SEAL-PA

Seapeak LLC Form 6-K Summary: Quarter Ended September 30, 2025

Business Context and Reporting Period

This Form 6-K reports the unaudited consolidated financial results for Seapeak LLC and its subsidiaries for the three and nine months ended September 30, 2025. Seapeak is an international provider of marine transportation services focusing on liquefied natural gas (LNG) and natural gas liquid (NGL) carriers. The company operates a fleet of vessels under medium to long-term fixed-rate charters and holds interests in various joint ventures.

Key Financial Metrics

Material Changes vs. Prior Period

• Significant Impairment: The company recorded a non-cash write-down of $61.8 million on three steam turbine LNG carriers (RasGas II vessels) due to weak market demand and reduced charterer interest. This charge is included in the LNG segment results.
• Restructuring Charges: Restructuring costs of $20.7 million were incurred, primarily for severance related to the dismissal of Spanish seafarers following the decision to restructure the Spanish fleet.
• Revenue Decline: Voyage revenues decreased by approximately 10% year-over-year for the nine-month period, driven by the lay-up of three steam turbine vessels and lower short-term charter rates for vessels that completed long-term contracts.
• Equity Income Drop: Equity income from joint ventures decreased by $31.3 million, largely due to increased credit loss provisions related to estimated charter-free vessel values and unrealized losses on derivative instruments.
• Debt Reduction: Total long-term debt decreased by approximately $182 million due to scheduled repayments and prepayments, despite new borrowings for vessel acquisitions.

Outlook, Risks, and Management Commentary

• Steam Turbine Outlook: Management expects the outlook for steam turbine LNG carriers to remain weak through late 2026 and early 2027. The company has reduced the estimated useful life of these vessels from 25 to 20 years and expects to sell them unless suitable charters are found before their current contracts expire.
• Geopolitical Risks: The Russia-Ukraine war and potential sanctions continue to create volatility. Additionally, new U.S. and Chinese port fees for vessels connected to the opposing nations were announced but subsequently suspended for one year in November 2025, mitigating immediate impact.
• Liquidity Position: Despite a working capital deficit of $231.1 million (driven by current debt maturities), management asserts sufficient liquidity to continue as a going concern for the next 12 months, supported by operating cash flows and distributions from joint ventures.
• Newbuildings: The company has significant commitments for new LNG and LPG carriers, with deliveries scheduled through 2027. Financing for these projects is largely secured through sale-and-leaseback arrangements.

Investor Verification Checklist

• Impairment Validity: Verify the fair value assumptions used for the $61.8 million write-down of the RasGas II steam turbine vessels.
• Charter Expirations: Monitor the status of the three RasGas II vessels as their 20-year charters expire between October 2026 and February 2027.
• Joint Venture Credit Risk: Review the credit loss provisions in equity-accounted joint ventures, which significantly impacted earnings due to lower estimated vessel values at charter end.
• Debt Covenants: Confirm continued compliance with vessel-value-to-loan-balance ratios, particularly given the volatility in second-hand vessel prices.
• Port Fee Impact: Assess the long-term impact of U.S.-China port fee suspensions and potential reinstatement on NGL trade routes.