Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Entity Registrant Name | Dynagas LNG Partners LP |
Entity Central Index Key | 0001578453 |
Trading Symbol | DLNG |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Common Limited Partner | |
Document Information | |
Entity's units outstanding | 35,490,000 |
Series A Preferred Stock | |
Document Information | |
Entity's units outstanding | 3,000,000 |
Series B Preferred Stock | |
Document Information | |
Entity's units outstanding | 2,200,000 |
General Partner | |
Document Information | |
Entity's units outstanding | 35,526 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 109,917 | $ 67,464 |
Trade accounts receivable | 48 | 155 |
Prepayments and other assets | 692 | 1,103 |
Inventories | 1,220 | 799 |
Due from related party | 1,086 | 883 |
Total current assets | 112,963 | 70,404 |
FIXED ASSETS, NET: | ||
Vessels, net | 947,377 | 977,298 |
Total fixed assets, net | 947,377 | 977,298 |
OTHER NON CURRENT ASSETS: | ||
Due from related party | 1,350 | 1,350 |
Accrued charter revenue | 342 | 0 |
Deferred charges | 1,404 | 0 |
Above-market acquired time charter contract | 0 | 5,267 |
Total assets | 1,063,436 | 1,054,319 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt, net of unamortized deferred financing fees of $3,046 and $2,145, respectively | 251,754 | 2,655 |
Trade accounts payable | 5,736 | 4,497 |
Due to related party | 306 | 72 |
Accrued liabilities | 4,206 | 4,051 |
Unearned revenue | 10,740 | 11,623 |
Total current liabilities | 272,742 | 22,898 |
NON-CURRENT LIABILITIES: | ||
Deferred revenue | 3,147 | 1,405 |
Long-term debt, net of current portion and unamortized deferred financing fees of $6,938 and $11,102, respectively | 461,062 | 711,698 |
Total non-current liabilities | 464,209 | 713,103 |
Commitments and contingencies | 0 | 0 |
PARTNERS' EQUITY: | ||
Common unitholders (unlimited authorized; 35,490,000 units issued and outstanding as at December 31, 2018 and 2017) | 199,400 | 245,055 |
General Partner (35,526 units issued and outstanding as at December 31, 2018 and 2017) | (16) | 47 |
Total partners' equity | 326,485 | 318,318 |
Total liabilities and partners' equity | 1,063,436 | 1,054,319 |
Series A Preferred Stock | ||
PARTNERS' EQUITY: | ||
Total partners' equity | 73,216 | 73,216 |
Preferred unitholders | 73,216 | 73,216 |
Series B Preferred Stock | ||
PARTNERS' EQUITY: | ||
Total partners' equity | 53,885 | 0 |
Preferred unitholders | $ 53,885 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred finance fees, current portion | $ 3,046 | $ 2,145 |
Deferred finance fees, non-current portion | $ 6,938 | $ 11,102 |
Common unitholders - units issued | 35,490,000 | 35,490,000 |
Common unitholders - units outstanding | 35,490,000 | 35,490,000 |
General Partner unitholders - units issued | 35,526 | 35,526 |
General Partner unitholders - units outstanding | 35,526 | 35,526 |
Series A Preferred Stock | ||
Units authorized | 3,450,000 | 3,450,000 |
Units issued | 3,000,000 | 3,000,000 |
Units outstanding | 3,000,000 | 3,000,000 |
Series B Preferred Stock | ||
Units authorized | 2,530,000 | |
Units issued | 2,200,000 | 0 |
Units outstanding | 2,200,000 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUES: | |||
Voyage revenues | $ 127,135 | $ 138,990 | $ 169,851 |
EXPENSES: | |||
Voyage expenses | (1,148) | (1,789) | (749) |
Voyage expenses-related party | (1,654) | (1,830) | (2,212) |
Vessel operating expenses | (25,042) | (27,067) | (26,451) |
Dry-docking and special survey costs | (7,422) | (6,193) | (81) |
General and administrative expenses | (1,452) | (961) | (1,170) |
General and administrative expenses- related party | (757) | (725) | (715) |
Management fees-related party | (6,347) | (6,162) | (5,999) |
Depreciation | (30,330) | (30,319) | (30,395) |
Operating income | 52,983 | 63,944 | 102,079 |
OTHER INCOME/(EXPENSES): | |||
Interest and finance costs | (50,490) | (46,281) | (34,991) |
Interest income | 1,051 | 203 | 0 |
Other, net | 69 | (527) | (234) |
Total other expenses, net | (49,370) | (46,605) | (35,225) |
Partnership's Net Income | 3,613 | 17,339 | 66,854 |
Common unitholders' interest in Net Income | (4,042) | 9,302 | 34,652 |
Preferred unitholders' interest in Net Income | 7,659 | 6,750 | 6,750 |
Subordinated unitholders' interest in Net Income | 0 | 1,208 | 25,323 |
General Partner's interest in Net Income | $ (4) | $ 79 | $ 129 |
(Loss)/Earnings per unit, basic and diluted: | |||
Common unit (basic and diluted) | $ (0.11) | $ 0.27 | $ 1.69 |
Weighted average number of units outstanding, basic and diluted: | |||
Common units | 35,490,000 | 34,545,740 | 20,505,000 |
Series A Preferred | |||
OTHER INCOME/(EXPENSES): | |||
Partnership's Net Income | $ 6,750 | $ 6,750 | $ 6,750 |
Series B Preferred | |||
OTHER INCOME/(EXPENSES): | |||
Partnership's Net Income | 909 | ||
Preferred Partner | Series A Preferred | |||
OTHER INCOME/(EXPENSES): | |||
Preferred unitholders' interest in Net Income | 6,750 | 6,750 | 6,750 |
Preferred Partner | Series B Preferred | |||
OTHER INCOME/(EXPENSES): | |||
Preferred unitholders' interest in Net Income | $ 909 | $ 0 | $ 0 |
Consolidated Statements of Part
Consolidated Statements of Partners' Equity - USD ($) $ in Thousands | Total | Series A Preferred | Series B Preferred | Common | Subordinated | General Partner |
Balance at Dec. 31, 2015 | $ 367,838 | $ 73,216 | $ 0 | $ 302,954 | $ (8,427) | $ 95 |
Balance at Dec. 31, 2015 | 3,000,000 | 0 | 20,505,000 | 14,985,000 | 35,526 | |
-Net income | 66,854 | $ 6,750 | $ 34,652 | $ 25,323 | $ 129 | |
-Distributions declared and paid (common and preferred units) (Note 10) | (66,856) | (6,750) | (34,654) | (25,325) | (127) | |
Balance at Dec. 31, 2016 | 367,836 | $ 73,216 | $ 0 | $ 302,952 | $ (8,429) | $ 97 |
Balance at Dec. 31, 2016 | 3,000,000 | 0 | 20,505,000 | 14,985,000 | 35,526 | |
-Net income | 17,339 | $ 6,750 | $ 9,302 | $ 1,208 | $ 79 | |
-Conversion of subordinated units to common units (Note 10), value | $ (15,171) | $ 15,171 | ||||
-Conversion of subordinated units to common units (Note 10), shares | 14,985,000 | (14,985,000) | ||||
-Distributions declared and paid (common and preferred units) (Note 10) | (66,857) | (6,750) | $ (52,028) | $ (7,950) | (129) | |
Balance at Dec. 31, 2017 | 318,318 | $ 73,216 | $ 0 | $ 245,055 | $ 0 | $ 47 |
Balance at Dec. 31, 2017 | 3,000,000 | 0 | 35,490,000 | 0 | 35,526 | |
-Net income | 3,613 | $ 6,750 | $ 909 | $ (4,042) | $ 0 | $ (4) |
-Issuance of Series B Preferred Units, net of issuance costs (Note 10), value | 52,976 | $ 52,976 | ||||
-Issuance of Series B Preferred Units, net of issuance costs (Note 10), shares | 2,200,000 | |||||
-Distributions declared and paid (common and preferred units) (Note 10) | (48,422) | (6,750) | (41,613) | (59) | ||
Balance at Dec. 31, 2018 | $ 326,485 | $ 73,216 | $ 53,885 | $ 199,400 | $ 0 | $ (16) |
Balance at Dec. 31, 2018 | 3,000,000 | 2,200,000 | 35,490,000 | 0 | 35,526 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from Operating Activities: | |||
Net income: | $ 3,613 | $ 17,339 | $ 66,854 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 30,330 | 30,319 | 30,395 |
Amortization and write-off of deferred financing fees | 3,261 | 5,387 | 1,984 |
Deferred revenue amortization | (45) | 369 | (58) |
Amortization of deferred charges | 68 | 0 | 0 |
Amortization of fair value of acquired time charter | 5,267 | 7,247 | 7,268 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 107 | (55) | 3 |
Prepayments and other assets | 389 | (315) | (178) |
Inventories | (421) | 35 | (486) |
Due from/to related parties | 31 | (235) | (346) |
Trade accounts payable | 1,149 | 1,584 | (1,105) |
Accrued liabilities | 155 | 299 | 155 |
Deferred charges | (1,472) | 0 | 0 |
Deferred revenue | 1,445 | 0 | 0 |
Unearned revenue | (883) | (2,635) | (868) |
Net cash provided by Operating Activities | 42,994 | 59,339 | 103,618 |
Cash flows from Investing Activities: | |||
Other additions to vessels' equipment | (409) | 0 | (37,472) |
Net cash used in Investing Activities | (409) | 0 | (37,472) |
Cash flows from Financing Activities: | |||
Payment of preferred units issuance costs | 0 | 0 | (119) |
Net proceeds from issuance of preferred units | 53,138 | 0 | 0 |
Payment of securities registration and other filing costs | (48) | (145) | 0 |
Distributions declared and paid | (48,422) | (66,857) | (66,856) |
Proceeds from long-term debt | 0 | 480,000 | 66,667 |
Repayment of long-term debt | (4,800) | (474,900) | (32,500) |
Payment of deferred finance fees | 0 | (12,568) | (36) |
Net cash used in Financing Activities | (132) | (74,470) | (32,844) |
Net increase/ decrease in cash and cash equivalents and restricted cash | 42,453 | (15,131) | 33,302 |
Cash and cash equivalents and restricted cash at beginning of the year | 67,464 | 82,595 | 49,293 |
Cash and cash equivalents and restricted cash at end of the year | 109,917 | 67,464 | 82,595 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash and cash equivalents | 109,917 | 67,464 | 57,595 |
Restricted cash | 0 | 0 | 25,000 |
Cash and cash equivalents and restricted cash at end of the year | 109,917 | 67,464 | 82,595 |
Cash paid during the year for: | |||
Interest | $ 47,033 | $ 39,796 | $ 32,781 |
Partnership Formation and Gener
Partnership Formation and General Information: | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements | |
Partnership Formation and General Information: | 1. Partnership Formation and General Information: Dynagas LNG Partners LP (“Dynagas Partners” or the “Partnership”) was incorporated as a limited partnership on May 30, 2013, under the laws of the Republic of the Marshall Islands. On November 18, 2013, the Partnership successfully completed its initial public offering (the “IPO”) pursuant to which, the Partnership offered and sold 8,250,000 common units to the public at $18.00 per common unit, and in connection with the closing of the IPO, the Partnership’s Sponsor, Dynagas Holding Ltd., a company beneficially wholly owned by Mr. George Prokopiou, the Partnership’s Chairman and major unitholder and certain of his close family members, offered and sold 4,250,000 common units to the public at $18.00 per common unit. In connection with the IPO, the Partnership entered into certain agreements including: (a) an omnibus agreement with the Sponsor, as amended and as currently in effect, (the “Omnibus Agreement”), which provides the Partnership the right to purchase all or a portion of the ownership interests in certain identified liquefied natural gas (“LNG”) carrier vessels at a purchase price to be determined pursuant to the terms and conditions contained therein (Note 4(c)) and, (b) a $30 million interest free revolving credit facility with its Sponsor (the “$30 million Sponsor Facility”), which was extended on November 14, 2018 until November 2023, to be used for general Partnership purposes. The Partnership is engaged in the seaborne transportation industry through the ownership and operation of high specification LNG vessels and is the sole owner (directly or indirectly) of all outstanding shares or units of the following subsidiaries as of December 31, 2018: Vessel Owning Subsidiaries: Company Name Country of incorporation/ formation Vessel Name Delivery Date from shipyard Delivery date to Partnership Cbm Capacity Pegasus Shipholding S.A. (“Pegasus”) Marshall Islands Clean Energy March 2007 May 2013 149,700 Lance Shipping S.A. (“Lance”) Marshall Islands Ob River July 2007 May 2013 149,700 Seacrown Maritime Ltd. (“Seacrown”) Marshall Islands Amur River January 2008 May 2013 149,700 Fareastern Shipping Limited (“Fareastern”) Malta Arctic Aurora July 2013 June 2014 155,000 Navajo Marine Limited (“Navajo”) Marshall Islands Yenisei River July 2013 September 2014 155,000 Solana Holding Ltd. (“Solana”) Marshall Islands Lena River October 2013 December 2015 155,000 Non-Vessel Owning Subsidiaries: Company Name Country of incorporation /formation Purpose of incorporation Dynagas Equity Holding Limited (“Dynagas Equity”) (1) Marshall Islands Holding company that owns all of the outstanding share capital of Arctic LNG Carriers Ltd. (“Arctic LNG”). Dynagas Operating GP LLC (“Dynagas Operating GP”) Marshall Islands Limited Liability Company in which the Partnership holds a 100% membership interest and which has 100% of the Non-Economic General Partner Interest in Dynagas Operating LP. Dynagas Operating LP (“Dynagas Operating”) Marshall Islands Limited partnership in which the Partnership holds a 100% limited partnership interest and which owns 100% of the issued and outstanding share capital of Dynagas Equity. Dynagas Finance Inc. Marshall Islands Wholly owned subsidiary of the Partnership whose activities are limited to co-issuing the 2019 Notes discussed under Note 6 and engaging in other activities incidental thereto. Arctic LNG Marshall Islands Wholly owned subsidiary of the Partnership which is directly wholly owned by Dynagas Equity and which owns all of the issued and outstanding share capital of Pegasus, Lance, Seacrown, Fareastern, Navajo, Solana and Dynagas Finance LLC. Dynagas Finance LLC Delaware Wholly owned subsidiary of Arctic LNG and co-borrower of the Partnership’s $480 million senior secured term loan (“ Term Loan B”) discussed under Note 6. On December 19, 2018, Dynagas Equity was incorporated in the Republic of the Marshall Islands . On December 21, 2018, Dynagas Equity Holding Limited, the Partnership’s former subsidiary with the same name incorporated in the Republic of Liberia , merged into Dynagas Equity , with Dynagas Equity of the Republic of Marshall Islands continuing as the surviving entity . Dynagas Equity assumed all of the assets and liabilities of Dynagas Equity Holding Limited of the Republic of Liberia. Since the Partnership’s inception, the technical, administrative and commercial management of the Partnership’s fleet is performed by Dynagas Ltd. (“Dynagas” or the “Manager”), a related company, wholly owned by the Partnership’s Chairman (Note 4(a)). As of December 31, 2018, the Partnership’s Sponsor owned 44.0% of the outstanding equity interests in the Partnership (excluding the Series A Preferred Units and the Series B Preferred Units, both of which, generally, have no voting rights), including the 0.1% general partner interest retained by it, as the General Partner, through Dynagas GP LLC, which is owned and controlled by the Sponsor. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements: | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Significant Accounting Policies and Recent Accounting Pronouncements: | 2. Significant Accounting Policies and Recent Accounting Pronouncements: (a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Dynagas Partners and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Dynagas Partners, as the holding company, determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Under Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 810 “Consolidation”, a voting interest entity is an entity in which the total equity investment at risk is deemed sufficient to absorb the expected losses of the entity, the equity holders have all the characteristics of a controlling financial interest and the legal entity is structured with substantive voting rights. The holding company consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%) of the voting interest. Variable interest entities (“VIE”) are entities, as defined under ASC 810, that in general either have equity investors with non-substantive voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its activities. The holding company has a controlling financial interest in a VIE and is, therefore, the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. A VIE should have only one primary beneficiary which is required to consolidate the VIE. A VIE may not have a primary beneficiary if no party meets the criteria described above. The Partnership evaluates all arrangements that may include a variable interest in an entity to determine if it is the primary beneficiary, and would therefore be required to include assets, liabilities and operations of a VIE in its consolidated financial statements. As of the years ended December 31, 2018, 2017 and 2016, no such interests existed. (b) Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (c) Going concern: The Partnership’s policy is in accordance with ASU No. 2014-15, "Presentation of Financial Statements - Going Concern", issued in August 2014 by the FASB. ASU 2014-15 provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and on related required footnote disclosures. For each reporting period, management is required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued (Note 3). (d) Other Comprehensive Income: The Partnership follows the provisions of ASC 220, “Comprehensive Income”, which requires separate presentation of certain transactions which are recorded directly as components of equity. The Partnership has no such transactions which affect other comprehensive income and accordingly, for the years ended December 31, 2018, 2017 and 2016, comprehensive income equaled net income. (e) Foreign Currency Translation: The functional currency of the Partnership is the U.S. Dollar because the Partnership’s vessels operate in international shipping markets and therefore, the Partnership primarily transacts business in U.S. Dollars. The Partnership’s books of accounts are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of such transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars using the balance sheet date exchange rates. Resulting gains or losses are included in “Other, net” in the accompanying consolidated statements of income. (f) Cash and Cash Equivalents: The Partnership considers highly liquid investments, such as time deposits with an original maturity of three months or less, to be cash equivalents. (g) Restricted cash: Restricted cash may comprise of (i) minimum liquidity collateral requirements or minimum required cash deposits that are required to be maintained under the Partnership’s financing arrangements, (ii) cash deposits in so-called “retention accounts” which may only be used as per the Partnership’s borrowing arrangements for the purpose of serving the loan installments coming due or, (iii) other cash deposits required to be retained until other specified conditions prescribed in the Partnership’s debt agreements are met. In the event that the obligation to maintain such deposits is expected to elapse within the next operating cycle, these deposits are classified as current assets. Otherwise, they are classified as non-current assets. (h) Trade Accounts Receivable: The amount shown as trade receivables at each balance sheet date, includes accounts receivable from charterers, net of any provision for doubtful accounts. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts primarily based on the aging of such balances and any amounts in dispute. Provision for doubtful accounts as of December 31, 2018 and 2017, was nil. (i) Inventories: Inventories consist of lubricants which are stated at the lower of cost or net realizable value, following the adoption of ASU 2015-11, “Simplifying the Measurement of Inventory”. Cost is determined by the first in, first out method. Inventories may also consist of bunkers during periods when vessels are unemployed or under voyage charters and spares in warehouses, in which case, they are also stated at the lower of cost or net realizable value and cost is still determined by the first in, first out method. (j) Insurance Claims: The Partnership records insurance claim recoveries for insured losses incurred on damage to fixed assets, loss of hire and for insured crew medical expenses. Insurance claim recoveries are recorded, net of any deductible amounts, at the time when (i) the Partnership’s vessels suffer insured damages or at the time when crew medical expenses are incurred, (ii) recovery is probable under the related insurance policies, (iii) the Partnership can estimate the amount of such recovery following submission of the insurance claim and (iv) provided that the claim is not subject to litigation. (k) Vessels, Net: Vessels are stated at cost, which consists of the contract price and any material expenses incurred upon delivery (initial repairs, improvements and delivery expenses, capitalized interest and on-site supervision costs incurred during the construction periods). Subsequent expenditures for conversions and major improvements are also capitalized when such expenditures appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. The cost of each of the Partnership’s vessels is depreciated beginning from the time when the vessel is ready for her intended use, on a straight-line basis , to the time that the vessel reaches the end of its’ economic useful life, after considering the estimated residual value of the vessel. The Partnership currently uses a scrap rate estimate of $0.685 per lightweight ton per LNG carrier. Management estimates that the useful life of each of the Partnership’s vessels to be 35 years from the date of initial delivery from the shipyard. Secondhand vessels are depreciated from the date of their acquisition through their remaining estimated useful life. When regulations place limitations on the ability of a vessel to trade on a worldwide basis, such vessel’s remaining useful life is adjusted as of the date such regulations are adopted. (l) Impairment of Long-Lived Assets: The Partnership follows ASC 360-10-40 “Impairment or Disposals of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The standard requires that long-lived assets held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When the estimate of undiscounted projected operating cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the asset is evaluated for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset. The Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances, such as business plans to dispose a vessel earlier than the end of its useful life and prevailing market conditions, indicate that the carrying amount of the assets may not be recoverable. When such indications are present, the Partnership determines undiscounted projected net operating cash flows for each vessel and compares the result to the vessel’s carrying value. The fair values of the assets are determined through Level 2 inputs of the fair value hierarchy as defined in ASC 820, “Fair value measurements and disclosures” based on management’s estimates, assumptions, use of available market data, use of third party valuations and other market observable data. In developing estimates of future cash flows, the Partnership must make assumptions about future charter rates, vessel operating expenses, fleet utilization and the estimated remaining useful life of the vessels. These assumptions are based on historical trends as well as future expectations. The projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed fleet days and by estimating charter rates for the unfixed days. Expected outflows for scheduled vessel maintenance and vessel operating expenses are based on the Partnership’s budget by using historical data, which is adjusted annually with the assumption of the average annual inflation rate prevailing at the time of test. In developing the estimate for the effective fleet utilization, the Partnership takes into account the period(s) each vessel is expected to undergo her scheduled maintenance (dry-docking and special surveys) and each vessel’s loss of hire resulting from repositioning or other conditions. In developing estimates for the remaining estimated useful lives of the current fleet and scrap values, the Partnership utilizes methods which are identical to those employed as part of the Partnership’s depreciation policy. As and for each of the years ended December 31, 2018, 2017 and 2016, the Partnership incurred no impairment loss. (m) Intangible Assets/Liabilities Related to Time Charters Acquired: When and where the Partnership identifies any assets or liabilities associated with the acquisition of a vessel, the Partnership records all such identified assets or liabilities at fair value. Fair value is determined by reference to market data. In connection with the acquisition of a vessel, the Partnership determines the fair value of any asset or liability acquired based on the market value of the time charters assumed when a vessel is acquired. The amount to be recorded either as an asset or a liability at the date of vessel acquisition is determined by comparing the existing charter rate in the existing time charter agreement of the acquired vessel with the market rates for equivalent time charter agreements prevailing at the time the vessel is acquired. When the present value of the time charter assumed is greater than the current fair value of such charter, the difference is recorded as an asset. When the present value of the existing time charter assumed is less than the current fair value of such charter , the difference is recorded as liability. Assets and liabilities are amortized as adjustments to revenues over the remaining term of the assumed time charter and are classified as non-current assets or liabilities, as applicable, in the accompanying consolidated balance sheets. Impairment testing is performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. (n) Accounting for Special Survey and Dry-Docking Costs: The Partnership follows the direct expense method of accounting for dry-docking and special survey costs, in which case, such costs are expensed in the period incurred. The vessels undergo dry-dock or special survey approximately every five years during the first fifteen years of their life and, subsequently, every two and a half years to the end of their useful life. Costs relating to routine repairs and maintenance are also expensed in the period they are incurred. (o) Financing Costs: In accordance with ASU 2015-03, “Interest – Imputation of Interest”, costs associated with long-term debt, including but not limited to, fees paid to lenders, fees required to be paid to third parties on the lender’s behalf in connection with debt financing or refinancing, or any unamortized portion thereof, are presented by the Partnership as a reduction of long-term debt. Such fees are deferred and amortized to interest and finance costs during the life of the related debt instrument using the effective interest method. Unamortized fees relating to loans repaid or refinanced as debt extinguishments and loan commitment fees are expensed as interest and finance costs in the period incurred in the accompanying statements of income. Any unamortized balance of costs relating to refinanced long-term debt is deferred and amortized over the term of the credit facility in the period that such refinancing occurs, subject to the provisions of the accounting guidance with respect to “Debt – Modifications and Extinguishments”. (p) Concentration of Credit Risk: Financial instruments, which may potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts receivable. The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership places its cash and cash equivalents, consisting mostly of deposits, with high credit qualified financial institutions. The Partnership performs periodic evaluations of the relative credit standing of those financial institutions. The Partnership limits its credit risk with accounts receivable by performing ongoing credit evaluations of each of its charterer’s financial condition and generally does not require collateral for its accounts receivable. During the years ended December 31, 2018, 2017 and 2016, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows: Charterer 2018 2017 2016 A 69 % 72 % 66 % B 18 % 19 % 18 % C — — 16 % Total 87 % 91 % 100 % (q) Accounting for Revenues and Related Expenses: The Partnership generates its revenues from charterers under time charter agreements for the employment of its vessels. The Partnership’s vessels are each employed under a time charter agreement, where a contract is entered into with a charterer for the charterer’s use of a vessel for a specific period of time and at a specified daily charter hire rate. If a time charter agreement exists and collection of the related revenue is reasonably assured, revenue is recognized, as it is earned ratably over the duration of the period of the time charter. Revenues from time chartering of vessels are accounted for as operating leases. The Partnership early adopted ASC 842 as of September 30, 2018, with adoption reflected as of January 1, 2018, the beginning of the annual period in accordance with ASC 250. In particular, under the new guidance, the Partnership elected certain practical expedients, which allowed the Partnership’s existing lease arrangements, in which it was a lessor, classified as operating leases under ASC 840 to continue to be classified as operating leases under ASC 842. Leases, which commenced on or after January 1, 2018 were classified as operating leases under ASC 842. The Partnership has determined that the non-lease components in its time charter contracts relate to services for the operation of the vessel, which include crew, technical, safety, commercial services, among others. The Partnership has elected to account for the lease and non-lease component of time charter agreements as a combined component in its consolidated financial statements, having taken into account that the non-lease components would be accounted for ratably on a straight-line basis over the duration of the time charter and that the lease component is considered as the predominant component. The Partnership qualitatively assessed that more value is ascribed to the vessel rather than to the services provided under the time charter agreements. Such revenues are recognized on a straight line basis at the average minimum lease revenue over the rental periods of such charter agreements, as service is performed. . Revenue generated from variable lease payments is recognized in the period when changes in facts and circumstances on which the variable lease payments are based occur. The residual or excess amounts from actually collected hire based on the time charter agreement for each period, if any, is classified as deferred revenue in the accompanying consolidated balance sheets. Unearned revenue includes cash received prior to the balance sheet date for which all criteria to recognize as revenue have not yet been met as at the balance sheet date and, accordingly, is related to revenue earned after such date. Apart from the agreed hire rate, the owner may be entitled to an additional income, such as ballast bonus, which is considered as reimbursement of owner’s expenses and is recognized together with the lease component over the duration of the charter. The Partnership has made an accounting policy election to recognize the related ballast costs, which mainly consisting of bunkers, incurred over the period between the charter party date or the prior redelivery date (whichever is latest) and the delivery date to the charterer, as contract fulfilment costs in accordance with ASC 340-40 and amortized over the charter period Voyage expenses, primarily consist of commissions which are paid by the Partnership as well as port, canal and bunker expenses that are unique to a particular charter and which are paid by the charterer under the time charter arrangements or by the Partnership during periods of off-hire. All voyage expenses are expensed as incurred, except for commissions. Commissions paid to brokers are deferred and amortized over the related charter period to the extent revenue has been deferred since commissions are earned as the Partnership’s revenues are earned. (r) Repairs and Maintenance : All repair and maintenance expenses including underwater inspection expenses are expensed in the period incurred. Such costs are included in vessel operating expenses in the accompanying consolidated statements of income. (s) Earnings/ (Loss) Per Unit : As of December 31, 2018, the Partnership’s capital structure consisted of common units, two separate classes of preferred units, a general partner interest and incentive distribution rights. The incentive distribution rights are a separate class of non-voting interests that are currently held by the Partnership’s General Partner but, subject to certain restrictions, may be transferred or sold apart from the General Partner’s interest. The Partnership calculates basic earnings/ (loss) per each class of units by allocating period distributed and undistributed earnings/ (losses) to the General Partner, limited partners and incentive distribution rights holders using the two-class method and in accordance with the Partnership’s Fourth Amended and Restated Limited Partnership Agreement dated October 23, 2018 (the “Limited Partnership Agreement”). Basic earnings/ (losses) per common unit are computed by allocating distributed and undistributed net income/ (losses) available to common unitholders, after subtracting the interest on the Partnership’s net income/ (loss) of all classes of preferred unitholders, subordinated unitholders (up to January 23, 2017 or the “Sponsor Subordinated Units Conversion Date”, see Note 10) and the General Partner by the weighted average number of common units outstanding during the year. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution specified in the Limited Partnership Agreement. Where distributions relating to the period are in excess of earnings, the surplus is also allocated according to the cash distribution model. Diluted earnings per common unit reflect the potential dilution that could occur if securities or other contracts to issue units were exercised, if any. The Partnership had no dilutive securities outstanding during the three-year period ended December 31, 2018. (t) Segment Reporting: The Partnership operates under one reportable segment relating to its operations as it operates solely LNG vessels. The Partnership reports financial information and evaluates its operations and operating results by the type of vessel and not by the length or type of vessel employment for its customers i.e time charters. The Partnership’s management does not use discrete financial information to evaluate operating results for each type of charter. Although revenue can be identified by charter type, management cannot and does not identify expenses, profitability or other financial information in such a manner. When the Partnership charters a vessel to a charterer, the charterer is free to trade the vessel worldwide. As a result, the disclosure of geographic information is impracticable. (u) Fair Value Measurements: The Partnership follows ASC 820, “Fair Value Measurements and Disclosures”, which defines and provides guidance for the measurement of fair value. This guidance creates a fair value hierarchy of measurement and indicates that, when possible, fair value is the price that would be received in the sale of an asset or the price that would be paid in the transfer of a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable data that are not corroborated by market data (Level 3). For example, the reporting entity’s own data has a Level 3 priority because it is not or not yet observable or corroborated by market data. Observable market based inputs or unobservable inputs that are corroborated by market data are classified under Level 2 of the fair value hierarchy. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy. ASC 820 applies when assets or liabilities in the consolidated financial statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other accounting principles. (v) Commitments and Contingencies: Commitments are recognized when the Partnership has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will likely be required to satisfy such obligation and a reliable estimate of the amount of such obligation can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the present value of the expenditure expected to be required to settle the obligation. Contingent liabilities are not recognized in the consolidated financial statements but are disclosed unless there is a remote possibility of an outflow of resources embodying economic benefits. Contingent assets are not recognized in the consolidated financial statements but are disclosed when an inflow of economic benefits is probable. (w) Accounting for Financial Instruments: The principal financial assets of the Partnership consist of cash and cash equivalents, restricted cash, amounts due from related parties and trade accounts receivable. The principal financial liabilities of the Partnership consist of trade and other accounts payable, accrued liabilities, long-term debt and amounts due to related parties. The Partnership may also consider, from time to time, entering into interest rate swap agreements to manage its exposure to fluctuations of interest rate risk associated with its borrowings. Derivative financial instruments are generally used to manage risk related to fluctuations of interest rates. ASC 815, “Derivatives and Hedging”, requires all derivative contracts to be recorded at fair value, as determined in accordance with ASC 820, Fair Value Measurements and Disclosures (Note 7). The changes in fair value of a derivative contract are recognized in earnings unless specific hedging criteria are met. At the inception of a hedge relationship, the Partnership formally designates and documents the hedge relationship with respect to hedge accounting, the risk management objective and the strategy undertaken for the hedge. The documentation includes identification of the hedging instrument, hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument’s effectiveness in offsetting exposure to changes in the hedged item’s cash flows attributable to the hedged risk. A cash flow hedge is the mitigation of risk exposure resulting from variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss. Such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are assessed on an ongoing basis to determine whether they actually have been highly effective throughout the financial reporting periods for which they were designated. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in “Accumulated Other Comprehensive Income/ (Loss)” and subsequently recognized in earnings when the hedged items impact earnings. Recent Accounting Pronouncements Adopted i) ASU 2014-09 (Topic 606): On January 1, 2018, the Partnership adopted the provisions of ASU 2014-09 (Topic 606). The standard, as amended from time to time, outlines a single comprehensive model for entities to use in accounting for revenue from contracts with customers and supersedes most legacy revenue recognition guidance. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services by applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in each contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in each contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of this standard primarily changes the method of recognizing revenue for voyage charters from the discharge-to-discharge method to the loading-to-discharge method. Under the discharge-to-discharge method, revenue is recognized from the discharge of the prior voyage, or contract date of the current voyage if later, until the discharge of the current voyage. Under the load-to-discharge method, revenue is recognized from the load of a voyage until its discharge. The Partnership neither currently operates nor has historically operated any of its fleet vessels under voyage charters and therefore, the Partnership has no charter contracts which fall under the provisions of ASC 606. The Partnership’s revenue historically was and currently is derived from time charters. The Partnership elected to adopt ASC 606 by applying the modified retrospective method only to contracts that were not completed at January 1, 2018. The Partnership’s quantitative assessment of the effects of the adoption of this new guidance indicated that the financial impact of applying the new revenue recognition standard as outlined above did not have any effect to the opening retained earnings of the Partnership as of January 1, 2018 as it determined that its contracts contained a lease arrangement (Note 2 Recent Accounting Pronouncements Adopted (ii)). As a result, the comparative periods have not been restated and continue to be reported under the accounting guidance in effect for those periods . ii) ASU 2016-02: In February 2016, the FASB issued ASU No. 2016-02, “Leases (ASC 842)”, and as amended, which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. Entities are also provided with practical expedients that allow entities not to: (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases. In addition, the new standard (i) provides entities with an additional (and optional) transition method to adopt the new leases standard, under which an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests and (ii) provide lessors with a practical expedient, by class of underlying asset, in order not to separate non-lease components from the associated lease component and to instead account for those components as a single component if both of the following are met: (a) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same and (b) the lease component, if accounted for separately, would be classified as an operating lease. If the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity is required to account for the combined component in accordance with ASC 606. Otherwise, the entity should account for the combined component as an operating lease in accordance with ASC 842. iii) The Partnership elected to early adopt ASC 842 as of September 30, 2018, with such adoption being reflected as of January 1, 2018, the beginning of the annual period in accordance with ASC 250, by using the modified retrospective transition method and elected to apply to apply the additional and optional transition method to existing leases at the beginning of the period of adoption of January 1, 2018. The prior period comparative information has not been restated and continues to be reported under the accounting guidance in effect for those periods (ASC 840), including the disclosure requirements The |
Going Concern Considerations
Going Concern Considerations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements | |
Going concern considerations: | 3. Going concern considerations As of December 31, 2018, the Partnership reported cash and cash equivalents of $109.9 million and a working capital deficit of $159.8 million , resulting primarily from the upcoming maturity of the Partnership’s 2019 Notes on October 30, 2019 . Although the Partnership’s liquidity is unpredictable since it is dependent on numerous factors that are outside of the Partnership’s control, certain Partnership expenditures and revenues may be estimated. Such Partnership expenditures and revenues include (i) the scheduled repayment of principal and interest on the Partnership’s debt, (ii) the payment of distributions on the Partnership’s common and preferred units, when, as and if declared in the sole discretion of its’ Board of Directors, (iii) the payment of expected capital expenditures and working capital and (iv) the maintenance of cash reserves to satisfy the liquidity covenant contained in the 2019 Notes and (v) the Partnership revenues contracted to be earned under long-term charter agreements. The Partnership’s 2019 Notes mature on October 30, 2019, which upcoming maturity has been the primary cause of the Partnership’s working capital deficit as of December 31, 2018. The Partnership estimates that available cash and cash expected to be generated from operating activities will not be sufficient to repay the 2019 Notes when they become due on October 30, 2019 . Based on the foregoing, there is substantial doubt about the Partnership’s ability to continue as a going concern. On October 23, 2018, the Partnership concluded an underwritten public offering of 2.2 million 8.75% Series B Fixed to Floating Cumulative Redeemable Perpetual Preferred Units (the “Series B Preferred Units”) resulting in net proceeds of $53.0 million, which may be used to partially repay the 2019 Notes. In an effort to address the repayment of the remaining amount outstanding under the 2019 Notes and the working capital requirements over the next 12 months, the Partnership is exploring, on an ongoing basis, several capital raising alternatives which may include issuing, in public or private transactions, additional secured or unsecured debt, debt securities, equity securities, entering into other refinancing transactions or a combination of the foregoing. The Partnership continues to evaluate all of its refinancing options with respect to the 2019 Notes and to address the liquidity needs of the Partnership and, since the Partnership believes it will receive the additional financing it requires, the consolidated financial statements of the Partnership have been prepared assuming the Partnership will continue as a going concern. No adjustments, other than with respect to classifying the 2019 Notes under current liabilities which is in accordance with its current maturity, have been made to the Partnership’s consolidated financial statements as of December 31, 2018. |
Transactions with related parti
Transactions with related parties: | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transaction, Due from (to) Related Party | |
Transactions with related parties: | 4. Transactions with related parties: During the years ended December 31, 2018, 2017 and 2016, the Partnership incurred the following charges in connection with related party transactions, which are included in the accompanying consolidated statements of income: Years ended December 31, 2018 2017 2016 Included in voyage expenses Charter hire commissions (a) $ 1,654 $ 1,830 $ 2,212 Included in general and administrative expenses – related party Executive services fee (d) $ 637 $ 605 $ 595 Administrative services fee (e) $ 120 $ 120 $ 120 Management fees-related party Management fees (a) $ 6,347 $ 6,162 $ 5,999 As of December 31, 2018 and 2017, balances with related parties consisted of the following: Year ended December 31, 2018 2017 Assets: Working capital advances granted to the Manager (a) $ 1,086 $ 883 Security deposits to Manager (a) $ 1,350 $ 1,350 Liabilities included in Due to related party: Executive service charges due to Manager (d) $ 154 $ — Administrative service charges due to Manager (e) $ 30 $ 30 Other Partnership expenses due to Manager $ 122 $ 42 Total liabilities due to related party, current $ 306 $ 72 a) Dynagas Ltd. The Partnership’s vessels have entered into vessel management agreements with Dynagas Ltd., the Partnership’s Manager. Pursuant to the terms of these agreements (the “Management Agreements”), the Manager provides each vessel-owning entity of the Partnership with management services, including, but not limited to, commercial, technical, crew, accounting and vessel administrative services in exchange for an initial fixed daily management fee of $2.5 per vessel, for a period beginning upon vessel’s delivery until the termination of the Management Agreement. The Management Agreements initially terminate on December 31, 2020 and are thereafter, automatically extended in additional eight-year increments if notice of termination is not previously provided by the Partnership’s vessel-owning subsidiaries. Beginning on the first calendar year after the commencement of each vessel’s Management Agreement and each calendar year thereafter, these fees are adjusted upwards by 3% until expiration of each Management Agreement, subject to further annual increases to reflect material unforeseen costs of providing the management services. The amount of such increase is to be agreed between the Partnership and the Manager, which amount will be reviewed and approved by the Partnership’s Conflicts Committee. Under the terms of the Management Agreements, the Manager charges the Partnership for any additional capital expenditures, financial costs, operating expenses and general and administrative expenses that are not covered by the management fees. During the years ended December 31, 2018, 2017 and 2016, each vessel was charged a daily management fee of $2.9, $2.8 and $2.7, respectively. During the years ended December 31, 2018, 2017 and 2016, management fees under the vessel Management Agreements amounted to $6,347, $6,162 and $5,999, respectively, and are separately reflected in the accompanying consolidated statements of income. The Management Agreements also provide for: a commission of 1.25% over charter-hire agreements arranged by the Manager, and, a lump sum new-building supervision fee of $700 for the services rendered by the Manager in respect of the construction of the vessel, if applicable, plus out of pocket expenses. During the years ended December 31, 2018, 2017 and 2016, charter hire commissions under the Management Agreements amounted to $1,654, $1,830 and $2,212, respectively, and are included in Voyage expenses-related party in the accompanying consolidated statements of income. The Management Agreements will terminate automatically after a change of control of the owners and/or of the owners’ ultimate parent, in which case an amount equal to the estimated remaining fees, but in any case not less than for a period of 36 months and not more than 60 months, will become payable to the Manager. As of December 31, 2018, based on the maximum period prescribed in the Management Agreements up to the initial termination period and the basic daily fee in effect during the year ended December 31, 2018, such termination fee would be approximately $19.1 million. The Management Agreements also provide for an advance equal to three months daily management fee. In the case of termination of the Management Agreements, prior to their eight year term, by any reason other than Manager’s default, the advance is not refundable. Such advances as of December 31, 2018 and 2017, amounted to $1,350, and are separately reflected in Non-Current Assets as Due from related party in the accompanying consolidated balance sheets. In addition, the Manager makes payments for operating expenses with funds provided by the Partnership. As of December 31, 2018 and 2017, amounts of $1,086 and $883, respectively, were due from the Manager in relation to these working capital advances granted to it. (b) Loan from related party On November 18, 2013, upon the completion of its IPO, the Partnership entered into the $30 million Sponsor Facility with an original term of five years from the closing date, to be used for general Partnership purposes, including working capital. The $30 million Sponsor Facility was extended on November 14, 2018 for an additional term of five years on terms and conditions identical with the initial credit facility (the “$30 million Extended Sponsor Facility”). The $30 million Extended Sponsor Facility may be drawn and be prepaid in whole or in part at any time during the life of the facility which is until November 2023. No amounts have been drawn under the respective facility as of December 31, 2018 and 2017. (c) Optional Vessel acquisitions from Sponsor/ Omnibus Agreement At the IPO date, the Partnership and its Sponsor entered into the Omnibus Agreement, as amended and as currently in effect. The amended Omnibus Agreement sets out (i) the terms and the extent the Partnership and the Sponsor may compete with each other, (ii) the procedures to be followed for the exercise of the Partnership’s option to acquire the Initial Optional Vessels (as defined in the Omnibus Agreement), including the Partnership’s right to acquire the Sponsor’s ownership interest (which is currently 49.0%) in each of five joint venture entities, each of which owns a 172,000 cubic meter ARC 7 LNG carrier (or the “Additional Optional Vessels” and together with the Initial Optional Vessels, the “Optional Vessels”), which were all delivered between December 2017 and February 2019, (iii) certain rights of first offer to the Sponsor for the acquisition of LNG carriers from the Partnership, and, (iv) the Sponsor’s provisions of certain indemnities in favor of the Partnership. On December 21, 2015, the Partnership completed the third dropdown of the seven Initial Optional Vessels owned by its Sponsor and acquired 100% of the ownership interests in the entity that owns and operates the Lena River for an aggregate purchase price of $240.0 million (the “ Lena River Acquisition”), excluding acquisition costs. At the closing date of the Lena River Acquisition, the Sponsor provided a $35.0 million interest free credit financing to the Partnership in respect of unsettled amounts in connection with the acquisition, which have been repaid by the Partnership early in January 2016. The repayment was made from the $66.7 million remaining available funds drawn under a $200 million senior term loan facility dated December 17, 2015, the initial proceeds of which were drawn in December 2015 in order to partially finance the respective acquisition and which, since then, has been repaid in full. On February 6, 2018, the Partnership extended with retroactive effect the deadline for exercising the purchase option for the Clean Horizon and the Clean Vision , two of the four remaining Initial Optional Vessels, up to December 31, 2018. In addition, on March 30, 2018, by mutual agreement, the Partnership and its Sponsor further extended the deadline for exercising the purchase option of the Clean Ocean and the Clean Planet , the other two of the four remaining Initial Optional Vessels, from March 31, 2018 to December 31, 2018. The purchase option periods with regards to the four remaining Initial Optional Vessels have not been further extended since that date. Following the expiration of the purchase options on the four remaining Initial Optional Vessels, the Partnership still retains the legal right to exercise the option to acquire from its Sponsor its 49% ownership interest in the Additional Optional Vessels, at the period specified and as per the terms prescribed in the Omnibus Agreement. (d) Executive Services Agreement On March 21, 2014, the Partnership entered into an executive services agreement (the “Executive Services Agreement”) with its Manager with retroactive effect from the IPO closing date, pursuant to which the Manager provides the Partnership the certain services of its executive officers, who report directly to the Board of Directors. Under the Executive Services Agreement, the Manager is entitled to an executive services fee of €538 per annum (or $616 on the basis of a Euro/US Dollar exchange rate of €1.0000/$1.1455 as of December 31, 2018), payable in equal monthly installments. The Executive Services Agreement had an initial term of five years and, on November 18 2018, was automatically renewed for successive five year terms, unless terminated earlier. During the years ended December 31, 2018, 2017 and 2016, executive service fees amounted to $637, $605 and $595, respectively, and are included in general and administrative expenses in the accompanying consolidated statements of income. (e) Administrative Services Agreement On December 30, 2014 and with effect from the IPO closing date, the Partnership entered into an administrative services agreement (the “Administrative Services Agreement”) with its Manager, according to which the Partnership is provided with certain financial, accounting, reporting, secretarial and information technology services, for a monthly fee of $10, plus expenses, payable in quarterly installments. The Administrative Services Agreement can be terminated upon 120 days’ notice granted either by the Partnership’s Board of Directors or by Dynagas. During the years ended December 31, 2018, 2017 and 2016, administrative service fees amounted to $120 and are included in general and administrative expenses – related party in the accompanying consolidated statements of income. (f) Other Under certain of the Partnership’s time charter contracts with a third party charterer, if Vasora Marine Company Limited (“Vasora”), an entity unrelated to the Partnership, that has also entered into a time charter contract with the same charterer for its vessel under construction, defaults to take delivery of its vessel according to the terms of the shipbuilding contract with the shipyard, then the charterer will have the right to terminate or amend the Partnership’s time charter contracts. Vasora is beneficially owned by the managing director of Dynagas Ltd, the Partnership’s Manager. The Partnership did not have any monetary transactions with Vasora during the year ended December 31, 2018, 2017 or 2016 and did not have any receivables from or payables to the entity at December 31, 2018 and 2017. The vessel is expected to be delivered within 2019. Upon delivery of the vessel, the Partnership’s time charter contracts will no longer be affected by any potential non-compliance by Vasora. |
Vessels, net_
Vessels, net: | 12 Months Ended |
Dec. 31, 2018 | |
Vessels, Net [Abstract] | |
Vessels, net: | 5. Vessels, net: The amounts in the accompanying consolidated balance sheets are analyzed as follows: Vessel Cost Accumulated Depreciation Net Book Value Balance December 31, 2016 $ 1,167,500 $ (159,883) $ 1,007,617 —Depreciation — (30,319) (30,319) Balance December 31, 2017 $ 1,167,500 $ (190,202) $ 977,298 Other additions to vessels’ cost 409 — 409 Depreciation — (30,330) (30,330) Balance December 31, 2018 $ 1,167,909 $ (220,532) $ 947,377 As of December 31, 2018, all vessels comprising the Partnership’s fleet were first priority mortgaged as collateral to secure the Term Loan B, further discussed in Note 6. |
Long-Term Debt_
Long-Term Debt: | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure | |
Long-Term Debt: | 6. Long-Term Debt: The amounts shown in the accompanying consolidated condensed balance sheets are analyzed as follows: Year Ended Debt instruments Borrowers-Issuers December 31, 2018 December 31, 2017 $480 Million Term Loan Facility Arctic LNG and Dynagas Finance LLC 472,800 477,600 $250 Million Senior Unsecured Notes Dynagas Partners and Dynagas Finance 250,000 250,000 Total debt $ 722,800 $ 727,600 Less deferred financing fees (9,984) (13,247) Total debt, net of deferred finance costs $ 712,816 $ 714,353 Less current portion, net of deferred financing fees $ (251,754) $ (2,655) Long-term debt, net of current portion and deferred financing fees $ 461,062 $ 711,698 $480 Million Senior Secured Term Loan Facility On May 18, 2017, Arctic LNG and Dynagas Finance LLC, wholly owned subsidiaries of the Partnership, as co-borrowers, entered into a $480.0 million senior secured term loan (the “Term Loan B”). The net proceeds of the Term Loan B were used to refinance and repay in full the indebtedness outstanding under the Partnership’s existing $340 million senior secured revolving credit facility and the $200 million term loan facility and to pay transaction fees and expenses. The Term Loan B bears interest at LIBOR plus a margin and provides for a 0.25% quarterly amortization on the principal and a bullet payment at maturity in May 2023. The Term Loan B is secured by a first priority mortgages on the vessels owned by the borrower subsidiary guarantors, a first priority specific assignment of the existing time charters, a first priority assignment of all insurances and earnings of the vessels, pledges on certain deposit accounts of Arctic LNG and its vessel owning subsidiaries, among others and is guaranteed by the Partnership, certain of the Partnership’s subsidiaries and the vessel-owning subsidiaries of Arctic LNG. The Term Loan B contains cross default provisions and negative covenants customary for facilities of the type, including, but not limited to, certain limitations on indebtedness, asset sales, transactions with affiliates, restricted payments (with the ability to distribute available cash subject to no event of default and compliance with certain financial covenants) as further set forth in the provisions of the Term Loan B . $250 Million Senior Unsecured Notes due 2019 On September 15, 2014, the Partnership completed the public offering of the 2019 Notes due October 30, 2019 with the purpose of funding the majority of the purchase price related to the Yenisei River acquisition. The 2019 Notes bear interest from the date of the original issue until maturity at a rate of 6.25% per year, payable quarterly in arrears on January 30, April 30, July 30 and October 30 of each year. Pursuant to the terms of the 2019 Notes and the Indenture, the Partnership may issue, from time to time, senior unsecured debentures which may be unlimited as to principal amount, in one or more series. The 2019 Notes are unsubordinated unsecured obligations of the Partnership and are not redeemable at the option of the Partnership prior to maturity. The Term Loan B and the 2019 Notes contain financial covenants that require the Partnership to: meet a specified maximum loan to value ratio, which is the ratio of the aggregate principal amounts due under the Term Loan B to the aggregate fair value of the collateral vessels under the Term Loan B; meet a specified minimum debt service coverage ratio, the ratio of the twelve month rolling operating cash flow of Arctic LNG to the twelve month rolling debt service payments under the Term Loan B; maintain aggregate free liquidity of at least $20.0 million; meet a maximum leverage ratio expressed as a percentage of total borrowings to total book assets; and maintain a certain minimum net worth level. The financing agreements for both the Term Loan B and the 2019 Notes restrict the Partnership from declaring or making any distributions if an event of default has occurred, is occurring or would occur as a result of the distribution. The Term Loan B further restricts the Partnership from paying any dividend or other distributions unless a minimum interest coverage ratio is met on a consolidated basis. As of December 31, 2018, the Partnership was in compliance with all financial covenants prescribed in its debt agreements , including the 2019 Notes and the Term Loan B . The annual principal payments for the Partnership’s outstanding debt arrangements as at December 31, 2018, required to be made after the balance sheet date were as follows: Year ending December 31, Amount 2019 $ 254,800 2020 4,800 2021 4,800 2022 4,800 2023 453,600 Total long-term debt $ 722,800 The Partnership’s debt is denominated in U.S. dollars and, apart from the 2019 Notes that bear a fixed interest rate, the Term Loan B bears a floating interest rate. The weighted average interest rate on the Partnership’s long-term debt for the years ended December 31, 2018, 2017 and 2016, was 6.4%, 5.4% and 4.4%, respectively. Total interest incurred on long-term debt for the years ended December 31, 2018, 2017 and 2016, amounted to $46,884, $39,775 and $32,887, respectively, and is included in Interest and finance costs (Note 12) in the accompanying consolidated statements of income. Commitment fees incurred for the years ended December 31, 2018, 2017 and 2016, amounted to nil, nil and $2, respectively. Such fees are included in Interest and finance costs (Note 12) in the accompanying consolidated statements of income. |
Fair Value Measurements_
Fair Value Measurements: | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements | |
Fair Value Measurements: | 7. Fair Value Measurements: The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Cash and cash equivalents, trade accounts receivable, amounts due from/to related parties and trade accounts payable: The carrying values reported in the accompanying consolidated balance sheets for those financial instruments (except for the fair value of non-current portion of amounts due from related party) are considered Level 1 items as they represent liquid assets and liabilities with short-term maturities and are reasonable estimates of their fair values. The carrying value of these instruments is separately reflected in the accompanying consolidated balance sheets. The fair value of non-current portion of the amounts due from related parties, determined through Level 3 inputs of the fair value hierarchy by discounting future cash flows using the Partnership’s estimated cost of capital, is $1,128 as of December 31, 2018, compared to its carrying value of $1,350 as of the same date. Long-term debt: The Term Loan, B discussed in Note 6, has an approximate recorded value due to the variable interest rate payable and is thus considered a Level 2 item in accordance with the fair value hierarchy as LIBOR rates are observable at commonly quoted intervals for the full terms of the loans. The 2019 Notes have a fixed rate and their estimated fair value, determined through Level 2 inputs of the fair value hierarchy (quoted price in over-the-counter market), is approximately $237.2 million as of December 31, 2018, compared to its carrying value of $250.0 million. A fair value hierarchy that prioritizes the inputs used to measure fair value has been established by Generally Accepted Accounting Principles. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data; and Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the determination of the fair value of the assets or liabilities. |
Time charters acquired_
Time charters acquired: | 12 Months Ended |
Dec. 31, 2018 | |
Amortization of above-market acquired time charter contract to revenues | |
Time charters acquired: | 8. Time charters acquired: In December 2015, the Partnership acquired from its Sponsor the Lena River which was one of the Initial Optional Vessels (Note 4(c)). In connection with the Lena River acquisition, the Partnership paid an aggregate consideration of $240.0 million consisting of (i) the purchase price of the vessel and (ii) the fair value of the favorable time charter contract attached to the vessel. As a result, the Partnership recognized an intangible asset of $20.0 million, which represented the fair value of the time charter acquired, at the time of acquisition. During the years ended December 31, 2018, 2017 and 2016, the amortization of the above market acquired time charter related to the acquisition of the Lena River amounted to $5,267, $7,247 and 7,268 respectively, and is included in Voyage revenues in the accompanying consolidated statements of income. As of December 31, 2018 and 2017, accumulated amortization related to the time charter acquired amounted to $20,000 and $14,733, respectively. The respective intangible asset was fully amortized to revenues in the third quarter of 2018, in accordance with the expiration of the respective charter contract. The unamortized portion of the respective intangible asset as of December 31, 2017, amounting to $5,267 is presented under “Above-market acquired time charter contract” in the accompanying consolidated balance sheets. |
Commitments and Contingencies_
Commitments and Contingencies: | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies: | 9. Commitments and Contingencies: (a) Long-term leases: As discussed in Note 2, the Partnership employs its vessels under time charter contracts. Certain of its time charters provide for variable lease payments, escalating lease payments, charterers’ options to extend the lease terms, termination clauses and charterers’ options to purchase the underlying assets. The Partnership, in order to calculate future minimum contracted lease payments, has assessed all the relevant factors that create an economic incentive for the lessee to be reasonably certain to exercise lease renewal, termination or purchase options. Three of the Partnership’s time charters contain escalating lease payments and two of its time charters contain both fixed lease and variable lease payments. The variable lease payments relate to services and executory costs (the “Opex Lease Element”). The Opex Lease Element is determined on a cost pass through basis on the vessel’s actual operating expenses for each applicable year. As described in Note 2, under time charters, the vessels are employed for a specific period of time in accordance with the terms of each agreement. Normally, the charterer has the option to redeliver the vessel to the owner in a period that varies a few days more or less from the contractual termination date. For certain of its time charters, the Partnership has provided to its charterers the option to extend the lease term for additional periods under the same or different terms. The options are exercised close to the original termination dates. Specifically, under one of the Partnership’s time charters, the charterer has options to extend a three year contract, by two consecutive 12 month periods, at escalating rates and, under two of its time charters, the charterer has the option to extend the original lease term by three consecutive periods of five years, the first declared at the original termination date and each of the two remaining at or close to the termination of each option period. Certain time charters are subject to the satisfaction of important conditions, which, if not satisfied, or waived by the charterer, may result in their cancellation or amendment before or after the charter term commences and in such case the Partnership may not receive the contracted revenues thereunder. The Partnership assessed the respective termination clauses and concluded that the lease term is not affected. In addition, under certain time charters and, upon certain circumstances triggering a sanctions event, as defined therein, the charterers have the option to purchase the vessels unless the Partnership can remediate such event. As of December 31, 2018, the Partnership reported lease income (which excludes the non- cash effect of amortization of prepaid and accrued charter revenue and other non-cash adjustments, if any) of $131.4 million. The Partnership’s maturity analysis of future minimum contracted lease payments (excluding variable lease payments) under its non-cancelable long-term time charter contracts, as of December 31, 2018, gross of brokerage commissions, without taking into consideration any assumed off-hire days (including those arising out of periodical class survey requirements), is as analyzed below: Year ending December 31, Amount 2019 $ 121,333 2020 125,783 2021 114,794 2022 103,824 2023 103,824 2024 and thereafter 654,475 Total $ 1,224,033 (b) Other: Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Partnership’s vessels. Currently, management is not aware of any such claims not covered by insurance or contingent liabilities which should be disclosed or for which a provision should be established in the accompanying consolidated financial statements. The Partnership accrues for the cost of environmental liabilities when management becomes aware that a liability is probable and is then able to reasonably estimate the probable exposure. Currently, management is not aware of any such claims or contingent liabilities, which should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements. The Partnership is covered in the event of any liabilities associated with the individual vessels’ actions up to the maximum limits as provided for by the Protection and Indemnity (P&I) Clubs, members of the International Group of P&I Clubs. (c) Technical and Commercial Management Agreement: As further disclosed in Note 4, the Partnership has contracted with Dynagas Ltd. for the provision of commercial, administrative and technical management of its vessels pursuant to certain Management Agreements. For the commercial services provided under the Management Agreements, the Partnership pays a commission of 1.25% over the charter-hire revenues arranged by the Manager, which will survive the termination of the agreement until the termination of each charter party in force at such time. The estimated commission payable to the Manager over the minimum contractual charter revenues, discussed under (a) above, is $17,541. For vessel administrative and technical management fees, the Partnership paid during the year ended December 31, 2018, a daily management fee of $2.9 per vessel (Note 4(a)). Management fees for the period from January 1, 2019 to the date of the expiration of the agreements on December 31, 2020, adjusted for the 3% annual inflation in accordance with the terms of the Management Agreements , are estimated to be $13,289 and are analyzed as follows: Period/ Year ending December 31, Amount 2019 $ 6,537 2020 6,752 Total $ 13,289 |
Partners' Equity_
Partners' Equity: | 12 Months Ended |
Dec. 31, 2018 | |
Partners' Equity | |
Partners' Equity: | 10. Partners’ Equity: Series A Preferred Units: On July 20, 2015, the Partnership concluded an underwritten public offering of 3,000,000 9% Series A Preferred Units, representing limited partner interests in the Partnership, at a liquidation preference of $25.00 per unit. The Partnership received $72.3 million of proceeds from this offering, net of the $2.4 million underwriting discount of and incurred offering expenses of $0.3 million. Series B Preferred Units: On October 23, 2018, the Partnership concluded the underwritten public offering of 2,200,000 Series B Preferred Units, representing limited partner interests in the Partnership, at a liquidation preference of $25.00 per unit. The Partnership received net proceeds of $53.0 million from this offering, after deducting underwriters’ discounts and commissions and offering expenses, which amounted to $2.0 million. Conversion of Sponsor’s Subordinated Units into Common Units: On January 23, 2017 (the “Sponsor Subordinated Units Conversion Date”), upon payment by the Partnership to its common unitholders of the quarterly distribution in respect of the fourth quarter of 2016 and upon satisfaction of certain other conditions defined and set forth in the partnership agreement then in effect, the Partnership’s subordination period expired. Accordingly, the Sponsor’s 14,985,000 issued and outstanding subordinated units representing limited partner interests in the Partnership were converted into common units on a one-for-one basis (the “Sponsor Subordinated Units Conversion”). Pursuant to the terms of the limited partnership agreement then in effect, after the expiration of the subordination period, arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters no longer accrue and the subordinated units participate pro rata with other common units in distributions of available cash. No cash consideration was paid in connection with the Sponsor Subordinated Units Conversion . Concurrently with the conclusion of the Series B Preferred Units Public Offering, the Partnership entered into the Limited Partnership Agreement in order to, among others, conform its provisions to the terms and provisions related to the issuance of the Series B Preferred Units and to remove references to subordinated units and subordinated period that are no longer in effect. As of December 31, 2018, the Partnership had 35,490,000 common units, 15,595,000 of which are owned by the Sponsor, 3,000,000 Series A Preferred Units, 2,200,000 Series B Preferred Units and 35,526 general partner units issued and outstanding. Common and General Partner unit distribution provisions: After the end of the subordination period, which expired December 31, 2016, the Partnership pays distributions in the following manner: • first , 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until the distributed amount in respect of each common unit equals the minimum quarterly distribution; and • second , 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until each unit has received an aggregate distribution of a specified dollar amount. The percentage allocations of available cash from operating surplus among the common unitholders, the General Partner and the holders of the incentive distribution rights up to the various target distribution levels are illustrated below. The percentage interests shown for the common unitholders, the General Partner and the holders of the incentive distribution rights for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests shown for our General Partner include its 0.1% General Partner interest only and assumes that our General Partner has contributed any capital necessary to maintain its 0.1% General Partner interest. Under the Limited Partnership Agreement, the holder of the incentive distribution rights in the Partnership, which is currently the General Partner, has the right to receive an increasing percentage of cash distributions after the first target distribution level. Total Quarterly Distribution Target Amount Unitholders General Partner Holders of IDRs Minimum Quarterly Distribution $0.365 99.9 % 0.1 % 0.0 % First Target Distribution up to $0.420 99.9 % 0.1 % 0.0 % Second Target Distribution above $0.420 up to $0.456 85.0 % 0.1 % 14.9 % Third Target Distribution Above $0.456 up to $0.548 75.0 % 0.1 % 24.9 % Thereafter above $0.548 50.0 % 0.1 % 49.9 % On April 12, 2018, following a strategic review of the Partnership’s financial profile and distribution policy, the Partnership’s Board of Directors approved a plan to reduce the common units’ quarterly distribution from $0.4225 per common unit to $0.25 per common unit, or from $1.69 to $1.00 on an annualized basis. The cash distribution at the reduced level was first applied to the first quarter of 2018 cash distribution. As the quarterly distributions with respect to the first, second, third and fourth quarters of 2018 were below $0.365 per common unit, both the actual cash distributions made with regards to those quarters and the allocation of net income for the purposes of the earnings per common unit calculation were based on the limited partners’ and General Partner’s ownership percentage applying to the minimum quarterly distribution level, as per the above presented distribution waterfall. Preferred Units distribution and redemption provisions: Distributions on the Series A Preferred Units are cumulative from the date of original issue and are payable quarterly on February 12, May 12, August 12 and November 12, of each year, when, as and if declared by the Partnership’s Board of Directors out of amounts legally available for such purpose. Distributions are payable at a distribution rate of 9.00% per annum of the stated liquidation preference. Any time on or after August 12, 2020, the Series A Preferred Units may be redeemed, in whole or in part, at the Partnership’s option, out of amounts legally available for such purpose, at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. Distributions on the Series B Preferred Units are cumulative from the date of original issue and are payable quarterly on February 22, May 22, August 22 and November 22, of each year, when, as and if declared by the Partnership’s Board of Directors out of amounts legally available for such purpose. Furthermore, distributions on the Series B Preferred Units are payable (i) from and including the original issue date to, but excluding, November 22, 2023 at a fixed rate equal to 8.75% per annum of the stated liquidation preference per unit and (ii) from and including November 22, 2023 at a floating rate equal to three-month LIBOR plus a spread of 5.593% per annum of the stated liquidation preference per unit. At any time on or after November 22, 2023, the Series B Preferred Units may be redeemed, in whole or in part, at the Partnership’s option, out of amounts available for such purpose, at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. The Series A Preferred Units and the Series B Preferred Units represent perpetual equity interests in the Partnership, unlike the Partnership’s indebtedness, do not give rise to a claim for payment of a principal amount at a particular date. The Series A Preferred Units rank pari passu with the Series B Preferred Units. Both the Series A Preferred Units and the Senior B Preferred Units rank senior to the Partnership’s common units and to each other class or series of limited partner interests or other equity established after the original issue date of the Series A Preferred Units and the Series B Preferred Units that is not expressly made senior to or on a parity with the Series A Preferred Units and the Series B Preferred Units as to payment of distributions. The Series A Preferred Units and the Series B Preferred Units rank junior to all of the Partnership’s existing and future indebtedness. The interests of the holders of Series A Preferred Units or Series B Preferred Units could be diluted by the issuance of additional preferred units, including additional Series A Preferred units or Series B Preferred Units, and by other transactions. Common unit distributions: On January 1, 2018, the Partnership’s Board of Directors declared a quarterly cash distribution, for the fourth quarter of 2017 of $0.4225 per common and general partner unit, or $15.0 million which, on January 18, 2018, was paid to all unitholders of record as of January 11, 2018. On April 12, 2018, following Partnership’s strategic review of its financial profile and distribution policy discussed above, the Partnership’s Board of Directors unanimously approved a cash distribution on the Partnership’s common units in respect of the first quarter of 2018 $0.25 per common unit. The first quarter common unit cash distribution amounted to $8.9 million and was paid on May 3, 2018, to all common unitholders of record as of April 26, 2018. On July 2, 2018, the Partnership’s Board of Directors unanimously approved a cash distribution on the Partnership’s common units in respect of the second quarter of 2018 of $0.25 per common unit. The second quarter common unit cash distribution amounted to $8.9 million and was paid on July 19, 2018, to all common unitholders of record as of July 12, 2018. On October 9, 2018, the Partnership’s Board of Directors unanimously approved a cash distribution on the Partnership’s common units in respect of the third quarter of 2018 of $0.25 per common unit. The third quarter common unit cash distribution amounted to $8.9 million and was paid on October 26, 2018, to all common unitholders of record as of October 19, 2018. Preferred unit distributions: On January 19, 2018, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from November 12, 2017 to February 11, 2018. The cash distribution was paid on February 12, 2018, to all Series A preferred unitholders of record as of February 5, 2018. On April 19, 2018, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from February 12, 2018 to May 11, 2018. The cash distribution was paid on May 14, 2018, to all Series A preferred unitholders of record as of May 5, 2018. On July 19, 2018, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from May 12, 2018 to August 11, 2018. The cash distribution was paid on August 13, 2018, to all Series A preferred unitholders of record as of August 5, 2018. On October 19, 2018, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from August 12, 2018 to November 11, 2018. The cash distribution was paid on November 12, 2018, to all Series A preferred unitholders of record as of November 5, 2018. General Partner Distributions: During the years ended December 31, 2018, 2017 and 2016, the Partnership paid to its General Partner and holder of the incentive distribution rights in the Partnership an amount of $59, $129 and $127, respectively. |
(Loss)_ Earnings per Unit_
(Loss)/ Earnings per Unit: | 12 Months Ended |
Dec. 31, 2018 | |
(Loss)/ Earnings per Unit | |
(Loss)/ Earnings per Unit: | 11. (Loss)/ Earnings per Unit: The Partnership calculates earnings/ (loss) per unit by allocating distributed and undistributed net income/ (losses) for each period to common and general partner units, after adjusting for the effect of preferred distributions, only to the extent that they are earned. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution specified in the Limited Partnership Agreement, as generally described in Note 10 above. Where distributions relating to the period are in excess of earnings, the deficit is also allocated according to the cash distribution model. The sum of the distributed amounts and the allocation of the undistributed earnings or deficit to each class of unitholders is divided by the weighted average number of units outstanding during the period. Diluted earnings per unit, if applicable, reflects the potential dilution that could occur if potentially dilutive instruments were exercised, resulting in the issuance of additional units that would then share in the Partnership’s net earnings. The Partnership had no dilutive instruments in the years ended December 31, 2018, 2017 and 2016. The calculations of the basic and diluted earnings per common unit are presented below: Year ended December 31, 2018 2017 2016 Partnership’s Net income $ 3,613 $ 17,339 $ 66,854 Less: Net Income attributable to preferred unitholders 7,659 6,750 6,750 Net Income attributable to subordinated unitholders — 1,208 25,323 General Partner’s interest in Net Income (4) 79 129 Net income/(loss) attributable to common unitholders $ (4,042) $ 9,302 $ 34,652 Weighted average number of common units outstanding, basic and diluted 35,490,000 34,545,740 20,505,000 Earnings/ (Losses) per common unit, basic and diluted $ (0.11) $ 0.27 $ 1.69 |
Interest and Finance Costs_
Interest and Finance Costs: | 12 Months Ended |
Dec. 31, 2018 | |
Interest and Finance Costs | |
Interest and Finance Costs: | 12. Interest and Finance Costs: The amounts in the accompanying consolidated statements of income are analyzed as follows: Year ended December 31, 2018 2017 2016 Interest expense (Note 6) $ 46,884 $ 39,775 $ 32,887 Amortization and write-off of deferred financing fees 3,261 5,387 1,984 Commitment fees (Note 6) — — 2 Other 345 1,119 118 Total $ 50,490 $ 46,281 $ 34,991 |
Taxes_
Taxes: | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure | |
Taxes: | 13. Taxes: Under the laws of the countries of the Partnership and its subsidiaries’ incorporation and / or vessels’ registration, the Partnership and its subsidiaries are not subject to tax on international shipping income; however, they are subject to registration and tonnage taxes, which are included in Vessel operating expenses in the accompanying consolidated statements of income. In addition, effective January 1, 2013, each foreign flagged vessel managed in Greece by Greek or foreign ship management companies is subject to Greek tonnage tax, under the laws of the Hellenic Republic. The technical manager of the Partnership’s vessels, Dynagas Ltd., an affiliate (Note 4(a)) which is established in Greece under Greek Law 89/67 is responsible for the filing and payment of the respective tonnage tax on behalf the Partnership. These tonnage taxes for the years ended December 31, 2018, 2017 and 2016, amounted $548, $417 and $339, respectively and are included in Vessel operating expenses in the accompanying consolidated statements of income. Pursuant to the Internal Revenue Code of the United States (the “Code”), U.S. source income from the international operations of ships is generally exempt from U.S. tax if the Partnership operating the ships meets both of the following requirements: (a) the Partnership is organized in a foreign country that grants an equivalent exception to corporations organized in the United States and exempts the type of income earned by the vessel owning Partnership and (b) either (i) more than 50% of the value of the Partnership’s stock is owned, directly or indirectly, by individuals who are “residents” of the Partnership’s country of organization or of another foreign country that grants an “equivalent exemption” to corporations organized in the United States (50% Ownership Test) or (ii) the Partnership’s stock is “primarily and regularly traded on an established securities market” in its country of organization, in another country that grants an “equivalent exemption” to United States corporations, or in the United States (Publicly-Traded Test). Additionally, the Partnership must meet all of the documentation requirements as outlined in the regulations. The Partnership and each of its subsidiaries expects to qualify for this statutory tax exemption for the 2018, 2017 and 2016 taxable years, and the Partnership takes this position for United States federal income tax return reporting purposes. In the absence of an exemption under Section 883, based on its U.S. source shipping income, for 2018, 2017 and 2016, the Partnership would be subject to U.S. federal income tax of approximately nil, $123 and $51, respectively. |
Subsequent Events_
Subsequent Events: | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | |
Subsequent Events: | 14. Subsequent Events: Fourth quarter of 2018 common unit cash distribution: On January 23, 2019, the Partnership’s Board of Directors approved a plan to reduce further the common units’ quarterly distribution from $0.25 per common unit to $0.0625 per common unit, or from $1.00 to $0.25 on an annualized basis. This reduction took effect from the common unit cash distribution in respect of the fourth quarter of 2018. The fourth quarter 2018 common unit cash distribution amounted to $2.2 million and was paid on February 14, 2019, to all common unitholders of record as of February 7, 2019. Quarterly Series A Preferred unit cash distribution: On January 21, 2019, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from November 12, 2018 to February 11, 2019. The cash distribution was paid on February 12, 2019, to all Series A preferred unitholders of record as of February 5, 2019. Initial Series B Preferred unit cash distribution: On January 31, 2019, the Partnership’s Board of Directors approved an initial distribution on the Series B Preferred Units in an amount equal to $0.7231 per unit for the period from and including October 23, 2018 to, but excluding, February 22, 2019. The initial distribution on the Series B Preferred Units was paid on February 22, 2019, to all Series B Preferred unitholders of record as of February 15, 2019. First quarter of 2019 common unit cash distribution: On April 22, 2019, the Partnership’s Board of Directors declared a cash distribution on the Partnership’s common units in respect of the first quarter of 2019. The first quarter 2019 common unit cash distribution amounted to $2.2 million and is due to be paid on May 10, 2019, to all common unitholders of record as of May 3, 2019. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Principles of Consolidation: | (a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Dynagas Partners and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Dynagas Partners, as the holding company, determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Under Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 810 “Consolidation”, a voting interest entity is an entity in which the total equity investment at risk is deemed sufficient to absorb the expected losses of the entity, the equity holders have all the characteristics of a controlling financial interest and the legal entity is structured with substantive voting rights. The holding company consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%) of the voting interest. Variable interest entities (“VIE”) are entities, as defined under ASC 810, that in general either have equity investors with non-substantive voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its activities. The holding company has a controlling financial interest in a VIE and is, therefore, the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. A VIE should have only one primary beneficiary which is required to consolidate the VIE. A VIE may not have a primary beneficiary if no party meets the criteria described above. The Partnership evaluates all arrangements that may include a variable interest in an entity to determine if it is the primary beneficiary, and would therefore be required to include assets, liabilities and operations of a VIE in its consolidated financial statements. As of the years ended December 31, 2018, 2017 and 2016, no such interests existed. |
Use Of Estimates: | (b) Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Going concern: | (c) Going concern: The Partnership’s policy is in accordance with ASU No. 2014-15, "Presentation of Financial Statements - Going Concern", issued in August 2014 by the FASB. ASU 2014-15 provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and on related required footnote disclosures. For each reporting period, management is required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued (Note 3). |
Other Comprehensive Income: | (d) Other Comprehensive Income: The Partnership follows the provisions of ASC 220, “Comprehensive Income”, which requires separate presentation of certain transactions which are recorded directly as components of equity. The Partnership has no such transactions which affect other comprehensive income and accordingly, for the years ended December 31, 2018, 2017 and 2016, comprehensive income equaled net income. |
Foreign Currency Translation: | (e) Foreign Currency Translation: The functional currency of the Partnership is the U.S. Dollar because the Partnership’s vessels operate in international shipping markets and therefore, the Partnership primarily transacts business in U.S. Dollars. The Partnership’s books of accounts are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of such transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars using the balance sheet date exchange rates. Resulting gains or losses are included in “Other, net” in the accompanying consolidated statements of income. |
Cash and Cash Equivalents: | (f) Cash and Cash Equivalents: The Partnership considers highly liquid investments, such as time deposits with an original maturity of three months or less, to be cash equivalents. |
Restricted cash: | (g) Restricted cash: Restricted cash may comprise of (i) minimum liquidity collateral requirements or minimum required cash deposits that are required to be maintained under the Partnership’s financing arrangements, (ii) cash deposits in so-called “retention accounts” which may only be used as per the Partnership’s borrowing arrangements for the purpose of serving the loan installments coming due or, (iii) other cash deposits required to be retained until other specified conditions prescribed in the Partnership’s debt agreements are met. In the event that the obligation to maintain such deposits is expected to elapse within the next operating cycle, these deposits are classified as current assets. Otherwise, they are classified as non-current assets. |
Trade Accounts Receivable: | (h) Trade Accounts Receivable: The amount shown as trade receivables at each balance sheet date, includes accounts receivable from charterers, net of any provision for doubtful accounts. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts primarily based on the aging of such balances and any amounts in dispute. Provision for doubtful accounts as of December 31, 2018 and 2017, was nil. |
Inventories: | (i) Inventories: Inventories consist of lubricants which are stated at the lower of cost or net realizable value, following the adoption of ASU 2015-11, “Simplifying the Measurement of Inventory”. Cost is determined by the first in, first out method. Inventories may also consist of bunkers during periods when vessels are unemployed or under voyage charters and spares in warehouses, in which case, they are also stated at the lower of cost or net realizable value and cost is still determined by the first in, first out method. |
Insurance Claims: | (j) Insurance Claims: The Partnership records insurance claim recoveries for insured losses incurred on damage to fixed assets, loss of hire and for insured crew medical expenses. Insurance claim recoveries are recorded, net of any deductible amounts, at the time when (i) the Partnership’s vessels suffer insured damages or at the time when crew medical expenses are incurred, (ii) recovery is probable under the related insurance policies, (iii) the Partnership can estimate the amount of such recovery following submission of the insurance claim and (iv) provided that the claim is not subject to litigation. |
Vessels, Net: | (k) Vessels, Net: Vessels are stated at cost, which consists of the contract price and any material expenses incurred upon delivery (initial repairs, improvements and delivery expenses, capitalized interest and on-site supervision costs incurred during the construction periods). Subsequent expenditures for conversions and major improvements are also capitalized when such expenditures appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. The cost of each of the Partnership’s vessels is depreciated beginning from the time when the vessel is ready for her intended use, on a straight-line basis , to the time that the vessel reaches the end of its’ economic useful life, after considering the estimated residual value of the vessel. The Partnership currently uses a scrap rate estimate of $0.685 per lightweight ton per LNG carrier. Management estimates that the useful life of each of the Partnership’s vessels to be 35 years from the date of initial delivery from the shipyard. Secondhand vessels are depreciated from the date of their acquisition through their remaining estimated useful life. When regulations place limitations on the ability of a vessel to trade on a worldwide basis, such vessel’s remaining useful life is adjusted as of the date such regulations are adopted. |
Impairment of Long-Lived Assets: | (l) Impairment of Long-Lived Assets: The Partnership follows ASC 360-10-40 “Impairment or Disposals of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The standard requires that long-lived assets held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When the estimate of undiscounted projected operating cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the asset is evaluated for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset. The Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances, such as business plans to dispose a vessel earlier than the end of its useful life and prevailing market conditions, indicate that the carrying amount of the assets may not be recoverable. When such indications are present, the Partnership determines undiscounted projected net operating cash flows for each vessel and compares the result to the vessel’s carrying value. The fair values of the assets are determined through Level 2 inputs of the fair value hierarchy as defined in ASC 820, “Fair value measurements and disclosures” based on management’s estimates, assumptions, use of available market data, use of third party valuations and other market observable data. In developing estimates of future cash flows, the Partnership must make assumptions about future charter rates, vessel operating expenses, fleet utilization and the estimated remaining useful life of the vessels. These assumptions are based on historical trends as well as future expectations. The projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed fleet days and by estimating charter rates for the unfixed days. Expected outflows for scheduled vessel maintenance and vessel operating expenses are based on the Partnership’s budget by using historical data, which is adjusted annually with the assumption of the average annual inflation rate prevailing at the time of test. In developing the estimate for the effective fleet utilization, the Partnership takes into account the period(s) each vessel is expected to undergo her scheduled maintenance (dry-docking and special surveys) and each vessel’s loss of hire resulting from repositioning or other conditions. In developing estimates for the remaining estimated useful lives of the current fleet and scrap values, the Partnership utilizes methods which are identical to those employed as part of the Partnership’s depreciation policy. As and for each of the years ended December 31, 2018, 2017 and 2016, the Partnership incurred no impairment loss. |
Intangible Assets/Liabilities Related to Time Charters Acquired: | (m) Intangible Assets/Liabilities Related to Time Charters Acquired: When and where the Partnership identifies any assets or liabilities associated with the acquisition of a vessel, the Partnership records all such identified assets or liabilities at fair value. Fair value is determined by reference to market data. In connection with the acquisition of a vessel, the Partnership determines the fair value of any asset or liability acquired based on the market value of the time charters assumed when a vessel is acquired. The amount to be recorded either as an asset or a liability at the date of vessel acquisition is determined by comparing the existing charter rate in the existing time charter agreement of the acquired vessel with the market rates for equivalent time charter agreements prevailing at the time the vessel is acquired. When the present value of the time charter assumed is greater than the current fair value of such charter, the difference is recorded as an asset. When the present value of the existing time charter assumed is less than the current fair value of such charter , the difference is recorded as liability. Assets and liabilities are amortized as adjustments to revenues over the remaining term of the assumed time charter and are classified as non-current assets or liabilities, as applicable, in the accompanying consolidated balance sheets. Impairment testing is performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. |
Accounting for Special Survey and Dry-Docking Costs: | (n) Accounting for Special Survey and Dry-Docking Costs: The Partnership follows the direct expense method of accounting for dry-docking and special survey costs, in which case, such costs are expensed in the period incurred. The vessels undergo dry-dock or special survey approximately every five years during the first fifteen years of their life and, subsequently, every two and a half years to the end of their useful life. Costs relating to routine repairs and maintenance are also expensed in the period they are incurred. |
Financing Costs: | (o) Financing Costs: In accordance with ASU 2015-03, “Interest – Imputation of Interest”, costs associated with long-term debt, including but not limited to, fees paid to lenders, fees required to be paid to third parties on the lender’s behalf in connection with debt financing or refinancing, or any unamortized portion thereof, are presented by the Partnership as a reduction of long-term debt. Such fees are deferred and amortized to interest and finance costs during the life of the related debt instrument using the effective interest method. Unamortized fees relating to loans repaid or refinanced as debt extinguishments and loan commitment fees are expensed as interest and finance costs in the period incurred in the accompanying statements of income. Any unamortized balance of costs relating to refinanced long-term debt is deferred and amortized over the term of the credit facility in the period that such refinancing occurs, subject to the provisions of the accounting guidance with respect to “Debt – Modifications and Extinguishments”. |
Concentration of Credit Risk: | (p) Concentration of Credit Risk: Financial instruments, which may potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts receivable. The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership places its cash and cash equivalents, consisting mostly of deposits, with high credit qualified financial institutions. The Partnership performs periodic evaluations of the relative credit standing of those financial institutions. The Partnership limits its credit risk with accounts receivable by performing ongoing credit evaluations of each of its charterer’s financial condition and generally does not require collateral for its accounts receivable. During the years ended December 31, 2018, 2017 and 2016, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows: Charterer 2018 2017 2016 A 69 % 72 % 66 % B 18 % 19 % 18 % C — — 16 % Total 87 % 91 % 100 % |
Accounting for Revenues and Related Expenses: | (q) Accounting for Revenues and Related Expenses: The Partnership generates its revenues from charterers under time charter agreements for the employment of its vessels. The Partnership’s vessels are each employed under a time charter agreement, where a contract is entered into with a charterer for the charterer’s use of a vessel for a specific period of time and at a specified daily charter hire rate. If a time charter agreement exists and collection of the related revenue is reasonably assured, revenue is recognized, as it is earned ratably over the duration of the period of the time charter. Revenues from time chartering of vessels are accounted for as operating leases. The Partnership early adopted ASC 842 as of September 30, 2018, with adoption reflected as of January 1, 2018, the beginning of the annual period in accordance with ASC 250. In particular, under the new guidance, the Partnership elected certain practical expedients, which allowed the Partnership’s existing lease arrangements, in which it was a lessor, classified as operating leases under ASC 840 to continue to be classified as operating leases under ASC 842. Leases, which commenced on or after January 1, 2018 were classified as operating leases under ASC 842. The Partnership has determined that the non-lease components in its time charter contracts relate to services for the operation of the vessel, which include crew, technical, safety, commercial services, among others. The Partnership has elected to account for the lease and non-lease component of time charter agreements as a combined component in its consolidated financial statements, having taken into account that the non-lease components would be accounted for ratably on a straight-line basis over the duration of the time charter and that the lease component is considered as the predominant component. The Partnership qualitatively assessed that more value is ascribed to the vessel rather than to the services provided under the time charter agreements. Such revenues are recognized on a straight line basis at the average minimum lease revenue over the rental periods of such charter agreements, as service is performed. . Revenue generated from variable lease payments is recognized in the period when changes in facts and circumstances on which the variable lease payments are based occur. The residual or excess amounts from actually collected hire based on the time charter agreement for each period, if any, is classified as deferred revenue in the accompanying consolidated balance sheets. Unearned revenue includes cash received prior to the balance sheet date for which all criteria to recognize as revenue have not yet been met as at the balance sheet date and, accordingly, is related to revenue earned after such date. Apart from the agreed hire rate, the owner may be entitled to an additional income, such as ballast bonus, which is considered as reimbursement of owner’s expenses and is recognized together with the lease component over the duration of the charter. The Partnership has made an accounting policy election to recognize the related ballast costs, which mainly consisting of bunkers, incurred over the period between the charter party date or the prior redelivery date (whichever is latest) and the delivery date to the charterer, as contract fulfilment costs in accordance with ASC 340-40 and amortized over the charter period Voyage expenses, primarily consist of commissions which are paid by the Partnership as well as port, canal and bunker expenses that are unique to a particular charter and which are paid by the charterer under the time charter arrangements or by the Partnership during periods of off-hire. All voyage expenses are expensed as incurred, except for commissions. Commissions paid to brokers are deferred and amortized over the related charter period to the extent revenue has been deferred since commissions are earned as the Partnership’s revenues are earned. |
Repairs and Maintenance: | (r) Repairs and Maintenance : All repair and maintenance expenses including underwater inspection expenses are expensed in the period incurred. Such costs are included in vessel operating expenses in the accompanying consolidated statements of income. |
Earnings/ (Loss) Per Unit: | (s) Earnings/ (Loss) Per Unit : As of December 31, 2018, the Partnership’s capital structure consisted of common units, two separate classes of preferred units, a general partner interest and incentive distribution rights. The incentive distribution rights are a separate class of non-voting interests that are currently held by the Partnership’s General Partner but, subject to certain restrictions, may be transferred or sold apart from the General Partner’s interest. The Partnership calculates basic earnings/ (loss) per each class of units by allocating period distributed and undistributed earnings/ (losses) to the General Partner, limited partners and incentive distribution rights holders using the two-class method and in accordance with the Partnership’s Fourth Amended and Restated Limited Partnership Agreement dated October 23, 2018 (the “Limited Partnership Agreement”). Basic earnings/ (losses) per common unit are computed by allocating distributed and undistributed net income/ (losses) available to common unitholders, after subtracting the interest on the Partnership’s net income/ (loss) of all classes of preferred unitholders, subordinated unitholders (up to January 23, 2017 or the “Sponsor Subordinated Units Conversion Date”, see Note 10) and the General Partner by the weighted average number of common units outstanding during the year. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution specified in the Limited Partnership Agreement. Where distributions relating to the period are in excess of earnings, the surplus is also allocated according to the cash distribution model. Diluted earnings per common unit reflect the potential dilution that could occur if securities or other contracts to issue units were exercised, if any. The Partnership had no dilutive securities outstanding during the three-year period ended December 31, 2018. |
Segment Reporting: | (t) Segment Reporting: The Partnership operates under one reportable segment relating to its operations as it operates solely LNG vessels. The Partnership reports financial information and evaluates its operations and operating results by the type of vessel and not by the length or type of vessel employment for its customers i.e time charters. The Partnership’s management does not use discrete financial information to evaluate operating results for each type of charter. Although revenue can be identified by charter type, management cannot and does not identify expenses, profitability or other financial information in such a manner. When the Partnership charters a vessel to a charterer, the charterer is free to trade the vessel worldwide. As a result, the disclosure of geographic information is impracticable. |
Fair Value Measurements: | (u) Fair Value Measurements: The Partnership follows ASC 820, “Fair Value Measurements and Disclosures”, which defines and provides guidance for the measurement of fair value. This guidance creates a fair value hierarchy of measurement and indicates that, when possible, fair value is the price that would be received in the sale of an asset or the price that would be paid in the transfer of a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable data that are not corroborated by market data (Level 3). For example, the reporting entity’s own data has a Level 3 priority because it is not or not yet observable or corroborated by market data. Observable market based inputs or unobservable inputs that are corroborated by market data are classified under Level 2 of the fair value hierarchy. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy. ASC 820 applies when assets or liabilities in the consolidated financial statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other accounting principles. |
Commitments and Contingencies: | (v) Commitments and Contingencies: Commitments are recognized when the Partnership has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will likely be required to satisfy such obligation and a reliable estimate of the amount of such obligation can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the present value of the expenditure expected to be required to settle the obligation. Contingent liabilities are not recognized in the consolidated financial statements but are disclosed unless there is a remote possibility of an outflow of resources embodying economic benefits. Contingent assets are not recognized in the consolidated financial statements but are disclosed when an inflow of economic benefits is probable. |
Accounting for Financial Instruments: | (w) Accounting for Financial Instruments: The principal financial assets of the Partnership consist of cash and cash equivalents, restricted cash, amounts due from related parties and trade accounts receivable. The principal financial liabilities of the Partnership consist of trade and other accounts payable, accrued liabilities, long-term debt and amounts due to related parties. The Partnership may also consider, from time to time, entering into interest rate swap agreements to manage its exposure to fluctuations of interest rate risk associated with its borrowings. Derivative financial instruments are generally used to manage risk related to fluctuations of interest rates. ASC 815, “Derivatives and Hedging”, requires all derivative contracts to be recorded at fair value, as determined in accordance with ASC 820, Fair Value Measurements and Disclosures (Note 7). The changes in fair value of a derivative contract are recognized in earnings unless specific hedging criteria are met. At the inception of a hedge relationship, the Partnership formally designates and documents the hedge relationship with respect to hedge accounting, the risk management objective and the strategy undertaken for the hedge. The documentation includes identification of the hedging instrument, hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument’s effectiveness in offsetting exposure to changes in the hedged item’s cash flows attributable to the hedged risk. A cash flow hedge is the mitigation of risk exposure resulting from variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss. Such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are assessed on an ongoing basis to determine whether they actually have been highly effective throughout the financial reporting periods for which they were designated. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in “Accumulated Other Comprehensive Income/ (Loss)” and subsequently recognized in earnings when the hedged items impact earnings. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted i) ASU 2014-09 (Topic 606): On January 1, 2018, the Partnership adopted the provisions of ASU 2014-09 (Topic 606). The standard, as amended from time to time, outlines a single comprehensive model for entities to use in accounting for revenue from contracts with customers and supersedes most legacy revenue recognition guidance. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services by applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in each contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in each contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of this standard primarily changes the method of recognizing revenue for voyage charters from the discharge-to-discharge method to the loading-to-discharge method. Under the discharge-to-discharge method, revenue is recognized from the discharge of the prior voyage, or contract date of the current voyage if later, until the discharge of the current voyage. Under the load-to-discharge method, revenue is recognized from the load of a voyage until its discharge. The Partnership neither currently operates nor has historically operated any of its fleet vessels under voyage charters and therefore, the Partnership has no charter contracts which fall under the provisions of ASC 606. The Partnership’s revenue historically was and currently is derived from time charters. The Partnership elected to adopt ASC 606 by applying the modified retrospective method only to contracts that were not completed at January 1, 2018. The Partnership’s quantitative assessment of the effects of the adoption of this new guidance indicated that the financial impact of applying the new revenue recognition standard as outlined above did not have any effect to the opening retained earnings of the Partnership as of January 1, 2018 as it determined that its contracts contained a lease arrangement (Note 2 Recent Accounting Pronouncements Adopted (ii)). As a result, the comparative periods have not been restated and continue to be reported under the accounting guidance in effect for those periods . ii) ASU 2016-02: In February 2016, the FASB issued ASU No. 2016-02, “Leases (ASC 842)”, and as amended, which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. Entities are also provided with practical expedients that allow entities not to: (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases. In addition, the new standard (i) provides entities with an additional (and optional) transition method to adopt the new leases standard, under which an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests and (ii) provide lessors with a practical expedient, by class of underlying asset, in order not to separate non-lease components from the associated lease component and to instead account for those components as a single component if both of the following are met: (a) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same and (b) the lease component, if accounted for separately, would be classified as an operating lease. If the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity is required to account for the combined component in accordance with ASC 606. Otherwise, the entity should account for the combined component as an operating lease in accordance with ASC 842. iii) The Partnership elected to early adopt ASC 842 as of September 30, 2018, with such adoption being reflected as of January 1, 2018, the beginning of the annual period in accordance with ASC 250, by using the modified retrospective transition method and elected to apply to apply the additional and optional transition method to existing leases at the beginning of the period of adoption of January 1, 2018. The prior period comparative information has not been restated and continues to be reported under the accounting guidance in effect for those periods (ASC 840), including the disclosure requirements The Partnership qualified for all and elected to apply all the practical expedients discussed above. The Partnership further evaluated that the predominant component in its time charter agreements is the lease component. In this respect, the Partnership made an accounting policy election to account for both the lease and non-lease components in its lease contracts as an operating lease in accordance with the provisions of ASC 842. The early adoption of ASC 842 had no material effect on the Partnership’s consolidated financial position and results of operations for the year ended December 31, 2018. Per ASC 842, initial indirect costs, which are indirect costs of a lease that would not have been incurred if the lease had not been obtained are not material. Costs for positioning the vessel (ballast leg) to the delivery port are considered as costs to prepare the vessel for its intended use after lease inception, but prior to lease commencement, and the Partnership has made an accounting policy election to analogize to the guidance on contract fulfillment costs per ASC 340-40. As of December 31, 2018, deferred ballast costs and related ballast income amounted to $1.1 million and $1.4 million, and are included under Deferred charges and Deferred revenue, respectively, in the accompanying consolidated balance sheet. Amortization expense related to deferred ballast costs for the year ended December 31, 2018 amounted to $0.1 million and is included under Voyage expenses in the accompanying consolidated statement of income. Amortization of deferred ballast income for the year ended December 31, 2018 amounted to $0.1 million and is included under Voyage revenues in the accompanying consolidated statement of income. iv) ASU 2016-01, “Financial Instruments- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” as updated by ASU 2018-03 “Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10)”. The amendments in this update affect all entities that hold financial assets or owe financial liabilities and address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This new standard was adopted on January 1, 2018 and had no impact on the Partnership’s consolidated financial statements and note disclosures. v) ASU No. 2016-15, “Statement of Cash Flows Classification of Certain Cash Receipts”. This update addresses eight specific cash flow issues and provides specific guidance in how certain cash receipts and cash payments should be presented and classified in the statement of cash flows under Topic 230 with the objective of reducing the current and potential future diversity in practice. ASU No. 2016-15 was adopted as of January 1, 2018 and its adoption did not result in any changes in the classification of cash receipts and cash payments in the Partnership’s reported consolidated statements of cash flows. ASU No. 2016-18, “Statement of Cash Flows – Restricted Cash”. The amendments in this update require that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Partnership early adopted ASU No. 2016-18 as of April 1, 2018. The amendments in this update should be applied using a retrospective transition method to each period presented. As a result, an amount of $25,000 of non-current restricted cash has been aggregated with the $57,595 and the $24,293 cash and cash equivalents in the beginning of period line items on the comparative consolidated statements of cash flows for the years ended December 31, 2017 and 2016, respectively. vi) ASU 2017-01 , “ Business Combinations, Clarifying the Definition of a business”. The amendments in this update were issued in order to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisition (or disposals) of assets or businesses. This ASU provides a screen to determine when a set of assets and activities does not constitute a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similarly identifiable assets, the set is not a business. The implementation of this update as of January 1, 2018, had no impact on the Partnership’s consolidated financial statements. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted i) ASU 2016-13: In June 2016, the FASB issued ASU 2016-13- Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For public entities, the amendments of this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application is permitted. Management is in the process of assessing the impact of the amendment of this Update on the Partnership's consolidated financial position and performance. ii) ASU No. 2018-13: In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement”, which changes the disclosure requirements for fair value measurements by removing, adding, and modifying certain disclosures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that year. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. Management is currently evaluating the impact of this adoption on its consolidated financial statements and related disclosures. |
Partnership Formation and Gen_2
Partnership Formation and General Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements | |
Vessel Owning Subsidiaries | Vessel Owning Subsidiaries: Company Name Country of incorporation/ formation Vessel Name Delivery Date from shipyard Delivery date to Partnership Cbm Capacity Pegasus Shipholding S.A. (“Pegasus”) Marshall Islands Clean Energy March 2007 May 2013 149,700 Lance Shipping S.A. (“Lance”) Marshall Islands Ob River July 2007 May 2013 149,700 Seacrown Maritime Ltd. (“Seacrown”) Marshall Islands Amur River January 2008 May 2013 149,700 Fareastern Shipping Limited (“Fareastern”) Malta Arctic Aurora July 2013 June 2014 155,000 Navajo Marine Limited (“Navajo”) Marshall Islands Yenisei River July 2013 September 2014 155,000 Solana Holding Ltd. (“Solana”) Marshall Islands Lena River October 2013 December 2015 155,000 |
Non-Vessel Owning Subsidiaries | Non-Vessel Owning Subsidiaries: Company Name Country of incorporation /formation Purpose of incorporation Dynagas Equity Holding Limited (“Dynagas Equity”) (1) Marshall Islands Holding company that owns all of the outstanding share capital of Arctic LNG Carriers Ltd. (“Arctic LNG”). Dynagas Operating GP LLC (“Dynagas Operating GP”) Marshall Islands Limited Liability Company in which the Partnership holds a 100% membership interest and which has 100% of the Non-Economic General Partner Interest in Dynagas Operating LP. Dynagas Operating LP (“Dynagas Operating”) Marshall Islands Limited partnership in which the Partnership holds a 100% limited partnership interest and which owns 100% of the issued and outstanding share capital of Dynagas Equity. Dynagas Finance Inc. Marshall Islands Wholly owned subsidiary of the Partnership whose activities are limited to co-issuing the 2019 Notes discussed under Note 6 and engaging in other activities incidental thereto. Arctic LNG Marshall Islands Wholly owned subsidiary of the Partnership which is directly wholly owned by Dynagas Equity and which owns all of the issued and outstanding share capital of Pegasus, Lance, Seacrown, Fareastern, Navajo, Solana and Dynagas Finance LLC. Dynagas Finance LLC Delaware Wholly owned subsidiary of Arctic LNG and co-borrower of the Partnership’s $480 million senior secured term loan (“ Term Loan B”) discussed under Note 6. On December 19, 2018, Dynagas Equity was incorporated in the Republic of the Marshall Islands . On December 21, 2018, Dynagas Equity Holding Limited, the Partnership’s former subsidiary with the same name incorporated in the Republic of Liberia , merged into Dynagas Equity , with Dynagas Equity of the Republic of Marshall Islands continuing as the surviving entity . Dynagas Equity assumed all of the assets and liabilities of Dynagas Equity Holding Limited of the Republic of Liberia. |
Significant Accounting Polici_3
Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Major Charterers | Charterer 2018 2017 2016 A 69 % 72 % 66 % B 18 % 19 % 18 % C — — 16 % Total 87 % 91 % 100 % |
Transactions with related par_2
Transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transaction, Due from (to) Related Party | |
Related parties transactions | Years ended December 31, 2018 2017 2016 Included in voyage expenses Charter hire commissions (a) $ 1,654 $ 1,830 $ 2,212 Included in general and administrative expenses – related party Executive services fee (d) $ 637 $ 605 $ 595 Administrative services fee (e) $ 120 $ 120 $ 120 Management fees-related party Management fees (a) $ 6,347 $ 6,162 $ 5,999 |
Related parties balances | Year ended December 31, 2018 2017 Assets: Working capital advances granted to the Manager (a) $ 1,086 $ 883 Security deposits to Manager (a) $ 1,350 $ 1,350 Liabilities included in Due to related party: Executive service charges due to Manager (d) $ 154 $ — Administrative service charges due to Manager (e) $ 30 $ 30 Other Partnership expenses due to Manager $ 122 $ 42 Total liabilities due to related party, current $ 306 $ 72 |
Vessels, net (Tables)
Vessels, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant and Equipment Net | |
Vessels Table | Vessel Cost Accumulated Depreciation Net Book Value Balance December 31, 2016 $ 1,167,500 $ (159,883) $ 1,007,617 —Depreciation — (30,319) (30,319) Balance December 31, 2017 $ 1,167,500 $ (190,202) $ 977,298 Other additions to vessels’ cost 409 — 409 Depreciation — (30,330) (30,330) Balance December 31, 2018 $ 1,167,909 $ (220,532) $ 947,377 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure | |
Loans And Credit Facilities Amounts Outstanding | Year Ended Debt instruments Borrowers-Issuers December 31, 2018 December 31, 2017 $480 Million Term Loan Facility Arctic LNG and Dynagas Finance LLC 472,800 477,600 $250 Million Senior Unsecured Notes Dynagas Partners and Dynagas Finance 250,000 250,000 Total debt $ 722,800 $ 727,600 Less deferred financing fees (9,984) (13,247) Total debt, net of deferred finance costs $ 712,816 $ 714,353 Less current portion, net of deferred financing fees $ (251,754) $ (2,655) Long-term debt, net of current portion and deferred financing fees $ 461,062 $ 711,698 |
Minimum Annual Principal Payments | Year ending December 31, Amount 2019 $ 254,800 2020 4,800 2021 4,800 2022 4,800 2023 453,600 Total long-term debt $ 722,800 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure | |
Minimum Future Charter Revenues | Year ending December 31, Amount 2019 $ 121,333 2020 125,783 2021 114,794 2022 103,824 2023 103,824 2024 and thereafter 654,475 Total $ 1,224,033 |
Management Fees | Period/ Year ending December 31, Amount 2019 $ 6,537 2020 6,752 Total $ 13,289 |
Partners' Equity (Tables)
Partners' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Partners' Equity | |
Percentage allocations of available cash from operating surplus amongst the unit holders | Total Quarterly Distribution Target Amount Unitholders General Partner Holders of IDRs Minimum Quarterly Distribution $0.365 99.9 % 0.1 % 0.0 % First Target Distribution up to $0.420 99.9 % 0.1 % 0.0 % Second Target Distribution above $0.420 up to $0.456 85.0 % 0.1 % 14.9 % Third Target Distribution Above $0.456 up to $0.548 75.0 % 0.1 % 24.9 % Thereafter above $0.548 50.0 % 0.1 % 49.9 % |
(Loss)_ Earnings per Unit (Tabl
(Loss)/ Earnings per Unit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
(Loss)/ Earnings per Unit | |
Basic and Diluted (Loss)/ Earnings per Unit | Year ended December 31, 2018 2017 2016 Partnership’s Net income $ 3,613 $ 17,339 $ 66,854 Less: Net Income attributable to preferred unitholders 7,659 6,750 6,750 Net Income attributable to subordinated unitholders — 1,208 25,323 General Partner’s interest in Net Income (4) 79 129 Net income/(loss) attributable to common unitholders $ (4,042) $ 9,302 $ 34,652 Weighted average number of common units outstanding, basic and diluted 35,490,000 34,545,740 20,505,000 Earnings/ (Losses) per common unit, basic and diluted $ (0.11) $ 0.27 $ 1.69 |
Interest and Finance Costs (Tab
Interest and Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest and Finance Costs | |
Interest and Finance Costs | Year ended December 31, 2018 2017 2016 Interest expense (Note 6) $ 46,884 $ 39,775 $ 32,887 Amortization and write-off of deferred financing fees 3,261 5,387 1,984 Commitment fees (Note 6) — — 2 Other 345 1,119 118 Total $ 50,490 $ 46,281 $ 34,991 |
Partnership Formation and Gen_3
Partnership Formation and General Information - Vessel Owning Subsidiaries (Table) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Clean Energy | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | March 2007 |
Delivery date to partnership | May 2013 |
Cbm Capacity | 149,700 |
Ob River | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | July 2007 |
Delivery date to partnership | May 2013 |
Cbm Capacity | 149,700 |
Amur River | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | January 2008 |
Delivery date to partnership | May 2013 |
Cbm Capacity | 149,700 |
Arctic Aurora | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | July 2013 |
Delivery date to partnership | June 2014 |
Cbm Capacity | 155,000 |
Yenisei River | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | July 2013 |
Delivery date to partnership | September 2014 |
Cbm Capacity | 155,000 |
Lena River | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | October 2013 |
Delivery date to partnership | December 2015 |
Cbm Capacity | 155,000 |
Partnership Formation and Gen_4
Partnership Formation and General Information - Non-Vessel Owning Subsidiaries (Table) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Dynagas Operating GP LLC. | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Ownership interest in subsidiary | 100.00% |
Dynagas Operating LP. | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Ownership interest in subsidiary | 100.00% |
Partnership Formation and Gen_5
Partnership Formation and General Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 11 Months Ended | 12 Months Ended |
Nov. 18, 2013 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Date of incorporation | May 30, 2013 | |
IPO | ||
Related Party Transaction [Line Items] | ||
Date of initial public offering (IPO) | Nov. 18, 2013 | |
Common | IPO | ||
Related Party Transaction [Line Items] | ||
Limited Partners Capital Account Units Offered | 8,250,000 | |
Shares Issued, Price Per Share | $ 18 | |
Dynagas Holding Ltd | ||
Related Party Transaction [Line Items] | ||
Ownership percentage | 44.00% | |
Dynagas Holding Ltd | General Partner | ||
Related Party Transaction [Line Items] | ||
General Partner Interest in Dynagas LNG Partners LP | 0.10% | |
Dynagas Holding Ltd | Common | IPO | ||
Related Party Transaction [Line Items] | ||
Limited Partners Capital Account Units Offered | 4,250,000 | |
Shares Issued, Price Per Share | $ 18 | |
Dynagas Holding Ltd | $30 million Sponsor Facility | ||
Related Party Transaction [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 30,000 | |
Line of credit facility, expiration date | Nov. 30, 2023 | |
Dynagas Equity Holding Ltd. | ||
Related Party Transaction [Line Items] | ||
Date of incorporation | Dec. 19, 2018 | |
Dynagas Finance LLC | ||
Related Party Transaction [Line Items] | ||
Senior secured term loan "Term Loan B" | $ 480,000 |
Significant Accounting Polici_4
Significant Accounting Policies and Recent Accounting Pronouncements - Major Charterers (Table) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Entity Wide Revenue Major Customer | |||
Concentration risk benchmark description | During the years ended December 31, 2018 and 2017, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows | ||
Percentage of time charter revenue | 87.00% | 91.00% | 100.00% |
Sales Revenue, Net | |||
Entity Wide Revenue Major Customer | |||
Percentage of time charter revenue | 10.00% | ||
Charterer A | |||
Entity Wide Revenue Major Customer | |||
Percentage of time charter revenue | 69.00% | 72.00% | 66.00% |
Charterer B | |||
Entity Wide Revenue Major Customer | |||
Percentage of time charter revenue | 18.00% | 19.00% | 18.00% |
Charterer C | |||
Entity Wide Revenue Major Customer | |||
Percentage of time charter revenue | 0.00% | 0.00% | 16.00% |
Significant Accounting Polici_5
Significant Accounting Policies and Recent Accounting Pronouncements (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | |
Provision for doubtful accounts | $ 0 | $ 0 | ||
Vessels dry-dock or special survey period within the first 15 years of useful life | 5 years | |||
Vessels dry-dock or special survey period within the remaining useful life | 2 years 6 months | |||
Depreciation method | straight-line | |||
Scrap value per light weight ton | $ 685 | |||
Vessels useful life | 35 years | |||
Number of Reportable Segments | 1 | |||
Dilutive securities outstanding | $ / shares | $ 0 | $ 0 | $ 0 | |
Cash and cash equivalents | $ 109,917 | $ 67,464 | $ 57,595 | $ 24,293 |
Impairment charges | 0 | 0 | 0 | |
Deferred charges | 1,404 | 0 | ||
Amortization of deferred charges | 68 | $ 0 | 0 | |
ASU No. 2016-18, Early Adoption, Effect | ||||
Restricted cash | $ 25,000 | $ 25,000 | ||
Ballast costs | ||||
Deferred charges | 1,100 | |||
Deferred income | 1,400 | |||
Amortization of deferred charges | 100 | |||
Amortization of deferred income | $ 100 |
Going Concern Considerations (D
Going Concern Considerations (Details) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | |||
Oct. 23, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash and cash equivalents | $ 109,917 | $ 67,464 | $ 57,595 | $ 24,293 | |
Working capital surplus/ (deficit) | $ (159,800) | ||||
Upcoming maturity date of Partnership's 2019 Notes | Oct. 30, 2019 | ||||
Series B Preferred | |||||
Preferred stock dividend rate percentage | 8.75% | ||||
Issuance of preferred units in public offering | 2,200,000 | 2,200,000 | |||
Proceeds from issuance of preferred units, net of offering costs | $ 53,000 |
Transactions with related par_3
Transactions with related parties - Statements of Income (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Included in voyage expenses | |||
Charter hire commissions (a) | $ 1,654 | $ 1,830 | $ 2,212 |
Included in general and administrative expenses - related party | |||
Executive services fee (d) | 637 | 605 | 595 |
Administrative services fee (e) | 120 | 120 | 120 |
Management fees-related party | |||
Management fees (a) | $ 6,347 | $ 6,162 | $ 5,999 |
Transactions with related par_4
Transactions with related parties - Balance Sheet (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Due from related party | $ 1,086 | $ 883 |
Due from related party, non-current | 1,350 | 1,350 |
Liabilities: | ||
Due to related party | 306 | 72 |
Working capital advances granted to the Manager (a) | ||
Assets: | ||
Due from related party | 1,086 | 883 |
Security deposits to Manager (a) | ||
Assets: | ||
Due from related party, non-current | 1,350 | 1,350 |
Executive service charges due to Manager (d) | ||
Liabilities: | ||
Due to related party | 154 | 0 |
Administrative service charges due to Manager (e) | ||
Liabilities: | ||
Due to related party | 30 | 30 |
Other Partnership expenses due to Manager | ||
Liabilities: | ||
Due to related party | $ 122 | $ 42 |
Transactions with related par_5
Transactions with related parties - Dynagas Ltd. (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | |
Related Party Transaction | ||||
Automatic extension of Management Agreements increments | 8 years | |||
Management services agreement initial termination date | December 31, 2020 | |||
Daily management fee | $ 2,900 | $ 2,800 | $ 2,700 | $ 2,500 |
Management fees annual upward percentage adjustment | 3.00% | |||
Charter Hire Commission payable to the Management company | 1.25% | |||
Lump sum payable to the management company for the supervision of vessels construction | $ 700 | |||
Cancellation of management agreement termination fee | 19,100,000 | |||
Management fee paid in advance | $ 1,350,000 | $ 1,350,000 | ||
Management agreement terms | The Management Agreements will terminate automatically after a change of control of the owners and/or of the owners’ ultimate parent, in which case an amount equal to the estimated remaining fees, but in any case not less than for a period of 36 months and not more than 60 months, will become payable to the Manager. | |||
Maximum | ||||
Related Party Transaction | ||||
Period for calculation of management agreement termination fee | 60 months | |||
Minimum | ||||
Related Party Transaction | ||||
Period for calculation of management agreement termination fee | 36 months |
Transactions with related par_6
Transactions with related parties - Loan from related party (Details) - Dynagas Holding Ltd - USD ($) $ in Thousands | 10 Months Ended | 11 Months Ended | 12 Months Ended | |
Nov. 14, 2018 | Nov. 18, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | |
$30 million Sponsor Facility | ||||
Debt Instruments | ||||
Revolving credit facility borrowing capacity | $ 30,000 | |||
Duration of facility | 5 years | |||
Line of credit facility, expiration date | Nov. 30, 2023 | |||
Revolving credit facility amount drawn down | $ 0 | $ 0 | ||
$30 million Extended Sponsor Facility | ||||
Debt Instruments | ||||
Duration of facility | 5 years |
Transactions with related par_7
Transactions with related parties - Optional Vessel acquisitions from Sponsor/ Omnibus Agreement (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 06, 2018 | Mar. 30, 2018 | Dec. 31, 2018 | Dec. 21, 2015USD ($) | Dec. 31, 2015USD ($) | |
Amended Omnibus Agreement | Legal right to acquire Sponsor's interests in Additional Optional Vessels | |||||
Related Party Transaction [Line Items] | |||||
LNG Carrier Capacity | 172,000 | ||||
Number Of Vessels | 5 | ||||
Vessel Type | ARC 7 LNG carrier | ||||
Amended Omnibus Agreement | Legal right to acquire Sponsor's interests in Additional Optional Vessels | Sponsor | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership in entity | 49.00% | ||||
$200 Million Term Loan Facility | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument, remaining borrowing capacity | $ 66,700 | ||||
Dynagas Holding Ltd | Legal right to acquire Sponsor's interests in Initial Optional Vessels | |||||
Related Party Transaction [Line Items] | |||||
Number Of Vessels | 7 | ||||
Lena River | |||||
Related Party Transaction [Line Items] | |||||
LNG Carrier Capacity | 155,000 | ||||
Consideration for vessel and related time charter | $ 240,000 | ||||
Lena River | Sponsor | |||||
Related Party Transaction [Line Items] | |||||
Percentage of ownership in entity | 100.00% | ||||
Lena River | Dynagas Holding Ltd | |||||
Related Party Transaction [Line Items] | |||||
Principal amount due | $ 35,000 | ||||
Clean Ocean and Clean Planet | Extension of the purchase option exercise deadline | |||||
Related Party Transaction [Line Items] | |||||
Number Of Vessels | 2 | ||||
Purchase option period, Expiration date | Dec. 31, 2018 | ||||
Clean Horizon and Clean Vision | Extension of the purchase option exercise deadline | |||||
Related Party Transaction [Line Items] | |||||
Number Of Vessels | 2 | ||||
Purchase option period, Expiration date | Dec. 31, 2018 |
Transactions with related par_8
Transactions with related parties - Executive - Administrative Services Agreement (Details) € in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 21, 2014 | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 30, 2014USD ($) | |
Related Party Transaction [Line Items] | ||||||
Eur/US Dollar exchange rate | 1.1455 | 1.1455 | ||||
Administrative services fee | $ 120 | $ 120 | $ 120 | |||
Executive services agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Annual executive services fee | $ 616 | € 538 | ||||
Executive services agreement duration | The Executive Services Agreement had an initial term of five years and on November 18, 2018 was automatically renewed for successive five year terms unless terminated earlier. | |||||
Executive Services Agreement - Initial Term | ||||||
Related Party Transaction [Line Items] | ||||||
Executive services agreement duration | 5 years | |||||
Executive Services Agreement - Automatic Renewal | ||||||
Related Party Transaction [Line Items] | ||||||
Executive services agreement duration | 5 years | |||||
Administrative Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Administrative services days termination notice | 120 days | 120 days | ||||
Administrative Services Agreement | Monthly fee | ||||||
Related Party Transaction [Line Items] | ||||||
Administrative services fee | $ 10 |
Vessels, net (Table) (Details)
Vessels, net (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment | |||
Balance beginning of period | $ 977,298 | ||
Other additions to vessels' cost | 409 | ||
Depreciation | (30,330) | $ (30,319) | $ (30,395) |
Balance end of period | 947,377 | 977,298 | |
Vessel Cost | |||
Property Plant And Equipment | |||
Balance beginning of period | 1,167,500 | 1,167,500 | |
Other additions to vessels' cost | 409 | 0 | |
Balance end of period | 1,167,909 | 1,167,500 | 1,167,500 |
Accumulated Depreciation | |||
Property Plant And Equipment | |||
Balance beginning of period | (190,202) | (159,883) | |
Depreciation | (30,330) | (30,319) | |
Balance end of period | (220,532) | (190,202) | (159,883) |
Net Book Value | |||
Property Plant And Equipment | |||
Balance beginning of period | 977,298 | 1,007,617 | |
Other additions to vessels' cost | 409 | 0 | |
Depreciation | (30,330) | (30,319) | |
Balance end of period | $ 947,377 | $ 977,298 | $ 1,007,617 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities And Senior Notes (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instruments | ||
Total debt | $ 722,800 | $ 727,600 |
Less deferred financing fees | (9,984) | (13,247) |
Total debt, net of deferred finance costs | 712,816 | 714,353 |
Less current portion, net of deferred financing fees | (251,754) | (2,655) |
Long-term debt, net of current portion and deferred financing fees | 461,062 | 711,698 |
$250 Million Senior Unsecured Notes | ||
Debt Instruments | ||
Senior Unsecured Notes | 250,000 | |
$250 Million Senior Unsecured Notes | Dynagas Partners and Dynagas Finance | ||
Debt Instruments | ||
Senior Unsecured Notes | 250,000 | 250,000 |
$480 Million Term Loan Facility | Arctic LNG and Dynagas Finance LLC | ||
Debt Instruments | ||
Long-term debt | $ 472,800 | $ 477,600 |
Long-Term Debt - Principal Paym
Long-Term Debt - Principal Payments (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure | ||
2019 | $ 254,800 | |
2020 | 4,800 | |
2021 | 4,800 | |
2022 | 4,800 | |
2023 | 453,600 | |
Total long-term debt | $ 722,800 | $ 727,600 |
Long-Term Debt - Credit Facil_2
Long-Term Debt - Credit Facilities And Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 18, 2017 | Sep. 15, 2014 | |
Debt Instruments | |||||
Weighted average interest rate | 6.40% | 5.40% | 4.40% | ||
Total interest incurred on long-term debt | $ 46,884 | $ 39,775 | $ 32,887 | ||
Line of credit facility, commitment fee amount | $ 0 | $ 0 | $ 2 | ||
$250 Million Senior Unsecured Notes due 2019 | |||||
Debt Instruments | |||||
Principal amount | $ 250,000 | ||||
Debt Instrument, Maturity Date | Oct. 30, 2019 | ||||
Senior notes, terms | The 2019 Notes bear interest from the date of the original issue until maturity at a rate of 6.25% per year, payable quarterly in arrears on January 30, April 30, July 30 and October 30 of each year. | ||||
Senior notes interest rate | 6.25% | ||||
$480 Term Loan B | |||||
Debt Instruments | |||||
Principal amount | $ 480,000 | ||||
Line of credit facility, frequency of payments | quarterly | ||||
Debt Instrument, Maturity Date | May 18, 2023 | ||||
Debt instrument, description of variable rate basis | LIBOR | ||||
Debt instrument, payment percentage | 0.25% |
Long-Term Debt - Loans And Cred
Long-Term Debt - Loans And Credit Facilities Terms and Compliance (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Instruments | |
Covenant compliance | As of December 31, 2018, the Partnership was in compliance with all financial covenants prescribed in its debt agreements, including the 2019 Notes and the Term Loan B. |
$250 Million Senior Unsecured Notes | Minimum | |
Debt Instruments | |
Free cash liquidity requirement | $ 20,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instruments | ||
Due from related parties non current carrying value | $ 1,350 | $ 1,350 |
Due from related parties non current fair value - determined through level 3 inputs | 1,128 | |
$250 Million Senior Unsecured Notes | ||
Debt Instruments | ||
Senior notes carrying value | 250,000 | |
Senior notes fair value - determined through level 2 inputs | $ 237,200 |
Time charters acquired (Details
Time charters acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 21, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Fair value of the favorable time charter acquired | $ 20,000 | ||||
Amortization of intangible assets | $ 5,267 | $ 7,247 | $ 7,268 | ||
Accumulated amortization | 20,000 | 14,733 | |||
Above-market acquired time charter contract, net | 0 | 5,267 | |||
Lena River | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Consideration for vessel and related time charter | $ 240,000 | ||||
Amortization of intangible assets | $ 5,267 | $ 7,247 | $ 7,268 |
Commitments and Contingencies -
Commitments and Contingencies - Charter Hire (Table) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Minimum Future Charter Revenues for the year ending | |
2019 | $ 121,333 |
2020 | 125,783 |
2021 | 114,794 |
2022 | 103,824 |
2023 | 103,824 |
2024 and thereafter | 654,475 |
Total | $ 1,224,033 |
Commitments and Contingencies_2
Commitments and Contingencies - Management Fees (Table) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Management Fees for the year ending | |
2019 | $ 6,537 |
2020 | 6,752 |
Total | $ 13,289 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | |
Property Subject to or Available for Operating Lease [Line Items] | ||||
Charter Hire Commission payable to the Management company | 1.25% | |||
Commission payable over the minimum contractual charter revenues | $ 17,541,000 | |||
Daily management fee | $ 2,900 | $ 2,800 | $ 2,700 | $ 2,500 |
Inflation rate adjustment to management fees | 3.00% | |||
Reported lease income of the partnership | $ 131,400,000 | |||
Management services agreement initial termination date | December 31, 2020 | |||
Three time charters | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Nature of lease payments | Escalating | |||
Two time charters | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Nature of lease payments | Fixed and variable | |||
One time charter | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Term of Time charter contract | 3 years | |||
Renewal term of Time charter contract | Two consecutive 12 months periods | |||
Two time charters | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Renewal term of Time charter contract | Three consecutive periods of five years |
Partners' Equity (Table) (Detai
Partners' Equity (Table) (Details) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Total Quarterly Distribution Target Amount | Minimum Quarterly Distribution | Minimum | |
Distribution Per Unit | $ 0.365 |
Total Quarterly Distribution Target Amount | First Target Distribution | Maximum | |
Distribution Per Unit | 0.42 |
Total Quarterly Distribution Target Amount | Second Target Distribution | Maximum | |
Distribution Per Unit | 0.456 |
Total Quarterly Distribution Target Amount | Second Target Distribution | Minimum | |
Distribution Per Unit | 0.42 |
Total Quarterly Distribution Target Amount | Third Target Distribution | Maximum | |
Distribution Per Unit | 0.548 |
Total Quarterly Distribution Target Amount | Third Target Distribution | Minimum | |
Distribution Per Unit | 0.456 |
Total Quarterly Distribution Target Amount | Thereafter | Minimum | |
Distribution Per Unit | $ 0.548 |
Limited Unitholders | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 99.90% |
Limited Unitholders | First Target Distribution | |
Percentage allocations of the additional available cash | 99.90% |
Limited Unitholders | Second Target Distribution | |
Percentage allocations of the additional available cash | 85.00% |
Limited Unitholders | Third Target Distribution | |
Percentage allocations of the additional available cash | 75.00% |
Limited Unitholders | Thereafter | |
Percentage allocations of the additional available cash | 50.00% |
General Partner | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | First Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Second Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Third Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Thereafter | |
Percentage allocations of the additional available cash | 0.10% |
Holders of IDRs | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 0.00% |
Holders of IDRs | First Target Distribution | |
Percentage allocations of the additional available cash | 0.00% |
Holders of IDRs | Second Target Distribution | |
Percentage allocations of the additional available cash | 14.90% |
Holders of IDRs | Third Target Distribution | |
Percentage allocations of the additional available cash | 24.90% |
Holders of IDRs | Thereafter | |
Percentage allocations of the additional available cash | 49.90% |
Partners' Equity (Details)
Partners' Equity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 7 Months Ended | 10 Months Ended | 12 Months Ended | ||
Jan. 23, 2017shares | Jul. 20, 2015USD ($)$ / sharesshares | Oct. 23, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | |
Related Party Transaction | ||||||
Common unitholders - units issued | shares | 35,490,000 | 35,490,000 | ||||
Common unitholders - units outstanding | shares | 35,490,000 | 35,490,000 | ||||
General Partner unitholders - units issued | shares | 35,526 | 35,526 | ||||
General Partner unitholders - units outstanding | shares | 35,526 | 35,526 | ||||
Total distributions paid to all classes of unitholders | $ | $ 48,422 | $ 66,857 | $ 66,856 | |||
Series A Preferred | ||||||
Related Party Transaction | ||||||
Units issued | shares | 3,000,000 | 3,000,000 | ||||
Units outstanding | shares | 3,000,000 | 3,000,000 | ||||
Issuance of preferred units in public offering | shares | 3,000,000 | |||||
Preferred stock liquidation preference | $ 25 | |||||
Proceeds from issuance of preferred units, net of offering costs | $ | $ 72,300 | |||||
Offering costs | $ | 300 | |||||
Underwriting discounts and commissions | $ | $ 2,400 | |||||
Fixed payment rate per annum | 9.00% | |||||
Series B Preferred | ||||||
Related Party Transaction | ||||||
Units issued | shares | 2,200,000 | 0 | ||||
Units outstanding | shares | 2,200,000 | 0 | ||||
Issuance of preferred units in public offering | shares | 2,200,000 | 2,200,000 | ||||
Preferred stock liquidation preference | $ 25 | |||||
Proceeds from issuance of preferred units, net of offering costs | $ | $ 53,000 | |||||
Underwriting discounts and commissions | $ | $ 2,000 | |||||
Fixed payment rate per annum | 8.75% | |||||
After subordination period | ||||||
Related Party Transaction | ||||||
Distribution payment terms | First, 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until the distributed amount in respect of each common unit equals the minimum quarterly distribution; and second, 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until each unit has received an aggregate distribution of a specified dollar amount. | |||||
From and including November 22, 2023 | Series B Preferred | ||||||
Related Party Transaction | ||||||
Preferred stock dividend payment rate description | 3-month LIBOR plus a spread of 5.593% | |||||
Floating rate per annum | 5.593% | |||||
Any time on or after August 12, 2020 | Series A Preferred | ||||||
Related Party Transaction | ||||||
Redemption price per share | $ 25 | |||||
Any time on or after November 22, 2023 | Series B Preferred | ||||||
Related Party Transaction | ||||||
Redemption price per share | $ 25 | |||||
Distribution 4 - FY 2017 | ||||||
Related Party Transaction | ||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Jan. 1, 2018 | |||||
Distributions paid, Per unit | $ 0.4225 | |||||
Annual distributions paid, Per unit | $ 1.69 | |||||
Total distributions paid to all classes of unitholders | $ | $ 15,000 | |||||
Distributions per unit declared - distribution date | Jan. 18, 2018 | |||||
Distributions per unit declared - record date | Jan. 11, 2018 | |||||
Distribution 1 - FY 2018 | ||||||
Related Party Transaction | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 12, 2018 | |||||
Distributions paid, Per unit | $ 0.25 | |||||
Annual distributions paid, Per unit | $ 1 | |||||
Total distributions paid to all classes of unitholders | $ | $ 8,900 | |||||
Distributions per unit declared - distribution date | May 3, 2018 | |||||
Distributions per unit declared - record date | Apr. 26, 2018 | |||||
Distribution 2 - FY 2018 | ||||||
Related Party Transaction | ||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Jul. 2, 2018 | |||||
Distributions paid, Per unit | $ 0.25 | |||||
Total distributions paid to all classes of unitholders | $ | $ 8,900 | |||||
Distributions per unit declared - distribution date | Jul. 19, 2018 | |||||
Distributions per unit declared - record date | Jul. 12, 2018 | |||||
Distribution 3 - FY 2018 | ||||||
Related Party Transaction | ||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Oct. 9, 2018 | |||||
Distributions paid, Per unit | $ 0.25 | |||||
Annual distributions paid, Per unit | $ 1 | |||||
Total distributions paid to all classes of unitholders | $ | $ 8,900 | |||||
Distributions per unit declared - distribution date | Oct. 26, 2018 | |||||
Distributions per unit declared - record date | Oct. 19, 2018 | |||||
General Partner | ||||||
Related Party Transaction | ||||||
General Partner Distributions | $ | $ 59 | $ 129 | $ 127 | |||
Series A Preferred | Distribution from November 12, 2017 to February 11, 2018 | ||||||
Related Party Transaction | ||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Jan. 19, 2018 | |||||
Distributions paid, Per unit | $ 0.5625 | |||||
Distributions per unit declared - distribution date | Feb. 12, 2018 | |||||
Distributions per unit declared - record date | Feb. 5, 2018 | |||||
Series A Preferred | Distribution from February 12, 2018 to May 11, 2018 | ||||||
Related Party Transaction | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 19, 2018 | |||||
Distributions paid, Per unit | $ 0.5625 | |||||
Distributions per unit declared - distribution date | May 14, 2018 | |||||
Distributions per unit declared - record date | May 5, 2018 | |||||
Series A Preferred | Distribution from May 12, 2018 to August 11, 2018 | ||||||
Related Party Transaction | ||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Jul. 19, 2018 | |||||
Distributions paid, Per unit | $ 0.5625 | |||||
Distributions per unit declared - distribution date | Aug. 13, 2018 | |||||
Distributions per unit declared - record date | Aug. 5, 2018 | |||||
Series A Preferred | Distribution from August 12, 2018 to November 11, 2018 | ||||||
Related Party Transaction | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Oct. 19, 2018 | |||||
Distributions paid, Per unit | $ 0.5625 | |||||
Distributions per unit declared - distribution date | Nov. 12, 2018 | |||||
Distributions per unit declared - record date | Nov. 5, 2018 | |||||
Sponsor | ||||||
Related Party Transaction | ||||||
Common unitholders - units outstanding | shares | 15,595,000 | |||||
Partners' subordinated units converted | shares | 14,985,000 | |||||
Subordinated units converted to Common, Conversion Basis | one-for-one basis | |||||
Subordinated units converted to Common, Conversion Ratio | 1 |
(Loss)_ Earnings per Unit (Ta_2
(Loss)/ Earnings per Unit (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
(Loss)/ Earnings Per Share | |||
Partnership's Net income | $ 3,613 | $ 17,339 | $ 66,854 |
Less: | |||
Net Income attributable to preferred unitholders | 7,659 | 6,750 | 6,750 |
Net Income attributable to subordinated unitholders | 0 | 1,208 | 25,323 |
General Partner's interest in Net Income | (4) | 79 | 129 |
Net income/(loss) attributable to common unitholders | $ (4,042) | $ 9,302 | $ 34,652 |
Weighted average number of common units outstanding, basic and diluted | 35,490,000 | 34,545,740 | 20,505,000 |
Earnings/ (Losses) per common unit, basic and diluted | $ (0.11) | $ 0.27 | $ 1.69 |
Interest and Finance Costs (T_2
Interest and Finance Costs (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finance Costs | |||
Interest expense (Note 6) | $ 46,884 | $ 39,775 | $ 32,887 |
Amortization and write-off of deferred financing fees | 3,261 | 5,387 | 1,984 |
Commitment fees (Note 6) | 0 | 0 | 2 |
Other | 345 | 1,119 | 118 |
Total | $ 50,490 | $ 46,281 | $ 34,991 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure | |||
Tonnage taxes for the period | $ 548 | $ 417 | $ 339 |
Potential income tax in absence of exemption | $ 0 | $ 123 | $ 51 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 4 Months Ended | 12 Months Ended | ||||
Jan. 31, 2019 | Jan. 23, 2019 | Jan. 21, 2019 | Apr. 22, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Distribution Made To Limited Partner Cash Distributions Paid | $ 48,422 | $ 66,857 | $ 66,856 | ||||
Distribution 3 - FY 2018 | |||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Oct. 9, 2018 | ||||||
Distributions paid, Per unit | $ 0.25 | ||||||
Annual distributions paid, Per unit | $ 1 | ||||||
Distribution Made To Limited Partner Cash Distributions Paid | $ 8,900 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Oct. 26, 2018 | ||||||
Distribution Made To Limited And General Partner Date Record | Oct. 19, 2018 | ||||||
Subsequent Event | Distribution 4 - FY 2018 | |||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Jan. 23, 2019 | ||||||
Distributions paid, Per unit | $ 0.0625 | ||||||
Annual distributions paid, Per unit | $ 0.25 | ||||||
Distribution Made To Limited Partner Cash Distributions Paid | $ 2,200 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Feb. 14, 2019 | ||||||
Distribution Made To Limited And General Partner Date Record | Feb. 7, 2019 | ||||||
Subsequent Event | Distribution from November 12, 2018 to February 11, 2019 | Series A Preferred | |||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Jan. 21, 2019 | ||||||
Distributions paid, Per unit | $ 0.5625 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Feb. 12, 2019 | ||||||
Distribution Made To Limited And General Partner Date Record | Feb. 5, 2019 | ||||||
Subsequent Event | Distribution from and including October 23, 2018 to, but excluding, February 22, 2019 | Series B Preferred | |||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Jan. 31, 2019 | ||||||
Distributions paid, Per unit | $ 0.7231 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Feb. 22, 2019 | ||||||
Distribution Made To Limited And General Partner Date Record | Feb. 15, 2019 | ||||||
Subsequent Event | Distribution 1 - FY 2019 | |||||||
Distribution Made To Limited Partner And General Partner Declaration Date | Apr. 22, 2019 | ||||||
Distribution Made To Limited Partner Cash Distributions Paid | $ 2,200 | ||||||
Distribution Made To Limited And General Partner Distribution Date | May 10, 2019 | ||||||
Distribution Made To Limited And General Partner Date Record | May 3, 2019 |