Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document Information | |
Document Type | 20-F |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Entity Registrant Name | Dynagas LNG Partners LP |
Entity Central Index Key | 1578453 |
Trading Symbol | DLNG |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Common Limited Partner | |
Document Information | |
Entity's units outstanding | 20,505,000 |
Subordinated Limited Partner | |
Document Information | |
Entity's units outstanding | 14,985,000 |
General Partner | |
Document Information | |
Entity's units outstanding | 35,526 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $11,949 | $5,677 |
Trade receivables, net of allowance for doubtful debt | 0 | 190 |
Prepayments and other assets | 737 | 283 |
Inventories | 357 | 0 |
Deferred charges, current portion | 416 | 0 |
Due from related party | 889 | 1,456 |
Total current assets | 14,348 | 7,606 |
FIXED ASSETS, NET: | ||
Vessels, net | 839,883 | 453,175 |
Total fixed assets, net | 839,883 | 453,175 |
OTHER NON CURRENT ASSETS: | ||
Restricted cash | 24,000 | 22,000 |
Deferred revenue | 943 | 3,627 |
Deferred charges, net of current portion | 7,077 | 1,652 |
Due from related party | 1,125 | 675 |
Total assets | 887,376 | 488,735 |
CURRENT LIABILITIES: | ||
Current portion of long term debt | 20,000 | 0 |
Trade payables | 2,369 | 3,743 |
Loan from related party | 0 | 5,500 |
Due to related party | 142 | 0 |
Accrued liabilities | 3,716 | 1,041 |
Unearned revenue | 7,022 | 4,619 |
Total current liabilities | 33,249 | 14,903 |
Deferred revenue | 1,429 | 2,048 |
Long-term debt, net of current portion | 555,000 | 214,085 |
Total non-current liabilities | 556,429 | 216,133 |
Commitments and contingencies | ||
PARTNERS' EQUITY: | ||
Common unitholders: 20,505,000 units issued and outstanding as at December 31, 2014 and 14,985,000 units issued and outstanding as of December 31, 2013 | 304,729 | 182,969 |
Subordinated unitholders: 14,985,000 units issued and outstanding as at December 31, 2014 and 2013 | -7,131 | 74,580 |
General partner: 35,526 units issued and outstanding as at December 31, 2014 and 30,000 units issued and outstanding as at December 31, 2013 | 100 | 150 |
Total partners' equity | 297,698 | 257,699 |
Total liabilities and partners' equity | $887,376 | $488,735 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position | ||
Common unitholders - units issued | 20,505,000 | 14,985,000 |
Common unitholders - units outstanding | 20,505,000 | 14,985,000 |
Subordinated unitholders - units issued | 14,985,000 | 14,985,000 |
Subordinated unitholders - units outstanding | 14,985,000 | 14,985,000 |
General Partner unitholders - units issued | 35,526 | 30,000 |
General Partner unitholders - units outstanding | 35,526 | 30,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||
Voyage revenues | $107,088 | $85,679 | $77,498 |
EXPENSES: | |||
Voyage expenses | -910 | -675 | -2,487 |
Voyage expenses-related party | -1,363 | -1,011 | -981 |
Vessel operating expenses | -16,813 | -11,909 | -15,722 |
General and administrative expenses | -1,014 | -387 | -278 |
General and administrative expenses- related party | -937 | 0 | 0 |
Management fees-related party | -3,566 | -2,737 | -2,638 |
Depreciation | -17,822 | -13,579 | -13,616 |
Dry-docking and special survey costs | 0 | 0 | -2,109 |
Operating income | 64,663 | 55,381 | 39,667 |
OTHER INCOME/(EXPENSES): | |||
Interest and finance costs | -14,524 | -9,732 | -9,576 |
Interest income | 221 | 0 | 1 |
Loss on derivative financial instruments | 0 | 0 | -196 |
Other, net | 201 | -29 | -60 |
Total other expenses | -14,102 | -9,761 | -9,831 |
Partnership's Net Income | 50,561 | 45,620 | 29,836 |
Common unitholders' interest in Net Income | 28,323 | 22,787 | 9,239 |
Subordinated unitholders' interest in Net Income | 22,170 | 22,787 | 20,556 |
General Partner's interest in Net Income | $68 | $46 | $41 |
Earnings per unit, basic and diluted: | |||
Common unit (basic and diluted) | $1.58 | $2.95 | $1.37 |
Weighted average number of units outstanding, basic and diluted: | |||
Common units | 17,964,288 | 7,729,521 | 6,735,000 |
Consolidated_Statements_of_Par
Consolidated Statements of Partners' Equity (USD $) | Total | General | Common | Subordinated |
In Thousands, except Share data | ||||
Balance at Dec. 31, 2011 | $45,339 | $63 | $14,039 | $31,237 |
Balance at Dec. 31, 2011 | 30,000 | 6,735,000 | 14,985,000 | |
-Net income | 29,836 | 41 | 9,239 | 20,556 |
Balance at Dec. 31, 2012 | 75,175 | 104 | 23,278 | 51,793 |
Balance at Dec. 31, 2012 | 30,000 | 6,735,000 | 14,985,000 | |
-Net income | 45,620 | 46 | 22,787 | 22,787 |
-Issuance of common units, net of issuance costs (Note 8), value | 136,904 | 136,904 | ||
-Issuance of common units, net of issuance costs (Note 8), shares | 8,250,000 | |||
Balance at Dec. 31, 2013 | 257,699 | 150 | 182,969 | 74,580 |
Balance at Dec. 31, 2013 | 30,000 | 14,985,000 | 14,985,000 | |
-Net income | 50,561 | 68 | 28,323 | 22,170 |
-Issuance of common units, net of issuance costs (Note 8), value | 120,570 | 126 | 120,444 | |
-Issuance of common units, net of issuance costs (Note 8), shares | 5,526 | 5,520,000 | ||
Distributions declared and paid (Note 8) | -43,010 | -44 | -23,568 | -19,398 |
Preferential deemed dividend (Note 8) | -88,122 | -200 | -3,439 | -84,483 |
Balance at Dec. 31, 2014 | $297,698 | $100 | $304,729 | ($7,131) |
Balance at Dec. 31, 2014 | 35,526 | 20,505,000 | 14,985,000 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from Operating Activities: | |||
Net income: | $50,561 | $45,620 | $29,836 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 17,822 | 13,579 | 13,616 |
Amortization and write-off of deferred financing fees | 785 | 1,050 | 590 |
Deferred revenue | 2,065 | -4,245 | 2,666 |
Change in fair value of derivative financial instruments | 0 | 0 | -5,692 |
Provision for doubtful debt | 0 | 63 | 0 |
Changes in operating assets and liabilities: | |||
Trade receivables | 190 | 118 | 126 |
Prepayments and other assets | -250 | -178 | 184 |
Inventories | -357 | 0 | 0 |
Due from/to related party | 278 | -5,450 | -18,597 |
Trade payables | 310 | -3,156 | 3,804 |
Accrued liabilities | 2,636 | -1,081 | -701 |
Unearned revenue | 2,403 | -2,116 | 2,070 |
Net cash provided by Operating Activities | 76,443 | 44,204 | 27,902 |
Cash flows from/(used in) Investing Activities: | |||
Vessel Acquisitions | -404,530 | 0 | 0 |
Net cash used in Investing Activities | -404,530 | 0 | 0 |
Cash flows from/(used in) Financing Activities: | |||
Increase in restricted cash | -2,000 | -15,227 | -4,453 |
Payment of IPO issuance costs and other filing costs | -1,938 | 0 | 0 |
Issuance of common units, net of issuance costs paid | 120,514 | 138,800 | 0 |
Issuance of general partner units | 126 | 0 | 0 |
Preferential deemed dividend | -88,122 | 0 | 0 |
Distributions paid | -43,010 | 0 | 0 |
Proceeds from long-term debt | 590,000 | 214,085 | 220,000 |
Repayment of long-term debt | -229,085 | -380,715 | -124,890 |
Repayment of stockholders' loan | 0 | 0 | -116,584 |
Loan from/ (Repayment of loan to) related party | -5,500 | 5,500 | 0 |
Payment of deferred finance fees | -6,626 | -970 | -1,975 |
Net cash provided by/(used in) Financing Activities | 334,359 | -38,527 | -27,902 |
Net increase in cash and cash equivalents | 6,272 | 5,677 | 0 |
Cash and cash equivalents at beginning of the year | 5,677 | 0 | 0 |
Cash and cash equivalents at end of the year | 11,949 | 5,677 | 0 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Cash paid during the year for interest | $10,724 | $9,487 | $7,775 |
Basis_of_Presentation_and_Gene
Basis of Presentation and General Information: | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements | ||
Basis of Presentation and General Information: | 1. Basis of Presentation and General Information: | |
The accompanying consolidated financial statements include the accounts of Dynagas LNG Partners LP and its wholly-owned subsidiaries as further discussed below. | ||
Dynagas LNG Partners LP (“Dynagas Partners”or “The Partnership”, or “Company”) was incorporated as a limited Partnership on May 29, 2013 under the laws of the Republic of The Marshall Islands as part of reorganization to acquire, directly or indirectly, the interests in three vessel owning companies, Pegasus Shipholding S.A., Lance Shipping S.A. and Seacrown Maritime Ltd, wholly owned subsidiaries of Dynagas Holding Ltd (“Dynagas Holding”or “the Sponsor” a company beneficially wholly owned by Mr. George Prokopiou, the Partnership's Chairman and major unitholder and his close family members, together the “Family”) through the ownership of 100% of the ownership interests in an intermediate holding company, Dynagas Equity Holding Ltd (“Dynagas Equity”). | ||
The Partnership is engaged in the seaborne transportation industry through the ownership and operation of liquefied natural gas vessels and is the sole owner of all outstanding shares or units of the following subsidiaries: | ||
(a) Pegasus Shipholding S.A. ("Pegasus"), a Marshall Islands corporation that owns the Marshall | ||
Islands flag, 149,700 cubic meters in carrying capacity, class membrane, LNG carrier Clean Energy | ||
which was delivered to Pegasus in March 2007. | ||
(b) Lance Shipping S.A. ("Lance"), a Marshall Islands corporation that owns the Marshall Islands flag, | ||
149,700 cubic meters in carrying capacity, class membrane, LNG carrier Ob River (renamed from | ||
Clean Power in July 2012) which was built and delivered to Lance in July 2007. | ||
(c) Seacrown Maritime Ltd. ("Seacrown"), a Marshall Islands corporation that owns the Marshall Islands | ||
flag, 149,700 cubic meters in carrying capacity, class membrane, LNG carrier Clean Force which was | ||
built and delivered to Seacrown in January 2008. | ||
(d) Fareastern Shipping Limited (“Fareastern”), a Maltese corporation that owns the Malta flag, 155,000 | ||
cubic meters in carrying capacity, class membrane, LNG carrier Arctic Aurora which was built and | ||
delivered to Fareastern in July 2013 (Notes 3(c) and 4). | ||
(e) Navajo Marine Limited (“Navajo”), a Marshall Islands corporation that owns the Marshall Islands flag, | ||
155,000 cubic meters in carrying capacity, class membrane, LNG carrier Yenisei River which was built | ||
and delivered to Navajo in July 2013(Note 3(c) and 4). | ||
(f) Quinta Group Corp. ("Quinta"), a Nevis holding Company that owns all of the outstanding capital | ||
stock of Pegasus. | ||
(g) Pelta Holdings S.A. ("Pelta"), a Nevis holding Company that owns all of the outstanding capital stock | ||
of Lance. | ||
(h) Dynagas Equity Holdings Ltd ("Dynagas Equity"), a Liberian holding Company that owns all of the | ||
outstanding capital stock of Quinta, Pelta, Seacrown, Fareastern and Navajo. | ||
(i) Dynagas Operating GP LLC ("Dynagas Operating GP"), a Marshall Islands Limited Liability Company, | ||
in which the Partnership holds 100% membership interests. | ||
(j) Dynagas Operating LP ("Dynagas Operating"), a Marshall Islands limited partnership in which the | ||
Partnership has 100% percentage interests and that has 100% of the Non-Economic General | ||
Partner Interest in Dynagas Operating GP. | ||
(k) Dynagas Finance Inc,(“Dynagas Finance”) a Marshall Islands Company established on August 6, 2014, | ||
in which the Partnership holds 100% membership interests and which has nominal assets and its | ||
activities are limited to co-issuing the Notes discussed under Note 5and engaging in other activities | ||
incidental thereto. | ||
Dynagas Equity, Quinta, Pelta, Pegasus, Lance and Seacrown are hereinafter referred to as the predecessor companies. | ||
Dynagas Equity was incorporated on July 30, 2012, under the laws of the Republic of Liberia and its only activity is the holding of all the issued and outstanding common stock of Pegasus (through theownership of all issued and outstanding common stock of Quinta), Lance (through the ownership of all issued and outstanding common stock of Pelta) and Seacrown. | ||
On October 29, 2013, the Family transferred all of the issued and outstanding common stock of Dynagas Equity to Dynagas Holding. On the same date, Dynagas Holding transferred to the Partnership its | ||
ownership interest in Dynagas Equity in exchange of a) 6,735,000 of Dynagas Partners' common units, b) 14,985,000 subordinated units and c) 30,000 general partner units, issued to Dynagas GP LLC (the “General Partner”),a wholly owned subsidiary of Dynagas Holding. On November 18 2013, the Partnership and the Sponsor offered to the public 8,250,000 and 4,250,000 common units respectively, successfully completing Partnership's initial public offering (the “IPO” or the “Offering”) on the NASDAQ Global Select Market, whereas, on December 5, 2013, the Sponsor offered an additional 1,875,000 units in connection with the underwriters' exercise of their over-allotment option. As the Family is the sole shareholder of Dynagas Holding, and previously owned 100% of the predecessor companies, there is no change in ownership or control of the business, and therefore the transaction constitutes a reorganization of companies under common control, and was accounted for in a manner similar to a pooling of interests. Accordingly, the financial statements of the predecessor companies along with Dynagas Partners, from the date of its inception have been presented using combined historical carrying costs of the assets and liabilities of the predecessor companies, and present the consolidated financial position and results of operations as if Dynagas Partners and the predecessor companies were consolidated for all periods presented. | ||
At the closing of the Offering, the Partnership entered into the following agreements: i) an Omnibus agreement with Dynagas Holding that provides the Partnership the right to purchase LNG carrier vessels from the Sponsor at a purchase price to be determined pursuant to the terms and conditions contained therein (Note 3(c)) and ii) a $30 million revolving credit facility with the Sponsor to be used for general Partnership purposes (Note 3(b)). | ||
On June 18, 2014, the Partnership completed a follow on public offering of 5,520,000 units at $22.79 per unit, including 720,000 common units simultaneously offered pursuant to the underwriters' exercise of their over-allotment option. As of December 31, 2014, Dynagas Holding owns 44.0% of the equity interests in Dynagas Partners, including the 0.1% General Partner interest. | ||
The technical, administrative and commercial management of the Partnership's vessels is performed by Dynagas Ltd. (the “Manager”), a related company, wholly owned by the Partnership's Chairman of the Board of Directors (Note 3(a)). |
Significant_Accounting_Policie
Significant Accounting Policies and Recent Accounting Pronouncements: | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Significant Accounting Policies and Recent Accounting Pronouncements | |||||||
Significant Accounting Policies and Recent Accounting Pronouncements: | 2. Significant Accounting Policies and Recent Accounting Pronouncements: | ||||||
(a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Dynagas Partners and its wholly-owned subsidiaries, on the basis of the reorganization referred to in Note 1, assuming that Dynagas Partners and the predecessor companies were consolidated for all periods presented. All intercompany balances and transactions have been eliminated upon consolidation. | |||||||
(b) Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||
(c) Other Comprehensive Income: The Partnership follows the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 220, “Comprehensive Income” which requires separate presentation of certain transactions, which are recorded directly as components of equity. The Partnership has no such transactions which affect other comprehensive income and, accordingly, for the years ended December 31, 2014, 2013 and 2012 comprehensive income equals net income. | |||||||
(d) Foreign Currency Translation: The functional currency of the Partnership is the U.S. Dollar because the Partnership's vessels operate in international shipping markets, and therefore primarily transact business in U.S. Dollars. The Partnership's books of accounts are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars using the balance sheet date exchange rates. Resulting gains or losses are included in Other, net in the accompanying consolidated statements of income. | |||||||
(e) Cash and Cash Equivalents: The Partnership considers highly liquid investments such as time deposits with an original maturity of three months or less to be cash equivalents. | |||||||
(f) Restricted cash: Restricted cash comprises of minimum liquidity collateral requirements or minimum required cash deposits, as defined in the Partnership's loan agreements. | |||||||
(g) Trade Receivables, net: The amount shown as trade receivables, net, at each balance sheet date, includes receivables from charterers for hire net of any provision for doubtful accounts. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts primarily based on the aging of such balances and any amounts in disputes. Provision for doubtful accounts as of December 31, 2014 and 2013 was nil and $63, respectively. | |||||||
(h) Inventories: Inventories consist of lubricants which are stated at the lower of cost or market. Cost is determined by the first in, first out method. Inventories may also consist of bunkers that are also stated at the lower of cost or market and cost is determined by the first in, first out method. | |||||||
(i) Insurance Claims: The Partnership records insurance claim recoveries for insured losses incurred on damage to fixed assets, loss of hire and for insured crew medical expenses. Insurance claim recoveries are recorded, net of any deductible amounts, at the time the Partnership's vessels suffer insured damages or when crew medical expenses are incurred, when recovery is probable under the related insurance policies, the Partnership can make an estimate of the amount to be reimbursed following submission of the insurance claim and when the claim is not subject to litigation. | |||||||
(j) Vessels, Net: Vessels are stated at cost, which consists of the contract price and any material expenses incurred upon delivery (initial repairs, improvements and delivery expenses, interest expense and on-site supervision costs incurred during the construction periods). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. The cost of each of the Partnership's vessels is depreciated beginning when the vessel is ready for her intended use, on a straight-line basis over the vessel's remaining economic useful life, after considering the estimated residual value. With effect from October 1, 2014, the Partnership revised its' initial scrap rate estimate (Note 4). Management estimates the useful life of the Partnership's vessels to be 35 years from the date of initial delivery from the shipyard. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its remaining useful life is adjusted at the date such regulations are adopted. | |||||||
(k) Impairment of Long-Lived Assets: The Partnership follows ASC 360-10-40 “Impairment or Disposals of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The standard requires that long-lived assets and certain identifiable intangibles held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When the estimate of undiscounted projected operating cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Partnership should evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset. The fair values are determined through Level 2 inputs of the fair value hierarchy as defined in ASC 820 “Fair value measurements and disclosures” based on management's estimates and assumptions and by making use of available market data and taking into consideration third party valuations and other market observable data that allow value to be determined. The Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances, such as undiscounted projected operating cash flows, business plans to dispose a vessel earlier than the end of its useful life and prevailing market conditions, indicate that the carrying amount of the assets may not be recoverable. The Partnership determines undiscounted projected net operating cash flows, for each vessel and compares it to the vessel's carrying value. In developing estimates of future cash flows, the Partnership must make assumptions about future charter rates, vessel operating expenses, fleet utilization, and the estimated remaining useful life of the vessels. These assumptions are based on historical trends as well as future expectations. The projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed fleet days and an estimated charter rate for the unfixed days. Expected outflows for scheduled vessels' maintenance and vessel operating expenses are based on historical data, and adjusted annually assuming an average annual inflation rate prevailing at the time of test. An estimate is also applied to effective fleet utilization, taking into account the period(s) each vessel is expected to undergo her scheduled maintenance (dry-docking and special surveys) and vessels loss of hire from repositioning or other conditions. Estimates for the remaining estimated useful lives of the current fleet and scrap values are identical with those employed as part of the Partnership's depreciation policy. As of December 31, 2014, 2013 and 2012, the Partnership concluded that there were no events or changes in circumstances indicating that the carrying amount of its vessels may not be recoverable and accordingly no impairment loss was recorded these years. | |||||||
(l) Accounting for Special Survey and Dry-Docking Costs: The Partnership follows the direct expense method of accounting for dry-docking and special survey costs where such are expensed in the period incurred. The vessels undergo dry-dock or special survey approximately every five years during the first fifteen years of their life and every two and a half years within their following useful life. Costs relating to routine repairs and maintenance are also expensed as incurred. Three of the Partnership's fleet vessels completed their initial scheduled special survey repairs in 2012. | |||||||
(m) Financing Costs: Costs associated with new loans including fees paid to lenders or required to be paid to third parties on the lender's behalf for obtaining new loans or refinancing existing ones are recorded as deferred charges. Such fees are deferred and amortized to interest and finance costs during the life of the related debt using the effective interest method. Unamortized fees are presented in the accompanied balance sheets as deferred charges. Unamortized fees relating to loans repaid or refinanced as debt extinguishments and loan commitment fees are expensed as interest and finance costs in the period incurred in the accompanying statements of income. | |||||||
(n) Concentration of Credit Risk: Financial instruments, which potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents and trade receivables. The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership places its cash and cash equivalents, consisting mostly of deposits, with high credit qualified financial institutions. The Partnership performs periodic evaluations of the relative credit standing of those financial institutions. The Partnership limits its credit risk with accounts receivable by performing ongoing credit evaluations of its customers' financial condition and generally does not require collateral for its accounts receivable. | |||||||
During the years ended December 31, 2014 and 2013, charterers that individually accounted for more than 10% of the Partnership's revenues were as follows: | |||||||
Charterer | |||||||
2014 | 2013 | ||||||
A | 50 | % | 61 | % | |||
B | 36 | % | 39 | % | |||
C | 14 | % | — | % | |||
100 | % | 100 | % | ||||
(o) Accounting for Revenues and Related Expenses: The Partnership generates its revenues from charterers for the chartering of its vessels. All vessels are chartered under time charters, where a contract is entered into for the use of a vessel for a specific period of time and at a specified daily charter hire rate. If a charter agreement exists and collection of the related revenue is reasonably assured, revenue is recognized, as it is earned ratably over the duration of the period of the time charter. Furthermore, revenues from time chartering of vessels are accounted for as operating leases and are thus recognized on a straight line basis as the average minimum lease revenue over the rental periods of such charter agreements, as service is performed with the residual or excess from actually collected hire based on the time charter agreement for each period being classified as deferred revenue in the accompanying consolidated balance sheets. Unearned revenue includes cash received prior to the balance sheet date for which all criteria to recognize as revenue have not yet been met as at the balance sheet date and accordingly is related to revenue earned after such date. Commissions are always paid for by the Company while the remaining voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid for by the charterer under the time charter arrangements or by the Company during periods of off-hire. All voyage expenses are expensed as incurred, except for commissions. Commissions paid to brokers are deferred and amortized over the related charter period to the extent revenue has been deferred since commissions are earned as the Partnership's revenues are earned. | |||||||
(p) Repairs and Maintenance: All repair and maintenance expenses including underwater inspection expenses are expensed in the period incurred. Such costs are included in vessel operating expenses in the accompanying consolidated statements of income. | |||||||
(q) Earnings Per Unit: The Partnership consists of common units, subordinated units, a general partner interest and incentive distribution rights. Our incentive distribution rights are a separate class of non-voting interests that are currently held by our general partner but, subject to certain restrictions, may be transferred or sold apart from general partner's interest. In this respect the Partnership calculates basic earnings per unit by allocating earnings to the General Partner, limited partners and incentive distribution rights holder using the two-class method and by utilizing the contractual terms of the partnership agreement. Basic earnings per unit are computed by dividing net income available to each class of unitholders by the weighted average number of each class of units outstanding during the year. Diluted earnings per unit reflect the potential dilution that could occur if securities or other contracts to issue units were exercised, if any. The Partnership had no dilutive securities outstanding during the three-year period ended December 31, 2014. | |||||||
(r) Segment Reporting: The Partnership has determined that it operates under one reportable segment relating to its operations as it operates solely LNG vessels. The Partnership reports financial information and evaluates its operations and operating results by type of vessel and not by the length or type of ship employment for its customers. The Partnership's management does not use discrete financial information to evaluate operating results for each type of charter. Although revenue can be identified according to these types of charters or for charters with different duration, management cannot and does not identify expenses, profitability or other financial information for these charters. Furthermore, when the Partnership charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographic information is impracticable. | |||||||
(s) Fair Value Measurements: The Partnership adopted ASC 820, “Fair Value Measurements and Disclosures”, which defines, and provides guidance as to the measurement of fair value. This guidance creates a fair value hierarchy of measurement and indicates that, when possible, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable data that are not corroborated by market data (Level 3), for example, the reporting entity's own data. Observable market based inputs or unobservable inputs that are corroborated by market data are classified under Level 2 of the fair value hierarchy. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy. ASC 820 applies when assets or liabilities in the financial statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other accounting principles. Upon issuance of guidance on the fair value option in 2007, the Partnership elected not to report the then existing financial assets or liabilities at fair value that were not already reported as such. | |||||||
(t) Commitments and Contingencies: Commitments are recognized when the Partnership has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle this obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the present value of the expenditure expected to be required to settle the obligation. Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not recognized in the financial statements but are disclosed when an inflow of economic benefits is probable. | |||||||
(u) Variable Interest Entities: ASC 810-10, addresses the consolidation of business enterprises (variable interest entities) to which the usual condition (ownership of a majority voting interest) of consolidation does not apply. The guidance focuses on financial interests that indicate control. It concludes that in the absence of clear control through voting interests, a Partnership's exposure (variable interest) to the economic risks and potential rewards from the variable interest entity's assets and activities are the best evidence of control. Variable interests are rights and obligations that convey economic gains or losses from changes in the value of the variable interest entity's assets and liabilities. Additionally, ASU 2009-17, Consolidations (Topic 810) “Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities” determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entity's purpose and design and the reporting entity's ability to direct the activities of the other entity that most significantly impact the other entity's economic performance. ASU 2009-17 also requires a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement. The Partnership evaluates financial instruments, service contracts, and other arrangements to determine if any variable interests relating to an entity exist, as the primary beneficiary would be required to include assets, liabilities, and the results of operations of the variable interest entity in its financial statements. The Partnership's evaluation did not result in an identification of variable interest entities as of December 31, 2014 and 2013. | |||||||
(v) Accounting for Financial Instruments and Derivatives: The principal financial assets of the Partnership consist of cash and cash equivalents, restricted cash and trade receivables, net. The principal financial liabilities of the Partnership consist of trade and other payables, accrued liabilities and long-term debt and interest-rate swaps. Derivative financial instruments are used to manage risk related to fluctuations of interest rates. ASC 815, Derivatives and Hedging, requires all derivative contracts to be recorded at fair value, as determined in accordance with ASC 820, Fair Value Measurements and Disclosures (Note 6). The changes in fair value of a derivative contract are recognized in earnings unless specific hedging criteria are met. | |||||||
At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Partnership wishes to apply hedge accounting and the risk management objective and strategy undertaken for the hedge. The documentation includes identification of the hedging instrument, hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument's effectiveness in offsetting exposure to changes in the hedged item's cash flows attributable to the hedged risk. A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a highly probable forecasted transaction that could affect profit or loss. Such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are assessed on an ongoing basis to determine whether they actually have been highly effective throughout the financial reporting periods for which they were designated. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in Accumulated Other Comprehensive Income/ (Loss) and subsequently recognized in earnings when the hedged items impact earnings. | |||||||
None of the Company's derivative instruments matured in 2012 met those hedging criteria and, therefore, the changes in fair value were recognized as an increase or decrease in statements of income. | |||||||
Recent Accounting Pronouncements: | |||||||
ASU 2014-15: In August 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements- Going Concern (Subtopic 205-40): Disclosure of uncertainties about an entity's ability to continue as a going concern which provides guidance in GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financing for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued (or are available to be issued). In case substantial doubt about an entity's ability to continue as a going concern is substantiated, the entity should disclose information that enables users of the financial statements to understand the conditions that raised substantial doubt about the entity's ability to continue as a going concern, management's evaluation of the significance of those conditions and management's plans that either alleviated or are intended to mitigate the arising events and conditions. The amendments in this Update are effective for the annual period ending after December 15, 2016 and for annual period and interim periods thereafter. Early application is permitted. | |||||||
ASU 2015-02: In February 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-02, Amendments to the Consolidation Analysis- Consolidation (Topic 810). The amendments in this Update change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities and are effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company has not yet evaluated the impact, if any, of the adoption of this standards update. | |||||||
Transactions_with_related_part
Transactions with related parties: | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transaction, Due from (to) Related Party | |
Transactions with related parties: | 3. Transactions with related parties: |
(a) Dynagas Ltd. | |
Dynagas Ltd. (or the “Manager”), is a company beneficially owned by the Partnership's Chairman. With effect from January 1, 2013, following the expiration of its previous agreements, the Manager entered into an eight year term separate management agreement with each vessel-owning entity of the Partnership in order to provide technical and administrative management services to the Partnership in exchange for a daily management fee of $2.5. Beginning on the first calendar year after the commencement of the vessel management agreements and each calendar year thereafter, these fees will be adjusted upwards by 3% until expiration of the management agreement, subject to further annual increases to reflect material unforeseen costs of providing the management services, by an amount to be agreed between the Partnership and the Manager, which amount will be reviewed and approved by the Partnership's conflicts committee. For 2014 and 2013, each vessel was charged the basic daily management fee of $2.6 and $2.5, respectively, whereas, for the year ended December 31, 2012, daily management fees per vessel ranged from $2.3 to $2.4. The management agreements also provide for: (i) a commission of 1.25% over charter-hire agreements arranged by the Manager and (ii) a lump sum new-building supervision fee of $700 for the services rendered by the Manager in respect of the construction of the vessel plus out of pocket expenses. The agreements will terminate automatically after a change of control of the owners and/or of the owners' ultimate parent, in which case an amount equal to the estimated remaining fees but in any case not less than for a period of at the least 36 months and not more than 60 months, will become payable to the Manager. As of December 31, 2014, based on the maximum period prescribed in the management agreements and the basic daily fee in effect during 2014, such termination fee would be approximately $23,510. | |
Fees charged for the years ended December 31, 2014, 2013 and 2012 for technical and administrative services under the agreement amounted to $3,566, $2,737 and $2,638, respectively, and are separately reflected as Management fees-related party in the accompanying consolidated statements of income. During the years ended December 31, 2014, 2013 and 2012, the Partnership further incurred $1,363, $1,011 and $981, respectively, in connection with the commercial services under the agreement, which are separately reflected as Voyage expenses-related party in the accompanying consolidated statements of income. As of December 31, 2014 and 2013, the Partnership had granted to the Manager excess working capital advances of $889 and $1,456, respectively, which are separately reflected in Current Assets, Due from related party in the accompanying consolidated balance sheets. | |
The management agreements also provide for an advance equal to three months daily management fee. In the case of termination of the management agreements, prior to their eight year term, by any reason other than Manager's default, the advance is not refundable. Such advances as of December 31, 2014 and 2013 amounted to $1,125 and $675, respectively, and are separately reflected in Non-Current Assets as Due from related party in the accompanying consolidated balance sheets. | |
(b) Loan from related party | |
On November 18, 2013, concurrently with the completion of its initial public offering, the Partnership entered into an interest free $30.0 million revolving credit facility with its Sponsor, Dynagas Holding, with an original term of five years from the closing date, to be used for general Partnership purposes including working capital. The loan may be drawn and be prepaid in whole or in part at any time during the life of the facility. As of December 31, 2013, $5.5 million were drawn down under the facility, which are separately reflected in Current Liabilities, Loan from related party in the accompanying consolidated balance sheets. In January 2014, the total amount drawn under the respective facility was repaid. No amounts were drawn under the respective facility since then. | |
(c) Omnibus Agreement -Vessel acquisitions from our Sponsor | |
On November 18, 2013, the Partnership entered into an agreement with its Sponsor (the “Omnibus Agreement”) to govern among other things i) the terms and the extent the Partnership and the Sponsor may compete each other, ii) the procedures to be followed for the exercise of Partnership's options to acquire certain offered optional vessels by its Sponsor, iii) certain rights of first offer to the Sponsor for the acquisition of LNG carriers from the Partnership and iv) Sponsor's provisions of certain indemnities to the Partnership. On April 17, 2014 and September 22, 2014, the Partnership entered into two separate Share Purchase Agreements to purchase from its Sponsor 100% of the ownership interests in the entities that own and operate the Arctic Aurora and the Yenisei River, two sister, 2013 built, ice class, liquefied natural gas carriers, for an aggregate purchase price of $492.5 million. On June 23, 2014 and September 25, 2014, within the context of these transactions, the Partnership completed the acquisition of the respective vessels and the related time charters. All of the other assets and liabilities relating to the Sponsor entities that owned the respective vessels did not form part of the purchase price and remained with the seller. The purchase price related to the Arctic Aurora acquisition was financed with a portion of the proceeds drawn under a new $340.0 million senior secured revolving credit facility (Note 5) and the net proceeds from a follow on public offering of common units contemplated in June 2014 (Note 8), whereas, the Yenisei River acquisition was funded at its greatest extent with the net proceeds of a $250.0 million Senior Unsecured Notes offering completed on September 15, 2014 (Note 5) and cash on hand. Both acquisitions from our Sponsor were similarly accounted for as transactions between entities under common control with the amount in excess of the vessel book value aggregating $88.1 million considered a preferential deemed dividend (Note 8). | |
(d) Executive Services Agreement | |
On March 21, 2014, the Partnership entered into an executive services agreement with the Manager with retroactive effect from the IPO closing date, pursuant to which the Manager provides the Partnership the services of its executive officers, who report directly to the Board of Directors. Under the agreement, the Manager is entitled to an executive services fee of €538,000 per annum (or $654 on the basis of a Eur/US Dollar exchange rate of €1.0000/$1.2156 at December 31, 2014), payable in equal monthly installments. The agreement has an initial term of five years and automatically renews for successive five year terms unless terminated earlier. During the year ended December 31, 2014, the Partnership incurred $803 in connection with this agreement which is included in General and administrative expenses-related party in the accompanying 2014 consolidated statement of income. | |
(e) Administrative Services Agreement | |
On December 30, 2014 and effective as of the IPO closing date, the Partnership entered into an 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 Agreement can be terminated upon 120 days' notice granted either by the Partnership's Board or by Dynagas as per the provisions of the agreement. During the year ended December 31, 2014, the Partnership incurred $134 in connection with this agreement which is included in General and administrative expenses- related party in the accompanying 2014 consolidated statement of income. Up to December 31, 2014, the amount due under the agreement ($134) remained unsettled and is included in Current Liabilities as Due to related party in the accompanying 2014 consolidated balance sheet. | |
Vessels_net
Vessels, net: | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Vessels, Net [Abstract] | ||||||||||
Vessels, net: | 4. Vessels, net: | |||||||||
The amounts in the accompanying consolidated balance sheets are analyzed as follows: | ||||||||||
Vessel | Accumulated | Net Book | ||||||||
Cost | Depreciation | Value | ||||||||
Balance December 31, 2012 | $ | 540,454 | $ | -73.7 | $ | 466,754 | ||||
—Depreciation | — | -13,579 | -13,579 | |||||||
Balance December 31, 2013 | $ | 540,454 | $ | -87,279 | $ | 453,175 | ||||
—Acquisitions (Note 3(c)) | 404,530 | — | 404,530 | |||||||
—Depreciation | — | -17,822 | -17,822 | |||||||
Balance December 31, 2014 | $ | 944,984 | $ | -105,101 | $ | 839,883 | ||||
Effective October 1, 2014, the Partnership revised its' scrap rate estimate, used to calculate the value of scrap steel for the purpose of estimating the residual values of vessels, from an average fleet scrap rate of $0.717 per lightweight ton (or a vessel specific of 12% of the initial vessel cost) to $0.685 per lightweight ton per LNG carrier. The Partnership assessed this scrap rate based on current and historical market trends. The effect of this change in accounting estimate, which did not require retrospective adoption as per ASC 250 "Accounting Changes and Error Corrections," was to decrease net income for the year ended December 31, 2014 by $38 and had an immaterial impact on earnings per common unit, basic and diluted. | ||||||||||
As of December 31, 2014, apart from the Yenisei River, the remainder of the Partnership's fleet was first priority mortgaged as collateral to secure the New $340.0 million Credit Suisse Revolving Credit Facility discussed in Note 5. |
LongTerm_Debt
Long-Term Debt: | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure | |||||||||
Long-Term Debt: | 5. Long-Term Debt: | ||||||||
The amounts shown in the accompanying consolidated balance sheets are analyzed as follows: | |||||||||
Debt instruments | Borrowers-Issuers | 2014 | 2013 | ||||||
$262.1 Million Credit Suisse credit facility | Pegasus-Lance-Seacrown | $ | — | $ | 214,085 | ||||
$340.0 Million Credit Suisse credit facility | Pegasus-Lance-Seacrown-Fareastern | 325,000 | — | ||||||
$250.0 Million Senior Unsecured Notes | Dynagas LNG Partners LP - Dynagas Finance Inc. | 250,000 | — | ||||||
Total | $ | 575,000 | $ | 214,085 | |||||
Less current portion | $ | 20,000 | $ | — | |||||
Long-term portion | $ | 555,000 | $ | 214,085 | |||||
$262.1 million Credit Suisse Senior Secured Revolving Credit Facility: | |||||||||
On November 14, 2013, the Partnership entered, on a joint and several basis, into a Senior Secured Revolving Credit Facility (the “Revolving Credit Facility” or “Facility”) with an affiliate of Credit Suisse for $262,125 in order to partially refinance its existing indebtedness of $346.1 that was outstanding on November 18, 2013, soon after the successful completion of the Partnership's IPO. Of this amount, $214,085 was drawn on November 18, 2013 and, together with part of the net proceeds of the initial public offering discussed in Note 8, was used to fully repay the then outstanding principal and interest of the three loans outstanding at that time. The Revolving Credit Facility was guaranteed by the Partnership and was | |||||||||
secured by, among other things, a first priority or preferred cross-collateralized mortgage on each of the Clean Force, the OB River and the Clean Energy and bore interest at LIBOR plus margin. The amount available under the Facility would be reduced each quarter for 14 consecutive quarters by $5,000 for the first 13 quarters and by approximately $197,125 for the fourteenth quarter ending on June 30, 2017. On June 23, 2014, the then outstanding balance of $214.1 million due under respective facility was fully repaid from the proceeds of a new senior secured credit facility concluded on June 19, 2014, discussed below. | |||||||||
New $340 million Credit Suisse Senior Secured Revolving Credit Facility: | |||||||||
On June 19, 2014, certain subsidiaries of the Partnership entered, on a joint and several basis, into a new Senior Secured Revolving Credit Facility (the “New Facility”) with an affiliate of Credit Suisse for $340.0 million to refinance the $214.1 million outstanding under the Revolving Credit Facility and to fund a portion of the purchase price for the Arctic Aurora acquisition. On June 23, 2014, the Partnership drew down in full the amount available under the respective facility, a part of which, along with the net proceeds from the follow on public common units offering (Note 8), was utilized to fund the acquisition of the Arctic Aurora (Note 3(c)).The remainder of the amount drawn under the facility was used to fully repay the then outstanding principal and interest of the Revolving Credit Facility. The New Facility is guaranteed by the Partnership, Dynagas Equity Holding Ltd. and Dynagas Operating LP and is secured by a first priority or preferred cross-collateralized mortgage on each of the Clean Force, the OB River, the Clean Energy and the Arctic Aurora, a specific assignment of the existing charters and a first assignment of earnings and insurances in relation to the vessels. The facility bears interest at LIBOR plus a margin and is payable in 28 consecutive equal quarterly installments of $5.0 million each and a balloon payment of $200.0 million at maturity in March 2021. | |||||||||
The New Facility contains financial and other covenants similar to those of the refinanced facility that require the Partnership to: | |||||||||
• maintain total consolidated liabilities of less than 65% of the Partnership's consolidated market value adjusted total assets | |||||||||
• maintain an interest coverage ratio of at least 3.0 times | |||||||||
• maintain minimum liquidity equal to at least $24.0 million | |||||||||
• employ at least three vessels in the fleet on charters with a minimum initial term of at least three years at above breakeven costs and | |||||||||
• maintain a hull cover ratio, being the ratio of the aggregate of the vessels' market values and the net realizable value of any additional security over the outstanding amount of the facility, no less than 130% | |||||||||
In addition, during the security period, the Sponsor, will be required to own, directly or indirectly, at least 30% of the outstanding voting interests of the Partnership (which shall include common and subordinated units of the Partnership) and 100% of the outstanding voting interests and limited liability company interests in the General Partner. Finally, the New Facility similarly restricts the Partnership from paying any distributions if an event of default occurs. | |||||||||
$250 Million Senior Unsecured Notes due 2019 | |||||||||
On September 15, 2014 the Partnership completed a public offering of $250.0 million aggregate principal amount Senior Unsecured Notes offering due October 30, 2019 (the “Notes”) with the purpose of funding the majority of the purchase price related to the Yenisei River acquisition. On September 25, 2014, consistent with their intended use, the net proceeds from this offering of approximately $244.9 million along with cash on hand funded the entire purchase price of the Yenisei River (Note 3(c)). The Notes bear interest from the date of the original issue until maturity at a rate of 6.25% per year, payable quarterly in arrears on January 30, April 30, July 30 and October 30 of each year. As per the provisions of the Notes and the Indenture, the Partnership may issue from time to time, unlimited as to principal amount senior unsecured debentures, to be issued in one or more series. The Notes are unsubordinated unsecured obligations of the Partnership and are not redeemable at its option prior to maturity. | |||||||||
The Notes contain financial covenants that require the Partnership to: | |||||||||
• maintain aggregate free liquidity, which includes the minimum liquidity held under the New $340 million Credit Suisse Senior Secured Revolving Credit Facility, of at least $20.0 million | |||||||||
• the ratio of total borrowings to total assets expressed as a percentage shall not exceed 75% | |||||||||
• maintain minimum net worth of no less than $250.0 million | |||||||||
On terms similar with the New Facility, the Notes restrict the Partnership from declaring or making any distributions if an event of default occurs. | |||||||||
As of December 31, 2014, the Partnership was in compliance with all financial debt covenants under the Notes and the New Facility. | |||||||||
The annual principal payments for the Partnership's outstanding debt arrangements as at December 31, 2014 required to be made after the balance sheet date were as follows: | |||||||||
Year ending December 31, | Amount | ||||||||
2015 | $ | 20,000 | |||||||
2016 | 20,000 | ||||||||
2017 | 20,000 | ||||||||
2018 | 20,000 | ||||||||
2019 | 270,000 | ||||||||
2020 and thereafter | 225,000 | ||||||||
Total | $ | 575,000 | |||||||
The Partnership's weighted average interest rate on its long-term debt for the years ended December 31, 2014 and 2013 was 3.8% and 2.4%, respectively. | |||||||||
Total interest incurred on long-term debt for the years ended December 31, 2014, 2013 and 2012 amounted to $13,338, $8,248 and $8,551, respectively, and, is included in Interest and finance costs (Note 10) in the accompanying consolidated statements of income. | |||||||||
As of December 31, 2014, the Partnership had no unused borrowing capacity under the New Facility. As of December 31, 2014, the Partnership incurred $360 of commitment fees in connection with the undrawn amounts under the refinanced and the new Credit Suisse facilities. Commitment fees incurred for 2013 and 2012 amounted to $327 and $372, respectively. Such fees are included in Interest and finance costs (Note 10) in the accompanying consolidated statements of income. | |||||||||
Fair_Value_Measurements_and_Fi
Fair Value Measurements and Financial Instruments: | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures | |
Fair Value Measurements and Financial Instruments: | 6. Fair Value Measurements: |
The carrying amounts of cash and cash equivalents, trade receivables and trade payables reported in the consolidated balance sheets approximate their respective fair values because of the short-term nature of these accounts. The fair values of long-term bank loans and restricted cash approximate the recorded values due to the variable interest rates payable. The Notes have a fixed rate, and their estimated fair value, determined through Level 2 inputs of the fair value hierarchy (quoted price in the over-the counter-market), is approximately $236.3 million as of December 31, 2014 compared to its carrying value of $250.0 million. The fair value of loan from related party as of December 31, 2013 is not practicable to be estimated due to the absence of the fixed repayment terms. The fair value of non-current portion of amounts due from related party, determined through Level 3 inputs of the fair value hierarchy by discounting future cash flows using the Partnership's estimated cost of capital, is $780 as of December 31, 2014 compared to its' carrying value of $1,125. Additionally, the Partnership considers its creditworthiness in determining the fair value of the credit facilities. | |
The guidance for fair value measurements applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: | |
Level 1: Quoted market prices in active markets for identical assets or liabilities. | |
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. | |
Level 3: Unobservable inputs that are not corroborated by market data. | |
Commitments_and_Contingencies
Commitments and Contingencies: | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure | ||||
Commitments and Contingencies: | 7. Commitments and Contingencies: | |||
(a) Long-term time charters: | ||||
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. In addition, 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. Following the conclusion of the new Gazprom charter and the acceleration of the current charter with BG Group, the Partnership incurred one off non-cash charges of $908 that are presented contra to voyage revenues in the accompanying 2014 consolidated statement of income. | ||||
The Partnership's future minimum contractual charter revenues under its non-cancelable long-term time charter contracts as of December 31, 2014, gross of brokerage commissions, without taking into consideration any assumed off-hire (including those arising out of periodical class survey requirements), are as analyzed below: | ||||
Year ending December 31, | Amount | |||
2015 | $ | 145,611 | ||
2016 | 147,114 | |||
2017 | 115,821 | |||
2018 | 56,893 | |||
2019 | 24,273 | |||
Thereafter | 200,750 | |||
$ | 690,462 | |||
(b) Other: | ||||
Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Partnership's vessels. Currently, management is not aware of any such claims not covered by insurance or | ||||
contingent liabilities, which should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements. The Partnership accrues for the cost of environmental liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable exposure. Currently, management is not aware of any such claims or contingent liabilities, which should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements. The Partnership is covered for liabilities associated with the individual vessels' actions to the maximum limits as provided by Protection and Indemnity (P&I) Clubs, members of the International Group of P&I Clubs. | ||||
(c) Technical and Commercial Management Agreement: | ||||
As further disclosed in Note 3 the Partnership has contracted the commercial, administrative and technical management of its vessels to Dynagas Ltd. For the commercial services provided under this 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 under all circumstances until the termination of each charter party in force at the time of termination. The estimated commission payable to the Manager over the minimum contractual charter revenues, discussed under (a) above, is $8,631. For administrative and technical management fees the Partnership currently pays a daily management fee of $2.6 per vessel (Note 3(a)). Such management fees for the period from January 1, 2015 to the expiration of the agreements on December 31, 2020, adjusted for 3% inflation as per agreement, are estimated to be $31,338 and are analyzed as follows: | ||||
Year ending December 31, | Amount | |||
2015 | $ | 4,840 | ||
2016 | 4,999 | |||
2017 | 5,135 | |||
2018 | 5,289 | |||
2019 | 5,448 | |||
Thereafter | 5,627 | |||
$ | 31,338 | |||
Partners_Equity
Partners' Equity: | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Partners' Equity | ||||||||||||
Partners' Equity: | 8. Partners' Equity: | |||||||||||
a) Issuance of units: As described in Note 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 and all of its incentive distribution rights, which entitle the General Partner to increasing percentages of the cash the Partnership's distributable cash; in exchange for their beneficial ownership interest in the predecessor companies. The unit and per unit data included in the accompanying consolidated financial statements have been restated to reflect the issuance of the above units, for all periods presented. | ||||||||||||
b) Initial Public Offering: On November 18, 2013, the Partnership completed its initial public offering of 8,250,000 common units at a price of $18.00 per unit on the NASDAQ Global Market and raised gross proceeds of $148.5million. The net IPO proceeds amounted to$136.9 million, after deducting underwriting commission of $8.9 million and equity raising expenditures of $2.7 million. The IPO expenditures were fully settled up to December 31, 2014.Concurrently with the sale of the Partnership's common units and at the same price per unit, Dynagas Holding Ltd. sold 4,250,000 common units. The Partnership did not receive any proceeds from this sale. On December 5, 2013, the underwriters exercised their over-allotment option granted to them by Dynagas Holding, following which, the Sponsor offered 1,875,000 additional common units to the public on the same terms as in the initial offering. The Partnership did not receive any proceeds from the sale of these additional common units. | ||||||||||||
c) Follow-on offering: On June 18, 2014, the Partnership completed a follow on public offering of 5,520,000 common units, including the full exercise of the underwriters' over-allotment option to purchase up to 720,000 common units. The net proceeds from the offering amounted to $120.5 million, after deducting the underwriting discount of $4.7 million and offering expenses incurred of $0.6 million and were used to fund the acquisition of the Arctic Aurora (Note 3(c)). As of December 31, 2014, the Partnership had fully settled these offering expenses. Simultaneously with the closing of this offering, the Partnership issued $5,526 General Partner units to the Sponsor to allow it to maintain its 0.1% general partner interest for which the Partnership received $126. | ||||||||||||
d) Distributions and preferential deemed dividend: The partnership agreement provides for minimum quarterly distributions of a specified dollar amount to the extent there is sufficient cash from operations after establishment of cash reserves and payment of fees and expenses, including payments to the General Partner. In general, the Partnership pays quarterly cash distributions in the following manner: | ||||||||||||
• first, 99.9% to the holders of common units and 0.1% to the General Partner, until each common unit has received a minimum quarterly distribution of a specified dollar amount plus any arrearages from prior quarters | ||||||||||||
• second, 99.9% to the holders of subordinated units and 0.1% to the General Partner, until each subordinated unit has received a minimum quarterly distribution of a specified dollar amount; and | ||||||||||||
• third, 99.9% to all unitholders, pro rata, and 0.1% to the General Partner, until each unit has received an aggregate distribution of a specified dollar amount | ||||||||||||
Thereafter, the percentage allocations of the additional available cash from operating surplus among the unitholders, the General Partner and the holders of the incentive distribution rights up to the various target distribution levels are as follows: | ||||||||||||
Total Quarterly | Unitholders | General | Holders | |||||||||
Distribution Target | Partner | of IDRs | ||||||||||
Amount | ||||||||||||
Minimum Quarterly Distribution | $0.37 | 99.9 | % | 0.1 | % | 0 | % | |||||
First Target Distribution | up to $0.420 | 99.9 | % | 0.1 | % | 0 | % | |||||
Second Target Distribution | above $0.420 up to $0.456 | 85 | % | 0.1 | % | 14.9 | % | |||||
Third Target Distribution | Above $0.456 up to $0.548 | 75 | % | 0.1 | % | 24.9 | % | |||||
Thereafter | above $0.548 | 50 | % | 0.1 | % | 49.9 | % | |||||
Under the partnership agreement, the holder of the incentive distribution rights in the Partnership, which is currently the General Partner, assuming that there are no cumulative arrearages on common unit distributions, has the right to receive an increasing percentage of cash distributions after the first target distribution. | ||||||||||||
There were no distributions to the partners during the year ended December 31, 2013. On February 14, 2014 the Partnership paid a cash distribution for the fourth quarter of 2013 of $0.1746 per unit, pro-rated from the Offering closing date through December 31, 2013, which amounted to $5.2 million, to all unitholders on record as of February 10, 2014, pursuant to a decision taken by the Board of Directors on January 31, 2014. | ||||||||||||
On April 25, 2014 the Partnership's Board of Directors, approved its cash distribution for the three month period ended March 31, 2014 of $0.365 per unit, or $11.0 million, which was paid on May 12, 2014, to all unitholders of record as of May 5, 2014. | ||||||||||||
On July 21, 2014 the Partnership's Board of Directors further approved its cash distribution for the quarter ended June 30, 2014 of $0.365 per unit, or $13.0 million, which was paid on August 12, 2014, to all unitholders of record as of August 5, 2014. | ||||||||||||
On July 31, 2014, following the Arctic Aurora acquisition, the Partnership's Board of Directors approved the Management's recommendation for an increase in the quarterly cash distribution paid to common, subordinated and general partner unitholders by $0.025 per unit (an annualized increase of $0.10 per unit), which became effective with respect to the third quarter 2014 distribution. On November 12, 2014, the Partnership paid in this respect, an amount of $13.8 million, or $0.39 per unit, to all unitholders of record as of November 5, 2014. | ||||||||||||
On January 14 2015, following the Yenisei River acquisition, the Partnership's Board of Directors approved a quarterly cash distribution for the fourth quarter of 2014 of $0.4225 per unit which will initially become effective for the Partnership's distribution with respect to the quarter ended December 31, 2014 (Note 12). | ||||||||||||
In addition, upon acquisition from the Partneship's Sponsor of the Arctic Aurora and the Yenisei River, the purchase price in excess of the vessels' book value at the date of each transaction, aggregating to $88.1 million, was considered a preferential deemed dividend to the Sponsor and was allocated to Partner's equity in accordance with the number of units held by the Sponsor. | ||||||||||||
Earnings_per_Unit
Earnings per Unit: | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Unit | ||||||||||
Earnings per Unit: | 9. Earnings per Unit: | |||||||||
The Partnership calculates earnings per unit by allocating distributed and undistributed net income for each period to each class of units. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution specified in Dynagas Partners' partnership agreement, as generally prescribed in Note 8 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 calculations of the basic and diluted earnings per unit, are presented below: | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Net income attributable to common unitholders | $ | 28,323 | $ | 22,787 | $ | 9,239 | ||||
Earnings per common unit, basic and diluted | $ | 1.58 | $ | 2.95 | $ | 1.37 | ||||
Weighted average number of common units outstanding, basic and diluted | 17,964,288 | 7,729,521 | 6,735,000 | |||||||
Interest_and_Finance_Costs
Interest and Finance Costs: | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Interest and Finance Costs | ||||||||||
Interest and Finance Costs: | 10. Interest and Finance Costs: | |||||||||
The amounts in the accompanying consolidated statements of income are analyzed as follows: | ||||||||||
Year ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Interest expense (Note 5) | $ | 13,338 | $ | 8,248 | $ | 8,551 | ||||
Amortization and write-off of deferred financing fees | 785 | 1,050 | 590 | |||||||
Commitment fees (Note 5) | 360 | 327 | 372 | |||||||
Other | 41 | 107 | 63 | |||||||
Total | $ | 14,524 | $ | 9,732 | $ | 9,576 | ||||
Taxes
Taxes: | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure | |
Taxes: | 11. Taxes: |
Under the laws of the countries of the companies' incorporation and / or vessels' registration, the companies are not subject to tax on international shipping income; however, they are subject to registration and tonnage taxes, which are included in Vessel operating expenses in the accompanying consolidated statements of income. In addition, effective January 1, 2013, each foreign flagged vessel managed in Greece by Greek or foreign ship management companies is subject to Greek tonnage tax, under the laws of the Greek Republic. The technical manager of the Partnership's vessel's, Dynagas Ltd an affiliate (Note 3(a)) which is established in Greece under Greek Law 89/67 is responsible for the filing and payment of the respective tonnage tax on behalf the Partnership. These tonnage taxes for the years ended December 31, 2014 and 2013 amounted to $245 and $96, respectively, and have also been included in Vessel operating expenses in the accompanying consolidated statements of income. | |
Pursuant to the Internal Revenue Code of the United States (the “Code”), U.S. source income from the international operations of ships is generally exempt from U.S. tax if the Partnership operating the ships meets both of the following requirements, (a) the Partnership is organized in a foreign country that grants an equivalent exception to corporations organized in the United States and exempts the type of income earned by the vessel owing Partnership and (b) either (i) more than 50% of the value of the Partnership's stock is owned, directly or indirectly, by individuals who are “residents” of the Partnership's country of organization or of another foreign country that grants an “equivalent exemption” to corporations organized in the United States (50% Ownership Test) or (ii) the Partnership's stock is “primarily and regularly traded on an established securities market” in its country of organization, in another country that grants an “equivalent exemption” to United States corporations, or in the United States (Publicly-Traded Test). Additionally, the Partnership must meet all of the documentation requirements as outlined in the regulations. | |
The Partnership and each of its subsidiaries expects to qualify for this statutory tax exemption for the 2014, 2013 and 2012 taxable years, and the Partnership takes this position for United States federal income tax return reporting purposes. In the absence of an exemption under Section 883, based on its U.S. source Shipping Income, the Partnership would be subject to U.S. federal income tax approximately nil for the years ended December 31, 2013 and 2012 and $15 for the year ended December 31, 2014. | |
Subsequent_Events
Subsequent Events: | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events | |
Subsequent Events: | 12. Subsequent Events: |
On January 14, 2015 the Partnership's Board of Directors approved its increased over the previous quarter cash distribution, for the quarter ended December 31, 2014 of $0.4225 per unit, or $15.0 million, which was paid on February 12, 2015, to all unitholders of record as of February 5, 2015. |
Significant_Accounting_Policie1
Significant Accounting Policies and Recent Accounting Pronouncements (Policy) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Significant Accounting Policies and Recent Accounting Pronouncements | |||||||
Principles of Consolidation: | (a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Dynagas Partners and its wholly-owned subsidiaries, on the basis of the reorganization referred to in Note 1, assuming that Dynagas Partners and the predecessor companies were consolidated for all periods presented. All intercompany balances and transactions have been eliminated upon consolidation. | ||||||
Use Of Estimates: | (b) Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||
Other Comprehensive Income: | (c) Other Comprehensive Income: The Partnership follows the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 220, “Comprehensive Income” which requires separate presentation of certain transactions, which are recorded directly as components of equity. The Partnership has no such transactions which affect other comprehensive income and, accordingly, for the years ended December 31, 2014, 2013 and 2012 comprehensive income equals net income. | ||||||
Foreign Currency Translation: | (d) Foreign Currency Translation: The functional currency of the Partnership is the U.S. Dollar because the Partnership's vessels operate in international shipping markets, and therefore primarily transact business in U.S. Dollars. The Partnership's books of accounts are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars using the balance sheet date exchange rates. Resulting gains or losses are included in Other, net in the accompanying consolidated statements of income. | ||||||
Cash and Cash Equivalents: | (e) Cash and Cash Equivalents: The Partnership considers highly liquid investments such as time deposits with an original maturity of three months or less to be cash equivalents. | ||||||
Restricted cash: | (f) Restricted cash: Restricted cash comprises of minimum liquidity collateral requirements or minimum required cash deposits, as defined in the Partnership's loan agreements. | ||||||
Trade Receivables, net: | (g) Trade Receivables, net: The amount shown as trade receivables, net, at each balance sheet date, includes receivables from charterers for hire net of any provision for doubtful accounts. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts primarily based on the aging of such balances and any amounts in disputes. Provision for doubtful accounts as of December 31, 2014 and 2013 was nil and $63, respectively. | ||||||
Inventories: | (h) Inventories: Inventories consist of lubricants which are stated at the lower of cost or market. Cost is determined by the first in, first out method. Inventories may also consist of bunkers that are also stated at the lower of cost or market and cost is determined by the first in, first out method. | ||||||
Insurance Claims: | (i) Insurance Claims: The Partnership records insurance claim recoveries for insured losses incurred on damage to fixed assets, loss of hire and for insured crew medical expenses. Insurance claim recoveries are recorded, net of any deductible amounts, at the time the Partnership's vessels suffer insured damages or when crew medical expenses are incurred, when recovery is probable under the related insurance policies, the Partnership can make an estimate of the amount to be reimbursed following submission of the insurance claim and when the claim is not subject to litigation. | ||||||
Vessels, Net: | (j) Vessels, Net: Vessels are stated at cost, which consists of the contract price and any material expenses incurred upon delivery (initial repairs, improvements and delivery expenses, interest expense and on-site supervision costs incurred during the construction periods). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. The cost of each of the Partnership's vessels is depreciated beginning when the vessel is ready for her intended use, on a straight-line basis over the vessel's remaining economic useful life, after considering the estimated residual value. With effect from October 1, 2014, the Partnership revised its' initial scrap rate estimate (Note 4). Management estimates the useful life of the Partnership's vessels to be 35 years from the date of initial delivery from the shipyard. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its remaining useful life is adjusted at the date such regulations are adopted. | ||||||
Impairment of Long-Lived Assets: | (k) Impairment of Long-Lived Assets: The Partnership follows ASC 360-10-40 “Impairment or Disposals of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The standard requires that long-lived assets and certain identifiable intangibles held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When the estimate of undiscounted projected operating cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Partnership should evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset. The fair values are determined through Level 2 inputs of the fair value hierarchy as defined in ASC 820 “Fair value measurements and disclosures” based on management's estimates and assumptions and by making use of available market data and taking into consideration third party valuations and other market observable data that allow value to be determined. The Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances, such as undiscounted projected operating cash flows, business plans to dispose a vessel earlier than the end of its useful life and prevailing market conditions, indicate that the carrying amount of the assets may not be recoverable. The Partnership determines undiscounted projected net operating cash flows, for each vessel and compares it to the vessel's carrying value. In developing estimates of future cash flows, the Partnership must make assumptions about future charter rates, vessel operating expenses, fleet utilization, and the estimated remaining useful life of the vessels. These assumptions are based on historical trends as well as future expectations. The projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed fleet days and an estimated charter rate for the unfixed days. Expected outflows for scheduled vessels' maintenance and vessel operating expenses are based on historical data, and adjusted annually assuming an average annual inflation rate prevailing at the time of test. An estimate is also applied to effective fleet utilization, taking into account the period(s) each vessel is expected to undergo her scheduled maintenance (dry-docking and special surveys) and vessels loss of hire from repositioning or other conditions. Estimates for the remaining estimated useful lives of the current fleet and scrap values are identical with those employed as part of the Partnership's depreciation policy. As of December 31, 2014, 2013 and 2012, the Partnership concluded that there were no events or changes in circumstances indicating that the carrying amount of its vessels may not be recoverable and accordingly no impairment loss was recorded these years. | ||||||
Accounting for Special Survey and Dry-Docking Costs: | (l) Accounting for Special Survey and Dry-Docking Costs: The Partnership follows the direct expense method of accounting for dry-docking and special survey costs where such are expensed in the period incurred. The vessels undergo dry-dock or special survey approximately every five years during the first fifteen years of their life and every two and a half years within their following useful life. Costs relating to routine repairs and maintenance are also expensed as incurred. Three of the Partnership's fleet vessels completed their initial scheduled special survey repairs in 2012. | ||||||
Financing Costs: | (m) Financing Costs: Costs associated with new loans including fees paid to lenders or required to be paid to third parties on the lender's behalf for obtaining new loans or refinancing existing ones are recorded as deferred charges. Such fees are deferred and amortized to interest and finance costs during the life of the related debt using the effective interest method. Unamortized fees are presented in the accompanied balance sheets as deferred charges. Unamortized fees relating to loans repaid or refinanced as debt extinguishments and loan commitment fees are expensed as interest and finance costs in the period incurred in the accompanying statements of income. | ||||||
Concentration of Credit Risk: | (n) Concentration of Credit Risk: Financial instruments, which potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents and trade receivables. The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership places its cash and cash equivalents, consisting mostly of deposits, with high credit qualified financial institutions. The Partnership performs periodic evaluations of the relative credit standing of those financial institutions. The Partnership limits its credit risk with accounts receivable by performing ongoing credit evaluations of its customers' financial condition and generally does not require collateral for its accounts receivable. | ||||||
During the years ended December 31, 2014 and 2013, charterers that individually accounted for more than 10% of the Partnership's revenues were as follows: | |||||||
Charterer | |||||||
2014 | 2013 | ||||||
A | 50 | % | 61 | % | |||
B | 36 | % | 39 | % | |||
C | 14 | % | — | % | |||
100 | % | 100 | % | ||||
Accounting for Revenues and Related Expenses: | (o) Accounting for Revenues and Related Expenses: The Partnership generates its revenues from charterers for the chartering of its vessels. All vessels are chartered under time charters, where a contract is entered into for the use of a vessel for a specific period of time and at a specified daily charter hire rate. If a charter agreement exists and collection of the related revenue is reasonably assured, revenue is recognized, as it is earned ratably over the duration of the period of the time charter. Furthermore, revenues from time chartering of vessels are accounted for as operating leases and are thus recognized on a straight line basis as the average minimum lease revenue over the rental periods of such charter agreements, as service is performed with the residual or excess from actually collected hire based on the time charter agreement for each period being classified as deferred revenue in the accompanying consolidated balance sheets. Unearned revenue includes cash received prior to the balance sheet date for which all criteria to recognize as revenue have not yet been met as at the balance sheet date and accordingly is related to revenue earned after such date. Commissions are always paid for by the Company while the remaining voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid for by the charterer under the time charter arrangements or by the Company during periods of off-hire. All voyage expenses are expensed as incurred, except for commissions. Commissions paid to brokers are deferred and amortized over the related charter period to the extent revenue has been deferred since commissions are earned as the Partnership's revenues are earned. | ||||||
Repairs and Maintenance: | (p) Repairs and Maintenance: All repair and maintenance expenses including underwater inspection expenses are expensed in the period incurred. Such costs are included in vessel operating expenses in the accompanying consolidated statements of income. | ||||||
Earnings Per Unit: | (q) Earnings Per Unit: The Partnership consists of common units, subordinated units, a general partner interest and incentive distribution rights. Our incentive distribution rights are a separate class of non-voting interests that are currently held by our general partner but, subject to certain restrictions, may be transferred or sold apart from general partner's interest. In this respect the Partnership calculates basic earnings per unit by allocating earnings to the General Partner, limited partners and incentive distribution rights holder using the two-class method and by utilizing the contractual terms of the partnership agreement. Basic earnings per unit are computed by dividing net income available to each class of unitholders by the weighted average number of each class of units outstanding during the year. Diluted earnings per unit reflect the potential dilution that could occur if securities or other contracts to issue units were exercised, if any. The Partnership had no dilutive securities outstanding during the three-year period ended December 31, 2014. | ||||||
Segment Reporting: | (r) Segment Reporting: The Partnership has determined that it operates under one reportable segment relating to its operations as it operates solely LNG vessels. The Partnership reports financial information and evaluates its operations and operating results by type of vessel and not by the length or type of ship employment for its customers. The Partnership's management does not use discrete financial information to evaluate operating results for each type of charter. Although revenue can be identified according to these types of charters or for charters with different duration, management cannot and does not identify expenses, profitability or other financial information for these charters. Furthermore, when the Partnership charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographic information is impracticable. | ||||||
Fair Value Measurements: | (s) Fair Value Measurements: The Partnership adopted ASC 820, “Fair Value Measurements and Disclosures”, which defines, and provides guidance as to the measurement of fair value. This guidance creates a fair value hierarchy of measurement and indicates that, when possible, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable data that are not corroborated by market data (Level 3), for example, the reporting entity's own data. Observable market based inputs or unobservable inputs that are corroborated by market data are classified under Level 2 of the fair value hierarchy. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy. ASC 820 applies when assets or liabilities in the financial statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other accounting principles. Upon issuance of guidance on the fair value option in 2007, the Partnership elected not to report the then existing financial assets or liabilities at fair value that were not already reported as such. | ||||||
Commitments and Contingencies: | (t) Commitments and Contingencies: Commitments are recognized when the Partnership has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle this obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the present value of the expenditure expected to be required to settle the obligation. Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not recognized in the financial statements but are disclosed when an inflow of economic benefits is probable. | ||||||
Variable Interest Entities: | (u) Variable Interest Entities: ASC 810-10, addresses the consolidation of business enterprises (variable interest entities) to which the usual condition (ownership of a majority voting interest) of consolidation does not apply. The guidance focuses on financial interests that indicate control. It concludes that in the absence of clear control through voting interests, a Partnership's exposure (variable interest) to the economic risks and potential rewards from the variable interest entity's assets and activities are the best evidence of control. Variable interests are rights and obligations that convey economic gains or losses from changes in the value of the variable interest entity's assets and liabilities. Additionally, ASU 2009-17, Consolidations (Topic 810) “Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities” determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entity's purpose and design and the reporting entity's ability to direct the activities of the other entity that most significantly impact the other entity's economic performance. ASU 2009-17 also requires a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement. The Partnership evaluates financial instruments, service contracts, and other arrangements to determine if any variable interests relating to an entity exist, as the primary beneficiary would be required to include assets, liabilities, and the results of operations of the variable interest entity in its financial statements. The Partnership's evaluation did not result in an identification of variable interest entities as of December 31, 2014 and 2013. | ||||||
Accounting for Financial Instruments and Derivatives: | (v) Accounting for Financial Instruments and Derivatives: The principal financial assets of the Partnership consist of cash and cash equivalents, restricted cash and trade receivables, net. The principal financial liabilities of the Partnership consist of trade and other payables, accrued liabilities and long-term debt and interest-rate swaps. Derivative financial instruments are used to manage risk related to fluctuations of interest rates. ASC 815, Derivatives and Hedging, requires all derivative contracts to be recorded at fair value, as determined in accordance with ASC 820, Fair Value Measurements and Disclosures (Note 6). The changes in fair value of a derivative contract are recognized in earnings unless specific hedging criteria are met. | ||||||
At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which the Partnership wishes to apply hedge accounting and the risk management objective and strategy undertaken for the hedge. The documentation includes identification of the hedging instrument, hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument's effectiveness in offsetting exposure to changes in the hedged item's cash flows attributable to the hedged risk. A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a highly probable forecasted transaction that could affect profit or loss. Such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are assessed on an ongoing basis to determine whether they actually have been highly effective throughout the financial reporting periods for which they were designated. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in Accumulated Other Comprehensive Income/ (Loss) and subsequently recognized in earnings when the hedged items impact earnings. | |||||||
None of the Company's derivative instruments matured in 2012 met those hedging criteria and, therefore, the changes in fair value were recognized as an increase or decrease in statements of income. | |||||||
Recent Accounting Pronouncements: | Recent Accounting Pronouncements: | ||||||
ASU 2014-15: In August 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements- Going Concern (Subtopic 205-40): Disclosure of uncertainties about an entity's ability to continue as a going concern which provides guidance in GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financing for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued (or are available to be issued). In case substantial doubt about an entity's ability to continue as a going concern is substantiated, the entity should disclose information that enables users of the financial statements to understand the conditions that raised substantial doubt about the entity's ability to continue as a going concern, management's evaluation of the significance of those conditions and management's plans that either alleviated or are intended to mitigate the arising events and conditions. The amendments in this Update are effective for the annual period ending after December 15, 2016 and for annual period and interim periods thereafter. Early application is permitted. | |||||||
ASU 2015-02: In February 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-02, Amendments to the Consolidation Analysis- Consolidation (Topic 810). The amendments in this Update change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities and are effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company has not yet evaluated the impact, if any, of the adoption of this standards update. |
Significant_Accounting_Policie2
Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Significant Accounting Policies and Recent Accounting Pronouncements | |||||||
Major Charterers | Charterer | ||||||
2014 | 2013 | ||||||
A | 50 | % | 61 | % | |||
B | 36 | % | 39 | % | |||
C | 14 | % | — | % | |||
100 | % | 100 | % | ||||
Vessels_net_Tables
Vessels, net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property Plant and Equipment Net | ||||||||||
Vessels Table | Vessel | Accumulated | Net Book | |||||||
Cost | Depreciation | Value | ||||||||
Balance December 31, 2012 | $ | 540,454 | $ | -73.7 | $ | 466,754 | ||||
—Depreciation | — | -13,579 | -13,579 | |||||||
Balance December 31, 2013 | $ | 540,454 | $ | -87,279 | $ | 453,175 | ||||
—Acquisitions (Note 3(c)) | 404,530 | — | 404,530 | |||||||
—Depreciation | — | -17,822 | -17,822 | |||||||
Balance December 31, 2014 | $ | 944,984 | $ | -105,101 | $ | 839,883 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure | |||||||||
Loans And Credit Facilities Amounts Outstanding | Debt instruments | Borrowers-Issuers | 2014 | 2013 | |||||
$262.1 Million Credit Suisse credit facility | Pegasus-Lance-Seacrown | $ | — | $ | 214,085 | ||||
$340.0 Million Credit Suisse credit facility | Pegasus-Lance-Seacrown-Fareastern | 325,000 | — | ||||||
$250.0 Million Senior Unsecured Notes | Dynagas LNG Partners LP - Dynagas Finance Inc. | 250,000 | — | ||||||
Total | $ | 575,000 | $ | 214,085 | |||||
Less current portion | $ | 20,000 | $ | — | |||||
Long-term portion | $ | 555,000 | $ | 214,085 | |||||
Minimum Annual Principal Payments | Year ending December 31, | Amount | |||||||
2015 | $ | 20,000 | |||||||
2016 | 20,000 | ||||||||
2017 | 20,000 | ||||||||
2018 | 20,000 | ||||||||
2019 | 270,000 | ||||||||
2020 and thereafter | 225,000 | ||||||||
Total | $ | 575,000 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure | ||||
Minimum Future Charter Revenues | Year ending December 31, | Amount | ||
2015 | $ | 145,611 | ||
2016 | 147,114 | |||
2017 | 115,821 | |||
2018 | 56,893 | |||
2019 | 24,273 | |||
Thereafter | 200,750 | |||
$ | 690,462 | |||
Management Fees | Year ending December 31, | Amount | ||
2015 | $ | 4,840 | ||
2016 | 4,999 | |||
2017 | 5,135 | |||
2018 | 5,289 | |||
2019 | 5,448 | |||
Thereafter | 5,627 | |||
$ | 31,338 | |||
Partners_Equity_Tables
Partners' Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Partners' Equity | ||||||||||||
Percentage allocations of additional available cash from operating surplus amongst the unit holders | Total Quarterly | Unitholders | General | Holders | ||||||||
Distribution Target | Partner | of IDRs | ||||||||||
Amount | ||||||||||||
Minimum Quarterly Distribution | $0.37 | 99.9 | % | 0.1 | % | 0 | % | |||||
First Target Distribution | up to $0.420 | 99.9 | % | 0.1 | % | 0 | % | |||||
Second Target Distribution | above $0.420 up to $0.456 | 85 | % | 0.1 | % | 14.9 | % | |||||
Third Target Distribution | Above $0.456 up to $0.548 | 75 | % | 0.1 | % | 24.9 | % | |||||
Thereafter | above $0.548 | 50 | % | 0.1 | % | 49.9 | % | |||||
Earnings_per_Unit_Tables
Earnings per Unit (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Unit | ||||||||||
Basic and Diluted Earnings per Unit | Year ended December 31, | |||||||||
2014 | 2013 | 2012 | ||||||||
Net income attributable to common unitholders | $ | 28,323 | $ | 22,787 | $ | 9,239 | ||||
Earnings per common unit, basic and diluted | $ | 1.58 | $ | 2.95 | $ | 1.37 | ||||
Weighted average number of common units outstanding, basic and diluted | 17,964,288 | 7,729,521 | 6,735,000 | |||||||
Interest_and_Finance_Costs_Tab
Interest and Finance Costs (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Interest and Finance Costs | ||||||||||
Interest and Finance Costs | Year ended December 31, | |||||||||
2014 | 2013 | 2012 | ||||||||
Interest expense (Note 5) | $ | 13,338 | $ | 8,248 | $ | 8,551 | ||||
Amortization and write-off of deferred financing fees | 785 | 1,050 | 590 | |||||||
Commitment fees (Note 5) | 360 | 327 | 372 | |||||||
Other | 41 | 107 | 63 | |||||||
Total | $ | 14,524 | $ | 9,732 | $ | 9,576 | ||||
Basis_of_Presentation_and_Gene1
Basis of Presentation and General Information (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 18, 2013 | Oct. 29, 2013 | Dec. 05, 2013 | Jun. 18, 2014 |
Property Plant And Equipment | ||||||
Common unitholders - units issued | 20,505,000 | 14,985,000 | ||||
Subordinated unitholders - units issued | 14,985,000 | 14,985,000 | ||||
General Partner unitholders - units issued | 35,526 | 30,000 | ||||
Clean Energy | ||||||
Property Plant And Equipment | ||||||
Cubic Meters | 149,700 | |||||
Vessel Year Built | 2007 | |||||
Delivery Date | Mar-07 | |||||
Ob River (renamed from Clean Power in July 2012) | ||||||
Property Plant And Equipment | ||||||
Cubic Meters | 149,700 | |||||
Vessel Year Built | 2007 | |||||
Delivery Date | Jul-07 | |||||
Clean Force | ||||||
Property Plant And Equipment | ||||||
Cubic Meters | 149,700 | |||||
Vessel Year Built | 2008 | |||||
Delivery Date | Jan-08 | |||||
Arctic Aurora | ||||||
Property Plant And Equipment | ||||||
Cubic Meters | 155,000 | |||||
Vessel Year Built | 2013 | |||||
Delivery Date | Jul-13 | |||||
Yenisei River | ||||||
Property Plant And Equipment | ||||||
Cubic Meters | 155,000 | |||||
Vessel Year Built | 2013 | |||||
Delivery Date | Jul-13 | |||||
Dynagas Holding Ltd | ||||||
Property Plant And Equipment | ||||||
Common unitholders - units issued | 6,735,000 | |||||
Common unitholders - units offered | 4,250,000 | |||||
Subordinated unitholders - units issued | 14,985,000 | |||||
Ownership percentage in Dynagas LNG Partners LP | 44.00% | |||||
Revolving credit facility for general purposes | $30,000 | |||||
Dynagas Holding Ltd | Over-allotment | ||||||
Property Plant And Equipment | ||||||
Common unitholders - units offered | 1,875,000 | |||||
Dynagas LNG Partners LP | ||||||
Property Plant And Equipment | ||||||
Common unitholders - units offered | 8,250,000 | 5,520,000 | ||||
Units issued price per unit | $22.79 | |||||
Dynagas LNG Partners LP | Over-allotment | ||||||
Property Plant And Equipment | ||||||
Common unitholders - units offered | 720,000 | |||||
Dynagas GP LLC | ||||||
Property Plant And Equipment | ||||||
General Partner unitholders - units issued | 30,000 | |||||
General Partner Interest in Dynagas LNG Partners LP | 0.10% | |||||
Dynagas Operating GP LLC | ||||||
Property Plant And Equipment | ||||||
Ownership interest in subsidiary | 100.00% | |||||
Dynagas Operating LP | ||||||
Property Plant And Equipment | ||||||
Ownership interest in subsidiary | 100.00% | |||||
Dynagas Finance Inc. | ||||||
Property Plant And Equipment | ||||||
Ownership interest in subsidiary | 100.00% |
Significant_Accounting_Policie3
Significant Accounting Policies and Recent Accounting Pronouncements - Major Charterers (Table) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Entity Wide Revenue Major Customer | ||
Percentage of time charter revenue | 100.00% | 100.00% |
Charterer A | ||
Entity Wide Revenue Major Customer | ||
Percentage of time charter revenue | 50.00% | 61.00% |
Charterer B | ||
Entity Wide Revenue Major Customer | ||
Percentage of time charter revenue | 36.00% | 39.00% |
Charterer C | ||
Entity Wide Revenue Major Customer | ||
Percentage of time charter revenue | 14.00% | 0.00% |
Significant_Accounting_Policie4
Significant Accounting Policies and Recent Accounting Pronouncements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Significant Accounting Policies and Recent Accounting Pronouncements | ||
Provision for doubtful accounts | $0 | $63 |
Vessels useful life | 35 years | |
Vessels dry-dock or special survey period within the first 15 years of useful life | every 5 years | |
Vessels dry-dock or special survey period within the remaining useful life | every 2.5 years |
Transactions_with_related_part1
Transactions with related parties - Dynagas Ltd. (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction | |||
Management fees annual upward percentage adjustment | 3.00% | ||
Daily management fee | $2,600 | $2,500 | |
Lump sum payable to the management company for the supervision of vessels construction | 700,000 | ||
Management services agreement duration (effected January 1, 2013) | 8 years | ||
Fees charged for management services | 3,566,000 | 2,737,000 | 2,638,000 |
Charter Hire Commission payable to the Management company | 1.25% | ||
Commissions charged by the Manager | 1,363,000 | 1,011,000 | 981,000 |
Working capital advances granted to the Manager | 889,000 | 1,456,000 | |
Management fee paid in advance | 1,125,000 | 675,000 | |
Management agreement terms | The agreements will terminate automatically after a change of control of the owners and/or of the owner's ultimate parent, in which case an amount equal to the estimated remaining fees but in any case not less than for a period of at the least 36 months and not more than 60 months, will become payable to the Manager. | ||
Cancellation of management agreement termination fee | 23,510,000 | ||
Minimum Daily Management Fee | |||
Related Party Transaction | |||
Daily management fee | 2,300 | ||
Maximum Daily Management Fee | |||
Related Party Transaction | |||
Daily management fee | $2,400 |
Transactions_with_related_part2
Transactions with related parties - Loan from related party (Details) (Dynagas Holding, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 18, 2013 |
Dynagas Holding | |||
Debt Instrument | |||
Revolving credit facility borrowing capacity | $30,000 | $30,000 | |
Line of credit facility, duration | Five-year term revolving credit facility | ||
Revolving credit facility amount drawn down | $0 | $5,500 |
Transactions_with_related_part3
Transactions with related parties - Omnibus Agreement - Vessel acquisitions from our Sponsor (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 23, 2014 | Sep. 25, 2014 | Sep. 15, 2014 | Jun. 19, 2014 |
Related Party Transaction [Line Items] | |||||||
Preferential deemed dividend | $88,122 | $0 | $0 | ||||
Arctic Aurora | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of ownership in entity | 100.00% | ||||||
LNG Carrier Year Built | 2013 | ||||||
Borrowings associated with vessel acquisitions from our Sponsor | |||||||
Related Party Transaction [Line Items] | |||||||
Revolving credit facility borrowing capacity | 340,000 | ||||||
Senior Unsecured Notes | 250,000 | ||||||
Yenisei River | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of ownership in entity | 100.00% | ||||||
LNG Carrier Year Built | 2013 | ||||||
Arctic Aurora and Yenisei River | |||||||
Related Party Transaction [Line Items] | |||||||
Total consideration paid to acquire entity | 492,500 | ||||||
Preferential deemed dividend | $88,122 |
Transactions_with_related_part4
Transactions with related parties - Executive - Administrative Services Agreement (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 21, 2014 | Dec. 31, 2014 | Dec. 30, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Executive services agreement | Executive services agreement | Administrative Services Agreement | Administrative Services Agreement | |
EUR (€) | USD ($) | USD ($) | USD ($) | ||||
Related Party Transaction [Line Items] | |||||||
Annual executive services fee | € 538 | $654 | |||||
Executive services agreement duration | Initial term of five years and automatically renews for successive five year terms unless terminated earlier. | ||||||
General and administrative expenses- related party | 937 | 0 | 0 | 803 | 134 | ||
Eur/US Dollar exchange rate | 1.2156 | ||||||
Monthly administrative services fee | 10 | ||||||
Administrative services duration | The agreement can be terminated upon 120 days notice granted either by the Partnership's Board or by Dynagas as per the provisions of the agreement. | ||||||
Due to related party | $142 | $0 | $134 |
Vessels_net_Table_Details
Vessels, net (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment | |||
Balance beginning of period | $453,175 | ||
Depreciation | 17,822 | 13,579 | 13,616 |
Balance end of period | 839,883 | 453,175 | |
Vessel Cost | |||
Property Plant And Equipment | |||
Balance beginning of period | 540,454 | 540,454 | |
Acquisitions (Note 3(c)) | 404,530 | 0 | |
Depreciation | 0 | 0 | |
Balance end of period | 944,984 | 540,454 | |
Accumulated Depreciation | |||
Property Plant And Equipment | |||
Balance beginning of period | -87,279 | -73,700 | |
Acquisitions (Note 3(c)) | 0 | 0 | |
Depreciation | -17,822 | -13,579 | |
Balance end of period | -105,101 | -87,279 | |
Net Book Value | |||
Property Plant And Equipment | |||
Balance beginning of period | 453,175 | 466,754 | |
Acquisitions (Note 3(c)) | 404,530 | 0 | |
Depreciation | -17,822 | -13,579 | |
Balance end of period | $839,883 | $453,175 |
Vessels_Net_Details
Vessels, Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 19, 2014 |
Debt Instrument [Line Items] | ||||
Scrap value per light weight ton | 0.685 | 0.717 | ||
Percentage for estimation of vessel residual value | 12.00% | |||
Change in accounting estimate financial effect | 38 | |||
New $340 million Credit Suisse Senior Secured Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $340,000 |
LongTerm_Debt_Credit_Facilitie
Long-Term Debt - Credit Facilities And Senior Notes (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ||
Total | $575,000 | $214,085 |
Less current portion | 20,000 | 0 |
Long-term portion | 555,000 | 214,085 |
$262.1 Million Credit Suisse credit facility | Pegasus-Lance-Seacrown | ||
Debt Instrument | ||
Long-term debt | 0 | 214,085 |
$340.0 Million Credit Suisse credit facility | Pegasus-Lance-Seacrown-Fareastern | ||
Debt Instrument | ||
Long-term debt | 325,000 | 0 |
$250.0 Million Senior Unsecured Notes | ||
Debt Instrument | ||
Senior Unsecured Notes | 250,000 | |
$250.0 Million Senior Unsecured Notes | Dynagas LNG Partners LP - Dynagas Finance Inc. | ||
Debt Instrument | ||
Senior Unsecured Notes | $250,000 | $0 |
LongTerm_Debt_Principal_Paymen
Long-Term Debt - Principal Payments (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure | ||
2015 | $20,000 | |
2016 | 20,000 | |
2017 | 20,000 | |
2018 | 20,000 | |
2019 | 270,000 | |
2020 and thereafter | 225,000 | |
Total | $575,000 | $214,085 |
LongTerm_Debt_Credit_Facilitie1
Long-Term Debt - Credit Facilities And Senior Notes (Details) (USD $) | 12 Months Ended | 10 Months Ended | 11 Months Ended | 6 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 14, 2013 | Nov. 18, 2013 | Jun. 19, 2014 | Jun. 23, 2014 | Sep. 15, 2014 |
Debt Instrument | ||||||||
Proceeds from long-term debt | $590,000 | $214,085 | $220,000 | |||||
Weighted average interest rate | 3.80% | 2.40% | ||||||
Total interest incurred on long-term debt | 13,338 | 8,248 | 8,551 | |||||
Line of credit facility, commitment fee amount | 360 | 327 | 372 | |||||
$262.1 million Credit Suisse Senior Secured Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Principal amount | 262,125 | |||||||
Line of credit facility, frequency of payments | The amount available under the Facility would be reduced each quarter for 14 consecutive quarters by $5,000 for the first 13 quarters and by approximately $197,125 for the fourteenth quarter ending on June 30, 2017. | |||||||
Line of revolving credit facility, reduction terms | 5,000 | |||||||
Debt instrument, periodic payment terms, balloon payment | 197,125 | |||||||
Amount repaid | 346,100 | |||||||
Credit facility amount drawn down | 214,085 | |||||||
Debt instrument, description of variable rate basis | LIBOR | |||||||
New $340 million Credit Suisse Senior Secured Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Principal amount | 340,000 | |||||||
Line of credit facility, frequency of payments | The facility bears interest at LIBOR plus a margin and is payable in 28 consecutive equal quarterly installments of $5.0 million each and a balloon payment of $200.0 million at maturity in March 2021. | |||||||
Line of revolving credit facility, reduction terms | 5,000 | |||||||
Debt instrument, periodic payment terms, balloon payment | 200,000 | |||||||
Amount repaid | 214,100 | |||||||
Credit facility amount drawn down | 340,000 | |||||||
Debt instrument, description of variable rate basis | LIBOR | |||||||
Line of credit facility, remaining borrowing capacity | 0 | |||||||
$250.0 Million Senior Unsecured Notes due 2019 | ||||||||
Debt Instrument | ||||||||
Principal amount | 250,000 | |||||||
Net proceeds from issuance of Senior Notes | $244,900 | |||||||
Senior notes, terms | The Notes bear interest from the date of the original issue until maturity at a rate of 6.25% per year, payable quarterly in arrears on January 30, April 30, July 30 and October 30 of each year. | |||||||
Senior notes interest rate | 6.25% |
LongTerm_Debt_Loans_And_Credit
Long-Term Debt - Loans And Credit Facilities Terms and Compliance (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instrument | |
Covenant compliance | As of December 31, 2014, the Partnership was in compliance with all financial debt covenants under the Notes and the New Facility. |
New $340 million Credit Suisse Senior Secured Revolving Credit Facility | |
Debt Instrument | |
Line of credit facility, covenant terms | The New Facility contains financial and other covenants similar to those of the refinanced facility that require the Partnership to: -maintain total consolidated liabilities of less than 65% of the Partnership's consolidated market value adjusted total assets -maintain an interest coverage ratio of at least 3.0 times -maintain minimum liquidity equal to at least $24.0 million -employ at least three vessels in the fleet on charters with a minimum initial term of at least three years at above breakeven costs and -maintain a hull cover ratio, being the ratio of the aggregate of the vessels' market values and the net realizable value of any additional security over the outstanding amount of the facility, no less than 130%. In addition, during the security period, the Sponsor, will be required to own, directly or indirectly, at least 30% of the outstanding voting interests of the Partnership (which shall include common and subordinated units of the Partnership) and 100% of the outstanding voting interests and limited liability company interests in the General Partner. Finally, the New Facility similarly restricts the Partnership from paying any distributions if an event of default occurs. |
$250.0 Million Senior Unsecured Notes due 2019 | |
Debt Instrument | |
Senior Notes, covenant terms | The Notes contain financial covenants that require the Partnership to: -maintain aggregate free liquidity, which includes the minimuliquidity held under the New $340 million Credit Suisse Senior Secured Revolving Credit Facility, of at least $20.0 million -the ratio of total borrowings to total assets expressed as a percentage shall not exceed 75% -maintain minimum net worth of no less than $250.0 million On terms similar with the New Facility, the Notes restrict the Partnership from declaring or making any distributions if an event of default occurs. |
Fair_Value_Measurements_and_Fi1
Fair Value Measurements and Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Due from related parties non current carrying value | $1,125 | $675 |
Due from related parties non current fair value - determined through level 3 inputs | 780 | |
$250.0 Million Senior Unsecured Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Senior notes carrying value | 250,000 | |
Senior notes fair value - determined through level 2 inputs | $236,300 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Charter Hire (Table) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Minimum Future Charter Revenues for the year ending | |
2015 | $145,611 |
2016 | 147,114 |
2017 | 115,821 |
2018 | 56,893 |
2019 | 24,273 |
Thereafter | 200,750 |
Total | $690,462 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Management Fees (Table) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Management Fees for the year ending | |
2015 | $4,840 |
2016 | 4,999 |
2017 | 5,135 |
2018 | 5,289 |
2019 | 5,448 |
Thereafter | 5,627 |
Total | $31,338 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure | ||
One off non-cash time charter amortization expense | $908,000 | |
Charter Hire Commission payable to the Management company | 1.25% | |
Commission payable over the minimum contractual charter revenues | 8,631,000 | |
Daily management fee | $2,600 | $2,500 |
Inflation rate adjustement to management fees | 3.00% |
Partners_Equity_Table_Details
Partner's Equity (Table) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Total Quarterly Distribution Target Amount | Minimum Quarterly Distribution | |
Minimum Partners' Capital, Distribution Amount Per Unit | $0.37 |
Total Quarterly Distribution Target Amount | First Target Distribution | |
Maximum Partners' Capital, Distribution Amount Per Unit | $0.42 |
Total Quarterly Distribution Target Amount | Second Target Distribution | |
Minimum Partners' Capital, Distribution Amount Per Unit | $0.42 |
Maximum Partners' Capital, Distribution Amount Per Unit | $0.46 |
Total Quarterly Distribution Target Amount | Third Target Distribution | |
Minimum Partners' Capital, Distribution Amount Per Unit | $0.46 |
Maximum Partners' Capital, Distribution Amount Per Unit | $0.55 |
Total Quarterly Distribution Target Amount | Thereafter | |
Minimum Partners' Capital, Distribution Amount Per Unit | $0.55 |
Limited Unitholders | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 99.90% |
Limited Unitholders | First Target Distribution | |
Percentage allocations of the additional available cash | 99.90% |
Limited Unitholders | Second Target Distribution | |
Percentage allocations of the additional available cash | 85.00% |
Limited Unitholders | Third Target Distribution | |
Percentage allocations of the additional available cash | 75.00% |
Limited Unitholders | Thereafter | |
Percentage allocations of the additional available cash | 50.00% |
General Partner | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | First Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Second Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Third Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Thereafter | |
Percentage allocations of the additional available cash | 0.10% |
Holders of IDRs | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 0.00% |
Holders of IDRs | First Target Distribution | |
Percentage allocations of the additional available cash | 0.00% |
Holders of IDRs | Second Target Distribution | |
Percentage allocations of the additional available cash | 14.90% |
Holders of IDRs | Third Target Distribution | |
Percentage allocations of the additional available cash | 24.90% |
Holders of IDRs | Thereafter | |
Percentage allocations of the additional available cash | 49.90% |
Partners_Equity_Details
Partner's Equity (Details) (USD $) | 1 Months Ended | 4 Months Ended | 7 Months Ended | 12 Months Ended | 6 Months Ended | 11 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Apr. 25, 2014 | Jul. 21, 2014 | Jul. 31, 2014 | Dec. 31, 2014 | Jan. 14, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 18, 2014 | Nov. 18, 2013 | Oct. 29, 2013 | Dec. 05, 2013 |
Related Party Transaction | ||||||||||||
Common unitholders - units issued | 20,505,000 | 14,985,000 | ||||||||||
Subordinated unitholders - units issued | 14,985,000 | 14,985,000 | ||||||||||
General Partner unitholders - units issued | 35,526 | 30,000 | ||||||||||
Distributions paid, Per unit | $0.17 | $0.37 | $0.37 | $0.39 | ||||||||
Total distributions paid to all classes of unitholders | $5,200 | $11,000 | $13,000 | $13,800 | $43,010 | $0 | $0 | |||||
Distributions per unit declared - record date | 10-Feb-14 | 5-May-14 | 5-Aug-14 | 5-Nov-14 | ||||||||
Distributions per unit declared - distribution date | 14-Feb-14 | 12-May-14 | 12-Aug-14 | 12-Nov-14 | ||||||||
Preferential deemed dividend | 88,122 | 0 | 0 | |||||||||
Quarterly increase in cash distribution per unit, paid to all unitholders | $0.03 | |||||||||||
Annual increase in cash distribution per unit paid to all unitholders | $0.10 | |||||||||||
Quarterly Distribution Made To Limited Partner Distributions Declared Per Unit | $0.42 | |||||||||||
Dynagas GP LLC | ||||||||||||
Related Party Transaction | ||||||||||||
General Partner unitholders - units issued | 5,526 | 30,000 | ||||||||||
General Partner Interest in Dynagas LNG Partners LP | 0.10% | |||||||||||
Dynagas LNG Partners LP | ||||||||||||
Related Party Transaction | ||||||||||||
Common unitholders - units offered | 5,520,000 | 8,250,000 | ||||||||||
Units issued price per unit | $18 | |||||||||||
Proceeds from Initial Public Offering | 148,500 | |||||||||||
Proceeds from issuance of common units, net of issuance costs | 136,900 | |||||||||||
Underwriting discounts and commissions | 4,700 | 8,900 | ||||||||||
Other offering costs | 600 | 2,700 | ||||||||||
Proceeds from issuance of common units, net of commissions and expenses | 120,500 | |||||||||||
Proceeds from issuance of general partners units | 126 | |||||||||||
Dynagas LNG Partners LP | Over-allotment | ||||||||||||
Related Party Transaction | ||||||||||||
Common unitholders - units offered | 720,000 | |||||||||||
Dynagas Holding Ltd | ||||||||||||
Related Party Transaction | ||||||||||||
Common unitholders - units issued | 6,735,000 | |||||||||||
Common unitholders - units offered | 4,250,000 | |||||||||||
Subordinated unitholders - units issued | 14,985,000 | |||||||||||
Dynagas Holding Ltd | Over-allotment | ||||||||||||
Related Party Transaction | ||||||||||||
Common unitholders - units offered | 1,875,000 | |||||||||||
Dynagas LNG Partners LP Initial Public Offering | ||||||||||||
Related Party Transaction | ||||||||||||
Other offering costs paid | 2,700 | |||||||||||
Dynagas LNG Partners LP Follow On Offering | ||||||||||||
Related Party Transaction | ||||||||||||
Other offering costs paid | $600 |
Earnings_per_Unit_Table_Detail
Earnings per Unit (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income attributable to common unitholders | $50,561 | $45,620 | $29,836 |
Common Unitholders | |||
Net income attributable to common unitholders | $28,323 | $22,787 | $9,239 |
Earnings per common unit, basic and diluted | $1.58 | $2.95 | $1.37 |
Weighted average number of common units outstanding, basic and diluted | 17,964,288 | 7,729,521 | 6,735,000 |
Interest_and_Finance_Costs_Tab1
Interest and Finance Costs (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finance Costs | |||
Interest expense (Note 5) | $13,338 | $8,248 | $8,551 |
Amortization and write-off of deferred financing fees | 785 | 1,050 | 590 |
Commitment fees (Note 5) | 360 | 327 | 372 |
Other | 41 | 107 | 63 |
Total | $14,524 | $9,732 | $9,576 |
Taxes_Details
Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure | |||
Tonnage taxes for the period | $245 | $96 | |
Potential income tax in absence of exemption | 15 | 0 | 0 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | 4 Months Ended | 7 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Apr. 25, 2014 | Jul. 21, 2014 | Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 14, 2015 |
Distributions paid, Per unit | $0.17 | $0.37 | $0.37 | $0.39 | ||||
Distribution Made To Limited Partner Cash Distributions Paid | $5,200 | $11,000 | $13,000 | $13,800 | $43,010 | $0 | $0 | |
Distribution Made To Limited And General Partner Distribution Date | 14-Feb-14 | 12-May-14 | 12-Aug-14 | 12-Nov-14 | ||||
Distribution Made To Limited And General Partner Date Record | 10-Feb-14 | 5-May-14 | 5-Aug-14 | 5-Nov-14 | ||||
Subsequent Event [Member] | ||||||||
Distributions paid, Per unit | $0.42 | |||||||
Distribution Made To Limited Partner Cash Distributions Paid | $15,000 | |||||||
Distribution Made To Limited And General Partner Distribution Date | 12-Feb-15 | |||||||
Distribution Made To Limited And General Partner Date Record | 5-Feb-15 |