Dynagas LNG Partners LP Q2 FY2023 earnings call

• All six LNG carriers in the fleet were operating under long-term charters with esteemed international gas companies.
• Net income for the second quarter of 2023 was $14.4 million, adjusted net income was $5.8 million, and adjusted EBITDA was $23 million.
• Fleet utilization was 91.7% due to an unscheduled repair of the OB River, with the net effect on the Partnership's results for the quarter approximately $0.4 million.
• Entered new time charter party agreements for the Clean Energy and Arctic Aurora with Rio Grande LNG, LLC, adding approximately $270 million to the revenue backlog.
• The Partnership has been deleveraging, repaying $230 million in debt since December 2019, reducing net leverage to 4.3x and increasing book equity value by 42% as of June 30, 2023.

In the second quarter of 2023, Dynagas LNG Partners' net income amounted to $14.4 million, with earnings per common unit reaching $0.31. Adjusted net income stood at $5.8 million, and adjusted EBITDA was $23 million. All six LNG carriers in the fleet were operating under long-term charters. Fleet utilization was 91.7% due to an unscheduled repair of the vessel OB River. The Partnership entered into new time charter party agreements for the Clean Energy and the Arctic Aurora with Rio Grande LNG, LLC, adding approximately $270 million to the revenue backlog. Revenue contribution details aren't explicitly broken down by product segment beyond the fleet's overall performance.

• The demand for LNG is expected to persist due to global population growth, improving living standards, and the shift from polluting fuels to cleaner energy sources.
• The long-term outlook for LNG shipping remains robust, underpinned by sustained demand for LNG shipping from countries seeking energy security and price volatility mitigation.
• The Partnership remains committed to debt reduction, aiming to further augment equity value through stable long-term cash flow visibility.

Matters discussed may be forward-looking statements based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized, including effects of events like COVID-19 on the LNG industry and financial condition, though no specific detailed risks were extensively discussed in the transcript.

Q: Ben Nolan asks about the current credit facility maturing in about a year and refinancing plans.

A: Tony Lauritzen responds that they are in active discussions, see demand for LNG projects from financial institutions, and are in a better position than 2019, with the objective for new financing not to have full dividend addition like current facility, and see interest from banks and financial institutions due to good contract coverage