Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q3 2020 Earnings Presentation
18 slides from Dynagas LNG Partners LP's earnings presentation, Nov 13, 2020
Slide 1: Q3 2020 Financial Results Presentation
Q3 2020 Financial Results Presentation November 13, 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 $10.0 million and earnings per common unit of $0.20; Adjusted Net Income(1) of $10.2 million and adjusted earnings per common unit of $0.21; Adjusted EBITDA(1) of $24.2 million; 100% fleet utilization; Cash distribution of $0.5625 per unit on its
Slide 5: Financial Performance Q3 2020
Financial Performance Q3 2020 Revenues ($m) Adjusted EBITDA ($m) Adjusted Net Income ($m) $40.0 $30.0 $20.0 $34.4 $33.9 $34.3 $23.8 $24.1 $24.2 $30.0 $20.0 $9.9 $10.2 $20.0 $10.0 $10.0 $10.0 $2.8 $0.0 $0.0 $0.0 q3 2019 q2 2020 q3 2020 q3 2019 q2 2020 q3 2020 q3 2019 q2 2020 q3 2020 Q3 2020 Q2 2020 Q
Slide 6: Income Statement Q3 2020 Financial Highlights
Income Statement Q3 2020 Financial Highlights Q3 2020 Income Statement (USD thousands) Profitability stabilizing at increased levels compared to prior quarters due to reduced financing costs, 100% utilization and stable vessel operating expenses at $13,074 per day. Increase in Adjusted EPU to $0.21
Slide 7: Q3 2020 Cash Balance Highlights
Q3 2020 Cash Balance Highlights Q3 2020 Change in Cash Balance(1) (USD thousands) Significant portion of the Partnership’s cash flow utilized to reduce leverage. For the quarter, generated $4m in cash after distributions to preferred unitholders, excluding working capital changes. Significant build
Slide 8: Financial Data
Financial Data 5.7x $48 million $13,074 Q3 2020 Net Debt to LTM EBITDA Annual Debt Repayments Q3 2020 per day per vessel operating expenses 58% $0 $60,962 Q3 2020 Net Debt to Total Book Cap Committed Growth CAPEX Q3 2020 Time Charter Equivalent per day per LNG Carrier $76 million 100% Cash as of Sep
Slide 9: Executing on Deleveraging Strategy
Executing on Deleveraging Strategy Debt amortizing at 1.5x the rate of ship book depreciation, creating equity value and building balance sheet capacity. Significant deleveraging as a result of the amortization requirement on the credit facility de-risks the business with total net leverage decreasi
Slide 10: Cash Breakeven Analysis
Cash Breakeven Analysis Q3 2020 Per Day Per Vessel Cash Breakeven Levels Attractive per vessel cash breakeven rates at below USD 49,000 per day excluding distributions to Preferred Unitholders for q3 2020. Reallocation of cash flow towards debt repayment and lower cost of financing. 9
Slide 11: 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 ◼ ~10.3 years(1) Average remaining charter duration ◼ ~7.9 years(1)(2) ◼ Equinor, Yamal (Total, CNPC, Silkr
Slide 12: Fleet Employment Overview
Fleet Employment Overview 2020 2029 2021 2022 2023 2024 2025 2026 2027 2028 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 Size Charterer Clean Energy 150,000 Gazprom (Singapore) Ob River (1) 150,000 Gazprom (Singapore) Amur River (1) 150,000
Slide 13: Broader Market Reach: Ice Bound and Conventional Trades
Broader Market Reach: Ice Bound and Conventional Trades Arc-4 LNG Carries Provide Flexibility to Charterers ◼ DLNG and Dynagas Holding (Sponsor) has an 82% market share of the LNG carriers with ice class 1A FS or equivalent notations (Arc-4 LNG Carriers), which is the minimum specification required
Slide 14: DLNG Utilization
Prior Quarters Operating Expenses and Utilization Rates DLNG Utilization Rates vs. Operating Expenses 15,000 Stable vessel operating expenses 100% combined with high utilization rates 14,000 underpin business efficacy and 13,000 90% profitability. DLNG Utilization Managed to successfully tackle USD
Slide 15: Summary
Summary Long term, high quality contracts with major energy companies Attractive Financial Profile Leader in ice class trades and experienced operator With a right-sized balance sheet, Partnership’s platform better positioned for growth Traditional amortizing term loan sets the Partnership on path t
Slide 16: Appendix
Appendix 15
Slide 17: 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 / (loss) per Common Unit Three Months Ended (In thousands of U.S. Dollars, except for units and per unit data) September 30, 2020 2019 Net Income $ 10,015 $ (4,740) Non-Cash expense from accelerated amortization of deferred lo
Slide 18: Reconciliation of Net income to Adjusted EBITDA
Reconciliation of Net income to Adjusted EBITDA 1 Three Months Ended (In thousands of U.S. Dollars) September 30, 2020 2019 Net income $ 10,015 $ (4,740) Net interest and finance costs 6,026 20,851 Depreciation 7,992 7,646 Loss on derivative financial instrument 5 - Amortization of deferred charges