Teekay LNG Partners: Steady Income, Huge Coverage, No K-1

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About: Teekay LNG Partners L.P. (TGP), Includes: FLNG, GLNG, GLOG, GLOP, TK
by: J Mintzmyer
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J Mintzmyer
Value Investor's Edge
Deep value, stable income via top-tier shipping, MLP, and midstream analysis
Summary

Teekay LNG Partners (TGP) is the world's largest publicly-traded LNG shipping company.

TGP has a superior $10B contract backlog with very little near-term market risk with 96% of their days fixed through 2021.

Less than 3 months left to complete their 4-year growth initiative. Improving leverage and active $100M repurchase program.

The stock is cheap because investors aren't yet rewarding their huge coverage (more than 4x fwd coverage).

Savvy investors can acquire this high-quality name at a deep discount. Fair value estimate: $25/unit, 66% upside. 5.1% yield bonus.

Image Credit: Teekay LNG Partners, Q2-19 Presentation

Teekay LNG Overview

Teekay LNG Partners (TGP) controls the world's largest and most modern publicly-traded LNG shipping fleet with a $10B backlog of highly lucrative contracts.