Dynagas LNG Partners LP Q3 FY2022 earnings call

• Operational Highlights: Successfully completed special service of Amur River OB River with ballast water installation. Fleet of six LNG carriers had 100% utilization for 10th consecutive quarter. • Debt Matters: Voluntary prepayment of $18.7 million from restricted cash collateral due to Amsterdam Trade Bank being designated as an SDN. • Russia-Ukraine Situation: Current U.S. and EU sanctions regime broadly exempts LNG shipping, not materially affecting business operations. Vessels on charter to SEFE, and ownership transfer of SEFE to German government discussed. • Fleet and Charters: Fleet has 6 LNG carriers with contract backlog of about $915 million, average backlog per vessel ~$152 million, average remaining charter period ~6.2 years. Vessels on time charters with charterers like Equinor, SEFE, Yamal Trade.

For the third quarter of 2022, Dynagas LNG Partners reported net income of $7.4 million, earnings per common unit of $0.12, adjusted net income of $4.5 million, and adjusted EBITDA of $20 million. All six LNG carriers in the fleet were operating under respective long-term charters with a 100% utilization for the 10th consecutive quarter. In terms of revenue contribution, the fleet's operation under long-term charters is the key segment, with no specific percentage breakdown provided but the absolute financials as mentioned.

• Arctic Aurora: Expected to be in a good position to benefit from strong market outlook when opening in Q3, Q4 ’23. • FSRU Market: Some European countries looking to accelerate infrastructure via FSRUs, partnership may consider converting existing LNG carriers to FSRUs. • Deleveraging: Continued deleveraging efforts to build equity value with stable long-term cash flow visibility and improved market conditions.

• Russia-Ukraine Situation: Shed light on fragile European energy infrastructure and global underinvestment in LNG production/receiving facilities. • Competition: EU goal to replace Russian pipeline gas with LNG increases competition for LNG supply and shipping. • Sanctions: Potential impact of sanctions on business operations if not properly managed as seen with Amsterdam Trade Bank situation.

Q: Any sense as to the timing or charters being pretty aggressive in terms of when they're looking to lock things in for the Arctic Aurora?

A: Yes. We see appetite for FSRUs right now. Expect that the vessel will probably be locked in or [indiscernible] in the next quarter.

Q: The prepayment of debt, doesn't change anything in terms of the terms of the loan or ability to do things like pay dividends?

A: Yes, correct. Just used the funds for a restricted cash collateral account, so it's just a prepayment of the Amsterdam Trade Bank participation.

Q: Thoughts on refinancing the debt and the value of the underlying assets behind it, changed materially in the last year?

A: Vessels are locked in time charters. By renewal time, debt will be less than $70 million per vessel. We'll start looking at refinancing within six months of 2023. Market fundamentals are materially better than before.