Dynagas LNG Partners LP Declares Cash Distribution on its Series B Preferred Units

Rhea-AI Summary

Dynagas LNG Partners (NYSE: DLNG) has announced a quarterly cash distribution for its Series B Fixed to Floating Cumulative Redeemable Perpetual Preferred Units. The distribution amount is set at $0.614808 per unit for the period from February 24, 2024, to May 21, 2025.

The distribution rate for this period is 10.176140%, calculated as the sum of the Credit Adjusted Three-Month CME Term SOFR (4.583140%) plus a spread of 5.593%. Payment is scheduled for May 22, 2025, to unitholders of record as of May 15, 2025.

This marks the twenty-sixth consecutive quarterly distribution for the Series B Preferred Units since their NYSE listing. The company currently has 2,200,000 Series B Preferred Units outstanding. Distributions are paid quarterly in February, May, August, and November, subject to Board approval.

Positive

• Consistent quarterly distribution maintained for Series B Preferred Units (26th sequential payment)
• High distribution rate of 10.176140% for preferred unitholders
• All 2.2 million Series B Preferred Units remain outstanding, indicating stability

Negative

• Rising interest rates affecting distribution costs (SOFR rate at 4.583140%)

Insights

Financial Analyst

Dynagas maintains its 26th consecutive preferred distribution with a 10.18% yield, representing $1.35 million in payments to Series B unitholders.

Dynagas LNG Partners' announcement of its $0.614808 per unit distribution on Series B Preferred Units maintains the partnership's consistent payment history, marking the 26th sequential distribution since these units began trading on the NYSE. The current distribution translates to a 10.176140% annualized yield, derived from the Credit Adjusted Three-Month CME Term SOFR of 4.583140% plus a fixed spread of 5.593%.

With 2,200,000 Series B Preferred Units outstanding, this distribution represents a total payment of approximately $1.35 million to preferred unitholders. The floating rate structure of these preferred units provides investors with some protection against interest rate fluctuations, as evidenced by the current rate calculation that incorporates the prevailing SOFR benchmark.

The distribution is payable on May 22, 2025, to unitholders of record as of May 15, 2025. The quarterly payment schedule (February, May, August, and November) provides predictable income streams for preferred unitholders. The floating rate structure of these preferred units means their yield adjusts every three months based on market interest rates, providing some inflation protection for investors while creating variable cost obligations for the partnership.

ATHENS, Greece, April 29, 2025 (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 $0.614808 per unit on its Series B Fixed to Floating Cumulative Redeemable Perpetual Preferred Units (the “Series B Preferred Units”) (NYSE: DLNG PR B) for the period from and including February 24, 2024 to and including May 21, 2025 (the “Distribution Period”).

The applicable distribution rate for each distribution period is determined every three months by the calculation agent for the Series B Preferred Units. The distribution rate for the Distribution Period was 10.176140% (which is the sum of the applicable Credit Adjusted Three-Month CME Term SOFR of 4.583140% plus a spread of 5.593%).

The cash distribution is payable on May 22, 2025, to all Series B Preferred Unitholders of record as of the close of business on May 15, 2025.

Distributions on the Series B Preferred Units are payable quarterly in arrears on the 22^nd day (unless the 22^nd day falls on a weekend or public holiday, in which case the payment date is moved to the next business day) of February, May, August and November of each year, when, as and if declared by our Board of Directors. This is the twenty-sixth sequential cash distribution on the Series B Preferred Units since they began trading on the NYSE.

The Partnership has 2,200,000 Series B Preferred Units outstanding as of the date of this press release.

About Dynagas LNG Partners LP

Dynagas LNG Partners LP (NYSE: DLNG) is a master limited partnership which owns and operates LNG carriers employed on multi-year charters. The Partnership’s current fleet consists of six LNG carriers, with aggregate carrying capacity of approximately 914,000 cubic meters.

Visit the Partnership’s website at www.dynagaspartners.com

Contact Information:
Dynagas LNG Partners LP
Attention: Michael Gregos
Tel. +30 210 8917960
Email: management@dynagaspartners.com

Investor Relations/ Financial Media:
Nicolas Bornozis/Markella Kara
Capital Link, Inc.
230 Park Avenue, Suite 1540
New York, NY 10169
Tel. (212) 661-7566
E-mail: dynagas@capitallink.com

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Partnership desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “expected,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination by the Partnership’s management of historical operating trends, data contained in its records and other data available from third parties. Although the Partnership believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Partnership’s control, the Partnership cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Partnership’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for Liquefied Natural Gas (LNG) shipping capacity, changes in the Partnership’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Partnership’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Partnership disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

FAQ

What is the Series B Preferred Units distribution amount for Dynagas LNG (DLNG) in May 2025?

Dynagas LNG Partners announced a cash distribution of $0.614808 per Series B Preferred Unit, payable on May 22, 2025, to unitholders of record as of May 15, 2025.

How is DLNG's Series B Preferred Units distribution rate calculated?

The distribution rate is 10.176140%, calculated as the sum of the Credit Adjusted Three-Month CME Term SOFR (4.583140%) plus a spread of 5.593%. This rate is determined every three months by the calculation agent.

When are Dynagas LNG (DLNG) Series B Preferred Unit distributions paid?

Distributions are paid quarterly on the 22nd of February, May, August, and November, unless the date falls on a weekend or holiday, in which case payment moves to the next business day.

How many Series B Preferred Units does DLNG have outstanding?

Dynagas LNG Partners has 2,200,000 Series B Preferred Units outstanding as of the press release date.

What is the distribution period for DLNG's May 2025 preferred payment?

The distribution period covers February 24, 2024, to May 21, 2025. This marks the twenty-sixth sequential cash distribution since the Series B Preferred Units began trading on NYSE.