pareto conference september 2020 - globenewswire

Pareto Conference

September 2020

© Golar LNG Partners LP

FORWARD

LOOKING

STATEMENTS

This presentation contains forward-looking statements as defined in the Securities Exchange Act of 1934, as amended and which reflect

management’s current expectations, estimates and projections about its operations. All statements, other than statements of historical facts,

that address activities and events that should, could or may occur in the future are forward-looking statements. Words such as “may,” “could,”

“should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “propose,” “potential,” “continue,” or the negative of these terms

and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance

and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore,

actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not

place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required Golar

LNG Partners LP (“Golar Partners,” “we,” “us” and “our”) undertakes no obligation to update publicly any forward-looking statements whether as

a result of new information, future events or otherwise.

Important factors that could cause actual results to differ materially include, but are not limited to:

the ability of Golar LNG Partners LP (“Golar Partners,” “we,” “us” and “our”) and Golar LNG Limited' (“Golar”) to make additional borrowings

and to access debt and equity markets; our ability to repay our debt when due and to settle our interest rate swaps; our ability to enter into long-

term time charters, including our ability to re-charter floating storage and regasification units (“FSRUs”), liquefied natural gas (“LNG”) carriers

and floating liquefied natural gas units (“FLNGs”) following the termination or expiration of their time charters; our ability to maximize the use of

our vessels, including the re-deployment or disposal of vessels no longer under long-term time charter; the length and severity of outbreaks of

pandemics, including the recent worldwide outbreak of the novel coronavirus ("COVID-19") and its impact on demand for LNG and natural gas,

the operations of our charterers, our global operations and our business in general; the liquidity and creditworthiness of our charterers; the

effect of a worldwide economic slowdown; changes in commodity prices; turmoil in the global financial markets; fluctuations in currencies and

interest rates; market trends in the FSRU, LNG carrier and FLNG industries, including fluctuations in charter hire rates, vessel values, factors

affecting supply and demand, and opportunities for the profitable operations of FSRUs, LNG carriers and FLNGs; availability of skilled labor,

vessel crews and management, including possible disruptions caused by the COVID-19 outbreak; our vessel values and any future impairment

charges we may incur; our anticipated growth strategies; our ability to integrate and realize the expected benefits from acquisitions and

potential acquisitions; the future share of earnings relating to the FLNG, Hilli Episeyo ("Hilli"), which is accounted for under the equity method;

our ability to make cash distributions on our units and the amount of any such distributions; changes in our operating expenses, including dry-

docking and insurance costs and bunker prices; estimated future maintenance and replacement capital expenditures; our future financial

condition or results of operations and future revenues and expenses; planned capital expenditures and availability of capital resources to fund

capital expenditures; the exercise of purchase options by our charterers; our ability to maintain long-term relationships with major LNG traders;

our ability to leverage the relationships and reputation of Golar and Hygo Energy Transition Ltd. (“Hygo Energy Transition”), (formerly known as

Golar Power Limited) in the LNG industry; the ability of Golar and us to retrofit vessels as FSRUs or FLNGs and the timing of the delivery and

acceptance of any such retrofitted vessels by their respective charterers; our ability to purchase vessels from Golar and Hygo Energy Transition

in the future; timely purchases and deliveries of new build vessels; future purchase prices of new build and secondhand vessels; our ability to

compete successfully for future chartering and newbuilding opportunities; acceptance of a vessel by its charterer; termination dates and

extensions of charters; the expected cost of, and our ability to comply with, governmental regulations, maritime self-regulatory organization

standards, as well as standard regulations imposed by our charterers applicable to our business; our general and administrative expenses and

our fees and expenses payable under the fleet management agreements and the management and administrative services agreement between

us and Golar Management (or the “Management and Administrative Services Agreement”); challenges by authorities to the tax benefits we

previously obtained; the anticipated taxation of our partnership and distributions to our unitholders; economic substance laws and regulations

adopted or considered by various jurisdictions of formation or incorporation of us and certain of our subsidiaries; our and Golar's ability to retain

key employees; customers’ increasing emphasis on environmental and safety concerns; potential liability from any pending or future litigation;

potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists; future sales of our securities in the public

market; our business strategy and other plans and objectives for future operations; and other factors listed from time to time in the reports and

other documents that we file with the U.S. Securities and Exchange Commission (the “SEC”).

Factors may cause actual results to be materially different from those contained in any forward-looking statement. Golar Partners does not

intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Golar Partners’

expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

2


Company overview

31) GMLP has a 50% interest in Hilli T1 and T2, which represents the current contracted capacity of the Hilli Episeyo, which has a total of 4 trains

2) GMLP owns 60% of the Mazo

Shipping Regasification

LNG Carriers FSRU

Golar GrandGolar Maria

Methane Princess Golar Mazo2

Golar Spirit NR Regas Satu

Golar Freeze Golar Winter

Golar EskimoGolar Igloo

FLNG Hilli Episeyo1

Production &

Liquefaction

FLNG

Attractive portfolio of contracted LNG assets split between FLNG, shipping and FSRUs

Revenue backlog of USD1.9 billion before extension options, to 9 different counterparts

❑ Backlog split: 60% on FLNGs, 8% on shipping and 32% on FSRUs

Well positioned to benefit from improving FSRU market dynamic


$1.9bn of revenue backlog1

1 Revenue backlog represents revenue from our executed contracts and includes our proportionate share of Hilli LLC’s revenue backlog. The $1.9 billion includes

project awards/agreements that are subject to contract but does not include any “options” as highlighted in the above graph, nor does it include any future growth

opportunities. Any future contracts relating to these prospects will be incremental to the above number. Revenue backlog is a non GAAP measure. Please see the

Appendices for a further discussion.

International oil major

Major LNG

Exporter

Energy & Logistics

Company

Charter updates in Q2 20:

Golar Grand: charter extended by a year at a similar rate to current rate from May 2020

Golar Maria: 90 days firm period from May 2020.

FSRU Golar Freeze15 year Jamaica charter

FSRU Golar Winter10-year contract extended to 15 years

FSRU Nusantara Regas Satu

11-year contract

FSRU Golar Igloo5-year contract extended by 1+2 years

FSRU Golar Eskimo

10-year contract

FSRU Golar SpiritCold layup

FLNG Hilli Episeyo (50% of common units)8-year contract

LNGC Methane Princess20-year contract

LNGC Golar Mazo (60% owned)Cold layup

LNGC Golar Grand2-year contract extended by 1+1 years

LNGC Golar Maria 2-year contract from late 2020

Layup Base contract duration Options Expected spot trading Yard

2020 2021 2022 2023 2024 2025 2026

Go

lar

LNG

Par

tner

s

2027

2033

4


Stable operational utilizationContinued strong commercial utilization from operating fleet

Note: Excludes vessel in cold layup

Continued operational excellence across the fleet.

FLNG Hilli with 100% economical utilization since delivery.

FSRU fleet achieved full utilization in Q2 2020 compared to Q1 2020 utilization as Golar Igloo had a full quarter of

operation following its scheduled annual maintenance window under the existing charter.

Shipping economic utilization affected by Golar Maria idle time between charters offset by improved utilization from the

effect of fewer calendar days used in calculating average daily TCE as Golar Mazo's cold lay-up days are excluded,

being scheduled off-hire days.

5


Debt maturity profile

-

100

200

300

400

500

600

700

800

2020 2021 2022 2023 2024 2025

US

D m

High yield bonds Debt Balloon Repayment Debt Interim Instalments Golar Eskimo Contractual debt

Successfully extended maturities of both unsecured bonds by 18 months (GOLP02 and GOLP03)

April 2020 distribution cut will allow the partnership to de-lever and ease refinancing

Adjusted Net Debt to Annualized Adjusted EBITDA1 of 4.8x per Q2 2020

In discussions for refinancing of the $800 million vessel facility maturing in April 2021 (secured in

Spirit, Freeze, Winter, Igloo, Methane Princess, Grand and Maria)

6(1) Adjusted Net Debt and Annualized Adjusted EBITDA are non GAAP measures. Please see the appendix for definitions

7

Forward curves implies continued attractiveness of LNG LNG demand expected to continue healthy growth

Continued attractiveness of LNG support adoption

200

250

300

350

400

450

500

2018 2019 2020 2021 2022 2023 2024 2025

Mill

on t

ons L

NG

per

year

0

2

4

6

8

10

12

14

Jan

-18

Ap

r-18

Jul-1

8

Oct-

18

Jan

-19

Ap

r-19

Jul-1

9

Oct-

19

Jan

-20

Ap

r-20

Jul-2

0

Oct-

20

Jan

-21

Ap

r-21

Jul-2

1

Oct-

21

Jan

-22

Ap

r-22

Jul-2

2

Oct-

22

US

D/M

MB

tu

Brent TTF JKM Henry Hub

© Golar LNG Partners LP 7

Note: 2021 – 2025 figures are estimates

Asia: LNG is currently the cheapest hydrocarbon

14,2

10,8

14,2

11,6

4,6

2,9

12,1

8,9

6,6

8,2 8,6

2,8 3,0

8,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

Diesel HFO VLSFO LPG LNG Coal Crude

US

D/M

MB

TU

1st Jan 2020 05th August 2020

Europe: Gas the cheapest hydrocarbon (incl. tax)

14,6

11,212,9

10,0

4,12,0

10,9

2,0

2,2

2,2

1,5

1,52,6

2,2

9,06,9 7,5 7,5

2,6 1,9

8,0

2,2

2,42,4 1,6

1,6 2,9

2,4

Diesel HFO VLSFO LPG Gas Coal Crude0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

US

D/M

MB

TU

Commodity - 01 Jan 2020 CO2 - 01 Jan 2020

Commodity - 12 Aug 2020 CO2 - 12 Aug 2020

Source: Bloomberg, IHS

8

FSRU newbuild activity FSRU awards

Improving FSRU supply/demand balance

0

1

2

3

4

5

6

7

8

9

10

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

Units o

rdere

d /

Report

ed f

or

convers

ion

Speculative Contracted

1

3

1

2

3

2 2

5

3

6 6

9

6

1

0

1

2

3

4

5

6

7

8

9

10

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

# o

f A

ward

s

FSRU chartering activity has outperformed

newbuild orders since 2015

2020 has been a slow year for FSRU awards –

market activity likely to pick up based on

underlying supply/demand dynamics

There has only been one speculative newbuild

order since 2017

Project developer / end-users responsible for

majority of orders in 2018-2020

Independent owners staying on sidelines

© Golar LNG Partners LP 8Source: IHS

9

211

2130

62

1130

4967

132

21

49

77

104

202

0

50

100

150

200

250

250 500 750 1 000 1 875

50 000 100 000 150 000 200 000 380 000

Illu

str

ative E

BIT

DA

2 U

SD

m

Tolling fee USD 0.5/MMBTU Tolling fee USD 1/MMBTU Tolling fee USD 1.5/MMBTU

Illustrative FSRU economics (volume vs. tolling fee per MMBTU throughput)1

Parceling FSRU capacity can boost re-contracting returns

Once the partnerships FSRUs roll-off their existing long term contracts, the assets are depreciated to a level where we

can enter into tolling contracts with end-users that does not have sufficient offtake for the full capacity of an FSRU

Due to the relative competitiveness of LNG on price these end-users can pay a higher tolling fee than traditional FSRU

contracts and still have significant economic and environmental benefits in converting to LNG

Once an FSRU is anchored in a new location, spare capacity that is not used by the initial client can be sold to other

local industrial and small-scale LNG adopters

Selling partial FSRU volumes to end-users can enable significantly higher unit returns than standard FSRU contracts

where the full FSRU capacity is typically chartered by one offtaker

Based on a tolling fee of USD 0.5-1.5/MMBTU the older FSRUs in the Partnership fleet can generate EBITDA2 on

full capacity of USD 62-202m/year. The modern FSRUs in the fleet have 2-3x the throughput capacity of the

older FSRUs.


MW

MMBTU/day

1 Key assumptions: Plant efficiency: 38% HHV (8,870 Btu/kWh), Load factor: 100%, 8,760 hours per year.

2 EBITDA is defined as operating income before interest, tax, depreciation and amortization. EBITDA is a non-GAAP financial measure. We have presented EBITDA as

we believe it provides useful information to investors because it is a basis upon which we measure operations and efficiency. EBITDA is not a measure of our financial

performance under US GAAP and should not be construed as an alternative to net income (loss) or other financial measures presented in accordance with US GAAP.


Summary

1 Refer to Appendices for Non-GAAP measure details.

Focus on refinancing:

❑ Starting with the 7-vessel bank facility before year end ($542 million outstanding as of

June 30, 2020),

❑ Thereafter contemplate to refinance the two unsecured bonds prior to May 2021 when

the call option increases (total of $400 million outstanding as of June 30, 2020).

Record low gas prices favours LNG as a cheaper and cleaner source of energy vs.

alternatives, with new markets opening for potential FSRU contracts seeking access to the

LNG fuel and environmental benefit arbitrage.

Entered into cooperation agreement with Hygo Energy Transition to work together to

develop hub-spoke LNG terminal solutions utilizing GMLP’s available asset portfolio.

Strategic alternatives to better use the Partnership’s $1.9 billion of revenue backlog1 to

maximize long-term unitholder value are being narrowed down.

10

THANK YOU



Appendix A – Non-GAAP measuresNon GAAP Measures impacted by management’s monitoring of the FLNG segment (i.e. our equity investment in Hilli LLC) on a proportionate basis: In Q4

2018 the Partnership changed the way in which it measures the business and the operating segments of the Company. The two key changes were the introduction of

“EBITDA” as the operating segment profit measure and reporting our FLNG segment (our equity investment in Hilli LLC) on a proportionate basis. Although

management monitors the operating segments based on EBITDA, a number of our total metrics have also been impacted by our proportionate view of the FLNG

segment. Specifically “Total Adjusted EBITDA”, “Annualized Adjusted EBITDA”, “Adjusted Net Debt” and “Revenue Backlog”. These metrics are discussed below.

Total Adjusted EBITDA: Adjusted EBITDA is the EBITDA of our operating segments adjusted for amounts invoiced under finance leases. This is used as a

supplemental financial measure by management and investors to assess the Partnership’s total financial and operating performance. Management believes that it

assists management and investors by increasing comparability of its total performance from period to period and against the performance of other companies.

Adjusted EBITDA is a non GAAP financial measure and should not be considered as an alternative to net income or any other performance measure presented in

accordance with US GAAP. Annualized Adjusted EBITDA is “Total Adjusted EBITDA” multiplied by 4. Management believe that this is a useful performance measure

as it includes a full year of FLNG EBITDA. Total Adjusted EBITDA is a non GAAP measure and should not be considered as an alternative to net income or any other

performance measure presented in accordance with GAAP. Please see the next slide for a reconciliation.

Adjusted Net Debt: Adjusted Net Debt includes short and long term third party borrowings (inclusive of our proportionate share of Hilli LLC’s debt) and our obligations

under our finance leases offset by cash, cash equivalents and restricted cash. Adjusted Net Debt is a non-GAAP financial measure used by investors to measure our

performance and should not be considered as an alternative to any other indicator of Golar Partners' performance calculated in accordance with U.S. GAAP. The

Partnership believes that Adjusted Net Debt assists its management and investors by increasing the comparability of its combined indebtedness and cash position

against other companies in its industry. This increased comparability is achieved by providing a comparative measure of debt levels irrespective of the levels of cash

that a company maintains. We provide a ratio of Adjusted Net Debt to Annualized Adjusted EBITDA to enable our investors to understand better our liquidity position

and our ability to service our debt obligations. This presentation is consistent with management’s view of the business. Adjusted net debt is a non-GAAP liquidity

measure and should not be considered as an alternative to any other indicator of the Partnership’s performance calculated in accordance with US GAAP.

Revenue backlog: Revenue backlog is defined as the contracted daily charter rate for each vessel multiplied by the number of scheduled hire days for the remaining

contract term. Revenue backlog includes the Partnership’s pro-rata share of Hilli LLC’s contractual billings. This is consistent with management’s view of the business

and our presentation in our segment note. Revenue backlog is not intended to represent EBITDA or future cashflows that will be generated from these contracts. This

measure should be seen as a supplement and not a substitute for our US GAAP measures of performance.

(in thousands)Three months ended

June 30, 2020

Three months ended

March 31, 2020

Net income / (loss) 14,283 (33,221)

Depreciation and amortization 20,046 19,963

Other non-operating income (164) (164)

Interest income (4,615) (4,490)

Interest expense 17,115 17,495

Losses on derivative instruments 4,472 46,835

Other financial items, net (237) (790)

Income taxes 4,886 3,862

Equity in net earnings of affiliate (2,935) (1,788)

FLNG’s Adjusted EBITDA 20,285 19,885

Amount invoiced under sales-type lease 4,550 4,550

Total Adjusted EBITDA 77,686 72,137

Annualized Adjusted EBITDA 310,744 288,548

Appendix B – Total Adjusted EBITDA



Appendix C – Adjusted Net Debt

(in thousands)At June 30

2020

At March 31

2020

Current portion of long-term debt and short-term debt 602,633 105,394

Current portion of obligation under finance lease 2,081 1,965

Long term debt 570,985 1,091,361

Obligation under finance lease - non current 111,855 112,617

Total Debt 1,287,554 1,311,337

Less:

Cash and cash equivalents 32,781 35,095

Restricted cash and short-term deposits – current 59,170 44,050

Restricted cash – non current 118,034 133,188

Total Cash, Cash Equivalents and Restricted Cash 209,985 212,333

Net Debt 1,077,569 1,099,004

Share of Hilli’s contractual debt 405,750 414,000

Adjusted Net Debt 1,483,319 1,513,004

Adjusted Net Debt to Annualized Adjusted EBITDA 4.8 5.2


Appendix D - Consolidated Statements

of Income(USD thousands)

2020

Apr-Jun

(unaudited)

2020

Jan-Mar

(unaudited)

Total operating revenues

Vessel operating expenses

Voyage and commission expenses

Administrative expenses

Depreciation and amortization

Total operating expenses

Operating income

Other non-operating income

Interest income

Interest expense

Losses on derivative instruments and other financial items, net

Income / (Loss) before tax, earnings of affiliate and non-controlling interests

Income taxes

Equity in net earnings of affiliate

Net income / (loss)

Net (income) / loss attributable to non-controlling interests

Net income / (loss) attributable to Golar LNG Partners LP Owners

72,114

(12,991)

(2,359)

(3,913)

(20,046)

(39,309)

32,805

164

4,615

(17,115)

(4,235)

16,234

(4,886)

2,935

14,283

(19)

14,264

69,815

(16,212)

(2,184)

(3,717)

(19,963)

(42,076)

27,739

164

4,490

(17,495)

(46,045)

(31,147)

(3,862)

1,788

(33,221)

77

(33,144)


Appendix E – Consolidated Balance

Sheet(USD thousands)

2020

Jun 30

Unaudited

2020

Mar 31

Unaudited

Current assets

Cash and cash equivalents

Restricted cash and short-term deposits

Current portion of net investment in leased vessel

Other current assets

Non-current assets

Restricted cash

Investment in affiliate

Vessels and vessel under finance lease, net

Net investment in leased vessel

Other non-current assets

TOTAL ASSETS

Current liabilities

Current portion of long-term debt

Current portion of obligation under finance lease

Amount due to related parties

Other current liabilities

Non-current liabilities and equity

Long term debt

Obligation under finance lease

Other non-current liabilities

Total Partners’ capital

Non-controlling interest

TOTAL LIABILITIES AND EQUITY

32,781

59,170

2,327

43,746

118,034

187,735

1,445,722

110,613

50,781

2,050,909

602,633

2,081

3,710

131,203

570,985

111,855

31,269

514,000

83,173

2,050,909

35,095

44,050

2,178

37,457

133,188

190,609

1,462,197

111,113

49,437

2,065,324

105,394

1,965

4,664

130,705

1,091,361

112,617

31,267

504,197

83,154

2,065,324


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