Dynagas LNG Partners LP (NYSE: “DLNG”) (“the “Partnership”), an owner and operator of liquefied natural gas (“LNG”) carriers, announced its results for the three and six months ended June 30, 2024.

Half year Highlights:

• Net Income and Earnings per common unit (basic and diluted) of $22.5 million and $0.43, respectively,

• Adjusted Net Income of $24.7 million and Adjusted Earnings per common unit (basic and diluted) of $0.50,

• Adjusted EBITDA $57.6 million, and

• 100% fleet utilization

Quarter Highlights:

• Net Income and Earnings per common unit (basic and diluted) of $10.7 million and $0.20, respectively;

• Adjusted Net Income of $12.4 million and Adjusted Earnings per common unit (basic and diluted) of $0.25;

• Adjusted EBITDA(1) $28.6 million,

100% fleet utilization,

• Declared and paid a cash distribution of $0.5625 per unit on the Partnership’s Series A Preferred Units (NYSE: “DLNG PR A”) for the period from February 12, 2024 to May 11, 2024 and $0.698533750 per unit on the Series B Preferred Units (NYSE: “DLNG PR B”) for the period from February 22, 2024 to May 21, 2024, and

• On June 19, 2024, the Partnership entered into sale and leaseback agreements with subsidiaries of China Development Bank Financial Leasing Co. Ltd. (“CDBL”) for the lease financing of a total amount of $345.0 million for four out of the Partnership’s six LNG carriers. On June 27, 2024, proceeds received under the lease financing agreements, together with available cash, were used to fully prepay outstanding amounts under the $675 million Credit Facility, which was scheduled to mature in September 2024.

Subsequent Events:

• Declared a quarterly cash distribution of $0.5625 on the Partnership’s Series A Preferred Units for the period from May 12, 2024 to August 11, 2024, which was paid on August 12, 2024 to all Series A Preferred unitholders of record as of August 5, 2024; and

• Declared a quarterly cash distribution of $0.714537806 on the Partnership’s Series B Preferred Units for the period from May 22, 2024 to August 21, 2024, which was paid on August 22, 2024 to all Series B Preferred unitholders of record as of August 15, 2024.

CEO Commentary:

We are pleased to report the financial results for the three months ended June 30, 2024.

In the second quarter of 2024, we reported a Net Income of $10.7 million, with earnings per common unit of $0.20. Adjusted EBITDA and Adjusted Net Income reached $28.6 million and $12.4 million respectively.

All six LNG carriers in our fleet are currently operating under long-term charters with international gas companies. These contracts have an average remaining term of 6.4 years.

Assuming no unforeseen events, the Partnership expects no vessel availability until 2028. As of September 10, 2024, our estimated contract backlog stands at approximately $1.04 billion, equating to an average of about $173 million per vessel.

We are also pleased to announce new lease financing agreements with China Development Bank Financial Leasing Co. Ltd for four of our LNG carriers. The $345.0 million financing, along with $63.7 million from the Partnership’s existing cash reserves, was used to fully repay amounts outstanding under our previous credit facility of $408.7 million on June 27, 2024, ahead of its schedule maturity in September 2024.

Following a sustained period of strategic deleveraging, we now have substantially reduced our debt levels and secured a more flexible financing structure. With two of our LNG carriers now debt-free, we believe the Partnership is well-positioned for the next phase of growth and development.

Full report: Dynagas LNG Partners LP