Dynagas LNG Partners LP(DLNG) - 2024 Q2 - Quarterly Report

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$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$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$908,913 thousand as of December 31, 2023, to $838,428 thousand as of June 30, 2024, representing a decline of approximately 7.7$458,761 thousand as of December 31, 2023, to $71,491 thousand as of June 30, 2024, a reduction of approximately 84.4$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].