Dynagas LNG Partners LP

For Q2 2024, Dynagas LNG Partners reported revenue of $37.6 million versus $38.0 million in Q1, net income of $10.7 million versus $11.75 million in Q1, and earnings per common unit of $0.20. Adjusted net income was $12.4 million, or $0.25 per common unit, unchanged sequentially, and adjusted EBITDA was $28.6 million versus $29.0 million in Q1. Average TCE was $67,300 per day, down from $68,100, while operating income was $18.8 million, down 2.6% from $19.3 million. Guidance/commentary for the next quarter was focused on capital allocation: the board is expected to evaluate and announce its capital allocation strategy next quarter. Management also said the swap maturity will likely lift interest expense and increase Q4 2024 debt service per day by about $5,200, resulting in a pro-forma cash breakeven of approximately $50,000 per day for Q4 2024.

Tony Lauritzen framed the quarter as a period of strategic balance-sheet improvement rather than growth through new vessels. He emphasized that all six ships were on long-term charters, the refinancing was completed ahead of maturity, and the company now has two debt-free vessels and substantially lower leverage. His tone was constructive and confident, describing the fleet as well positioned for stable income and saying the next quarter should bring a board review of capital allocation.

Michael Gregos highlighted stable operating performance and specific cash and debt metrics. He said fleet utilization was 100%, revenue was $37.6 million, adjusted EBITDA was $28.6 million, and average cash breakeven costs were $44,881 per day, leaving a surplus of $22,450 per day versus average TCE. He walked through the cash bridge: starting cash of $76 million, $64 million of company cash used alongside the new $345 million sale-and-leaseback to repay the $408.6 million prior facility, and ending cash of $35.6 million. He also noted total debt of $345 million, $42 million of cumulative realized swap gains since September 2020, roughly $5 million more expected at swap maturity, and a projected increase in Q4 debt service per day to about $50,000 as floating-rate exposure rises.

There was no substantive analyst Q&A in the transcript; the session ended without questions. Management did, however, answer the implied investor focus around financing and capital returns by saying the refinancing improved flexibility, reduced leverage, and that the board will evaluate capital allocation strategy next quarter. They also flagged that the interest rate swap ends on September 18, 2024, which will raise interest expense and debt service.