HAMILTON, BERMUDA: Teekay LNG Partners L.P. and Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, announced that they have entered into an agreement and plan of merger.

Under the Merger Agreement, investment vehicles managed by Stonepeak will acquire (a) all the issued and outstanding common units representing limited partner units in Teekay LNG, including approximately 36.0 million common units owned by Teekay Corporation, and (b) 100 percent of Teekay’s ownership in Teekay LNG’s general partner, Teekay GP L.L.C., which includes an economic ownership interest equivalent to approximately 1.6 million Teekay LNG common units, for $17 per common unit or common unit equivalent in cash, representing an enterprise value of $6.2 billion, including consolidated and proportionate joint venture net debt, and $1.5 billion in common unit equity value.

The $17 per unit acquisition price represents a premium of 8.3 percent to the closing price of Teekay LNG’s common units on October 1, 2021 and premiums of 12.3 percent and 17.5 percent to the volume-weighted average price of Teekay LNG’s common units over the last 60 and 180 days, respectively.

The Transaction is the result of a review by Teekay GP’s Board of Directors of strategic alternatives available
to Teekay LNG. The Conflicts Committee of Teekay GP, comprised of independent directors and advised by
its own independent legal and financial advisors, determined that the Transaction was advisable and in the
best interests of Teekay LNG and its unitholders unaffiliated with Teekay and unanimously approved the
Transaction. In considering its recommendation, the Conflicts Committee of Teekay GP was advised by
Houlihan Lokey Capital, Inc. Subsequently, acting upon the recommendation of the Conflicts Committee, the
Board of Directors of Teekay GP unanimously approved the Transaction and recommended that all Teekay
LNG’s common unitholders vote in favor of the Merger Agreement on the terms presented.

“This is a transformative transaction for Teekay LNG that will enable existing unitholders to realize an
attractive valuation and immediate liquidity on closing,” commented Mark Kremin, President and CEO of
Teekay Gas Group Ltd. “Under Stonepeak’s ownership, we expect Teekay LNG to have improved access to
competitively priced capital for both fleet renewal and potential future growth in the next phase of our
development, which has not been available through the public equity capital markets for many years. We are
excited to partner with Stonepeak and look forward to continuing to build our leading market positions, while
maintaining our strong focus on operational excellence. We believe that the combination of our existing
management and operations teams with Stonepeak, which has a long track record for investing in energy
infrastructure, will provide substantial benefits to our customers, employees, joint venture partners and capital
providers in the future.”

“Stonepeak has long recognized the growing global demand for LNG and importance of natural gas as a
bridge fuel, particularly as the world continues to shift toward cleaner sources of energy,” said James Wyper,
Senior Managing Director at Stonepeak. “Through this transaction, we have an exciting opportunity to invest
in a critical energy transition infrastructure business in the form of Teekay LNG’s high-quality, modern fleet of
vessels and stable long-term customer contracts. We are particularly excited to partner with Teekay LNG’s
best-in-class management team to bring cheaper, cleaner, more reliable energy supply to all parts of the
world, especially in Asia where we have been active investors in the ongoing shift to cleaner fuels and
renewables.”

“Since the initial public offering in 2005, Teekay has built Teekay LNG into the world’s third largest
independent LNG carrier owner and operator, with one of the biggest and most diversified portfolios of long-
term contracts with leading players in the LNG industry,” commented Kenneth Hvid, Teekay’s President and
CEO. “We believe this Transaction represents a unique opportunity to monetize our position in Teekay LNG
while realizing an attractive return on investment for Teekay and for Teekay LNG common unitholders. This
Transaction also provides Teekay with greater financial flexibility to leverage its existing operating franchise
and industry-leading capabilities to pursue attractive investment opportunities in both the shipping sector and
potentially in new and adjacent markets, which we expect to be dynamic as the world pushes for greater
energy diversification.”

The Transaction has been approved by the Board of Directors of Teekay GP and Teekay, including the
unanimous approval of the Conflicts Committee of Teekay GP, and is targeted to close by the end of 2021.
The Transaction remains subject to approval by a majority of Teekay LNG’s common unitholders at a special
meeting to be held in connection with the Transaction, and the satisfaction or waiver of certain customary
closing conditions. Teekay, which currently owns approximately 41 percent of Teekay LNG’s outstanding
common units, has entered into a Voting and Support Agreement to vote in favor of the merger.

As part of the Transaction, Teekay will transfer to Teekay LNG the ownership of the management services
companies that currently deliver the operations for Teekay LNG and certain of its joint ventures under existing
management services contracts.

Promptly after the completion of the Transaction, the common units of Teekay LNG will be delisted from the
New York Stock Exchange. The Series A and B preferred units of Teekay LNG are expected to remain
outstanding and continue to trade on the New York Stock Exchange following the completion of the
Transaction.

Morgan Stanley & Co. LLC is serving as financial advisor and Squire Patton Boggs (US) LLP and Perkins
Coie LLP are serving as legal advisors to Teekay LNG. Houlihan Lokey Capital, Inc. is serving as financial
advisor and Potter Anderson & Corroon LLP is serving as legal advisor to the Conflicts Committee of Teekay
GP. DNB Markets is serving as financial advisor and Simpson Thacher is serving as legal advisor to
Stonepeak.