Dynagas LNG Partners LP · NYSE:DLNG
Dynagas LNG Partners LP — Q1 2020 Earnings Presentation
15 slides from Dynagas LNG Partners LP's earnings presentation, Jun 5, 2020
Slide 1: Q1 2020 Financial Results Presentation
Q1 2020 Financial Results Presentation June 5, 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 $7.0 million and earnings per common unit of $0.11; Adjusted Net Income(1) and Adjusted EBITDA(1) of $7.1 million and $23.7 million respectively. 99% fleet utilization; Cash distribution of $0.5625 per unit on its Series A Preferred Units (NYSE: “
Slide 5: Financial Performance q1 2020
Financial Performance q1 2020 Revenues ($m) Adjusted EBITDA(1) ($m) Adjusted Net Income(1) ($m) $40.0 $30.0 $10.0 $34.3 $34.5 $31.4 $24.0 $23.7 $30.0 $21.7 $7.1 $20.0 $5.6 $20.0 $10.0 $10.0 $1.7 $0.0 $0.0 $0.0 q1 2019 q4 2019 q1 2020 q1 2019 q4 2019 q1 2020 q1 2019 q4 2019 q1 2020 Q1 2020 Q4 2019 Q1
Slide 6: Liquidity and Key Balance Sheet Data
Liquidity and Key Balance Sheet Data US$ million March 31, 2020 Debt amortizing at 1.5x the rate our ship’s book Cash(1) 70.0 depreciation, creating equity value and building balance sheet capacity. Debt Outstanding 651 Net Debt to Total Capitalization of 60% and Net Debt Partner’s Capital 318 to LT
Slide 7: Declining Interest Rates and Swap Significantly Reduce Interest Expense
Declining Interest Rates and Swap Significantly Reduce Interest Expense Loan Interest Rate Expense (Actual and Projected) Interest Rate Swap for full debt 14 8.00% outstanding commences June 29, 2020 at fixed LIBOR rate of 12 $675m debt 7.00% 0.41% (excluding margin) until Loan Interest expense (USD
Slide 8: Cash Flow Utilized To Organically Deleverage
Cash Flow Utilized To Organically Deleverage Significant portion of the Partnership’s cash flow utilized to reduce leverage Partnership expected to generate about $3m per quarter in free cash after debt service and payments to Series A and Series B Preferred unitholders DLNG Fleet1 incremental liqui
Slide 9: 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 ◼ ~9.8 years(1) Average remaining charter duration ◼ ~8.3 years(1)(2) ◼ Equinor, Yamal (Total, CNPC, Silkro
Slide 10: Long Term Contracts Coverage
Long Term 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
Slide 11: Market Share: Leader in Ice Class Trades
Market Share: Leader in Ice Class Trades ◼ Dynagas Group (DLNG and Sponsor) has an 82% market share of the LNG carriers with ice class 1A FS or equivalent notations ◼ The Company’s Arc-4 LNG/ice class 1A FS vessels may trade in conventional open water areas and in ice bound areas ◼ No material diffe
Slide 12: Dynagas LNG Partners LP Overview
Dynagas LNG Partners LP Overview $48 million annually DELEVERAGING LTM Net Debt / EBITDA expected to reduce from 6.3x in q1 2020 to 5.2x in q3 2021 Estimated FY 2020 Earnings per Common Unit: $0.63 VALUATION Forward 2020 P/E of 3.0x basis current common unit price of $1.85(1) Market Cap of $65m(1) <
Slide 13: Appendix
Appendix 12
Slide 14: 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) March 31, 2020 2019 Net Income $ 6,967 $ 1,892 Amortization of deferred revenue 52 (197) Amortization of deferred c
Slide 15: Reconciliation of Net income to Adjusted EBITDA
Reconciliation of Net income to Adjusted EBITDA 1 Three Months Ended (In thousands of U.S. Dollars) March 31, 2020 2019 Net income $ 6,967 $ 1,892 Net interest and finance costs, excluding amortization 8,760 12,505 Depreciation 7,906 7,480 Amortization of deferred revenue 52 (197) Amortization of de