Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q4 2016 Earnings Presentation
23 slides from Dynagas LNG Partners LP's earnings presentation, Feb 28, 2017
Slide 1: Dynagas LNG Partners 4th Quarter and Year ended December 31, 2016
Dynagas LNG Partners (“DLNG”) 4th Quarter and Year ended December 31, 2016 28 February 2017
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: Recent Developments
Recent Developments Quarterly Common and On January 4, 2017, the Partnership’s Board of Directors announced a quarterly cash Subordinated Units Cash distribution of $0.4225 per common and subordinated unit in respect of the fourth Distribution quarter of 2016. This cash distribution was paid on Janu
Slide 4: Q4 and Year ended December 31, 2016 Financial Results
Q4 and Year ended December 31, 2016 Financial Results Dynagas LNG Partners reports results for the quarter and year ended December 31 2016: For the fourth quarter of 2016: • Adjusted Net Income of $17.3 million(1) • Adjusted EBITDA of $33.9 million(1) • Distributable Cash Flow of $21.3 million(1) •
Slide 5: Selected Financial and Operational Data
Selected Financial and Operational Data Selected Operational and Financial Data (United 3 Months ended Year ended States Dollars in thousands except for operational data) 31-12-16 31-12-15 31-12-16 31-12-15 Average Number of vessels 6 5.1 6 5 Available Days 552 471 2,196 1,836 Voyage revenues $41,38
Slide 6: Distributable Cash Flow and Coverage Ratio
Distributable Cash Flow and Coverage Ratio Distributable Cash Flow (USD in thousands) 3 Months ended Year ended 31-12-16 31-12-15 31-12-16 31-12-15 Net Income $15,475 $14,826 $66,854 $60,050 Depreciation $7,642 $6,283 $30,395 $24,387 Amortization of deferred financing fees $495 $392 $1,984 $1,545 Ne
Slide 7: Capital Structure and Liquidity
Capital Structure and Liquidity Capital Structure (USD in millions) (1) Liquidity (USD in millions) Total Cash $83 Sponsor Revolving Credit Facility $30 Unsecured Total Liquidity $113 Bond Equity Debt, Market $250 Cap., Net debt / Adjusted EBITDA (q4 2016 Annualized) 4.72 x $579 Debt / Adjusted EBIT
Slide 8: Debt Maturity Profile
Debt Maturity Profile Maturity Profile (USD in millions) $300 $250 $200 $150 $100 $50 $- 2017 2018 2019 2020 2021 Principal Unsecured Bond and Secured Debt Repayments on Maturity First debt maturity: Non amortizing 6.25% senior unsecured notes due October 2019 2020 and 2021 debt maturities: Amortizi
Slide 9: Quarterly Distribution
Common Units Cash Distributions Quarterly Cash Distribution per Unit $0.45 $0.43 $0.40 $0.38 Quarterly Distribution $0.35 per Unit $0.33 $0.30 $0.28 $0.25 $0.23 $0.20 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Jul-16 Oct-16 Jan-17 Cash Distribution Payment Date Total cash
Slide 10: Partnership Fleet Profile
Partnership Fleet Profile Fleet 6 LNG carriers Total cbm Capacity 914,100 cbm (149,700 cbm for steam turbine fleet, 155,000 cbm for the TFDE’s) Fleet Average Age ~6.6 years(1) Average remaining charter duration ~10.7 years(1)(2) Counterparties Gazprom, Shell, Statoil, Yamal Total Contract
Slide 11: Long-Term Charters Provide Steady, Predictable Cash Flows
Long-Term Charters Provide Steady, Predictable Cash Flows LNG Carrier Year Capacity Name Built (cbm) Charterer 2016 2017 2018 2019 2020 2021 Clean 2007 149,700 2026 Energy Ob River 2007 149,700 2028 Amur 2008 149,700 2028 River Arctic 2013 155,000 Aurora Yenisei 2013 155,000 2033/34 River Lena 2034/
Slide 12: Drop-Down Opportunities
Drop-Down Opportunities 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)
Slide 13: Industry Overview
Industry Overview 12
Slide 14: Composition of the LNG Fleet & Orderbook
Composition of the LNG Fleet & Orderbook 1. Existing Fleet LNG Vessel Deliveries by Propulsion Type # of Vessels Number of vessels: 450 70 Existing Fleet # of Vessels % of Fleet Average Age 60 185 -266,000 m3 45 15% 8 Yrs 50 167- 185,000 m3 56 14% 2 Yrs 40 150 - 167,500 m3 115 26% 5 Yrs 30 130-150,0
Slide 15: LNG Trade to Increase by Over 50% by 2021
LNG Trade to Increase by Over 50% by 2021 By 2021 global LNG supply is expected to reach Supply by Region, 2011-2021 ~418 mt, an increase of ~56% to 2016 volumes Mt LNG Middle East Atlantic Asia-Pacific Utilization Rate LNG supply has increased from ~242 mt in 2011 to ~268 Actual Forecast 600 90% mt
Slide 16: Global LNG Trade Up ~9% YoY
Global LNG Trade Up ~9% YoY Despite low oil and gas prices, new LNG export projects have Incremental LNG Supply by Region, 12m 2016 (million tons) produced an incremental ~22mt in 2016 In February U.S. export plant Sabine Pass shipped its first cargo to Brazil and loaded 58 cargoes in 2016. +0.2 Aus
Slide 17: Sabine Pass Shipping Patterns
Sabine Pass Shipping Patterns Recent trading patterns (as of end December 2016) from Sabine Pass Ave Laden Equivalent # 160k m3 Total Volume exports indicate 1.75 vessels (160,000 m3) are required on average for Country # Cargos Duration vessels Required Per (Tonnes) (Days) MTPA each million tonne o
Slide 18: The LNG Global Trade Has Grown Increasingly Complex
The LNG Global Trade Has Grown Increasingly Complex The LNG global trade has grown increasingly complex over Geographical Distribution of LNG Import Market Types the last 15 years In 2000 there were only 43 country-to-country trade routes globally. By 2016, the number had expanded to 255 This equate
Slide 19: New Demand Centers Imported Over 22 Million Tonnes in 2016
New Demand Centers Imported Over 22 Million Tonnes in 2016 Several new markets for LNG which emerged over the past four New LNG Demand Growth by Project years have shown significant import growth as LNG prices remain low Poland Lithuania* (Q4 2015) (Q4 2014) New demand centres have helped offset slo
Slide 20: The Floating Regas Market is Growing Fast
The Floating Regas Market is Growing Fast The FSRU market has grown steadily over the past years. In FSRU Projects – Existing, Planned and Proposed 2016 floating regas capacity made up ~15% of total regas capacity, an increase of 4.5% from 2010 This trend is expected to continue as access to new cus
Slide 21: Appendix
Appendix
Slide 22: 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 Three Months Ended Year Ended December 31, 2016 December 31, 2016 (In thousands of U.S. Dollars except for units and per unit data) 2016 2015 2016 2015 Net Income $ 15,475 $ 14,826 $ 66,854 $ 60,050 Charter hir
Slide 23: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Year Ended December 31, 2016 December 31, 2016 (In thousands of U.S dollars) 2016 2015 2016 2015 Reconciliation to Net Income Net Income $ 15,475 $ 14,826 $ 66,854 $ 60,050 Net interest and finance costs 8,883 7,201 34,991 27,939 Dep