DLNG

• Fleet: All six LNG carriers were operating on long-term charters for esteemed international gas companies.
• Financing: Concluded new lease financing agreement with China Development Bank Financial Leasing for four LNG carriers, using $344.9 million financing and existing cash reserves to repay previous credit facility ahead of maturity.
• Financial results: Second quarter net income, adjusted net income, and adjusted EBITDA reported. Revenue and TCE had slight changes compared to prior quarter.
• Balance sheet: Total debt reduced to $345 million, leverage metrics improved, with 33% of the fleet debt-free. Contracted average revenue backlog of $173 million per vessel.
• Commercial strategy: Focused on securing long-term charters with prominent gas companies, having a contract backlog of approximately $1.04 billion with an average remaining charter period of ~6.4 years. Global LNG carrier fleet has expanded, with medium-term potential oversupply but long-term demand看好 due to factors like LNG's low emissions, global demand for electrification, etc.

• Next quarter: Board of Directors will evaluate and announce capital allocation strategy.
• Swap maturity: Expect interest expenses to increase when interest rate swap matures on September 18, 2024, with fourth quarterly debt service per day anticipated to increase by about $5,200 per day. Anticipate ~$5 million of additional realized gain from swap maturity.
• Leverage: Despite lower leverage and slightly lower amortization, interest expenses are expected to rise based on current SOFR rates.

For the second quarter of 2024, Dynagas LNG Partners reported net income of $10.7 million and earnings per common unit of $0.20. Adjusted net income stood at $12.4 million, translating to adjusted earnings per common unit of $0.25. Adjusted EBITDA for the period reached $28.6 million. Revenue was $37.6 million, down slightly from $38 million in the first quarter. Average TCE was $67,300 per day, down from $68,100 in the first quarter. Operating income was $18.8 million, a 2.6% decrease from the prior quarter. The fleet of six LNG carriers was 100% utilized on long-term charters. Cash bridge started the quarter with $76 million, ended with $35.6 million after various transactions. Total debt stands at $345 million, with leverage metrics improved, having reduced debt by $378 million since December 2018, and net debt to last 12 months adjusted EBITDA reduced from 6.6 times in 2018 to 2.9 times in 2024.

• Market risk: Short to medium-term shipping capacity may exceed demand.
• Interest rate risk: Exposure to floating interest rates after swap maturity on September 18, 2024, which may impact interest expenses.

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