Dynagas LNG Partners LP(DLNG) - 2023 Q2 - Quarterly Report

FORM 6-K General Information 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] - 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] - The information is incorporated by reference into the Partnership's registration statement on Form F-3 (File No. 333-240014)[4] 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] - Actual results may differ materially due to significant uncertainties and contingencies beyond control[6] - 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] - The Partnership undertakes no obligation to update forward-looking statements, except as required by law[9] 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] - The signing date was October 4, 2023[13] Management's Discussion and Analysis of Financial Condition and Results of Operations Business Overview and Development of the Partnership 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] - Current strategy focuses on debt repayment and balance sheet strength due to the elevated cost of equity capital[18] - Future growth is contingent on accessing debt and equity capital on acceptable terms[18] - The Sponsor beneficially owns approximately 42.4% of the equity interests and 100% of the General Partner[19] 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][27] - A loss on debt extinguishment of $154 thousand was recognized due to the write-off of unamortized debt discounts related to the prepayment[25] - The requirement for maintaining $31.3 million in the Cash Collateral Account was removed[27] Our Fleet and our 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] - 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] 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] 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] Principal Factors Affecting Our Results of Operations 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] - Daily operating expenses (crewing, insurance, maintenance, spares, taxes) and factors beyond control like market premiums and currency fluctuations also impact results[41] - Other factors include dry-docking schedules, relationships with charterers, access to capital, debt levels, and economic or political conditions affecting the LNG industry[41][45] Detailed Results of Operations (Six months ended June 30, 2023 compared to the six months ended June 30, 2022) 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] - 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] - This increase was partially offset by lower revenues from the opex component of daily hire for 'Yenisei River' and 'Lena River'[43] 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] - The increase was primarily associated with increased bunker expenses for the 'Ob River' during unscheduled repairs[44] 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] - The daily rate for vessel operating expenses was $14,171 per LNG carrier in H1 2023, up from $13,792 in H1 2022[45] - The increase was mainly attributable to increased technical maintenance on certain vessels[45] General and 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] - The decrease was mainly associated with reduced D&O insurance premium costs and lower legal expenses[46] 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] - The daily fee was $2,917 per vessel per day in H1 2023, compared to $2,833 in H1 2022[47] - The increase is consistent with the annual daily rate increase prescribed in the management agreement[47] 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] - The increase was due to vessel improvements carried out after June 30, 2022[48] Interest and 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] - 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] - 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] Gain on 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] - 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] Liquidity and 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] - 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] - 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] - Aggregate outstanding indebtedness was $444.6 million as of June 30, 2023[58] - 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] - 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] Impact of 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] - 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] - Currently imposed sanctions do not affect compliance with terms imposed by the $675 Million Credit Facility[63] - 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] - 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] Estimated Maintenance and 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] - 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] Our 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] 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] 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] - 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] Interim Condensed Consolidated Financial Statements 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] 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 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 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] - Receipts from derivative instruments increased to $11.7 million in H1 2023 from $0.6 million in H1 2022[93] Notes to the Unaudited Interim Condensed Consolidated Financial Statements 1. Basis of Presentation and 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] - In H1 2023, 39% of revenues were from Yamal Trade Pte. Ltd., which trades primarily from Russian LNG ports[95] - 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][96] - 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][99] - Maximum aggregate loss due to credit risk from charterers was $8,574 thousand as of June 30, 2023[106] 2. Significant Accounting Policies and 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] - 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] - The sunset date of Topic 848 was deferred from December 31, 2022, to December 31, 2024, with the issuance of ASU 2022-06[111] 3. Prepayments and 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] - These claims are due to an incident of cargo pump failure on one of the Partnership's vessels, for which recovery is expected[113] 4. 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][118] - A $30 million interest-free revolving credit facility with the Sponsor, extended until November 2023, remains undrawn as of June 30, 2023[123] 5. 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] - All vessels are first priority mortgaged as collateral to secure the $675 Million Credit Facility[126] 6. 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] - Interest rate transitioned from U.S. LIBOR plus 3.00% margin to U.S. SOFR plus 3.00% margin effective June 28, 2023[130] - 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][141] 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] 7. 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] - The $675 Million Credit Facility is considered a Level 2 item due to its variable interest rate (SOFR rates are observable)[146] - Derivative financial instruments (interest rate swaps) are Level 2, with a fair value asset of $28,283 thousand as of June 30, 2023[146][149] - 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] 8. Commitments and 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] - Estimated management fees from July 1, 2023, to December 31, 2030, are $53,685 thousand, adjusted for annual 3% inflation[159] 9. 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][170][171] - 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][172][173] - The Partnership is prohibited from paying distributions to its common unitholders while borrowings are outstanding under the $675 Million Credit Facility[169] 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 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] 11. Interest and Finance Costs 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 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] - The swap did not qualify for hedge accounting, and changes in its fair value are reflected in earnings[187] - 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][192] - A gain on derivative financial instruments of $5,023 thousand was recognized in H1 2023, compared to $21,231 thousand in H1 2022[189][193] - 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] 13. 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] - 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]