ATHENS, Greece, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Dynagas LNG Partners LP (the "Partnership") (NYSE:DLNG), an owner and operator of liquefied natural gas ("LNG") carriers, today announced that its Board of Directors has declared a cash distribution of $0.71764025 per unit on its Series B Fixed to Floating Cumulative Redeemable Perpetual Preferred Units (the "Series B Preferred Units") (NYSE:DLNG) for the period from and including November 22, 2023 to and including February 21, 2024 (the "Distribution Period ...

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Financial Data and Key Metrics Changes - Net income for Q3 2023 decreased by $6 million or 81% to $1.4 million compared to $7.4 million in Q3 2022, primarily due to a decrease in unrealized gains on interest rate swaps and an increase in loan interest [2] - Adjusted net income for Q3 2023 was $3.1 million, down from $4.5 million in the same period last year, mainly due to increased interest and finance costs [19] - Adjusted EBITDA for Q3 2023 reached $20.4 million, indicating stability compared to previous quarters [28] - Operating cash flow generated in the quarter was $21 million [12] Business Line Data and Key Metrics Changes - Voyage revenues increased by 23.7% from $29.9 million to $37 million, attributed to deferred revenue amortization from a new time charter agreement with Equinor [11] - Operating expenses (OpEx) increased by $3.6 million, with $3 million of this increase related to two LNG carriers contracted on an OpEx pass-through basis [11] Market Data and Key Metrics Changes - The fleet consists of six LNG carriers with an average age of approximately 13.3 years, all under long-term charters with international gas companies [6][17] - The fleet's contracted backlog amounts to approximately $1.16 billion, equating to an average backlog of about $193 million per vessel [30] Company Strategy and Development Direction - The company focuses on securing long-term charters with gas companies, with no contractual vessel availability until 2028 [21] - The current liquefaction capacity is approximately 473 million tonnes per annum, with an additional 205 million tonnes per annum under construction, representing a total increase of about 40% [21] - The company has demonstrated a commitment to debt reduction, successfully repaying $242 million in debt since December 2019, lowering net leverage from 6.6 times to 4.1 times [31] Management Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on the long-term prospects of LNG shipping, emphasizing its role in reducing emissions and the demand for cleaner energy sources [14] - The company is in discussions for refinancing its current credit facility, expected to conclude in Q1 2024 [29] Other Important Information - The average remaining charter period for the fleet is approximately 7.2 years, positioning the partnership for stable income [30] - The company completed scheduled dry docks for three vessels, resulting in increased costs, but with a significant portion reimbursed under time charter contracts [18] Q&A Session Summary Question: What is the status of the debt refinancing? - Management indicated that there is demand for financing vessels and that they are working towards an optimal conclusion for refinancing [32][33] Question: Is the Yamal project a factor in the refinancing delay? - Management clarified that the Yamal project is not a problem and that they are focused on finding suitable financing options [34][38]

Q3 2023 Financial Results Presentation 8 December, 2023 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 forecast and any other statements concerning plans and objectives of management for future operations, cash flows, financial position and economic performance, or assumptions related the ...

FORM 6-K General Information [Report Details](index=1&type=section&id=REPORT_DETAILS) This Form 6-K for October 2023 contains management's discussion and interim unaudited financial statements for the six months ended June 30, 2023 - The report is a Form 6-K filed for the month of **October 2023**[2](index=2&type=chunk) - It contains management's discussion and analysis of financial condition and results of operations and interim unaudited consolidated financial statements for the **six months ended June 30, 2023**[3](index=3&type=chunk) - The information is incorporated by reference into the Partnership's registration statement on **Form F-3 (File No. 333-240014)**[4](index=4&type=chunk) [Forward-Looking Statements](index=2&type=section&id=FORWARD_LOOKING_STATEMENTS) The report contains forward-looking statements subject to risks and uncertainties including economic conditions, market fluctuations, and geopolitical events - Statements are predictive, depend on future events, and include words like 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' and 'estimates'[6](index=6&type=chunk) - Actual results may differ materially due to **significant uncertainties and contingencies** beyond control[6](index=6&type=chunk) - Key risk factors include strength of world economies, currency fluctuations, charter rates, vessel values, LNG shipping demand, and geopolitical conditions like the **Russia-Ukraine conflict**[7](index=7&type=chunk) - The Partnership undertakes **no obligation to update** forward-looking statements, except as required by law[9](index=9&type=chunk) [Signatures](index=5&type=section&id=SIGNATURES) The report was duly signed on behalf of the Partnership by its Chief Financial Officer on October 4, 2023 - The report was signed by **Michael Gregos, Chief Financial Officer** of Dynagas LNG Partners LP[13](index=13&type=chunk) - The signing date was **October 4, 2023**[13](index=13&type=chunk) Management's Discussion and Analysis of Financial Condition and Results of Operations [Business Overview and Development of the Partnership](index=6&type=section&id=BUSINESS_OVERVIEW_DEVELOPMENT) The Partnership operates a fleet of six LNG carriers, currently prioritizing debt repayment over growth due to elevated equity capital costs - The Partnership owns and operates a fleet of **six LNG carriers**, having grown from three vessels at its 2013 IPO[17](index=17&type=chunk) - Current strategy focuses on **debt repayment and balance sheet strength** due to the elevated cost of equity capital[18](index=18&type=chunk) - Future growth is contingent on accessing debt and equity capital on **acceptable terms**[18](index=18&type=chunk) - The Sponsor beneficially owns approximately **42.4% of the equity interests** and 100% of the General Partner[19](index=19&type=chunk) [Recent Events](index=8&type=section&id=RECENT_EVENTS) The Partnership made regular cash distributions on preferred units and a voluntary debt prepayment of $31.3 million in the first half of 2023 Preferred Unit Cash Distributions (H1 2023) | Unit Type | Distribution per Unit | Payment Dates | | :---------- | :-------------------- | :------------ | | Series A | $0.5625 | Feb 13, May 12, Aug 14 | | Series B | $0.546875 | Feb 22, May 22, Aug 22 | - A voluntary prepayment of **$31.3 million** was made on the $675 Million Credit Facility on March 27, 2023, which was applied to reduce the balloon payment[25](index=25&type=chunk)[27](index=27&type=chunk) - A loss on debt extinguishment of **$154 thousand** was recognized due to the write-off of unamortized debt discounts related to the prepayment[25](index=25&type=chunk) - The requirement for maintaining **$31.3 million** in the Cash Collateral Account was removed[27](index=27&type=chunk) [Our Fleet and our Charters](index=9&type=section&id=FLEET_CHARTERS) The fleet of six LNG carriers has an estimated contracted revenue backlog of $1.2 billion with an average remaining contract duration of 7.4 years - The fleet comprises six LNG carriers with an average age of approximately **13.2 years**, all on multi-year time charters[29](index=29&type=chunk) - Estimated contracted revenue backlog as of October 4, 2023, was approximately **$1.2 billion**, with an average remaining contract duration of approximately **7.4 years**[29](index=29&type=chunk) Estimated Contracted Charter Revenues and Days | Period | Contracted Time Charter Revenues (in millions of U.S. dollars) | Contracted Days | Available Days | Contracted/Available Days | | :--------------------------------- | :--------------------------------------------------- | :-------------- | :------------- | :------------------------ | | Oct 4, 2023 through Dec 31, 2023 | 38.3 | 528 | 528 | 100 % | | For the year ending Dec 31, 2024 | 158.2 | 2,196 | 2,196 | 100 % | | For the year ending Dec 31, 2025 | 153.9 | 2,190 | 2,190 | 100 % | - As of June 30, 2023, revenues were derived from three charterers: **SEFE (45%)**, **Yamal (39%)**, and **Equinor (16%)**[33](index=33&type=chunk) [Operating Results (Summary)](index=10&type=section&id=OPERATING_RESULTS_SUMMARY) Operating income rose 52.9% due to higher revenues and lower costs, but net income fell 31.4% due to reduced derivative gains and higher interest costs Selected Historical Financial Data (Six Months Ended June 30) | Metric (in thousands of U.S. dollars, except EPS) | 2023 | 2022 | Change (%) | | :------------------------------------------------ | :-------- | :-------- | :--------- | | Voyage revenues | $74,916 | $66,679 | 12.4% | | Operating income | $37,642 | $24,672 | 52.9% | | Interest and finance costs, net | $(18,402) | $(11,038) | 66.7% | | Gain on derivative instruments | $5,023 | $21,231 | -76.4% | | Loss on Debt extinguishment | $(154) | — | N/A | | Net Income | $24,030 | $34,999 | -31.4% | | Common unitholders' interest in Net Income | $18,230 | $29,189 | -37.6% | | Common Unit EPS (basic and diluted) | $0.50 | $0.79 | -36.7% | | Fleet utilization | 95.8% | 100% | -4.2% | | Time Charter Equivalent (TCE) rate | $67,586 | $62,161 | 8.7% | | Adjusted EBITDA | $46,579 | $45,878 | 1.5% | - Dry-docking and special survey costs decreased significantly to **$390 thousand** in H1 2023 from **$5,385 thousand** in H1 2022[36](index=36&type=chunk) [Principal Factors Affecting Our Results of Operations](index=15&type=section&id=PRINCIPAL_FACTORS_AFFECTING_RESULTS) Financial results are primarily influenced by fleet size, charter rates, utilization, operating expenses, and broader economic and geopolitical conditions - Key factors include ownership days (fleet size), charter rates (influenced by LNG market trends and contract duration), and fleet utilization (minimizing off-hire days)[41](index=41&type=chunk) - Daily operating expenses (crewing, insurance, maintenance, spares, taxes) and factors beyond control like market premiums and currency fluctuations also impact results[41](index=41&type=chunk) - Other factors include dry-docking schedules, relationships with charterers, access to capital, debt levels, and economic or political conditions affecting the LNG industry[41](index=41&type=chunk)[45](index=45&type=chunk) Detailed Results of Operations (Six months ended June 30, 2023 compared to the six months ended June 30, 2022) [Voyage Revenues](index=17&type=section&id=VOYAGE_REVENUES) Adjusted voyage revenues increased by 1.7% to $67.6 million in H1 2023, driven by more available days compared to the prior year - Voyage revenues (adjusted) increased by **$1.1 million (1.7%)** to $67.6 million in H1 2023 from $66.5 million in H1 2022[43](index=43&type=chunk) - The increase was mainly due to more available days in H1 2023, as H1 2022 included scheduled dry-docks for 'Clean Energy' and 'Amur River'[43](index=43&type=chunk) - This increase was partially offset by lower revenues from the opex component of daily hire for 'Yenisei River' and 'Lena River'[43](index=43&type=chunk) [Voyage Expenses](index=17&type=section&id=VOYAGE_EXPENSES) Voyage expenses rose by 7.1% to $1.5 million in H1 2023, primarily due to increased bunker expenses for one vessel during repairs - Voyage expenses increased by **$0.1 million (7.1%)** to $1.5 million in H1 2023 from $1.4 million in H1 2022[44](index=44&type=chunk) - The increase was primarily associated with increased bunker expenses for the 'Ob River' during unscheduled repairs[44](index=44&type=chunk) [Vessel Operating Expenses](index=17&type=section&id=VESSEL_OPERATING_EXPENSES) Vessel operating expenses increased to $15.4 million in H1 2023, driven by higher technical maintenance costs on certain vessels - Vessel operating expenses increased to **$15.4 million** in H1 2023 from $15.0 million in H1 2022, an increase of 2.7%[45](index=45&type=chunk) - The daily rate for vessel operating expenses was **$14,171 per LNG carrier** in H1 2023, up from $13,792 in H1 2022[45](index=45&type=chunk) - The increase was mainly attributable to increased technical maintenance on certain vessels[45](index=45&type=chunk) [General and Administrative Expenses](index=18&type=section&id=GENERAL_ADMINISTRATIVE_EXPENSES) General and administrative expenses decreased by 33.3% to $1.0 million in H1 2023, mainly due to lower D&O insurance and legal costs - General and administrative expenses decreased by **$0.5 million (33.3%)** to $1.0 million in H1 2023 from $1.5 million in H1 2022[46](index=46&type=chunk) - The decrease was mainly associated with reduced D&O insurance premium costs and lower legal expenses[46](index=46&type=chunk) [Management Fees](index=18&type=section&id=MANAGEMENT_FEES) Management fees increased by 3.2% to $3.2 million in H1 2023, consistent with the contractual annual daily rate adjustment - Management fees increased by **3.2%** to $3.2 million in H1 2023 from $3.1 million in H1 2022[47](index=47&type=chunk) - The daily fee was **$2,917 per vessel per day** in H1 2023, compared to $2,833 in H1 2022[47](index=47&type=chunk) - The increase is consistent with the annual daily rate increase prescribed in the management agreement[47](index=47&type=chunk) [Depreciation](index=18&type=section&id=DEPRECIATION) Depreciation expense increased slightly by 0.6% to $15.8 million in H1 2023 due to vessel improvements made after June 2022 - Depreciation expense increased by **$0.1 million (0.6%)** to $15.8 million in H1 2023 from $15.7 million in H1 2022[48](index=48&type=chunk) - The increase was due to vessel improvements carried out after June 30, 2022[48](index=48&type=chunk) [Interest and Finance Costs](index=18&type=section&id=INTEREST_FINANCE_COSTS) Interest and finance costs rose significantly by 77.3% to $19.5 million in H1 2023, driven by a higher weighted average interest rate - Interest and finance costs increased by **$8.5 million (77.3%)** to $19.5 million in H1 2023 from $11.0 million in H1 2022[49](index=49&type=chunk) - The increase was mainly due to a higher weighted average interest rate of **7.8%** in H1 2023, compared to 3.5% in H1 2022[49](index=49&type=chunk) - This was partially counterbalanced by a reduction in interest-bearing debt to **$476.7 million** in H1 2023 from $560.4 million in H1 2022[49](index=49&type=chunk) [Gain on Derivative Instruments](index=18&type=section&id=GAIN_DERIVATIVE_INSTRUMENTS) The gain on derivative instruments decreased to $5.0 million in H1 2023 from $21.2 million in the prior year - Gain on derivative financial instruments decreased to **$5.0 million** in H1 2023 from $21.2 million in H1 2022, a decrease of 76.4%[50](index=50&type=chunk) - The gain is from a floating-to-fixed interest rate swap (fixed 3-month SOFR rate of 0.41%) that did not qualify for hedge accounting[50](index=50&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=LIQUIDITY_CAPITAL_RESOURCES) The Partnership is evaluating refinancing alternatives for its $384.6 million balloon payment due in September 2024, with $82.9 million in available liquidity - Net cash provided by operating activities decreased by **$10.6 million (32.1%)** to $22.4 million in H1 2023 from $33.0 million in H1 2022[56](index=56&type=chunk) - Cash and cash equivalents increased by **$4.3 million (8.8%)** to $52.9 million as of June 30, 2023, from $48.6 million as of December 31, 2022[57](index=57&type=chunk) - Available liquidity was **$82.9 million** as of June 30, 2023, including $30.0 million borrowing capacity under an interest-free revolving credit facility with its Sponsor[57](index=57&type=chunk) - Aggregate outstanding indebtedness was **$444.6 million** as of June 30, 2023[58](index=58&type=chunk) - The Partnership had a working capital surplus of **$21.2 million** as of June 30, 2023, an increase of 300% from $3.9 million as of December 31, 2022[61](index=61&type=chunk) - The **$384.6 million balloon payment** of the $675 Million Credit Facility is due on September 18, 2024, and the Partnership is evaluating refinancing alternatives, believing it is probable[59](index=59&type=chunk) [Impact of Russia-Ukraine War](index=21&type=section&id=IMPACT_RUSSIA_UKRAINE_WAR) While 39% of H1 2023 revenues were from a charterer trading from Russian ports, current sanctions have not affected contracts or debt compliance - **39% of H1 2023 revenues** were earned from Yamal, which trades primarily from Russian LNG ports[62](index=62&type=chunk) - Current sanctions against Russia have not expressly prohibited LNG shipping in the main trading routes of the Partnership's vessels, and time charter contracts have not been affected[62](index=62&type=chunk) - Currently imposed sanctions do not affect compliance with terms imposed by the **$675 Million Credit Facility**[63](index=63&type=chunk) - Further developments in sanctions or escalation of the conflict could affect the Partnership's ability to employ **two of its six vessels** to current charterers[65](index=65&type=chunk) - The Partnership believes it will be able to enter into **replacement time charters** with acceptable terms if any charters are suspended, terminated, or canceled[66](index=66&type=chunk) [Estimated Maintenance and Replacement Capital Expenditures](index=23&type=section&id=ESTIMATED_MAINTENANCE_REPLACEMENT_CAPITAL_EXPENDITURES) The Partnership's annual estimated maintenance and replacement capital expenditures are $16.9 million for dry-docking and vessel replacement - Annual estimated maintenance and replacement capital expenditures are **$16.9 million**[71](index=71&type=chunk) - This includes **$4.2 million for dry-docking** and **$12.7 million for replacing vessels** at the end of their useful lives (including financing costs)[71](index=71&type=chunk) [Our Borrowing Activities](index=23&type=section&id=BORROWING_ACTIVITIES) As of June 30, 2023, the Partnership's outstanding borrowings are solely related to the $675 Million Credit Facility - Outstanding borrowings as of June 30, 2023, relate to the **$675 Million Credit Facility**[72](index=72&type=chunk) [Distributions](index=23&type=section&id=DISTRIBUTIONS) The Partnership paid regular cash distributions on its preferred units in H1 2023 but made no distributions to common unitholders Preferred Unit Cash Distributions (H1 2023) | Unit Type | Distribution per Unit | Payment Dates | | :---------- | :-------------------- | :------------ | | Series A | $0.5625 | Feb 13, May 12, Aug 14 | | Series B | $0.546875 | Feb 22, May 22, Aug 22 | - No quarterly cash distributions were made to **Common unitholders** for the six-month period ended June 30, 2023 and 2022[175](index=175&type=chunk) [Cash Flows (Summary)](index=24&type=section&id=CASH_FLOWS_SUMMARY) Net cash from operating activities decreased by 32.1% to $22.4 million in H1 2023, while net cash used in financing increased due to debt repayments Net Cash Flows (Six Months Ended June 30) | Cash Flow Activity (in thousands of U.S. Dollars) | 2023 | 2022 | Change (%) | | :------------------------------------------------ | :-------- | :-------- | :--------- | | Net cash provided by operating activities | $22,434 | $33,032 | -32.1% | | Net cash used in investing activities | $(86) | $(585) | -85.3% | | Net cash used in financing activities | $(49,318) | $(29,229) | 68.8% | | Cash and cash equivalents and restricted cash at end of period | $52,898 | $100,233 | -47.2% | - The decrease in net cash from operating activities was mainly attributable to **negative variations in working capital** and an increase in finance costs[78](index=78&type=chunk) - Net cash used in financing activities in H1 2023 included **$24 million in regular principal payments** and a **voluntary prepayment of $31.3 million**, plus $5.8 million in preferred unitholder distributions[80](index=80&type=chunk) Interim Condensed Consolidated Financial Statements [Unaudited Consolidated Condensed Balance Sheets](index=27&type=section&id=UNAUDITED_CONSOLIDATED_CONDENSED_BALANCE_SHEETS) Total assets decreased to $919.9 million as of June 30, 2023, due to lower vessel values, while total partners' equity increased to $442.2 million Consolidated Condensed Balance Sheet Data (in thousands of U.S. Dollars) | Metric | June 30, 2023 | December 31, 2022 | Change (%) | | :------------------------ | :------------ | :---------------- | :--------- | | Total current assets | $100,339 | $74,221 | 35.2% | | Vessels, net | $809,289 | $825,105 | -1.9% | | Total assets | $919,867 | $947,712 | -2.9% | | Total current liabilities | $79,106 | $70,270 | 12.6% | | Total long-term debt, gross | $444,642 | $499,912 | -11.0% | | Total partners' equity | $442,180 | $423,931 | 4.3% | - Restricted cash decreased from **$31,270 thousand** at December 31, 2022, to **$0** at June 30, 2023[86](index=86&type=chunk) [Unaudited Interim Condensed Consolidated Statements of Comprehensive Income](index=28&type=section&id=UNAUDITED_INTERIM_CONDENSED_CONSOLIDATED_STATEMENTS_OF_COMPREHENSIVE_INCOME) Net income decreased by 31.4% to $24.0 million for H1 2023, driven by lower derivative gains and higher interest costs despite increased operating income Consolidated Statements of Comprehensive Income (Six Months Ended June 30, in thousands of U.S. Dollars) | Metric | 2023 | 2022 | Change (%) | | :---------------------------------------- | :-------- | :-------- | :--------- | | Voyage revenues | $74,916 | $66,679 | 12.4% | | Operating income | $37,642 | $24,672 | 52.9% | | Interest and finance costs | $(19,549) | $(11,041) | 77.1% | | Gain on derivative financial instruments | $5,023 | $21,231 | -76.4% | | Loss on Debt extinguishment | $(154) | — | N/A | | Partnership's Net Income | $24,030 | $34,999 | -31.4% | | Common unitholders' interest in Net Income | $18,230 | $29,189 | -37.6% | | Common unit (basic and diluted) EPS | $0.50 | $0.79 | -36.7% | [Unaudited Interim Consolidated Statements of Partners' Equity](index=29&type=section&id=UNAUDITED_INTERIM_CONSOLIDATED_STATEMENTS_OF_PARTNERS_EQUITY) Total partners' equity increased to $442.2 million at June 30, 2023, driven by net income of $24.0 million, partially offset by preferred unit distributions Consolidated Statements of Partners' Equity (in thousands of U.S. Dollars) | Metric | December 31, 2022 | June 30, 2023 | | :---------------------------------------- | :---------------- | :------------ | | Total partners' equity (beginning of period) | $423,931 | $423,931 | | Net income | N/A | $24,030 | | Distributions declared and paid (preferred units) | N/A | $(5,781) | | Total partners' equity (end of period) | $423,931 | $442,180 | [Unaudited Interim Consolidated Statements of Cash Flows](index=30&type=section&id=UNAUDITED_INTERIM_CONSOLIDATED_STATEMENTS_OF_CASH_FLOWS) Net cash from operating activities decreased by 32.1% to $22.4 million in H1 2023, while net cash used in financing increased due to higher debt repayments Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands of U.S. Dollars) | Cash Flow Activity | 2023 | 2022 | Change (%) | | :---------------------------------------- | :-------- | :-------- | :--------- | | Net cash provided by Operating Activities | $22,434 | $33,032 | -32.1% | | Net cash used in Investing Activities | $(86) | $(585) | -85.3% | | Net cash used in Financing Activities | $(49,318) | $(29,229) | 68.8% | | Cash and cash equivalents and restricted cash at end of period | $52,898 | $100,233 | -47.2% | - Repayment of long-term debt increased to **$55.3 million** in H1 2023 from $24.0 million in H1 2022[93](index=93&type=chunk) - Receipts from derivative instruments increased to **$11.7 million** in H1 2023 from $0.6 million in H1 2022[93](index=93&type=chunk) Notes to the Unaudited Interim Condensed Consolidated Financial Statements [1. Basis of Presentation and General Information](index=31&type=section&id=BASIS_OF_PRESENTATION_GENERAL_INFORMATION) The Partnership faces revenue concentration risk from Russian-related trade and is actively evaluating refinancing options for its 2024 debt maturity - The Partnership was incorporated on May 30, 2013, under the laws of the Republic of the Marshall Islands[94](index=94&type=chunk) - In H1 2023, **39% of revenues** were from Yamal Trade Pte. Ltd., which trades primarily from Russian LNG ports[95](index=95&type=chunk) - Currently imposed sanctions due to the Russia-Ukraine conflict have not affected the Partnership's time charter contracts or compliance with its **$675 Million Credit Facility**[95](index=95&type=chunk)[96](index=96&type=chunk) - The Partnership is evaluating refinancing alternatives for the **$384.6 million balloon installment** of the $675 Million Credit Facility due September 18, 2024, and believes refinancing is probable[98](index=98&type=chunk)[99](index=99&type=chunk) - Maximum aggregate loss due to credit risk from charterers was **$8,574 thousand** as of June 30, 2023[106](index=106&type=chunk) [2. Significant Accounting Policies and Recent Accounting Pronouncements](index=36&type=section&id=SIGNIFICANT_ACCOUNTING_POLICIES_RECENT_ACCOUNTING_PRONOUNCEMENTS) No material changes were made to significant accounting policies in H1 2023, and the Partnership adopted ASU 2020-04 for the LIBOR transition - No material changes to significant accounting policies in the six-month period ended June 30, 2023[110](index=110&type=chunk) - The Partnership adopted ASU 2020-04, Reference Rate Reform (Topic 848), and elected an optional expedient for contract modifications related to the LIBOR transition[111](index=111&type=chunk) - The sunset date of Topic 848 was deferred from December 31, 2022, to **December 31, 2024**, with the issuance of ASU 2022-06[111](index=111&type=chunk) [3. Prepayments and other assets](index=36&type=section&id=PREPAYMENTS_OTHER_ASSETS) Prepayments and other assets included $3.6 million in insurance claims for loss of hire and machinery expenses related to a cargo pump failure - As of June 30, 2023, prepayments and other assets included **$3,621 thousand** relating to insurance claims for loss of hire and hull and machinery expenses[113](index=113&type=chunk) - These claims are due to an incident of cargo pump failure on one of the Partnership's vessels, for which recovery is expected[113](index=113&type=chunk) [4. Transactions with related parties](index=37&type=section&id=TRANSACTIONS_WITH_RELATED_PARTIES) The Partnership incurred $4.3 million in related party charges in H1 2023, while a $30 million credit facility with its Sponsor remains undrawn Related Party Charges (Six Months Ended June 30, in thousands of U.S. Dollars) | Item | 2023 | 2022 | | :---------------------------------------- | :------ | :------ | | Charter hire commissions | $811 | $826 | | Executive services fee | $291 | $296 | | Administrative services fee | $60 | $60 | | Management fees | $3,168 | $3,076 | - Daily management fees are $2,750 per vessel, adjusted upwards by **3% annually**, and amounted to $2.9 per vessel per day in H1 2023[115](index=115&type=chunk)[118](index=118&type=chunk) - A **$30 million interest-free revolving credit facility** with the Sponsor, extended until November 2023, remains undrawn as of June 30, 2023[123](index=123&type=chunk) [5. Vessels, net](index=39&type=section&id=VESSELS_NET) The net book value of the Partnership's six vessels decreased to $809.3 million as of June 30, 2023, due to depreciation Vessels, Net (in thousands of U.S. Dollars) | Metric | December 31, 2022 | June 30, 2023 | | :------------------------ | :---------------- | :------------ | | Vessel Cost | $1,171,630 | $1,171,630 | | Accumulated Depreciation | $(346,525) | $(362,341) | | Net Book Value | $825,105 | $809,289 | - Depreciation for H1 2023 was **$15,816 thousand**[126](index=126&type=chunk) - All vessels are first priority mortgaged as collateral to secure the **$675 Million Credit Facility**[126](index=126&type=chunk) [6. Long-Term Debt](index=40&type=section&id=LONG_TERM_DEBT) Total gross long-term debt decreased to $444.6 million, with the interest rate on the $675 Million Credit Facility transitioning from LIBOR to SOFR Long-Term Debt (in thousands of U.S. Dollars) | Metric | June 30, 2023 | December 31, 2022 | | :---------------------------------------- | :------------ | :---------------- | | Total debt (gross) | $444,642 | $499,912 | | Total debt, net of deferred finance costs | $442,779 | $497,033 | | Long-term debt, net of current portion and deferred financing fees | $396,332 | $450,781 | - The $675 Million Credit Facility is secured by first priority mortgages on the six LNG vessels and is repayable over five years with a **balloon payment in September 2024**[130](index=130&type=chunk) - Interest rate transitioned from U.S. LIBOR plus 3.00% margin to **U.S. SOFR plus 3.00% margin** effective June 28, 2023[130](index=130&type=chunk) - A voluntary prepayment of **$31.3 million** was made on March 27, 2023, reducing the balloon payment, and resulted in a **$154 thousand loss** on debt extinguishment[139](index=139&type=chunk)[141](index=141&type=chunk) Annual Principal Payments for $675 Million Credit Facility (as of June 30, 2023, in thousands of U.S. Dollars) | Year ending June 30, | Amount | | :------------------- | :----- | | 2024 | $48,000 | | 2025 | $396,642 | | **Total** | **$444,642** | - The weighted average interest rate on long-term debt was **7.8%** in H1 2023, compared to 3.5% in H1 2022[143](index=143&type=chunk) [7. Fair Value Measurements](index=43&type=section&id=FAIR_VALUE_MEASUREMENTS) The Partnership's interest rate swap is a Level 2 instrument with a fair value asset of $28.3 million as of June 30, 2023 - Cash and cash equivalents, trade accounts receivable, amounts due from/to related parties, and trade accounts payable are considered **Level 1** items[146](index=146&type=chunk) - The $675 Million Credit Facility is considered a **Level 2** item due to its variable interest rate (SOFR rates are observable)[146](index=146&type=chunk) - Derivative financial instruments (interest rate swaps) are **Level 2**, with a fair value asset of **$28,283 thousand** as of June 30, 2023[146](index=146&type=chunk)[149](index=149&type=chunk) - The fair value of the non-current portion of amounts due from related parties is **$810 thousand (Level 3)** as of June 30, 2023, compared to its carrying value of $1,350 thousand[146](index=146&type=chunk) [8. Commitments and Contingencies](index=44&type=section&id=COMMITMENTS_CONTINGENCIES) The Partnership has estimated future minimum contracted lease payments of $1.22 billion under its long-term time charter contracts Future Minimum Contracted Lease Payments (as of June 30, 2023, in thousands of U.S. Dollars) | Period/Year ending December 31, | Amount | | :------------------------------ | :----- | | 2023 (period) | 75,604 | | 2024 | 158,168 | | 2025 | 153,910 | | 2026 | 155,508 | | 2027 and thereafter | 679,122 | | **Total** | **$1,222,312** | - Estimated commission payable to the Manager over minimum contractual charter revenues is **$15,279 thousand**[159](index=159&type=chunk) - Estimated management fees from July 1, 2023, to December 31, 2030, are **$53,685 thousand**, adjusted for annual 3% inflation[159](index=159&type=chunk) [9. Partners' Equity](index=46&type=section&id=PARTNERS_EQUITY) The Partnership has outstanding Series A and Series B Preferred Units and is prohibited from paying common unit distributions while debt is outstanding - **3,000,000 Series A Preferred Units** are outstanding, with a 9.00% per annum distribution rate, redeemable at the Partnership's option on or after August 12, 2020[160](index=160&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - **2,200,000 Series B Preferred Units** are outstanding, with an 8.75% fixed rate until November 22, 2023, then a floating rate, redeemable at the Partnership's option on or after November 22, 2023[161](index=161&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - The Partnership is **prohibited from paying distributions** to its common unitholders while borrowings are outstanding under the $675 Million Credit Facility[169](index=169&type=chunk) Preferred Unit Distributions Declared and Paid (H1 2023) | Unit Type | Distribution per Unit | Period Covered | | :---------- | :-------------------- | :------------- | | Series A | $0.5625 | Nov 12, 2022 – Feb 11, 2023; Feb 12, 2023 – May 11, 2023 | | Series B | $0.546875 | Nov 22, 2022 – Feb 21, 2023; Feb 22, 2023 – May 21, 2023 | [10. Earnings per Unit](index=49&type=section&id=EARNINGS_PER_UNIT) Basic and diluted earnings per common unit decreased to $0.50 for H1 2023 from $0.79 in the prior year, reflecting lower net income Earnings per Common Unit (Six Months Ended June 30) | Metric | 2023 | 2022 | | :---------------------------------------- | :------------ | :------------ | | Partnership's Net income | $24,030 | $34,999 | | Net income attributable to common unitholders | $18,230 | $29,189 | | Weighted average number of common units outstanding | 36,802,247 | 36,802,247 | | Earnings per common unit, basic and diluted | $0.50 | $0.79 | - The Partnership had **no dilutive instruments** in the six-month periods ended June 30, 2023 and 2022[184](index=184&type=chunk) [11. Interest and Finance Costs](index=50&type=section&id=INTEREST_FINANCE_COSTS_NOTE) Total interest and finance costs increased to $19.5 million in H1 2023, driven primarily by a significant rise in interest expense Interest and Finance Costs (Six Months Ended June 30, in thousands of U.S. Dollars) | Item | 2023 | 2022 | | :---------------------------------- | :------ | :------ | | Interest expense | $18,610 | $9,764 | | Amortization of deferred financing fees | $862 | $1,047 | | Other | $77 | $230 | | **Total** | **$19,549** | **$11,041** | [12. Derivative financial instruments](index=50&type=section&id=DERIVATIVE_FINANCIAL_INSTRUMENTS) The Partnership's interest rate swap, which did not qualify for hedge accounting, had a fair value asset of $28.3 million as of June 30, 2023 - The Partnership uses a floating-to-fixed interest rate swap to manage exposure to LIBOR/SOFR variability, with a fixed 3-month SOFR rate of **0.41%**[187](index=187&type=chunk) - The swap did not qualify for hedge accounting, and changes in its fair value are reflected in earnings[187](index=187&type=chunk) - The fair value of the interest rate swap was an asset of **$28,283 thousand** as of June 30, 2023, down from $34,877 thousand at December 31, 2022[188](index=188&type=chunk)[192](index=192&type=chunk) - A gain on derivative financial instruments of **$5,023 thousand** was recognized in H1 2023, compared to $21,231 thousand in H1 2022[189](index=189&type=chunk)[193](index=193&type=chunk) - The realized gain on non-hedging interest rate swaps amounted to **$11.7 million** in H1 2023, compared to $0.6 million in H1 2022[190](index=190&type=chunk) [13. Subsequent Events](index=51&type=section&id=SUBSEQUENT_EVENTS) The Partnership declared and paid cash distributions on its Series A and Series B Preferred Units in August 2023 - On July 21, 2023, a cash distribution of **$0.5625 per unit** on Series A Preferred Units was declared and paid on August 14, 2023[195](index=195&type=chunk) - On July 31, 2023, a cash distribution of **$0.546875 per unit** on Series B Preferred Units was declared and paid on August 22, 2023[195](index=195&type=chunk)

Dynagas LNG Partners LP (NYSE:DLNG) Q2 2023 Earnings Conference Call September 15, 2023 10:00 AM ET Company Participants Tony Lauritzen - Chief Executive Officer Michael Gregos - Chief Financial Officer Conference Call Participants Benjamin Nolan - Stifel Operator Thank you for standing by, ladies and gentlemen, and welcome to Dynagas LNG Partners Conference Call on the Second Quarter of 2023 Financial Results. We have with us today, Mr. Tony Lauritzen, Chief Executive Officer; and Mr. Michael Gregos, Chief ...

Company Participants Michael Gregos - Chief Financial Officer Operator Please be reminded that the company announced its results with a press release that has been publicly distributed. At this time, I would like to remind everyone that in today's presentation and conference call, Dynagas LNG Partners will be making forward-looking statements. These statements are within the meaning of the federal securities laws. This conference call and slide presentation of the webcast contains certain forwardlooking sta ...

PART I [Item 3. Key Information](index=9&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section details significant risks associated with the Partnership's operations, financial condition, industry, and securities [Risk Factors](index=9&type=section&id=D.%20RISK%20FACTORS) This subsection comprehensively outlines operational, industry, securities, indebtedness, conflict of interest, and tax-related risks faced by the Partnership - The Partnership's fleet of **only six LNG carriers** makes its business highly susceptible to operational limitations or off-hire time[39](index=39&type=chunk) - A significant portion of revenue is derived from a limited number of charterers, with **three charterers accounting for 100% of total revenues in 2022** (SEFE 43%, Yamal 41%, Equinor 16%)[41](index=41&type=chunk) - The Partnership's strategy prioritizes **debt repayment and balance sheet strengthening**, potentially slowing growth compared to peers focused on reinvestment[40](index=40&type=chunk) - The Partnership is **restricted from paying distributions to common unitholders** while borrowings are outstanding under its $675 Million Credit Facility[38](index=38&type=chunk)[40](index=40&type=chunk) [Item 4. Information on the Partnership](index=58&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20PARTNERSHIP) This section provides a detailed overview of Dynagas LNG Partners LP, covering its history, business strategy, fleet, chartering, industry analysis, and organizational structure [History and Development of the Partnership](index=58&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20PARTNERSHIP) The Partnership was formed in May 2013, completed its IPO in November 2013, expanded its fleet to six LNG carriers by 2015, and maintains an active ATM offering program for its NYSE-listed units - The Partnership was organized on **May 30, 2013**, and completed its IPO on **November 18, 2013**, initially with three LNG carriers[264](index=264&type=chunk) - The Partnership has an active **$30.0 million ATM offering program** for common units, having sold **1,189,667 units for $3.3 million** in net proceeds as of the report date[265](index=265&type=chunk) [Business Overview](index=58&type=section&id=B.%20BUSINESS%20OVERVIEW) The Partnership owns and operates six LNG carriers under long-term charters, focusing on debt repayment and balance sheet strengthening, with an average fleet age of 12.7 years and 6.3 years remaining charter term Fleet Details and Charter Information (as of April 21, 2023) | Vessel Name | Year Built | Cargo Capacity (cbm) | Ice Class | Propulsion | Charterer | Earliest Charter Expiration | Latest Charter Expiration | Latest Expiration (incl. options) | | :------------ | :--------- | :------------------- | :-------- | :--------- | :-------- | :-------------------------- | :------------------------ | :-------------------------------- | | Clean Energy | 2007 | 149,700 | No | Steam | SEFE | March 2026 | April 2026 | n/a | | Ob River | 2007 | 149,700 | Yes | Steam | SEFE | March 2028 | May 2028 | n/a | | Amur River | 2008 | 149,700 | Yes | Steam | SEFE | June 2028 | July 2028 | n/a | | Arctic Aurora | 2013 | 155,000 | Yes | TFDE | Equinor | August 2026 | September 2026 | n/a | | Yenisei River | 2013 | 155,000 | Yes | TFDE | Yamal | Q4 2033 | Q2 2034 | Q2 2049 | | Lena River | 2013 | 155,000 | Yes | TFDE | Yamal | Q2 2034 | Q3 2034 | Q4 2049 | - The estimated contracted revenue backlog is approximately **$1.0 billion**, with an average remaining contract duration of about **6.3 years**, excluding extension options[272](index=272&type=chunk)[284](index=284&type=chunk) - The Partnership's business strategy focuses on **capital allocation towards debt repayment and balance sheet strengthening** for future growth opportunities[269](index=269&type=chunk) [Organizational Structure](index=101&type=section&id=C.%20ORGANIZATIONAL%20STRUCTURE) The Partnership, a Marshall Islands limited partnership, operates as a holding company, owning its six LNG carriers through wholly-owned subsidiaries under Dynagas Operating LP - The Partnership is a holding company owning vessels through wholly-owned subsidiaries in Marshall Islands and Malta, held under **Dynagas Operating LP**[455](index=455&type=chunk) [Item 5. Operating and Financial Review and Prospects](index=101&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section provides management's discussion and analysis of the Partnership's financial condition and operating results, covering revenues, expenses, liquidity, capital resources, and critical accounting policies [Operating Results](index=102&type=section&id=A.%20OPERATING%20RESULTS) In 2022, voyage revenues decreased to **$131.7 million** due to dry-dockings, while net income slightly increased to **$54.0 million**, primarily driven by a derivative gain offsetting higher costs, with a stable TCE rate of **$61,660 per day** Selected Financial Highlights (Year Ended Dec 31) | Metric | 2022 | 2021 | | :----- | :--- | :--- | | Voyage revenues | $131.7M | $137.7M | | Operating income | $45.3M | $64.6M | | Net Income | $54.0M | $53.3M | | Earnings Per Common Unit | $1.15 | $1.14 | | Adjusted EBITDA | $89.5M | $97.0M | | TCE Rate | $61,660 | $61,684 | - Voyage revenues decreased by **4.4% in 2022** primarily due to fewer revenue-earning days from scheduled dry-dockings of three vessels[521](index=521&type=chunk) - Interest and finance costs increased by **30.4% to $27.9 million in 2022**, driven by a higher weighted average interest rate despite reduced total debt[527](index=527&type=chunk) - A significant **gain of $33.7 million** was recognized on a derivative financial instrument in 2022, positively impacting net income compared to a **$10.1 million gain in 2021**[528](index=528&type=chunk) [Liquidity and Capital Resources](index=116&type=section&id=B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The Partnership's liquidity relies on operating cash flows and credit facilities, with **$499.9 million** outstanding debt under its **$675 million credit facility** maturing in September 2024, which restricts common unit distributions - As of December 31, 2022, **$499.9 million of debt** was outstanding under the **$675 million Credit Facility**, maturing in September 2024 with a **$385 million balloon payment**[224](index=224&type=chunk)[539](index=539&type=chunk) - The **$675 million Credit Facility** includes restrictive covenants, prohibiting common unitholder distributions and requiring the Sponsor to maintain at least **30% common unit ownership**[541](index=541&type=chunk)[542](index=542&type=chunk) Cash Flow Summary (Year Ended Dec 31) | (In thousands of Dollars) | 2022 | 2021 | 2020 | | :------------------------ | :--- | :--- | :--- | | Net cash provided by operating activities | $57,324 | $79,591 | $68,603 | | Net cash used in investing activities | ($3,635) | — | — | | Net cash used in financing activities | ($70,836) | ($57,555) | ($59,830) | - The Partnership has an **undrawn $30 million interest-free revolving credit facility** with its Sponsor, extended until November 14, 2023[548](index=548&type=chunk) [Item 6. Directors, Senior Management and Employees](index=122&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section outlines the Board of Directors and senior management composition, executive compensation structure, board committee practices, and clarifies that the Partnership does not directly employ staff - The Board of Directors comprises **five members**: two appointed by the General Partner and three elected by common unitholders[578](index=578&type=chunk)[590](index=590&type=chunk) - The Partnership does not directly employ executive officers; their services are provided by **Dynagas Ltd. for an annual fee of €538,000** under an Executive Services Agreement[587](index=587&type=chunk)[598](index=598&type=chunk) - The Board maintains three committees: **Audit, Conflicts, and Compensation**, each composed of independent directors[595](index=595&type=chunk)[596](index=596&type=chunk) [Item 7. Major Unitholders and Related Party Transactions](index=126&type=section&id=ITEM%207.%20MAJOR%20UNITHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section identifies major unitholders and details significant related party transactions, including the Omnibus Agreement, vessel management agreements, and a **$30 million revolving credit facility** from the Sponsor Major Unitholders | Name of Beneficial Owner | Number of Units | Percentage | | :----------------------- | :-------------- | :--------- | | Dynagas Holding Ltd. | 15,595,000 | 42.4% | | Cobas Asset Management SGIIC SA | 4,833,397 | 13.1% | | Dell Loy Hansen | 3,563,020 | 9.7% | - The Partnership has an **Omnibus Agreement** with its Sponsor, including non-competition clauses and rights of first offer on certain LNG carriers[603](index=603&type=chunk)[604](index=604&type=chunk) - The fleet is managed by **Dynagas Ltd.** under a Master Agreement, with **technical management fees of $2,917 per day per vessel** and **commercial management fees of 1.25% of gross charter hire in 2022**[618](index=618&type=chunk)[619](index=619&type=chunk)[620](index=620&type=chunk) [Item 8. Financial Information](index=135&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section references consolidated financial statements, discusses legal proceedings including a settled 2019 class action, and outlines the cash distribution policy, noting common unitholder distributions are suspended due to debt covenants - A **2019 class action lawsuit** alleging false and misleading statements was settled, fully covered by insurance, with no admission of wrongdoing by the Partnership[646](index=646&type=chunk)[649](index=649&type=chunk) - The Partnership's cash distribution policy requires quarterly distribution of available cash, but the **$675 million Credit Facility currently restricts common unitholder distributions**[650](index=650&type=chunk)[651](index=651&type=chunk) - The subordination period for subordinated units expired on **January 23, 2017**, resulting in their conversion to common units[655](index=655&type=chunk) [Item 9. The Offer and Listing.](index=139&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING.) This section details the trading of the Partnership's common units, Series A Preferred Units, and Series B Preferred Units, all listed on the New York Stock Exchange Listing Details | Security | Trading Symbol | Exchange | | :------- | :------------- | :------- | | Common units | DLNG | NYSE | | Series A Preferred Units | DLNG PR A | NYSE | | Series B Preferred Units | DLNG PR B | NYSE | [Item 10. Additional Information](index=139&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section provides supplementary information, including material contracts, exchange controls, and detailed U.S. federal and Marshall Islands tax considerations for the Partnership and its unitholders - The Partnership has elected to be treated as a **corporation for U.S. federal income tax purposes**[675](index=675&type=chunk) - The Partnership believes it qualifies for the **Section 883 exemption** from U.S. federal income tax on its U.S.-source shipping income for 2022 by satisfying the "Publicly-Traded Test"[680](index=680&type=chunk)[687](index=687&type=chunk) - Based on current operations, the Partnership believes it was **not a Passive Foreign Investment Company (PFIC)** for 2022 and does not expect to become one[701](index=701&type=chunk) - Under Marshall Islands law, the Partnership and its subsidiaries are **not subject to tax on international shipping income**, and non-resident unitholders are exempt from Marshall Islands tax on distributions or capital gains[716](index=716&type=chunk) [Item 11. Quantitative and Qualitative Disclosures About Market Risk](index=148&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the Partnership's exposure to market risks, including interest rate, foreign currency, and credit risk, noting interest rate swap usage and significant revenue concentration among three charterers - The Partnership manages interest rate risk with a floating-to-fixed interest rate swap, fixing the **3-month LIBOR at 0.41%** on notional values matching the **$675 million Credit Facility's** debt amortization[726](index=726&type=chunk) - In 2022, approximately **32% of operating expenses** and **44% of general and administrative expenses** were non-U.S. dollar denominated, exposing the Partnership to foreign currency exchange risk[729](index=729&type=chunk) Revenue Concentration by Charterer (2022) | Charterer | 2022 Revenue % | | :-------- | :------------- | | SEFE (formerly Gazprom) | 43% | | Yamal | 41% | | Equinor | 16% | | **Total** | **100%** | PART II [Item 15. Controls and Procedures](index=151&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) This section confirms management's assessment that disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with no external attestation required as a non-accelerated filer - Management concluded that the Partnership's **disclosure controls and procedures were effective** as of December 31, 2022[739](index=739&type=chunk) - Based on the COSO framework, management concluded that **internal controls over financial reporting were effective** as of December 31, 2022[745](index=745&type=chunk) - The annual report does not include an attestation report on internal controls from the public accounting firm, as the Partnership is exempt as a **non-accelerated filer**[746](index=746&type=chunk) [Item 16. Corporate Governance and Other Matters](index=152&type=section&id=ITEM%2016.%20CORPORATE%20GOVERNANCE%20AND%20OTHER%20MATTERS) This section covers corporate governance, identifying the audit committee financial expert, confirming the Code of Business Ethics, detailing principal accountant fees, and noting exemptions from certain NYSE standards as a foreign private issuer - The Board of Directors has determined that **Alexios Rodopoulos** qualifies as an audit committee financial expert[748](index=748&type=chunk) - The Partnership has adopted a **Corporate Code of Business Ethics and Conduct** applicable to all employees, officers, and directors[749](index=749&type=chunk) Principal Accountant Fees (Ernst & Young) | Fee Type | 2022 | 2021 | | :------- | :--- | :--- | | Audit Fees | €136,500 | €147,000 | | Tax Fees | $8,400 | $8,000 | - As a foreign private issuer, the Partnership is **exempt from certain NYSE corporate governance rules**, including requirements for a nominating committee and unitholder approval for all equity-compensation plans[760](index=760&type=chunk)[767](index=767&type=chunk) PART III [Item 18. Financial Statements](index=154&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section presents the Partnership's audited consolidated financial statements for 2020-2022, prepared under U.S. GAAP, including balance sheets, income statements, equity, and cash flows, along with accompanying notes - This item includes the **audited consolidated financial statements** for the years ended December 31, 2022, 2021, and 2020, along with the independent registered public accounting firm's report[766](index=766&type=chunk) [Item 19. Exhibits](index=156&type=section&id=ITEM%2019.%20EXHIBITS) This section lists all exhibits filed with the annual report, including organizational documents, material contracts like the Master Management Agreement and **$675 million Credit Facility**, and required certifications - A comprehensive list of exhibits is provided, including **organizational documents, material contracts, and required certifications**[769](index=769&type=chunk) Consolidated Financial Statements [Report of Independent Registered Public Accounting Firm](index=161&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young issued an unqualified opinion on the consolidated financial statements for the three years ended December 31, 2022, identifying vessel impairment assessment as a critical audit matter due to subjective future charter rate estimations - The independent auditor, **Ernst & Young**, issued an **unqualified opinion** on the consolidated financial statements for the three years ended December 31, 2022[779](index=779&type=chunk) - The audit identified **vessel impairment assessment** as a Critical Audit Matter, citing complexity and subjective judgment in forecasting future charter rates for non-contracted revenue days[783](index=783&type=chunk)[784](index=784&type=chunk) [Consolidated Financial Statements Tables](index=163&type=section&id=Consolidated%20Financial%20Statements%20Tables) The consolidated financial statements show **total assets of $947.7 million** and **total partners' equity of $423.9 million** as of December 31, 2022, with **voyage revenues of $131.7 million** and **net income of $54.0 million** for the year Consolidated Balance Sheet Highlights (As of Dec 31) | (In thousands of U.S. Dollars) | 2022 | 2021 | | :----------------------------- | :--- | :--- | | Cash and cash equivalents | $48,598 | $47,015 | | Vessels, net | $825,105 | $853,190 | | **Total assets** | **$947,712** | **$965,481** | | Current portion of long-term debt, net | $46,252 | $45,947 | | Long-term debt, net | $450,781 | $516,019 | | **Total partners' equity** | **$423,931** | **$381,484** | Consolidated Statement of Income Highlights (Year Ended Dec 31) | (In thousands of U.S. Dollars) | 2022 | 2021 | 2020 | | :----------------------------- | :--- | :--- | :--- | | Voyage revenues | $131,657 | $137,746 | $137,165 | | Operating income | $45,337 | $64,611 | $64,264 | | Gain/ (Loss) on derivative financial instrument | $33,655 | $10,104 | ($3,148) | | **Net Income** | **$54,010** | **$53,260** | **$34,052** | [Notes to the Consolidated Financial Statements](index=168&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies, related party transactions, the **$675 million Credit Facility**, derivative fair value measurements, future minimum lease payments, and the impact of the Russia-Ukraine conflict - In 2022, **41% of revenues were from Yamal**, primarily trading from Russian ports; while current sanctions haven't directly impacted contracts, further sanctions could adversely affect results[800](index=800&type=chunk) - The Partnership expenses dry-docking and special survey costs as incurred, with **$12.8 million expensed in 2022**[792](index=792&type=chunk)[827](index=827&type=chunk) - On October 12, 2022, the Partnership made a **voluntary prepayment of $18.73 million** on its **$675 million Credit Facility** to retire ATB's participation, resulting in a **$2.1 million gain on debt extinguishment**[876](index=876&type=chunk)[877](index=877&type=chunk) - Future minimum contracted lease payments under non-cancelable time charters total **$888.8 million** as of December 31, 2022[891](index=891&type=chunk)[892](index=892&type=chunk)

[FORM 6-K Filing Information](index=1&type=section&id=FORM%206-K%20Filing%20Information) [Report Details](index=1&type=section&id=Report%20Details) This section details the filing of Form 6-K by Dynagas LNG Partners LP for the month of March 2023, indicating it files annual reports under Form 20-F - Registrant: **Dynagas LNG Partners LP** (NYSE: DLNG)[2](index=2&type=chunk) - Filing Type: **Form 6-K** for **March 2023**, indicating annual reports under **Form 20-F**[2](index=2&type=chunk)[3](index=3&type=chunk) [Information Contained in this Form 6-K Report](index=2&type=section&id=Information%20Contained%20in%20this%20Form%206-K%20Report) The Form 6-K includes a press release from Dynagas LNG Partners LP dated March 17, 2023, reporting results for the three months and year ended December 31, 2022 - Attached as Exhibit 99.1 is a press release dated **March 17, 2023**, reporting results for the three months and year ended December 31, 2022[4](index=4&type=chunk) [Signatures](index=3&type=section&id=Signatures) The report was duly signed on March 20, 2023, by Tony Lauritzen, Chief Executive Officer of Dynagas LNG Partners LP - Signed by Tony Lauritzen, Chief Executive Officer, on **March 20, 2023**[7](index=7&type=chunk) [Press Release: Q4 and Full Year 2022 Results](index=4&type=section&id=Press%20Release%3A%20Q4%20and%20Full%20Year%202022%20Results) [Executive Summary & Highlights](index=4&type=section&id=Executive%20Summary%20%26%20Highlights) Dynagas LNG Partners LP reported its financial and operational highlights for the full year and fourth quarter ended December 31, 2022, including net income, adjusted net income, adjusted EBITDA, and 100% fleet utilization. Key subsequent events include preferred unit distributions and a new time charter agreement for the Arctic Aurora Key Financial Metrics (Q4 and Full Year 2022 vs 2021) | Metric | Year Ended Dec 31, 2022 | Q4 Ended Dec 31, 2022 | | :-------------------------- | :---------------------- | :-------------------- | | Net Income | $54.0 million | $11.6 million | | Earnings per common unit | $1.15 | $0.24 | | Adjusted Net Income | $30.6 million | $7.0 million | | Adjusted Earnings per common unit | $0.52 | $0.11 | | Adjusted EBITDA | $89.5 million | $23.6 million | | Fleet Utilization | 100% | 100% | - Declared and paid cash distributions on Series A and Series B Preferred Units for periods ending November 2022 and February 2023[11](index=11&type=chunk)[12](index=12&type=chunk) - Made a voluntary prepayment of **$18.73 million** on the **$675 Million Credit Facility**, applied to the entire participation of Amsterdam Trade Bank (ATB) following its designation as a Specially Designated National[11](index=11&type=chunk) - Entered into a new approximately **three-year** time charter party agreement with Equinor ASA for the ice-class LNG carrier Arctic Aurora, effective September 2023, in direct continuation of the current charter[11](index=11&type=chunk) [CEO Commentary & Strategic Outlook](index=5&type=section&id=CEO%20Commentary%20%26%20Strategic%20Outlook) The CEO highlighted consistent 100% fleet utilization, a strong contracted revenue backlog of $1.0 billion with an average remaining term of 6.4 years, and successful debt reduction efforts. Despite gas price retractions, the outlook for LNG shipping remains positive due to robust term shipping rates and long-term demand - Achieved **100% fleet utilization** for the eleventh consecutive quarter, demonstrating strong fleet performance[14](index=14&type=chunk) - All **six LNG carriers** are operating under long-term charters with international gas companies, with an average remaining contract term of **6.4 years**[15](index=15&type=chunk) - Estimated contracted revenue backlog as of **March 17, 2023**, was **$1.0 billion**, with the earliest re-delivery date for any vessel in **Q1 2026**[15](index=15&type=chunk) - Successfully repaid **$175 million** in debt since September 2019 until December 2022, reducing net leverage from **6.6x** to **4.7x** and improving book equity value by **35%** to **$423.9 million**[19](index=19&type=chunk)[20](index=20&type=chunk) - The outlook for LNG shipping and the Partnership remains positive, driven by robust term LNG shipping rates and long-term demand for LNG shipping, despite a retraction in gas prices[21](index=21&type=chunk) [Russian Sanctions Developments](index=6&type=section&id=Russian%20Sanctions%20Developments) The Partnership reported that current U.S. and E.U. sanctions against Russia do not materially affect its business or operations, and counterparties are complying. However, the full impact of the conflict and potential future sanctions remains uncertain and could significantly affect the business - Current U.S. and E.U. sanctions regimes do not materially affect the Partnership's business, operations, or financial condition[23](index=23&type=chunk) - The Partnership's counterparties are currently performing their obligations under time charters in compliance with applicable U.S. and E.U. rules[23](index=23&type=chunk) - The full impact of the commercial and economic consequences of the Russian conflict with Ukraine is uncertain, and further developments in sanctions or escalation could significantly impact the business[22](index=22&type=chunk) [Financial Performance Analysis](index=7&type=section&id=Financial%20Performance%20Analysis) For Q4 2022, Net Income decreased by 31.4% to $11.6 million, primarily due to a decrease in unrealized gain on interest rate swaps, partially offset by a gain on debt extinguishment. Adjusted Net Income also decreased by 38.6% to $7.0 million, mainly due to increased interest and finance costs. Voyage revenues saw a slight decrease, while vessel operating expenses improved Key Financial Metrics (Q4 and Full Year 2022 vs 2021) | Metric (in thousands) | Q4 2022 | Q4 2021 | YoY Change (Q4) | FY 2022 | FY 2021 | YoY Change (FY) | | :-------------------- | :------ | :------ | :-------------- | :------ | :------ | :-------------- | | Voyage revenues | $35,064 | $35,678 | -1.7% | $131,657 | $137,746 | -4.4% | | Net Income | $11,618 | $16,941 | -31.4% | $54,010 | $53,260 | +1.4% | | Adjusted Net Income | $6,984 | $11,386 | -38.6% | $30,615 | $43,879 | -30.2% | | Operating income | $16,244 | $16,730 | -2.9% | $45,337 | $64,611 | -29.8% | | Adjusted EBITDA | $23,627 | $24,694 | -4.3% | $89,503 | $97,009 | -7.8% | | Earnings per common unit | $0.24 | $0.38 | -36.8% | $1.15 | $1.14 | +0.9% | | Adjusted Earnings per common unit | $0.11 | $0.23 | -52.2% | $0.52 | $0.88 | -40.9% | - Net Income for **Q4 2022** decreased by **$5.3 million (31.4%)** to **$11.6 million**, primarily due to a decrease in unrealized gain on interest rate swap transactions (from **$5.9 million** gain in **Q4 2021** to **$2.2 million** loss in **Q4 2022**), partly offset by a **$2.072 million** gain on debt extinguishment[25](index=25&type=chunk)[57](index=57&type=chunk) - Adjusted Net Income for **Q4 2022** decreased by **$4.4 million (38.6%)** to **$7.0 million**, mainly due to an increase in interest and finance costs[26](index=26&type=chunk) - Voyage revenues for **Q4 2022** decreased by **$0.6 million (1.7%)** to **$35.1 million**, mainly due to lower variable hire revenues from Lena River and Yenisei River[27](index=27&type=chunk) - Average daily hire gross of commissions was approximately **$62,700** per day per vessel in **Q4 2022**, down from **$64,500** in **Q4 2021**, while maintaining **100% utilization**[28](index=28&type=chunk)[29](index=29&type=chunk) - Vessel operating expenses decreased by **$0.4 million (4.9%)** to **$7.8 million** in **Q4 2022**, corresponding to daily operating expenses of **$14,060** per vessel, mainly due to lower maintenance costs for Lena River and Yenisei River[30](index=30&type=chunk) - Interest and finance costs, net, increased by **$3.3 million (62.3%)** to **$8.6 million** in **Q4 2022**, driven by a higher weighted average interest rate, partially offset by reduced interest-bearing debt[32](index=32&type=chunk) [Liquidity/ Financing/ Cash Flow Coverage](index=8&type=section&id=Liquidity%2F%20Financing%2F%20Cash%20Flow%20Coverage) Net cash from operating activities decreased in Q4 2022, primarily due to working capital changes. The Partnership reported $79.9 million in total cash and reduced its outstanding indebtedness through a voluntary prepayment, while maintaining an unused revolving credit facility - Net cash from operating activities for **Q4 2022** was **$13.4 million**, a decrease of **$7.6 million (36.2%)** compared to **Q4 2021**, mainly due to working capital changes[36](index=36&type=chunk) - Total cash (including restricted cash) as of December 31, 2022, was **$79.9 million**[37](index=37&type=chunk) - Outstanding indebtedness under the **$675.0 Million Credit Facility** was **$499.9 million** as of December 31, 2022, following a **$18.73 million** voluntary prepayment[37](index=37&type=chunk)[38](index=38&type=chunk) - The Partnership had unused availability of **$30.0 million** under its interest-free revolving credit facility with its Sponsor, available until November 2023[39](index=39&type=chunk) [Vessel Employment and Fleet Status](index=9&type=section&id=Vessel%20Employment%20and%20Fleet%20Status) As of March 17, 2023, Dynagas LNG Partners LP had 100% contracted time charter coverage for its fleet through 2025, with an estimated revenue backlog of $1.00 billion and an average remaining contract term of 6.4 years - As of **March 17, 2023**, the Partnership had estimated **100% contracted time charter coverage** for its fleet's Available Days for **2023, 2024, and 2025**[40](index=40&type=chunk) - Estimated contracted revenue backlog was **$1.00 billion**, with an average remaining contract term of **6.4 years**[40](index=40&type=chunk) - Approximately **$0.13 billion** of the revenue backlog estimate relates to variable hire in certain time charter contracts with Yamal, subject to yearly adjustments based on actual operating costs[43](index=43&type=chunk) [Conference Call and Webcast Information](index=9&type=section&id=Conference%20Call%20and%20Webcast%20Information) Dynagas LNG Partners LP hosted a conference call and webcast on March 17, 2023, to discuss its financial results, with details provided for participation and access to the archived audio and slide presentation - A conference call was held on **March 17, 2023, at 10:00 a.m. Eastern Time** to discuss financial results[44](index=44&type=chunk) - Details for dial-in and webcast access were provided, including a 'call me' option and availability of a slide presentation in PDF format on the Partnership's website[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) [About Dynagas LNG Partners LP](index=10&type=section&id=About%20Dynagas%20LNG%20Partners%20LP) [Company Overview](index=10&type=section&id=Company%20Overview) Dynagas LNG Partners LP is a master limited partnership that owns and operates six liquefied natural gas (LNG) carriers, with an aggregate carrying capacity of approximately 914,000 cubic meters, employed on multi-year charters - Dynagas LNG Partners LP is a master limited partnership owning and operating **six LNG carriers**[49](index=49&type=chunk) - The fleet has an aggregate carrying capacity of approximately **914,000 cubic meters** and is employed on multi-year charters[49](index=49&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) [Disclaimer and Risk Factors](index=10&type=section&id=Disclaimer%20and%20Risk%20Factors) This section provides a safe harbor statement for forward-looking information, emphasizing that actual results may differ materially due to various risks. Key risk factors include global economic conditions, fluctuations in charter rates, operating expenses, financing availability, regulatory changes, political events (including the Russian conflict and sanctions), and other industry-specific challenges - Statements in the press release may constitute forward-looking statements, protected by the Private Securities Litigation Reform Act of 1995[50](index=50&type=chunk)[51](index=51&type=chunk) - Forward-looking statements are based on assumptions and estimates, but actual results may differ due to significant uncertainties and contingencies beyond the Partnership's control[52](index=52&type=chunk) - Key risk factors include: strength of world economies, currency fluctuations, general market conditions (charter rates, vessel values), changes in supply/demand for LNG shipping, operating expenses (bunker prices, drydocking, insurance), financing availability, governmental laws/regulations, economic/regulatory/political conditions affecting the industry, litigation, environmental damage, political events, vessel breakdowns, epidemics (e.g., COVID-19), impact of LIBOR discontinuance, and the ongoing Russian conflict with Ukraine and associated sanctions[53](index=53&type=chunk)[54](index=54&type=chunk) - Potential consequences of Russian sanctions include limitations on SWIFT, counterparty performance issues, and general deterioration of the Russian economy, which could significantly impact the Partnership's business[54](index=54&type=chunk) [Financial Statements (Appendix A)](index=12&type=section&id=Financial%20Statements%20(Appendix%20A)) [Condensed Consolidated Statements of Income](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The Condensed Consolidated Statements of Income show a decrease in Q4 2022 Net Income to $11.6 million from $16.9 million in Q4 2021, primarily influenced by changes in derivative instrument gains and increased interest costs. Full-year Net Income slightly increased to $54.0 million Condensed Consolidated Statements of Income (Selected Items, in thousands) | Metric | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Voyage revenues | $35,064 | $35,678 | $131,657 | $137,746 | | Vessel operating expenses | $(7,761) | $(8,169) | $(29,773) | $(29,640) | | Operating income | $16,244 | $16,730 | $45,337 | $64,611 | | Interest and finance costs, net | $(8,603) | $(5,315) | $(27,082) | $(21,420) | | Gain on Debt Extinguishment | $2,072 | $— | $2,072 | $— | | Gain on derivative instruments | $2,181 | $5,529 | $33,655 | $10,104 | | Net income | $11,618 | $16,941 | $54,010 | $53,260 | | Earnings per common unit (basic and diluted) | $0.24 | $0.38 | $1.15 | $1.14 | [Consolidated Condensed Balance Sheets](index=13&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) The Consolidated Condensed Balance Sheets show a slight decrease in total assets to $947.7 million as of December 31, 2022, from $965.5 million in 2021. Total liabilities decreased to $523.8 million, while total partners' equity increased to $423.9 million, reflecting debt reduction and improved common unitholders' equity Consolidated Condensed Balance Sheets (Selected Items, in thousands) | Metric | Dec 31, 2022 | Dec 31, 2021 | | :------------------------------------------ | :----------- | :----------- | | Cash and cash equivalents and restricted cash | $79,868 | $97,015 | | Derivative financial instrument | $34,877 | $8,824 | | Vessels, net | $825,105 | $853,190 | | Total assets | $947,712 | $965,481 | | Total long-term debt, net | $497,033 | $561,966 | | Total liabilities | $523,781 | $583,997 | | Total partners' equity | $423,931 | $381,484 | | Common unitholders equity | $297,139 | $254,734 | [Consolidated Condensed Statements of Cash Flows](index=15&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) The Consolidated Condensed Statements of Cash Flows indicate a decrease in net cash from operating activities for Q4 2022 to $13.4 million, and for the full year to $57.3 million. Net cash used in financing activities increased, primarily due to higher debt repayments, resulting in a net decrease in cash and cash equivalents for both periods Consolidated Condensed Statements of Cash Flows (Selected Items, in thousands) | Metric | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net cash from Operating Activities | $13,423 | $20,997 | $57,324 | $79,591 | | Net cash used in Investing Activities | $(2,045) | $— | $(3,635) | $— | | Repayment of long-term debt | $(28,893) | $(12,000) | $(64,893) | $(48,000) | | Receipt/ (Payment) of derivative instruments | $4,329 | $(407) | $7,409 | $(1,385) | | Net cash used in Financing Activities | $(29,244) | $(15,298) | $(70,836) | $(57,555) | | Net increase / (decrease) in cash and cash equivalents | $(17,866) | $5,699 | $(17,147) | $22,036 | | Cash and cash equivalents and restricted cash at end of period | $79,868 | $97,015 | $79,868 | $97,015 | [Non-GAAP Financial Reconciliations & Fleet Statistics (Appendix B)](index=17&type=section&id=Non-GAAP%20Financial%20Reconciliations%20%26%20Fleet%20Statistics%20(Appendix%20B)) [Fleet Statistics and Operational Definitions](index=17&type=section&id=Fleet%20Statistics%20and%20Operational%20Definitions) Appendix B provides key fleet statistics for Q4 and Full Year 2022, showing consistent 100% fleet utilization. It also defines operational metrics such as Calendar Days, Available Days, Revenue earning days, Time Charter Equivalent (TCE) rate, and Daily vessel operating expenses, along with their calculation methodologies Fleet Statistics (Q4 and Full Year 2022 vs 2021) | Metric | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :-------------------------- | :------ | :------ | :------ | :------ | | Number of vessels at end of period | 6 | 6 | 6 | 6 | | Average number of vessels in period | 6 | 6 | 6 | 6 | | Calendar Days | 552.0 | 552.0 | 2,190.0 | 2,190.0 | | Available Days | 552.0 | 552.0 | 2,087.2 | 2,190.0 | | Revenue earning days | 552.0 | 552.0 | 2,087.2 | 2,190.0 | | Time Charter Equivalent rate | $62,239 | $63,620 | $61,660 | $61,684 | | Fleet Utilization | 100% | 100% | 100% | 100% | | Vessel daily operating expenses | $14,060 | $14,799 | $13,595 | $13,534 | - Fleet utilization is calculated by dividing Revenue earning days by Available Days, measuring efficiency in vessel employment[65](index=65&type=chunk) - Time Charter Equivalent (TCE) rate is a non-GAAP measure of average daily revenue performance, calculated by dividing total voyage revenues less voyage expenses by Available Days[66](index=66&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=18&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section provides a reconciliation of Net Income to Adjusted EBITDA, a non-GAAP measure used by management and investors to assess operating performance by excluding non-cash and non-recurring items. Adjusted EBITDA for Q4 2022 was $23.6 million, a decrease from $24.7 million in Q4 2021 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net income | $11,618 | $16,941 | $54,010 | $53,260 | | Net interest and finance costs | $8,603 | $5,315 | $27,082 | $21,420 | | Depreciation | $8,040 | $7,993 | $31,806 | $31,710 | | Gain on Debt Extinguishment | $(2,072) | $— | $(2,072) | $— | | (Gain)/ Loss on derivative financial instrument | $(2,181) | $(5,529) | $(33,655) | $(10,104) | | Dry-docking and special survey costs | $— | $— | $12,791 | $— | | Amortization of deferred revenue | $(435) | $(81) | $(675) | $222 | | Amortization and write-off of deferred charges | $54 | $55 | $216 | $501 | | Adjusted EBITDA | $23,627 | $24,694 | $89,503 | $97,009 | - Adjusted EBITDA is defined as earnings before interest and finance costs, gains/losses on derivative financial instruments, taxes, depreciation and amortization, dry-docking and special survey costs, and significant non-recurring items[71](index=71&type=chunk) - Adjusted EBITDA is a supplemental non-GAAP measure used to compare operating performance across periods and companies by excluding disparate financial items, depreciation, amortization, and taxes[72](index=72&type=chunk) [Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS](index=19&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20EPS) This section reconciles Net Income to Adjusted Net Income and Adjusted Earnings per common unit, both non-GAAP measures. Adjusted Net Income excludes non-recurring expenses, charter hire amortization, and changes in fair value of derivative financial instruments. For Q4 2022, Adjusted Net Income was $7.0 million, and Adjusted Earnings per common unit was $0.11 Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS (in thousands, except per unit data) | Metric | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net Income | $11,618 | $16,941 | $54,010 | $53,260 | | Amortization of deferred revenue | $(435) | $(81) | $(675) | $222 | | Amortization and write-off of deferred charges | $54 | $55 | $216 | $501 | | Dry-docking and special survey costs | $— | $— | $12,791 | $— | | Gain on Debt Extinguishment | $(2,072) | $— | $(2,072) | $— | | (Gain)/ Loss on derivative financial instrument | $(2,181) | $(5,529) | $(33,655) | $(10,104) | | Adjusted Net Income | $6,984 | $11,386 | $30,615 | $43,879 | | Less: Adjusted Net Income attributable to preferred unitholders and general partner | $(2,895) | $(2,899) | $(11,582) | $(11,595) | | Net Income available to common unitholders | $4,089 | $8,487 | $19,033 | $32,284 | | Weighted average number of common units outstanding | 36,802,247 | 36,802,247 | 36,802,247 | 36,504,120 | | Adjusted Earnings per common unit, basic and diluted | $0.11 | $0.23 | $0.52 | $0.88 | - Adjusted Net Income represents net income before non-recurring expenses, charter hire amortization related to escalating time charter rates, and changes in the fair value of derivative financial instruments[76](index=76&type=chunk) - Adjusted Earnings per common unit is calculated by dividing Net Income available to common unitholders by the weighted average common units outstanding[77](index=77&type=chunk)

Dynagas LNG Partners LP (NYSE:DLNG) Q4 2022 Earnings Conference Call March 17, 2023 10:00 AM ET Company Participants Tony Lauritzen - Chief Executive Officer Michael Gregos - Chief Financial Officer Conference Call Participants Ben Nolan - Stifel Operator Thank you for standing by ladies and gentlemen, and welcome to the Dynagas LNG Partners Conference Call on the Fourth Quarter 2022 Financial Results. With us today we have Mr. Tony Lauritzen, Chief Executive Officer; and Mr. Michael Gregos, Chief Financial ...