Teekay LNG Partners: A Conservatively Financed High-Yield LNG Tanker Company
Published Oct 5, 2020 on Seeking Alpha

Seeking AlphaDividend Ideas | Basic Materials | BermudaTeekay LNG Partners: A Conservatively Financed High-Yield LNG Tanker CompanyOct. 5, 2020 2:35 PM ET|| About: Teekay LNG Partners L.P. (TGP), Includes: GLNG, GLOG, GLOG.PA, TGP.PA, TGP.PBby: Power HedgePower Hedge Energy Profits in DividendsIn-depth Research on underfollowed dividend stocks with 7%+ yieldsSummaryTeekay LNG Partners delivered very impressive performance navigating the COVID-19 pandemic, continuing its multi-year growth streak.
The company's vessels are all contracted under long-term fixed-rate contracts, which provides it with a degree of market insulation.
The LNG market remains strong, with demand up 4% year-over-year in the first half of the year despite the COVID-19 shutdowns.
The company is very conservatively financed compared to its peers, providing us with an extra measure of security.
The company boasts a very strong coverage ratio for its 9% distribution.
Teekay LNG Partners, L.P. (TGP) is an owner-operator of tanker vessels carrying liquefied natural gas, liquefied petroleum gas, and crude oil. This is an interesting sector to operate in right now as the international demand for both natural gas and natural gas liquids is rapidly growing despite the COVID-19 outbreak. Teekay LNG Partners has the largest fleet of these specialized tanker ships in the world, which positions the company well to exploit this demand as these vessels represent the only way to transport these substances over large bodies of water such as the ocean. Thus, there may be an opportunity here that is worth investigating.
About Teekay LNG Partners
As just mentioned, Teekay LNG Partners owns and operates the largest liquids tanker fleet in the world. This fleet consists of 23 wholly-owned liquefied natural gas tankers and another 26 tankers that are joint ventures with another company. Unfortunately, though, this fleet is somewhat older than that or competitors such as GasLog (GLOG) as the average... Read more