Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q2 2020 Earnings Presentation
17 slides from Dynagas LNG Partners LP's earnings presentation, Sep 4, 2020
Slide 1: Q2 2020 Financial Results Presentation
Q2 2020 Financial Results Presentation September 4, 2020
Slide 2: Forward Looking Statements and Disclaimer
Forward Looking Statements and Disclaimer 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 ou
Slide 3: Forward Looking Statements and Disclaimer
Forward Looking Statements and Disclaimer In addition, unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements. Please read the Partnership’s filings with the Securities and Exchange Commission for more information regarding these factors and th
Slide 4: Recent Developments
Recent Developments Quarter Highlights Net Income of $6.4 million and earnings per common unit of $0.10 after accounting for $3.4 million of non-cash mark to market interest rate swap loss; Adjusted Net Income(1) of $9.9 million and adjusted earnings per common unit of $0.20 excluding non-cash mark
Slide 5: Financial Performance Q2 2020
Financial Performance Q2 2020 Revenues ($m) Adjusted EBITDA ($m) Adjusted Net Income ($m) $40.0 $30.0 $20.0 $34.5 $33.9 $23.7 $24.1 $30.8 $30.0 $20.9 $20.0 $9.9 $20.0 $10.0 $7.1 $10.0 $10.0 $0.8 $0.0 $0.0 $0.0 q2 2019 q1 2020 q2 2020 q2 2019 q1 2020 q2 2020 q2 2019 q1 2020 q2 2020 Q2 2020 Q1 2020 Q2
Slide 6: Income Statement Q2 2020 Financial Highlights
Income Statement Q2 2020 Financial Highlights Q2 2020 Income Statement (USD thousands) Increased profitability due to reduced financing costs, 100% utilization and stable vessel operating expenses at $12,630 per day. Interest rate swap for full debt outstanding commenced June 29, 2020 at fixed LIBOR
Slide 7: Q2 2020 Cash Flow Highlights
Q2 2020 Cash Flow Highlights Q2 2020 Cash Flow Generation (USD thousands) Significant portion of the Partnership’s cash flow utilized to reduce leverage. For the quarter, generated $3.5m in cash after distributions to preferred unitholders, excluding working capital changes. From a cash flow perspec
Slide 8: Liquidity and Key Balance Sheet Data
Liquidity and Key Balance Sheet Data US$ million June 30, 2020 Debt amortizing at 1.5x the rate our ship’s book Cash(1) 63.3 depreciation, creating equity value and building balance sheet capacity. Debt Outstanding 639 Net Debt to Total Capitalization of 60% and Net Debt Total Partners’ Book Equity
Slide 9: Cash Breakeven Analysis
Cash Breakeven Analysis Q2 2020 Per Day Per Vessel Cash Breakeven Levels Attractive cash breakeven rates at below USD 50,000 per day excluding distributions to Preferred Unitholders for q2 2020. Reallocation of cash flow towards debt repayment and lower cost of financing. Per vessel Q2 2019 debt rep
Slide 10: Fleet Profile
Fleet Profile Fleet ◼ 6 LNG carriers ◼ 914,100 cbm (149,700 cbm for steam turbine LNG fleet, 155,000 cbm for the tri-fuel Total cbm capacity diesel engine LNG fleet (TFDE’s)) Fleet average age ◼ ~10.1 years(1) Average remaining charter duration ◼ ~8.1 years(1)(2) ◼ Equinor, Yamal (Total, CNPC, Silkr
Slide 11: Contracts Coverage
Contracts Coverage L NG Carrier Year Capacity Name Built (cbm) Charterer 2020 2021 2022 Clean 2007 149,700 2026 Ener gy Ob River 2007 149,700 2028 (1) A m ur 2028 2008 149,700 River (1) (1) A r ctic 2013 155,000 A ur or a Yenis ei 2013 155,000 2033/34 River L ena 2034/35 2013 155,000 River Optional
Slide 12: Long Term Charters vs. Spot Market Strategy
Long Term Charters vs. Spot Market Strategy DLNG Contracted Rates vs. LNG Carrier Spot Rates (1) (2) $140,000 12.00 $120,000 Strategy of employing LNG carriers 10.00 on long term contracts has resulted in historical outperformance as Average Remaining Contract Duration $100,000 8.00 quarterly DLNG c
Slide 13: Prior Quarters Operating Expenses and Utilization Rates
Prior Quarters Operating Expenses and Utilization Rates DLNG Utilization Rates vs. Operating Expenses 16,000 100% Stable vessel operating expenses 14,000 combined with high utilization rates 80% underpin business efficacy and 12,000 profitability. Managed to tackle successfully COVID- DLNG Utilizati
Slide 14: Dynagas LNG Partners LP Summary
Dynagas LNG Partners LP Summary Outstanding operational performance since inception and during COVID-19 OPERATIONAL pandemic. Stable operating expenses combined with full utilization. $48 million annually DELEVERAGING LTM Net Debt / EBITDA expected to reduce from 6x in q2 2020 to 5.5x in q2 2021(1)
Slide 15: Appendix
Appendix 14
Slide 16: Reconciliation of net income to Adjusted Net Income and Adjusted EPU
Reconciliation of net income to adjusted Net Income and Adjusted Earnings / (loss) per Common Unit Three Months Ended (In thousands of U.S. Dollars, except for units and per unit data) June 30, 2020 2019 Net Income $ 6,427 $ 932 Amortization of deferred revenue and deferred charges 106 (161) Loss on
Slide 17: Reconciliation of Net income to Adjusted EBITDA
Reconciliation of Net income to Adjusted EBITDA 1 Three Months Ended (In thousands of U.S. Dollars) June 30, 2020 2019 Net income $ 6,427 $ 932 Net interest and finance costs 6,340 12,542 Depreciation 7,906 7,562 Loss on derivative financial instrument 3,352 - Amortization of deferred charges 54 36