Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Entity Registrant Name | Dynagas LNG Partners LP |
Entity Central Index Key | 0001578453 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Address Country | MH |
Entity Interactive Data Current | Yes |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Common Limited Partner | |
Document Information | |
Security 12b Title | Common units representing limited partnership interests |
Trading Symbol | DLNG |
Security Exchange Name | NYSE |
Entity's units outstanding | 35,612,580 |
Series A Preferred Stock | |
Document Information | |
Security 12b Title | 9.00% Series A Cumulative Redeemable Preffered Units |
Trading Symbol | DLNG PR A |
Security Exchange Name | NYSE |
Entity's units outstanding | 3,000,000 |
Series B Preferred Stock | |
Document Information | |
Security 12b Title | 8.75% Series B Fixed to Floating Rate Cumulative Redeembale Perpetual Preffered Units |
Trading Symbol | DLNG PR B |
Security Exchange Name | NYSE |
Entity's units outstanding | 2,200,000 |
General Partner | |
Document Information | |
Entity's units outstanding | 35,526 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 24,979 | $ 16,206 |
Trade accounts receivable | 384 | 143 |
Prepayments and other assets | 949 | 1,105 |
Inventories | 808 | 718 |
Total current assets | 27,120 | 18,172 |
FIXED ASSETS, NET: | ||
Vessels, net | 884,900 | 916,697 |
Total fixed assets, net | 884,900 | 916,697 |
OTHER NON-CURRENT ASSETS: | ||
Restricted cash | 50,000 | 50,000 |
Due from related party | 1,350 | 1,350 |
Accrued charter revenue | 371 | 745 |
Deferred charges | 2,096 | 2,223 |
Total assets | 965,837 | 989,187 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt, net of unamortized deferred financing fees of $2,285 and $2,518, respectively | 45,715 | 45,482 |
Trade payables | 4,373 | 5,496 |
Due to related party | 1,706 | 2,202 |
Accrued liabilities | 1,655 | 1,641 |
Derivative financial instrument, current portion | 1,332 | 0 |
Unearned revenue | 8,064 | 9,814 |
Total current liabilities | 62,845 | 64,635 |
NON-CURRENT LIABILITIES: | ||
Deferred revenue | 3,199 | 3,173 |
Long-term debt, net of current portion and unamortized deferred financing fees of $5,034 and $7,328, respectively | 561,966 | 607,672 |
Derivative financial instrument, non-current portion | 1,334 | 0 |
Total non-current liabilities | 566,499 | 610,845 |
Commitments and contingencies | 0 | 0 |
PARTNERS' EQUITY: | ||
Common unitholders (unlimited authorized; 35,612,580 units and 35,490,000 units issued and outstanding as at December 31, 2020 and 2019) | 209,784 | 187,021 |
General Partner (35,526 units issued and outstanding as at December 31, 2020 and 2019) | (5) | (28) |
Total partners' equity | 336,493 | 313,707 |
Total liabilities and partners' equity | 965,837 | 989,187 |
Series A Preferred Stock | ||
PARTNERS' EQUITY: | ||
Total partners' equity | 73,216 | 73,216 |
Preferred unitholders | 73,216 | 73,216 |
Series B Preferred Stock | ||
PARTNERS' EQUITY: | ||
Total partners' equity | 53,498 | 53,498 |
Preferred unitholders | $ 53,498 | $ 53,498 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred finance fees, current portion | $ 2,285 | $ 2,518 |
Deferred finance fees, non-current portion | $ 5,034 | $ 7,328 |
Common unitholders - units issued | 35,612,580 | 35,490,000 |
Common unitholders - units outstanding | 35,612,580 | 35,490,000 |
General Partner unitholders - units issued | 35,526 | 35,526 |
General Partner unitholders - units outstanding | 35,526 | 35,526 |
Series A Preferred Stock | ||
Units authorized | 3,450,000 | 3,450,000 |
Units issued | 3,000,000 | 3,000,000 |
Units outstanding | 3,000,000 | 3,000,000 |
Series B Preferred Stock | ||
Units authorized | 2,530,000 | 2,530,000 |
Units issued | 2,200,000 | 2,200,000 |
Units outstanding | 2,200,000 | 2,200,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUES: | |||
Voyage revenues | $ 137,165 | $ 130,901 | $ 127,135 |
EXPENSES: | |||
Voyage expenses | (1,275) | (1,078) | (1,148) |
Voyage expenses-related party | (1,719) | (1,631) | (1,654) |
Vessel operating expenses | (28,830) | (28,351) | (25,042) |
Dry-docking and special survey costs | 0 | 0 | (7,422) |
General and administrative expenses | (1,795) | (1,985) | (1,452) |
General and administrative expenses- related party | (733) | (723) | (757) |
Management fees-related party | (6,752) | (6,537) | (6,347) |
Depreciation | (31,797) | (30,680) | (30,330) |
Operating income | 64,264 | 59,916 | 52,983 |
OTHER INCOME/(EXPENSES): | |||
Interest and finance costs | (27,058) | (58,591) | (50,490) |
Interest income | 221 | 2,331 | 1,051 |
Loss on derivative financial instruments | (3,148) | 0 | 0 |
Other, net | (227) | (43) | 69 |
Total other expenses, net | (30,212) | (56,303) | (49,370) |
Partnership's Net Income | 34,052 | 3,613 | 3,613 |
Common unitholders' interest in Net Income | 22,466 | (7,942) | (4,042) |
Preferred unitholders' interest in Net Income | 11,563 | 11,563 | 7,659 |
Subordinated unitholders' interest in Net Income | 0 | 0 | 0 |
General Partner's interest in Net Income | $ 23 | $ (8) | $ (4) |
(Loss)/Earnings per unit, basic and diluted: | |||
Common unit (basic and diluted) | $ 0.63 | $ (0.22) | $ (0.11) |
Weighted average number of units outstanding, basic and diluted: | |||
Common units | 35,546,823 | 35,490,000 | 35,490,000 |
Series A Preferred | |||
OTHER INCOME/(EXPENSES): | |||
Partnership's Net Income | $ 6,750 | $ 6,750 | $ 6,750 |
Series B Preferred | |||
OTHER INCOME/(EXPENSES): | |||
Partnership's Net Income | 4,813 | 4,813 | 909 |
Preferred Partner | Series A Preferred | |||
OTHER INCOME/(EXPENSES): | |||
Preferred unitholders' interest in Net Income | 6,750 | 6,750 | 6,750 |
Preferred Partner | Series B Preferred | |||
OTHER INCOME/(EXPENSES): | |||
Preferred unitholders' interest in Net Income | $ 4,813 | $ 4,813 | $ 909 |
Consolidated Statements of Part
Consolidated Statements of Partners' Equity - USD ($) $ in Thousands | Total | Series A Preferred | Series B Preferred | Common | General Partner |
Balance at Dec. 31, 2017 | $ 318,318 | $ 73,216 | $ 0 | $ 245,055 | $ 47 |
Balance at Dec. 31, 2017 | 3,000,000 | 0 | 35,490,000 | 35,526 | |
-Net income | 3,613 | $ 6,750 | $ 909 | $ (4,042) | $ (4) |
-Issuance of units, net of issuance costs (Note 9), value | 52,976 | $ 52,976 | |||
-Issuance of units, net of issuance costs (Note 9), shares | 2,200,000 | ||||
-Distributions declared and paid (common and preferred units) (Note 9) | (48,422) | (6,750) | (41,613) | (59) | |
Balance at Dec. 31, 2018 | 326,485 | $ 73,216 | $ 53,885 | $ 199,400 | $ (16) |
Balance at Dec. 31, 2018 | 3,000,000 | 2,200,000 | 35,490,000 | 35,526 | |
-Net income | 3,613 | $ 6,750 | $ 4,813 | $ (7,942) | $ (8) |
-Distributions declared and paid (common and preferred units) (Note 9) | (16,391) | (6,750) | (5,200) | (4,437) | (4) |
Balance at Dec. 31, 2019 | 313,707 | $ 73,216 | $ 53,498 | $ 187,021 | $ (28) |
Balance at Dec. 31, 2019 | 3,000,000 | 2,200,000 | 35,490,000 | 35,526 | |
-Net income | 34,052 | $ 6,750 | $ 4,813 | $ 22,466 | $ 23 |
-Issuance of units, net of issuance costs (Note 9), value | 297 | $ 297 | |||
-Issuance of units, net of issuance costs (Note 9), shares | 122,580 | ||||
-Distributions declared and paid (common and preferred units) (Note 9) | (11,563) | (6,750) | (4,813) | ||
Balance at Dec. 31, 2020 | $ 336,493 | $ 73,216 | $ 53,498 | $ 209,784 | $ (5) |
Balance at Dec. 31, 2020 | 3,000,000 | 2,200,000 | 35,612,580 | 35,526 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from Operating Activities: | |||
Net income: | $ 34,052 | $ 3,613 | $ 3,613 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 31,797 | 30,680 | 30,330 |
Amortization and write-off of deferred financing fees | 2,527 | 10,696 | 3,261 |
Deferred revenue amortization | 400 | (377) | (45) |
Amortization of deferred charges | 217 | 181 | 68 |
Loss on derivative financial instruments | 3,148 | 0 | 0 |
Amortization of fair value of acquired time charter | 0 | 0 | 5,267 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (241) | (95) | 107 |
Prepayments and other assets | 156 | (413) | 389 |
Inventories | (90) | 502 | (421) |
Due from/to related parties | (496) | 2,982 | 31 |
Trade accounts payable | (1,033) | (101) | 1,149 |
Accrued liabilities | 6 | (2,565) | 155 |
Deferred charges | (90) | (1,000) | (1,472) |
Deferred revenue | 0 | 0 | 1,445 |
Unearned revenue | (1,750) | (926) | (883) |
Net cash provided by Operating Activities | 68,603 | 43,177 | 42,994 |
Cash flows from Investing Activities: | |||
Other additions to vessels' equipment | 0 | 0 | (409) |
Net cash used in Investing Activities | 0 | 0 | (409) |
Cash flows from Financing Activities: | |||
Net proceeds from issuance of common units | 297 | 0 | 0 |
Net proceeds from issuance of preferred units | 0 | 0 | 53,138 |
Payment of securities registration and other filing costs | (90) | (139) | (48) |
Distributions declared and paid | (11,563) | (16,391) | (48,422) |
Proceeds from long-term debt | 0 | 675,000 | 0 |
Repayment of long-term debt | (48,000) | (734,800) | (4,800) |
Payment of derivative instruments | (474) | 0 | 0 |
Payment of deferred finance fees | 0 | (10,558) | 0 |
Net cash used in Financing Activities | (59,830) | (86,888) | (132) |
Net increase/ (decrease) in cash and cash equivalents and restricted cash | 8,773 | (43,711) | 42,453 |
Cash and cash equivalents and restricted cash at beginning of the year | 66,206 | 109,917 | 67,464 |
Cash and cash equivalents and restricted cash at end of the year | 74,979 | 66,206 | 109,917 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash and cash equivalents | 24,979 | 16,206 | 109,917 |
Restricted cash | 50,000 | 50,000 | 0 |
Cash and cash equivalents and restricted cash at end of the year | 74,979 | 66,206 | 109,917 |
Cash paid during the year for: | |||
Interest | $ 24,440 | $ 48,879 | $ 47,033 |
Partnership Formation and Gener
Partnership Formation and General Information: | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements | |
Partnership Formation and General Information: | 1. Basis of Presentation and General Information: Dynagas LNG Partners LP (“Dynagas Partners” or the “Partnership”) was incorporated as a limited partnership on May 30, 2013, under the laws of the Republic of the Marshall Islands. On November 18, 2013, the Partnership successfully completed its initial public offering (the “IPO”), pursuant to which, the Partnership offered and sold 8,250,000 common units to the public at $18.00 per common unit, and in connection with the closing of the IPO, the Partnership’s Sponsor, Dynagas Holding Ltd., a company beneficially wholly owned by Mr. George Prokopiou, the Partnership’s Chairman and major unitholder and certain of his close family members, offered and sold 4,250,000 common units to the public at $18.00 per common unit. In connection with the IPO, the Partnership entered into certain agreements including: (i) an omnibus agreement with the Sponsor, as amended (Note 3(c)) , (the “Omnibus Agreement”) and, (ii) a $30 million interest free revolving credit facility with its Sponsor (the “$30 million Sponsor Facility”) (Note 3(b)), which was extended on November 14, 2018 until November 2023, to be used for general Partnership purposes. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (or COVID-19) as a pandemic. The COVID-19 pandemic and measures to contain its spread have negatively impacted regional and global economies and trade patterns in markets in which we operate, the way we operate our business, and the businesses of our charterers and suppliers The Partnership has experienced some logistical challenges across its fleet, however, as of December 31, 2020, the Partnership did not experience any material negative financial impacts to its results of operations or financial position as a result of COVID-19, As of December 31, 2020, the Partnership had a working capital deficit of $35.7 million as compared to the working capital deficit of $46.5 million as of December 31, 2019, which is mainly due to the current portion of its long-term debt. The Partnership believes that current sources of funds and those that the Partnership anticipates to internally generate for a period of at least the next twelve months, will be sufficient to fund the operations of its Fleet, and to meet the Partnership’s normal working capital requirements, service principal and interest debt, and make at least the required distribution on Series A Preferred Units and Series B Preferred Units in accordance with the Partnership’s Agreement. Accordingly, the Partnership continues to adopt the going concern basis in preparing its financial statements. The Partnership is engaged in the seaborne transportation industry through the ownership and operation of high specification LNG vessels and is the sole owner (directly or indirectly) of all outstanding shares or units of the following subsidiaries as of December 31, 2020: Vessel Owning Subsidiaries: Company Name Country of incorporation/ formation Vessel Name Delivery date from shipyard Delivery date to Partnership Cbm Capacity Pegasus Shipholding S.A. (“Pegasus”) Marshall Islands Clean Energy March 2007 October 2013 149,700 Lance Shipping S.A. (“Lance”) Marshall Islands Ob River July 2007 October 2013 149,700 Seacrown Maritime Ltd. (“Seacrown”) Marshall Islands Amur River January 2008 October 2013 149,700 Fareastern Shipping Limited (“Fareastern”) Malta Arctic Aurora July 2013 June 2014 155,000 Navajo Marine Limited (“Navajo”) Marshall Islands Yenisei River July 2013 September 2014 155,000 Solana Holding Ltd. (“Solana”) Marshall Islands Lena River October 2013 December 2015 155,000 Non-Vessel Owning Subsidiaries: Company Name Country of incorporation /formation Purpose of incorporation Dynagas Equity Holding Limited (“Dynagas Equity”) Marshall Islands Holding company that owns all of the outstanding share capital of Arctic LNG Carriers Ltd. (“Arctic LNG”). Dynagas Operating GP LLC (“Dynagas Operating GP”) Marshall Islands Limited Liability Company in which the Partnership holds a 100% membership interest and which has 100% of the Non-Economic General Partner Interest in Dynagas Operating LP. Dynagas Operating LP (“Dynagas Operating”) Marshall Islands Limited partnership in which the Partnership holds a 100% limited partnership interest and which owns 100% of the issued and outstanding share capital of Dynagas Equity. Dynagas Finance Inc. Marshall Islands Wholly owned subsidiary of the Partnership whose activities were limited to the co-issuance of the 2019 Notes discussed under Note 5 and engaging in other activities incidental thereto. Arctic LNG Marshall Islands Wholly owned subsidiary of the Partnership which is directly wholly owned by Dynagas Equity and which owns all of the issued and outstanding share capital of Pegasus, Lance, Seacrown, Fareastern, Navajo, Solana and Dynagas Finance LLC. Dynagas Finance LLC Delaware Wholly owned subsidiary of Arctic LNG and co-borrower of the Partnership’s Term Loan B discussed under Note 5. Since the Partnership’s inception, the technical, administrative and commercial management of the Partnership’s fleet is performed by Dynagas Ltd. (“Dynagas” or the “Manager”), a related company, wholly owned by the Partnership’s Chairman (Note 3(a)). As of December 31, 2020, the Partnership’s Sponsor owned 44.0% of the outstanding equity interests in the Partnership (excluding the Series A Preferred Units and the Series B Preferred Units, both of which, generally, have no voting rights), including the 0.1% general partner interest retained by it, as the General Partner, through Dynagas GP LLC, which is owned and controlled by the Sponsor. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements: | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Significant Accounting Policies and Recent Accounting Pronouncements: | 2. Significant Accounting Policies and Recent Accounting Pronouncements: (a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Dynagas Partners and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Dynagas Partners, as the holding company, determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Under Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 810 “Consolidation”, a voting interest entity is an entity in which the total equity investment at risk is deemed sufficient to absorb the expected losses of the entity, the equity holders have all the characteristics of a controlling financial interest and the legal entity is structured with substantive voting rights. The holding company consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%) of the voting interest. Variable interest entities (“VIE”) are entities, as defined under ASC 810, that in general either have equity investors with non-substantive voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its activities. The holding company has a controlling financial interest in a VIE and is, therefore, the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. A VIE should have only one primary beneficiary which is required to consolidate the VIE. A VIE may not have a primary beneficiary if no party meets the criteria described above. The Partnership evaluates all arrangements that may include a variable interest in an entity to determine if it is the primary beneficiary, and would therefore be required to include assets, liabilities and operations of a VIE in its consolidated financial statements. As of the years ended December 31, 2020, 2019 and 2018, no such interests existed. (b)Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (c)Other Comprehensive Income: The Partnership follows the provisions of ASC 220, “Comprehensive Income”, which requires separate presentation of certain transactions which are recorded directly as components of equity. The Partnership has no such transactions which affect other comprehensive income and accordingly, for the years ended December 31, 2020, 2019 and 2018, comprehensive income equaled 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, the Partnership primarily transacts business in U.S. Dollars. The Partnership’s books of accounts are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of such transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars using the balance sheet date exchange rates. Resulting gains or losses are included in “Other, net” in the accompanying consolidated statements of income. (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 may comprise of (i) minimum liquidity collateral requirements or minimum required cash deposits that are required to be maintained under the Partnership’s financing arrangements, (ii) cash deposits in so-called “retention accounts” which may only be used as per the Partnership’s borrowing arrangements for the purpose of serving the loan installments coming due or, (iii) other cash deposits required to be retained until other specified conditions prescribed in the Partnership’s debt agreements are met. In the event that the obligation to maintain such deposits is expected to elapse within the next operating cycle, these deposits are classified as current assets. Otherwise, they are classified as non-current assets. (g)Trade Accounts Receivable: The amount shown as trade accounts receivable at each balance sheet date, mainly includes receivables from charterers for hire from lease agreements, net of any provision for doubtful accounts, if any. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts primarily based on the aging of such balances and any amounts in dispute. Operating lease receivables under ASC 842 are not in scope of ASC 326 for assessment of credit loss. ASC 842 requires lessors to evaluate the collectability of all lease payments. If collection of all operating lease payments, plus any amount necessary to satisfy a residual value guarantee, is not probable (either at lease commencement or after the commencement date), lease income is constrained to the lesser of cash collected or lease income reflected on a straight-line or another systematic basis, plus variable rent when it becomes accruable. Provision for doubtful accounts as of December 31, 2020 and 2019, was nil. (h) Inventories: Inventories consist of lubricants which are stated at the lower of cost or net realizable value, following the adoption of ASU 2015-11, “Simplifying the Measurement of Inventory”. Cost is determined by the first in, first out method. Inventories may also consist of bunkers during periods when vessels are unemployed or under voyage charters and spares in warehouses, in which case, they are also stated at the lower of cost or net realizable value and cost is still determined by the first in, first out method. When evidence exists that the net realizable value of inventory is lower than its cost, the difference is recognized as a loss in earnings in the period in which it occurs. (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 when (i) the Partnership’s vessels suffer insured damages or at the time when crew medical expenses are incurred, (ii) recovery is probable under the related insurance policies, (iii) the Partnership can estimate the amount of such recovery following submission of the insurance claim and (iv) provided that the claim is not subject to litigation. The Partnership assessed the provisions of “ASC 326 Financial Instruments—Credit Losses” by assessing the counterparties’ credit worthiness and concluded that there is no material impact in the Partnership’s financial statements. (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, capitalized interest and on-site supervision costs incurred during the construction periods). Subsequent expenditures for conversions and major improvements are also capitalized when such expenditures appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. The cost of each of the Partnership’s vessels is depreciated beginning from the time when the vessel is ready for her intended use, on a straight-line basis, to the time that the vessel reaches the end of its economic useful life, after considering the estimated residual value of the vessel which is based on its lightweight tonnage times an estimated scrap rate. Following a reassessment of the scrap rates effective from October 1, 2019, the Partnership reduced the average scrap rate estimate from $0.685 per lightweight ton per LNG carrier to $0.500 per lightweight ton per LNG carrier. This change in accounting estimate which did not require retrospective adoption as per ASC 250 "Accounting Changes and Error Corrections," results in additional future annual depreciation of $1.4 million. For the fiscal years 2020 and 2019, the effect of the change in the estimate on net income was a decrease by $1.4 million and $0.3 million respectively and an increase in loss per share by $0.04 and $0.01 respectively. Management estimates that the useful life of each of the Partnership’s vessels to be 35 years from the date of initial delivery from the shipyard. Secondhand vessels are depreciated from the date of their acquisition through their remaining estimated useful life. When regulations place limitations on the ability of a vessel to trade on a worldwide basis, such vessel’s remaining useful life is adjusted as of the date such regulations are adopted. (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 held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When the estimate of undiscounted projected operating cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the asset is evaluated for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset. The Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances, such as business plans to dispose a vessel earlier than the end of its useful life and prevailing market conditions, indicate that the carrying amount of the assets may not be recoverable. When such indications are present, the Partnership determines undiscounted projected net operating cash flows for each vessel and compares the result to the vessel’s carrying value. The fair values of the assets are determined through Level 2 inputs of the fair value hierarchy as defined in ASC 820, “Fair value measurements and disclosures” based on management’s estimates, assumptions, use of available market data, use of third party valuations and other market observable data. In developing estimates of future cash flows, the Partnership must make assumptions about future charter rates, vessel operating expenses, fleet utilization and the estimated remaining useful life of the vessels. These assumptions are based on historical trends as well as future expectations. The projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed fleet days and by estimating charter rates for the unfixed days. Expected outflows for scheduled vessel maintenance and vessel operating expenses are based on the Partnership’s budget by using historical data, which is adjusted annually with the assumption of the average annual inflation rate prevailing at the time of the impairment test. In developing the estimate for the effective fleet utilization, the Partnership takes into account the period(s) each vessel is expected to undergo her scheduled maintenance (dry-docking and special surveys) and each vessel’s loss of hire resulting from repositioning or other conditions. In developing estimates for the remaining estimated useful lives of the current fleet and scrap values, the Partnership utilizes methods, which are identical to those employed as part of the Partnership’s depreciation policy. As and for each of the years ended December 31, 2020, 2019 and 2018, the Partnership incurred no impairment loss. (l)Intangible Assets/Liabilities Related to Time Charters Acquired: When and where the Partnership identifies any assets or liabilities associated with the acquisition of a vessel, the Partnership records all such identified assets or liabilities at fair value. Fair value is determined by reference to market data. In connection with the acquisition of a vessel, the Partnership determines the fair value of any asset or liability acquired based on the market value of the time charters assumed when a vessel is acquired. The amount to be recorded either as an asset or a liability on the date the vessel is acquired, is determined by comparing the charter rate in the existing time charter agreement of the acquired vessel with the market rates for equivalent time charter agreements prevailing at the time the vessel is acquired. When the present value of the time charter assumed is greater than the current fair value of such charter, the difference is recorded as an asset. When the present value of the existing time charter assumed is less than the current fair value of such charter, the difference is recorded as liability. Assets and liabilities are amortized as adjustments to revenues over the remaining term of the assumed time charter and are classified as non-current assets or liabilities, as applicable, in the accompanying consolidated balance sheets. Impairment testing is performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. (m)Accounting for Special Survey and Dry-Docking Costs: The Partnership follows the direct expense method of accounting for dry-docking and special survey costs, in which case, such costs are expensed in the period incurred. The vessels undergo dry-dock or special survey approximately every five years during the first fifteen years of their life and, subsequently, every two and a half years to the end of their useful life. Costs relating to routine repairs and maintenance are also expensed in the period they are incurred. (n)Financing Costs: In accordance with ASU 2015-03, “Interest – Imputation of Interest”, costs associated with long-term debt, including but not limited to, fees paid to lenders, fees required to be paid to third parties on the lender’s behalf in connection with debt financing or refinancing, or any unamortized portion thereof, are presented by the Partnership as a reduction of long-term debt. Such fees are deferred and amortized to interest and finance costs during the life of the related debt instrument using the effective interest method. Unamortized fees relating to loans repaid or refinanced as debt extinguishments and loan commitment fees are expensed as interest and finance costs in the period incurred in the accompanying consolidated statements of income. Any unamortized balance of costs relating to refinanced long-term debt is deferred and amortized over the term of the credit facility in the period that such refinancing occurs, subject to the provisions of the accounting guidance with respect to “Debt – Modifications and Extinguishments”. (o)Concentration of Credit Risk: Financial instruments, which may potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts receivable. The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership places its cash and cash equivalents, consisting mostly of deposits, with high credit qualified financial institutions. The Partnership performs periodic evaluations of the relative credit standing of those financial institutions. The Partnership limits its credit risk with trade accounts receivable by performing ongoing credit evaluations of each of its charterer’s financial condition and generally does not require collateral for its trade accounts receivable. The Partnership is exposed to credit risk in the event of non-performance by the counterparty to the derivative instrument; however, the Partnership limits its exposure by entering into transactions with counterparties with high credit ratings. During the years ended December 31, 2020, 2019 and 2018, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows: Charterer 2020 2019 2018 A 45 % 47 % 69 % B 39 % 31 % — % C 16 % 16 % 18 % Total 100 % 94 % 87 % (p)Accounting for Revenues and Related Expenses: The Partnership generates its revenues from charterers under time charter agreements, which contain a lease as they meet the criteria of a lease under ASC 842 or ASC 840 under transition accounting. In particular, under ASC 842, the Partnership elected certain practical expedients, which allowed the Partnership’s existing lease arrangements, in which it was a lessor, classified as operating leases under ASC 840 to continue to be classified as operating leases under ASC 842. Leases, which commenced on or after January 1, 2018, were classified as operating leases under ASC 842. The Partnership’s vessels are each employed under a time charter agreement, where a contract is entered into with a charterer for the charterer’s use of a vessel for a specific period of time and at a specified daily charter hire rate. If a time charter agreement exists and collection of the related revenue is reasonably assured, revenue is recognized, as it is earned ratably over the duration of the period of the time charter. Revenues from time chartering of vessels are accounted for as operating leases. The Partnership early adopted ASC 842 as of September 30, 2018, with adoption reflected as of January 1, 2018, the beginning of the annual period in accordance with ASC 250. The Partnership has determined that the non-lease components in its time charter contracts relate to services for the operation of the vessel, which include crew, technical, safety, commercial services, among others. The Partnership has elected to account for the lease and non-lease component of time charter agreements as a combined component in its consolidated financial statements, having taken into account that the non-lease components would be accounted for ratably on a straight-line basis over the duration of the time charter and that the lease component is considered as the predominant component. The Partnership qualitatively assessed that more value is ascribed to the vessel rather than to the services provided under the time charter agreements. Such revenues are recognized on a straight line basis at the average minimum lease revenue over the rental periods of such charter agreements, as service is performed. Revenue generated from variable lease payments is recognized in the period when changes in facts and circumstances on which the variable lease payments are based occur. The residual or excess amounts from actually collected hire based on the time charter agreement for each period, if any, is classified as deferred or prepaid revenue in the accompanying consolidated balance sheets. Unearned revenue includes cash received prior to the balance sheet date for which all criteria to recognize as revenue have not yet been met as at the balance sheet date and, accordingly, is related to revenue earned after such date. Apart from the agreed hire rate, the owner may be entitled to an additional income, such as ballast bonus, which is considered as reimbursement of owner’s expenses and is recognized together with the lease component over the duration of the charter. The Partnership has made an accounting policy election to recognize the related ballast costs, mainly consisting of bunkers, incurred over the period between the charter party date or the prior redelivery date (whichever is latest) and the delivery date to the charterer, as contract fulfilment costs in accordance with ASC 340-40 and amortized over the charter period. During the year ended December 31, 2020, the amortization of the contract fulfilment costs was $0.2 million. Voyage expenses, primarily consist of commissions, which are paid by the Partnership as well as port, canal and bunker expenses that are unique to a particular charter and which are paid by the charterer under the time charter arrangements or by the Partnership during periods of off-hire. All voyage expenses are expensed as incurred, except for commissions. Commissions paid to brokers are deferred and amortized over the related charter period to the extent revenue has been deferred since commissions are earned as the Partnership’s revenues are earned. (q) Repairs and Maintenance : All repair and maintenance expenses including underwater inspection costs are expensed in the period incurred. Such costs are included in vessel operating expenses in the accompanying consolidated statements of income. (r) Earnings/ (Loss) Per Unit : As of December 31, 2020, the Partnership’s capital structure consisted of common units, two separate classes of preferred units and a general partner interest. The incentive distribution rights are a separate class of non-voting interests that are currently held by the Partnership’s General Partner but, subject to certain restrictions, may be transferred or sold apart from the General Partner’s interest. The Partnership calculates basic earnings/ (loss) per each class of units by allocating period distributed and undistributed earnings/ (losses) to the General Partner, limited partners and incentive distribution rights holders using the two-class method and in accordance with the Partnership’s Fourth Amended and Restated Limited Partnership Agreement dated October 23, 2018 (the “Limited Partnership Agreement”) . Basic earnings/ (losses) per common unit are computed by allocating distributed and undistributed net income/ (losses) available to common unitholders, after subtracting the interest on the Partnership’s net income/ (loss) of all classes of preferred unitholders, and the General Partner by the weighted average number of common units outstanding during the year. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution specified in the Limited Partnership Agreement. Where distributions relating to the period are in excess of earnings, the surplus is also allocated according to the cash distribution model. Diluted earnings per common unit reflect the potential dilution that could occur if securities or other contracts to issue units were exercised, if any. The Partnership had no dilutive securities outstanding during the three-year period ended December 31, 2020. (s) Segment Reporting: The Partnership operates under one reportable segment relating to its operations as it operates solely LNG vessels. The Partnership reports financial information and evaluates its operations and operating results by the type of vessel and not by the length or type of vessel employment for its customers i.e. time charters. The Partnership’s management does not use discrete financial information to evaluate operating results for each type of charter. Although revenue can be identified by charter type, management cannot and does not identify expenses, profitability or other financial information in such a manner. When the Partnership charters a vessel to a charterer, the charterer is free to trade the vessel worldwide. As a result, the disclosure of geographic information is impracticable. (t)Fair Value Measurements: The Partnership follows ASC 820, “Fair Value Measurements and Disclosures”, which defines and provides guidance for the measurement of fair value. This guidance creates a fair value hierarchy of measurement and indicates that, when possible, fair value is the price that would be received in the sale of an asset or the price that would be paid in the transfer of a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable data that are not corroborated by market data (Level 3). For example, the reporting entity’s own data has a Level 3 priority because it is not or not yet observable or corroborated by market data. Observable market based inputs or unobservable inputs that are corroborated by market data are classified under Level 2 of the fair value hierarchy. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy. ASC 820 applies when assets or liabilities in the consolidated financial statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other accounting principles. (u) Commitments and Contingencies: Commitments are recognized when the Partnership has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will likely be required to satisfy such obligation and a reliable estimate of the amount of such obligation can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the present value of the expenditure expected to be required to settle the obligation. Contingent liabilities are not recognized in the consolidated financial statements but are disclosed unless there is a remote possibility of an outflow of resources embodying economic benefits. Contingent assets are not recognized in the consolidated financial statements but are disclosed when an inflow of economic benefits is probable (Note 8). (v) Accounting for Financial Instruments: The principal financial assets of the Partnership consist of cash and cash equivalents, restricted cash, amounts due from related parties and trade accounts receivable. The principal financial liabilities of the Partnership consist of trade and other accounts payable, accrued liabilities, long-term debt, amounts due to related parties and a derivative financial instrument (interest rate swap). The Partnership may also consider, from time to time, entering into interest rate swap agreements to manage its exposure to fluctuations of interest rate risk associated with its borrowings. Derivative financial instruments are generally used to manage risk related to fluctuations of interest rates. ASC 815, “Derivatives and Hedging”, requires all derivative contracts to be recorded at fair value, as determined in accordance with ASC 820, Fair Value Measurements and Disclosures (Note 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 Partnership formally designates and documents the hedge relationship with respect to hedge accounting, the risk management objective and the strategy undertaken for the hedge. The documentation includes identification of the hedging instrument, hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument’s effectiveness in offsetting exposure to changes in the hedged item’s cash flows attributable to the hedged risk. A cash flow hedge is the mitigation of risk exposure resulting from variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss. Such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are assessed on an ongoing basis to determine whether they actually have been highly effective throughout the financial reporting periods for which they were designated. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in “Accumulated Other Comprehensive Income/ (Loss)” and subsequently recognized in earnings when the hedged items impact earnings. (w) Derivative Financial Instruments: The Partnership entered into an interest rate swap contract to manage its exposure to fluctuations of interest rate risks associated with its loan facility. The interest rate swap did not meet the applicable criteria for hedge accounting under ASC 815, including the criteria specific to a cash flow hedge, therefore the interest rate swap represents an economic hedge. As a result, interest paid or received under the respective undesignated swap agreement is recognized in Loss on derivative financial instrument (Note 12). The undesignated interest rate swap is recognized in the consolidated financial statements at its fair value, and the gain or loss from changes in the fair value are reported in earnings in the period in which those fair value changes occur in Loss on derivative financial instrument and any related cash settlements are classified under financing activities in the statement of cash flows. (x) Going concern: The Partnership’s policy is in accordance with ASU No. 2014-15, "Presentation of Financial Statements - Going Concern", issued in August 2014 by the FASB. ASU 2014-15 provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about an entity’s ability to continue as a going concern and on related required footnote disclosures. For each reporting period, management is required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the consolidated financial statements are issued. New Accounting Pronouncements – Adopted On January 1, 2020, the Partnership adopted ASU No. 2016-13—Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments, which amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities, using the modified retrospective method. This new guidance is amended by: ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses”, which clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20 and should be accounted for in accordance with Topic 842, Leases; ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments”, the amendments of which clarify the modification of accounting for available for sale debt securities excluding applicable accrued interest, which must be individually assessed for credit losses when fair value is less than the amortized cost basis; ASU 2019-05, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments”, the amendments of which provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost, with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments—Overall, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. The adoption of this new accounting guidance did not have a material impact on the Partnership’s consolidated financial statements and related disclosures. On January 1, 2020, the Partnership adopted ASU 2018-13, “Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”, which improves the effectiveness of fair value measurement disclosures. In particular, the amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in FASB Concepts Statement, Concept |
Transactions with related parti
Transactions with related parties: | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction, Due from (to) Related Party | |
Transactions with related parties: | 3. Transactions with related parties: During the years ended December 31, 2020, 2019 and 2018, the Partnership incurred the following charges in connection with related party transactions, which are included in the accompanying consolidated statements of income: Years ended December 31, 2020 2019 2018 Included in voyage expenses – related party Charter hire commissions (a) $ 1,719 $ 1,631 $ 1,654 Included in general and administrative expenses – related party Executive services fee (d) $ 613 $ 603 $ 637 Administrative services fee (e) $ 120 $ 120 $ 120 Management fees-related party Management fees (a) $ 6,752 $ 6,537 $ 6,347 As of December 31, 2020 and December 2019, balances with related parties consisted of the following: Year ended December 31, 2020 2019 Assets: Security deposits to Manager (a) $ 1,350 $ 1,350 Total assets due from related party, non-current $ 1,350 $ 1,350 Liabilities included in Due to related party: Working capital due to Manager (a) $ 1,032 $ 1,198 Executive service charges due to Manager (d) $ 159 $ 148 Administrative service charges due to Manager (e) $ 30 $ 30 Management fees due to Manager (a) $ - $ 701 Other Partnership expenses due to Manager $ 485 $ 125 Total liabilities due to related party, current $ 1,706 $ 2,202 a) Dynagas Ltd. The Partnership’s vessels have entered into vessel management agreements with Dynagas Ltd., the Partnership’s Manager (the “Management Agreements”). Pursuant to the terms of these Management Agreements, the Manager provides each vessel-owning entity of the Partnership with management services, including, but not limited to, commercial, technical, crew, accounting and vessel administrative services in exchange for an initial fixed daily management fee of $2.5 per vessel, for a period beginning upon the vessel’s delivery until the termination of the Management Agreement. The Management Agreements initially terminate on December 31, 2020 and are thereafter, automatically extended in additional eight-year increments if notice of termination is not previously provided by the Partnership’s vessel-owning subsidiaries. Beginning on the first calendar year after the commencement of each vessel’s Management Agreement and each calendar year thereafter, these fees are adjusted upwards by 3% until expiration of each Management Agreement, subject to further annual increases to reflect material unforeseen costs of providing the management services. The amount of such increase is to be agreed between the Partnership and the Manager, which amount will be reviewed and approved by the Partnership’s Conflicts Committee. Under the terms of the Management Agreements, the Manager charges the Partnership for any additional capital expenditures, financial costs, operating expenses and general and administrative expenses that are not covered by the management fees. During the years ended December 31, 2020, 2019 and 2018, each vessel was charged a daily management fee of $3.1, $3.0 and $2.9, respectively. During the years ended December 31, 2020, 2019 and 2018, management fees under the vessel Management Agreements amounted to $6,752, $6,537 and $6,347 respectively, and are separately reflected in the accompanying consolidated statements of income. The Management Agreements also provide for: a commission of 1.25% over charter-hire agreements arranged by the Manager; and a lump sum new-building supervision fee of $700 for the services rendered by the Manager in respect of the construction of the vessel, if applicable, plus out of pocket expenses. During the years ended December 31, 2020, 2019 and 2018, charter hire commissions under the Management Agreements amounted to $1,719, $1,631 and $1,654, respectively, and are included in Voyage expenses-related party in the accompanying consolidated statements of income. 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, 2020 and 2019, amounted to $1,350, and are separately reflected in Non-Current Assets as Due from related party in the accompanying consolidated balance sheets. In addition, the Manager makes payments for operating expenses with funds provided by the Partnership. As of December 31, 2020, an amount of $1,032 was due to the Manager in relation to these operating expenses and as of December 31, 2019, an amount of $1,198, was due to the Manager in relation to these operating expenses. On March 3, 2021, the Partnership entered into a new master management agreement (the “Master”) with Dynagas Ltd. (the “Manager”), which amends and supersedes the previous commercial, technical, crew, accounting and vessel administrative services agreement and reduces the technical management fees payable from $3,167 per day per vessel to $2,750 per day per vessel commencing on January 1, 2021 (Note 14). The Master Agreement initially terminates on December 31, 2030 and upon expiration, automatically extends in additional five-year increments if notice of termination is not previously provided by the Partnership's vessel-owning subsidiaries. In the event of termination of the Master Agreement for any reason other than default by the Manager, the agreed management fee shall continue to be payable for a further period of six months as from the effective date of termination. (b) Loan from related party On November 18, 2013, upon the completion of its IPO, the Partnership entered into the $30 million Sponsor Facility with an original term of five years from the closing date, to be used for general Partnership purposes, including working capital. The $30 million Sponsor Facility was extended on November 14, 2018, for an additional term of five years on terms and conditions identical to the initial credit facility (the “$30 million Extended Sponsor Facility”). The $30 million Extended Sponsor Facility may be drawn and be prepaid in whole or in part at any time during the life of the facility which is until November 2023. No amounts have been drawn under the respective facility as of December 31, 2020 and 2019. (c) Optional Vessel acquisitions from Sponsor/ Omnibus Agreement At the IPO date, the Partnership and its Sponsor entered into the Omnibus Agreement, as amended and as currently in effect. The amended Omnibus Agreement sets out (i) the terms and the extent the Partnership and the Sponsor may compete with each other, (ii) the procedures to be followed for the exercise of the Partnership’s option to acquire the Initial Optional Vessels (as defined in the Omnibus Agreement), as well as the Partnership’s option to acquire the Sponsor’s ownership interest (which is currently 49.0% as of December 31, 2020) in each of five joint venture entities, each of which owns a 172,000 cubic meter ARC 7 LNG carrier which were all delivered between December 2017 and February 2019,, (iii) certain rights of first offer to the Sponsor for the acquisition of LNG carriers from the Partnership, and (iv) the Sponsor’s provisions of certain indemnities in favor of the Partnership. The purchase option periods with regards to the Initial Optional Vessels that were not exercised, expired in December 2018. The Partnership’s option periods with regards to the Sponsor’s interests in in all five joint venture entities described above also expired unexercised. (d) Executive Services Agreement On March 21, 2014, the Partnership entered into an executive services agreement (the “Executive Services Agreement”) with its Manager with retroactive effect from the IPO closing date, pursuant to which the Manager provides the Partnership the certain services of its executive officers, who report directly to the Board of Directors. Under the Executive Services Agreement, the Manager is entitled to an executive services fee of €538 per annum (or $613 on the basis of a Euro/US Dollar exchange rate of €1.0000/$1.1401 as of December 31, 2020), payable in equal monthly installments. The Executive Services Agreement had an initial term of five years and, on November 18, 2018, was automatically renewed for successive five year terms, unless terminated earlier. During the years ended December 31, 2020, 2019 and 2018, executive service fees amounted to $613, $603 and $637, respectively, and are included in general and administrative expenses in the accompanying consolidated statements of income. (e) Administrative Services Agreement On December 30, 2014 and with effect from the IPO closing date, the Partnership entered into an administrative services agreement (the “Administrative Services Agreement”) with its Manager, according to which the Partnership is provided with certain financial, accounting, reporting, secretarial and information technology services, for a monthly fee of $10, plus expenses, payable in quarterly installments. The Administrative Services Agreement can be terminated upon 120 days’ notice granted either by the Partnership’s Board of Directors or by Dynagas. During the years ended December 31, 2020, 2019 and 2018, administrative service fees amounted to $120 for each year and are included in general and administrative expenses – related party in the accompanying consolidated statements of income. |
Vessels, net_
Vessels, net: | 12 Months Ended |
Dec. 31, 2020 | |
Vessels, Net | |
Vessels, net: | 4. Vessels, net: The amounts in the accompanying consolidated balance sheets are analyzed as follows: Vessel Cost Accumulated Depreciation Net Book Value Balance December 31, 2018 $ 1,167,909 $ (220,532) $ 947,377 Depreciation — (30,680) (30,680) Balance December 31, 2019 $ 1,167,909 $ (251,212) $ 916,697 Depreciation — (31,797) (31,797) Balance December 31, 2020 $ 1,167,909 $ (283,009) $ 884,900 As of December 31, 2020, all vessels comprising the Partnership’s fleet were first priority mortgaged as collateral to secure the $675 Million Credit Facility, further discussed in Note 5. |
Long-Term Debt_
Long-Term Debt: | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure | |
Long-Term Debt: | 5. Long-Term Debt: The amounts shown in the accompanying consolidated balance sheets are analyzed as follows: Year Ended December 31, Debt instruments Borrowers-Issuers 2020 2019 $675 Million Credit Facility Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd. 615,000 663,000 Total debt $ 615,000 $ 663,000 Less deferred financing fees (7,319) (9,846) Total debt, net of deferred finance costs $ 607,681 $ 653,154 Less current portion, net of deferred financing fees $ (45,715) $ (45,482) Long-term debt, net of current portion and deferred financing fees $ 561,966 $ 607,672 $675 Million Senior Secured Term Loan Facility ($675 Million Credit Facility) On September 18, 2019, Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited and Solana Holding Ltd., wholly owned by the Partnership, as co-borrowers, entered into a syndicated $675.0 million senior secured term loan, the $675 Million Credit Facility, with leading international banks. On September 25, 2019, the amount of $675.0 million was drawn under the $675 Million Credit Facility and the Partnership repaid in full the indebtedness outstanding under the $480 Million Senior Secured Term Loan Facility of $470.4 million; and on October 30, 2019, the remaining amount of $204.6 million plus cash on hand was used to repay the $250 Million Senior Unsecured Notes due 2019. The $675 Million Credit Facility bears interest at U.S. LIBOR (in case LIBOR is less than zero, LIBOR shall be deemed to be zero) plus 3.00% margin and is secured by, among other things, first priority mortgages on the six LNG vessels in the Partnership's fleet. The $675 Million Credit Facility is repayable over five years in 20 consecutive quarterly payments plus a balloon payment in the fifth year . The $675 Million Credit Facility contains financial covenants that require the Partnership to: meet a specified minimum ratio of Cash and Cash Equivalents to Total Liabilities; meet a specified maximum ratio of Total Liabilities to the Market Value Adjusted Total Assets; and maintain a minimum liquidity of $50.0 million in a restricted Cash Collateral Account. The $675 Million Credit Facility restricts the Partnership from declaring or making any distributions to its common unit-holders while borrowings are outstanding. Scheduled distributions to the preferred unit-holders under the existing Series A Preferred Units and Series B Preferred Units are not restricted provided there is no event of default while the $675 Million Credit Facility remains outstanding. As of December 31, 2020, the Partnership was in compliance with all financial covenants prescribed in its $675 Million Credit Facility . The annual principal payments for the Partnership’s outstanding $675 Million Credit Facility as at December 31, 2020, required to be made after the balance sheet date were as follows: Year ending December 31, Amount 2021 $ 48,000 2022 48,000 2023 48,000 2024 471,000 Total long-term debt $ 615,000 $480 Million Senior Secured Term Loan Facility (Term Loan B) On May 18, 2017, Arctic LNG and Dynagas Finance LLC, wholly owned subsidiaries of the Partnership, as co-borrowers, entered into a $480.0 million senior secured term loan. The Term Loan B bore interest at LIBOR plus a margin and provided for a 0.25% quarterly amortization on the principal and a bullet payment at maturity in May 2023. On September 25, 2019, the then outstanding principal of $470.4 million of the Term Loan B was fully repaid from the proceeds of the Partnership’s new syndicated $675.0 million senior secured term loan facility. $250 Million Senior Unsecured Notes due 2019 (2019 Notes) On September 15, 2014, the Partnership completed the public offering of the 2019 Notes with the purpose of funding the majority of the purchase price related to the Yenisei River acquisition. The 2019 Notes bore 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. The 2019 Notes were fully repaid at their maturity on October 30, 2019, using cash on hand as well as a portion of the new $675 Million Credit Facility. The weighted average interest rate on the Partnership’s long-term debt for the years ended December 31, 2020, 2019 and 2018, was 3.7%, 5.4% and 6.4%, respectively. Total interest incurred on long-term debt for the years ended December 31, 2020, 2019 and 2018, amounted to $24,146, $46,638 and $46,884, respectively, and is included in Interest and finance costs (Note 11) in the accompanying consolidated statements of income. Commitment fees incurred for the years ended December 31, 2020, 2019 and 2018, amounted to nil, $791 and nil, respectively. Such fees are included in Interest and finance costs (Note 11) in the accompanying consolidated statements of income. |
Fair Value Measurements_
Fair Value Measurements: | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements: | 6. Fair Value Measurements: The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Cash and cash equivalents, trade accounts receivable, amounts due from/to related parties and trade accounts payable: The carrying values reported in the accompanying consolidated balance sheets for those financial instruments (except for the fair value of non-current portion of amounts due from related party) are considered Level 1 items as they represent liquid assets and liabilities with short-term maturities and are reasonable estimates of their fair values. The carrying value of these instruments is separately reflected in the accompanying consolidated balance sheets. The fair value of the non-current portion of the amounts due from related parties, determined through Level 3 inputs of the fair value hierarchy by discounting future cash flows using the Partnership’s estimated co s t of capital, is $892 as of December 31, 2020, compared to its carrying value of $1,350 as of the same date. Long-term debt: The $675 Million Credit Facility discussed in Note 5, has an approximate recorded value due to the variable interest rate payable and is thus considered a Level 2 item in accordance with the fair value hierarchy as LIBOR rates are observable at commonly quoted intervals for the full terms of the loans. Derivative financial instrument : The carrying values reported in the accompanying consolidated balance sheets for the swap transaction are determined through Level 2 of the fair value hierarchy and are derived principally from interest rates, yield curves and other items that allow value to be determined. A fair value hierarchy that prioritizes the inputs used to measure fair value has been established by Generally Accepted Accounting Principles. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data; and Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the determination of the fair value of the assets or liabilities. The following table summarizes the hierarchy for determining and disclosing the fair value of assets and liabilities by valuation technique on a recurring basis as of the valuation date. Significant Other Observable Inputs (Level 2) Recurring measurements: December 31, 2020 Interest rate swaps (2,666) Total (2,666) |
Time charters acquired_
Time charters acquired: | 12 Months Ended |
Dec. 31, 2020 | |
Amortization of above-market acquired time charter contract to revenues | |
Time charters acquired: | 7. Time charters acquired: In December 2015, the Partnership acquired from its Sponsor, the Lena River, which was one of the Initial Optional Vessels (Note 3(c)). In connection with the Lena River acquisition, the Partnership paid an aggregate consideration of $240.0 million consisting of (i) the purchase price of the vessel and, (ii) the fair value of the favorable time charter contract attached to the vessel. As a result, the Partnership recognized an intangible asset of $20.0 million, which represented the fair value of the time charter acquired, at the time of acquisition. During the years ended December 31, 2020, 2019 and 2018, the amortization of the above market acquired time charter related to the acquisition of the Lena River amounted to nil, nil and $5,267 respectively, and is included in Voyage revenues in the accompanying consolidated statements of income. The respective intangible asset was fully amortized to revenues in the third quarter of 2018, in accordance with the expiration of the respective charter contract. |
Commitments and Contingencies_
Commitments and Contingencies: | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies: | 8. Commitments and Contingencies: (a) Long-term leases: The Partnership employs its vessels under time charter contracts. Certain of its time charters provide for variable lease payments, escalating lease payments, charterers’ options to extend the lease terms, termination clauses and charterers’ options to purchase the underlying assets. The Partnership, in order to calculate future minimum contracted lease payments, has assessed all the relevant factors that create an economic incentive for the lessee to be reasonably certain to exercise lease renewal, termination or purchase options. Two of the Partnership’s time charters contain escalating lease payments and two of its time charters contain both fixed lease and variable lease payments. The variable lease payments relate to services and executory costs (the “Opex Lease Element”). The Opex Lease Element is determined on a cost pass through basis on the vessel’s actual operating expenses for each applicable year. Under time charters, the vessels are employed for a specific period of time in accordance with the terms of each agreement. Normally, the charterer has the option to redeliver the vessel to the owner in a period that varies a few days more or less from the contractual termination date. For certain of its time charters, the Partnership has provided to its charterers, the option to extend the lease term for additional periods under the same or different terms. The options are exercised close to the original termination dates. Specifically, under one of the Partnership’s time charters, the charterer has options to extend a three year contract, by two consecutive 12 month periods, at escalating rates and, under two of its time charters, the charterer has the option to extend the original lease term by three consecutive periods of five years, the first declared at the original termination date and each of the two remaining at or close to the termination of each option period. Certain time charters are subject to the satisfaction of important conditions, which, if not satisfied, or waived by the charterer, may result in their cancellation or amendment and in such case the Partnership may not receive the contracted revenues thereunder. The Partnership assessed the respective termination clauses and concluded that the lease term is not affected. In addition, under certain time charters and, upon certain circumstances triggering a sanctions event, as defined therein, the charterers have the option to purchase the vessels unless the Partnership can remediate such event. The Partnership’s maturity analysis of future minimum contracted lease payments (excluding variable lease payments) under its non-cancelable long-term time charter contracts, as of December 31, 2020, gross of brokerage commissions, without taking into consideration any assumed off-hire days (including those arising out of periodical class survey requirements), is as analyzed below: Year ending December 31, Amount 2021 114,794 2022 103,824 2023 103,824 2024 103,935 2025 103,478 2026 and thereafter 447,063 Total $ 976,918 (b) Legal Proceedings: Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Partnership’s vessels. Currently, management is not aware of any such claims not covered by insurance or contingent liabilities which should be disclosed (other than that referred below) or for which a provision should be established in the accompanying consolidated financial statements. The Partnership accrues for the cost of environmental liabilities when management becomes aware that a liability is probable and is then able to reasonably estimate the probable exposure. Currently, management is not aware of any such claims or contingent liabilities, which should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements. The Partnership is covered in the event of any liabilities associated with the individual vessels’ actions up to the maximum limits as provided for by the Protection and Indemnity (P&I) Clubs, members of the International Group of P&I Clubs. On May 16, 2019, a purported stockholder of the Partnership filed a putative class action lawsuit against the Partnership and certain related entities and individual officers and directors of the Partnership in the United States District Court for the Southern District of New York (Case No.19- cv-04512). The complaint purports to be brought on behalf of shareholders who purchased the common stock of the Partnership between February 16, 2018 and March 21, 2019. The Complaint generally alleges that the defendants violated Sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making allegedly false and/or misleading statements regarding, among other matters, new charter agreements that the Partnership entered into with various energy companies and the Partnership’s expectations about its ability to sustain its quarterly distribution. The complaint seeks unspecified damages, attorneys’ fees, and other costs. On August 19, 2019, the Court appointed a group of shareholders as Lead Plaintiffs in the action, who filed an amended complaint on September 26, 2019. The amended complaint makes allegations similar to those in the original complaint, extends the class period (December 21, 2017 through March 21, 2019), adds as defendants three additional directors of the Partnership and the underwriters of the Partnership’s Series B Preferred Units Offering, and asserts new claims under Section 20A of the Securities Exchange Act of 1934 on behalf of plaintiffs who acquired Partnership securities or sold put options contemporaneously with the Series B Preferred Units Offering, and under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 based on allegedly false and/or misleading statements in the offering documents for the Series B Preferred Units Offering. The Partnership, related entity defendants, and underwriter defendants filed a motion to dismiss the amended complaint on December 5, 2019, which is now fully briefed, but has not yet been decided by the Court. Subsequent to December 31, 2020, the parties reached an agreement in principle to settle the litigation. The settlement is subject to documentation and court approval. The settlement will be covered in full by the Partnership´s directors’ and officers’ insurance. The Partnership, related entity defendants, and individual defendants continue to believe that the claims asserted against them in the litigation are without merit, have not conceded or admitted any wrongdoing or liability, and are not conceding any wrongdoing or liability in agreeing to settle the litigation. (c) Technical and Commercial Management Agreement: As further disclosed in Note 3, the Partnership has contracted with Dynagas Ltd. for the provision of commercial, administrative and technical management of its vessels pursuant to certain Management Agreements. For the commercial services provided under the Management Agreements, the Partnership pays a commission of 1.25% over the charter-hire revenues arranged by the Manager, which will survive the termination of the agreement until the termination of each charter party in force at such time. The estimated commission payable to the Manager over the minimum contractual charter revenues, discussed under (a) above, is $12,211. For vessel administrative and technical management fees, the Partnership paid during the year ended December 31, 2020, a daily management fee of $3.1 per vessel (Note 3(a)). On March 3, 2021, the Partnership entered into a new master management agreement (the “Master”) with Dynagas Ltd. (the “Manager”), which amends and supersedes the previous commercial, technical, crew, accounting and vessel administrative services management agreement (Note 14). Management fees for the period from January 1, 2021 to the date of the expiration of the agreements on December 31, 2030, adjusted for the 3% annual inflation in accordance with the terms of the Management Agreements , are estimated to amount to $69,080. |
Partners' Equity_
Partners' Equity: | 12 Months Ended |
Dec. 31, 2020 | |
Partners' Equity | |
Partners' Equity: | 9. Partners’ Equity: Series A Preferred Units: On July 20, 2015, the Partnership concluded an underwritten public offering of 3,000,000 9% Series A Preferred Units, representing limited partner interests in the Partnership, at a liquidation preference of $25.00 per unit. The Partnership received $72.3 million of proceeds from this offering, net of the $2.4 million underwriting discount of and incurred offering expenses of $0.3 million. Series B Preferred Units: On October 23, 2018, the Partnership concluded the underwritten public offering of 2,200,000 Series B Preferred Units, representing limited partner interests in the Partnership, at a liquidation preference of $25.00 per unit. The Partnership received net proceeds of $53.0 million from this offering, after deducting underwriters’ discounts and commissions and offering expenses, which amounted to $2.0 million. Concurrently with the conclusion of the Series B Preferred Units Public Offering, the Partnership entered into the Limited Partnership Agreement in order to, among others, conform its provisions to the terms and provisions related to the issuance of the Series B Preferred Units and to remove references to subordinated units and subordinated period that are no longer in effect. As of December 31, 2020, the Partnership had 35,612,580 common units, 15,595,000 of which are owned by the Sponsor, 3,000,000 Series A Preferred Units, 2,200,000 Series B Preferred Units and 35,526 general partner units issued and outstanding. Common and General Partner unit distribution provisions: The Partnership pays distributions in the following manner: • first , 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until the distributed amount in respect of each common unit equals the minimum quarterly distribution; and • second , 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until each unit has received an aggregate distribution of a specified dollar amount. The percentage allocations of available cash from operating surplus among the common unitholders, the General Partner and the holders of the incentive distribution rights up to the various target distribution levels are illustrated below. The percentage interests shown for the common unitholders, the General Partner and the holders of the incentive distribution rights for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests shown for our General Partner include its 0.1% General Partner interest only and assumes that our General Partner has contributed any capital necessary to maintain its 0.1% General Partner interest. Under the Limited Partnership Agreement, the holder of the incentive distribution rights in the Partnership, which is currently the General Partner, has the right to receive an increasing percentage of cash distributions after the first target distribution level. Total Quarterly Distribution Target Amount Unitholders General Partner Holders of IDRs Minimum Quarterly Distribution $0.365 99.9 % 0.1 % 0.0 % First Target Distribution up to $0.420 99.9 % 0.1 % 0.0 % Second Target Distribution above $0.420 up to $0.456 85.0 % 0.1 % 14.9 % Third Target Distribution Above $0.456 up to $0.548 75.0 % 0.1 % 24.9 % Thereafter above $0.548 50.0 % 0.1 % 49.9 % On April 18, 2018, the Partnership announced a reduction in cash distribution to $0.25 per unit to all common unit holders from $0.4225 per common unit in prior quarters, which was approved by the Partnership’s Board of Directors on April 12, 2018 and was paid on May 3, 2018, to all common unitholders of record as of April 26, 2018. On January 25, 2019, the Partnership announced a reduction in cash distribution to $0.0625 per unit to all common unitholders from $0.25 per common unit in prior quarters, which was paid on February 14, 2019, to all common unitholders of record as of February 7, 2019. On September 26, 2019 the Partnership announced that pursuant to the closing of the $675 Million Credit Facility (Note 5), the Partnership is prohibited from paying distribution to its common unit-holders while borrowings are outstanding under the $675 Million Credit Facility. As the quarterly distributions with respect to fiscal year 2019 were below $0.365 per common unit, the actual cash distributions and the allocation of net income for the purposes of the earnings per common unit calculation were based on the limited partners’ and General Partner’s ownership percentage applying to the minimum quarterly distribution level, as per the above presented distribution waterfall. Preferred Units distribution and redemption provisions: Distributions on the Series A Preferred Units are cumulative from the date of original issue and are payable quarterly on February 12, May 12, August 12 and November 12, of each year, when, as and if declared by the Partnership’s Board of Directors out of amounts legally available for such purpose. Distributions are payable at a distribution rate of 9.00% per annum of the stated liquidation preference. Any time on or after August 12, 2020, the Series A Preferred Units may be redeemed, in whole or in part, at the Partnership’s option, out of amounts legally available for such purpose, at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. No Series A Preferred Units were redeemed as of December 31, 2020. Distributions on the Series B Preferred Units are cumulative from the date of original issue and are payable quarterly on February 22, May 22, August 22 and November 22, of each year, when, as and if declared by the Partnership’s Board of Directors out of amounts legally available for such purpose. Furthermore, distributions on the Series B Preferred Units are payable (i) from and including the original issue date to, but excluding, November 22, 2023 at a fixed rate equal to 8.75% per annum of the stated liquidation preference per unit and (ii) from and including November 22, 2023 at a floating rate equal to three-month LIBOR plus a spread of 5.593% per annum of the stated liquidation preference per unit. At any time on or after November 22, 2023, the Series B Preferred Units may be redeemed, in whole or in part, at the Partnership’s option, out of amounts available for such purpose, at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. The Series A Preferred Units and the Series B Preferred Units represent perpetual equity interests in the Partnership, unlike the Partnership’s indebtedness, do not give rise to a claim for payment of a principal amount at a particular date. The Series A Preferred Units rank pari passu with the Series B Preferred Units. Both the Series A Preferred Units and the Senior B Preferred Units rank senior to the Partnership’s common units and to each other class or series of limited partner interests or other equity established after the original issue date of the Series A Preferred Units and the Series B Preferred Units that is not expressly made senior to or on a parity with the Series A Preferred Units and the Series B Preferred Units as to payment of distributions. The Series A Preferred Units and the Series B Preferred Units are rank junior to all of the Partnership’s existing and future indebtedness. The interests of the holders of Series A Preferred Units or Series B Preferred Units could be diluted by the issuance of additional preferred units, including additional Series A Preferred units or Series B Preferred Units, and by other transactions. Common unit distributions: As mentioned above, on January 25, 2019, the Partnership announced a reduction of its quarterly cash distribution to $0.0625 per common unit, for the fourth quarter of 2018, from $0.25 per common unit in prior quarters, which was paid on February 14, 2019, to all common unitholders of record as of February 7, 2019. On April 24, 2019, the Partnership announced a quarterly cash distribution, for the first quarter of 2019 of $0.0625 per common unit, or $2.2 million which, on May 10, 2019, was paid to all unit holders of record as of May 3, 2019. No quarterly cash distributions to Common unitholders were made with respect to fiscal year 2020. Series A Preferred unit distributions: On January 20, 2020, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from November 12, 2019 to February 11, 2020. The cash distribution was paid on February 12, 2020, to all Series A preferred unitholders of record as of February 5, 2020. On April 21, 2020, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from February 12, 2020 to May 11, 2020. The cash distribution was paid on May 12, 2020, to all Series A preferred unitholders of record as of May 5, 2020. On July 21, 2020, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from May 12, 2020 to August 11, 2020. The cash distribution was paid on August 12, 2020, to all Series A preferred unitholders of record as of August 5, 2020. On October 19, 2020, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from August 12, 2020 to November 11, 2020. The cash distribution was paid on November 12, 2020, to all Series A preferred unitholders of record as of November 5, 2020. Series B Preferred unit distributions: On January 30, 2020, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from November 22, 2019 to February 21, 2020. The cash distribution was paid on February 24, 2020, to all Series B preferred unitholders of record as of February 14, 2020. On April 27, 2020, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from February 22, 2020 to May 21, 2020. The cash distribution was paid on May 22, 2020, to all Series B preferred unitholders of record as of May 15, 2020. On July 27, 2020, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from May 22, 2020 to August 21, 2020. The cash distribution was paid on August 24, 2020, to all Series B preferred unitholders of record as of August 17, 2020. On October 27, 2020, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from August 22, 2020 to November 21, 2020. The cash distribution was paid on November 23, 2020, to all Series B preferred unitholders of record as of November 16, 2020. General Partner Distributions: During the years ended December 31, 2020, 2019 and 2018, the Partnership paid to its General Partner and holder of the incentive distribution rights in the Partnership an amount of nil, $4 and $59, respectively. At the market” equity program : On July 2, 2020, the Partnership entered into an ATM Sales Agreement (the “Original Agreement”) for the offer and sale of common units representing limited partnership interests, having an aggregate offering price of up to $30.0 million. On August 19, 2020, the Partnership terminated the above mentioned ATM Sales Agreement and entered into an amended and restated ATM Sales Agreement (the “A&R Sales Agreement”), for the offer and sale of common units representing limited partnership interests, having an aggregate offering price of up to $30.0 million. During the year ended December 31, 2020 the Partnership issued and sold 122,580 common units resulting in net proceeds of $0.3 million under the Original ATM sales agreement. No common units were sold under the A&R Sales Agreement during the year ended December 31, 2020. |
(Loss)_ Earnings per Unit_
(Loss)/ Earnings per Unit: | 12 Months Ended |
Dec. 31, 2020 | |
(Loss)/ Earnings per Unit | |
(Loss)/ Earnings per Unit: | 10. (Loss)/ Earnings per Unit: The Partnership calculates earnings/ (loss) per unit by allocating distributed and undistributed net income/ (losses) for each period to common and general partner units, after adjusting for the effect of preferred distributions, only to the extent that they are earned. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution specified in the Limited Partnership Agreement, as generally described in Note 9 above. Where distributions relating to the period are in excess of earnings, the deficit is also allocated according to the cash distribution model. The sum of the distributed amounts and the allocation of the undistributed earnings or deficit to each class of unitholders is divided by the weighted average number of units outstanding during the period. Diluted earnings per unit, if applicable, reflects the potential dilution that could occur if potentially dilutive instruments were exercised, resulting in the issuance of additional units that would then share in the Partnership’s net earnings. The Partnership had no dilutive instruments in the years ended December 31, 2020, 2019 and 2018. The calculations of the basic and diluted earnings per common unit are presented below: Year ended December 31, 2020 2019 2018 Partnership’s Net income $ 34,052 $ 3,613 $ 3,613 Less: Net Income attributable to preferred unitholders 11,563 11,563 7,659 General Partner’s interest in Net Income 23 (8) (4) Net income/(loss) attributable to common unitholders $ 22,466 $ (7,942) $ (4,042) Weighted average number of common units outstanding, basic and diluted 35,546,823 35,490,000 35,490,000 Earnings/ (Losses) per common unit, basic and diluted $ 0.63 $ (0.22) $ (0.11) |
Interest and Finance Costs_
Interest and Finance Costs: | 12 Months Ended |
Dec. 31, 2020 | |
Interest and Finance Costs | |
Interest and Finance Costs: | 11. Interest and Finance Costs: The amounts in the accompanying consolidated statements of income are analyzed as follows: Year ended December 31, 2020 2019 2018 Interest expense (Note 5) $ 24,146 $ 46,638 $ 46,884 Amortization of deferred financing fees 2,527 3,199 3,261 Write-off of deferred financing fees — 7,497 — Commitment fees (Note 5) — 791 — Other 385 466 345 Total $ 27,058 $ 58,591 $ 50,490 |
Derivative financial instrument
Derivative financial instrument: | 12 Months Ended |
Dec. 31, 2020 | |
Derivative financial instrument | |
Derivative financial instrument: | 12. Derivative financial instrument: On May 7, 2020, the Partnership entered into a floating to fixed interest rate swap transaction with a leading international bank, for the purpose of managing its exposure to LIBOR variability that the Partnership has under the $675 Million Credit Facility. The swap transaction, which is effective from June 29, 2020, provides for a fixed 3-month LIBOR rate of 0.41% based on notional values that reflect the amortization schedule of 100% of the Partnership’s debt outstanding under its $675 Million Credit Facility, until the $675 Million Credit Facility matures in September 2024. The swap agreement did not meet hedge accounting criteria and, therefore, changes in its fair value are reflected in earnings. As of December 31, 2020, the outstanding notional amount of Partnership’s interest rate swap was $615.0 million. The fair value of this interest rate swap outstanding at December 31, 2020 amounted to a liability of $2,666 (Note 6) and is included in Derivative financial instrument in accompanying consolidated balance sheet as presented in the table below. The Partnership had no derivative financial instruments as of December 31, 2019. As of December 31, 2020, the Partnership recognized a loss on derivative financial instrument of $3.1 million, which is included in Loss on derivative financial instrument in the accompanying consolidated statements of income as presented in the table below. The realized loss on non-hedging interest rate swaps included in “Loss on derivative financial instruments, net” amounted to $0.5 million for the year ended December 31, 2020. Tabular Disclosure of Derivatives Location Derivatives are recorded in the balance sheet on a net basis by counterparty when a legal right of setoff exists. The following tables present information with respect to the fair values of the derivative instrument reflected in the balance sheet on a gross basis by transaction. The tables also present information with respect to losses on derivative positions reflected in the Statement of Comprehensive Income. Derivative Instruments not designated as hedging instruments – Balance Sheet Location 2020 Derivative Balance Sheet Location Assets Liabilities Interest rate swap Derivative financial Instruments, Current — 1,332 Interest rate swap Derivative financial Instruments, non- Current — 1,334 Total — 2,666 Derivatives Instruments not designated as Hedging Instruments – Net effect on the Consolidated Statements of Comprehensive Income Net Realized and Unrealized Loss Recognized on Statement of Comprehensive Income Location Derivative Amount 2020 Interest rate swap Loss on derivative instruments 3,148 Total 3,148 |
Taxes_
Taxes: | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure | |
Taxes: | 13. Taxes: Under the laws of the countries of the Partnership and its subsidiaries’ incorporation and / or vessels’ registration, the Partnership and its subsidiaries are not subject to tax on international shipping income; however, they are subject to registration and tonnage taxes, which are included in Vessel operating expenses in the accompanying consolidated statements of income. In addition, effective January 1, 2013, each foreign flagged vessel managed in Greece by Greek or foreign ship management companies is subject to Greek tonnage tax, under the laws of the Hellenic Republic. The technical manager of the Partnership’s vessels, Dynagas Ltd., an affiliate (Note 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 of the Partnership. These tonnage taxes for the years ended December 31, 2020, 2019 and 2018, amounted $344, $332 and $548, respectively and are included in Vessel operating expenses in the accompanying consolidated statements of income. Pursuant to the Internal Revenue Code of the United States (the “Code”), U.S. source income from the international operations of ships is generally exempt from U.S. tax if the Partnership operating the ships meets both of the following requirements: (a) the Partnership is organized in a foreign country that grants an equivalent exception to corporations organized in the United States and exempts the type of income earned by the vessel owning Partnership and (b) either (i) more than 50% of the value of the Partnership’s stock is owned, directly or indirectly, by individuals who are “residents” of the Partnership’s country of organization or of another foreign country that grants an “equivalent exemption” to corporations organized in the United States (50% Ownership Test) or (ii) the Partnership’s stock is “primarily and regularly traded on an established securities market” in its country of organization, in another country that grants an “equivalent exemption” to United States corporations, or in the United States (Publicly-Traded Test). Additionally, the Partnership must meet all of the documentation requirements as outlined in the regulations. The Partnership and each of its subsidiaries expects to qualify for this statutory tax exemption for the 2020, 2019 and 2018 taxable years, and the Partnership takes this position for United States federal income tax return reporting purposes. In the absence of an exemption under Section 883, based on its U.S. source shipping income, for 2020, 2019 and 2018, the Partnership would be subject to U.S. federal income tax of approximately $65, $29 and nil, respectively. |
Subsequent Events_
Subsequent Events: | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events: | 14. Subsequent Events: Quarterly Series A Preferred unit cash distribution: On January 21, 2021, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from November 12, 2020 to February 11, 2021. The cash distribution was paid on February 12, 2021, to all Series A preferred unitholders of record as of February 5, 2021. Quarterly Series B Preferred unit cash distribution: On January 28, 2021, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from November 22, 2020 to February 21, 2021. The cash distribution was paid on February 22, 2021, to all Series B preferred unitholders of record as of February 15, 2021. “At the market” equity program : Following December 31, 2020, the Partnership sold $3.5 million of common units at an average price per unit of $2.9153 pursuant to the A&R Sales Agreement (as defined above), which has $26.5 million of remaining availability for future repurchases. New master management agreement (the “Master”) with Dynagas Ltd.: On March 3, 2021, the Partnership entered into a new master management agreement (the “Master”) with Dynagas Ltd. (the “Manager”), which includes a new standard set of terms for commercial, technical, crew, accounting and vessel administrative services (“Standard Management Terms”) for the Partnership’s six vessels effective as from January 1, 2021. This agreement amends, restates and supersedes the previous technical and commercial management agreements and reduces the technical management fees payable from $3,167 per day per vessel to $2,750 per day per vessel commencing on January 1, 2021. Quarterly Series A Preferred unit cash distribution : On April 20, 2021, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from February 12, 2021 to May 11, 2021. The cash distribution will be paid on May 12, 2021, to all Series A preferred unitholders of record as of May 5, 2021. Quarterly Series B Preferred unit cash distribution: On April 27, 2021, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from February 22, 2021 to May 21, 2021. The cash distribution will be paid on May 24, 2021, to all Series B preferred unitholders of record as of May 17, 2021. Legal Proceedings : In relation to the class action lawsuit filed against the Partnership in April 2019 (Note 8 (b)), the parties reached an agreement in principle to settle the litigation in April 2021. The settlement is subject to documentation and court approval and will be covered in full by the Partnership´s directors’ and officers’ insurance. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Principles of Consolidation: | (a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Dynagas Partners and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Dynagas Partners, as the holding company, determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Under Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 810 “Consolidation”, a voting interest entity is an entity in which the total equity investment at risk is deemed sufficient to absorb the expected losses of the entity, the equity holders have all the characteristics of a controlling financial interest and the legal entity is structured with substantive voting rights. The holding company consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%) of the voting interest. Variable interest entities (“VIE”) are entities, as defined under ASC 810, that in general either have equity investors with non-substantive voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its activities. The holding company has a controlling financial interest in a VIE and is, therefore, the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. A VIE should have only one primary beneficiary which is required to consolidate the VIE. A VIE may not have a primary beneficiary if no party meets the criteria described above. The Partnership evaluates all arrangements that may include a variable interest in an entity to determine if it is the primary beneficiary, and would therefore be required to include assets, liabilities and operations of a VIE in its consolidated financial statements. As of the years ended December 31, 2020, 2019 and 2018, no such interests existed. |
Use Of Estimates: | (b)Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Other Comprehensive Income: | (c)Other Comprehensive Income: The Partnership follows the provisions of ASC 220, “Comprehensive Income”, which requires separate presentation of certain transactions which are recorded directly as components of equity. The Partnership has no such transactions which affect other comprehensive income and accordingly, for the years ended December 31, 2020, 2019 and 2018, comprehensive income equaled 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, the Partnership primarily transacts business in U.S. Dollars. The Partnership’s books of accounts are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of such transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars using the balance sheet date exchange rates. Resulting gains or losses are included in “Other, net” in the accompanying consolidated statements of income. |
Cash and Cash Equivalents: | (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 may comprise of (i) minimum liquidity collateral requirements or minimum required cash deposits that are required to be maintained under the Partnership’s financing arrangements, (ii) cash deposits in so-called “retention accounts” which may only be used as per the Partnership’s borrowing arrangements for the purpose of serving the loan installments coming due or, (iii) other cash deposits required to be retained until other specified conditions prescribed in the Partnership’s debt agreements are met. In the event that the obligation to maintain such deposits is expected to elapse within the next operating cycle, these deposits are classified as current assets. Otherwise, they are classified as non-current assets. |
Trade Accounts Receivable: | (g)Trade Accounts Receivable: The amount shown as trade accounts receivable at each balance sheet date, mainly includes receivables from charterers for hire from lease agreements, net of any provision for doubtful accounts, if any. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts primarily based on the aging of such balances and any amounts in dispute. Operating lease receivables under ASC 842 are not in scope of ASC 326 for assessment of credit loss. ASC 842 requires lessors to evaluate the collectability of all lease payments. If collection of all operating lease payments, plus any amount necessary to satisfy a residual value guarantee, is not probable (either at lease commencement or after the commencement date), lease income is constrained to the lesser of cash collected or lease income reflected on a straight-line or another systematic basis, plus variable rent when it becomes accruable. Provision for doubtful accounts as of December 31, 2020 and 2019, was nil. |
Inventories: | (h) Inventories: Inventories consist of lubricants which are stated at the lower of cost or net realizable value, following the adoption of ASU 2015-11, “Simplifying the Measurement of Inventory”. Cost is determined by the first in, first out method. Inventories may also consist of bunkers during periods when vessels are unemployed or under voyage charters and spares in warehouses, in which case, they are also stated at the lower of cost or net realizable value and cost is still determined by the first in, first out method. When evidence exists that the net realizable value of inventory is lower than its cost, the difference is recognized as a loss in earnings in the period in which it occurs. |
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 when (i) the Partnership’s vessels suffer insured damages or at the time when crew medical expenses are incurred, (ii) recovery is probable under the related insurance policies, (iii) the Partnership can estimate the amount of such recovery following submission of the insurance claim and (iv) provided that the claim is not subject to litigation. The Partnership assessed the provisions of “ASC 326 Financial Instruments—Credit Losses” by assessing the counterparties’ credit worthiness and concluded that there is no material impact in the Partnership’s financial statements. |
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, capitalized interest and on-site supervision costs incurred during the construction periods). Subsequent expenditures for conversions and major improvements are also capitalized when such expenditures appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. The cost of each of the Partnership’s vessels is depreciated beginning from the time when the vessel is ready for her intended use, on a straight-line basis, to the time that the vessel reaches the end of its economic useful life, after considering the estimated residual value of the vessel which is based on its lightweight tonnage times an estimated scrap rate. Following a reassessment of the scrap rates effective from October 1, 2019, the Partnership reduced the average scrap rate estimate from $0.685 per lightweight ton per LNG carrier to $0.500 per lightweight ton per LNG carrier. This change in accounting estimate which did not require retrospective adoption as per ASC 250 "Accounting Changes and Error Corrections," results in additional future annual depreciation of $1.4 million. For the fiscal years 2020 and 2019, the effect of the change in the estimate on net income was a decrease by $1.4 million and $0.3 million respectively and an increase in loss per share by $0.04 and $0.01 respectively. Management estimates that the useful life of each of the Partnership’s vessels to be 35 years from the date of initial delivery from the shipyard. Secondhand vessels are depreciated from the date of their acquisition through their remaining estimated useful life. When regulations place limitations on the ability of a vessel to trade on a worldwide basis, such vessel’s remaining useful life is adjusted as of the date such regulations are adopted. |
Impairment of Long-Lived Assets: | (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 held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When the estimate of undiscounted projected operating cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the asset is evaluated for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset. The Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances, such as business plans to dispose a vessel earlier than the end of its useful life and prevailing market conditions, indicate that the carrying amount of the assets may not be recoverable. When such indications are present, the Partnership determines undiscounted projected net operating cash flows for each vessel and compares the result to the vessel’s carrying value. The fair values of the assets are determined through Level 2 inputs of the fair value hierarchy as defined in ASC 820, “Fair value measurements and disclosures” based on management’s estimates, assumptions, use of available market data, use of third party valuations and other market observable data. In developing estimates of future cash flows, the Partnership must make assumptions about future charter rates, vessel operating expenses, fleet utilization and the estimated remaining useful life of the vessels. These assumptions are based on historical trends as well as future expectations. The projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed fleet days and by estimating charter rates for the unfixed days. Expected outflows for scheduled vessel maintenance and vessel operating expenses are based on the Partnership’s budget by using historical data, which is adjusted annually with the assumption of the average annual inflation rate prevailing at the time of the impairment test. In developing the estimate for the effective fleet utilization, the Partnership takes into account the period(s) each vessel is expected to undergo her scheduled maintenance (dry-docking and special surveys) and each vessel’s loss of hire resulting from repositioning or other conditions. In developing estimates for the remaining estimated useful lives of the current fleet and scrap values, the Partnership utilizes methods, which are identical to those employed as part of the Partnership’s depreciation policy. As and for each of the years ended December 31, 2020, 2019 and 2018, the Partnership incurred no impairment loss. |
Intangible Assets/Liabilities Related to Time Charters Acquired: | (l)Intangible Assets/Liabilities Related to Time Charters Acquired: When and where the Partnership identifies any assets or liabilities associated with the acquisition of a vessel, the Partnership records all such identified assets or liabilities at fair value. Fair value is determined by reference to market data. In connection with the acquisition of a vessel, the Partnership determines the fair value of any asset or liability acquired based on the market value of the time charters assumed when a vessel is acquired. The amount to be recorded either as an asset or a liability on the date the vessel is acquired, is determined by comparing the charter rate in the existing time charter agreement of the acquired vessel with the market rates for equivalent time charter agreements prevailing at the time the vessel is acquired. When the present value of the time charter assumed is greater than the current fair value of such charter, the difference is recorded as an asset. When the present value of the existing time charter assumed is less than the current fair value of such charter, the difference is recorded as liability. Assets and liabilities are amortized as adjustments to revenues over the remaining term of the assumed time charter and are classified as non-current assets or liabilities, as applicable, in the accompanying consolidated balance sheets. Impairment testing is performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. |
Accounting for Special Survey and Dry-Docking Costs: | (m)Accounting for Special Survey and Dry-Docking Costs: The Partnership follows the direct expense method of accounting for dry-docking and special survey costs, in which case, such costs are expensed in the period incurred. The vessels undergo dry-dock or special survey approximately every five years during the first fifteen years of their life and, subsequently, every two and a half years to the end of their useful life. Costs relating to routine repairs and maintenance are also expensed in the period they are incurred. |
Financing Costs: | (n)Financing Costs: In accordance with ASU 2015-03, “Interest – Imputation of Interest”, costs associated with long-term debt, including but not limited to, fees paid to lenders, fees required to be paid to third parties on the lender’s behalf in connection with debt financing or refinancing, or any unamortized portion thereof, are presented by the Partnership as a reduction of long-term debt. Such fees are deferred and amortized to interest and finance costs during the life of the related debt instrument using the effective interest method. Unamortized fees relating to loans repaid or refinanced as debt extinguishments and loan commitment fees are expensed as interest and finance costs in the period incurred in the accompanying consolidated statements of income. Any unamortized balance of costs relating to refinanced long-term debt is deferred and amortized over the term of the credit facility in the period that such refinancing occurs, subject to the provisions of the accounting guidance with respect to “Debt – Modifications and Extinguishments”. |
Concentration of Credit Risk: | (o)Concentration of Credit Risk: Financial instruments, which may potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts receivable. The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership places its cash and cash equivalents, consisting mostly of deposits, with high credit qualified financial institutions. The Partnership performs periodic evaluations of the relative credit standing of those financial institutions. The Partnership limits its credit risk with trade accounts receivable by performing ongoing credit evaluations of each of its charterer’s financial condition and generally does not require collateral for its trade accounts receivable. The Partnership is exposed to credit risk in the event of non-performance by the counterparty to the derivative instrument; however, the Partnership limits its exposure by entering into transactions with counterparties with high credit ratings. During the years ended December 31, 2020, 2019 and 2018, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows: Charterer 2020 2019 2018 A 45 % 47 % 69 % B 39 % 31 % — % C 16 % 16 % 18 % Total 100 % 94 % 87 % |
Accounting for Revenues and Related Expenses: | (p)Accounting for Revenues and Related Expenses: The Partnership generates its revenues from charterers under time charter agreements, which contain a lease as they meet the criteria of a lease under ASC 842 or ASC 840 under transition accounting. In particular, under ASC 842, the Partnership elected certain practical expedients, which allowed the Partnership’s existing lease arrangements, in which it was a lessor, classified as operating leases under ASC 840 to continue to be classified as operating leases under ASC 842. Leases, which commenced on or after January 1, 2018, were classified as operating leases under ASC 842. The Partnership’s vessels are each employed under a time charter agreement, where a contract is entered into with a charterer for the charterer’s use of a vessel for a specific period of time and at a specified daily charter hire rate. If a time charter agreement exists and collection of the related revenue is reasonably assured, revenue is recognized, as it is earned ratably over the duration of the period of the time charter. Revenues from time chartering of vessels are accounted for as operating leases. The Partnership early adopted ASC 842 as of September 30, 2018, with adoption reflected as of January 1, 2018, the beginning of the annual period in accordance with ASC 250. The Partnership has determined that the non-lease components in its time charter contracts relate to services for the operation of the vessel, which include crew, technical, safety, commercial services, among others. The Partnership has elected to account for the lease and non-lease component of time charter agreements as a combined component in its consolidated financial statements, having taken into account that the non-lease components would be accounted for ratably on a straight-line basis over the duration of the time charter and that the lease component is considered as the predominant component. The Partnership qualitatively assessed that more value is ascribed to the vessel rather than to the services provided under the time charter agreements. Such revenues are recognized on a straight line basis at the average minimum lease revenue over the rental periods of such charter agreements, as service is performed. Revenue generated from variable lease payments is recognized in the period when changes in facts and circumstances on which the variable lease payments are based occur. The residual or excess amounts from actually collected hire based on the time charter agreement for each period, if any, is classified as deferred or prepaid revenue in the accompanying consolidated balance sheets. Unearned revenue includes cash received prior to the balance sheet date for which all criteria to recognize as revenue have not yet been met as at the balance sheet date and, accordingly, is related to revenue earned after such date. Apart from the agreed hire rate, the owner may be entitled to an additional income, such as ballast bonus, which is considered as reimbursement of owner’s expenses and is recognized together with the lease component over the duration of the charter. The Partnership has made an accounting policy election to recognize the related ballast costs, mainly consisting of bunkers, incurred over the period between the charter party date or the prior redelivery date (whichever is latest) and the delivery date to the charterer, as contract fulfilment costs in accordance with ASC 340-40 and amortized over the charter period. During the year ended December 31, 2020, the amortization of the contract fulfilment costs was $0.2 million. Voyage expenses, primarily consist of commissions, which are paid by the Partnership as well as port, canal and bunker expenses that are unique to a particular charter and which are paid by the charterer under the time charter arrangements or by the Partnership during periods of off-hire. All voyage expenses are expensed as incurred, except for commissions. Commissions paid to brokers are deferred and amortized over the related charter period to the extent revenue has been deferred since commissions are earned as the Partnership’s revenues are earned. |
Repairs and Maintenance: | (q) Repairs and Maintenance : All repair and maintenance expenses including underwater inspection costs are expensed in the period incurred. Such costs are included in vessel operating expenses in the accompanying consolidated statements of income. |
Earnings/ (Loss) Per Unit: | (r) Earnings/ (Loss) Per Unit : As of December 31, 2020, the Partnership’s capital structure consisted of common units, two separate classes of preferred units and a general partner interest. The incentive distribution rights are a separate class of non-voting interests that are currently held by the Partnership’s General Partner but, subject to certain restrictions, may be transferred or sold apart from the General Partner’s interest. The Partnership calculates basic earnings/ (loss) per each class of units by allocating period distributed and undistributed earnings/ (losses) to the General Partner, limited partners and incentive distribution rights holders using the two-class method and in accordance with the Partnership’s Fourth Amended and Restated Limited Partnership Agreement dated October 23, 2018 (the “Limited Partnership Agreement”) . Basic earnings/ (losses) per common unit are computed by allocating distributed and undistributed net income/ (losses) available to common unitholders, after subtracting the interest on the Partnership’s net income/ (loss) of all classes of preferred unitholders, and the General Partner by the weighted average number of common units outstanding during the year. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution specified in the Limited Partnership Agreement. Where distributions relating to the period are in excess of earnings, the surplus is also allocated according to the cash distribution model. Diluted earnings per common unit reflect the potential dilution that could occur if securities or other contracts to issue units were exercised, if any. The Partnership had no dilutive securities outstanding during the three-year period ended December 31, 2020. |
Segment Reporting: | (s) Segment Reporting: The Partnership operates under one reportable segment relating to its operations as it operates solely LNG vessels. The Partnership reports financial information and evaluates its operations and operating results by the type of vessel and not by the length or type of vessel employment for its customers i.e. time charters. The Partnership’s management does not use discrete financial information to evaluate operating results for each type of charter. Although revenue can be identified by charter type, management cannot and does not identify expenses, profitability or other financial information in such a manner. When the Partnership charters a vessel to a charterer, the charterer is free to trade the vessel worldwide. As a result, the disclosure of geographic information is impracticable. |
Fair Value Measurements: | (t)Fair Value Measurements: The Partnership follows ASC 820, “Fair Value Measurements and Disclosures”, which defines and provides guidance for the measurement of fair value. This guidance creates a fair value hierarchy of measurement and indicates that, when possible, fair value is the price that would be received in the sale of an asset or the price that would be paid in the transfer of a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable data that are not corroborated by market data (Level 3). For example, the reporting entity’s own data has a Level 3 priority because it is not or not yet observable or corroborated by market data. Observable market based inputs or unobservable inputs that are corroborated by market data are classified under Level 2 of the fair value hierarchy. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy. ASC 820 applies when assets or liabilities in the consolidated financial statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other accounting principles. |
Commitments and Contingencies: | (u) Commitments and Contingencies: Commitments are recognized when the Partnership has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will likely be required to satisfy such obligation and a reliable estimate of the amount of such obligation can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the present value of the expenditure expected to be required to settle the obligation. Contingent liabilities are not recognized in the consolidated financial statements but are disclosed unless there is a remote possibility of an outflow of resources embodying economic benefits. Contingent assets are not recognized in the consolidated financial statements but are disclosed when an inflow of economic benefits is probable (Note 8). |
Accounting for Financial Instruments: | (v) Accounting for Financial Instruments: The principal financial assets of the Partnership consist of cash and cash equivalents, restricted cash, amounts due from related parties and trade accounts receivable. The principal financial liabilities of the Partnership consist of trade and other accounts payable, accrued liabilities, long-term debt, amounts due to related parties and a derivative financial instrument (interest rate swap). The Partnership may also consider, from time to time, entering into interest rate swap agreements to manage its exposure to fluctuations of interest rate risk associated with its borrowings. Derivative financial instruments are generally used to manage risk related to fluctuations of interest rates. ASC 815, “Derivatives and Hedging”, requires all derivative contracts to be recorded at fair value, as determined in accordance with ASC 820, Fair Value Measurements and Disclosures (Note 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 Partnership formally designates and documents the hedge relationship with respect to hedge accounting, the risk management objective and the strategy undertaken for the hedge. The documentation includes identification of the hedging instrument, hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument’s effectiveness in offsetting exposure to changes in the hedged item’s cash flows attributable to the hedged risk. A cash flow hedge is the mitigation of risk exposure resulting from variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss. Such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are assessed on an ongoing basis to determine whether they actually have been highly effective throughout the financial reporting periods for which they were designated. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in “Accumulated Other Comprehensive Income/ (Loss)” and subsequently recognized in earnings when the hedged items impact earnings. |
Derivative Financial Instruments: | (w) Derivative Financial Instruments: The Partnership entered into an interest rate swap contract to manage its exposure to fluctuations of interest rate risks associated with its loan facility. The interest rate swap did not meet the applicable criteria for hedge accounting under ASC 815, including the criteria specific to a cash flow hedge, therefore the interest rate swap represents an economic hedge. As a result, interest paid or received under the respective undesignated swap agreement is recognized in Loss on derivative financial instrument (Note 12). The undesignated interest rate swap is recognized in the consolidated financial statements at its fair value, and the gain or loss from changes in the fair value are reported in earnings in the period in which those fair value changes occur in Loss on derivative financial instrument and any related cash settlements are classified under financing activities in the statement of cash flows. |
Going concern: | (x) Going concern: The Partnership’s policy is in accordance with ASU No. 2014-15, "Presentation of Financial Statements - Going Concern", issued in August 2014 by the FASB. ASU 2014-15 provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about an entity’s ability to continue as a going concern and on related required footnote disclosures. For each reporting period, management is required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the consolidated financial statements are issued. |
Recent Accounting Pronouncements Adopted | New Accounting Pronouncements – Adopted On January 1, 2020, the Partnership adopted ASU No. 2016-13—Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments, which amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities, using the modified retrospective method. This new guidance is amended by: ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses”, which clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20 and should be accounted for in accordance with Topic 842, Leases; ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments”, the amendments of which clarify the modification of accounting for available for sale debt securities excluding applicable accrued interest, which must be individually assessed for credit losses when fair value is less than the amortized cost basis; ASU 2019-05, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments”, the amendments of which provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost, with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments—Overall, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. The adoption of this new accounting guidance did not have a material impact on the Partnership’s consolidated financial statements and related disclosures. On January 1, 2020, the Partnership adopted ASU 2018-13, “Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”, which improves the effectiveness of fair value measurement disclosures. In particular, the amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments in the Update apply to all entities that are required under existing GAAP to make disclosures about recurring and non-recurring fair value measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The adoption of this new accounting guidance did not have a material impact on the Partnership’s consolidated financial statements and related disclosures. On January 1, 2020, the Partnership adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU No. 2017-12), which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the consolidated financial statements and ASU 2018-16, “Derivatives and Hedging (Topic 815)—Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”, which permits the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the UST, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate and the SIFMA Municipal Swap Rate, as further amended through ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments”. The adoption of this new accounting guidance had no effect on the Partnership’s consolidated financial statements. On January 1, 2020, the Partnership adopted ASU 2018-17, “Consolidation (Topic 810)—Targeted Improvements to Related Party Guidance for Variable Interest Entities”, which improves the accounting for the following areas: (i) applying the variable interest entity (VIE) guidance to private companies under common control and (ii) considering indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests, thereby improving general purpose financial reporting. The Partnership applied the amendments in this Update retrospectively, as required. The adoption of this new accounting guidance did not have a material effect on the Partnership’s consolidated financial statements and related disclosures. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. ASU 2020-04 applies to contracts that reference LIBOR or another reference rate expected to be terminated because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848). The amendments in this Update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in this Update to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. The amendments in this Update apply to all entities that elect to apply the optional guidance in Topic 848. ASU 2020-04 and ASU 2021-10 can be adopted as of March 12, 2020 through December 31, 2022. As of December 31, 2020, the Partnership has not made any contract modifications to replace the reference rate in any of its agreements and has not evaluated the effects of this standard on its consolidated financial position, results of operations, and cash flows. The Partnership is the process of evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
Partnership Formation and Gen_2
Partnership Formation and General Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements | |
Vessel Owning Subsidiaries | Company Name Country of incorporation/ formation Vessel Name Delivery date from shipyard Delivery date to Partnership Cbm Capacity Pegasus Shipholding S.A. (“Pegasus”) Marshall Islands Clean Energy March 2007 October 2013 149,700 Lance Shipping S.A. (“Lance”) Marshall Islands Ob River July 2007 October 2013 149,700 Seacrown Maritime Ltd. (“Seacrown”) Marshall Islands Amur River January 2008 October 2013 149,700 Fareastern Shipping Limited (“Fareastern”) Malta Arctic Aurora July 2013 June 2014 155,000 Navajo Marine Limited (“Navajo”) Marshall Islands Yenisei River July 2013 September 2014 155,000 Solana Holding Ltd. (“Solana”) Marshall Islands Lena River October 2013 December 2015 155,000 |
Non-Vessel Owning Subsidiaries | Company Name Country of incorporation /formation Purpose of incorporation Dynagas Equity Holding Limited (“Dynagas Equity”) Marshall Islands Holding company that owns all of the outstanding share capital of Arctic LNG Carriers Ltd. (“Arctic LNG”). Dynagas Operating GP LLC (“Dynagas Operating GP”) Marshall Islands Limited Liability Company in which the Partnership holds a 100% membership interest and which has 100% of the Non-Economic General Partner Interest in Dynagas Operating LP. Dynagas Operating LP (“Dynagas Operating”) Marshall Islands Limited partnership in which the Partnership holds a 100% limited partnership interest and which owns 100% of the issued and outstanding share capital of Dynagas Equity. Dynagas Finance Inc. Marshall Islands Wholly owned subsidiary of the Partnership whose activities were limited to the co-issuance of the 2019 Notes discussed under Note 5 and engaging in other activities incidental thereto. Arctic LNG Marshall Islands Wholly owned subsidiary of the Partnership which is directly wholly owned by Dynagas Equity and which owns all of the issued and outstanding share capital of Pegasus, Lance, Seacrown, Fareastern, Navajo, Solana and Dynagas Finance LLC. Dynagas Finance LLC Delaware Wholly owned subsidiary of Arctic LNG and co-borrower of the Partnership’s Term Loan B discussed under Note 5. |
Significant Accounting Polici_3
Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Major Charterers | Charterer 2020 2019 2018 A 45 % 47 % 69 % B 39 % 31 % — % C 16 % 16 % 18 % Total 100 % 94 % 87 % |
Transactions with related par_2
Transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction, Due from (to) Related Party | |
Related parties transactions | Years ended December 31, 2020 2019 2018 Included in voyage expenses – related party Charter hire commissions (a) $ 1,719 $ 1,631 $ 1,654 Included in general and administrative expenses – related party Executive services fee (d) $ 613 $ 603 $ 637 Administrative services fee (e) $ 120 $ 120 $ 120 Management fees-related party Management fees (a) $ 6,752 $ 6,537 $ 6,347 |
Related parties balances | Year ended December 31, 2020 2019 Assets: Security deposits to Manager (a) $ 1,350 $ 1,350 Total assets due from related party, non-current $ 1,350 $ 1,350 Liabilities included in Due to related party: Working capital due to Manager (a) $ 1,032 $ 1,198 Executive service charges due to Manager (d) $ 159 $ 148 Administrative service charges due to Manager (e) $ 30 $ 30 Management fees due to Manager (a) $ - $ 701 Other Partnership expenses due to Manager $ 485 $ 125 Total liabilities due to related party, current $ 1,706 $ 2,202 |
Vessels, net (Tables)
Vessels, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant and Equipment Net | |
Vessels Table | Vessel Cost Accumulated Depreciation Net Book Value Balance December 31, 2018 $ 1,167,909 $ (220,532) $ 947,377 Depreciation — (30,680) (30,680) Balance December 31, 2019 $ 1,167,909 $ (251,212) $ 916,697 Depreciation — (31,797) (31,797) Balance December 31, 2020 $ 1,167,909 $ (283,009) $ 884,900 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure | |
Loans And Credit Facilities Amounts Outstanding | Year Ended December 31, Debt instruments Borrowers-Issuers 2020 2019 $675 Million Credit Facility Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd. 615,000 663,000 Total debt $ 615,000 $ 663,000 Less deferred financing fees (7,319) (9,846) Total debt, net of deferred finance costs $ 607,681 $ 653,154 Less current portion, net of deferred financing fees $ (45,715) $ (45,482) Long-term debt, net of current portion and deferred financing fees $ 561,966 $ 607,672 |
Minimum Annual Principal Payments | Year ending December 31, Amount 2021 $ 48,000 2022 48,000 2023 48,000 2024 471,000 Total long-term debt $ 615,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Fair Value Of Derivative Net | |
Fair value measurements on a recurring basis | Significant Other Observable Inputs (Level 2) Recurring measurements: December 31, 2020 Interest rate swaps (2,666) Total (2,666) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure | |
Minimum Future Charter Revenues | Year ending December 31, Amount 2021 114,794 2022 103,824 2023 103,824 2024 103,935 2025 103,478 2026 and thereafter 447,063 Total $ 976,918 |
Partners' Equity (Tables)
Partners' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Partners' Equity | |
Percentage allocations of available cash from operating surplus amongst the unit holders | Total Quarterly Distribution Target Amount Unitholders General Partner Holders of IDRs Minimum Quarterly Distribution $0.365 99.9 % 0.1 % 0.0 % First Target Distribution up to $0.420 99.9 % 0.1 % 0.0 % Second Target Distribution above $0.420 up to $0.456 85.0 % 0.1 % 14.9 % Third Target Distribution Above $0.456 up to $0.548 75.0 % 0.1 % 24.9 % Thereafter above $0.548 50.0 % 0.1 % 49.9 % |
(Loss)_ Earnings per Unit (Tabl
(Loss)/ Earnings per Unit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
(Loss)/ Earnings per Unit | |
Basic and Diluted (Loss)/ Earnings per Unit | Year ended December 31, 2020 2019 2018 Partnership’s Net income $ 34,052 $ 3,613 $ 3,613 Less: Net Income attributable to preferred unitholders 11,563 11,563 7,659 General Partner’s interest in Net Income 23 (8) (4) Net income/(loss) attributable to common unitholders $ 22,466 $ (7,942) $ (4,042) Weighted average number of common units outstanding, basic and diluted 35,546,823 35,490,000 35,490,000 Earnings/ (Losses) per common unit, basic and diluted $ 0.63 $ (0.22) $ (0.11) |
Interest and Finance Costs (Tab
Interest and Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interest and Finance Costs | |
Interest and Finance Costs | Year ended December 31, 2020 2019 2018 Interest expense (Note 5) $ 24,146 $ 46,638 $ 46,884 Amortization of deferred financing fees 2,527 3,199 3,261 Write-off of deferred financing fees — 7,497 — Commitment fees (Note 5) — 791 — Other 385 466 345 Total $ 27,058 $ 58,591 $ 50,490 |
Derivative Financial Instrume_2
Derivative Financial Instrument (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative financial instrument | |
Schedule of Derivative Instruments | 2020 Derivative Balance Sheet Location Assets Liabilities Interest rate swap Derivative financial Instruments, Current — 1,332 Interest rate swap Derivative financial Instruments, non- Current — 1,334 Total — 2,666 |
Derivative Instruments, Gain (Loss) | Net Realized and Unrealized Loss Recognized on Statement of Comprehensive Income Location Derivative Amount 2020 Interest rate swap Loss on derivative instruments 3,148 Total 3,148 |
Partnership Formation and Gen_3
Partnership Formation and General Information - Vessel Owning Subsidiaries (Table) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |
Cbm Capacity | 172,000 |
Clean Energy | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | March 2007 |
Delivery date to Partnership | October 2013 |
Cbm Capacity | 149,700 |
Ob River | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | July 2007 |
Delivery date to Partnership | October 2013 |
Cbm Capacity | 149,700 |
Amur River | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | January 2008 |
Delivery date to Partnership | October 2013 |
Cbm Capacity | 149,700 |
Arctic Aurora | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | July 2013 |
Delivery date to Partnership | June 2014 |
Cbm Capacity | 155,000 |
Yenisei River | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | July 2013 |
Delivery date to Partnership | September 2014 |
Cbm Capacity | 155,000 |
Lena River | |
Property, Plant and Equipment [Line Items] | |
Delivery date from shipyard | October 2013 |
Delivery date to Partnership | December 2015 |
Cbm Capacity | 155,000 |
Partnership Formation and Gen_4
Partnership Formation and General Information - Non-Vessel Owning Subsidiaries (Table) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Dynagas Operating GP LLC. | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Ownership interest in subsidiary | 100.00% |
Dynagas Operating LP. | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Ownership interest in subsidiary | 100.00% |
Partnership Formation and Gen_5
Partnership Formation and General Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 11 Months Ended | 12 Months Ended | |
Nov. 18, 2013 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Date of incorporation | May 30, 2013 | ||
Working capital surplus/ (deficit) | $ (35,700) | $ (46,500) | |
IPO | |||
Related Party Transaction [Line Items] | |||
Date of initial public offering (IPO) | Nov. 18, 2013 | ||
Common | IPO | |||
Related Party Transaction [Line Items] | |||
Limited Partners Capital Account Units Offered | 8,250,000 | ||
Shares Issued, Price Per Share | $ 18 | ||
Common | |||
Related Party Transaction [Line Items] | |||
Limited Partners Capital Account Units Offered | 122,580 | ||
Dynagas Holding Ltd | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 44.00% | ||
Dynagas Holding Ltd | General Partner | |||
Related Party Transaction [Line Items] | |||
General Partner Interest in Dynagas LNG Partners LP | 0.10% | ||
Dynagas Holding Ltd | Common | IPO | |||
Related Party Transaction [Line Items] | |||
Limited Partners Capital Account Units Offered | 4,250,000 | ||
Shares Issued, Price Per Share | $ 18 | ||
Dynagas Holding Ltd | $30 million Sponsor Facility | |||
Related Party Transaction [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 30,000 | $ 30,000 | |
Line of credit facility, expiration date | Nov. 30, 2023 |
Significant Accounting Polici_4
Significant Accounting Policies and Recent Accounting Pronouncements - Major Charterers (Table) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Entity Wide Revenue Major Customer | |||
Concentration risk benchmark description | During the years ended December 31, 2020, 2019 and 2018, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows: | ||
Percentage of time charter revenue | 100.00% | 94.00% | 87.00% |
Sales Revenue, Net | |||
Entity Wide Revenue Major Customer | |||
Percentage of time charter revenue | 10.00% | ||
Charterer A | |||
Entity Wide Revenue Major Customer | |||
Percentage of time charter revenue | 45.00% | 47.00% | 69.00% |
Charterer B | |||
Entity Wide Revenue Major Customer | |||
Percentage of time charter revenue | 39.00% | 31.00% | 0.00% |
Charterer C | |||
Entity Wide Revenue Major Customer | |||
Percentage of time charter revenue | 16.00% | 16.00% | 18.00% |
Significant Accounting Polici_5
Significant Accounting Policies and Recent Accounting Pronouncements (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | |
Provision for doubtful accounts | $ 0 | $ 0 | |
Vessels dry-dock or special survey period within the first 15 years of useful life | 5 years | ||
Vessels dry-dock or special survey period within the remaining useful life | 2 years 6 months | ||
Depreciation method | straight-line | ||
Scrap value per light weight ton | $ 685 | ||
Vessels useful life | 35 years | ||
Number of Reportable Segments | 1 | ||
Amortization of contract fulfillment costs | $ 200,000 | ||
Dilutive securities outstanding | shares | 0 | 0 | 0 |
Impairment charges | $ 0 | $ 0 | $ 0 |
Increase/decrease in net income | 34,052,000 | 3,613,000 | $ 3,613,000 |
Change in Accounting Estimate, Scrap value | |||
Scrap value per light weight ton | 500 | ||
Increase in depreciation | 1,400,000 | ||
Increase/decrease in net income | $ 1,400,000 | $ 300,000 | |
Increase in loss per share | $ / shares | $ 0.04 | $ 0.1 | |
Change in Accounting Estimate, date | October 1, 2019 |
Transactions with related par_3
Transactions with related parties - Statements of Income (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Included in voyage expenses - related party | |||
Charter hire commissions (a) | $ 1,719 | $ 1,631 | $ 1,654 |
Included in general and administrative expenses - related party | |||
Executive services fee (d) | 613 | 603 | 637 |
Administrative services fee (e) | 120 | 120 | 120 |
Management fees-related party | |||
Management fees (a) | $ 6,752 | $ 6,537 | $ 6,347 |
Transactions with related par_4
Transactions with related parties - Balance Sheet (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Due from related party, non-current | $ 1,350 | $ 1,350 |
Liabilities: | ||
Due to related party | 1,706 | 2,202 |
Security deposits to Manager (a) | ||
Assets: | ||
Due from related party, non-current | 1,350 | 1,350 |
Working capital due to Manager (a) | ||
Liabilities: | ||
Due to related party | 1,032 | 1,198 |
Executive service charges due to Manager (d) | ||
Liabilities: | ||
Due to related party | 159 | 148 |
Administrative service charges due to Manager (e) | ||
Liabilities: | ||
Due to related party | 30 | 30 |
Management fees due to Manager (a) | ||
Liabilities: | ||
Due to related party | 0 | 701 |
Other Partnership expenses due to Manager | ||
Liabilities: | ||
Due to related party | 485 | 125 |
Dynagas Ltd. | ||
Liabilities: | ||
Due to related party | $ 1,706 | $ 2,202 |
Transactions with related par_5
Transactions with related parties - Dynagas Ltd. (Details) - USD ($) | Jan. 03, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 |
Related Party Transaction | |||||
Management services agreement initial termination date | December 31, 2020 | ||||
Daily management fee | $ 3,100 | $ 3,000 | $ 2,900 | $ 2,500 | |
Management fees annual upward percentage adjustment | 3.00% | ||||
Charter Hire Commission payable to the Management company | 1.25% | ||||
Lump sum payable to the management company for the supervision of vessels construction | $ 700 | ||||
Automatic extension of Management Agreements increments | 8 years | ||||
Master management agreement | |||||
Related Party Transaction | |||||
Management services agreement initial termination date | December 31, 2030 | ||||
Daily management fee | $ 2,750 | $ 3,167 | |||
Automatic extension of Management Agreements increments | 5 years | ||||
Administrative Services Agreement Days Notice Required | 6 months |
Transactions with related par_6
Transactions with related parties - Loan from related party (Details) - Dynagas Holding Ltd - USD ($) $ in Thousands | 10 Months Ended | 11 Months Ended | 12 Months Ended | |
Nov. 14, 2018 | Nov. 18, 2013 | Dec. 31, 2020 | Dec. 31, 2019 | |
$30 million Sponsor Facility | ||||
Debt Instruments | ||||
Revolving credit facility borrowing capacity | $ 30,000 | $ 30,000 | ||
Duration of facility | 5 years | |||
Line of credit facility, expiration date | Nov. 30, 2023 | |||
Revolving credit facility amount drawn down | $ 0 | $ 0 | ||
$30 million Extended Sponsor Facility | ||||
Debt Instruments | ||||
Duration of facility | 5 years |
Transactions with related par_7
Transactions with related parties - Optional Vessel acquisitions from Sponsor/ Omnibus Agreement (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |
LNG Carrier Capacity | 172,000 |
Number Of Vessels | 5 |
Vessel Type | ARC 7 LNG |
Five joint venture entities | Sponsor | |
Related Party Transaction [Line Items] | |
Percentage of ownership in entity | 49.00% |
Transactions with related par_8
Transactions with related parties - Executive - Administrative Services Agreement (Details) € in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 21, 2014 | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 30, 2014USD ($) | |
Related Party Transaction [Line Items] | ||||||
Annual executive services fee | $ 613 | $ 603 | $ 637 | |||
Eur/US Dollar exchange rate | 1.1401 | 1.1401 | ||||
Administrative services fee | $ 120 | $ 120 | $ 120 | |||
Executive services agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Annual executive services fee | $ 613 | € 538 | ||||
Executive services agreement duration | The Executive Services Agreement had an initial term of five years and, on November 18 2018, was automatically renewed for successive five year terms, unless terminated earlier. | |||||
Executive Services Agreement - Initial Term | ||||||
Related Party Transaction [Line Items] | ||||||
Executive services agreement duration | 5 years | |||||
Executive Services Agreement - Automatic Renewal | ||||||
Related Party Transaction [Line Items] | ||||||
Executive services agreement duration | 5 years | |||||
Administrative Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Administrative services days termination notice | 120 days | 120 days | ||||
Administrative Services Agreement | Monthly fee | ||||||
Related Party Transaction [Line Items] | ||||||
Administrative services fee | $ 10 |
Vessels, net (Table) (Details)
Vessels, net (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment | |||
Balance beginning of period | $ 916,697 | ||
Depreciation | (31,797) | $ (30,680) | $ (30,330) |
Balance end of period | 884,900 | 916,697 | |
Vessel Cost | |||
Property Plant And Equipment | |||
Balance beginning of period | 1,167,909 | 1,167,909 | |
Balance end of period | 1,167,909 | 1,167,909 | 1,167,909 |
Accumulated Depreciation | |||
Property Plant And Equipment | |||
Balance beginning of period | (251,212) | (220,532) | |
Depreciation | (31,797) | (30,680) | |
Balance end of period | (283,009) | (251,212) | (220,532) |
Net Book Value | |||
Property Plant And Equipment | |||
Balance beginning of period | 916,697 | 947,377 | |
Depreciation | (31,797) | (30,680) | |
Balance end of period | $ 884,900 | $ 916,697 | $ 947,377 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities And Senior Notes (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instruments | ||
Total debt | $ 615,000 | $ 663,000 |
Less deferred financing fees | (7,319) | (9,846) |
Total debt, net of deferred finance costs | 607,681 | 653,154 |
Less current portion, net of deferred financing fees | (45,715) | (45,482) |
Long-term debt, net of current portion and deferred financing fees | 561,966 | 607,672 |
$675 Million Credit Facility | Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd. | ||
Debt Instruments | ||
Long-term debt | $ 615,000 | $ 663,000 |
Long-Term Debt - Principal Paym
Long-Term Debt - Principal Payments (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure | ||
2021 | $ 48,000 | |
2022 | 48,000 | |
2023 | 48,000 | |
2024 | 471,000 | |
Total long-term debt | $ 615,000 | $ 663,000 |
Long-Term Debt - Credit Facil_2
Long-Term Debt - Credit Facilities And Senior Notes (Details) - USD ($) $ in Thousands | 9 Months Ended | 10 Months Ended | 12 Months Ended | |||||
Sep. 25, 2019 | Oct. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 18, 2019 | May 18, 2017 | Sep. 15, 2014 | |
Debt Instruments | ||||||||
Restricted cash | $ 50,000 | $ 50,000 | ||||||
Weighted average interest rate | 3.70% | 5.40% | 6.40% | |||||
Total interest incurred on long-term debt | $ 24,146 | $ 46,638 | $ 46,884 | |||||
Line of credit facility, commitment fee amount | $ 0 | $ 791 | $ 0 | |||||
$250 Million Senior Unsecured Notes due 2019 (2019 Notes) | ||||||||
Debt Instruments | ||||||||
Principal amount | $ 250,000 | |||||||
Debt Instrument, Maturity Date | Oct. 30, 2019 | |||||||
Senior notes, terms | The 2019 Notes bore 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% | |||||||
Debt Instrument, frequency of payments | quarterly | |||||||
Repayments of notes payable | $ 204,600 | |||||||
$675 Million Senior Secured Term Loan Facility ($675 Million Credit Facility) | ||||||||
Debt Instruments | ||||||||
Principal amount | $ 675,000 | |||||||
Credit facility amount drawn down | $ 675,000 | |||||||
Line of credit facility, repayment installments | 20 | |||||||
Debt instrument, description of variable rate basis | LIBOR | |||||||
Maturity Profile | 5 years | |||||||
Loan Margin Percentage | 3.00% | |||||||
Debt Instrument, frequency of payments | quarterly | |||||||
Vessels provided as collateral | The $675 Million credit facility is secured by, among other things, first priority mortgages on the six LNG vessels in the Partnership's fleet. | |||||||
Covenant compliance | As of December 31, 2020, the Partnership was in compliance with all financial covenants prescribed in its $675 Million Credit Facility. | |||||||
$675 Million Senior Secured Term Loan Facility ($675 Million Credit Facility) | Minimum | ||||||||
Debt Instruments | ||||||||
Restricted cash | $ 50,000 | |||||||
$480 Million Senior Secured Term Loan Facility (Term Loan B) | ||||||||
Debt Instruments | ||||||||
Principal amount | $ 480,000 | |||||||
Debt Instrument, Maturity Date | May 18, 2023 | |||||||
Amount repaid | $ 470,400 | |||||||
Debt instrument, description of variable rate basis | LIBOR | |||||||
Debt Instrument, frequency of payments | quarterly | |||||||
Debt instrument, payment percentage | 0.25% |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Measurements (Table) (Details) - Significant Other Observable Inputs (Level 2) - Fair Value, Recurring measurements $ in Thousands | Dec. 31, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total | $ (2,666) |
Interest Rate Swap | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total | $ (2,666) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instruments | ||
Due from related parties non current carrying value | $ 1,350 | $ 1,350 |
Due from related parties non current fair value - determined through level 3 inputs | $ 892 |
Time charters acquired (Details
Time charters acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 21, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 0 | $ 0 | $ 5,267 | ||
Lena River | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Consideration for vessel and related time charter | $ 240,000 | ||||
Fair value of the favorable time charter acquired | $ 20,000 | ||||
Amortization of intangible assets | $ 0 | $ 0 | $ 5,267 |
Commitments and Contingencies -
Commitments and Contingencies - Charter Hire (Table) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Minimum Future Charter Revenues for the year ending | |
2021 | $ 114,794 |
2022 | 103,824 |
2023 | 103,824 |
2024 | 103,935 |
2025 | 103,478 |
2026 and thereafter | 447,063 |
Total | $ 976,918 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Jan. 03, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||||
Charter Hire Commission payable to the Management company | 1.25% | ||||
Commission payable over the minimum contractual charter revenues | $ 12,211,000 | ||||
Daily management fee | $ 3,100 | $ 3,000 | $ 2,900 | $ 2,500 | |
Management services agreement initial termination date | December 31, 2020 | ||||
Two time charters | |||||
Property, Plant and Equipment [Line Items] | |||||
Nature of lease payments | Escalating | ||||
Two time charters | |||||
Property, Plant and Equipment [Line Items] | |||||
Nature of lease payments | Fixed and variable | ||||
One time charter | |||||
Property, Plant and Equipment [Line Items] | |||||
Term of Time charter contract | 3 years | ||||
Renewal term of Time charter contract | Two consecutive 12 months periods | ||||
Two time charters | |||||
Property, Plant and Equipment [Line Items] | |||||
Renewal term of Time charter contract | Three consecutive periods of five years | ||||
Master management agreement | |||||
Property, Plant and Equipment [Line Items] | |||||
Daily management fee | $ 2,750 | $ 3,167 | |||
Inflation rate adjustment to management fees | 3.00% | ||||
Management services agreement initial termination date | December 31, 2030 | ||||
Management fees | $ 69,080,000 |
Partners' Equity (Table) (Detai
Partners' Equity (Table) (Details) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Total Quarterly Distribution Target Amount | Minimum Quarterly Distribution | Minimum | |
Distribution Per Unit | $ 0.365 |
Total Quarterly Distribution Target Amount | First Target Distribution | Maximum | |
Distribution Per Unit | 0.42 |
Total Quarterly Distribution Target Amount | Second Target Distribution | Maximum | |
Distribution Per Unit | 0.456 |
Total Quarterly Distribution Target Amount | Second Target Distribution | Minimum | |
Distribution Per Unit | 0.42 |
Total Quarterly Distribution Target Amount | Third Target Distribution | Maximum | |
Distribution Per Unit | 0.548 |
Total Quarterly Distribution Target Amount | Third Target Distribution | Minimum | |
Distribution Per Unit | 0.456 |
Total Quarterly Distribution Target Amount | Thereafter | Minimum | |
Distribution Per Unit | $ 0.548 |
Limited Unitholders | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 99.90% |
Limited Unitholders | First Target Distribution | |
Percentage allocations of the additional available cash | 99.90% |
Limited Unitholders | Second Target Distribution | |
Percentage allocations of the additional available cash | 85.00% |
Limited Unitholders | Third Target Distribution | |
Percentage allocations of the additional available cash | 75.00% |
Limited Unitholders | Thereafter | |
Percentage allocations of the additional available cash | 50.00% |
General Partner | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | First Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Second Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Third Target Distribution | |
Percentage allocations of the additional available cash | 0.10% |
General Partner | Thereafter | |
Percentage allocations of the additional available cash | 0.10% |
Holders of IDRs | Minimum Quarterly Distribution | |
Percentage allocations of the additional available cash | 0.00% |
Holders of IDRs | First Target Distribution | |
Percentage allocations of the additional available cash | 0.00% |
Holders of IDRs | Second Target Distribution | |
Percentage allocations of the additional available cash | 14.90% |
Holders of IDRs | Third Target Distribution | |
Percentage allocations of the additional available cash | 24.90% |
Holders of IDRs | Thereafter | |
Percentage allocations of the additional available cash | 49.90% |
Partners' Equity (Details)
Partners' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 7 Months Ended | 10 Months Ended | 12 Months Ended | ||
Jul. 20, 2015 | Oct. 23, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction | |||||
Common unitholders - units issued | 35,612,580 | 35,490,000 | |||
Common unitholders - units outstanding | 35,612,580 | 35,490,000 | |||
General Partner unitholders - units issued | 35,526 | 35,526 | |||
General Partner unitholders - units outstanding | 35,526 | 35,526 | |||
Proceeds from issuance of common units, net of commissions and expenses | $ 300 | ||||
Total distributions paid to all classes of unitholders | 11,563 | $ 16,391 | $ 48,422 | ||
Issuance of Series A preferred units, net of issuance costs paid | 0 | 0 | 53,138 | ||
Proceeds from Issuance of Common Limited Partners Units | $ 297 | $ 0 | $ 0 | ||
Series A Preferred | |||||
Related Party Transaction | |||||
Units issued | 3,000,000 | 3,000,000 | |||
Units outstanding | 3,000,000 | 3,000,000 | |||
Issuance of units in public offering | 3,000,000 | ||||
Preferred stock liquidation preference | $ 25 | ||||
Proceeds from issuance of preferred units, net of offering costs | $ 72,300 | ||||
Offering costs | 300 | ||||
Underwriting discounts and commissions | $ 2,400 | ||||
Fixed payment rate per annum | 9.00% | ||||
Series B Preferred | |||||
Related Party Transaction | |||||
Units issued | 2,200,000 | 2,200,000 | |||
Units outstanding | 2,200,000 | 2,200,000 | |||
Issuance of units in public offering | 2,200,000 | 2,200,000 | |||
Preferred stock liquidation preference | $ 25 | ||||
Proceeds from issuance of preferred units, net of offering costs | $ 53,000 | ||||
Underwriting discounts and commissions | $ 2,000 | ||||
After subordination period | |||||
Related Party Transaction | |||||
Distribution payment terms | First, 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until the distributed amount in respect of each common unit equals the minimum quarterly distribution; and second, 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until each unit has received an aggregate distribution of a specified dollar amount. | ||||
Any time on or after August 12, 2020 | Series A Preferred | |||||
Related Party Transaction | |||||
Redemption price per share | $ 25 | ||||
From and including November 22, 2023 | Series B Preferred | |||||
Related Party Transaction | |||||
Preferred stock dividend payment rate description | 3-month LIBOR plus a spread of 5.593% | ||||
Floating rate per annum | 5.593% | ||||
Any time on or after November 22, 2023 | Series B Preferred | |||||
Related Party Transaction | |||||
Redemption price per share | $ 25 | ||||
Distribution 1 - FY 2018 | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 18, 2018 | ||||
Distributions paid, Per unit | $ 0.25 | ||||
Distributions per unit declared - distribution date | May 3, 2018 | ||||
Distributions per unit declared - record date | Apr. 26, 2018 | ||||
Distribution from and including original issue date to, but excluding, November 22, 2023 | Series B Preferred | |||||
Related Party Transaction | |||||
Fixed payment rate per annum | 8.75% | ||||
Distribution 1 - FY 2019 | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 25, 2019 | ||||
Distributions paid, Per unit | $ 0.0625 | ||||
Distributions per unit declared - distribution date | Feb. 14, 2019 | ||||
Distributions per unit declared - record date | Feb. 7, 2019 | ||||
Distribution 2 - FY 2019 | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 24, 2019 | ||||
Distributions paid, Per unit | $ 0.0625 | ||||
Total distributions paid to all classes of unitholders | $ 2,200 | ||||
Distributions per unit declared - distribution date | May 10, 2019 | ||||
Distributions per unit declared - record date | May 3, 2019 | ||||
Distribution From November 12, 2019 to February 11, 2020 | Series A Preferred | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 20, 2020 | ||||
Distributions paid, Per unit | $ 0.5625 | ||||
Distributions per unit declared - distribution date | Feb. 12, 2020 | ||||
Distributions per unit declared - record date | Feb. 5, 2020 | ||||
Distribution From February 12, 2020 to May 11, 2020 | Series A Preferred | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 21, 2020 | ||||
Distributions paid, Per unit | $ 0.5625 | ||||
Distributions per unit declared - distribution date | May 12, 2020 | ||||
Distributions per unit declared - record date | May 5, 2020 | ||||
Distribution From May 12, 2020 to August 11, 2020 | Series A Preferred | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jul. 21, 2020 | ||||
Distributions paid, Per unit | $ 0.5625 | ||||
Distributions per unit declared - distribution date | Aug. 12, 2020 | ||||
Distributions per unit declared - record date | Aug. 5, 2020 | ||||
Distribution From August 12, 2020 to November 11, 2020 | Series A Preferred | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Oct. 19, 2020 | ||||
Distributions paid, Per unit | $ 0.5625 | ||||
Distributions per unit declared - distribution date | Nov. 12, 2020 | ||||
Distributions per unit declared - record date | Nov. 5, 2020 | ||||
Distribution From November 22, 2019 to February 21, 2020 | Series B Preferred | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 30, 2020 | ||||
Distributions paid, Per unit | $ 0.546875 | ||||
Distributions per unit declared - distribution date | Feb. 24, 2020 | ||||
Distributions per unit declared - record date | Feb. 14, 2020 | ||||
Distribution From February 22, 2020 to May 21, 2020 | Series B Preferred | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 27, 2020 | ||||
Distributions paid, Per unit | $ 0.546875 | ||||
Distributions per unit declared - distribution date | May 22, 2020 | ||||
Distributions per unit declared - record date | May 15, 2020 | ||||
Distribution From May 22, 2020 to August 21, 2020 | Series B Preferred | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jul. 27, 2020 | ||||
Distributions paid, Per unit | $ 0.546875 | ||||
Distributions per unit declared - distribution date | Aug. 24, 2020 | ||||
Distributions per unit declared - record date | Aug. 17, 2020 | ||||
Distribution From August 22, 2020 to November 21, 2020 | Series B Preferred | |||||
Related Party Transaction | |||||
Distribution Made To Limited Partner And General Partner Announcement Date | Oct. 27, 2020 | ||||
Distributions paid, Per unit | $ 0.546875 | ||||
Distributions per unit declared - distribution date | Nov. 23, 2020 | ||||
Distributions per unit declared - record date | Nov. 16, 2020 | ||||
General Partner | |||||
Related Party Transaction | |||||
General Partner Distributions | $ 0 | $ 4 | $ 59 | ||
Common | |||||
Related Party Transaction | |||||
Issuance of units in public offering | 122,580 | ||||
A&R Sales Agreement | |||||
Related Party Transaction | |||||
Issuance of units in public offering | 122,580 | ||||
Proceeds from Issuance of Common Limited Partners Units | $ 30,000 | ||||
Sponsor | |||||
Related Party Transaction | |||||
Common unitholders - units outstanding | 15,595,000 |
(Loss)_ Earnings per Unit (Ta_2
(Loss)/ Earnings per Unit (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
(Loss)/ Earnings Per Share | |||
Partnership's Net income | $ 34,052 | $ 3,613 | $ 3,613 |
Less: | |||
Net Income attributable to preferred unitholders | 11,563 | 11,563 | 7,659 |
General Partner's interest in Net Income | 23 | (8) | (4) |
Net income/(loss) attributable to common unitholders | $ 22,466 | $ (7,942) | $ (4,042) |
Weighted average number of common units outstanding, basic and diluted | 35,546,823 | 35,490,000 | 35,490,000 |
Earnings/ (Losses) per common unit, basic and diluted | $ 0.63 | $ (0.22) | $ (0.11) |
Interest and Finance Costs (T_2
Interest and Finance Costs (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finance Costs | |||
Interest expense (Note 5) | $ 24,146 | $ 46,638 | $ 46,884 |
Amortization of deferred financing fees | 2,527 | 3,199 | 3,261 |
Write-off of deferred financing fees | 0 | 7,497 | 0 |
Commitment fees (Note 5) | 0 | 791 | 0 |
Other | 385 | 466 | 345 |
Total | $ 27,058 | $ 58,591 | $ 50,490 |
Derivative Financial Instrume_3
Derivative Financial Instrument - Not Designated as Hedging Instrument - Balance Sheet Location (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities | ||
Derivative financial Instruments Liabilities, Current | $ 1,332 | $ 0 |
Derivative financial Instruments Liabilities, non- Current | 1,334 | $ 0 |
Interest Rate Swap | Balance Sheet Location [Member] | ||
Assets | ||
Derivative financial Instruments Asset, Current | 0 | |
Derivative financial Instruments Asset, non- Current | 0 | |
Total Assets | 0 | |
Liabilities | ||
Derivative financial Instruments Liabilities, Current | 1,332 | |
Derivative financial Instruments Liabilities, non- Current | 1,334 | |
Total Liabilities | $ 2,666 |
Derivative Financial Instrume_4
Derivative Financial Instrument - Not Designated as Hedging Instrument - Net Effect on the Consolidated Statements of Comprehensive Income (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss on derivative financial instruments | $ 3,148 | $ 0 | $ 0 |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss on derivative financial instruments | (500) | ||
Interest Rate Swap | Net Realized and Unrealized Loss Recognized on Statement of Comprehensive Income Location | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss on derivative financial instruments | $ 3,148 |
Derivative Financial Instrume_5
Derivative Financial Instrument (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | ||
May 07, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||||
Loss on derivative financial instruments | $ 3,148 | $ 0 | $ 0 | |
Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Notional Amount | 615,000 | |||
Loss on derivative financial instruments | (500) | |||
Fair value of derivative liability | $ 2,666 | $ 0 | ||
$675 Million Credit Facility | Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Inception date | Jun. 29, 2020 | |||
Derivative, Maturity date | Sep. 30, 2024 | |||
Derivative, Fixed Interest Rate | 0.41% | |||
Derivative Underlying | Fixed 3-month LIBOR rate |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure | |||
Tonnage taxes for the period | $ 344 | $ 332 | $ 548 |
Potential income tax in absence of exemption | $ 65 | $ 29 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 03, 2021USD ($) | Jan. 28, 2021$ / shares | Jan. 21, 2021$ / shares | Mar. 03, 2021$ / shares | Apr. 29, 2021USD ($)$ / shares | Apr. 20, 2021$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2013USD ($) |
Number Of Vessels | 5 | |||||||||
Vessel Type | ARC 7 LNG | |||||||||
LNG Carrier Capacity | 172,000 | |||||||||
Daily management fee | $ | $ 3,100 | $ 3,000 | $ 2,900 | $ 2,500 | ||||||
Master management agreement | ||||||||||
Daily management fee | $ | $ 2,750 | $ 3,167 | ||||||||
Subsequent Event | Quarterly Unit Cash Distribution From November 12, 2020 to February 11, 2021 | Series A Preferred | ||||||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 21, 2021 | |||||||||
Distributions paid, Per unit | $ 0.5625 | |||||||||
Distribution Made To Limited And General Partner Distribution Date | Feb. 12, 2021 | |||||||||
Distribution Made To Limited And General Partner Date Record | Feb. 5, 2021 | |||||||||
Subsequent Event | Quarterly Unit Cash Distribution From November 22, 2020 to February 21, 2021 | Series B Preferred | ||||||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 28, 2021 | |||||||||
Distributions paid, Per unit | $ 0.546875 | |||||||||
Distribution Made To Limited And General Partner Distribution Date | Feb. 22, 2021 | |||||||||
Distribution Made To Limited And General Partner Date Record | Feb. 15, 2021 | |||||||||
Subsequent Event | Quarterly Unit Cash Distribution From February 12, 2021 to May 11, 2021 | Series A Preferred | ||||||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 20, 2021 | |||||||||
Distributions paid, Per unit | $ 0.5625 | |||||||||
Distribution Made To Limited And General Partner Distribution Date | May 12, 2021 | |||||||||
Distribution Made To Limited And General Partner Date Record | May 5, 2021 | |||||||||
Subsequent Event | Quarterly Unit Cash Distribution From February 22, 2021 to May 21, 2021 | Series B Preferred | ||||||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 27, 2021 | |||||||||
Distributions paid, Per unit | $ 0.546875 | |||||||||
Distribution Made To Limited And General Partner Distribution Date | May 24, 2021 | |||||||||
Distribution Made To Limited And General Partner Date Record | May 17, 2021 | |||||||||
Subsequent Event | Amended and Restated ATM Sales Agreement | ||||||||||
Average price per unit | $ 2.9153 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ | $ 26,500,000 | |||||||||
Partners Capital Account Public Sale Of Units Net Of Offering Costs | $ | $ 3,500,000 |