Slide 1: Dynagas LNG Partners: 2nd Quarter and Six Months ended June 30, 2016
Dynagas LNG Partners (“DLNG”) 2nd Quarter and Six Months ended June 30, 2016 29 July 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: Recent Developments
Recent Developments Quarterly Common and On 6 July, 2016, the Partnership announced a cash distribution for the second quarter of Subordinated Units Cash 2016 of $0.4225 per common and subordinated unit which was paid on July 19, 2016 to all Distribution unit holders of record as July 12, 2016. Tota
Slide 4: Q2 and Six Months ended June 30, 2016 Financial Results
Q2 and Six Months ended June 30, 2016 Financial Results Dynagas LNG Partners reports results for the quarter and six months ended June 30, 2016: For the second quarter of 2016: • Net income attributable to unitholders of $17.0 million • Adjusted Net Income of $18.8 million(1) • Adjusted EBITDA of $3
Slide 5: Selected Financial and Operational Data
Selected Financial and Operational Data Selected Operational and Financial Data (United 3 Months ended 6 Months ended States Dollars in thousands except for operational data) 30-06-16 30-06-15 30-06-16 30-06-15 Average Number of vessels 6 5 6 5 Available Days 546.0 455.0 1,092.0 905.0 Voyage revenue
Slide 6: Distributable Cash Flow and Coverage Ratio
Distributable Cash Flow and Coverage Ratio Distributable Cash Flow (USD thousands) 3 Months ended 6 Months ended 30-06-16 30-06-15 30-06-16 30-06-15 Net Income $16,966 $14,303 $34,101 $29,181 Depreciation $7,559 $6,035 $15,111 $12,003 Amortization of deferred finance fees $501 $385 $990 $770 Net Int
Slide 7: 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 $82 Sponsor Revolving Credit Facility $30 Unsecured Bond Debt, $250 Total Available Liquidity $112 Equity Market Cap., $477 Secured Bank Debt, $489 Net
Slide 8: Debt Maturity Profile
Debt Maturity Profile Maturity Profile (USD in millions) $300 $250 $200 $150 $100 $50 $- 2016 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: Amo
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 $0.33 per Unit $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 Cash Distribution Payment Date Total cash distributions
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 ~6 years(1) Remaining Average Charter Duration ~10.1 years(1)(2) Counterparties Gazprom, BG Group,
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 Energy Ob River 2007 149,700 2028 Amur 2008 149,700 2028 River Arctic 2013 155,000 Aurora (1) Yenisei 2034 2013 155,000 Conditional River Le
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: 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 15: Existing LNG Carrier fleet and orderbook
Existing LNG Carrier fleet and orderbook Global LNG Carrier orderbook LNG Carrier orderbook activity Marginal activity 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.
Slide 16: 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 17: Growth in LNG Trade Routes
Growth in LNG Trade Routes LNG global trade has grown increasingly Growth in LNG Trade Routes complex over the last 20 years 250 • In 1995 there were only 9 trade routes globally. By 2015, the number had increased to 232 232 • This equates to an 18 percent Compound Annual Growth Rate (CAGR) 200 over
Slide 18: LNG Supply – Demand Growth through 2020
LNG Supply – Demand Growth through 2020 Anticipated ~134 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
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 Six Months Ended June 30, June 30, (In thousands of U.S. dollars) 2016 2015 2016 2015 Net Income $ 16,966 $ 14,303 $ 34,101 $ 29,181 Charter hire amortization (15) 302 (29) 637 Amortization o
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Six Months Ended June 30, June 30, (In thousands of U.S. dollars) 2016 2015 2016 2015 Reconciliation to Net Income Net Income $ 16,966 $ 14,303 $ 34,101 $ 29,181 Net interest and finance costs 8,707 6,929 17,405 13,814 Depreciation 7