Core Insights - The article discusses potential risks associated with Dynagas LNG Partners LP, particularly related to legal challenges involving the Rio Grande LNG terminal, which is a significant asset for the company [1]. Company Analysis - Dynagas LNG Partners LP was last analyzed in August 2024, focusing on the legal issues surrounding the Rio Grande LNG terminal [1]. - The company operates in the energy sector, specifically in the liquefied natural gas (LNG) market, which is influenced by various regulatory and operational challenges [1]. Industry Context - The LNG industry is subject to legal and regulatory scrutiny, which can impact the operational capabilities and financial performance of companies like Dynagas LNG Partners LP [1].

Company Overview - Dynagas LNG Partners LP is a master limited partnership that owns and operates LNG carriers under multi-year charters [2] - The current fleet consists of six LNG carriers with a total carrying capacity of approximately 914,000 cubic meters [2] Financial Announcement - The Board of Directors has declared a quarterly cash distribution of $0.049 per unit for the quarter ended March 31, 2025 [1] - This cash distribution is scheduled to be payable on or about May 23, 2025, to unit holders of record as of May 19, 2025 [1]

Natural Gas Consumption and Production - Global natural gas consumption is projected to increase by 2.8% year over year in 2024, primarily driven by higher power consumption [313]. - Natural gas consumption in the Asia-Pacific, Middle East, and Africa regions has increased nearly 1.3 times from 2014 to 2024 [314]. - Worldwide natural gas reserves are estimated at 188.1 trillion cubic meters, sufficient for nearly 46 years of supply at current consumption rates [313]. - Natural gas' share of total global primary energy consumption has increased from 18.1% in 1970 to 25.4% in 2024 [308]. - The level of carbon dioxide emissions from natural gas power generation is 50 to 60 percent lower than that from coal-fired power plants [312]. - U.S. domestic gas production has exceeded consumption for much of the year, potentially reducing future import rates [318]. - The geographical disparity between natural gas production and consumption has stimulated international trade in natural gas [316]. LNG Production and Trade - LNG production capacity is set to expand significantly, with 193.9 million tons currently under construction and 353.1 million tons planned [325]. - World trade in LNG has risen from 243.3 million tons in 2014 to an estimated 412.4 million tons in 2024 [329]. - The US LNG exports surged from 3.2 million tons in 2016 to 89.4 million tons in 2024, benefiting from new liquefaction terminals [335]. - Australia became the second largest LNG exporter in 2023, constituting 19.7% of global LNG exports, while the US maintained its position as the largest exporter with 21.5% [333]. - Qatar's North Field Expansion project aims to add 65 million tons per annum (mtpa) of liquefaction capacity, increasing total capacity to 142 mtpa by 2024 [334]. - Russian LNG exports increased by 8.7% in 2024, despite sanctions, supported by supply to Europe, with Belgium, France, and Spain as major markets [336]. - The number of LNG importing countries rose from 34 in 2010 to 45 by December 2024, indicating a growing global market [338]. - Japan, South Korea, and China accounted for 45% of total LNG imports as of the end of 2023, although their share has declined from 53% in 2021 [339]. - China's LNG imports grew from 0.7 million tons in 2006 to 76.8 million tons in 2024, becoming the largest LNG importer in 2023 [340]. - LNG imports in China surged by 41% year-on-year in 2018, driven by government policies to increase natural gas usage [341]. - The US LNG exports to Europe accounted for over 66% in 2023, a significant shift from previous years when Asia was the largest importer [335]. Environmental Regulations and Compliance - The EU's "Fit for 55" proposals include an emissions trading scheme for ships above 5,000 gross tonnage, which commenced in 2024 [382]. - The new FuelEU regulation requires compliance with greenhouse gas intensity limits for ships above 5,000 gross tonnage starting January 1, 2025 [382]. - The IMO implemented global emission control regulations effective January 1, 2020, allowing LNG as an alternative fuel with sulfur content below 0.1% [380]. - The IMO aims for net-zero emissions from international shipping by 2050, with enhanced targets for alternative zero and near-zero GHG fuels by 2030 [448]. - Compliance with revised standards may incur significant costs, including the installation of emission control systems [449]. - The BWM Convention requires ships to manage ballast water to prevent the introduction of invasive species, with compliance deadlines set for September 8, 2024 [462]. - The cost of compliance with ballast water treatment requirements may materially affect ocean carriers' operations [463]. Shipping and Fleet Dynamics - The global LNG fleet totaled 774 ships with a combined capacity of 116.7 million cbm as of February 28, 2025, with a CAGR of 7.2% in fleet capacity from 2014 to 2024 [397][399]. - The average age of the LNG fleet is 10.5 years, with older vessels facing challenges in employment due to EEXI and CII regulations, which may require speed reductions [404][407]. - Spot rates for LNG vessels peaked in 2022 due to increased European LNG imports, but have since normalized and reached a five-year low in 2024 due to high inventory levels and increased fleet growth [415][419]. - Seasonal demand for LNG typically increases in winter months, but the industry has become less dependent on seasonal transport compared to a decade ago [432]. - The introduction of Arc 7 LNG vessels will enable faster shipping routes to Asia, reducing voyage time from 30 days via the Suez Canal to 15 days through the Bering Strait [376]. Financial and Insurance Aspects - The company maintains pollution liability coverage insurance of $1.0 billion per incident for each vessel [478]. - The average deductible for hull and machinery insurance per vessel is $250,000, increasing to $500,000 when trading outside Institute Warrantee Limits [501]. - The company has loss of hire insurance that covers loss of income for up to 180 days if a vessel is out of service due to damage covered by hull and machinery insurance [502]. - Current protection and indemnity insurance coverage for pollution is $1 billion per vessel per incident [503]. - The International Group insures approximately 90% of the world's commercial tonnage and has a pooling agreement for claims in excess of $10 million up to approximately $8.9 billion [503]. Company Overview - Dynagas was formed on May 30, 2013, as a Marshall Islands limited partnership for owning, operating, and acquiring LNG carriers [504]. - Dynagas owns a 100% limited partner interest in Dynagas Operating LP, which owns a 100% interest in its Fleet [504]. - Dynagas does not own any real property [506].

Financial Performance Overview - For the three months ended December 31, 2024, the company reported a net income of $14.1 million, an increase of 34.3% compared to $10.5 million in the same period of 2023 [14] - Adjusted net income for the same period was $15.0 million, reflecting a 45.6% increase from $10.3 million in the prior year [15] - Voyage revenues for Q4 2024 were $41.7 million, up 12.7% from $37.0 million in Q4 2023, primarily due to increased revenues from the Arctic Aurora [16] Operational Metrics - The company achieved 100% fleet utilization during the three-month periods ended December 31, 2024, and 2023 [17] - Average daily hire gross of commissions was approximately $71,460 per day per vessel for Q4 2024, compared to $70,000 in Q4 2023 [17] - Vessel operating expenses decreased to $8.1 million in Q4 2024, with a daily rate per vessel of $14,732, down from $8.4 million and $15,172 in Q4 2023 [18] Cash Flow and Liquidity - The company generated net cash from operating activities of $32.5 million in Q4 2024, a 60.9% increase from $20.2 million in Q4 2023 [24] - As of December 31, 2024, total cash was reported at $68.2 million, with outstanding financial liabilities under sale and leaseback agreements totaling approximately $320.7 million [25] Debt and Financial Leverage - Following the refinancing of outstanding debt in June 2024, the company improved its financial leverage, with two vessels now debt-free and reduced annual debt amortization of $44 million [9] - There are no debt maturities until 2029, and contracted cash flows are above the cash breakeven point [9] Future Outlook - The company has a contract backlog estimated at approximately $1.0 billion, with an average remaining contract term of 5.9 years [9][26] - All six LNG carriers in the fleet are under long-term charters with international gas companies, ensuring stable revenue streams [9]

Company Overview - Dynagas LNG Partners LP is a master limited partnership that owns and operates LNG carriers employed on multi-year charters [3] - The current fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters [3] Financial Results Announcement - The company will release its financial results for the fourth quarter ended December 31, 2024, before market opens in New York on March 6, 2025 [1] - There will be no conference call to present the results, but the company emphasizes transparency through its press release [2] Investor Relations - Stakeholders are encouraged to reach out with specific questions regarding financial performance [2] - A presentation on the fourth quarter financial results will be available on the company's website under the Presentations section of its Investor Relations page [2]

Company Overview - Dynagas LNG Partners LP is a master limited partnership that owns and operates LNG carriers under multi-year charters [2] - The current fleet consists of six LNG carriers with a total carrying capacity of approximately 914,000 cubic meters [2] Financial Announcement - The Board of Directors has declared a quarterly cash distribution of $0.049 per unit for the quarter ended December 31, 2024 [1] - This cash distribution is scheduled to be payable on or about February 27, 2025, to all unit holders of record as of February 24, 2025 [1]

Core Points - Dynagas LNG Partners LP has declared a cash distribution of $0.677286319 per unit on its Series B Preferred Units for the period from November 22, 2024, to February 23, 2025 [1][2] - The distribution rate for this period is 10.375450%, calculated as the sum of the Credit Adjusted Three-Month CME Term SOFR of 4.782450% plus a spread of 5.593% [2] - The cash distribution is payable on February 24, 2025, to all Series B Preferred Unitholders of record as of February 14, 2025 [2][3] Distribution Details - Distributions on the Series B Preferred Units are payable quarterly in arrears on the 22nd day of February, May, August, and November, contingent upon declaration by the Board of Directors [3] - This marks the twenty-fifth sequential cash distribution on the Series B Preferred Units since they began trading on the NYSE [3] - As of the date of the press release, there are 2,200,000 Series B Preferred Units outstanding [4] Company Overview - Dynagas LNG Partners LP is a master limited partnership that owns and operates LNG carriers employed on multi-year charters [5] - The current fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters [5]

Core Viewpoint - The article emphasizes the importance of identifying and sustaining price trends in short-term investing, highlighting the potential of stocks like Dynagas LNG (DLNG) that show strong upward momentum backed by solid fundamentals [1][2]. Group 1: Stock Performance - Dynagas LNG (DLNG) has experienced a significant price increase of 34.6% over the past 12 weeks, indicating strong investor interest and potential upside [3]. - Currently, DLNG is trading at 96.5% of its 52-week high-low range, suggesting it may be on the verge of a breakout [4]. - The stock has also seen a price increase of 10.9% over the past four weeks, reinforcing the ongoing positive trend [9]. Group 2: Ratings and Recommendations - DLNG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [10]. - The average broker recommendation for DLNG is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [11]. Group 3: Investment Strategies - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like DLNG that are on an upward trend supported by strong fundamentals [2][8]. - There are over 45 Zacks Premium Screens available for investors to find stocks that align with their personal investing styles and strategies [6].

Fleet and Revenue - Dynagas LNG Partners LP's fleet consists of six LNG carriers with an average age of approximately 14.1 years, all currently employed or contracted on multi-year time charters[11]. - The estimated contracted revenue backlog of the fleet is approximately $1.03 billion, with an average remaining contract duration of about 6.4 years[11]. - Estimated contracted time charter revenues for the remaining period of 2024 are projected at $43.7 million, with contracted days of 618[14]. - For the year ending December 31, 2025, estimated contracted time charter revenues are projected at $153.9 million, with contracted days of 2,190[14]. - Voyage revenues increased to $75,670 thousand for the six months ended June 30, 2024, compared to $74,916 thousand for the same period in 2023, reflecting a growth of 1.0%[65]. - Adjusted voyage revenues rose by $11.5 million, or 17%, to $79.1 million for the six months ended June 30, 2024, from $67.6 million in the same period in 2023[33]. Financial Performance - For the six-month period ended June 30, 2024, the company reported voyage revenues of $75,670,000, a slight increase from $74,916,000 in the same period of 2023, representing a growth of 1.01%[20]. - Operating income for the same period was $38,158,000, compared to $37,642,000 in 2023, indicating an increase of 1.37%[20]. - Net income decreased to $22,458,000 from $24,030,000 year-over-year, reflecting a decline of 6.55%[20]. - Adjusted EBITDA for the six months ended June 30, 2024, was $57,564,000, up from $46,579,000 in 2023, representing a significant increase of 23.5%[22]. - The partnership's net income for the six months ended June 30, 2024, was $22,458,000, compared to $24,030,000 for the same period in 2023, reflecting a decrease of approximately 6.5%[133]. - Net income attributable to common unitholders for the six months ended June 30, 2024, was $15,951,000, down from $18,230,000 in 2023, representing a decline of about 12.5%[133]. Cash Flow and Distributions - Cash distributions for Series A Preferred Units were paid at $0.5625 per unit for three consecutive periods in 2024[7][8]. - Distributions declared and paid amounted to $6.5 million, compared to $5.8 million in the same period of 2023[70]. - The partnership reported cash and cash equivalents of $35.6 million as of June 30, 2024, down from $52.9 million a year earlier[70]. - Net cash from operating activities increased by $11.7 million, or 52.2%, to $34.1 million for the six months ended June 30, 2024, compared to $22.4 million in the same period in 2023[44]. - Net cash provided by operating activities increased to $34.1 million for the six-month period ended June 30, 2024, compared to $22.4 million for the same period in 2023, reflecting positive variations in working capital[56]. Debt and Financing - The company entered into lease financing agreements for four vessels totaling $345.9 million, which were used to fully repay a $675 million credit facility[9]. - The financing's applicable interest rate is based on three-month Term SOFR plus a margin, with options to repurchase vessels after the charter periods[9]. - Total long-term debt as of June 30, 2024, was $344,975, a decrease from $420,642 as of December 31, 2023, reflecting a reduction of approximately 18%[93]. - The Partnership fully repaid its $675 million Credit Facility on June 27, 2024, utilizing proceeds from Lease Financing and $63.67 million of its own funds[101]. - Interest and finance costs decreased by $1.1 million, or 5.6%, to $18.4 million for the six months ended June 30, 2024, from $19.5 million in the same period in 2023[40]. Assets and Liabilities - The company’s total current assets as of June 30, 2024, were $50,350,000, down from $105,257,000 at the end of 2023, a decrease of 52.2%[20]. - Total assets decreased from $908,913 thousand as of December 31, 2023, to $838,428 thousand as of June 30, 2024, representing a decline of approximately 7.7%[63]. - Total current liabilities significantly decreased from $458,761 thousand as of December 31, 2023, to $71,491 thousand as of June 30, 2024, a reduction of approximately 84.4%[63]. - The working capital deficit decreased by $332.4 million, or 94%, to $21.1 million as of June 30, 2024, compared to a deficit of $353.5 million as of December 31, 2023[45]. Operational Highlights - The fleet utilization rate improved to 100% in the first half of 2024, compared to 95.8% in the same period of 2023[22]. - The average age of vessels in operation increased to 13.9 years as of June 30, 2024, compared to 12.9 years at the end of 2023[22]. - The company derived 34% of its revenues from Yamal, which is affected by ongoing geopolitical tensions and sanctions against Russia[16]. - The partnership's time charter contracts have not been affected by sanctions related to the ongoing conflict in Ukraine[72]. Management and Governance - The company is focusing on debt repayment and balance sheet strength to reposition for future growth opportunities[5]. - The company may pursue additional vessel acquisitions and investment opportunities in the energy-related projects sector[5]. - The Master Management Agreement includes a daily management fee of $2,750 per vessel, which is subject to a 3% annual increase[84].

Financial Data and Key Metrics Changes - For Q2 2024, the company reported net income of $10.7 million and earnings per common unit of $0.20, with adjusted net income at $12.4 million or $0.25 per common unit [4][7] - Adjusted EBITDA for the quarter reached $28.6 million, slightly down from $29 million in Q1 2024 [8] - Revenue was $37.6 million, compared to $38 million in the previous quarter, with an average TCE of $67,300 per day, down from $68,100 [6][8] - Operating income decreased by 2.6% to $18.8 million from $19.3 million in Q1 2024 [7] Business Line Data and Key Metrics Changes - The company maintained 100% fleet utilization during Q2 2024, with all six LNG carriers operating on long-term charters [4][6] - The average cash break-even cost per vessel per day was $44,881, resulting in a surplus of $22,450 per day after deducting from average TCE [8] Market Data and Key Metrics Changes - The fleet's contracted backlog stands at approximately $1.04 billion, averaging about $173 million per vessel, with an average remaining charter period of approximately 6.4 years [14] - The global LNG carrier fleet is expanding rapidly, with new builds scheduled for delivery between now and 2028, potentially leading to a short-term oversupply [15][16] Company Strategy and Development Direction - The company's strategy focuses on securing long-term charters with prominent gas companies to ensure stable revenue streams [14] - The partnership has successfully reduced its outstanding debt from $675 million in September 2019 to $345 million today, improving its financial leverage [17][18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for LNG, driven by low emissions compared to traditional fossil fuels and rising global demand for electrification [16] - The company anticipates that the current order book will be observed as aging vessels are replaced and global demand for LNG transport increases [15] Other Important Information - The company concluded a new lease financing agreement for $344.9 million, which was used to repay a previous credit facility of $408.6 million ahead of maturity [5][10] - The company expects an increase in interest expenses when its interest rate swap matures, projecting a pro-forma cash rate of approximately $50,000 per day for Q4 2024 [11] Q&A Session Summary - The Q&A session concluded without any specific questions being recorded, and the CEO thanked participants for their time and attention [19][20]