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Dynagas LNG (DLNG)
:DLNG
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Dynagas LNG Partners
(NYSE:DLNG)
Rating:79Outperform
Price Target:
$4.00
▲(10.80%Upside)
Dynagas LNG Partners (DLNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$131.15M
Dividend Yield5.43%
Average Volume (3M)35.38K
Price to Earnings (P/E)2.6
Beta (1Y)0.23
Revenue Growth-2.37%
EPS Growth32.03%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength54
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.30
Shares Outstanding36,530,945
10 Day Avg. Volume35,374
30 Day Avg. Volume35,376
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio1.34
Enterprise Value/Market Cap2.84
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda0.87
Forecast
1Y Price Target
$5.00Price Target Upside38.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Dynagas LNG Partners Business Overview & Revenue Model
Company DescriptionDynagas LNG Partners (DLNG) is a growth-oriented limited partnership focused on owning and operating liquefied natural gas (LNG) carriers. The company is headquartered in Greece and operates within the maritime transport sector, providing seaborne transportation services of LNG worldwide. Its fleet primarily serves major energy companies, utilities, and other end-users.
How the Company Makes MoneyDynagas LNG Partners generates revenue primarily through long-term charters of its LNG carriers. The company enters into multi-year charter agreements with major energy companies and utilities, ensuring a steady stream of income. These contracts typically include fixed daily hire rates for the use of its vessels, providing predictable cash flows. Additionally, Dynagas may engage in spot market charters when vessels are not under long-term contracts, although this is usually a secondary revenue source. The company benefits from strong relationships with key players in the LNG market, contributing to its ability to secure profitable charter agreements.
Dynagas LNG Partners Earnings Call Summary
Earnings Call Date:May 27, 2025
(Q2-2024)
| % Change Since: -1.10%|
Next Earnings Date:Sep 03, 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.Q2-2024 Updates
Positive Updates
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.
Negative Updates
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.Dynagas LNG Partners Financial Statement Overview
Summary
Dynagas LNG Partners shows strong financial health with robust profitability and efficient cash flow generation. The company maintains a healthy balance sheet with manageable debt levels, and improvements in revenue and profitability metrics suggest a positive outlook. Despite a slight revenue decrease recently, the company's margins and cash flow generation remain compelling strengths.Income Statement
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.82
Very Positive
Balance Sheet
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.74
Positive
Cash Flow
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.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 157.46M | 156.40M | 160.48M | 131.66M | 137.75M | 137.16M |
| Gross Profit | 85.39M | 86.16M | 73.13M | 54.33M | 73.74M | 73.54M |
| EBITDA | 110.21M | 115.14M | 107.24M | 113.94M | 106.89M | 96.06M |
| Net Income | 53.41M | 51.59M | 35.87M | 42.41M | 41.66M | 11.21M |
Balance Sheet | ||||||
| Total Assets | 837.00M | 847.15M | 908.91M | 947.71M | 965.48M | 965.84M |
| Cash, Cash Equivalents and Short-Term Investments | 69.98M | 68.16M | 73.75M | 71.14M | 47.57M | 24.98M |
| Total Debt | 309.81M | 320.72M | 419.58M | 543.28M | 561.97M | 607.68M |
| Total Liabilities | 343.84M | 362.35M | 460.67M | 523.78M | 584.00M | 629.34M |
| Stockholders Equity | 0.00 | 484.80M | 448.24M | 423.93M | 381.48M | 336.50M |
Cash Flow | ||||||
| Free Cash Flow | 98.66M | 92.13M | 60.15M | 53.69M | 79.59M | 68.60M |
| Operating Cash Flow | 98.66M | 92.16M | 64.39M | 57.32M | 79.59M | 68.60M |
| Investing Cash Flow | 0.00 | -27.00K | -4.24M | -3.63M | 0.00 | 0.00 |
| Financing Cash Flow | -104.84M | -97.73M | -66.27M | -70.84M | -57.55M | -59.83M |
Dynagas LNG Partners Technical Analysis
Negative
3.61
Price Trends
3.60
Negative
3.69
Negative
3.99
Negative
Market Momentum
-0.01
Positive
47.69
Neutral
47.06
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 3.61 is below the 20-day moving average (MA) of 3.63, above the 50-day MA of 3.60, and below the 200-day MA of 3.99, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 47.06 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $630.88M | 5.29 | 18.55% | 26.49% | -23.02% | -38.08% | |
79 Outperform | $131.15M | 2.63 | 10.57% | 5.43% | -2.37% | 32.03% | |
77 Outperform | $1.50B | 4.64 | 18.57% | 11.55% | -21.27% | -34.25% | |
72 Outperform | $1.20B | 11.78 | 12.69% | 13.33% | -3.95% | -2.25% | |
68 Neutral | $15.14B | 9.95 | 6.38% | 5.21% | 4.16% | -67.19% | |
63 Neutral | $4.28B | 1,548.86 | 0.13% | 2.44% | -10.89% | -97.48% | |
51 Neutral | $1.41B | ― | -151.69% | 4.41% | -29.23% | -931.43% |
* Energy Sector Average
Performance Comparison
DLNG
Dynagas LNG Partners
3.59
-0.02
-0.55%
DK
Delek US Holdings
23.13
1.30
5.96%
GLNG
Golar LNG
41.49
8.86
27.15%
TK
Teekay
7.75
1.37
21.47%
TNK
Teekay Tankers
44.25
-17.95
-28.86%
FLNG
FLEX LNG
22.69
-0.67
-2.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.