
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FINANCING ACTIVITIES                                                        
Proceeds from issuance of long-term debt             209,128         24,118 
Scheduled repayments of long-term debt               (18,439)       (16,275)
Prepayments of long-term debt                              -        (12,000)
Scheduled repayments of capital lease                                       
 obligations and other long-term liabilities          (2,510)        (2,482)
Advances to and from affiliates                       (3,600)         1,401 
Increase in restricted cash                          (30,215)        (3,213)
Cash distributions paid                              (44,331)       (37,666)
Other                                                      -           (179)
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Net financing cash flow                              110,033        (46,296)
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INVESTING ACTIVITIES                                                        
Purchase of equity investment in MALT LNG                                   
 Carriers                                           (150,999)             - 
Purchase of equity investment in the fourth                                 
 Angola LNG Carrier                                  (19,068)             - 
Receipts from direct financing leases                  1,481          1,367 
Expenditures for vessels and equipment                  (838)        (3,184)
Repayments from joint venture                            830              - 
Other                                                    539              - 
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Net investing cash flow                             (168,055)        (1,817)
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Decrease in cash and cash equivalents                 (9,723)        (8,443)
Cash and cash equivalents, beginning of the                                 
 period                                               93,627         81,055 
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Cash and cash equivalents, end of the period          83,904         72,612 
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                          TEEKAY LNG PARTNERS L.P.                          
              APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME              
                       (in thousands of U.S. dollars)                       
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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.


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                                                 Three Months  Three Months 
                                                        Ended         Ended 
                                                 ---------------------------
                                                     March 31,     March 31,
                                                         2012          2011 
                                                 ---------------------------
                                                   (unaudited)   (unaudited)
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Net income - GAAP basis                                26,679        29,737 
Less:                                                                       
  Net income attributable to non-controlling                                
   interest                                            (1,948)       (4,757)
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Net income attributable to the partners                24,731        24,980 
Add (subtract) specific items affecting net                                 
 income:                                                                    
  Foreign exchange loss(1)                              9,668        21,033 
  Unrealized losses (gains) from derivative                                 
   instruments(2)                                       6,792       (21,006)
  Unrealized gains from derivative instruments                              
   and other items from equity accounted                                    
   investees(3)                                        (4,811)       (2,554)
  Other items(4)                                            -           949 
  Non-controlling interests' share of items above        (777)        2,484 
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Total adjustments                                      10,872           906 
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Adjusted net income attributable to the partners       35,603        25,886 
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(1) Foreign exchange loss primarily relate to the revaluation of the        
Partnership's debt, capital leases and restricted cash denominated in Euros.
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.       
(2) Reflects the unrealized gain or loss due to changes in the mark-to-     
market value of derivative instruments that are not designated as hedges for
accounting purposes.                                                        
(3) Reflects the unrealized gain or 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 $0.3 million of start-up related costs during the three months ended 
March 31, 2012, relating to the acquisition of the six MALT LNG Carriers.   
(4) 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's former President and Chief Executive Officer that had not
yet vested prior to the date of his retirement on March 31, 2011.           
                                                                            
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                          TEEKAY LNG PARTNERS L.P.                          
          APPENDIX B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE         
                       (in thousands of U.S. dollars)                       
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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.


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                                                  Three Months Three Months 
                                                         Ended        Ended 
                                                  --------------------------
                                                      March 31,    March 31,
                                                          2012         2011 
                                                  --------------------------
                                                    (unaudited)  (unaudited)
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Net income:                                             26,679       29,737 
Add:                                                                        
  Depreciation and amortization                         24,633       22,349 
  Partnership's share of equity accounted joint                             
   ventures' DCF before estimated maintenance                               
   capital expenditures                                 16,828        7,863 
  Unrealized foreign exchange loss                       9,668       21,033 
  Unrealized loss (gain) on derivatives and other                           
   non-cash items                                        7,586      (19,427)
Less:                                                                       
  Estimated maintenance capital expenditures           (12,716)     (11,168)
  Equity income                                        (17,048)      (8,057)
  Non-cash tax (recovery) expense                         (412)         617 
                                                                            
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Distributable Cash Flow before Non-controlling                              
 interest                                               55,218       42,947 
Non-controlling interests' share of DCF before                              
 estimated maintenance capital expenditures             (4,450)      (3,866)
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Distributable Cash Flow                                 50,768       39,081 
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                          TEEKAY LNG PARTNERS L.P.                          
                APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION               
                       (in thousands of U.S. dollars)                       
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                                         Three Months Ended March 31, 2012  
                                      --------------------------------------
                                                    (unaudited)             
                                        Liquefied Gas   Conventional        
                                              Segment Tanker Segment   Total
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Net voyage revenues(1)                         70,697         28,176  98,873
Vessel operating expenses                      10,811          9,720  20,531
Depreciation and amortization                  17,238          7,395  24,633
General and administrative                      4,527          2,589   7,116
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Income from vessel operations                  38,121          8,472  46,593
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                                         Three Months Ended March 31, 2011  
                                      --------------------------------------
                                                    (unaudited)             
                                        Liquefied Gas   Conventional        
                                              Segment Tanker Segment   Total
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Net voyage revenues(1)                         65,784         27,065  92,849
Vessel operating expenses                      11,077          9,730  20,807
Depreciation and amortization                  15,124          7,225  22,349
General and administrative                      3,324          3,002   6,326
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Income from vessel operations                  36,259          7,108  43,367
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(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 http://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: the Partnership's future growth opportunities; the Partnership's financial position, including available liquidity; and the Partnership's ability to secure additional 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, floating storage regasification and other growth opportunities; changes in production of LNG or LPG, either generally or in particular regions; development of LNG and LPG projects; changes in trading patterns 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 Teekay LNG fleet and inability of the Partnership to renew or replace long-term contracts; 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; 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.

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