Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q4 2015 Earnings Presentation
21 slides from Dynagas LNG Partners LP's earnings presentation, Feb 17, 2016
Slide 1: Dynagas LNG Partners 4th Quarter 2015 Earnings Presentation
Dynagas LNG Partners (“DLNG”) 4th Quarter 2015 Earnings Presentation February 17, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of applicable federal securities laws. All statements included in this presentation which are not historical or current facts (including our financial for
Slide 3: Today's Presenters
Today’s Presenters Tony Lauritzen Chief Executive Officer and Director Michael Gregos Chief Financial Officer 2
Slide 4: Recent Developments
Recent Developments Acquisition from Sponsor On December 21, 2015 the Partnership completed the acquisition of the 2013 built ice class of the LNG carrier Lena LNG carrier Lena River contracted to Gazprom until Q4 2018 for a purchase price of US$240 River million. New term loan bank On December 17,
Slide 5: Q4 and Year Ended 2015 Financial Results
Q4 and Year Ended 2015 Financial Results Dynagas LNG Partners reports results for the fourth quarter and year ended December 31, 2015: For the fourth quarter of 2015: • Adjusted Net Income(1) attributable to unitholders of $15.0 million. • Adjusted EBITDA of $28.5 million(1). • Distributable Cash Fl
Slide 6: Selected Financial and Operational Data
Selected Financial and Operational Data Selected Operational and Financial Data (USD in 3 Months 12 Months thousands) 31-12-15 31-12-14 31-12-15 31-12-14 Average Number of vessels 5.1 5.0 5.0 3.8 Available Days 471 460 1,836 1,384 Voyage revenues $37,016 $36,375 $145,202 $107,088 Operating Income $2
Slide 7: Distributable Cash Flow
Distributable Cash Flow Distributable Cash Flow (USD in thousands) 3 Months 12 Months 31-Dec-15 31-Dec-14 31-Dec-15 31-Dec-14 Net Income $14,826 $15,320 $60,050 $50,561 Depreciation $6,283 $6,101 $24,387 $17,822 Amortization of deferred finance fees $392 $391 $1,545 $785 Net Interest and finance cos
Slide 8: Capital Structure
Capital Structure Capital Structure Liquidity and Capital Resources USD millions (1) Series A • Total cash of $49.3 million as of December 31, 2015. Preferred Units, 75 • Further $30 million available credit support from our Sponsor. • Total Long-Term Debt as of December 31, 2015: $ 688 million Equi
Slide 9: Quarterly Distribution
Cash Distributions Cumulative Number of Increase in Effective Quarter Quarterly Cash Increase in operational Cash Distribution Payment Date Distribution Ended Distribution per Unit Distributions vessels for a per Unit per Unit full quarter 31 December, 2013 Feb-14 0.365 3 31 March, 2014 May-14 0.365
Slide 10: Partnership Fleet Profile
Partnership Fleet Profile Vessels 6 LNG carriers Total Capacity 914,100 cbm (149,700 cbm each for initial fleet, 155,000 for the Arctic Aurora, Yenisei River and Lena River) Fleet Average Age ~5.5 years(1) Remaining Average Charter Duration ~3.8 years(1)(2) Counterparties Gazprom, BG Group
Slide 11: Fixed Charters Provide Steady, Predictable Cash Flows
Fixed Charters Provide Steady, Predictable Cash Flows LNG Carrier Year Capacity Name Built (cbm) Charterer 2016 2017 2018 2019 2020 Clean 2007 149,700 Energy Ob River 2007 149,700 Amur 2008 149,700 2028 River Arctic (1) 2013 155,000 Aurora Yenisei 2013 155,000 River Lena 2013 155,000 River Charterer
Slide 12: Sponsor Recent Developments
Sponsor Recent Developments Dynagas Holding Ltd. (the “Sponsor”) finalized the following agreements for the Yamal LNG Project: Newbuilding contracts for five 172,000 cubic meter Arc-7 newbuilding contracts to be constructed by Daewoo Shipbuilding and Marine Engineering Co., Ltd of South Korea for a
Slide 13: Drop-Down Opportunity
Drop-Down Opportunity Potential fleet growth with drop down pipeline of 9 high specification LNG Carriers all on long term contracts with high quality customers (3) 172,410 172,410 172,410 172,410 172,410 162,000 162,000 2,424,150 162,000 914,100 162,000 155,000 155,000 155,000 cbm (cubic meters) 14
Slide 14: Industry Overview
Industry Overview 13
Slide 15: Existing LNG Carrier fleet and orderbook
Existing LNG Carrier fleet and orderbook Global LNG Carrier Fleet & orderbook LNG Carrier orderbook LNG Carriers: existing and on order (number of vessels) LNG Carriers: on order (number of vessels) Vessels on order: 14 available for charter LNG Carriers on order: committed Vessels on order: Vessels
Slide 16: LNG Supply – Demand Growth through 2020
LNG Supply – Demand Growth through 2020 Anticipated ~140 Mtpa of new supplies by 2020, a 57% New LNG Export Production increase from 2015 • LNG trade has remained relatively flat, ~240 mt, since Million Tons of LNG 2011 due to constrained supply 160 USA Australia • New LNG supply will quickly ramp u
Slide 17: LNG Supply – Demand Growth through 2020
LNG Supply – Demand Growth through 2020 Anticipated ~140 Mtpa of new supplies by 2020, a 57% New LNG Export Production increase from 2015 • LNG trade has remained relatively flat, ~240 mt, since Million Tons of LNG 2011 due to constrained supply 160 USA Australia • New LNG supply will quickly ramp u
Slide 18: LNG Shipping Balance Outlook Through 2020
LNG Shipping Balance Outlook Through 2020 • The shipping market is expected to tighten by 2017 LNG Vessel Supply-Demand Balances as Australian and U.S. export projects ramp up. # of Vessels (Normalized to 160,000m3) • Our Base Case LNG Vessel Supply-Demand 600 Balance is a conservative forecast basi
Slide 19: Appendix
Appendix 18
Slide 20: Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per common unit
Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per common unit Reconciliation of Net Income to Adjusted Net Income available to common Three Months Ended Year Ended unitholders and Adjusted Earnings per common unit (in USD thousands) December 31, December 31, 2015 2014 201
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Year Ended December 31 Adjusted EBITDA Statistics & Reconciliation (USD in December 31 thousands) 2015 2014 2015 2014 Reconciliation to Net Income Net Income $14,826 $15,320 $60,050 $50,561 Net interest and finance costs $7,201 $6,93