DLNG Stock Recent News

Dynagas LNG Partners reinstated dividends after refinancing debt, removing constraints on capital allocation, and maintaining strong cash flows. Q3 2024 results show $19.8M operating income and $15.1M net profit, with a net debt reduction to $280M. Preferred shares offer attractive dividends. Series A has a fixed 9% yield, while Series B offers a floating rate tied to 3M SOFR.

News for fleet renewal, share buyback program or contract extensions would spark investors' interest in common shares. Preferred units offer high yields (Series A: 8.75%, Series B: 10.98%) with secure dividend payments backed by Dynagas' strong backlog and consistent free cash flow. Key risks include an aging fleet and potential sanctions on Russian entities, but current operations remain unaffected.

Dynagas LNG has significantly reduced its debt, improving its leverage ratio from 6.6x in 2018 to 2.9x by mid-2024. The company's deleveraging strategy and lower future debt repayments enhance its flexibility, making a dividend resumption more likely. Management's recent moves, including refinancing and removing restrictive covenants, indicate a potential shift towards returning capital to shareholders.

Often priced under $5 per share, penny stocks can appear attractive to investors seeking high-risk, high-reward opportunities. These stocks typically present companies with small market capitalizations and volatile trading patterns.

Dynagas LNG Partners has not paid a dividend on its common shares since 2019, making the preferred shares more attractive. The company's financial results show robust cash flow, which is good news for preferred shareholders.

Dynagas (DLNG) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

Dynagas LNG Partners LP (DLNG) Q4 2023 Earnings Call Transcript

ATHENS, Greece, March 21, 2024 (GLOBE NEWSWIRE) -- Dynagas LNG Partners LP (NYSE: “DLNG”) (“Dynagas Partners” or the “Partnership”), an owner and operator of LNG carriers, today announced that it will release its financial results for the fourth quarter ended December 31, 2023, before market opens in New York on Thursday, March 28, 2024.

Dynagas LNG has three ships equipped with steam turbines, and the other three fitted with TFDE (triple fuel diesel-electric) propulsion. Five of the company's ships are ice class. The company has a $1.16 billion backlog. The average time charter duration is 7.2 years. DLNG has significantly reduced its debts over the last five years. The total debt/equity dropped from 218% in 2018 to 97.8% in 2024.

Dynagas LNG Partners has frustrated common unitholders by not paying dividends on its common units. The partnership's operating and financial performance remains strong, but all incoming cash is used to reduce debt, leaving common unitholders frustrated. The preferred shares of Dynagas offer a fixed 9% preferred dividend and currently yield 9.4% making them increasingly attractive to income investors.