Dynagas LNG Partners LP Declares Cash Distribution on Its Series A Preferred units
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Insights
The declaration of a cash distribution of $0.5625 per unit on Dynagas LNG Partners LP's Series A Cumulative Redeemable Perpetual Preferred Units is a significant event for current and potential investors. This distribution indicates a stable cash flow to preferred unit holders, which is often seen as a positive signal of the company's financial health and operational stability. The consistency of the distribution, being the thirty-fourth sequential cash distribution, may be viewed as a testament to the company's ability to generate steady earnings, especially in the volatile energy sector.
Investors typically view preferred units as a hybrid between bonds and stocks, offering a fixed income like bonds, with the potential for capital appreciation like stocks. The fixed distributions provide a predictable income stream, which can be particularly attractive in a low-interest rate environment. However, it is essential to consider the sustainability of these payments in the context of the company's overall financial performance, including revenue, debt levels and the broader market conditions affecting the LNG industry.
From a market perspective, LNG carriers like Dynagas LNG Partners LP play a crucial role in the global energy supply chain, as they facilitate the transportation of liquefied natural gas across oceans. The demand for LNG is influenced by various factors, including geopolitical developments, environmental policies and global economic growth. As nations increasingly turn to cleaner energy sources, the LNG market may experience growth, potentially benefiting carriers like Dynagas.
It is important to analyze the competitive landscape within which Dynagas operates. Factors such as charter rates, the age and efficiency of the fleet and long-term contracts can significantly impact the company's market position and financial performance. The declared cash distribution might reflect confidence in the company's ability to maintain or improve its market position in the face of these industry dynamics.
ATHENS, Greece, Jan. 22, 2024 (GLOBE NEWSWIRE) -- Dynagas LNG Partners LP (the “Partnership”) (NYSE: “DLNG”), an owner and operator of LNG carriers, today announced that its Board of Directors has declared a cash distribution of
The cash distribution is payable on February 12, 2024 to all preferred unit holders of record as of February 5, 2024.
Distributions on the Series A Preferred Units will be payable quarterly in arrears on the 12th day (unless the 12th falls on a weekend or public holiday, in which case the payment date is moved to the next business day) of February, May, August and November of each year, when, as and if declared by our Board of Directors. This is the thirty-fourth sequential cash distribution on the Series A Preferred Units since they began trading on the NYSE.
The Partnership has 3,000,000 Series A Preferred Units outstanding as of the date of this press release.
About Dynagas LNG Partners LP
Dynagas LNG Partners LP. (NYSE: DLNG) is a master limited partnership which owns and operates liquefied natural gas (LNG) carriers employed on multi-year charters. The Partnership’s current fleet consists of six LNG carriers, with aggregate carrying capacity of approximately 914,000 cubic meters. Visit the Partnership’s website at www.dynagaspartners.com
Contact Information:
Dynagas LNG Partners LP
Attention: Michael Gregos
Tel. +30 210 8917960
Email: management@dynagaspartners.com
Investor Relations/ Financial Media:
Nicolas Bornozis/Markella Kara
Capital Link, Inc.
230 Park Avenue, Suite 1540
New York, NY 10169
Tel. (212) 661-7566
E-mail: dynagas@capitallink.com
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Partnership desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “expected,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination by the Partnership’s management of historical operating trends, data contained in its records and other data available from third parties. Although the Partnership believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Partnership’s control, the Partnership cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Partnership’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for Liquefied Natural Gas (LNG) shipping capacity, changes in the Partnership’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Partnership’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Partnership disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
FAQ
What is the cash distribution amount declared by Dynagas LNG Partners LP for its Series A Preferred Units?
When will the cash distribution be payable to the preferred unit holders of Dynagas LNG Partners LP?
How often are distributions on the Series A Preferred Units payable?
How many Series A Preferred Units are outstanding for Dynagas LNG Partners LP?
