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

Rhea-AI Summary

Dynagas LNG Partners LP (NYSE: DLNG) has announced a quarterly cash distribution of $0.677286319 per unit on its Series B Fixed to Floating Cumulative Redeemable Perpetual Preferred Units for the period from November 22, 2024, to February 23, 2025.

The distribution rate for this period is set at 10.375450%, comprising a Credit Adjusted Three-Month CME Term SOFR of 4.782450% plus a spread of 5.593%. The payment will be made on February 24, 2025, to unitholders of record as of February 14, 2025.

This marks the twenty-fifth consecutive quarterly distribution on the Series B Preferred Units since their NYSE listing. The Partnership currently has 2,200,000 Series B Preferred Units outstanding.

Positive

• Maintained consistent quarterly distribution payments for 25 consecutive quarters
• Strong distribution rate of 10.375450% for preferred unitholders

Negative

• None.

Insights

Financial Analyst

The declared quarterly distribution on Dynagas LNG Partners' Series B Preferred Units reflects the current high-interest rate environment, with a notable 10.375450% distribution rate. This rate, based on SOFR plus a fixed spread, translates to a $0.677286319 per unit payment, amounting to approximately $1.49 million in total distributions.

The distribution calculation mechanism, linking to SOFR (Secured Overnight Financing Rate), provides both protection and opportunity for preferred unitholders. As SOFR adjusts with market conditions, the distribution rate automatically recalibrates, offering a hedge against interest rate fluctuations. The 5.593% spread above SOFR ensures a substantial premium that compensates for the units' position in the capital structure.

The twenty-fifth consecutive quarterly distribution underscores the Partnership's commitment to maintaining its preferred dividend obligations, a important consideration for income-focused investors. However, it's important to note that preferred distributions, while providing steady income, take precedence over common unit distributions, impacting the cash available for common unitholders.

In the context of the LNG shipping market, maintaining consistent preferred payments suggests stable underlying cash flows from the Partnership's LNG carrier operations, though investors should monitor the coverage ratio and the company's ability to sustain these payments given the cyclical nature of the shipping industry.

ATHENS, Feb. 04, 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 $0.677286319 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 November 22, 2024 to and including February 23, 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 10.375450% (which is the sum of the applicable Credit Adjusted Three-Month CME Term SOFR of 4.782450% plus a spread of 5.593%).

The cash distribution is payable on February 24, 2025 to all Series B Preferred Unitholders of record as of the close of business on February 14, 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-fifth 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 latest distribution amount for Dynagas LNG Partners LP (DLNG) Series B Preferred Units?

Dynagas LNG Partners LP declared a cash distribution of $0.677286319 per Series B Preferred Unit for the period from November 22, 2024, to February 23, 2025.

When is the payment date for DLNG's Series B Preferred Units Q1 2025 distribution?

The cash distribution is payable on February 24, 2025, to Series B Preferred Unitholders of record as of February 14, 2025.

What is the current distribution rate for DLNG's Series B Preferred Units?

The distribution rate for the period is 10.375450%, which consists of the Credit Adjusted Three-Month CME Term SOFR of 4.782450% plus a spread of 5.593%.

How many Series B Preferred Units does Dynagas LNG Partners LP have outstanding?

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

How often are distributions paid on DLNG's Series B Preferred Units?

Distributions on the Series B Preferred Units are paid quarterly in arrears on the 22nd day of February, May, August, and November of each year, subject to declaration by the Board of Directors.