The decision by two of the Teekay family of maritime MLPs to cut dividends is causing a ripple effect among peer companies.
Wednesday night, Teekay Offshore Partners and Teekay LNG Partners announced they would cut fourth-quarter distributions to unit holders by some 80% from third-quarter levels. Teekay’s corporate sponsor also slashed its fourth-quarter dividend 90% from third-quarter levels.
The cuts caught investors by surprise, with all the Teekay entities seeing their securities drop some 50% Thursday.
