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2014-05-28

Correction: Golar LNG Partners LP: Interim Results for the Period Ended March 31, 2014

Highlights

* Golar LNG Partners LP ("Golar Partners" or the "Partnership") reports net
income attributable to unit holders of $32.7 million and operating income
of $53.8 million for the first quarter of 2014 ("the first quarter")
* Generated distributable cash flow of $36.1 million for the first quarter of
2014 with a coverage ratio of 1.06
* Declared a first quarter 2014 distribution of $0.5225 per unit
* Completed the acquisition of the Floating Storage and Regas Unit
("FSRU"),Golar Igloo, from Golar LNG Limited ("Golar") for $310 million

Financial Results Overview

Golar Partners reports net income attributable to unit holders of $32.7
million and operating income of $53.8 million for the first quarter, as
compared to net income attributable to unit holders of $47.6 million and
operating income of $54.7 million for the fourth quarter of 2013 ("the fourth
quarter") and net income attributable to unit holders of $30.3 million and
operating income of $45.2 million for the first quarter of 2013.

The improvement in operating income over the same period in 2013 is a
reflection of three factors. First, theGolar Spirit
commenced 2013 in drydock and this resulted in approximately 57 days of
offhire and associated positioning costs during that quarter. Secondly,
during the intervening period, there was a biennial uplift to the capital
component of theGolar Spirit
andGolar Winter
and a further increase in the charter rate forGolar Winter
also took effect to compensate for the completion of the modification works.
Thirdly, the Partnership completed the acquisition of theGolar Maria
on February 7, 2013 and in so doing assumed the operating income of this
vessel for the remainder of the quarter. First quarter 2014 operating income
incorporates a full quarter's contribution from theGolar Maria
. The improved results are partially offset by increased depreciation and
amortization as a consequence of the acquisition of theGolar Maria
, the additional investment inGolar Winter
modifications and four vessel drydocks over the intervening 12 months.

Taking account of the reduced number of calendar days in the first quarter and
four day revenue contribution from the recently acquiredGolar Igloo
, revenue net of voyage expenses was consistent with the fourth quarter.
Operating expenses increased by $1 million largely due to an increase in
repairs and maintenance expenditure. Administration expenses were, however,
marginally lower in the first quarter by $0.1 million.

As anticipated, net interest expense decreased to $9.6 million for the first
quarter of 2014 compared to $10.5 million for the fourth quarter. The
reduction primarily reflects the expiry of a relatively high cost interest
rate swap that matured during November together with reduced interest expense
in respect of two revolving facilities that were paid down at the end of 2013
using $70 million of the December 5th 2013 equity issue proceeds. Shortly
before completion of the Igloo acquisition on March 28, these revolving
facilities were redrawn to part fund the purchase. As at March 31, the
Partnership has undrawn facilities of $65 million.

Other financial items for the first quarter recorded a loss of $6.2 million
compared with a gain of $1.5 million in the fourth quarter. This included
non-cash mark-to-market valuation losses on interest rate swaps of $1.8
million in the first quarter compared to gains on interest rate swaps of $6.0
million in the fourth quarter.

Tax at $2.8 million for the first quarter has normalized after recording a
credit of $4.3 million in respect of the fourth quarter following a year-end
reassessment of 2013 tax expense.

The Partnership's Distributable Cash Flow1for the first quarter was $36.1
million as compared to $44.8 million in the fourth quarter and the coverage
ratio was 1.06 as compared to 1.32 for the fourth quarter. The elevated
fourth quarter coverage is primarily a result of the 2013 tax credit. This
was offset to some extent by the negative carry on the additional 5.2 million
units issued on December 5th. The lower first quarter coverage ratio also
reflects distributions paid on the additional units issued ahead of the Igloo
acquisition. If distributions paid on these new units are excluded, the
coverage ratio in the first quarter would have been 1.16. Declared
distributions are payable on all units as at the record date.

On April 24, 2014, Golar Partners declared a distribution for the first
quarter of 2014 of $0.5225 per unit, which was paid on May 14, 2014 on total
units of 62,870,335.

Golar Igloo Acquisition

In December 2013, the Partnership announced its intention to acquire interests
in the company that owns and operates the FSRU,Golar Igloo ("Igloo")
from Golar for a purchase price of $310 million. TheIgloo,
which is the Partnership's first newbuild FSRU, was delivered by Samsung on
February 5 and immediately proceeded to Singapore for bunkering and storing
up before leaving for Kuwait on February 14. The FSRU arrived off Kuwait and
was successfully commissioned for her new charterers, the Kuwait National
Petroleum Company ("KNPC"), during March. Upon completion of the
commissioning and satisfaction of the remaining closing conditions, Golar
Partners concluded the acquisition on March 28. The FSRU is expected to
generate annual contracted revenues, after deducting voyage, commission and
operating expenses of between $32.0 million to $34.0 million. This estimate
does not include any revenues that theIgloo
may earn under short-term charters for the three-month period each year during
which theIgloo
is not providing FSRU services to KNPC under charter. The Board is pleased
that Golar was able to successfully arrange the commissioning cargo for
theIgloo
and the Partnership hopes to be able to assist KNPC with the transportation of
future cargo acquisitions ahead of each March regas season.

The Partnership financed the acquisition of theIgloo
by assuming debt on the vessel amounting to $161.3 million and the remainder
from the net proceeds of its fourth follow-on equity offering that completed
in December 2013.

1Distributable cash flow is a non-GAAP financial measure used by investors to
measure the performance of master limited partnerships. Please see Appendix A
for a reconciliation to the most directly comparable GAAP financial measure.

Financing and Liquidity

As of March 31, 2014, the Partnership had cash and cash equivalents of $48.9
million and undrawn revolving credit facilities of $65 million. Total debt
and capital lease obligations net of restricted cash was $1,113.5 million as
of March 31, 2014.

Based on the above debt amount and annualized2first quarter 2014 adjusted
EBITDA3, Golar Partners has a debt to adjusted EBITDA multiple of 3.9 times.
This multiple is expected to fall in the second quarter having been adversely
impacted in the first quarter by the assumption of the Igloo related debt
without a corresponding full quarter's contribution to EBITDA.

Included within the current portion of long term debt is an $83.3 million debt
facility in respect of theGolar Maria
that matures in December 2014. The Partnership plans to refinance this
facility ahead of its expiration and is in discussions with a number of banks
with a view to achieving the most effective capital structure. The Board is
confident that the facility can be refinanced at attractive terms.

As of March 31, 2014, Golar Partners had interest rate swaps with a notional
outstanding value of approximately $1,211 million (including swaps with a
notional value of $227.2 million in connection with the Partnership's bonds
but excluding $100 million of forward starting swaps) representing
approximately 109% of total debt and capital lease obligations, net of
restricted cash. Whilst the Partnership is currently over-hedged, this will
normalize in the second quarter when $130 million swaps mature between April
and May 2014. The average fixed interest rate of swaps related to bank debt
is approximately 2.3% with average maturity of approximately 2.8 years as of
March 31, 2014.

As of March 31, 2014, the Partnership had outstanding bank debt of $887.5
million with average margins, in addition to LIBOR or fixed swap rates, of
approximately 2.3%. In addition, the Partnership has bonds of $217.1 million
with a fixed rate of 6.485%.

2Annualized means the figure for the quarter multiplied by 4.

3Adjusted EBITDA: Earnings before interest, other financial items, taxes,
non-controlling interest, depreciation and amortization. Adjusted EBITDA is a
non-GAAP financial measure used by investors to measure our performance.
Please see Appendix A for a reconciliation to the most directly comparable
GAAP financial measure.

Outlook

The Partnership is pleased to have completed the acquisition of the Golar
Igloo
in March 2014 which also adds a five year contract with KNPC to the revenue
backlog which in total now stands at $2.5 billion as at March 31, 2014. As a
result of the acquisition management have guided that they will recommend to
the Board a distribution increase of between $0.09 and $0.11 per unit per
annum, approximately a 4.5% increase, with effect from the second quarter of
2014.

During 2013, Golar LNG also contracted the FSRU,Golar Eskimo
, to the Government of Jordan. The vessel will be moored at a purpose built
structure that is to be constructed by the Aqaba Development Corporation off
the Red Sea port of Aqaba. TheGolar Eskimo
is scheduled to be ready for service in the latter part of the fourth quarter
2014 and its ten year contract is due to commence during the first quarter of
2015. This vessel will also be offered to the Partnership to acquire.

Golar Partners fleet has performed well during the quarter with 100%
utilization underlying a strong operating earnings result. Without the impact
of the 5.2 million units issued to finance the Igloo the coverage ratio would
have been 1.16 as compared to the actual ratio of 1.06. Earnings for the
second quarter of 2014 are expected to be positively impacted by a full
quarter's contribution from the Igloo as compared to just 4 days in the first
quarter.

The Partnership is also in a strong financial position. Adjusting for the
Igloo debt assumed at the end of the first quarter and the Igloo's 4 days of
earnings, the net debt to EBITDA ratio would have been 3.4.

With solid operating performance, good coverage and a strong financial
position, Golar Partners is well positioned to make further acquisitions even
without raising additional equity. These include the likely Golar Eskimo
acquisition as well as further Golar LNG carriers, FSRUs and potentially
long-term contracted floating liquefaction assets. This growth potential
underpins the Board's confidence in the Partnership's ability to continue t...

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