Document Entity Information
Document Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36185 |
Entity Registrant Name | DYNAGAS LNG PARTNERS LP |
Entity Incorporation, State or Country Code | 1T |
Entity Address, Address Line One | Poseidonos Avenue and Foivis 2 Street |
Entity Address, Postal Zip Code | 166 74 |
Entity Address, City or Town | Glyfada, Athens |
Entity Address, Country | GR |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Name | Ernst & Young (Hellas) Certified Auditors Accountants S.A. |
Auditor Firm ID | 1457 |
Auditor Location | Athens, Greece |
Entity Central Index Key | 0001578453 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Common Units Representing Limited Partnership Interests | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | Common units representing limited partnership interests |
Trading Symbol | DLNG |
Security Exchange Name | NYSE |
Series A Preferred | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | 9.00% Series A Cumulative Redeemable Preferred Units |
Trading Symbol | DLNG PR A |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 3,000,000 |
Series B Preferred | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | 8.75% Series B Fixed to Floating Rate Cumulative Redeemable Perpetual Preferred Units |
Trading Symbol | DLNG PR B |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 2,200,000 |
Common Limited Partner | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 36,802,247 |
General Partner II | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 35,526 |
Business Contact | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Poseidonos Avenue and Foivis 2 Street |
Entity Address, Postal Zip Code | 166 74 |
Entity Address, City or Town | Glyfada, Athens |
Entity Address, Country | GR |
Contact Personnel Name | Michael Gregos |
City Area Code | +30 |
Local Phone Number | 210 891 7960 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 73,752 | $ 48,598 |
Trade accounts receivable | 709 | 67 |
Prepayments and other assets | 8,117 | 2,127 |
Inventories | 751 | 885 |
Accrued charter revenue, current portion | 6,080 | |
Deferred Charges, current portion | 217 | |
Derivative financial instrument, current portion | 15,631 | 22,544 |
Total current assets | 105,257 | 74,221 |
FIXED ASSETS, NET: | ||
Vessels, net | 797,363 | 825,105 |
Total fixed assets, net | 797,363 | 825,105 |
OTHER NON-CURRENT ASSETS: | ||
Restricted cash | 31,270 | |
Due from related party | $ 1,350 | $ 1,350 |
Other Receivable, after Allowance for Credit Loss, Noncurrent, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Accrued charter revenue | $ 2,298 | $ 355 |
Deferred charges | 856 | 1,289 |
Other receivables, non- current | 1,789 | 1,789 |
Derivative financial instrument, non - current portion | 12,333 | |
Total assets | 908,913 | 947,712 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt, net of unamortized deferred financing fees of 1,058 and $1,748, respectively | 419,584 | 46,252 |
Trade payables | 13,815 | 8,035 |
Due to related party | 1,555 | 1,472 |
Accrued liabilities | 3,291 | 2,656 |
Deferred Revenue - Current | 497 | |
Unearned revenue | 20,019 | 11,855 |
Total current liabilities | 458,761 | 70,270 |
NON-CURRENT LIABILITIES: | ||
Deferred revenue | 1,912 | 2,730 |
Long-term debt, net of current portion and unamortized deferred financing fees of nil and $1,131, respectively | 450,781 | |
Total non-current liabilities | 1,912 | 453,511 |
Commitments and contingencies | ||
PARTNERS' EQUITY: | ||
Common unitholders (unlimited authorized; 36,802,247 units issued and outstanding as at December 31, 2023 and December 31, 2022) | 321,424 | 297,139 |
General Partner (35,526 units issued and outstanding as at December 31, 2023 and December 31, 2022) | 102 | 78 |
Total partners' equity | 448,240 | 423,931 |
Total liabilities and partners' equity | 908,913 | 947,712 |
Series A Preferred unitholders | ||
PARTNERS' EQUITY: | ||
Preferred Unitholders | 73,216 | 73,216 |
Series B Preferred unitholders | ||
PARTNERS' EQUITY: | ||
Preferred Unitholders | $ 53,498 | $ 53,498 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred finance fees, current portion | $ 1,058 | $ 1,748 |
Debt issuance costs, noncurrent, net | $ 0 | $ 1,131 |
Common unitholders - units outstanding | 36,802,247 | 36,802,247 |
General partner issued | 35,526 | 35,526 |
General partner outstanding | 35,526 | 35,526 |
Series A Preferred unitholders | ||
Preferred units, authorized | 3,450,000 | 3,450,000 |
Preferred units, issued | 3,000,000 | 3,000,000 |
Preferred units, outstanding | 3,000,000 | 3,000,000 |
Series B Preferred unitholders | ||
Preferred units, authorized | 2,530,000 | 2,530,000 |
Preferred units, issued | 2,200,000 | 2,200,000 |
Preferred units, outstanding | 2,200,000 | 2,200,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES: | |||
Voyage revenues | $ 148,878 | $ 131,657 | $ 137,746 |
Revenues from contracts with customers | 11,602 | 0 | 0 |
EXPENSES: | |||
Voyage expenses | (1,478) | (1,328) | (939) |
Voyage expenses-related party | (1,860) | (1,632) | (1,718) |
Vessel operating expenses | (34,412) | (29,773) | (29,640) |
Dry-docking and special survey costs | (17,650) | (12,791) | |
General and administrative expenses | (1,331) | (2,099) | (2,347) |
General and administrative expenses- related party | (701) | (688) | (758) |
Management fees-related party | (6,389) | (6,203) | (6,023) |
Depreciation | (31,946) | (31,806) | (31,710) |
Operating income | 64,713 | 45,337 | 64,611 |
OTHER INCOME/(EXPENSES): | |||
Interest and finance costs | (39,210) | (27,911) | (21,420) |
Interest income | 2,593 | 829 | |
Gain on derivative financial instrument | 5,267 | 33,655 | 10,104 |
Gain/ (Loss) on Debt extinguishment | (154) | 2,072 | |
Other Income | 2,881 | ||
Other, net | (218) | 28 | (35) |
Total other income/ (expenses), net | (28,841) | 8,673 | (11,351) |
Partnership's Net Income | 35,872 | 54,010 | 53,260 |
Common unitholders' interest in Net Income | 24,285 | 42,405 | 41,656 |
General Partner's interest in Net Income | $ 24 | $ 42 | $ 41 |
Earnings per unit, basic and diluted: | |||
Common unit, basic | $ 0.66 | $ 1.15 | $ 1.14 |
Common unit, diluted | $ 0.66 | $ 1.15 | $ 1.14 |
Weighted average number of units outstanding, basic and diluted: | |||
Common units, basic | 36,802,247 | 36,802,247 | 36,504,120 |
Common units, diluted | 36,802,247 | 36,802,247 | 36,504,120 |
Series A Preferred unitholders | |||
OTHER INCOME/(EXPENSES): | |||
Preferred unitholders' interest in Net Income | $ 6,750 | $ 6,750 | $ 6,750 |
Series B Preferred unitholders | |||
OTHER INCOME/(EXPENSES): | |||
Preferred unitholders' interest in Net Income | $ 4,813 | $ 4,813 | $ 4,813 |
Consolidated Statements of Part
Consolidated Statements of Partners' Equity - USD ($) $ in Thousands | Series A Preferred | Series B Preferred | Common | General Partner | Total |
Balance at the beginning at Dec. 31, 2020 | $ 73,216 | $ 53,498 | $ 209,784 | $ (5) | $ 336,493 |
Balance at the beginning (shares) at Dec. 31, 2020 | 3,000,000 | 2,200,000 | 35,612,580 | 35,526 | |
Net income | $ 6,750 | $ 4,813 | $ 41,656 | $ 41 | 53,260 |
Issuance of common stock, net of issuance costs (Note 8) | $ 3,294 | $ 3,294 | |||
Issuance of common stock, net of issuance costs (Note 8) (shares) | 1,189,667 | 1,189,667 | |||
Distributions declared and paid (preferred units) (Note 8) | (6,750) | (4,813) | $ (11,563) | ||
Balance at the end at Dec. 31, 2021 | $ 73,216 | $ 53,498 | $ 254,734 | $ 36 | 381,484 |
Balance at the end (shares) at Dec. 31, 2021 | 3,000,000 | 2,200,000 | 36,802,247 | 35,526 | |
Net income | $ 6,750 | $ 4,813 | $ 42,405 | $ 42 | 54,010 |
Distributions declared and paid (preferred units) (Note 8) | (6,750) | (4,813) | (11,563) | ||
Balance at the end at Dec. 31, 2022 | $ 73,216 | $ 53,498 | $ 297,139 | $ 78 | 423,931 |
Balance at the end (shares) at Dec. 31, 2022 | 3,000,000 | 2,200,000 | 36,802,247 | 35,526 | |
Net income | $ 6,750 | $ 4,813 | $ 24,285 | $ 24 | 35,872 |
Distributions declared and paid (preferred units) (Note 8) | (6,750) | (4,813) | (11,563) | ||
Balance at the end at Dec. 31, 2023 | $ 73,216 | $ 53,498 | $ 321,424 | $ 102 | $ 448,240 |
Balance at the end (shares) at Dec. 31, 2023 | 3,000,000 | 2,200,000 | 36,802,247 | 35,526 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from Operating Activities: | |||
Net income | $ 35,872 | $ 54,010 | $ 53,260 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 31,946 | 31,806 | 31,710 |
Amortization and write-off of deferred financing fees | 1,667 | 2,032 | 2,285 |
Deferred revenue amortization | (8,343) | (675) | 222 |
Amortization of deferred charges | 216 | 216 | 501 |
Dry-docking and special survey costs | 17,650 | 12,791 | |
Gain on derivative financial instruments | (5,267) | (33,655) | (10,104) |
(Gain)/ Loss on Debt extinguishment | 154 | (2,072) | |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (642) | 23 | 294 |
Prepayments and other assets | (6,040) | (1,284) | (505) |
Inventories | 134 | 24 | (101) |
Due from/to related parties | 83 | 2,369 | (2,603) |
Trade accounts payable | (5,276) | (9,526) | 1,280 |
Accrued liabilities | (5,928) | 1,070 | (235) |
Deferred charges | (9) | ||
Unearned revenue | 8,165 | 195 | 3,596 |
Net cash provided by Operating Activities | 64,391 | 57,324 | 79,591 |
Cash flows from Investing Activities: | |||
Ballast water treatment system installation | (4,238) | (3,635) | |
Net cash used in Investing Activities | (4,238) | (3,635) | |
Cash flows from Financing Activities: | |||
Net proceeds from issuance of common units | 3,407 | ||
Payment of securities registration and other filing costs | (14) | ||
Distributions declared and paid | (11,563) | (11,563) | (11,563) |
Repayment of long-term debt | (79,270) | (64,893) | (48,000) |
Other payments | (1,789) | ||
Receipt/ (Payment) of derivative instruments | 24,564 | 7,409 | (1,385) |
Net cash used in Financing Activities | (66,269) | (70,836) | (57,555) |
Net increase/ (decrease) in cash and cash equivalents and restricted cash | (6,116) | (17,147) | 22,036 |
Cash and cash equivalents and restricted cash at beginning of the year | 79,868 | 97,015 | 74,979 |
Cash and cash equivalents and restricted cash at end of the year | 73,752 | 79,868 | 97,015 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash and cash equivalents | 73,752 | 48,598 | 47,015 |
Restricted cash | 31,270 | 50,000 | |
Cash and cash equivalents and restricted cash | 73,752 | 79,868 | 97,015 |
Cash paid during the year for: | |||
Interest | $ 37,303 | $ 25,397 | $ 18,777 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation and General Information | |
Basis of Presentation and General Information | 1 . 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. The Partnership earned in the year ended as of December 31, 2023, 43% (2022: 41%) of its revenues from Yamal Trade Pte. Ltd. (“Yamal”), which traded primarily from Russian LNG ports. Due to the recent Russian conflicts with Ukraine, the United States (“U.S.”), European Union (“E.U.”), Canada and other Western countries and organizations announced and enacted from February 2022 to date, numerous sanctions against Russia which have not expressly prohibited LNG shipping in the main trading routes of the Partnership’s vessels. The Partnership’s time charter contracts have therefore currently not been affected by the sanctions imposed to date due to the events in Russia and Ukraine. Currently imposed sanctions, do not affect the Partnership’s compliance with terms imposed by its $675 Million Credit Facility. As there is currently uncertainty regarding the global impact of the conflict, which is ongoing, it is possible that further developments in sanctions or escalation of the conflict will affect the Partnership’s ability to continue to employ two out of its six vessels to the current charterers and the suspension, termination, or cancellation of such charter parties, could thus adversely affect the Partnership’s results of operation, cash flows and financial condition. The Partnership believes that despite the continuing uncertainty, in the event of suspension, termination, cancellation of any of these charters, it will be able to enter into replacement time charters acceptable to the lenders. As of December 31, 2023, the Partnership reported cash and cash equivalents of $73.8 million and had a working capital deficit of $353.5 million. The working capital deficit is due to the balloon payment relating to the $675 Million Credit Facility, falling due on September 18, 2024, amounting to $384.6 million. The Partnership estimates that before considering the below mentioned or any other plan for refinancing the balloon payment of the maturing debt, available cash and cash expected to be generated from operating activities will not be sufficient to repay the balloon installment, which is due within one year after the date that the financial statements are issued. On March 14, 2024, the Partnership entered into a term sheet with China Development Bank Financial Leasing Co. Ltd. (“CDBL”) setting forth indicative terms and conditions for a sale and leaseback arrangement, for four of its vessels in an amount of up to $345.0 million (the “Lease Financing ”) (Note 13 c). At the end of the lease term the Partnership will have the obligation to purchase the four vessels at a predetermined price. The terms offered by CDBL have been credit approved by the counterparty and the Lease Financing is currently in drafting stage, subject to the execution of definitive documentation and the satisfaction of customary closing conditions and is expected to close in the second quarter of 2024. The Partnership has considered the above, as well as, the market values of the four vessels subject to the Lease Financing compared to the amount of the balloon installment of the maturing debt, the current market conditions and market outlook, its operating performance and its current backlog, and the past history of successful refinancing arrangements, and therefore, believes that the refinancing of the $675 Million Credit Facility is probable and will mitigate conditions indicating that cash and cash expected to be generated from operating activities will not be sufficient to cover its obligations falling due within one year after the date that the financial statements are issued. 1. The Partnership believes it has the ability to continue as a going concern over the next twelve months following the date of the issuance of these financial statements and finance its obligations as they come due via cash from operations and through refinancing its existing loan agreement (Note 13 c). Consequently, the consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. 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, 2023: Vessel Owning Subsidiaries: Country of incorporation/ Delivery date Delivery date to Cbm Company Name formation Vessel Name from shipyard Partnership 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 Purpose of incorporation Dynagas Equity Holding Limited (“Dynagas Equity”) Marshall Islands Holding company that owns all of the outstanding shares of Arctic LNG Carriers Ltd. (“Arctic LNG”). Dynagas Operating GP LLC (“Dynagas Operating GP”) Marshall Islands Limited liability 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 shares 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 Carriers Ltd. Marshall Islands Wholly owned subsidiary of the Partnership which is directly wholly owned by Dynagas Equity and which owns all of the issued and outstanding shares 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, 2023, the Partnership’s Sponsor owned 42.4% of the outstanding equity interests in the Partnership (excluding the Series A Preferred Units and the Series B Preferred Units, both of which, generally, have no voting rights), including the 0.1% general partner interest retained by it, as the General Partner, through Dynagas GP LLC, which is owned and controlled by the Sponsor. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Significant Accounting Policies and Recent Accounting Pronouncements | 2. (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, 2023, 2022 and 2021, 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. On an on-going basis, management evaluates the estimates and judgments, including those related to expected future cash flows from long-lived assets to support impairment tests. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. (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, 2023, 2022 and 2021, 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 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. 2. (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, 2023 and 2022, was nil . (h) Inventories: Inventories consist of lubricants which are stated at the lower of cost or net realizable value. 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. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. 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 assesses its insurance claim balances for credit losses in accordance with ASC 326. No allowance was recorded on insurance claims as of December 31, 2023 and 2022. (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. The Partnership currently uses a scrap rate estimate of $0.500 per lightweight ton per LNG carrier. 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. 2. (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, 2023, 2022 and 2021, the Partnership incurred no impairment loss. (l) Accounting for Special Survey and Dry-Docking Costs: The Partnership follows the direct expense method of accounting for dry-docking and special survey costs, 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. 2. (m) Financing Costs: “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 are expensed as interest and finance costs in the period the repayment or extinguishment is made and included in the determination of gain or loss on debt extinguishment. Loan commitment fees are expensed as incurred. (n) 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, 2023, 2022 and 2021, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows: Charterer 2023 2022 2021 A 41 % 43 % 45 % B 43 % 41 % 39 % C 16 % 16 % 16 % Total 100 % 100 % 100 % The maximum aggregate amount of loss due to credit risk, that the Partnership would have incurred if the aforementioned charterers failed completely to perform according to the terms of their respective charter parties, amounted to $709 and $67 as of December 31, 2023 and 2022, respectively. (o) 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. 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 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. 2. In case that a change in the terms and conditions of a time charter agreement results in a change in the scope of or the consideration for a lease (for example, a change to the terms and conditions of the contract that adds or terminates the right to use one or more vessels or extends or shortens the contractual lease term), the lease is considered modified. The Partnership assesses whether the lease modification should be accounted as a separate contract or not based as per ASC 842-10-25-8. Specifically, the Partnership accounts for a modification to a lease as a separate contract when both of the following conditions are present: a. The modification grants the charterer an additional right of use not included in the original lease (for example, the right to use an additional asset); b. The lease payments increase commensurate with the standalone price for the additional right of use, adjusted for the circumstances of the particular time charter agreement. In case any of the above conditions are not met, the Partnership does not account for the modified lease as a separate contract. Specifically, if the original lease and the modified lease are both classified as operating leases (i.e., no change to lease classification), the Partnership recognizes lease payments to be made under the modified lease, adjusted for any prepaid or accrued hire from the original lease, generally on a straight-line basis over the new lease term (i.e., the remaining lease term from the original lease at the date of modification, adjusted for the additional or terminated periods). Any initial direct costs incurred in connection with the modification are recognized as an expense over the new lease term. 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. 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. 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 all years ended December 31, 2023, 2022 and 2021, 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. Revenues from contracts with customers include compensation from the charterer for services regarding the special survey of the vessels, as per the terms of the charter party agreement and are recognized in accordance with ASC 606, as the performance obligation is satisfied. During the years ended December 31, 2023, 2022 and 2021, revenues from contract with customers were $11,602, nil and nil, respectively. (p) 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. 2. (q) Earnings/ (Loss) Per Unit : As of December 31, 2023, 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, 2023. (r) 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. (s) 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. (t) Commitments and Contingencies : Commitments are recognized when the Partnership has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will 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 7). 2. (u) Accounting for Financial Instruments: The principal financial assets of the Partnership consist of cash and cash equivalents, restricted cash, amounts due from related parties, other receivable, non- current, trade accounts receivable and a derivative financial instrument (interest rate swap). The principal financial liabilities of the Partnership consist of trade and other accounts payable, accrued liabilities, long-term debt, and amounts due to related parties. 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. (v) 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 Gain/ (Loss) on derivative financial instrument (Note 11). 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 Gain/ (Loss) on derivative financial instrument and any related cash settlements are classified under financing activities in the statement of cash flows. 2. (w) Going concern: The Partnership’s policy is in accordance with ASC 205-40, “Presentation of Financial Statements-Going Concern.” ASC 205-40 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 Reference Rate Reform (Topic 848): Recent Accounting Pronouncements Not Yet Adopted In October 2023, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) No. 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. The amendments in this Update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. The effective date for each amendment of the ASU 2023-06 will be, for entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in ASU 2023-06 should be applied prospectively. The Company evaluated the impact of this ASU on its consolidated financial Statements and determined that there is no impact as the disclosure improvements required by the ASU amendments are already required by the SEC’s Regulation S-X and Regulation S-K. 2. Recent Accounting Pronouncements Not Yet Adopted (continued) Furthermore, in November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures (or ASU 2023-07). ASU 2023-07 introduced updates for how significant segment expense categories and amounts for each reportable segment are disclosed. A significant segment expense is defined as an expense that is: a) Significant to the segment, b) Regularly provided to or easily computed from information regularly provided to the chief operating decision maker, and c) Included in the reported measure of segment profit or loss. The additional disclosure for segmented reporting is intended to provide additional information to financial statement users as now expenses such as direct expenses, shared expenses, allocated corporate overhead, or signif |
Transactions with related parti
Transactions with related parties | 12 Months Ended |
Dec. 31, 2023 | |
Transactions with related parties | |
Transactions with related parties | 3. During the years ended December 31, 2023, 2022 and 2021, 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, 2023 2022 2021 Included in voyage expenses – related party Charter hire commissions (a) $ 1,860 $ 1,632 $ 1,718 Included in general and administrative expenses – related party Executive services fee (d) $ 581 $ 568 $ 638 Administrative services fee (e) $ 120 $ 120 $ 120 Management fees-related party Management fees (a) $ 6,389 $ 6,203 $ 6,023 As of December 31, 2023, and December 2022, balances with related parties consisted of the following: Year ended December 31, 2023 2022 Assets: Security deposits to Manager (a) $ 1,350 $ 1,350 Total assets due from related party $ 1,350 $ 1,350 Liabilities included in Due to related party: Working capital due to Manager (a) $ 615 $ 836 Executive service charges due to Manager (d) $ 143 $ 135 Administrative service charges due to Manager (e) $ 30 $ 30 Other Partnership expenses due to Manager $ 767 $ 471 Total liabilities due to related party, current $ 1,555 $ 1,472 3. a) Dynagas Ltd. The Partnership’s vessels originally entered into vessel management agreements with Dynagas Ltd., the Partnership’s Manager (the “Management Agreements”), which terminated on December 31, 2020. 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. 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. On March 3, 2021, the Partnership entered into a new master management agreement (the “Master Agreement”) with Dynagas Ltd. (the “Manager”), which amends and supersedes the previous 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. Beginning on the first calendar year after the commencement of Master Agreement and each calendar year thereafter, these fees are adjusted upwards by 3%, subject to further annual increases to reflect material unforeseen costs of providing the management services. The amount of such further-increase is to be agreed between the Partnership and the Manager, which amount will be reviewed and approved by the Partnership’s Conflicts Committee. Under the terms of the Master Agreement, the Manager charges the Partnership for any additional capital expenditures, financial costs, operating expenses and general and administrative expenses that are not covered by the management fees. The Master Agreement initially terminates on December 31, 2030 and upon expiration, automatically extends in additional five-year increments if notice of termination is not previously provided by the Partnership’s vessel-owning subsidiaries. In the event the Master Agreement is terminated for any reason other than default by the Manager, the applicable management fee under the Master Agreement shall continue to be payable for a further period of six months as from the effective date of such termination. The Manager may also terminate the Master Agreement in the event that the Partnership undergoes a change of control, in which case, subject to and pursuant to the terms of the Master Agreement, the Partnership would be required to pay to the Manager an amount equal to the net present value calculated at a discount rate of 5% per annum of the total aggregate management fees payable from the date of such termination to June 30th in the tenth year following the date of termination based on the number of Vessels managed at the date of termination (as contemplated under the Master Agreement). During the years ended December 31, 2023, 2022 and 2021, each vessel was charged a daily management fee of $2.9, $2.8 and $2.8, respectively. During the years ended December 31, 2023, 2022 and 2021, management fees under the Master Agreement and the previous vessel Management Agreements amounted to $6,389, $6,203 and $6,023 respectively, and are separately reflected in the accompanying consolidated statements of income. The Master Agreement and the previous Management Agreements also provide for a commission of 1.25% over charter-hire agreements arranged by the Manager. During the years ended December 31, 2023, 2022 and 2021, charter hire commissions under the Management Agreements amounted to $1,860, $1,632 and $1,718, respectively, and are included in Voyage expenses-related party in the accompanying consolidated statements of income. The Master Agreement and the previous Management Agreements also provide for an advance equal to three months daily management fee. In the case of termination of the Master Agreement prior to its ten year term, by any reason other than Manager’s default, the advance is not refundable. Such advances as of December 31, 2023 and 2022, 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, 2023 and 2022, an amount of $615 and $836 was due to the Manager in relation to these operating expenses respectively. 3. (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 could be drawn and be prepaid in whole or in part at any time during the life of the facility, which ended in November 2023. No amounts had been drawn under the respective facility as of December 31, 2023 and 2022. (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 Optional Vessels (as defined in the Omnibus Agreement), (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 Optional Vessels that were not exercised, have 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 €538,000 per annum (or $581 on the basis of an annual average Euro/US Dollar exchange rate of €1.0000/ $1.0795 (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 its Manager. During the years ended December 31, 2023, 2022 and 2021, 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, 2023 | |
Vessels, net. | |
Vessels, net | 4. The amounts in the accompanying consolidated balance sheets are analyzed as follows: Vessel Accumulated Net Book Cost Depreciation Value Balance December 31, 2021 $ 1,167,909 $ (314,719) $ 853,190 Additions 3,721 — 3,721 Depreciation — (31,806) (31,806) Balance December 31, 2022 $ 1,171,630 $ (346,525) $ 825,105 Additions 4,204 — 4,204 Depreciation — (31,946) (31,946) Balance December 31, 2023 $ 1,175,834 $ (378,471) $ 797,363 During both years ended December 31, 2023 and 2022, the Partnership installed a ballast water treatment system (“BWTS”), on six of its vessels. The cost of the BWTS in the year ended December 31, 2023 and 2022, amounted to $4,204 and $3,721, respectively. The cost of the BWTS was accounted as major improvement and was capitalized to vessels’ cost and will be depreciated over the remaining useful life of each vessel. Amounts paid for the additions are included in “Ballast water treatment system installation” under “Cash flows used in investing activities” in the consolidated statements of cash flows. As of December 31, 2023, all vessels comprising the Partnership’s fleet were first priority mortgaged as collateral to secure the $675 Million Credit Facility, further discussed in Note 5. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt. | |
Long-Term Debt | 5. The amounts shown in the accompanying consolidated balance sheets are analyzed as follows: Year Ended December 31, Debt instruments Borrowers-Issuers 2023 2022 $675 Million Credit Facility Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd. 420,642 499,912 Total debt $ 420,642 $ 499,912 Less deferred financing fees (1,058) (2,879) Total debt, net of deferred finance costs $ 419,584 $ 497,033 Less current portion, net of deferred financing fees $ (419,584) $ (46,252) Long-term debt, net of current portion and deferred financing fees $ — $ 450,781 5. $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 is secured by, among other things, first priority mortgages on the six LNG vessels in the Partnership’s fleet, and is repayable over five years in 20 consecutive quarterly payments plus a balloon payment in the fifth year. Since its inception and until June 28, 2023, the $675 Million Credit Facility bore interest at U.S. LIBOR plus 3.00% margin. Effective June 28, 2023 the $675 Million Credit Facility bears interest at U.S. SOFR plus 3.00% margin. The $675 Million Credit Facility contained 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. The $675 Million Credit Facility also contains covenants that require the Partnership to: ● prevent the direct or indirect use of any of its mortgaged vessels by, or for the benefit of, any Prohibited Person or any person owned or controlled by any Prohibited Person in accordance with country-wide or territory wide Sanctions; ● procure that no proceeds, funds or benefit from any activity or dealing with or involving a Prohibited Person will be used in discharging any obligation due to its lenders; ● enter into an approved time charter commitment following the cancellation, rescission, frustration or withdrawal from the original charter party, if a vessel is withdrawn from service under a time charter before the time charter’s scheduled expiration, which in the opinion of the Agent of the $675 Million Credit Facility will be under not less favorable terms to the Partnership and the Lenders than those of the original charter party. 5. On April 6, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Amsterdam Trade Bank NV (“ATB”) as a Specially Designated National (“SDN”) pursuant to Executive Order 14024. ATB was among several lenders to the Partnerships’ $675 Million Credit Facility. On April 22, 2022, ATB was declared bankrupt by the District Court of Amsterdam whereby the court appointed certain bankruptcy trustees (“Bankruptcy Trustees”). On July 12, 2022 the Department of the Treasury (Washington, D.C. 20220) issued License No. RUSSIA-EO14024 2022 921484 1 to the Bankruptcy Trustees which authorized the Bankruptcy Trustees to engage in all transactions ordinarily incident and necessary to the wind down of transactions with ATB. (“Specific License”). On October 11, 2022, and pursuant to the Specific License, the Partnership and all Lenders of the $675 Million Credit Facility (including the Bankruptcy Trustees on behalf of ATB) entered into a Supplemental Agreement to the $675 Million Credit Facility and a Deed of Retirement. Pursuant to their terms, among other things: (i) the Partnership made a voluntary prepayment of $18,730 , which was effected on October 12, 2022 and applied in prepayment of the entire participation of ATB to the $675 Million Credit Facility, including all principal, interest, and costs owing by the Partnership as borrower to ATB; (ii) the principal amount of $2,195 due to ATB that was not paid, was waived and forgiven; (iii) ATB was retired as Arranger and as Lender under the $675 Million Credit Facility; (iv) an amount equal to the prepayment amount was released from the Cash Collateral Account in order to make the prepayment to ATB referred to above; and (v) the Agent will apply to the relevant Sanctions Authority in the United States for the return to the Partnership of the amount which was paid by the Partnership to the Agent between March 2022 and September 2022 in relation to the principal and interest repayments for ATB and which are currently blocked by the Agent due to the application of Sanctions. On the date of repayment, the Partnership recognized a gain on debt extinguishment of $2,072 in the Consolidated Statements of Income according to the debt extinguishment guidance of ASC 470-50 “Debt Modifications and Extinguishments.” The gain on debt extinguishment of $2,072 resulted from: a) the gain in relation to the principal amount of $2,195 which was waived and forgiven further to the Deed of Retirement, as mentioned above, and b) the write-off of the amount of $123 of unamortized debt discounts attributable to the debt of ATB. The amount of $1,789 which was paid by the Partnership to the Agent between March 2022 and September 2022 in relation to the principal and interest repayments for ATB (“Blocked Funds”) and which is currently blocked by the Agent due to the application of Sanctions, is included in Other receivables, non- current in the Consolidated Balance Sheets. The Partnership considers the Blocked Funds to be recoverable following the issuance of the license by OFAC for the release of the Blocked Funds by the Agent. On March 27, 2023, the Partnership obtained approval from all Lenders of the $675 Million Credit Facility for the following: (i) to make a voluntary prepayment of $31.3 million, which was effected on March 27, 2023 , following the release of the funds standing to the credit of the Cash Collateral Account, which was presented as Non- current Restricted Cash in the Consolidated Balance Sheet as of December 31, 2022. This amount was applied in inverse order of maturity of the $675 Million Credit Facility by reducing the balloon payment; and (ii) the removal of the requirement for the maintenance of $31.3 million in the Cash Collateral Account. On the date of prepayment of the $31.3 million, the Partnership recognized a loss on debt extinguishment of $154 in the Consolidated Statements of Income according to the debt extinguishment guidance of ASC 470-50 “Debt Modifications and Extinguishments”. The loss on debt extinguishment of $154 resulted from: the write-off of the unamortized debt discounts attributable to the portion of the $675 Million Credit Facility that was extinguished. On June 26, 2023, the Partnership and all Lenders of the $675 Million Credit Facility entered into a Supplemental Agreement to the $675 Million Credit Facility (“the Second supplemental agreement”). Pursuant to its terms, among other things: 5. (i) the abovementioned prepayment was incorporated in the security documents; and (ii) the rate of interest was amended in order to reflect the transition to a risk-free rate. As of December 31, 2023, the Partnership was in compliance with all financial and non-financial covenants prescribed in its $675 Million Credit Facility. As also discussed in Note 1, currently imposed sanctions due to the Russian conflicts with Ukraine, do not affect the Partnership’s compliance with terms imposed by its $675 Million Credit Facility. The annual principal payments for the Partnership’s outstanding $675 Million Credit Facility as at December 31, 2023, required to be made after the balance sheet date were as follows: Year ending December 31, Amount 2024 420,642 Total long-term debt $ 420,642 The weighted average interest rate on the Partnership’s long-term debt for the years ended December 31, 2023, 2022 and 2021, was 8.07%, 4.65% and 3.1%, respectively. Total interest incurred on long-term debt for the years ended December 31, 2023, 2022 and 2021, amounted to $37,387, $25,661 and $18,762, respectively, and is included in Interest and finance costs (Note 10) in the accompanying consolidated statements of income. In order to finance the repayment of the remaining amount outstanding under the $675 Million Credit Facility, the Partnership has signed a term sheet with China Development Bank Financial Leasing Co. Ltd. (“CDBL”) for the sale and leaseback arrangement of four of its’ six LNG carriers in an amount of up to $345.0 million (Note 13 c). The financing has received counterparty credit approval and is subject to the execution of definitive documentation and the satisfaction of customary closing conditions. The transaction is expected to close in the second quarter of 2024. The Partnership intends to use the proceeds from this new financing, together with other sources of liquidity, to fully repay the $675 Million Credit Facility that is scheduled to mature in September 2024. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 6. 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 and other receivables, non-current, 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 of 7.1584% , is $832 as of December 31, 2023, compared to their 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. The fair value of the $675 Million Credit Facility approximates its recorded value, due to its variable interest rates. 6. Fair Value Measurements (continued): ● Derivative financial instrument : Derivative instruments are recorded at their fair value on a recurring basis. These fair values are determined through Level 2 inputs of the fair value hierarchy, which are derived principally from interest rates, yield curves and other items that allow values 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, 2023 December 31, 2022 Interest rate swaps $ 15,631 $ 34,877 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7. (a) Long-term leases: The Partnership employs its vessels under time charter contracts. Certain of its time charters provide for variable lease payments, escalating lease payments, charterers’ options to extend the lease terms, termination clauses and charterers’ options to purchase the underlying assets. The Partnership, in order to calculate future minimum contracted lease payments, has assessed all the relevant factors that create an economic incentive for the lessee to be reasonably certain to exercise lease renewal, termination or purchase options. As at December 31, 2023, two of the Partnership’s time charters contain escalating lease payments and two of its time charters contain both fixed lease and variable lease payments. The variable lease payments relate to services and executory costs (the “Opex Lease Element”). The Opex Lease Element is determined on a cost pass through basis on the vessel’s actual operating expenses for each applicable year. Under time charters, the vessels are employed for a specific period of time in accordance with the terms of each agreement. Normally, the charterer has the option to redeliver the vessel to the owner in a period that varies a few days more or less from the contractual termination date. For certain of its time charters, the Partnership has provided to its charterers, the option to extend the lease term for additional periods under the same or different terms. The options are exercised close to the original termination dates. 7. Specifically, as at December 31, 2023 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, 2023, gross of brokerage commissions, without taking into consideration any assumed off-hire days (including those arising out of periodical class survey requirements), is as analyzed below: Year ending December 31, Amount 2024 146,043 2025 141,818 2026 143,415 2027 144,252 2028 and thereafter 449,443 Total $ 1,024,971 (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. (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 the Master Agreement. a) For the commercial services provided under the Master Agreement, the Partnership pays a commission of 1.25% over the charter-hire revenues arranged by the Manager, which will survive the termination of the agreement until the termination of each charter party in force at such time. The estimated commission payable to the Manager over the minimum contractual charter revenues, discussed under (a) above, is $12,812 . b) Management fees for the period from January 1, 2024 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 $50,465 . |
Partners' Equity
Partners' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Partners' Equity | |
Partners' Equity | 8. 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, 2023, the Partnership had 36,802,247 common units, 15,595,000 of which are owned by the Sponsor, 3,000,000 Series A Preferred Units, 2,200,000 Series B Preferred Units and 35,526 general partner units issued and outstanding. Common and General Partner unit distribution provisions: The Partnership pays distributions in the following manner: ● first , 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until the distributed amount in respect of each common unit equals the minimum quarterly distribution; and ● second , 100% to the holders of common units and to the General Partner in accordance with their relative percentage interests, until each unit has received an aggregate distribution of a specified dollar amount. The percentage allocations of available cash from operating surplus among the common unitholders, the General Partner and the holders of the incentive distribution rights up to the various target distribution levels are illustrated below. The percentage interests shown for the common unitholders, the General Partner and the holders of the incentive distribution rights for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests shown for our General Partner include its 0.1% General Partner interest only and assumes that our General Partner has contributed any capital necessary to maintain its 0.1% General Partner interest. Under the Limited Partnership Agreement, the holder of the incentive distribution rights in the Partnership, which is currently the General Partner, has the right to receive an increasing percentage of cash distributions after the first target distribution level. Total Quarterly Distribution Target General Holders Amount Unitholders Partner of IDRs Minimum Quarterly Distribution $0.365 99.9 % 0.1 % 0.0 % First Target Distribution up to $0.420 99.9 % 0.1 % 0.0 % Second Target Distribution above $0.420 up to $0.456 85.0 % 0.1 % 14.9 % Third Target Distribution Above $0.456 up to $0.548 75.0 % 0.1 % 24.9 % Thereafter above $0.548 50.0 % 0.1 % 49.9 % 8. Partners’ Equity (continued): 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, 2023 and 2022. 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 the Term Secured Overnight Financing Rate for the applicable three month tenor published by the Chicago Mercantile Exchange plus the Credit Adjusted Three-Month CME Term SOFR plus a spread of 5.593% per annum of the stated liquidation preference per unit. At any time on or after November 22, 2023, the Series B Preferred Units may be redeemed, in whole or in part, at the Partnership’s option, out of amounts available for such purpose, at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. 8. Partners’ Equity (continued): 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: No quarterly cash distributions to Common unitholders were made with respect to fiscal year 2023 and 2022. Series A Preferred unit distributions: On January 20, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from November 12, 2022 to February 11, 2023. The cash distribution was paid on February 13, 2023, to all Series A preferred unitholders of record as of February 6, 2023. On April 20, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from February 12, 2023 to May 11, 2023. The cash distribution was paid on May 12, 2023, to all Series A preferred unitholders of record as of May 5, 2023. On July 21, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from May 12, 2023 to August 11, 2023. The cash distribution was paid on August 14, 2023, to all Series A preferred unitholders of record as of August 7, 2023. On November 2, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.5625 per unit on its Series A Preferred Units for the period from August 12, 2023 to November 11, 2023. The cash distribution was paid on November 13, 2023, to all Series A preferred unitholders of record as of November 6, 2023. Series B Preferred unit distributions: On January 31, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from November 22, 2022 to February 21, 2023. The cash distribution was paid on February 22, 2023, to all Series B preferred unitholders of record as of February 15, 2023. 8. Series B Preferred unit distributions: (continued) On April 27, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from February 22, 2023 to May 21, 2023. The cash distribution was paid on May 22, 2023, to all Series B preferred unitholders of record as of May 15, 2023. On July 31, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from May 22, 2023 to August 21, 2023. The cash distribution was paid on August 22, 2023, to all Series B preferred unitholders of record as of August 15, 2023. On November 2, 2023, the Partnership’s Board of Directors declared a cash distribution of $0.546875 per unit on its Series B Preferred Units for the period from August 22, 2023 to November 21, 2023. The cash distribution was paid on November 22, 2023, to all Series B preferred unitholders of record as of November 15, 2023. General Partner Distributions: During all years ended December 31, 2023, 2022 and 2021, the Partnership paid to its General Partner and holder of the incentive distribution rights in the Partnership an amount of nil. 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, 2021, the Partnership issued and sold 1,189,667 of common units resulting in net proceeds of $3.3 million under the A&R Sales Agreement. No common units were sold under the A&R Sales Agreement during the year ended December 31, 2023 and 2022. |
Earnings_(Loss) per Unit
Earnings/(Loss) per Unit | 12 Months Ended |
Dec. 31, 2023 | |
Earnings/(Loss) per Unit | |
Earnings/(Loss) per Unit | 9. 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 8 above. Where distributions relating to the period are in excess of earnings, the deficit is also allocated according to the cash distribution model. The sum of the distributed amounts and the allocation of the undistributed earnings or deficit to each class of unitholders is divided by the weighted average number of units outstanding during the period. Diluted earnings per unit, if applicable, reflects the potential dilution that could occur if potentially dilutive instruments were exercised, resulting in the issuance of additional units that would then share in the Partnership’s net earnings. The Partnership had no dilutive instruments in the years ended December 31, 2023, 2022 and 2021. 9. The calculations of the basic and diluted earnings per common unit are presented below: Year ended December 31, 2023 2022 2021 Partnership’s Net income $ 35,872 $ 54,010 $ 53,260 Less: Net Income attributable to preferred unitholders 11,563 11,563 11,563 General Partner’s interest in Net Income 24 42 41 Net income/(loss) attributable to common unitholders $ 24,285 $ 42,405 $ 41,656 Weighted average number of common units outstanding, basic and diluted 36,802,247 36,802,247 36,504,120 Earnings/ (Losses) per common unit, basic and diluted $ 0.66 $ 1.15 $ 1.14 |
Interest and Finance Costs
Interest and Finance Costs | 12 Months Ended |
Dec. 31, 2023 | |
Interest and Finance Costs | |
Interest and Finance Costs | 10. The amounts in the accompanying consolidated statements of income are analyzed as follows: Year ended December 31, 2023 2022 2021 Interest expense (Note 5) $ 37,387 $ 25,661 $ 18,762 Amortization of deferred financing fees 1,667 2,032 2,285 Other 156 218 373 Total $ 39,210 $ 27,911 $ 21,420 |
Derivative financial instrument
Derivative financial instrument | 12 Months Ended |
Dec. 31, 2023 | |
Derivative financial instrument | |
Derivative financial instrument | 11. On May 7, 2020, the Partnership entered into a floating to fixed interest rate swap transaction 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. On June 21, 2023 the Partnership signed an agreement with its counterparty for the replacement of the abovementioned fixed 3-month LIBOR rate with the fixed 3-month SOFR rate due to the discontinuation of the LIBOR. As of December 31, 2023 and 2022, the outstanding notional amount of Partnership’s interest rate swap was $471.0 million and $519.0 million, respectively. The fair value of this interest rate swap outstanding at December 31, 2023 and 2022 amounted to an asset of $15,631 and $34,877 (Note 6), respectively, and is included in Derivative financial instrument in accompanying consolidated balance sheet as presented in the table below. As of December 31, 2023, 2022 and 2021, the Partnership recognized a gain on derivative financial instrument of $5.3 million, $33.7 million and $10.1 million respectively, which is included in Gain on derivative financial instrument in the accompanying consolidated statements of income as presented in the table below. 11. The realized gain/ (loss) on non-hedging interest rate swaps included in Gain on derivative financial instrument which is presented in the Consolidated Statements of Income, amounted to a gain of $24.6 million and $7.4 million for the year ended December 31, 2023, 2022, respectively, and a loss of $1.4 million for the year ended December 31, 2021. Tabular Disclosure of Derivatives Location Derivatives are recorded in the balance sheet on a net basis by counterparty when a legal right of setoff exists. The following tables present information with respect to the fair values of the derivative instrument reflected in the balance sheet on a gross basis by transaction. The tables also present information with respect to gains on derivative positions reflected in the Statement of Comprehensive Income. Derivative Instruments not designated as hedging instruments – Balance Sheet Location 2023 2022 Derivative Balance Sheet Location Assets Liabilities Assets Liabilities Interest rate swap Derivative financial Instruments, Current $ 15,631 — $ 22,544 — Interest rate swap Derivative financial Instruments, non- Current — — 12,333 — Total $ 15,631 — $ 34,877 — Derivatives Instruments not designated as Hedging Instruments – Net effect on the Consolidated Statements of Comprehensive Income Net Realized and Unrealized Gain Recognized on Statement of Amount Derivative Comprehensive Income Location 2023 2022 2021 Interest rate swap Gain on derivative instruments $ 5,267 $ 33,655 10,104 Total $ 5,267 $ 33,655 10,104 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Taxes | |
Taxes | 12. 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, 2023, 2022 and 2021, amounted $432, $338 and $317, respectively and are included in Vessel operating expenses in the accompanying consolidated statements of income. 12. 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 2023, 2022 and 2021 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 2023, 2022 and 2021, the Partnership would be subject to U.S. federal income tax of approximately $10, $3 and 235, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | 13. (a) Quarterly Series A Preferred unit cash distribution: On January 19, 2024 , 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, 2023 to February 11, 2024. The cash distribution was paid on February 12, 2024 , to all Series A preferred unitholders of record as of February 5, 2024 . (b) Quarterly Series B Preferred unit cash distribution: On January 31, 2024 , the Partnership’s Board of Directors declared a cash distribution of $0.71764025 per unit on its Series B Preferred Units for the period from November 22, 2023 to February 21, 2024. The cash distribution was paid on February 22, 2024 , to all Series B preferred unitholders of record as of February 14, 2024 . (c) Term Sheet for New Lease Financing: On March 14, 2024, the Partnership entered into a term sheet with China Development Bank Financial Leasing Co. Ltd. (“CDBL”) setting forth indicative terms and conditions for a sale and leaseback arrangement for four of its vessels, the OB River, the Clean Energy, the Amur River, and the Arctic Aurora in an amount up to $345,000 (the “Lease Financing”). According to the agreed terms, the Partnership will sell and charter back on a bareboat basis the four vessels. At the end of the bareboat charter period, the Partnership will have the obligation to repurchase the vessels at a predetermined price. The Lease Financing is subject to the execution of definitive documentation and the satisfaction of customary closing conditions. The Partnership intends to use the proceeds from the Lease Financing, together with other sources of liquidity, to fully repay the $675 Million Credit Facility, which matures in September 2024. 13. (d) Receipt of Insurance Proceeds: On April 2, 2024, the Partnership received the amount of $2,769 for the settlement of the claim, from the hull and machinery and loss of hire insurance, net of commissions and adjusters’ fees, relating to certain damage sustained by the Clean Energy . The provision of $2,881 for the abovementioned claim had been presented in Other Income in the accompanying consolidated statements of income as of December 31, 2023. (e) Quarterly Series A Preferred unit cash distribution: On April 21, 2024, 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, 2024 to May 11, 2024. The cash distribution will be paid on May 13, 2024 , to all Series A preferred unitholders of record as of May 6, 2024 . |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021, no such interests existed. |
Use of Estimates | 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, 2023, 2022 and 2021, 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 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 | 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, 2023 and 2022, was nil . |
Inventories | (h) Inventories: Inventories consist of lubricants which are stated at the lower of cost or net realizable value. 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. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. 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 assesses its insurance claim balances for credit losses in accordance with ASC 326. No allowance was recorded on insurance claims as of December 31, 2023 and 2022. |
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. The Partnership currently uses a scrap rate estimate of $0.500 per lightweight ton per LNG carrier. 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, 2023, 2022 and 2021, the Partnership incurred no impairment loss. |
Accounting for Special Survey and Dry-Docking Costs | (l) Accounting for Special Survey and Dry-Docking Costs: The Partnership follows the direct expense method of accounting for dry-docking and special survey costs, 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 | (m) Financing Costs: “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 are expensed as interest and finance costs in the period the repayment or extinguishment is made and included in the determination of gain or loss on debt extinguishment. Loan commitment fees are expensed as incurred. |
Concentration of Credit Risk | (n) 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, 2023, 2022 and 2021, charterers that individually accounted for more than 10% of the Partnership’s revenues were as follows: Charterer 2023 2022 2021 A 41 % 43 % 45 % B 43 % 41 % 39 % C 16 % 16 % 16 % Total 100 % 100 % 100 % The maximum aggregate amount of loss due to credit risk, that the Partnership would have incurred if the aforementioned charterers failed completely to perform according to the terms of their respective charter parties, amounted to $709 and $67 as of December 31, 2023 and 2022, respectively. |
Accounting for Revenues and Related Expenses | (o) 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. 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 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. In case that a change in the terms and conditions of a time charter agreement results in a change in the scope of or the consideration for a lease (for example, a change to the terms and conditions of the contract that adds or terminates the right to use one or more vessels or extends or shortens the contractual lease term), the lease is considered modified. The Partnership assesses whether the lease modification should be accounted as a separate contract or not based as per ASC 842-10-25-8. Specifically, the Partnership accounts for a modification to a lease as a separate contract when both of the following conditions are present: a. The modification grants the charterer an additional right of use not included in the original lease (for example, the right to use an additional asset); b. The lease payments increase commensurate with the standalone price for the additional right of use, adjusted for the circumstances of the particular time charter agreement. In case any of the above conditions are not met, the Partnership does not account for the modified lease as a separate contract. Specifically, if the original lease and the modified lease are both classified as operating leases (i.e., no change to lease classification), the Partnership recognizes lease payments to be made under the modified lease, adjusted for any prepaid or accrued hire from the original lease, generally on a straight-line basis over the new lease term (i.e., the remaining lease term from the original lease at the date of modification, adjusted for the additional or terminated periods). Any initial direct costs incurred in connection with the modification are recognized as an expense over the new lease term. 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. 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. 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 all years ended December 31, 2023, 2022 and 2021, 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. Revenues from contracts with customers include compensation from the charterer for services regarding the special survey of the vessels, as per the terms of the charter party agreement and are recognized in accordance with ASC 606, as the performance obligation is satisfied. During the years ended December 31, 2023, 2022 and 2021, revenues from contract with customers were $11,602, nil and nil, respectively. |
Repairs and Maintenance | (p) 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 | (q) Earnings/ (Loss) Per Unit : As of December 31, 2023, 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, 2023. |
Segment Reporting | (r) 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 | (s) 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 | (t) Commitments and Contingencies : Commitments are recognized when the Partnership has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will 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 7). |
Accounting for Financial Instruments | (u) Accounting for Financial Instruments: The principal financial assets of the Partnership consist of cash and cash equivalents, restricted cash, amounts due from related parties, other receivable, non- current, trade accounts receivable and a derivative financial instrument (interest rate swap). The principal financial liabilities of the Partnership consist of trade and other accounts payable, accrued liabilities, long-term debt, and amounts due to related parties. 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 | (v) 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 Gain/ (Loss) on derivative financial instrument (Note 11). 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 Gain/ (Loss) on derivative financial instrument and any related cash settlements are classified under financing activities in the statement of cash flows. |
Going concern | (w) Going concern: The Partnership’s policy is in accordance with ASC 205-40, “Presentation of Financial Statements-Going Concern.” ASC 205-40 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 | Recent Accounting Pronouncements Adopted Reference Rate Reform (Topic 848): Recent Accounting Pronouncements Not Yet Adopted In October 2023, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) No. 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”. The amendments in this Update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. The effective date for each amendment of the ASU 2023-06 will be, for entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in ASU 2023-06 should be applied prospectively. The Company evaluated the impact of this ASU on its consolidated financial Statements and determined that there is no impact as the disclosure improvements required by the ASU amendments are already required by the SEC’s Regulation S-X and Regulation S-K. Furthermore, in November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures (or ASU 2023-07). ASU 2023-07 introduced updates for how significant segment expense categories and amounts for each reportable segment are disclosed. A significant segment expense is defined as an expense that is: a) Significant to the segment, b) Regularly provided to or easily computed from information regularly provided to the chief operating decision maker, and c) Included in the reported measure of segment profit or loss. The additional disclosure for segmented reporting is intended to provide additional information to financial statement users as now expenses such as direct expenses, shared expenses, allocated corporate overhead, or significant interest expense need to be disaggregated and reported separately for each segment. ASU 2023-07 also requires that all segment-related disclosures required by FASB Topic 280 (Segment Reporting) be made also by entities that have a single reportable segment. ASU 2023-07 is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, and early adoption is permitted. Upon adoption, a public entity will apply the ASU as of the beginning of the earliest period presented. The Partnership will adopt this standard starting with its annual financial statements as at and for the year ended December 31, 2024. The adoption of ASU 2023-07 is not expected to have a significant impact on the Partnership’s consolidated financial statements and related disclosures. |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation and General Information | |
Schedule of vessel owning subsidiaries | Vessel Owning Subsidiaries: Country of incorporation/ Delivery date Delivery date to Cbm Company Name formation Vessel Name from shipyard Partnership Capacity Pegasus Shipholding S.A. (“Pegasus”) Marshall Islands Clean Energy March 2007 October 2013 149,700 Lance Shipping S.A. (“Lance”) Marshall Islands Ob River July 2007 October 2013 149,700 Seacrown Maritime Ltd. (“Seacrown”) Marshall Islands Amur River January 2008 October 2013 149,700 Fareastern Shipping Limited (“Fareastern”) Malta Arctic Aurora July 2013 June 2014 155,000 Navajo Marine Limited (“Navajo”) Marshall Islands Yenisei River July 2013 September 2014 155,000 Solana Holding Ltd. (“Solana”) Marshall Islands Lena River October 2013 December 2015 155,000 |
Schedule of non-vessel owning subsidiaries | Non-Vessel Owning Subsidiaries: Company Name Country of Purpose of incorporation Dynagas Equity Holding Limited (“Dynagas Equity”) Marshall Islands Holding company that owns all of the outstanding shares of Arctic LNG Carriers Ltd. (“Arctic LNG”). Dynagas Operating GP LLC (“Dynagas Operating GP”) Marshall Islands Limited liability 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 shares 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 Carriers Ltd. Marshall Islands Wholly owned subsidiary of the Partnership which is directly wholly owned by Dynagas Equity and which owns all of the issued and outstanding shares 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, 2023 | |
Significant Accounting Policies and Recent Accounting Pronouncements | |
Schedule of partnership's revenues | Charterer 2023 2022 2021 A 41 % 43 % 45 % B 43 % 41 % 39 % C 16 % 16 % 16 % Total 100 % 100 % 100 % |
Transactions with related par_2
Transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transactions with related parties | |
Schedule of transactions with related parties - condensed consolidated statements of comprehensive income | Years ended December 31, 2023 2022 2021 Included in voyage expenses – related party Charter hire commissions (a) $ 1,860 $ 1,632 $ 1,718 Included in general and administrative expenses – related party Executive services fee (d) $ 581 $ 568 $ 638 Administrative services fee (e) $ 120 $ 120 $ 120 Management fees-related party Management fees (a) $ 6,389 $ 6,203 $ 6,023 |
Schedule of transactions with related parties - balance sheet | Year ended December 31, 2023 2022 Assets: Security deposits to Manager (a) $ 1,350 $ 1,350 Total assets due from related party $ 1,350 $ 1,350 Liabilities included in Due to related party: Working capital due to Manager (a) $ 615 $ 836 Executive service charges due to Manager (d) $ 143 $ 135 Administrative service charges due to Manager (e) $ 30 $ 30 Other Partnership expenses due to Manager $ 767 $ 471 Total liabilities due to related party, current $ 1,555 $ 1,472 |
Vessels, net (Tables)
Vessels, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Vessels, net. | |
Schedule of consolidated condensed balance sheets | Vessel Accumulated Net Book Cost Depreciation Value Balance December 31, 2021 $ 1,167,909 $ (314,719) $ 853,190 Additions 3,721 — 3,721 Depreciation — (31,806) (31,806) Balance December 31, 2022 $ 1,171,630 $ (346,525) $ 825,105 Additions 4,204 — 4,204 Depreciation — (31,946) (31,946) Balance December 31, 2023 $ 1,175,834 $ (378,471) $ 797,363 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt. | |
Schedule of amounts shown in the consolidated condensed balance sheets are analyzed | Year Ended December 31, Debt instruments Borrowers-Issuers 2023 2022 $675 Million Credit Facility Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd. 420,642 499,912 Total debt $ 420,642 $ 499,912 Less deferred financing fees (1,058) (2,879) Total debt, net of deferred finance costs $ 419,584 $ 497,033 Less current portion, net of deferred financing fees $ (419,584) $ (46,252) Long-term debt, net of current portion and deferred financing fees $ — $ 450,781 |
Schedule of annual principal payments | Year ending December 31, Amount 2024 420,642 Total long-term debt $ 420,642 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Schedule of fair value of assets and liabilities by valuation technique on a recurring basis | Significant Other Observable Inputs (Level 2) Recurring measurements: December 31, 2023 December 31, 2022 Interest rate swaps $ 15,631 $ 34,877 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Schedule of the Partnership's future minimum contracted lease payments | Year ending December 31, Amount 2024 146,043 2025 141,818 2026 143,415 2027 144,252 2028 and thereafter 449,443 Total $ 1,024,971 |
Partners' Equity (Tables)
Partners' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Partners' Equity | |
Schedule of partners' equity | Total Quarterly Distribution Target General Holders Amount Unitholders Partner of IDRs Minimum Quarterly Distribution $0.365 99.9 % 0.1 % 0.0 % First Target Distribution up to $0.420 99.9 % 0.1 % 0.0 % Second Target Distribution above $0.420 up to $0.456 85.0 % 0.1 % 14.9 % Third Target Distribution Above $0.456 up to $0.548 75.0 % 0.1 % 24.9 % Thereafter above $0.548 50.0 % 0.1 % 49.9 % |
Earnings_(Loss) per Unit (Table
Earnings/(Loss) per Unit (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings/(Loss) per Unit | |
Schedule of calculations of the basic and diluted earnings per common unit | Year ended December 31, 2023 2022 2021 Partnership’s Net income $ 35,872 $ 54,010 $ 53,260 Less: Net Income attributable to preferred unitholders 11,563 11,563 11,563 General Partner’s interest in Net Income 24 42 41 Net income/(loss) attributable to common unitholders $ 24,285 $ 42,405 $ 41,656 Weighted average number of common units outstanding, basic and diluted 36,802,247 36,802,247 36,504,120 Earnings/ (Losses) per common unit, basic and diluted $ 0.66 $ 1.15 $ 1.14 |
Interest and Finance Costs (Tab
Interest and Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interest and Finance Costs | |
Schedule of unaudited interim condensed consolidated statements of comprehensive income | Year ended December 31, 2023 2022 2021 Interest expense (Note 5) $ 37,387 $ 25,661 $ 18,762 Amortization of deferred financing fees 1,667 2,032 2,285 Other 156 218 373 Total $ 39,210 $ 27,911 $ 21,420 |
Derivative financial instrume_2
Derivative financial instrument (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative financial instrument | |
Schedule of Derivative Instruments not designated as hedging instruments - Balance Sheet Location | 2023 2022 Derivative Balance Sheet Location Assets Liabilities Assets Liabilities Interest rate swap Derivative financial Instruments, Current $ 15,631 — $ 22,544 — Interest rate swap Derivative financial Instruments, non- Current — — 12,333 — Total $ 15,631 — $ 34,877 — |
Schedule of Derivatives Instruments not designated as Hedging Instruments - Net effect on the Consolidated Condensed Statements of comprehensive Income | Net Realized and Unrealized Gain Recognized on Statement of Amount Derivative Comprehensive Income Location 2023 2022 2021 Interest rate swap Gain on derivative instruments $ 5,267 $ 33,655 10,104 Total $ 5,267 $ 33,655 10,104 |
Basis of Presentation and Gen_3
Basis of Presentation and General Information - Vessel Owning Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2023 m³ | |
Pegasus Shipholding S.A. | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Vessel Name | Clean Energy |
Delivery date from shipyard | March 2007 |
Delivery date to Partnership | October 2013 |
Cbm Capacity | 149,700 |
Lance shipping S.A. | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Vessel Name | Ob River |
Delivery date from shipyard | July 2007 |
Delivery date to Partnership | October 2013 |
Cbm Capacity | 149,700 |
Seacrown Maritime Ltd | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Vessel Name | Amur River |
Delivery date from shipyard | January 2008 |
Delivery date to Partnership | October 2013 |
Cbm Capacity | 149,700 |
Fareastern Shipping Limited | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Malta |
Vessel Name | Arctic Aurora |
Delivery date from shipyard | July 2013 |
Delivery date to Partnership | June 2014 |
Cbm Capacity | 155,000 |
Navajo Marine Limited | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Vessel Name | Yenisei River |
Delivery date from shipyard | July 2013 |
Delivery date to Partnership | September 2014 |
Cbm Capacity | 155,000 |
Solana Holding Ltd. | |
Basis of Presentation and General Information | |
Country of incorporation/ formation | Marshall Islands |
Vessel Name | Lena River |
Delivery date from shipyard | October 2013 |
Delivery date to Partnership | December 2015 |
Cbm Capacity | 155,000 |
Basis of Presentation and Gen_4
Basis of Presentation and General Information - Non-Vessel Owning Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Dynagas Operating LP | |
Basis of Presentation and General Information | |
Ownership interest in subsidiary | 100% |
Basis of Presentation and Gen_5
Basis of Presentation and General Information - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Sep. 18, 2024 | Nov. 18, 2013 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 14, 2024 | Sep. 18, 2019 | |
Basis of Presentation and General Information | |||||||
Entity incorporation, date of incorporation | May 30, 2013 | ||||||
Issuance of units in public offering | 1,189,667 | ||||||
Cash and cash equivalents | $ 73,752 | $ 48,598 | $ 47,015 | ||||
Working capital deficit | 353,500 | ||||||
Debt instrument face value | $ 675,000 | ||||||
$675 Million Senior Secured Term Loan Facility ($675 Million Credit Facility) | |||||||
Basis of Presentation and General Information | |||||||
Debt instrument face value | $ 675,000 | ||||||
Dynagas Operating GP LLC | |||||||
Basis of Presentation and General Information | |||||||
General partner interest in dynagas LNG partners LP | 100% | ||||||
Dynagas Holding Ltd | |||||||
Basis of Presentation and General Information | |||||||
Ownership percentage | 42.40% | ||||||
Dynagas Operating GP LLC | |||||||
Basis of Presentation and General Information | |||||||
Ownership percentage | 100% | ||||||
Subsequent event | |||||||
Basis of Presentation and General Information | |||||||
Sale leaseback | $ 345,000 | $ 345,000 | |||||
Remaining amount outstanding | 384,600 | ||||||
Subsequent event | $675 Million Senior Secured Term Loan Facility ($675 Million Credit Facility) | |||||||
Basis of Presentation and General Information | |||||||
Debt instrument face value | $ 675,000 | $ 675,000 | |||||
$30 million sponsor facility | Dynagas Holding Ltd | |||||||
Basis of Presentation and General Information | |||||||
Line of credit facility expiration date | November 2023 | ||||||
Revolving credit facility borrowing capacity | $ 30,000 | ||||||
Customer Concentration Risk | Yamal Trade | Revenue Benchmark | |||||||
Basis of Presentation and General Information | |||||||
Percentage of time charter revenue | 43% | 41% | |||||
General Partner | Dynagas Holding Ltd | |||||||
Basis of Presentation and General Information | |||||||
General partner interest in dynagas LNG partners LP | 0.10% | ||||||
IPO | |||||||
Basis of Presentation and General Information | |||||||
Date of initial public offering (IPO) | November 18, 2013 | ||||||
IPO | Common Limited Partner I I I | |||||||
Basis of Presentation and General Information | |||||||
Issuance of units in public offering | 8,250,000 | ||||||
Shares issued, price per share | $ 18 | ||||||
IPO | Common Limited Partner I I I | Dynagas Holding Ltd | |||||||
Basis of Presentation and General Information | |||||||
Issuance of units in public offering | 4,250,000 | ||||||
Shares issued, price per share | $ 18 |
Significant Accounting Polici_4
Significant Accounting Policies and Recent Accounting Pronouncements (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Revenue, Major Customer | |||
Provision for doubtful accounts | $ 0 | $ 0 | |
Allowance on insurance claims | $ 0 | 0 | |
Estimated residual scrap rate per light-weight ton | $ / shares | $ 0.500 | ||
Property, Plant and Equipment, Useful Life | 35 years | ||
Asset Impairment Charges | $ 0 | $ 0 | $ 0 |
Vessels dry-dock or special survey period within the first 15 years of useful life | 5 years | ||
Concentration Risk, Percentage | 100% | 100% | 100% |
Trade accounts receivable | $ 709 | $ 67 | |
Amortization of contract fulfillment costs | 200 | 200 | $ 200 |
Revenues from contracts with customers | $ 11,602 | $ 0 | $ 0 |
Dilutive securities outstanding | shares | 0 | ||
Number of Reportable Segments | segment | 1 | ||
Customer Concentration Risk | Revenues | Charterer A | |||
Revenue, Major Customer | |||
Concentration Risk, Percentage | 41% | 43% | 45% |
Customer Concentration Risk | Revenues | Charterer B | |||
Revenue, Major Customer | |||
Concentration Risk, Percentage | 43% | 41% | 39% |
Customer Concentration Risk | Revenues | Charterer C | |||
Revenue, Major Customer | |||
Concentration Risk, Percentage | 16% | 16% | 16% |
Transactions with related par_3
Transactions with related parties - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Transactions with related parties | |||
Charter hire commissions | $ 1,860 | $ 1,632 | $ 1,718 |
Executive services fee | 581 | 568 | 638 |
Administrative services fee | 120 | 120 | 120 |
Management fees | $ 6,389 | $ 6,203 | $ 6,023 |
Transactions with related par_4
Transactions with related parties - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related party transaction | ||
Total assets due from related party, non-current | $ 1,350 | $ 1,350 |
Total liabilities due to related party, current | 1,555 | 1,472 |
Security deposits to Manager | ||
Related party transaction | ||
Total assets due from related party, non-current | 1,350 | 1,350 |
Total assets due from related party | ||
Related party transaction | ||
Total assets due from related party, non-current | 1,350 | 1,350 |
Working capital due to Manager | ||
Related party transaction | ||
Total liabilities due to related party, current | 615 | 836 |
Executive service charges due to Manager | ||
Related party transaction | ||
Total liabilities due to related party, current | 143 | 135 |
Administrative service charges due to Manager | ||
Related party transaction | ||
Total liabilities due to related party, current | 30 | 30 |
Other Partnership expenses due to Manager | ||
Related party transaction | ||
Total liabilities due to related party, current | $ 767 | $ 471 |
Transactions with related par_5
Transactions with related parties (Details) € in Thousands | 12 Months Ended | |||||||||||
Jan. 01, 2021 USD ($) | Nov. 18, 2018 | Nov. 14, 2018 | Mar. 21, 2014 | Nov. 18, 2013 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2013 USD ($) | Dec. 30, 2014 USD ($) | |
Related party transaction | ||||||||||||
Management fees-related party | $ 6,389,000 | $ 6,203,000 | $ 6,023,000 | |||||||||
Charter hire commissions | 1,860,000 | 1,632,000 | 1,718,000 | |||||||||
Due from related party | 1,350,000 | 1,350,000 | ||||||||||
Due to related party | 1,555,000 | 1,472,000 | ||||||||||
Annual executive services fee | $ 581,000 | 568,000 | 638,000 | |||||||||
Foreign currency exchange rate | 10.7950 | |||||||||||
Security deposits to Manager | ||||||||||||
Related party transaction | ||||||||||||
Due from related party | $ 1,350,000 | 1,350,000 | ||||||||||
Master Agreement | ||||||||||||
Related party transaction | ||||||||||||
Daily management fee | $ 2,750,000 | $ 3,167,000 | ||||||||||
Management fees annual upward percentage adjustment | 3% | 3% | ||||||||||
Administrative services days termination notice | 6 months | 6 months | ||||||||||
Related party transaction, terms and manner of settlement | 5% | 5% | ||||||||||
Management fees-related party | $ 6,389,000 | 6,203,000 | 6,023,000 | |||||||||
Charter hire commission payable to the management company | 1.25% | 1.25% | ||||||||||
Dynagas Ltd | ||||||||||||
Related party transaction | ||||||||||||
Daily management fee | $ 2,900 | 2,800 | 2,800 | $ 2.5 | ||||||||
Management fees annual upward percentage adjustment | 3% | 3% | ||||||||||
Charter hire commission payable to the management company | 1.25% | 1.25% | ||||||||||
Charter hire commissions | $ 1,860,000 | 1,632,000 | 1,718,000 | |||||||||
Dynagas Ltd | Working capital advances | ||||||||||||
Related party transaction | ||||||||||||
Due to related party | 615,000 | 836,000 | ||||||||||
$30 million sponsor facility | Dynagas Holding Ltd | ||||||||||||
Related party transaction | ||||||||||||
Revolving credit facility borrowing capacity | $ 30,000,000 | |||||||||||
Debt instrument term | 5 years | |||||||||||
Amount drawn | 0 | 0 | ||||||||||
$30 million extended sponsor facility | ||||||||||||
Related party transaction | ||||||||||||
Debt instrument term | 5 years | |||||||||||
Executive services agreement | ||||||||||||
Related party transaction | ||||||||||||
Annual executive services fee | $ 581,000 | € 538,000 | ||||||||||
Executive services agreement initial term | ||||||||||||
Related party transaction | ||||||||||||
Executive services agreement duration period | 5 years | |||||||||||
Executive services agreement automatic renewal | ||||||||||||
Related party transaction | ||||||||||||
Executive services agreement duration period | 5 years | |||||||||||
Administrative services agreement | ||||||||||||
Related party transaction | ||||||||||||
Administrative services days termination notice | 120 days | 120 days | ||||||||||
Due to related party | $ 120,000 | $ 120,000 | $ 120,000 | |||||||||
Administrative services agreement | Security deposits to Manager | Monthly fee | ||||||||||||
Related party transaction | ||||||||||||
Due to related party | $ 10,000 |
Vessels, net - Consolidated con
Vessels, net - Consolidated condensed balance sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, plant and equipment | |||
Balance beginning of period | $ 825,105 | ||
Depreciation | (31,946) | $ (31,806) | $ (31,710) |
Balance end of period | 797,363 | 825,105 | |
Vessel Cost | |||
Property, plant and equipment | |||
Balance beginning of period | 1,171,630 | 1,167,909 | |
Additions | 4,204 | 3,721 | |
Balance end of period | 1,175,834 | 1,171,630 | 1,167,909 |
Accumulated Depreciation | |||
Property, plant and equipment | |||
Balance beginning of period | (346,525) | (314,719) | |
Depreciation | (31,946) | (31,806) | |
Balance end of period | (378,471) | (346,525) | (314,719) |
Net Book Value | |||
Property, plant and equipment | |||
Balance beginning of period | 825,105 | 853,190 | |
Additions | 4,204 | 3,721 | |
Depreciation | (31,946) | (31,806) | |
Balance end of period | $ 797,363 | $ 825,105 | $ 853,190 |
Vessels, net - Additional infor
Vessels, net - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
$675 million senior secured term loan facility ($675 Million Credit Facility) | ||
Property, plant and equipment | ||
Collateral | all vessels comprising the Partnership’s fleet were first priority mortgaged as collateral | |
Ballast Water Treatment System | ||
Property, plant and equipment | ||
Property, plant and equipment, additions | $ 4,204 | $ 3,721 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities And Senior Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-Term Debt | ||
Total debt | $ 420,642 | $ 499,912 |
Less deferred financing fees | (1,058) | (2,879) |
Total debt, net of deferred finance costs | 419,584 | 497,033 |
Less current portion, net of deferred financing fees | (419,584) | (46,252) |
Long-term debt, net of current portion and deferred financing fees | 450,781 | |
$675 Million Credit Facility | Fareastern Shipping Limited, Pegasus Shipholding S.A., Lance Shipping S.A., Seacrown Maritime Ltd., Navajo Marine Limited, Solana Holding Ltd | ||
Long-Term Debt | ||
$675 Million Credit Facility | $ 420,642 | $ 499,912 |
Long-Term Debt - Principal Paym
Long-Term Debt - Principal Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-Term Debt. | ||
2024 | $ 420,642 | |
Total long-term debt | $ 420,642 | $ 499,912 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) $ in Thousands | 7 Months Ended | 12 Months Ended | ||||||||||
Jun. 28, 2023 | Oct. 30, 2019 USD ($) | Sep. 25, 2019 USD ($) | Sep. 18, 2019 USD ($) installment | Sep. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) lease | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 18, 2024 USD ($) | Mar. 14, 2024 USD ($) | Mar. 27, 2023 USD ($) | Oct. 12, 2022 USD ($) | |
Long-Term Debt | ||||||||||||
Debt instrument face value | $ 675,000 | |||||||||||
Line of credit facility, repayment installments | installment | 20 | |||||||||||
Restricted cash | $ 31,270 | |||||||||||
(Gain)/ Loss on debt extinguishment | $ 154 | $ (2,072) | ||||||||||
Weighted average interest rate | 8.07% | 4.65% | 3.10% | |||||||||
Interest incurred | $ 37,387 | $ 25,661 | $ 18,762 | |||||||||
Sale leaseback transaction, LNG carriers sold | lease | 4 | |||||||||||
The total number of LNG carriers | lease | 6 | |||||||||||
Subsequent event | ||||||||||||
Long-Term Debt | ||||||||||||
Sale leaseback | $ 345,000 | $ 345,000 | ||||||||||
$250 Million Senior Unsecured Notes due 2019 (2019 Notes) | ||||||||||||
Long-Term Debt | ||||||||||||
Amount used to repay | $ 204,600 | |||||||||||
$675 million senior secured term loan facility ($675 Million Credit Facility) | ||||||||||||
Long-Term Debt | ||||||||||||
Line of credit facility, initiation date | Sep. 18, 2019 | |||||||||||
Debt instrument face value | $ 675,000 | |||||||||||
Amount drawn | $ 675,000 | |||||||||||
Line of credit facility, prepayment date | October 12, 2022 | |||||||||||
$675 million senior secured term loan facility ($675 Million Credit Facility) | Subsequent event | ||||||||||||
Long-Term Debt | ||||||||||||
Debt instrument face value | $ 675,000 | $ 675,000 | ||||||||||
$675 million senior secured term loan facility ($675 Million Credit Facility) | Minimum | ||||||||||||
Long-Term Debt | ||||||||||||
Restricted cash | $ 50,000 | |||||||||||
$675 million senior secured term loan facility ($675 Million Credit Facility) | London Interbank Offered Rate [Member] | ||||||||||||
Long-Term Debt | ||||||||||||
Margin percentage | 3% | |||||||||||
$675 million senior secured term loan facility ($675 Million Credit Facility) | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||||||
Long-Term Debt | ||||||||||||
Margin percentage | 3% | |||||||||||
$480 Million Senior Secured Term Loan Facility | ||||||||||||
Long-Term Debt | ||||||||||||
Debt repaid | $ 470,400 | |||||||||||
Supplemental Agreement to the $675 Million Credit Facility | ||||||||||||
Long-Term Debt | ||||||||||||
Line of credit facility, initiation date | Oct. 11, 2022 | |||||||||||
Voluntary prepayment | $ 18,730 | |||||||||||
(Gain)/ Loss on debt extinguishment | $ (2,072) | |||||||||||
Principal amount waived | 2,195 | |||||||||||
Write-off of deferred financing fees | $ 123 | |||||||||||
Principal and interest repayments | $ 1,789 | |||||||||||
Lenders of $675 Million credit facility | ||||||||||||
Long-Term Debt | ||||||||||||
Line of credit facility, initiation date | Mar. 27, 2023 | |||||||||||
Line of credit facility, prepayment date | March 27, 2023 | |||||||||||
Voluntary prepayment | $ 31,300 | $ 31,300 | ||||||||||
(Gain)/ Loss on debt extinguishment | 154 | |||||||||||
Write-off of deferred financing fees | $ 154 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Recurring | Level 2 | Interest rate swaps | ||
Fair value measurements | ||
Fair value measured | $ 15,631 | $ 34,877 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Measurements | ||
Due from related parties non current fair value - determined through level 3 inputs (in percent) | 7.1584% | |
Due from related parties non current fair value - determined through level 3 inputs | $ 832 | |
Due from related party | 1,350 | $ 1,350 |
Debt instrument face value | $ 675,000 |
Commitments and Contingencies -
Commitments and Contingencies - Contracted lease payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies | |
2024 | $ 146,043 |
2025 | 141,818 |
2026 | 143,415 |
2027 | 144,252 |
2028 and thereafter | 449,443 |
Total | $ 1,024,971 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Master Agreement | |
Commitments and Contingencies | |
Charter hire commission payable to the management company | 1.25% |
Commission payable over the minimum contractual charter revenues | $ 12,812 |
Inflation rate adjustment to management fees | 3% |
Management fees | $ 50,465 |
Two Time Charter | |
Commitments and Contingencies | |
Lessor operating lease nature of lease payments | escalating |
Renewal term of time charter contract | three consecutive periods of five years |
Another Two Time Charters | |
Commitments and Contingencies | |
Lessor operating lease nature of lease payments | time charters contain both fixed lease and variable lease payments |
Partners' Equity (Details)
Partners' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Aug. 19, 2020 | Jul. 02, 2020 | Oct. 23, 2018 | Jul. 20, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Partners' Equity: | |||||||
Issuance of units in public offering | 1,189,667 | ||||||
Common unitholders - units outstanding | 36,802,247 | 36,802,247 | |||||
General partner issued | 35,526 | 35,526 | |||||
General partner outstanding | 35,526 | 35,526 | |||||
Net proceeds from issuance of common units | $ 3,407 | ||||||
Cash distributions to Common unitholders | $ 0 | $ 0 | |||||
A&R Sales Agreement | |||||||
Partners' Equity: | |||||||
Issuance of units in public offering | 0 | ||||||
Aggregate offering price | $ 30,000 | $ 30,000 | |||||
Net proceeds from issuance of common units | 3,300 | ||||||
General Partner [Member] | |||||||
Partners' Equity: | |||||||
Payments to general partner | $ 0 | $ 0 | $ 0 | ||||
Minimum Quarterly Distribution | Total Quarterly Distribution Target Amount | |||||||
Partners' Equity: | |||||||
Distribution per unit | $ 0.365 | ||||||
Sponsor [Member] | |||||||
Partners' Equity: | |||||||
Common unitholders - units issued | 15,595,000 | ||||||
Series A Preferred Stock [Member] | |||||||
Partners' Equity: | |||||||
Issuance of units in public offering | 3,000,000 | ||||||
Liquidation preference | $ 25 | ||||||
Proceeds from the offering | $ 72,300 | ||||||
Underwriting discount | 2,400 | ||||||
Offering expenses | $ 300 | ||||||
Preferred units, issued | 3,000,000 | 3,000,000 | |||||
Preferred units, outstanding | 3,000,000 | 3,000,000 | |||||
Fixed payment rate per annum | 9% | 9% | |||||
Preferred units redeemed | 0 | 0 | |||||
Redemption price | $ 25 | ||||||
Series A Preferred Stock [Member] | Distribution From November 12, 2022 to February 11, 2023 | |||||||
Partners' Equity: | |||||||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 20, 2023 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Feb. 13, 2023 | ||||||
Distribution Made To Limited And General Partner Date Record | Feb. 06, 2023 | ||||||
Series A Preferred Stock [Member] | Distribution From February 12, 2023 to May 11, 2023 | |||||||
Partners' Equity: | |||||||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 20, 2023 | ||||||
Distribution Made To Limited And General Partner Distribution Date | May 12, 2023 | ||||||
Distribution Made To Limited And General Partner Date Record | May 05, 2023 | ||||||
Series A Preferred Stock [Member] | Distribution From August 12, 2023 to November 11, 2023 | |||||||
Partners' Equity: | |||||||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Nov. 02, 2023 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Nov. 13, 2023 | ||||||
Distribution Made To Limited And General Partner Date Record | Nov. 06, 2023 | ||||||
Series A Preferred Stock [Member] | Distribution from May 12, 2023 to August 11, 2023 | |||||||
Partners' Equity: | |||||||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | July 21, 2023 | ||||||
Distribution Made To Limited And General Partner Distribution Date | August 14, 2023 | ||||||
Distribution Made To Limited And General Partner Date Record | August 7, 2023 | ||||||
Series B Preferred Stock [Member] | |||||||
Partners' Equity: | |||||||
Issuance of units in public offering | 2,200,000 | ||||||
Liquidation preference | $ 25 | ||||||
Proceeds from the offering | $ 53,000 | ||||||
Offering expenses | $ 2,000 | ||||||
Preferred units, issued | 2,200,000 | 2,200,000 | |||||
Preferred units, outstanding | 2,200,000 | 2,200,000 | |||||
Series B Preferred Stock [Member] | From November 2023 | |||||||
Partners' Equity: | |||||||
Preferred Stock Dividend Basis Spread On Variable Rate | 5.593% | ||||||
Series B Preferred Stock [Member] | Any Time On Or After November 2023 [Member] | |||||||
Partners' Equity: | |||||||
Redemption price | $ 25 | ||||||
Series B Preferred Stock [Member] | Distribution From And Issue Date To But Excluding November 2023 | |||||||
Partners' Equity: | |||||||
Fixed payment rate per annum | 8.75% | ||||||
Series B Preferred Stock [Member] | Distribution From May 22, 2023 to August 21, 2023 | |||||||
Partners' Equity: | |||||||
Distribution made to limited partner, distributions paid per unit | $ 0.546875 | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jul. 31, 2023 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Aug. 22, 2023 | ||||||
Distribution Made To Limited And General Partner Date Record | Aug. 15, 2023 | ||||||
Series B Preferred Stock [Member] | Distribution From November 22, 2022 to February 21, 2023 | |||||||
Partners' Equity: | |||||||
Distribution made to limited partner, distributions paid per unit | $ 0.546875 | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 31, 2023 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Feb. 22, 2023 | ||||||
Distribution Made To Limited And General Partner Date Record | Feb. 15, 2023 | ||||||
Series B Preferred Stock [Member] | Distribution From February 22, 2023 to May 21, 2023 | |||||||
Partners' Equity: | |||||||
Distribution made to limited partner, distributions paid per unit | $ 0.546875 | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Apr. 27, 2023 | ||||||
Distribution Made To Limited And General Partner Distribution Date | May 22, 2023 | ||||||
Distribution Made To Limited And General Partner Date Record | May 15, 2023 | ||||||
Series B Preferred Stock [Member] | Distribution From August 22, 2023 to November 21, 2023 | |||||||
Partners' Equity: | |||||||
Distribution made to limited partner, distributions paid per unit | $ 0.546875 | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Nov. 02, 2023 | ||||||
Distribution Made To Limited And General Partner Distribution Date | Nov. 22, 2023 | ||||||
Distribution Made To Limited And General Partner Date Record | Nov. 15, 2023 |
Partners' Equity - Increasing p
Partners' Equity - Increasing percentage of cash distributions (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Total Quarterly Distribution Target Amount | Minimum Quarterly Distribution | |
Partners' Equity: | |
Distribution target amount per unit | $ 0.365 |
Total Quarterly Distribution Target Amount | First Target Distribution | |
Partners' Equity: | |
Distribution target amount per unit | 0.420 |
Total Quarterly Distribution Target Amount | Second Target Distribution | Minimum | |
Partners' Equity: | |
Distribution target amount per unit | 0.420 |
Total Quarterly Distribution Target Amount | Second Target Distribution | Maximum | |
Partners' Equity: | |
Distribution target amount per unit | 0.456 |
Total Quarterly Distribution Target Amount | Third Target Distribution | Minimum | |
Partners' Equity: | |
Distribution target amount per unit | 0.456 |
Total Quarterly Distribution Target Amount | Third Target Distribution | Maximum | |
Partners' Equity: | |
Distribution target amount per unit | 0.548 |
Total Quarterly Distribution Target Amount | Thereafter Target Distribution | |
Partners' Equity: | |
Distribution target amount per unit | $ 0.548 |
Unitholders | Minimum Quarterly Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 99.90% |
Unitholders | First Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 99.90% |
Unitholders | Second Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 85% |
Unitholders | Third Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 75% |
Unitholders | Thereafter Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 50% |
General Partner [Member] | Minimum Quarterly Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
General Partner [Member] | First Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
General Partner [Member] | Second Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
General Partner [Member] | Third Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
General Partner [Member] | Thereafter Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0.10% |
Holders of IDRs | Minimum Quarterly Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0% |
Holders of IDRs | First Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 0% |
Holders of IDRs | Second Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 14.90% |
Holders of IDRs | Third Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 24.90% |
Holders of IDRs | Thereafter Target Distribution | |
Partners' Equity: | |
Percentage allocations of the additional available cash | 49.90% |
Earnings_(Loss) per Unit (Detai
Earnings/(Loss) per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings/(Loss) per Unit | |||
Partnership's Net income | $ 35,872 | $ 54,010 | $ 53,260 |
Less: | |||
Net Income attributable to preferred unitholders | 11,563 | 11,563 | 11,563 |
General Partner's interest in Net Income | 24 | 42 | 41 |
Net income/(loss) attributable to common unitholders | $ 24,285 | $ 42,405 | $ 41,656 |
Weighted average number of common units outstanding, basic | 36,802,247 | 36,802,247 | 36,504,120 |
Weighted average number of common units outstanding, diluted | 36,802,247 | 36,802,247 | 36,504,120 |
Earnings/ (Losses) per common unit, basic | $ 0.66 | $ 1.15 | $ 1.14 |
Earnings/ (Losses) per common unit, diluted | $ 0.66 | $ 1.15 | $ 1.14 |
Interest and Finance Costs (Det
Interest and Finance Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and Finance Costs | |||
Interest expense (Note 5) | $ 37,387 | $ 25,661 | $ 18,762 |
Amortization of deferred financing fees | 1,667 | 2,032 | 2,285 |
Other | 156 | 218 | 373 |
Total | $ 39,210 | $ 27,911 | $ 21,420 |
Derivative financial instrume_3
Derivative financial instrument (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 07, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative financial instrument | ||||
Gain on derivative financial instrument | $ 5,267 | $ 33,655 | $ 10,104 | |
Interest rate swap | ||||
Derivative financial instrument | ||||
Derivative notional amount | 471,000 | 519,000 | ||
Fair value of derivative asset | 15,631 | 34,877 | ||
Gain on derivative financial instrument | 5,267 | 33,655 | 10,104 | |
Gain on non-hedging interest rate swaps | $ 24,600 | $ 7,400 | ||
Loss on non-hedging interest rate swaps | $ 1,400 | |||
$675 million senior secured term loan facility ($675 Million Credit Facility) | Interest rate swap | ||||
Derivative financial instrument | ||||
Derivative inception date | Jun. 29, 2020 | |||
Derivative underlying | fixed 3-month LIBOR rate | |||
Derivative, fixed interest rate | 0.41% | |||
Derivative, maturity date | September 2024 |
Derivative financial instrume_4
Derivative financial instrument - Not designated as Hedging Instrument - Balance Sheet Location (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative financial instrument | ||
Derivative assets, Current | $ 15,631 | $ 22,544 |
Derivative Asset, Noncurrent | 12,333 | |
Interest rate swap | ||
Derivative financial instrument | ||
Derivative assets, Current | 15,631 | 22,544 |
Derivative Asset, Noncurrent | 12,333 | |
Derivative Asset, Total | $ 15,631 | $ 34,877 |
Derivative financial instrume_5
Derivative financial instrument - Not Designated as Hedging Instrument - Net effect on the Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative financial instrument | |||
Gain on derivative instruments | $ 5,267 | $ 33,655 | $ 10,104 |
Interest rate swap | |||
Derivative financial instrument | |||
Gain on derivative instruments | $ 5,267 | $ 33,655 | $ 10,104 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes | |||
Tonnage taxes for the period | $ 432 | $ 338 | $ 317 |
Potential income tax in absence of exemption | $ 10 | $ 3 | $ 235 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Apr. 21, 2024 | Apr. 02, 2024 | Jan. 31, 2024 | Jan. 19, 2024 | Dec. 31, 2023 | Mar. 14, 2024 | |
Subsequent Events | ||||||
Debt instrument face value | $ 675,000 | |||||
Provision for insurance claim | $ 2,881 | |||||
Subsequent event | ||||||
Subsequent Events | ||||||
Proceeds from insurance settlement | $ 2,769 | |||||
Subsequent event | Term sheet with China Development Bank Financial Leasing Co. Ltd. | ||||||
Subsequent Events | ||||||
Maximum Amount Under Lease Financing | $ 345,000 | |||||
Subsequent event | Quarterly Unit Cash Distribution From November 12, 2023 to February 11, 2024 | Series A Preferred | ||||||
Subsequent Events | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 19, 2024 | |||||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | |||||
Distributions per unit declared - distribution date | February 12, 2024 | |||||
Distributions per unit declared - record date | February 5, 2024 | |||||
Subsequent event | Quarterly Unit Cash Distribution From November 22, 2023 to February 21, 2024 | Series B Preferred | ||||||
Subsequent Events | ||||||
Distribution Made To Limited Partner And General Partner Announcement Date | Jan. 31, 2024 | |||||
Distribution made to limited partner, distributions paid per unit | $ 0.71764025 | |||||
Distributions per unit declared - distribution date | February 22, 2024 | |||||
Distributions per unit declared - record date | February 14, 2024 | |||||
Subsequent event | Quarterly Unit Cash Distribution From February 12, 2024 to May 11, 2024 | Series A Preferred | ||||||
Subsequent Events | ||||||
Distribution made to limited partner, distributions paid per unit | $ 0.5625 | |||||
Distributions per unit declared - distribution date | May 13, 2024 | |||||
Distributions per unit declared - record date | May 6, 2024 |