Dynagas Lng Partners Lp · NYSE:DLNG
Dynagas Lng Partners Lp — Q1 2016 Earnings Presentation
21 slides from Dynagas Lng Partners Lp's earnings presentation, May 18, 2016
Slide 1: Dynagas LNG Partners 1st Quarter 2016 Earnings Presentation
Dynagas LNG Partners (“DLNG”) 1st Quarter 2016 Earnings Presentation May 18, 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 New Lena River, Yenisei The Partnership entered into long term time charter contracts with Yamal Trade Pte. for the River and Ob River time employment of the Lena River and the Yenisei River, each with an initial term of 15 years, charter contracts which may be extended by three
Slide 5: First Quarter 2016 Financial Highlights
First Quarter 2016 Financial Highlights Dynagas LNG Partners reports results for the three months ended March 31, 2016 : • Adjusted Net Income(1) attributable to unitholders of $18.9 million. • Adjusted EBITDA of $35.2 million(1). • Distributable Cash Flow of $22.7 million(1). • Adjusted Earnings of
Slide 6: Selected Financial and Operational Data
Selected Financial and Operational Data 3 Months Ended Selected Operational and Financial Data (USD in thousands) 31-03-16 31-03-15 Average Number of vessels 6.0 5.0 Available Days 546 450 Voyage revenues $42,741 $35,620 Operating Income $26,004 $21,710 Adjusted EBITDA $35,178 $28,066 Net Income $17
Slide 7: Strong Distributable Cash Flow and Coverage Ratio
Strong Distributable Cash Flow and Coverage Ratio Distributable Cash Flow (USD in thousands) Quarter Ended 31-Mar-16 31-Mar-15 Net Income $17,135 $14,878 Depreciation $7,552 $5,968 Amortization of deferred finance fees $489 $385 Net Interest and finance costs, excluding amortization $8,209 $6,500 Am
Slide 8: Capital Structure and Liquidity
Capital Structure and Liquidity Capital Structure (USD in Millions) (1) Liquidity and Capital Resources (USD in Millions) Cash and Cash Equivalents $79 Unsecured Bond Debt, Sponsor Revolving Credit Facility $30 $250 Equity Market Total Liquidity $109 Cap., $472 Secured Bank Debt, $497 Net debt / Adj
Slide 9: Debt Maturity Profile
Debt Maturity Profile Maturity Profile (USD in millions) $300 $250 $200 $150 $100 $50 $- 2016 2017 2018 2019 2020 2021 First debt maturity: Non amortizing 6.25% senior unsecured notes due October 2019 2020 and 2021 debt maturities: Amortizing commercial bank debt 8
Slide 10: Quarterly Distribution
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 Cash Distribution Payment Date Total cash distributions paid to common unith
Slide 11: 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 ~5.8 years(1) Remaining Average Charter Duration ~10.3 years(1)(2) Counterparties Gazprom, BG Grou
Slide 12: 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 Energy (2) Ob River 2007 149,700 2028 Amur 2028 2008 149,700 River Arctic 2013 155,000 Aurora (1) Yenisei 2013 155,000 Conditional 2034 Rive
Slide 13: 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 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 Orderbook: Fleet employment Average world cargo size is about 143,000 cubic meters making these vessels small. Existing global fleet includes a significant count of (too) small vessels. The LNG carrier orderbook is mainly
Slide 16: Existing LNG Carrier fleet and orderbook
Existing LNG Carrier fleet and orderbook Global LNG Carrier orderbook LNG Carrier orderbook activity No ordering since Q3 - 15 Largest share of orderbook is to be delivered at time with large increase in LNG production. Slowdown in ordering activity Source data: Poten and Partners and Company. . 15
Slide 17: World Energy Outlook Through 2035
World Energy Outlook Through 2035 Anticipated ~10% increase in world energy production World Energy Production 1990-2035. within 2020 and ~ 30% within 2035. • Largest energy sources are from Oil, Coal and Gas. • Gas has been growing faster compared to Oil and Coal and is expected to grow by 39% with
Slide 18: LNG Supply – Demand Growth through 2020
LNG Supply – Demand Growth through 2020 Anticipated ~137 Mtpa of new supplies by 2020, a 55% New LNG Export Production increase from 2015 Million Tons of LNG • LNG trade has remained relatively flat, ~240 mt, since 160 2011 due to constrained supply USA Australia Russia Malaysia • New LNG supply wil
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 Three Months Ended March 31, (In thousands of U.S. dollars) 2016 2015 Net Income $ 17,135 $ 14,878 Charter hire amortization (14) 335 Amortization of fair value of acquired time charter 1,807 — Adjusted Net Inc
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended March 31, (In thousands of U.S. dollars) 2016 2015 Reconciliation to Net Income Net Income $ 17,135 $ 14,878 Net interest and finance costs (1) 8,698 6,885 Depreciation 7,552 5,968 Amortization of fair value of acquired time charter