Document Entity Information
Document Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Document Entity Information | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2023 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-36185 |
Entity Registrant Name | DYNAGAS LNG PARTNERS LP |
Entity Central Index Key | 0001578453 |
Unaudited Consolidated Condense
Unaudited Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 52,898 | $ 48,598 |
Trade accounts receivable | 8,574 | 67 |
Prepayments and other assets | 7,049 | 2,127 |
Inventories | 1,894 | 885 |
Accrued charter revenue, current portion | 5,673 | |
Deferred Charges, current portion | 217 | |
Derivative financial instrument, current portion | $ 24,034 | $ 22,544 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Total current assets | $ 100,339 | $ 74,221 |
FIXED ASSETS, NET: | ||
Vessels, net | 809,289 | 825,105 |
Total fixed assets, net | 809,289 | 825,105 |
OTHER NON-CURRENT ASSETS: | ||
Restricted cash | 31,270 | |
Due from related party | $ 1,350 | $ 1,350 |
Other Receivable, after Allowance for Credit Loss, Noncurrent, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Accrued charter revenue | $ 1,820 | $ 355 |
Deferred charges | 1,031 | 1,289 |
Other receivables, non- current | 1,789 | 1,789 |
Derivative financial instrument, non-current portion | 4,249 | 12,333 |
Total assets | 919,867 | 947,712 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt, net of unamortized deferred financing fees of 1,553 and $1,748, respectively | 46,447 | 46,252 |
Trade payables | 9,093 | 8,035 |
Due to related party | 458 | 1,472 |
Accrued liabilities | 2,048 | 2,656 |
Deferred Revenue - Current | 322 | |
Unearned revenue | 20,738 | 11,855 |
Total current liabilities | 79,106 | 70,270 |
NON-CURRENT LIABILITIES: | ||
Deferred revenue | 2,249 | 2,730 |
Long-term debt, net of current portion and unamortized deferred financing fees of $310 and $1,131, respectively | 396,332 | 450,781 |
Total non-current liabilities | 398,581 | 453,511 |
Commitments and contingencies | ||
PARTNERS' EQUITY: | ||
Common unitholders (unlimited authorized; 36,802,247 units issued and outstanding as at June 30, 2023 and December 31, 2022) | 315,369 | 297,139 |
General Partner (35,526 units issued and outstanding as at June 30, 2023 and December 31, 2022) | 97 | 78 |
Total partners' equity | 442,180 | 423,931 |
Total liabilities and partners' equity | 919,867 | 947,712 |
Series A Preferred unitholders | ||
PARTNERS' EQUITY: | ||
Preferred Unitholders | 73,216 | 73,216 |
Series B Preferred unitholders | ||
PARTNERS' EQUITY: | ||
Preferred Unitholders | $ 53,498 | $ 53,498 |
Unaudited Consolidated Conden_2
Unaudited Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred finance fees, current portion | $ 1,553 | $ 1,748 |
Debt issuance costs, noncurrent, net | $ 310 | $ 1,131 |
Common unitholders - units outstanding | 36,802,247 | 36,802,247 |
General partner outstanding | 35,526 | 35,526 |
Series A Preferred unitholders | ||
Preferred units, authorized | 3,450,000 | 3,450,000 |
Preferred units, issued | 3,000,000 | 3,000,000 |
Series B Preferred unitholders | ||
Preferred units, authorized | 2,530,000 | 2,530,000 |
Preferred units, issued | 2,200,000 | 2,200,000 |
Preferred units, outstanding | 2,200,000 |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
REVENUES: | ||
Voyage revenues | $ 74,916 | $ 66,679 |
EXPENSES: | ||
Voyage expenses (including related party) | (1,518) | (1,376) |
Vessel operating expenses | (15,390) | (14,978) |
General and administrative expenses (including related party) | (992) | (1,453) |
Management fees-related party | (3,168) | (3,076) |
Depreciation | 15,816 | 15,739 |
Dry-docking and special survey costs | 390 | 5,385 |
Operating income | 37,642 | 24,672 |
OTHER INCOME/(EXPENSES): | ||
Interest and finance costs | (19,549) | (11,041) |
Interest income | 1,147 | 3 |
Gain on derivative financial instruments | 5,023 | 21,231 |
Loss on Debt extinguishment | (154) | |
Other, net | (79) | 134 |
Total other income/ (expenses) | (13,612) | 10,327 |
Partnership's Net Income and comprehensive income | 24,030 | 34,999 |
Common unitholders' interest in Net Income | 18,230 | 29,189 |
General Partner's interest in Net Income | $ 19 | $ 29 |
Earnings per unit, basic and diluted: | ||
Earnings per common unit, basic | $ 0.50 | $ 0.79 |
Weighted average number of units outstanding, basic and diluted: | ||
Weighted average number of common units outstanding, basic | 36,802,247 | 36,802,247 |
Series A Preferred unitholders | ||
OTHER INCOME/(EXPENSES): | ||
Preferred unitholders' interest in Net Income | $ 3,375 | $ 3,375 |
Series B Preferred unitholders | ||
OTHER INCOME/(EXPENSES): | ||
Preferred unitholders' interest in Net Income | $ 2,406 | $ 2,406 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Partners' Equity - USD ($) $ in Thousands | Series A Preferred | Series B Preferred Stock [Member] | Common | General Partner | Total |
BALANCE at jan1 at Dec. 31, 2021 | $ 73,216 | $ 53,498 | $ 254,734 | $ 36 | $ 381,484 |
BALANCE at Jan 1 (Shares) at Dec. 31, 2021 | 3,000,000 | 2,200,000 | 36,802,247 | 35,526 | |
Net income | $ 3,375 | $ 2,406 | $ 29,189 | $ 29 | 34,999 |
Distributions declared and paid (preferred units) | (3,375) | (2,406) | (5,781) | ||
BALANCE at Jun 30 at Jun. 30, 2022 | $ 73,216 | $ 53,498 | $ 283,923 | $ 65 | 410,702 |
BALANCE at Jun 30 (shares) at Jun. 30, 2022 | 3,000,000 | 2,200,000 | 36,802,247 | 35,526 | |
BALANCE at jan1 at Dec. 31, 2022 | $ 73,216 | $ 53,498 | $ 297,139 | $ 78 | 423,931 |
BALANCE at Jan 1 (Shares) at Dec. 31, 2022 | 3,000,000 | 2,200,000 | 36,802,247 | 35,526 | |
Net income | $ 3,375 | $ 2,406 | $ 18,230 | $ 19 | 24,030 |
Distributions declared and paid (preferred units) | (3,375) | (2,406) | (5,781) | ||
BALANCE at Jun 30 at Jun. 30, 2023 | $ 73,216 | $ 53,498 | $ 315,369 | $ 97 | $ 442,180 |
BALANCE at Jun 30 (shares) at Jun. 30, 2023 | 3,000,000 | 2,200,000 | 36,802,247 | 35,526 |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from Operating Activities: | ||
Net income | $ 24,030 | $ 34,999 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 15,816 | 15,739 |
Amortization of deferred financing fees | 862 | 1,047 |
Deferred revenue and accrued charter revenue amortization | (7,297) | (159) |
Amortization and write off of deferred charges | 107 | 107 |
Dry-docking and special survey costs | 390 | 5,385 |
Gain on derivative financial instruments | 5,023 | 21,231 |
Loss on Debt extinguishment | 154 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (8,507) | (563) |
Prepayments and other assets | (5,037) | (555) |
Inventories | (1,009) | (1,752) |
Due from/to related parties | (1,014) | (1,336) |
Deferred expenses | (66) | |
Trade accounts payable | 973 | 548 |
Accrued liabilities | (828) | 803 |
Unearned revenue | 8,883 | |
Net cash provided by Operating Activities | 22,434 | 33,032 |
Cash flows used in Investing Activities: | ||
Ballast water treatment system installation | (86) | (585) |
Net cash used in Investing Activities | (86) | (585) |
Cash flows from Financing Activities: | ||
Distributions declared and paid | (5,781) | (5,781) |
Repayment of long-term debt | (55,270) | (24,000) |
Receipt/ (Payment) of derivative instruments | 11,733 | 552 |
Net cash used in Financing Activities | (49,318) | (29,229) |
Net increase/ (decrease) in cash and cash equivalents and restricted cash | (26,970) | 3,218 |
Cash and cash equivalents and restricted cash at beginning of the period | 79,868 | 97,015 |
Cash and cash equivalents and restricted cash at end of the period | 52,898 | 100,233 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents | 52,898 | 50,233 |
Restricted cash | 50,000 | |
Cash and cash equivalents and restricted cash | $ 52,898 | $ 100,233 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation and General Information | |
Basis of Presentation and General Information | 1. Basis of Presentation 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. Georgios 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: (i) an omnibus agreement with the Sponsor, as amended, (the “Omnibus Agreement”) and, (ii) a $30 million interest free revolving credit facility with its Sponsor (the “$30 Million Sponsor Facility”) (Note 4(b)), which was extended on November 14, 2018 until November 2023, to be used for general Partnership purposes. The Partnership earned in the six months ended as of June 30, 2023, 39% (2022: 40%) of its revenues from Yamal Trade Pte. Ltd. (“Yamal”), which traded primarily from Russian LNG ports. Due to the recent Russian conflicts with Ukraine, the United States, European Union, Canada and other Western countries and organizations announced and enacted from February 2022 to date, numerous sanctions against Russia which have not expressly prohibited LNG shipping in the main trading routes of the Partnership’s vessels. The Partnership’s time charter contracts have therefore currently not been affected by the sanctions imposed to date due to the events in Russia and Ukraine. Currently imposed sanctions do not affect the Partnership’s compliance with terms imposed by its $675 Million Credit Facility. As there is currently uncertainty regarding the global impact of the conflict, which is ongoing, it is possible that further developments in sanctions or escalation of the conflict will affect the Partnership’s ability to continue to employ two out of its six vessels to the current charterers and the suspension, termination, or cancellation of such charter parties, could thus adversely affect the Partnership’s results of operation, cash flows and financial condition. The Partnership believes that despite the continuing uncertainty, in the event of suspension, termination, cancellation of any of these charters, it will be able to enter into replacement time charters acceptable to the lenders. As of June 30, 2023, the Partnership reported cash and cash equivalents of $52.9 million and had a working capital surplus of $21.2 million. However, on September 18, 2024, the balloon installment of the $675 Million Credit Facility (Note 6) amounting to $384.6 million is due. The Partnership estimates that before considering any plan for refinancing the maturing debt, available cash and cash expected to be generated from operating activities will not be sufficient to repay the balloon installment, which is due within one year after the date that the financial statements are issued. The Partnership is currently evaluating refinancing alternatives and has initiated negotiations with several financiers. Considering among others, the indicative terms offered by several financiers, the amount of time the Partnership has available to negotiate the terms, the current market conditions and market outlook, its operating performance and its current backlog, the market values of its fleet compared to the amount of loan maturing, and the past history of successful refinancing arrangements, believes that the refinancing of the $675 Million Credit Facility is probable and will mitigate conditions indicating that cash and cash expected to be generated from operating activities will not be sufficient to cover its obligations falling due within one year after the date that the financial statements are issued. 1. Basis of Presentation and General Information (continued): 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 June 30, 2023: Vessel Owning Subsidiaries: Country of incorporation/ Delivery date from Company Name formation Vessel Name shipyard Delivery date to Partnership Cbm Capacity Pegasus Shipholding S.A. (“Pegasus”) Marshall Islands Clean Energy March 2007 October 2013 149,700 Lance Shipping S.A. (“Lance”) Marshall Islands Ob River July 2007 October 2013 149,700 Seacrown Maritime Ltd. (“Seacrown”) Marshall Islands Amur River January 2008 October 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”) 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 were limited to the co-issuance of the 2019 Notes, discussed under our Annual Report on Form 20-F for the year ended December 31, 2022, which was filed with the SEC, on April 21, 2023 and engaging in other activities incidental thereto. Arctic LNG Carriers Ltd. 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 Term Loan discussed under Note 6. 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)). 1. Basis of Presentation and General Information (continued): As of June 30, 2023, the Partnership’s Sponsor owned 42.4% 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. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S Securities and Exchange Commission (the “SEC”) for interim financial reporting. The unaudited interim condensed consolidated financial statements include the accounts of Dynagas Partners and its wholly owned subsidiaries, referred to above. All intercompany balances and transactions have been eliminated upon consolidation. These unaudited interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2022 and notes thereto included in its Annual Report on Form 20-F, filed with the SEC on April 21, 2023. In the opinion of the Partnership’s management, all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the financial position, operating results, and cash flows have been included in the financial statements for the periods presented. Interim results are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Concentration of Credit Risk During the six-month periods ended June 30, 2023 and 2022, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows: Charterer 2023 2022 A 45 % 44 % B 39 % 40 % C 16 % 16 % Total 100 % 100 % The maximum aggregate amount of loss due to credit risk, net of related allowances, that the Partnership would have incurred if the aforementioned charterers failed completely to perform according to the terms of their respective charter parties, amounted to $8,574 and $67 as of June 30, 2023 and December 31, 2022, respectively. 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 trade accounts receivable by performing ongoing credit evaluations of each of its charterer’s financial condition and generally does not require collateral for its trade accounts receivable. The Partnership is exposed to credit risk in the event of non-performance by the counterparty to the derivative instrument; however, the Partnership limits its exposure by entering into transactions with counterparties with high credit ratings. Provision for credit Losses The amount shown as trade accounts receivable at each balance sheet date, mainly includes receivables from charterers for hire from lease agreements, net of any provision for doubtful accounts, if any. 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. Operating lease receivables under ASC 842 are not in scope of ASC 326 for assessment of credit loss. ASC 842 requires lessors to evaluate the collectability of all lease payments. If collection of all operating lease payments, plus any amount necessary to satisfy a residual value guarantee, is not probable (either at lease commencement or after the commencement date), lease income is constrained to the lesser of cash collected or lease income reflected on a straight-line or another systematic basis, plus variable rent when it becomes accruable. Provision for doubtful accounts as of June 30, 2023 and December 31, 2022, was nil. No allowance was recorded on insurance claims as of June 30, 2023 and December 31, 2022. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Significant Accounting Policies and Recent Accounting Pronouncements | 2. Significant Accounting Policies and Recent Accounting Pronouncements: A summary of the Partnership’s significant accounting policies can be found in the Partnership’s consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2022, filed with the SEC on April 21, 2023. There have been no material changes to these policies in the six-month period ended June 30, 2023. Recent Accounting Pronouncements Adopted Reference Rate Reform (Topic 848): Recent Accounting Pronouncements – Not Yet Adopted Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited interim financial statements for the six months ended June 30, 2023. |
Prepayments and other assets
Prepayments and other assets | 6 Months Ended |
Jun. 30, 2023 | |
Prepayments and other assets | |
Prepayments and other assets | 3. Prepayments and other assets: On April 7, 2023 an incident of failure of the cargo pumps in the cargo tanks of one of the Partnership’s vessels occurred. The vessel went off hire in order for the damage to be repaired. The Partnership expects to recover pursuant to the relevant insurance policy a proportion of: the hire lost and the additional expenses incurred for repairs, port expenses and fuel consumption, due to this incident. As a result, as of June 30, 2023 and December 2022, a balance of $3,621 and nil, respectively, relating to insurance claims for loss of hire and hull and machinery expenses, is included in prepayments and other assets. |
Transactions with related parti
Transactions with related parties | 6 Months Ended |
Jun. 30, 2023 | |
Transactions with related parties, | |
Transactions with related parties | 4. Transactions with related parties: During the six-month periods ended June 30, 2023 and 2022, the Partnership incurred the following charges in connection with related party transactions, which are included in the accompanying unaudited interim condensed consolidated statements of comprehensive income: Six months ended June 30 2023 2022 Included in voyage expenses (including related party) Charter hire commissions (a) $ 811 $ 826 Included in general and administrative expenses (including related party) Executive services fee (c) $ 291 $ 296 Administrative services fee (d) $ 60 $ 60 Management fees-related party Management fees (a) $ 3,168 $ 3,076 As of June 30, 2023 and December 2022, balances with related parties consisted of the following: Period/Year ended June 30, December 31, 2023 2022 Assets: Security deposits to Manager (a) $ 1,350 $ 1,350 Total assets due from related party, non-current $ 1,350 $ 1,350 Liabilities included in Due to related party: Working capital due to Manager (a) $ 74 $ 836 Executive service charges due to Manager (c) $ 176 $ 135 Administrative service charges due to Manager (e) $ — $ 30 Management fees due to Manager (a) $ — $ — Other Partnership expenses due to Manager (a) $ 208 $ 471 Total liabilities due to related party, current $ 458 $ 1,472 (a) Master Management Agreement The Partnership has entered into a master management agreement (the “Master Agreement”) with Dynagas Ltd. (the “Manager”) for the provision of commercial, technical, crew, accounting and vessel administrative services to the Partnership’s owned or controlled vessels for a technical management fee of $2,750 per day per vessel commencing on January 1, 2021. Beginning on the first calendar year after the commencement of the Master Agreement and each calendar year thereafter, these fees are adjusted upwards by 3%, subject to further annual increases to reflect material unforeseen costs of providing the management services. The amount of such further increase is to be agreed between the Partnership and the Manager and will be reviewed and approved by the Partnership’s Conflicts Committee. 4. Transactions with related parties (continued): Under the terms of the Master Agreement, 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. The Master Agreement initially terminates on December 31, 2030, and upon expiration, automatically extends in additional five-year increments if notice of termination is not previously provided by the Partnership’s vessel-owning subsidiaries. In the event the Master Agreement is terminated for any reason other than default by the Manager, the applicable management fee under the Master Agreement shall continue to be payable for a further period of six months as from the effective date of such termination. The Manager may also terminate the Master Agreement in the event that the Partnership undergoes a change of control, in which case, subject to and pursuant to the terms of the Master Agreement, the Partnership would be required to pay to the Manager an amount equal to the net present value calculated at a discount rate of 5% per annum of the total aggregate management fees payable from the date of such termination to June 30 th During both of the six-month periods ended June 30, 2023 and 2022, each vessel was charged a daily management fee of $2.9 and $2.8, respectively. During the six-month periods ended June 30, 2023 and 2022, management fees under the vessel Master Agreement amounted to $3,168 and $3,076, respectively, and are separately reflected in the accompanying unaudited interim condensed consolidated statements of comprehensive income. The Master Agreement also provides for a commission of 1.25% over charter-hire agreements arranged by the Manager. During the six-month periods ended June 30, 2023 and 2022, charter hire commissions under the Master Agreement amounted to $811 and $826, respectively, and are included in Voyage expenses (including related party) in the accompanying unaudited interim condensed consolidated statements of comprehensive income. The Master Agreement also provides for an advance equal to three months daily management fee, which shall continue to be maintained during its’ term by the Manager. Such advances as of June 30, 2023 and December 31, 2022, amounted to $1,350, which are separately reflected in Non-Current Assets as Due from related party in the unaudited consolidated condensed balance sheets. In addition, the Manager makes payments for operating expenses with funds provided by the Partnership. As of June 30, 2023 and December 31, 2022 amounts of $74 and $836, respectively, were due to the Manager in relation to these operating expenses. The Manager also makes payments for other expenses (e.g. extra war risk insurances) on behalf of the Partnership. As of June 30, 2023 and December 31, 2022 amounts of $208 and $471, respectively, were due to the Manager in relation to payments for other expenses. (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 to 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 June 30, 2023 and December 31, 2022. 4. Transactions with related parties (continued): (c) 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 $582 on the basis of an average Euro/US Dollar exchange rate of €1.0000/$1.0812 in the six-month period ended June 30, 2023), 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 six-month periods ended June 30, 2023 and 2022, executive service fees amounted to $291 and $296, respectively, and are included in general and administrative expenses in the accompanying unaudited interim condensed consolidated statements of income. As of June 30, 2023 and December 31, 2022 amounts of $176 and $135, respectively, were due to the Manager in relation to these executive services. (d) 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 six-month periods ended June 30, 2023 and 2022, administrative service fees amounted to $60 and are included in general and administrative expenses (including related party) in the accompanying unaudited interim condensed consolidated statements of income. |
Vessels, net
Vessels, net | 6 Months Ended |
Jun. 30, 2023 | |
Vessels, net, | |
Vessels, net | 5. Vessels, net: The amounts in the consolidated condensed balance sheets are analyzed as follows: Vessel Accumulated Net Book Cost Depreciation Value Balance December 31, 2022 $ 1,171,630 $ (346,525) $ 825,105 Additions — — — Depreciation — (15,816) (15,816) Balance June 30, 2023 $ 1,171,630 $ (362,341) $ 809,289 As of June 30, 2023, all vessels comprising the Partnership’s fleet were first priority mortgaged as collateral to secure the $675 Million Credit Facility, further discussed in Note 6. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Long-Term Debt, | |
Long-Term Debt | 6. Long-Term Debt: The amounts shown in the consolidated condensed balance sheets are analyzed as follows: Period/ Year Ended June 30, December 31, Debt instruments Borrowers-Issuers 2023 2022 $675 Million Credit Facility Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd. 444,642 499,912 Total debt $ 444,642 $ 499,912 Less deferred financing fees (1,863) (2,879) Total debt, net of deferred finance costs $ 442,779 $ 497,033 Less current portion, net of deferred financing fees $ (46,447) $ (46,252) Long-term debt, net of current portion and deferred financing fees $ 396,332 $ 450,781 $675 Million Senior Secured Term Loan Facility ($675 Million Credit Facility) On September 18, 2019, Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited and Solana Holding Ltd., wholly owned by the Partnership, as co-borrowers, entered into a syndicated $675.0 million senior secured term loan, the $675 Million Credit Facility, with leading international banks. On September 25, 2019, the amount of $675.0 million was drawn under the $675 Million Credit Facility and the Partnership repaid in full the indebtedness outstanding under the $480 Million Senior Secured Term Loan Facility of $470.4 million. On October 30, 2019, the remaining amount of $204.6 million plus cash on hand was used to repay the $250 Million Senior Unsecured Notes due in 2019. The $675 Million Credit Facility is secured by, among other things, first priority mortgages on the six LNG vessels in the Partnership’s fleet, and is repayable over five years in 20 consecutive quarterly payments plus a balloon payment in the fifth year. Since its inception and until June 28, 2023, the $675 Million Credit Facility bore interest at U.S. LIBOR plus 3.00% margin. Effective June 28, 2023 the $675 Million Credit Facility bears interest at U.S. SOFR plus 3.00% margin. The $675 Million Credit Facility contains financial covenants that require the Partnership to: ● meet a specified minimum ratio of Cash and Cash Equivalents to Total Liabilities; and ● meet a specified maximum ratio of Total Liabilities to the Market Value Adjusted Total Assets. The $675 Million Credit Facility restricts the Partnership from declaring or making any distributions to its common unitholders while borrowings are outstanding. Scheduled distributions to the preferred unitholders under the existing Series A Preferred Units and Series B Preferred Units are not restricted provided there is no event of default while the $675 Million Credit Facility remains outstanding. 6. Long-Term Debt (continued): The $675 Million Credit Facility also contains covenants that require the Partnership to: ● prevent the direct or indirect use of any of its mortgaged vessels by, or for the benefit of, any Prohibited Person or any person owned or controlled by any Prohibited Person in accordance with country-wide or territory-wide sanctions; ● procure that no proceeds, funds or benefit from any activity or dealing with or involving a Prohibited Person will be used in discharging any obligation due to its lenders; and ● enter into an approved time charter commitment following the cancellation, rescission, frustration or withdrawal from the original charter party, if a vessel is withdrawn from service under a time charter before the time charter’s scheduled expiration, which in the opinion of the Agent of the $675 Million Credit Facility will be under not less favorable terms to the Partnership and the Lenders than those of the original charter party. On April 6, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Amsterdam Trade Bank NV (“ATB”) as a Specially Designated National (“SDN”) pursuant to Executive Order 14024. ATB was among several lenders to the Partnerships’ $675 Million Credit Facility. On April 22, 2022, ATB was declared bankrupt by the District Court of Amsterdam whereby the court appointed certain bankruptcy trustees (“Bankruptcy Trustees”). On July 12, 2022 the Department of the Treasury (Washington, D.C. 20220) issued License No. RUSSIA-EO14024-2022-921484-1 to the Bankruptcy Trustees which authorized the Bankruptcy Trustees to engage in all transactions ordinarily incident and necessary to the wind down of transactions with ATB. (“Specific License”). On October 11, 2022, and pursuant to the Specific License, the Partnership and all Lenders of the $675 Million Credit Facility (including the Bankruptcy Trustees on behalf of ATB) entered into a Supplemental Agreement to the $675 Million Credit Facility and a Deed of Retirement. Pursuant to their terms, among other things: (i) the Partnership made a voluntary prepayment of $18,730, which was effected on October 12, 2022 and applied in prepayment of the entire participation of ATB to the $675 Million Credit Facility, including all principal, interest, and costs owing by the Partnership as borrower to ATB; (ii) the principal amount of $ 2,195 due to ATB that was not paid, was waived and forgiven; (iii) ATB was retired as Arranger and as Lender under the $675 Million Credit Facility; (iv) an amount equal to the prepayment amount was released from the Cash Collateral Account in order to make the prepayment to ATB referred to above; and (v) the Agent will apply to the relevant Sanctions Authority in the United States for the return to the Partnership of the amount which was paid by the Partnership to the Agent between March 2022 and September 2022 in relation to the principal and interest repayments for ATB and which are currently blocked by the Agent due to the application of Sanctions. On the date of repayment, the Partnership recognized a gain on debt extinguishment of $2,072 in the Consolidated Statements of Income according to the debt extinguishment guidance of ASC 470-50 “Debt Modifications and Extinguishments.” The gain on debt extinguishment of $2,072 resulted from: a) the gain in relation to the principal amount of $2,195 which was waived and forgiven further to the Deed of Retirement, as mentioned above, and b) the write-off of the amount of $123 of unamortized debt discounts attributable to the debt of ATB. The amount of $1,789 which was paid by the Partnership to the Agent between March 2022 and September 2022 in relation to the principal and interest repayments for ATB (“Blocked Funds”) and which is currently blocked by the Agent due to the application of Sanctions, is included in Other assets, non- current in the Consolidated Balance Sheets. The Partnership considers the Blocked Funds to be recoverable following the issuance of the license by OFAC for the release of the Blocked Funds by the Agent. On March 27, 2023, the Partnership obtained approval from all Lenders of the $675 Million Credit Facility for the following: (i) to make a voluntary prepayment of $31.3 million, which was effected on March 27, 2023, following the release of the funds standing to the credit of the Cash Collateral Account, which was presented as Non- current Restricted Cash in the Consolidated Balance Sheet as of December 31, 2022. This amount was applied in inverse order of maturity of the $675 Million Credit Facility by reducing the balloon payment; and (ii) the removal of the requirement for the maintenance of $31.3 million in the Cash Collateral Account. 6. Long-Term Debt (continued): On the date of prepayment of the $31.3 million, the Partnership recognized a loss on debt extinguishment of $154 in the Consolidated Statements of Income according to the debt extinguishment guidance of ASC 470-50 “Debt Modifications and Extinguishments”. The loss on debt extinguishment of $154 resulted from: the write-off of the unamortized debt discounts attributable to the portion of the $675 Million Credit Facility that was extinguished. On June 26, 2023, the Partnership and all Lenders of the $675 Million Credit Facility entered into a Supplemental Agreement to the $675 Million Credit Facility (“the Second supplemental agreement”). Pursuant to its’ terms, among other things: (i) the abovementioned prepayment was incorporated in the security documents; and (ii) the rate of interest was amended in order to reflect the transition from Libor to the alternative risk-free reference rate. As of June 30, 2023, the Partnership was in compliance with all financial covenants and non-financial covenants prescribed in its $675 Million Credit Facility. As also discussed in Note 1, currently imposed sanctions due to the Russian conflicts with Ukraine do not affect the Partnership’s compliance with terms imposed by its $675 Million Credit Facility. The annual principal payments for the Partnership’s outstanding $675 Million Credit Facility as at June 30, 2023, required to be made after the balance sheet date were as follows: Year ending June 30, Amount 2024 $ 48,000 2025 396,642 Total long-term debt $ 444,642 The weighted average interest rate on the Partnership’s long-term debt for the six-month periods ended June 30, 2023 and 2022 was 7.8% and 3.5%, respectively. Total interest incurred on long-term debt for the six-month periods ended June 30, 2023 and 2022, amounted to $18,610 and $9,764 respectively, and is included in Interest and finance costs (Note 11) in the accompanying unaudited interim condensed consolidated statements of income. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
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 condensed 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 condensed balance sheets. The fair value of the 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 co s t of capital, is $810 as of June 30, 2023, compared to its carrying value of $1,350 as of the same date. ● Long-term debt: The $675 Million Credit Facility 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 SOFR rates are observable at commonly quoted intervals for the full terms of the loans. The fair value of the $675 Million Credit Facility approximates its recorded value, due to its variable interest rates. ● Derivative financial instrument : The carrying values reported in the consolidated condensed balance sheets for the swap transaction are determined through Level 2 of the fair value hierarchy and are derived principally from interest rates, yield curves, and other items that allow value to be determined. 7. Fair Value Measurements (continued): 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. The following table summarizes the hierarchy for determining and disclosing the fair value of assets and liabilities by valuation technique on a recurring basis as of the valuation date. Significant Other Observable Inputs (Level 2) June 30, December 31, Recurring measurements: 2023 2022 Interest rate swaps $ 28,283 $ 34,877 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies, | |
Commitments and Contingencies | 8. Commitments and Contingencies: (a) Long-term leases: 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. As at June 30, 2023, two 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. 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. 8. Commitments and Contingencies (continued): Specifically, as at June 30, 2023 under two of the Partnership’s time charters, the charterer has the option to extend the original lease term by three consecutive periods of five years, the first to be declared at the original termination date and each of the remaining two to be declared 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 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. The Partnership’s future minimum contracted lease payments (excluding variable lease payments) under its non-cancelable long-term time charter contracts, as of June 30, 2023, 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: Period/ Year ending December 31, Amount 2023 (period) 75,604 2024 158,168 2025 153,910 2026 155,508 2027 and thereafter 679,122 Total $ 1,222,312 (b) Legal Proceedings: 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. The Partnership is covered in the event of any liabilities associated with an individual vessel’s 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. Currently, management is not aware of any such claims not covered by insurance or contingent liabilities which should be disclosed (other than that referred below) or for which a provision should be established in the accompanying unaudited consolidated condensed 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. (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 Agreement. a) For the commercial services provided under the Master Agreement, 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 $15,279 . b) Management fees for the period from July 1, 2023 to the date of the expiration of the agreements on December 31, 2030, adjusted for the 3% annual inflation in accordance with the terms of the Management Agreements, are estimated to amount to $53,685 . |
Partners' Equity
Partners' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Partners' Equity | |
Partners' Equity | 9. 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. 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 June 30, 2022, the Partnership had 36,802,247 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: 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 (“IDRs”) 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 General Holders Amount Unitholders Partner 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 % 9. Partners’ Equity (continued): On September 26, 2019, the Partnership announced that pursuant to the closing of the $675 Million Credit Facility (Note 6), the Partnership is prohibited from paying distribution to its common unitholders while borrowings are outstanding under the $675 Million Credit Facility. 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. No Series A Preferred Units were redeemed as of June 30, 2023. 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 SOFR 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, and 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: No quarterly cash distributions to Common unitholders were made with respect to the six-month period ended June 30, 2023 and 2022. Series A Preferred unit distributions: On January 20, 2023, 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, 2022 to February 11, 2023. The cash distribution was paid on February 13, 2023, to all Series A preferred unitholders of record as of February 6, 2023. 9. Partners’ Equity (continued): On April 20, 2023, 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, 2023 to May 11, 2023. The cash distribution was paid on May 12, 2023, to all Series A preferred unitholders of record as of May 5, 2023. Series B Preferred unit distributions: On January 31, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from November 22, 2022 to February 21, 2023. The cash distribution was paid on February 22, 2023, to all Series B preferred unitholders of record as of February 15, 2023. On April 27, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from February 22, 2023 to May 21, 2023. The cash distribution was paid on May 22, 2023, to all Series B preferred unitholders of record as of May 15, 2023. General Partner Distributions: During the six-month periods ended June 30, 2023 and 2022, no payments were made by the Partnership to its General Partner as a holder of the incentive distribution rights. “At the market” equity program: On July 2, 2020, the Partnership entered into an “at the market” or “ ATM” Sales Agreement (the “Original Agreement”) for the offer and sale of common units representing limited partnership interests, having an aggregate offering price of up to $30.0 million. On August 19, 2020, the Partnership terminated the Original Agreement and entered into an amended and restated ATM Sales Agreement (the “A&R Sales Agreement”), for the offer and sale of common units representing limited partnership interests, having an aggregate offering price of up to $30.0 million. No common units were sold under the ATM Sales Agreement during the six-month periods ended June 30, 2023 and 2022. |
Earnings per Unit
Earnings per Unit | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per Unit | |
Earnings per Unit | 10. Earnings per Unit: The Partnership calculates earnings/ (losses) 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 9 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 six-month periods ended June 30, 2023 and 2022. 10. Earnings per Unit (continued): The calculations of the basic and diluted earnings per common unit are presented below: Six months ended June 30, 2023 2022 Partnership’s Net income $ 24,030 $ 34,999 Less: Net Income attributable to preferred unitholders 5,781 5,781 General Partner’s interest in Net Income 19 29 Net income attributable to common unitholders $ 18,230 $ 29,189 Weighted average number of common units outstanding, basic and diluted 36,802,247 36,802,247 Earnings per common unit, basic and diluted $ 0.50 $ 0.79 |
Interest and Finance Costs
Interest and Finance Costs | 6 Months Ended |
Jun. 30, 2023 | |
Interest and Finance Costs | |
Interest and Finance Costs | 11. Interest and Finance Costs: The amounts in the unaudited interim condensed consolidated statements of comprehensive income are analyzed as follows: Six months ended June 30, 2023 2022 Interest expense (Note 6) $ 18,610 $ 9,764 Amortization of deferred financing fees 862 1,047 Other 77 230 Total $ 19,549 $ 11,041 |
Derivative financial instrument
Derivative financial instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative financial instruments | |
Derivative financial instruments | 12. Derivative financial instruments: On May 7, 2020, the Partnership entered into a floating to fixed interest rate swap transaction with a leading international bank, for the purpose of managing its exposure to LIBOR variability that the Partnership has under the $675 Million Credit Facility. The swap transaction, which was effective from June 29, 2020, provided for a fixed 3-month LIBOR rate of 0.41% based on notional values that reflect the amortization schedule of 100% of the Partnership’s debt outstanding under its $675 Million Credit Facility, until the $675 Million Credit Facility matures in September 2024. The swap agreement did not meet hedge accounting criteria and, therefore, changes in its fair value are reflected in earnings. On June 21, 2023 the Partnership signed an agreement with its counterparty for the replacement of the abovementioned fixed 3-month LIBOR rate with the fixed 3-month SOFR rate due to the discontinuation of the LIBOR. As of June 30, 2023 and December 31, 2022, the outstanding notional amount of Partnership’s interest rate swap was $495.0 million and $519.0 million, respectively. The fair value of this interest rate swap outstanding at June 30, 2023 and December 31, 2022 amounted to an asset of $28,283 and $34,877 respectively (Note 7), and is included in Derivative financial instruments in the unaudited consolidated condensed balance sheets as presented in the table below. As of June 30, 2023 and 2022, the Partnership recognized a gain on derivative financial instruments of $5.0 million and $21.2 million, respectively, which is included in Gain on derivative financial instrument in the accompanying unaudited interim condensed consolidated statements of comprehensive income as presented in the table below. The realized gain on non-hedging interest rate swaps included in “Gain on derivative financial instruments, net” amounted to $11.7 million and $0.6 million, for the six-month periods ended June 30, 2023 and 2022, respectively. 12. Derivative financial instruments (continued): Tabular Disclosure of Derivatives Location Derivatives are recorded in the balance sheet on a net basis by counterparty when a legal right of setoff exists. The following tables present information with respect to the fair values of the derivative instrument reflected in the balance sheet on a gross basis by transaction. The tables also present information with respect to gains/ (losses) on derivative positions reflected in the unaudited interim condensed consolidated Statement of Comprehensive Income. Derivative Instruments not designated as hedging instruments – Balance Sheet Location Assets June 30, December 31, Derivative Balance Sheet Location 2023 2022 Interest rate swap Derivative financial Instruments, Current 24,034 22,544 Interest rate swap Derivative financial Instruments, non- Current 4,249 12,333 Total $ 28,283 $ 34,877 Derivatives Instruments not designated as Hedging Instruments – Net effect on the Consolidated Condensed Statements of Comprehensive Income Six months ended June 30, Net Realized and Unrealized Gain Recognized on Statement of Comprehensive Income Location 2023 2022 Interest rate swap Gain on derivative instruments 5,023 21,231 Total $ 5,023 $ 21,231 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events | |
Subsequent Events | 13. Subsequent Events: (a) Quarterly Series A Preferred unit cash distribution (b) Quarterly Series B Preferred unit cash distribution: |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted |
Recent Accounting Pronouncements - Not Yet Adopted | Recent Accounting Pronouncements – Not Yet Adopted Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited interim financial statements for the six months ended June 30, 2023. |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation and General Information | |
Schedule of vessel owning subsidiaries | Country of incorporation/ Delivery date from Company Name formation Vessel Name shipyard Delivery date to Partnership Cbm Capacity Pegasus Shipholding S.A. (“Pegasus”) Marshall Islands Clean Energy March 2007 October 2013 149,700 Lance Shipping S.A. (“Lance”) Marshall Islands Ob River July 2007 October 2013 149,700 Seacrown Maritime Ltd. (“Seacrown”) Marshall Islands Amur River January 2008 October 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 |
Schedule of non-vessel owning subsidiaries | Company Name Country of incorporation/formation Purpose of incorporation Dynagas Equity Holding Limited (“Dynagas Equity”) 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 were limited to the co-issuance of the 2019 Notes, discussed under our Annual Report on Form 20-F for the year ended December 31, 2022, which was filed with the SEC, on April 21, 2023 and engaging in other activities incidental thereto. Arctic LNG Carriers Ltd. 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 Term Loan discussed under Note 6. |
Schedule of partnership's revenues | Charterer 2023 2022 A 45 % 44 % B 39 % 40 % C 16 % 16 % Total 100 % 100 % |
Transactions with related par_2
Transactions with related parties (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Transactions with related parties, | |
Schedule of transactions with related parties - condensed consolidated statements of comprehensive income | Six months ended June 30 2023 2022 Included in voyage expenses (including related party) Charter hire commissions (a) $ 811 $ 826 Included in general and administrative expenses (including related party) Executive services fee (c) $ 291 $ 296 Administrative services fee (d) $ 60 $ 60 Management fees-related party Management fees (a) $ 3,168 $ 3,076 |
Schedule of transactions with related parties - balance sheet | Period/Year ended June 30, December 31, 2023 2022 Assets: Security deposits to Manager (a) $ 1,350 $ 1,350 Total assets due from related party, non-current $ 1,350 $ 1,350 Liabilities included in Due to related party: Working capital due to Manager (a) $ 74 $ 836 Executive service charges due to Manager (c) $ 176 $ 135 Administrative service charges due to Manager (e) $ — $ 30 Management fees due to Manager (a) $ — $ — Other Partnership expenses due to Manager (a) $ 208 $ 471 Total liabilities due to related party, current $ 458 $ 1,472 |
Vessels, net (Tables)
Vessels, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Vessels, net, | |
Schedule of consolidated condensed balance sheets | Vessel Accumulated Net Book Cost Depreciation Value Balance December 31, 2022 $ 1,171,630 $ (346,525) $ 825,105 Additions — — — Depreciation — (15,816) (15,816) Balance June 30, 2023 $ 1,171,630 $ (362,341) $ 809,289 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Long-Term Debt, | |
Schedule of amounts shown in the consolidated condensed balance sheets are analyzed | Period/ Year Ended June 30, December 31, Debt instruments Borrowers-Issuers 2023 2022 $675 Million Credit Facility Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd. 444,642 499,912 Total debt $ 444,642 $ 499,912 Less deferred financing fees (1,863) (2,879) Total debt, net of deferred finance costs $ 442,779 $ 497,033 Less current portion, net of deferred financing fees $ (46,447) $ (46,252) Long-term debt, net of current portion and deferred financing fees $ 396,332 $ 450,781 |
Schedule of annual principal payments | Year ending June 30, Amount 2024 $ 48,000 2025 396,642 Total long-term debt $ 444,642 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Schedule of fair value of assets and liabilities by valuation technique on a recurring basis | Significant Other Observable Inputs (Level 2) June 30, December 31, Recurring measurements: 2023 2022 Interest rate swaps $ 28,283 $ 34,877 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies, | |
Schedule of the Partnership's future minimum contracted lease payments | Period/ Year ending December 31, Amount 2023 (period) 75,604 2024 158,168 2025 153,910 2026 155,508 2027 and thereafter 679,122 Total $ 1,222,312 |
Partners' Equity (Tables)
Partners' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Partners' Equity | |
Schedule of partners' equity | Total Quarterly Distribution Target General Holders Amount Unitholders Partner 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 % |
Earnings per Unit (Tables)
Earnings per Unit (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per Unit | |
Schedule of calculations of the basic and diluted earnings per common unit | Six months ended June 30, 2023 2022 Partnership’s Net income $ 24,030 $ 34,999 Less: Net Income attributable to preferred unitholders 5,781 5,781 General Partner’s interest in Net Income 19 29 Net income attributable to common unitholders $ 18,230 $ 29,189 Weighted average number of common units outstanding, basic and diluted 36,802,247 36,802,247 Earnings per common unit, basic and diluted $ 0.50 $ 0.79 |
Interest and Finance Costs (Tab
Interest and Finance Costs (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Interest and Finance Costs | |
Schedule of unaudited interim condensed consolidated statements of comprehensive income | Six months ended June 30, 2023 2022 Interest expense (Note 6) $ 18,610 $ 9,764 Amortization of deferred financing fees 862 1,047 Other 77 230 Total $ 19,549 $ 11,041 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative financial instruments | |
Schedule of Derivative Instruments not designated as hedging instruments - Balance Sheet Location | Assets June 30, December 31, Derivative Balance Sheet Location 2023 2022 Interest rate swap Derivative financial Instruments, Current 24,034 22,544 Interest rate swap Derivative financial Instruments, non- Current 4,249 12,333 Total $ 28,283 $ 34,877 |
Schedule of Derivatives Instruments not designated as Hedging Instruments - Net effect on the Consolidated Condensed Statements of comprehensive Income | Six months ended June 30, Net Realized and Unrealized Gain Recognized on Statement of Comprehensive Income Location 2023 2022 Interest rate swap Gain on derivative instruments 5,023 21,231 Total $ 5,023 $ 21,231 |
Basis of Presentation and Gen_3
Basis of Presentation and General Information - Vessel Owning Subsidiaries (Details) | 6 Months Ended |
Jun. 30, 2023 m³ | |
Pegasus Shipholding S.A. | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Cbm Capacity | 149,700 |
Lance shipping S.A. | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Cbm Capacity | 149,700 |
Seacrown Maritime Ltd | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Cbm Capacity | 149,700 |
Fareastern Shipping Limited | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Malta |
Cbm Capacity | 155,000 |
Navajo Marine Limited | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Cbm Capacity | 155,000 |
Solana Holding Ltd. | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Cbm Capacity | 155,000 |
Basis of Presentation and Gen_4
Basis of Presentation and General Information - Non-Vessel Owning Subsidiaries (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Dynagas Operating LP | |
Basis of Presentation and General Information | |
Ownership interest in subsidiary | 100% |
Basis of Presentation and Gen_5
Basis of Presentation and General Information - Major Charterers (Details) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Basis of Presentation and General Information | ||
Percentage of time charter revenue | 100% | 100% |
Charterer A | ||
Basis of Presentation and General Information | ||
Percentage of time charter revenue | 45% | 44% |
Charterer B | ||
Basis of Presentation and General Information | ||
Percentage of time charter revenue | 39% | 40% |
Charterer C | ||
Basis of Presentation and General Information | ||
Percentage of time charter revenue | 16% | 16% |
Basis of Presentation and Gen_6
Basis of Presentation and General Information - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||
Sep. 18, 2024 | Nov. 18, 2013 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Basis of Presentation and General Information | |||||
Entity incorporation, date of incorporation | May 30, 2013 | ||||
Percentage of partnership earned revenue | 39% | 40% | |||
Cash and cash equivalents | $ 52,898 | $ 50,233 | $ 48,598 | ||
Working capital deficit | 21,200 | ||||
Debt instrument face value | 675,000 | ||||
Remaining amount outstanding | 675,000 | ||||
Trade accounts receivable | $ 8,574 | $ 67 | |||
Percentage of time charter revenue | 100% | 100% | |||
Dynagas Holding Ltd | |||||
Basis of Presentation and General Information | |||||
Ownership percentage | 42.40% | ||||
Dynagas Operating GP LLC | Dynagas Operating GP LLC | |||||
Basis of Presentation and General Information | |||||
Ownership percentage | 100% | ||||
General partner interest in dynagas LNG partners LP | 100% | ||||
Dynagas Operating LP | |||||
Basis of Presentation and General Information | |||||
Ownership percentage | 100% | ||||
Subsequent event | |||||
Basis of Presentation and General Information | |||||
Debt instrument face value | $ 675,000 | ||||
Remaining amount outstanding | $ 384,600 | ||||
Revenue Benchmark | |||||
Basis of Presentation and General Information | |||||
Percentage of time charter revenue | 10% | ||||
$30 million sponsor facility | Dynagas Holding Ltd | |||||
Basis of Presentation and General Information | |||||
Revolving credit facility borrowing capacity | $ 30,000 | ||||
$30 million sponsor facility | Dynagas Holding Ltd | |||||
Basis of Presentation and General Information | |||||
Revolving credit facility borrowing capacity | $ 30,000 | ||||
General Partner | Dynagas Holding Ltd | |||||
Basis of Presentation and General Information | |||||
General partner interest in dynagas LNG partners LP | 0.10% | ||||
IPO | |||||
Basis of Presentation and General Information | |||||
Issuance of units in public offering | 8,250,000 | ||||
Shares issued, price per share | $ 18 | ||||
IPO | Dynagas Holding Ltd | |||||
Basis of Presentation and General Information | |||||
Issuance of units in public offering | 4,250,000 | ||||
Shares issued, price per share | $ 18 |
Prepayments and other assets (D
Prepayments and other assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Prepayments and other assets | ||
Prepayments and other assets | $ 3,621 | $ 0 |
Transactions with related par_3
Transactions with related parties - Statements of Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Transactions with related parties, | ||
Charter hire commissions | $ 811 | $ 826 |
Executive services fee | 291 | 296 |
Administrative service fee | 60 | 60 |
Management fees | $ 3,168 | $ 3,076 |
Transactions with related par_4
Transactions with related parties - Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Related party transaction | |||
Total assets due from related party, non-current | $ 1,350 | $ 1,350 | $ 1,350 |
Total liabilities due to related party, current | 458 | 1,472 | |
Security deposits to Manager | |||
Related party transaction | |||
Total assets due from related party, non-current | 1,350 | 1,350 | |
Working capital due to Manager | |||
Related party transaction | |||
Total liabilities due to related party, current | 74 | 836 | |
Executive service charges due to Manager | |||
Related party transaction | |||
Total liabilities due to related party, current | 176 | 135 | 135 |
Administrative service charges due to Manager | |||
Related party transaction | |||
Total liabilities due to related party, current | 30 | ||
Other Partnership expenses due to Manager | |||
Related party transaction | |||
Total liabilities due to related party, current | $ 208 | $ 471 | $ 471 |
Transactions with related par_5
Transactions with related parties (Details) € in Thousands | 6 Months Ended | 12 Months Ended | ||||||||
Nov. 18, 2018 | Nov. 14, 2018 | Dec. 30, 2014 USD ($) | Mar. 21, 2014 | Nov. 18, 2013 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related party transaction | ||||||||||
Management fees-related party | $ 3,168,000 | $ 3,076,000 | ||||||||
Charter hire commissions | 811,000 | 826,000 | ||||||||
Due from related party | 1,350,000 | 1,350,000 | $ 1,350,000 | |||||||
Due to related party | 458,000 | 1,472,000 | ||||||||
Annual executive services fee | $ 291,000 | 296,000 | ||||||||
Foreign currency exchange rate | 1.0812 | |||||||||
Administrative service fee | $ 60,000 | 60,000 | ||||||||
Dynagas Holding Ltd | ||||||||||
Related party transaction | ||||||||||
Daily management fee | $ 2,900 | 2,800 | ||||||||
Master Agreement | ||||||||||
Related party transaction | ||||||||||
Daily management fee | $ 2,750,000 | |||||||||
Management fees annual upward percentage adjustment | 3% | |||||||||
Administrative services days termination notice | 6 months | |||||||||
Related party transaction, terms and manner of settlement | 5% | 5% | ||||||||
Management fees-related party | $ 3,168,000 | 3,076,000 | ||||||||
Charter hire commission payable to the management company | 1.25% | 1.25% | ||||||||
Charter hire commissions | $ 811,000 | 826,000 | ||||||||
Due from related party | 1,350,000 | 1,350,000 | ||||||||
Dynagas Ltd | Working capital advances | ||||||||||
Related party transaction | ||||||||||
Due to related party | 74,000 | 836,000 | ||||||||
$30 million sponsor facility | Dynagas Holding Ltd | ||||||||||
Related party transaction | ||||||||||
Revolving credit facility borrowing capacity | $ 30,000,000 | |||||||||
Debt instrument term | 5 years | |||||||||
Amount drawn | 0 | $ 0 | ||||||||
$30 million extended sponsor facility | ||||||||||
Related party transaction | ||||||||||
Debt instrument term | 5 years | |||||||||
Executive services agreement | ||||||||||
Related party transaction | ||||||||||
Annual executive services fee | $ 582,000 | € 538 | ||||||||
Executive services agreement initial term | ||||||||||
Related party transaction | ||||||||||
Executive services agreement duration period | 5 years | |||||||||
Executive services agreement automatic renewal | ||||||||||
Related party transaction | ||||||||||
Executive services agreement duration period | 5 years | |||||||||
Administrative services agreement | ||||||||||
Related party transaction | ||||||||||
Administrative services days termination notice | 120 days | 120 days | ||||||||
Administrative service fee | $ 60,000 | $ 60,000 | ||||||||
Administrative services agreement | Monthly fee | ||||||||||
Related party transaction | ||||||||||
Administrative service fee | $ 10,000 |
Vessels, net_ - consolidated co
Vessels, net: - consolidated condensed balance sheets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Property, plant and equipment | ||
Balance beginning of period | $ 825,105 | |
Depreciation | (15,816) | $ (15,739) |
Balance end of period | 809,289 | |
Vessel Cost | ||
Property, plant and equipment | ||
Balance beginning of period | 1,171,630 | |
Balance end of period | 1,171,630 | |
Accumulated Depreciation | ||
Property, plant and equipment | ||
Balance beginning of period | (346,525) | |
Depreciation | (15,816) | |
Balance end of period | (362,341) | |
Net Book Value | ||
Property, plant and equipment | ||
Balance beginning of period | 825,105 | |
Depreciation | (15,816) | |
Balance end of period | $ 809,289 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities And Senior Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Long-Term Debt | ||
Total debt | $ 444,642 | $ 499,912 |
Less deferred financing fees | (1,863) | (2,879) |
Total debt, net of deferred finance costs | 442,779 | 497,033 |
Less current portion, net of deferred financing fees | (46,447) | (46,252) |
Long-term debt, net of current portion and deferred financing fees | 396,332 | 450,781 |
$675 Million Credit Facility | Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd | ||
Long-Term Debt | ||
$675 Million Credit Facility | $ 444,642 | $ 499,912 |
Long-Term Debt - Principal Paym
Long-Term Debt - Principal Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Long-Term Debt, | ||
2024 | $ 48,000 | |
2025 | 396,642 | |
Total long-term debt | $ 444,642 | $ 499,912 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | 1 Months Ended | 6 Months Ended | |||||||
Oct. 30, 2019 USD ($) | Sep. 25, 2019 USD ($) | Sep. 18, 2019 USD ($) installment | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 27, 2023 USD ($) | Dec. 31, 2022 USD ($) | Oct. 12, 2022 USD ($) | |
Long-Term Debt | |||||||||
Debt instrument face value | $ 675,000,000 | ||||||||
Line of credit facility, repayment installments | installment | 20 | ||||||||
Restricted cash | $ 31,270,000 | ||||||||
Weighted average interest rate | 7.80% | 3.50% | |||||||
Interest incurred | $ 18,610,000 | $ 9,764,000 | |||||||
Loss on Debt extinguishment | $ 154,000 | ||||||||
$250 Million Senior Unsecured Notes due 2019 (2019 Notes) | |||||||||
Long-Term Debt | |||||||||
Amount used to repay | $ 204,600,000 | ||||||||
$675 Million Senior Secured Term Loan Facility ($675 Million Credit Facility) | |||||||||
Long-Term Debt | |||||||||
Debt instrument face value | $ 675,000,000 | ||||||||
Amount drawn | $ 675,000,000 | ||||||||
Line of Credit Facility, Initiation Date | Sep. 18, 2019 | ||||||||
Line of Credit Facility, Prepayment Date | October 12, 2022 | ||||||||
$480 Million Senior Secured Term Loan Facility | |||||||||
Long-Term Debt | |||||||||
Debt repaid | $ 470,400,000 | ||||||||
Supplemental Agreement to the $675 Million Credit Facility | |||||||||
Long-Term Debt | |||||||||
Voluntary prepayment | $ 18,730,000 | ||||||||
Principal and interest repayments | $ 1,789,000 | ||||||||
Line of Credit Facility, Initiation Date | Oct. 11, 2022 | ||||||||
Write-off of deferred financing fees | $ 123,000 | ||||||||
Loss on Debt extinguishment | 2,072,000 | ||||||||
Principal amount waived | 2,195,000 | ||||||||
Lenders of $675 Million credit facility | |||||||||
Long-Term Debt | |||||||||
Voluntary prepayment | $ 31,300,000 | $ 31,300,000 | |||||||
Line of Credit Facility, Initiation Date | Mar. 27, 2023 | ||||||||
Line of Credit Facility, Prepayment Date | March 27, 2023 | ||||||||
Write-off of deferred financing fees | $ 154,000 | ||||||||
Loss on Debt extinguishment | $ 154,000 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Measurements (Details) - Level 2 - Interest rate swaps - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair value measurements | ||
Fair value measured | $ 34,877 | |
Recurring | ||
Fair value measurements | ||
Fair value measured | $ 28,283 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value Measurements | |||
Due from related parties non current fair value - determined through level 3 inputs | $ 810 | ||
Due from related party | 1,350 | $ 1,350 | $ 1,350 |
Debt instrument face value | $ 675,000 |
Commitments and Contingencies -
Commitments and Contingencies - Contracted lease payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Commitments and Contingencies, | |
2023 (period) | $ 75,604 |
2024 | 158,168 |
2025 | 153,910 |
2026 | 155,508 |
2027 and thereafter | 679,122 |
Total | $ 1,222,312 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Master Agreement $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Commitments and Contingencies | |
Charter hire commission payable to the management company | 1.25% |
Commission payable over the minimum contractual charter revenues | $ 15,279 |
Inflation rate adjustment to management fees | 3% |
Management fees | $ 53,685 |
Partners' Equity (Details)
Partners' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||||||||
Apr. 27, 2023 | Apr. 20, 2023 | Jan. 31, 2023 | Jan. 20, 2023 | Aug. 19, 2020 | Jul. 02, 2020 | Oct. 23, 2018 | Jul. 20, 2015 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Partners' Equity: | |||||||||||
Common unitholders - units outstanding | 36,802,247 | 36,802,247 | |||||||||
General partner outstanding | 35,526 | 35,526 | |||||||||
A&R Sales Agreement | |||||||||||
Partners' Equity: | |||||||||||
Issuance of units in public offering | 0 | 0 | |||||||||
Aggregate offering price | $ 30,000 | $ 30,000 | |||||||||
General Partner [Member] | |||||||||||
Partners' Equity: | |||||||||||
Payments to general partner | $ 0 | $ 0 | |||||||||
Sponsor [Member] | |||||||||||
Partners' Equity: | |||||||||||
Common unitholders - units issued | 15,595,000 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Partners' Equity: | |||||||||||
Issuance of units in public offering | 3,000,000 | ||||||||||
Liquidation preference | $ 25 | ||||||||||
Proceeds from the offering | $ 72,300 | ||||||||||
Underwriting discount | 2,400 | ||||||||||
Offering expenses | $ 300 | ||||||||||
Preferred units, issued | 3,000,000 | 3,000,000 | |||||||||
Fixed payment rate per annum | 9% | 9% | |||||||||
Redemption price | $ 25 | ||||||||||
Series A Preferred Stock [Member] | Distribution From November 12, 2021 to February 11, 2022 | |||||||||||
Partners' Equity: | |||||||||||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | ||||||||||
Series A Preferred Stock [Member] | Distribution From February 12, 2022 to May 11, 2022 | |||||||||||
Partners' Equity: | |||||||||||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | ||||||||||
Series B Preferred Stock [Member] | |||||||||||
Partners' Equity: | |||||||||||
Issuance of units in public offering | 2,200,000 | ||||||||||
Liquidation preference | $ 25 | ||||||||||
Proceeds from the offering | $ 53,000 | ||||||||||
Offering expenses | $ 2,000 | ||||||||||
Preferred units, issued | 2,200,000 | 2,200,000 | |||||||||
Preferred units, outstanding | 2,200,000 | ||||||||||
Series B Preferred Stock [Member] | From November 2023 | |||||||||||
Partners' Equity: | |||||||||||
Preferred Stock Dividend Basis Spread On Variable Rate | 5.593% | ||||||||||
Series B Preferred Stock [Member] | Any Time On Or After November 2023 [Member] | |||||||||||
Partners' Equity: | |||||||||||
Redemption price | $ 25 | ||||||||||
Series B Preferred Stock [Member] | Distribution From And Issue Date To But Excluding November 2023 | |||||||||||
Partners' Equity: | |||||||||||
Fixed payment rate per annum | 8.75% | ||||||||||
Series B Preferred Stock [Member] | Distribution From November 22, 2021 to February 21, 2022 | |||||||||||
Partners' Equity: | |||||||||||
Distribution made to limited partner, distributions paid per unit | $ 0.546875 | ||||||||||
Series B Preferred Stock [Member] | Distribution From February 22, 2022 to May 21, 2022 | |||||||||||
Partners' Equity: | |||||||||||
Distribution made to limited partner, distributions paid per unit | $ 0.546875 |
Partners' Equity - Increasing p
Partners' Equity - Increasing percentage of cash distributions (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares | |
Total Quarterly Distribution Target Amount | Minimum Quarterly Distribution | |
Partners' Equity: | |
Distribution target amount per unit | $ 0.365 |
Total Quarterly Distribution Target Amount | First Target Distribution | |
Partners' Equity: | |
Distribution target amount per unit | 0.420 |
Total Quarterly Distribution Target Amount | Second Target Distribution | Minimum | |
Partners' Equity: | |
Distribution target amount per unit | 0.420 |
Total Quarterly Distribution Target Amount | Second Target Distribution | Maximum | |
Partners' Equity: | |
Distribution target amount per unit | 0.456 |
Total Quarterly Distribution Target Amount | Third Target Distribution | Minimum | |
Partners' Equity: | |
Distribution target amount per unit | 0.456 |
Total Quarterly Distribution Target Amount | Third Target Distribution | Maximum | |
Partners' Equity: | |
Distribution target amount per unit | 0.548 |
Total Quarterly Distribution Target Amount | Thereafter Target Distribution | |
Partners' Equity: | |
Distribution target amount per unit | $ 0.548 |
Unitholders | Minimum Quarterly Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 99.90% |
Unitholders | First Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 99.90% |
Unitholders | Second Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 85% |
Unitholders | Third Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 75% |
Unitholders | Thereafter Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 50% |
General Partner [Member] | Minimum Quarterly Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
General Partner [Member] | First Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
General Partner [Member] | Second Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
General Partner [Member] | Third Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
General Partner [Member] | Thereafter Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
Holders of IDRs | Minimum Quarterly Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0% |
Holders of IDRs | First Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0% |
Holders of IDRs | Second Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 14.90% |
Holders of IDRs | Third Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 24.90% |
Holders of IDRs | Thereafter Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 49.90% |
Earnings per Unit (Details)
Earnings per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings per Unit | ||
Partnership's Net income | $ 24,030 | $ 34,999 |
Less: | ||
Net Income attributable to preferred unitholders | 5,781 | 5,781 |
General Partner's interest in Net Income | 19 | 29 |
Net income attributable to common unitholders | $ 18,230 | $ 29,189 |
Weighted average number of common units outstanding, basic | 36,802,247 | 36,802,247 |
Earnings per common unit, basic | $ 0.50 | $ 0.79 |
Interest and Finance Costs (Det
Interest and Finance Costs (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Interest and Finance Costs | ||
Interest expense | $ 18,610,000 | $ 9,764,000 |
Amortization of deferred financing fees | 862,000 | 1,047,000 |
Other | 77,000 | 230,000 |
Total | $ 19,549,000 | $ 11,041,000 |
Derivative financial instrume_3
Derivative financial instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | May 07, 2020 | |
Derivative financial instruments | ||||
Derivative, Gain on Derivative, Net | $ 5,023 | $ 21,231 | ||
Interest rate swap | ||||
Derivative financial instruments | ||||
Derivative notional amount | 495,000 | $ 519,000 | ||
Fair value of derivative asset | 28,283 | $ 34,877 | ||
Derivative, Gain on Derivative, Net | 5,000 | 21,200 | ||
Gain on derivative financial instrument | $ 11,700 | $ 600 | ||
$675 million senior secured term loan facility ($675 Million Credit Facility) | Interest rate swap | ||||
Derivative financial instruments | ||||
Derivative, fixed interest rate | 0.41% |
Derivative financial instrume_4
Derivative financial instruments - Not designated as Hedging Instrument - Balance Sheet Location (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative financial instruments | ||
Derivative Asset, Current | $ 24,034 | $ 22,544 |
Derivative Asset, Noncurrent | 4,249 | 12,333 |
Interest rate swap | Balance sheet location | ||
Derivative financial instruments | ||
Derivative Asset, Current | 24,034 | 22,544 |
Derivative Asset, Noncurrent | 4,249 | 12,333 |
Derivative Asset, Total | $ 28,283 | $ 34,877 |
Derivative financial instrume_5
Derivative financial instruments - Not Designated as Hedging Instrument - Net effect on the Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative financial instruments | ||
Derivative, Gain on Derivative, Net | $ 5,023 | $ 21,231 |
Interest rate swap | ||
Derivative financial instruments | ||
Derivative, Gain on Derivative, Net | 5,000 | 21,200 |
Interest rate swap | Net Realized and Unrealized Gain/ (Loss) Recognized on Statement of Income Location | ||
Derivative financial instruments | ||
Derivative, Gain on Derivative, Net | $ 5,023 | $ 21,231 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event - $ / shares | Jul. 31, 2023 | Jul. 21, 2023 |
Quarterly Unit Cash Distribution from May 12, 2023 to August 11, 2023 | Series A Preferred | ||
Subsequent Events | ||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | |
Quarterly Unit Cash Distribution from May 22, 2023 to August 21, 2023 | Series B Preferred | ||
Subsequent Events | ||
Distribution made to limited partner, distributions paid per unit | $ 0.546875 |