Dynagas LNG Partners L.P. Reports First Quarter 2014 Results

Dynagas LNG Partners L.P. Reports First Quarter 2014 Results 
ATHENS, GREECE -- (Marketwired) -- 05/15/14 --  Dynagas LNG Partners
LP (NASDAQ: DLNG) ("Dynagas Partners" or the "Partnership"), an owner
and operator of LNG carriers, today announced results (unaudited) for
the three months ended March 31, 2014. 
First Quarter Highlights:  


 
--  Net income for the three months ended March 31, 2014 of $11.0 million;
--  Distributable Cash Flow ** of $12.3 million during the first quarter
    of 2014; and
--  Adjusted EBITDA ** for the three month period ended March 31, 2014 of
    $16.3 million.

  
** Adjusted EBITDA and Distributable Cash Flow are not recognized
measurements under U.S. GAAP. Please refer to the definitions and
reconciliation of these measurements to the most directly comparable
financial measures calculated and presented in accordance with U.S.
GAAP in Appendix B. 
Recent Developments: 
Quarterly Cash Distribution: On April 25, 2014, the Partnership
declared a cash distribution for the first quarter of 2014 of $0.365
per unit. The cash distribution was paid on May 12, 2014, to all
unitholders of record as of May 5, 2014.  
New 13-year time charter contract for the Clean Force and amendment
of current contract expiration date: On April 17, 2014, the
Partnership entered into a new 13-year time-charter contract with
Gazprom Marketing & Trading Singapore Pte. Ltd ("Gazprom") for the
Clean Force, one of the Partnership's LNG Carriers. In connection
with the new Gazprom charter, the Partnership entered into an
agreement with BG Group Plc., the current charterer of the Clean
Force, to amend, at no cost to the Partnership, the expiration date
of the current time-charter contract from the third quarter of 2016
to July 2015, at which time the new Gazprom contract will take
effect. The Partnership's new 13-year Gazprom contract for the Clean
Force increases the Partnership's average contract duration from
approximately three years to approximately seven years.  
Acquisition of the LNG carrier Arctic Aurora: On April 17, 2014, the
Partnership entered into a Share Purchase Agreement to purchase from
Dynagas Holding Ltd. (our "Sponsor") 100% of the ownership interests
in the entity that owns and operates the Arctic Aurora, a 2013 built
155,000 cbm ice class LNG carrier, for an aggregate purchase price of
$235 million. The Arctic Aurora acquisition is subject to the
Partnership obtaining the funds necessary to pay the purchase price
and the satisfaction of certain closing conditions. The Partnership
expects to finance the acquisition with the net proceeds of a public
offering of its common units and a portion of the borrowings under a
new $340 million senior secured revolving credit facility. The Arctic
Aurora is currently operating under a time charter with Statoil ASA
("Statoil") with an initial term of five years that expires in July
2018. Statoil has the right to extend the charter for consecutive
additional one-year periods following the initial charter period.  
The Partnership expects this charter to provide it with total
contracted revenue of approximately $117.2 million based on an
expected delivery date of May 30, 2014, excluding options to extend
and assuming full utilization for 4.1 years, which is the remaining
term of the charter based on the earliest contract expiration date in
July 2018. The Partnership estimates that the Arctic Aurora
acquisition will generate annual gross revenues of approximately
$28.3 million, assuming full utilization for the full term of the
charter, and annual net cash from operations of approximately $21.7
million. Following the completion of this acquisition, the
Partnership's management intends to recommend to the Board an
increase in the Partnership's quarterly cash distribution per unit of
between $0.0225 and $0.0275 (or annualized increase of between $0.09
and $0.11 per unit), which would become effective for the
distribution with respect to the quarter ending June 30, 2014 on a
pro-rata basis after giving effect to the Arctic Aurora acquisition.
In addition, the acquisition of the Arctic Aurora broadens the
Partnership's customer base and reduces the weighted average age of
the Partnership's fleet from 6.1 years to 5.3 years based on an
expected delivery date of May 30, 2014. 
Commitment for a new Senior Secured Revolving Credit Facility: On
March 26, 2014, the Partnership entered into a binding commitment
letter with an affiliate of Credit Suisse Securities (USA) LLC for a
new $340 million Senior Secured Revolving Credit Facility which is
conditioned on the closing of Arctic Aurora acquisition. The facility
will bear interest at LIBOR plus a margin and will be payable in 17
consecutive equal quarterly payments of $5.0 million each and a
balloon payment of $255.0 million at maturity and which may be
extended under certain conditions. The Partnership intends to utilize
a portion of the amount it expects to draw down under this facility
to partially finance the Arctic Aurora acquisition and the balance to
refinance $214.1 million currently outstanding under the
Partnership's existing senior secured revolving facility (the "2013
Senior Secured Revolving Credit Facility").  
Financial Results Overview:  
For the results and the selected financial data presented herein, the
Partnership has compiled consolidated statements of income for the
three month periods ended March 31, 2014 and 2013, which were derived
from the unaudited condensed consolidated financial statements for
the periods presented. 


 
                                                                            
                          Three Month Period Ended                          
----------------------------------------------------------------------------
(In thousands of U.S. dollars, except per   March 31, 2014   March 31, 2013 
 unit data)                                   (unaudited)      (unaudited)  
Adjusted EBITDA(1)                         $         16,321 $         16,881
Net Income                                 $         11,029 $         11,207
Operating Income                           $         12,823 $         13,499
Distributable Cash Flow(1)                 $         12,268 $         10,963
Earnings per common unit basic and diluted $           0.37 $           0.52
                                                                            

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

 
Three month periods ended March 31, 2014 and 2013 
The Partnership reported net income attributable to unitholders of
$11.0 million for the three months ended March 31, 2014, or $0.37 per
basic and diluted unit, as compared to $11.2 million, or $0.52 per
basic and diluted unit, in the corresponding period of 2013.
Operating income for the first quarter of 2014 was $12.8 million,
compared to $13.5 million in the corresponding period of 2013.
Adjusted EBITDA for the first quarter of 2014 was $16.3 million
compared to $16.9 million for the first quarter of 2013. 
The Partnership's Distributable Cash Flow for the three months ended
March 31, 2014 was $12.3 million. Distributable Cash Flow is a
non-GAAP financial measure used by certain investors to assist in
evaluating a partnership's ability to make quarterly cash
distributions. 
The Partnership's operating results for the three months ended March
31, 2014 were primarily impacted by increased general and
administrative costs of approximately $0.6 million, mainly due to
additional fees and expenses as a result of being a public company
since November 2013. These increases to general and administrative
costs were mainly offset by an approximate $0.4 million decrease in
interest and finance costs mainly resulting from significantly lower
levels of weighted outstanding indebtedness in the first quarter of
2014 as compared to the corresponding period of 2013. 
Total operating expenses decreased, from approximately $3.2 million
or $11,863 per LNG carrier per day during the three month period
ended March 31, 2013 to $3.1 million or $11,570 per LNG carrier per
day in the three month period ended March 31, 2014. No special survey
and dry-dock repairs were incurred on any of our LNG carriers in the
periods under discussion. 
The average daily hire gross of commissions earned by our LNG
carriers of approximately $77,700 per day per vessel remained
substantially the same in the three month periods ended March 31,
2014 and 2013. During both quarters ended March 31, 2014 and 2013,
all of the Partnership's vessels operated at 100% utilization. 
Amounts relating to variations in period-on-period comparisons shown
in this section are derived from the condensed financials presented
below. 
Liquidity Position 
As of March 31, 2014, the Partnership reported cash of $30.8 million
(including cash minimum liquidity requirements imposed by our
lenders) and had available undrawn borrowings of $43.0 million under
the 2013 Senior Secured Revolving Credit Facility. Total indebtedness
as of March 31, 2014 was $214.1 million. The weighted average margin
over LIBOR accruing on the Partnership's outstanding bank debt during
the three months ended March 31, 2014 was approximately 3.1%. 
During the three month period ended March 31, 2014, the Partnership
generated net cash from operating activities of $14.5 million,
compared to $6.8 million in the same period in 2013, which is mainly
the effect of operating assets and liabilities and deferred revenue
variations between compared periods.  
As of March 31, 2014, the Partnership had total available liquidity
of $103.8 million (comprised of $30.8 million in cash, including
minimum cash liquidity requirements imposed by our lenders, and $73.0
million of borrowing capacity under its bank and Sponsor facilities). 
Time charter coverage 
As of May 14, 2014, the Partnership has contracted employment for
100% of its total fleet calendar days through 2016 and 67% of its
fleet calendar days for 2017. Time charter coverage in regards to
total fleet calendar days is calculated on the basis of the earliest
estimated redelivery dates.  
The contracted revenue backlog for the Partnership as of May 14, 2014
was approximately $535.0 million with average remaining contract
duration of 6.8 years. Our contract backlog may grow further in the
event we successfully complete the Arctic Aurora acquisition.(2) 


 
                                                                            
(2) We calculate our contracted revenue backlog by multiplying the          
    contractual daily hire rate by the minimum expected number of days      
    committed under the contracts (excluding options to extend), assuming   
    full utilization. The actual amount of revenues earned and the actual   
    periods during which revenues are earned may differ from the amounts and
    periods shown in the table below due to, for example, shipyard and      
    maintenance projects, downtime and other factors that result in lower   
    revenues than our average contract backlog per day.                     

 
About Dynagas LNG Partners LP
 Dynagas LNG Partners LP. (NASDAQ: DLNG)
is a growth-oriented partnership formed by Dynagas Holding Ltd. to
own, and operate liquefied natural gas (LNG) carriers employed on
multi-year charters. The current fleet of Dynagas Partners consists
of three LNG carriers, each of which has a carrying capacity of
approximately 150,000 cbm.  
Visit the Partnership's website at www.dynagaspartners.com 
Forward-Looking Statement 
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 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. 


 
                                                                            
                                                                            
APPENDIX A                                                                  
                          DYNAGAS LNG PARTNERS LP                           
           Unaudited Condensed Consolidated Statements of Income            
                                                                            
                                                                            
(In thousands of U.S. dollars except units and       Three Months Ended     
 per unit data)                                          March 31,          
                                                 -------------------------- 
                                                     2014          2013     
                                                 ------------  ------------ 
REVENUES                                                                    
Voyage revenues                                  $     21,009  $     21,168 
                                                 ------------  ------------ 
EXPENSES                                                                    
Voyage expenses                                          (175)         (176)
Voyage expenses-related party                            (264)         (244)
Vessel operating expenses                              (3,124)       (3,203)
General and administrative expenses                      (580)          (23)
Management fees related party                            (695)         (675)
Depreciation                                           (3,348)       (3,348)
Operating income                                       12,823        13,499 
                                                 ------------  ------------ 
Interest and finance costs                             (1,944)       (2,326)
Other, net                                                150            34 
                                                                            
                                                 ------------  ------------ 
Net Income                                       $     11,029  $     11,207 
                                                 ------------  ------------ 
Earnings per unit, basic and diluted                                        
                                                                            
Common unit (basic and diluted)                          0.37          0.52 
Subordinated unit (basic and diluted)                    0.37          0.52 
General Partner unit (basic and diluted)                 0.37          0.52 
Weighted average number of units outstanding,                               
 basic and diluted (1):                                                     
Common units                                       14,985,000     6,735,000 
Subordinated units                                 14,985,000    14,985,000 
General Partner units                                  30,000        30,000 
                                                                            
(1) On October 29, 2013, the Partnership issued i) to Dynagas Holding Ltd,  
    6,735,000 common units and 14,985,000 subordinated units and ii) to     
    Dynagas GP LLC (the "General Partner"), a company owned and controlled  
    by Dynagas Holding Ltd, 30,000 general partner units (the General       
    Partner Units, together with the issued common units and subordinated   
    units represent all of the outstanding interests in the Partnership).   
    The unit and per unit data included this section have been restated to  
    reflect the issuance of the above units for the period ended March 31,  
    2013.                                                                   
                                                                            
                                                                            
                                                                            
                           DYNAGAS LNG PARTNERS LP                          
                    Consolidated Condensed Balance Sheets                   
       (Expressed in thousands of U.S. Dollars--except for unit data)       
                                                                            
                                                   March 31,    December 31,
                                                      2014          2013    
                                                  (unaudited)    (audited)  
                                                 ------------- -------------
ASSETS                                                                      
CURRENT ASSETS:                                                             
Cash and cash equivalents                        $       8,768 $       5,677
Restricted cash                                                           --
Due from related party                                   1,447         1,456
Other current assets                                       806           473
                                                 ------------- -------------
Total current assets                                    11,021         7,606
                                                 ------------- -------------
                                                                            
FIXED ASSETS, NET:                                                          
Vessels, net                                           449,827       453,175
                                                 ------------- -------------
Total fixed assets, net                                449,827       453,175
                                                 ------------- -------------
OTHER NON CURRENT ASSETS:                                                   
Restricted Cash                                         22,000        22,000
Due from related party                                     675           675
Deferred revenue and other deferred charges              4,847         5,279
                                                 ------------- -------------
Total assets                                     $     488,370 $     488,735
                                                 ============= =============
                                                                            
LIABILITIES AND PARTNERS' EQUITY                                            
CURRENT LIABILITIES:                                                        
Current portion of long-term debt                $          -- $          --
Trade payables                                           3,324         3,743
Loan from related party                                     --         5,500
Due to related party                                       273            --
Accrued liabilities and other payables                     803         1,041
Unearned revenue                                         4,500         4,619
                                                 ------------- -------------
Total current liabilities                                8,900        14,903
                                                 ------------- -------------
Deferred revenue                                         1,895         2,048
Long-Term Debt, net of current portion                 214,085       214,085
                                                 ------------- -------------
Total non-current liabilities                          215,980       216,133
                                                 ------------- -------------
                                                                            
PARTNERS' EQUITY:                                                           
General partner: 30,000 units issued and                                    
 outstanding as at March 31, 2014 and December                              
 31, 2013                                                  155           150
Common unitholders: 14,985,000 units issued and                             
 outstanding as at March 31, 2014 and December                              
 31, 2013                                              185,862       182,969
Subordinated unitholders: 14,985,000 units                                  
 issued and outstanding as at March 31, 2014 and                            
 December 31, 2013                                      77,473        74,580
                                                 ------------- -------------
Total partners' equity                                 263,490       257,699
                                                 ------------- -------------
                                                                            
                                                 ------------- -------------
Total liabilities and partners' equity           $     488,370 $     488,735
                                                 ============= =============
                                                                            
                                                                            
                                                                            
                          DYNAGAS LNG PARTNERS LP                           
                   Consolidated Statements of Cash Flows                    
                  (Expressed in thousands of U.S. Dollars)                  
                                                                            
                                                   Three Months Ended       
                                                        March 31,           
                                                  2014            2013      
                                               (unaudited)     (unaudited)  
                                             --------------  -------------- 
Cash flows from Operating Activities:                                       
Net income:                                  $       11,029  $       11,207 
Adjustments to reconcile net income to net                                  
 cash provided by operating activities:                                     
Depreciation                                          3,348           3,348 
Amortization of deferred financing fees                 118             135 
Deferred revenue                                        161          (1,422)
Changes in operating assets and liabilities:                                
Trade receivables                                        20            (129)
Prepayments and other assets                           (353)            (77)
Due from/ to related party                              282            (483)
Trade payables                                          281          (1,175)
Accrued liabilities and other payables                 (238)           (452)
Unearned revenue                                       (119)         (4,155)
                                                                            
Net cash provided by Operating Activities            14,529           6,797 
                                             --------------  -------------- 
                                                                            
Net cash provided by Investing Activities                --              -- 
                                             --------------  -------------- 
                                                                            
Cash flows from/ (used in) Financing                                        
 Activities:                                                                
Decrease in restricted cash                              --           4,038 
Payment of IPO issuance costs                          (700)             -- 
Repayment of loan to related party                   (5,500)             -- 
Distributions paid                                   (5,238)             -- 
Repayment of long-term debt                              --         (10,835)
Net cash used in Financing Activities               (11,438)         (6,797)
                                             --------------  -------------- 
                                                                            
Net increase in cash and cash equivalents             3,091              -- 
Cash and cash equivalents at beginning of                                   
 the period                                           5,677              -- 
Cash and cash equivalents at end of the                                     
 period                                      $        8,768  $           -- 
                                             --------------  -------------- 
                                                                            
                                                                            
                                                                            
APPENDIX B                                                                  
                                                                            
        Fleet Statistics                       Three Months Ended           
                                                    March 31,               
                                             ----------------------         
        (expressed in United states dollars                                 
         except for operating data)             2014        2013            
                                                                            
        Number of vessels at the end of                                     
         period                                       3           3         
        Average number of vessels in the                                    
         period (1)                                   3           3         
        Calendar Days (2)                           270         270         
        Available Days (3)                          270         270         
        Revenue earning days (5)                    270         270         
        Time Charter Equivalent (4)          $   76,185  $   76,844         
        Fleet Utilization (5)                       100%        100%        
        Vessel daily operating expenses (6)  $   11,570  $   11,863         
                                                                            
(1) Represents the number of vessels that constituted our fleet for the     
    relevant period, as measured by the sum of the number of days each      
    vessel was a part of our fleet during the period divided by the number  
    of calendar days in the period.                                         
                                                                            
(2) Calendar days are the total days we possessed the vessels in our fleet  
    for the relevant period.                                                
                                                                            
(3) Available days are the total number of calendar days our vessels were in
    our possession during a period, less the total number of scheduled off- 
    hire days during the period associated with major repairs, or dry-      
    dockings.                                                               
                                                                            
(4) Time charter equivalent rates, or TCE rates, is a measure of the average
    daily revenue performance of a vessel. For time charters, this is       
    calculated by dividing total voyage revenues, less any voyage expenses, 
    by the number of Available days during that period. Under a time        
    charter, the charterer pays substantially all vessel voyage related     
    expenses. However, we may incur voyage related expenses when positioning
    or repositioning vessels before or after the period of a time charter,  
    during periods of commercial waiting time or while off-hire during dry- 
    docking or due to other unforeseen circumstances. The TCE rate is not a 
    measure of financial performance under U.S. GAAP (non-GAAP measure), and
    should not be considered as an alternative to voyage revenues, the most 
    directly comparable GAAP measure, or any other measure of financial     
    performance presented in accordance with U.S. GAAP. However, TCE rate is
    a standard shipping industry performance measure used primarily to      
    compare period-to-period changes in a company's performance and assists 
    our management in making decisions regarding the deployment and use of  
    our vessels and in evaluating their financial performance. Our          
    calculation of TCE rates may not be comparable to that reported by other
    companies. The following table reflects the calculation of our TCE rates
    for the three month periods ended March 31, 2014 and 2013 (amounts in   
    thousands of U.S. dollars, except for TCE rates, which are expressed in 
    U.S. dollars, and Available days):                                      
                                                                            
                                                                            
                                               Three Months Ended           
                                                    March 31,               
                                             ----------------------         
                                                2014        2013            
                                                                            
        Voyage revenues                      $   21,009  $   21,168         
        Voyage Expenses (7)                        (439)       (420)        
                                             ----------  ----------         
        Time Charter equivalent revenues     $   20,570  $   20,748         
        Available Days (3)                          270         270         
                                             ----------  ----------         
        Time charter equivalent (TCE) rate   $   76,185  $   76,844         
                                                                            
(5) We calculate fleet utilization by dividing the number of our revenue    
    earning days, which are the total number of Available Days of our       
    vessels net of unscheduled off-hire days, during a period, by the number
    of our Available days during that period. The shipping industry uses    
    fleet utilization to measure a company's efficiency in finding          
    employment for its vessels and minimizing the amount of days that its   
    vessels are off-hire for reasons such as unscheduled repairs but        
    excluding scheduled off-hires for vessel upgrades, dry-dockings or      
    special or intermediate surveys.                                        
                                                                            
(6) Daily vessel operating expenses, which includes crew costs, provisions, 
    deck and engine stores, lubricating oil, insurance, spares and repairs, 
    flag taxes and, is calculated by dividing vessel operating expenses by  
    fleet calendar days for the relevant time period.                       
                                                                            
(7) Voyage expenses include commissions of 1.25% paid to our Manager and    
    third party ship brokers, when defined in the charter parties, bunkers, 
    port expenses and other minor voyage expenses.                          

 
Adjusted EBITDA  
Adjusted EBITDA is defined as earnings before interest and finance
costs, net of interest income (if any), gains/losses on derivative
financial instruments (if any), taxes (when incurred), depreciation
and amortization (when incurred). Adjusted EBITDA is used as a
supplemental financial measure by management and external users of
financial statements, such as our investors, to assess our liquidity
and our operating performance.  
The Partnership believes that Adjusted EBITDA assists our management
and investors by providing useful information that increases the
comparability of our performance operating from period to period and
against the operating performance of other companies in our industry
that provide Adjusted EBITDA information. This increased
comparability is achieved by excluding the potentially disparate
effects between periods or companies of interest, other financial
items, depreciation and amortization and taxes, which items are
affected by various and possibly changing financing methods, capital
structure and historical cost basis and which items may significantly
affect net income between periods. We believe that including Adjusted
EBITDA as a measure of operating performance benefits investors in
(a) selecting between investing in us and other investment
alternatives and (b) monitoring our ongoing financial and operational
strength in assessing whether to continue to hold common units. 
Adjusted EBITDA is not a measure of financial performance under U.S.
GAAP, does not represent and should not be considered as an
alternative to net income, operating income, cash flow from operating
activities or any other measure of financial performance presented in
accordance with U.S. GAAP. Adjusted EBITDA excludes some, but not
all, items that affect net income and these measures may vary among
other companies. Therefore, Adjusted EBITDA as presented below may
not be comparable to similarly titled measures of other companies.
The following table reconciles Adjusted EBITDA to net income (loss),
the most directly comparable U.S. GAAP financial measures, for the
periods presented:  


 
                                                                            
                                                                            
                                              Three Months Ended            
                                                  March 31,                 
                                         ---------------------------        
                                              2014          2013            
                                         ------------- -------------        
                                            (In thousands of U.S.           
        Reconciliation to Net Income               dollars)                 
        Net Income                       $      11,029 $      11,207        
                                         ------------- -------------        
                                                                            
        Net interest and finance costs                                      
         (1)                                     1,944         2,326        
        Depreciation                             3,348         3,348        
                                         ------------- -------------        
        Adjusted EBITDA                  $      16,321 $      16,881        
                                         ------------- -------------        
                                                                            
(1) Includes interest and finance costs and interest income, if any         

 
Distributable Cash Flow 
Distributable Cash Flow with respect to any quarter means Adjusted
EBITDA after considering period interest and finance costs, non-cash
revenue amortization adjustments and estimated maintenance and
replacement capital expenditures. Estimated maintenance and
replacement capital expenditures, including estimated expenditures
for drydocking, represent capital expenditures required to maintain
over the long-term the operating capacity of, or the revenue
generated by our capital assets. Distributable Cash Flow is a
quantitative standard used by investors in publicly-traded
partnerships to assist in evaluating a partnership's ability to make
quarterly cash distributions. Our calculation of the Distributable
Cash Flow may not be comparable to that reported by other companies.
Distributable Cash Flow is a non-GAAP financial measure and should
not be considered as an alternative to net income or any other
indicator of the Partnership's performance calculated in accordance
with GAAP. The table below reconciles Distributable Cash Flow to net
income, the most directly comparable GAAP measure. 


 
                                                                            
                                                                            
                                              Three Months     Three Months 
                                           Ended March 31,  Ended March 31, 
                                                      2014             2013 
                                           ---------------  --------------- 
Net Income                                 $        11,029  $        11,207 
Depreciation                                         3,348            3,348 
Amortization of deferred finance fees                  118              135 
Interest and finance costs, excluding                                       
 amortization                                        1,826            2,191 
                                           ---------------  --------------- 
Adjusted EBITDA                                     16,321           16,881 
                                           ---------------  --------------- 
Interest and finance costs, excluding                                       
 amortization                                       (1,826)          (2,191)
Deferred revenue adjustments                           161           (1,422)
Maintenance capital expenditure reserves              (514)            (514)
Replacement capital expenditure reserves            (1,874)          (1,791)
                                           ---------------  --------------- 
Distributable Cash Flow                    $        12,268  $        10,963 

  
Contact Information:
Dynagas LNG Partners LP
97 Poseidonos Avenue & 2 Foivis Street
Glyfada, 16674
Greece 
Attention: Michael Gregos
Telephone: (011) 30 210 8917260
Email: management@dynagaspartners.com 
Investor Relations / Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
E-mail: dynagas@capitallink.com 
 
 
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