Dynagas LNG Partners LP reports results for the three months and year ended December 31, 2016

Monaco – February 27, 2017

Dynagas LNG Partners LP (NYSE: “DLNG”) (“Dynagas Partners” or the “Partnership”), an owner and operator of liquefied natural gas (“LNG”) carriers, today announced its results for the three months and year ended December 31, 2016.

Three Months and Year Ended December 31, 2016 Highlights:

• Net income during the three months and year ended December 31, 2016 of $15.5 million and $66.9 million, respectively;

• Earnings per common unit for the three months and year ended December 31, 2016 of $0.39 and $1.69, respectively;

• Adjusted Net Income (1) for the three months and year ended December 31, 2016 of $17.3 million and $74.1 million, respectively;

• Adjusted Earnings per common unit (1) (2) for the three months and year ended December 31, 2016 of $0.44 and $1.89, respectively;

• Distributable Cash Flow (1) during the three months and year ended December 31, 2016 of $21.3 million and $89.6 million, respectively;

• Adjusted EBITDA (1) for the three months and year ended December 31, 2016 of $33.9 million and $139.5 million, respectively;

• $82.6 million of reported cash and $112.6 million of available liquidity as of December 31, 2016;

• Quarterly cash distribution of $0.4225 per common unit in respect of the fourth quarter and $0.5625 per preferred unit in respect of the most recent period.

(1) Distributable Cash Flow, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common unit are not recognized measures under U.S. GAAP. Please refer to the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP in Appendix B.

(2) Adjusted Earnings per common unit presentation eliminates the effect of the Series A Preferred Units interest on the Partnership’s net income for the periods presented.

Recent Developments:

Quarterly Common and Subordinated Unit Cash Distribution: On January 4, 2017, the Partnership’s Board of Directors announced a quarterly cash distribution of $0.4225 per common and subordinated unit in respect of the fourth quarter of 2016. This cash distribution was paid on January 19, 2017 to all common and subordinated unitholders of record as of January 11, 2017.

Series A Preferred Units Cash Distribution: On January 23, 2017, the Partnership’s Board of Directors also announced a cash distribution of $0.5625 per unit of its Series A Preferred Units (NYSE: DLNG PR A) for the period from November 12, 2016 to February 11, 2017, which was paid on February 13, 2017 to all unitholders of record as of February 5, 2017.

Conversion of Sponsor’s Subordinated Units into Common Units: On January 23, 2017, all conditions were satisfied for the expiration of the subordination period with regards to the 14,985,000 subordinated units owned by the Partnership’s Sponsor. As such, as of the same date, all subordinated units converted into common units on a one-for-one basis (“the Converted Common Units”). Following the issuance of the Converted Common Units, the Partnership, as of the date of this release, has 35,490,000 issued and outstanding common units and the Partnership’s Sponsor retains a 43.9% interest in them.

Chief Executive Officer Commentary:
Tony Lauritzen, Chief Executive Officer of the Partnership, commented: “We are pleased to report our earnings for the fourth quarter and year ended December 31, 2016.

“The year ended December 31, 2016 has been a record financial year for us, during which Adjusted EBITDA increased by approximately 23% as compared to the full year ended December 31, 2015, mainly to the acquisition from our Sponsor of the Lena River in late 2015. Our fleet of six LNG Carriers performed at 100% utilization during 2016, which contributed positively to our full year financial results. Our Adjusted Earnings per common unit for the year ended December 31, 2016 amounted to $1.89, which is an increase of approximately 16% compared to the year ended December 31, 2015. The results for the quarter ended December 31, 2016 have been overall strong too, with a 19% increase in Adjusted EBITDA, compared to the same period in 2015.

“Our revenues are derived from the employment of our vessels on fixed multi-year charter contracts. The revenues we earn under those charter contracts are on a fixed day rate basis and not directly linked to commodity price fluctuations. On January 19, 2017, we paid quarterly cash distribution of $0.4225 per common and subordinated unit with respect to the fourth quarter of 2016. Since our initial public offering in November 2013, we have paid total cash distributions amounting to approximately $5.10 per common and subordinated unit. On February 13, 2017, we paid a cash distribution of $0.5625 per unit on our Series A Preferred Units for the period from November 12, 2016 to February 11, 2017 to all holders of the Series A Preferred Units as of February 5, 2017.

“With our fleet 86% contracted through 2017 and 75% contracted through 2018 and 2019, and with an estimated fleet-wide average remaining contract duration of 10.7 years, we intend to continue to focus on obtaining additional contract coverage, particularly in 2017, managing our operating expenses and continuing the safe operation of our fleet. “I look forward to working with our team towards meeting our goals, which we believe will continue to benefit our unitholders.”

Full report

Dynagas LNG Partners L.P. - Press Release