Dynagas LNG Partners (DLNG) AI Stock Analysis

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Dynagas LNG Partners

(NYSE:DLNG)

77Outperform

Dynagas LNG Partners shows strong financial performance, with efficient cash generation and profitability. Valuation metrics indicate potential undervaluation, enhancing its appeal. Despite mixed technical indicators, the company’s fundamentals support a positive outlook, contributing to a solid overall stock score.

Dynagas LNG Partners (DLNG) vs. S&P 500 (SPY)

Market Cap

$126.42M

Dividend Yield2.84%

Average Volume (3M)52.12K

Price to Earnings (P/E)3.3

Beta (1Y)0.34

Revenue Growth-2.54%

EPS Growth34.80%

CountryUS

EmployeesN/A

SectorEnergy

Sector Strength45

IndustryOil & Gas Midstream

Share Statistics

EPS (TTM)1.31

Shares Outstanding36,642,258

10 Day Avg. Volume67,375

30 Day Avg. Volume52,123

Financial Highlights & Ratios

PEG Ratio0.09

Price to Book (P/B)N/A

Price to Sales (P/S)0.90

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.00

Price Target Upside48.37% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Dynagas LNG Partners Business Overview & Revenue Model

Company DescriptionDynagas LNG Partners LP is a limited partnership that focuses on owning and operating liquefied natural gas (LNG) carriers. The company is primarily engaged in the seaborne transportation of LNG, providing a critical link between LNG production facilities and end users. Operating within the maritime and energy sectors, Dynagas LNG Partners is known for its specialized fleet of LNG carriers that are capable of operating in challenging ice-bound and sub-zero environments.

How the Company Makes MoneyDynagas LNG Partners makes money through long-term charter agreements for its fleet of LNG carriers. These charters are typically with major energy companies and are structured to provide stable and predictable cash flows over extended periods. The company receives revenue from the daily hire rates specified in these agreements, which are often fixed for the duration of the charter. Additionally, Dynagas may benefit from profit-sharing mechanisms or escalation clauses in these contracts. The company's earnings are further influenced by its ability to efficiently manage operational costs and maintain high vessel utilization rates. Significant partnerships with leading global energy companies enhance its market position and contribute to its revenue stability.

Dynagas LNG Partners Financial Statement Overview

Summary

Dynagas LNG Partners demonstrates strong financial health with robust profitability and efficient cash flow generation. The income statement shows solid margins and a minor revenue decline. The balance sheet is stable with manageable leverage, and cash flow is particularly strong, reflecting solid financial management.

Income Statement

Very Positive

Dynagas LNG Partners has shown strong financial performance with a consistent gross profit margin, notably achieving 75.64% in the latest year. Net profit margins have improved significantly from previous years, reaching 32.98%. Revenue growth has been positive over the long term, although there was a slight decline of 2.54% from 2023 to 2024. EBIT and EBITDA margins remain robust, reflecting efficient operational management.

Balance Sheet

Positive

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.66, showing a manageable level of leverage. Return on equity has improved to 10.64%, suggesting effective use of equity to generate profits. The equity ratio is healthy at 57.23%, indicating strong equity financing relative to total assets.

Cash Flow

Very Positive

Cash flow generation is strong, with a significant increase in free cash flow by 53.15% from the previous year. Operating cash flow to net income ratio is high at 1.79, indicating good cash conversion efficiency. The free cash flow to net income ratio of 1.79 also highlights a strong capacity to generate cash relative to net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
156.40M	160.48M	131.66M	137.75M	137.16M
	Gross Profit
118.31M	73.13M	54.33M	73.74M	73.54M
	EBIT
77.42M	64.71M	9.61M	64.61M	64.26M
	EBITDA
109.57M	107.24M	113.94M	106.89M	96.06M
	Net Income Common Stockholders
51.59M	35.87M	42.41M	41.66M	11.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.16M	73.75M	71.14M	47.57M	24.98M
	Total Assets
847.15M	908.91M	947.71M	965.48M	965.84M
	Total Debt
320.72M	419.58M	543.28M	561.97M	607.68M
	Net Debt
252.56M	345.83M	494.69M	514.95M	582.70M
	Total Liabilities
362.35M	460.67M	523.78M	584.00M	629.34M
	Stockholders Equity
484.80M	448.24M	423.93M	381.48M	336.50M
Cash Flow		Free Cash Flow
92.13M	60.15M	53.69M	79.59M	68.60M
	Operating Cash Flow
92.16M	64.39M	57.32M	79.59M	68.60M
	Investing Cash Flow
-27.00K	-4.24M	-3.63M	0.00	0.00
	Financing Cash Flow
-97.73M	-66.27M	-70.84M	-57.55M	-59.83M

Dynagas LNG Partners Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.37

Price Trends

50DMA

3.94

Negative

100DMA

4.38

Negative

200DMA

4.07

Negative

Market Momentum

MACD

-0.16

Positive

RSI

31.25

Neutral

STOCH

21.09

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLNG, the sentiment is Negative. The current price of 3.37 is below the 20-day moving average (MA) of 3.71, below the 50-day MA of 3.94, and below the 200-day MA of 4.07, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 31.25 is Neutral, neither overbought nor oversold. The STOCH value of 21.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLNG.

Dynagas LNG Partners Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNK	77 Outperform	$1.33B	3.32	23.93%	2.59%	-16.70%	-24.06%
DLNG	77 Outperform	$126.42M	3.29	10.37%	2.84%	-2.54%	34.80%
TK	74 Outperform	$537.16M	4.41	18.55%	―	-16.70%	-8.04%
FLNG	65 Neutral	$1.19B	10.27	14.23%	13.42%	-3.95%	-2.25%
GLNG	64 Neutral	$3.84B	75.26	2.43%	2.72%	-12.75%	―
Sector *	55 Neutral	$7.08B	3.69	-5.71%	6.15%	-1.38%	-53.90%
DK	47 Neutral	$775.80M	―	-108.21%	8.09%	-28.68%	-4373.94%

* Energy Sector Average

Performance Comparison

DLNG

Dynagas LNG Partners

3.37

0.31

10.13%

Delek US Holdings

12.14

-16.46

-57.55%

GLNG

Golar LNG

37.04

13.05

54.40%

Teekay

6.29

0.05

0.80%

TNK

Teekay Tankers

37.39

-17.18

-31.48%

FLNG

FLEX LNG

22.48

-0.24

-1.06%

Dynagas LNG Partners Earnings Call Summary

Earnings Call Date: Mar 6, 2025 | % Change Since: -13.14% | Next Earnings Date: Jun 25, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements in debt reduction and financial flexibility, with a strong charter backlog ensuring stability. However, some challenges were noted in the form of decreased operating income and potential increased costs due to interest rate swap maturity.

Highlights

Fleet Operation and Charter Backlog

All 6 LNG carriers are operating on long-term charters with international gas companies. The contracted backlog stands at approximately $1.04 billion, with an average remaining charter period of 6.4 years.

Strategic Deleveraging and Financial Flexibility

Debt levels have been significantly reduced from $675 million in September 2019 to $345 million in June 2024. The net debt-to-EBITDA ratio improved from 6.6x to 2.9x. 33% of the fleet is now debt-free.

Successful Lease Financing Agreement

Concluded a $344.9 million lease financing agreement with China Development Bank Financial Leasing for 4 LNG carriers, improving financing structure and flexibility.

Lowlights

Decrease in Operating Income

Operating income for the second quarter was $18.8 million, a 2.6% decrease from the $19.3 million during the prior quarter, attributed to revenue variation and increased expenses.

Interest Rate Swap Maturity and Increased Debt Service Costs

Realized and unrealized gains from interest rate swaps decreased, and the swap matures on September 18, 2024. Debt service per day is expected to increase by about $5,200 per day in Q4 2024.

Company Guidance

During the Q2 2024 earnings call for Dynagas LNG Partners, the company highlighted several key financial metrics and strategic moves. The net income for the quarter was reported at $10.7 million, with adjusted net income at $12.4 million, translating to an adjusted earnings per common unit of $0.25. The adjusted EBITDA for the period reached $28.6 million. Notably, the company completed a $344.9 million lease financing agreement with China Development Bank Financial Leasing, enabling them to repay a previous credit facility of $408.6 million ahead of its September 2024 maturity. The partnership has reduced its debt levels, with two of their LNG carriers now debt-free, positioning them for future growth. Revenue for the quarter was $37.6 million with an average time charter equivalent (TCE) of $67,300 per day. The company maintained a strong cash position, ending the quarter with $35.6 million in cash. Their total debt stands at $345 million, with a leverage ratio of 2.9x, a significant reduction from previous years. The fleet's contracted backlog is approximately $1.04 billion, with a robust charter profile extending up to 2034, ensuring stable income.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.