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Q4 2024 Financial Results Presentation 6 March, 2025
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Forward Looking Statements and Disclaimer 1 This presentation contains certain statements that may be deemed to be“forward-lookingstatements”within the meaning of applicable federal securities laws. All statements included in this presentation which are not historical or current facts (including our financial forecast and any other statements concerning plans and objectives of management for future operations, cash flows, financial position and economic performance, or assumptions related thereto, including in particular, the likelihood of our success in developing and expanding our business) are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as“expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “projects,” “forecasts,” “may,” “should”and similar expressions are forward-looking statements. This presentation of the Dynagas LNG Partners LP (the "Partnership") also includes forecasts, projections and other predictive statements that represent the Partnership's assumptions and expectations in light of currently available information. Forecasts and projections are inherently subject to numerous risks, variables, uncertainties and other market influences which may be outside of the Partnership's control. Therefore, the actual results that the Partnership achieves may differ significantly from the projections contained in this presentation and there is no guarantee as to the accuracy of the predictive statements contained herein. The projections and forecasts contained in this presentation were not prepared in compliance with published guidelines of the U.S. Securities and Exchange Commission or the guidelines established by the American Institute of Certified Public Accountants regarding projections or forecasts. The Partnership's independent public accountants have not examined or compiled these projections or forecasts, and have not expressed an opinion or assurance with respect to these figures and accordingly assume no responsibility for them. The Partnership undertakes no obligation to update or revise this forward-looking information to reflect events or circumstances that arise after the date of this Presentation or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may materially affect the Partnership's ultimate financial results. Although the“Partnership”believes that its expectations stated in this presentation are based on reasonable assumptions, forward-looking statements involve risks and uncertainties that may cause actual future activities and results of operations to be materially different from those suggested or described in this presentation. In addition to these important factors, other important factors that, in thePartnership’sview, could cause actual results to differ materially from those discussed, expressed or implied, in the forward- looking statements include, but are not limited to, the strength of world economies and currency fluctuations, general market conditions, including fluctuations in charter rates, ownership days, and vessel values, changes in supply and demand for Liquefied Natural Gas (LNG) shipping capacity, changes in thePartnership’soperating expenses, including bunker prices, drydocking and insurance costs, the market for thePartnership’svessels, availability of financing and refinancing, changes in governmental laws, rules and regulations or actions taken by regulatory authorities, economic, regulatory, political and governmental conditions that affect the shipping and the LNG industry, potential liability from pending or future litigation, and potential costs due to environmental damage and vessel collisions, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns, instances of off-hires, the length and severity of epidemics and pandemics, including COVID-19, the impact of public health threats and outbreaks of other highly communicable diseases, the impact of the expected discontinuance of the London Interbank Offered Rate, or, LIBOR, after June 30, 2023 on any of our debt referencing LIBOR in the interest rate, the amount of cash available for distribution, and other factors; our anticipated growth strategies, thePartnership’sability to acquire new vessels from its sponsor, Dynagas Holding Ltd., or third parties, increases in costs, the potential for the exercise of purchase options or early termination of charters by thePartnership’scharterers and thePartnership’s inability to replace assets and/or long-term contracts; and changes in the ability of the Partnership to obtain additional financing, the effect of the worldwide economic slowdown; turmoil in the global financial markets; turmoil created from pandemics, epidemics and quarantines, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter hire rates and vessel values; changes in our operating expenses, including drydocking and insurance costs and bunker prices; forecasts of our ability to make cash distributions on the units or any increases or decreases in our cash distributions, our future financial condition or results of operations and our future revenues and expenses, the repayment of debt and settling of interest rate swaps, our ability to make additional (cont.)
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2 borrowings and to access debt and equity markets; planned capital expenditures and availability of capital resources to fund capital expenditures; our ability to maintain long-term relationships with major LNG traders; our ability to leverage ourSponsor’srelationships and reputation in the shipping industry; our ability to realize the expected benefits from acquisitions; our ability to maximize the use of our vessels, including the re-deployment or disposition of vessels no longer under long-term time charters; future purchase prices of newbuildings and secondhand vessels and timely deliveries of such vessels; our ability to compete successfully for future chartering and newbuilding opportunities; acceptance of a vessel by its charterer; termination dates and extensions of charters. Due to the ongoing Russian conflicts with Ukraine, the United States, the European Union, Canada and other Western countries and organizations have announced and enacted numerous sanctions against Russia to impose severe economic pressure on the Russian economy and government. The full impact of the commercial and economic consequences of the Russian conflict with Ukraine are uncertain at this time. Potential consequences of the sanctions that could impact the Partnership’sbusiness in the future include but are not limited to: (1) thePartnership’scounterparties being potentially limited by sanctions from performing under itsagreements;and (2) a general deterioration of the Russian economy. In addition, the Partnership may have greater difficulties raising capital in the future, which could potentially reduce the level of future investment into its expansion and operations. The Partnership cannot provide any assurance that any further development in sanctions, or escalation of the Ukraine situation more generally, will not have a significant impact on its business, financial condition or results of operations. In addition, unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements. Please read thePartnership’sfilings with the Securities and Exchange Commission for more information regarding these factors and the risks faced by the Partnership. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. This presentation is for informational purposes only and does not constitute an offer to sell securities of the Partnership. The Partnership expressly disclaims any intention or obligation to revise or publicly update any forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary notice to recipients. Forward Looking Statements and Disclaimer
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Financial Summary q4 2024 3 Adjusted Net Income ($m) Adjusted EBITDA ($m) ▪Improved financial performance: Increase in Adjusted EBITDA and Adjusted Net Income relative to q4 2023 primarily due to increase in cash revenues on the Arctic Aurora following its new time charter with Equinor which took effect in October 2023. ▪Increase in net income relative to q4 2023 primarily relating to the increase in voyage revenues and the decrease in vessel operating expenses, the decrease in interest and finance costs, and the decrease in interest rate swap losses, which were counterbalanced by a decrease of other income related to insurance claims for damages incurred in prior year. ▪Increase in cash breakeven primarily due to expiry of interest rate swap and exposure to floating interest rates. ▪Combined q4 daily OPEX, admin expenses and debt service per vessel per day amounted to a daily breakeven of $49,165 per day compared to a TCE of $68,408 p/d. Adjusted Net Income Bridge ($m) ( (1) Intere st Expense represents cash inte rest expense ne t of realized swap ga ins. Intere st rate swap expired on 18 t h September, 2024. (2) Excludes distributions to Serie s A and Serie s B Preferred unitholders which amounts to $5,848 per vessel per day for q4 2024. Quarter Highlights In USD thousands, except TCEq4 2024 q3 2024 q4 2023 Voyage Revenues 41,664 39,069 36,950 Operating Income 19,425 19,836 17,677 Net Income 14,079 15,054 10,462 Adjusted Net Income 14,992 14,477 10,305 Adjusted EBITDA 28,523 28,901 27,399 TCE 68,408 69,261 65,772 Cash breakeven per vessel p/d Numbers in USD per day q4 2024 q3 2024 q4 2023 OPEX 14,732 14,656 15,172 Management Fees 3,005 3,005 2,917 G&A 841 1,024 1,018 Interest Expense 10,583 2,462 5,444 Scheduled Principal Repayments 20,004 20,004 21,739 Cash breakeven per vessel p/d 49,165 41,150 46,290 (1) (2) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 q4 2023 q1 2024 q2 2024 q3 2024 q4 2024 26.5 27 27.5 28 28.5 29 29.5 q4 2023 q1 2024 q2 2024 q3 2024 q4 2024 $14.08 $0.91 $14.99 Net Income Non-cash amortization Adjusted Net Income $0 $2 $4 $6 $8 $10 $12 $14 $16
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4 Cash Flow Generation and Capital Structure ($) thousands ($) millions ▪Increase in cash of $16.1m for the quarter to $68m. ▪Q4 quarterly Distribution of $0.049 per common unit amounts to 12% of adjusted net income and 20% of free cash flow to common equity. ▪Free cash flow to common unitholders of $8.9m excluding working capital changes, including distributions to preferred unitholders. ▪Debt to total book capitalization of 32%. $323 $73 $54 $344 Senior Secured Debt Series A Preferred Units Series B Preferred Units Common Book Equity $52,021 $28,523 -$5,308 $9,240 -$11,042 -$5,031 -$247 $68,156 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000
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0 10 20 30 40 50 60 70 80 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 5 Debt Highlights SCHEDULED DEBT AMORTIZATION DEBT EVOLUTION ($) mill ions $723 $663 $615 $567 $500 $421 $323 $279 $235 $190 $146 $78 $66 $53 $41 $28 $0 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 Debt Outst. EOY (USDm) ▪Debt Outstanding: $323m on four LNG carriers, with two vessels debt-free. ▪Financial leverage metrics continue to strengthen with $400m in debt paid since end 2018. ▪Current lease financing with amortization of $44m per year further de-risking the balance sheet, weighted average spread of 2.19%. ▪No debt maturities until 2029. ▪$344m in common equity versus an equity market capitalization of $143m NET DEBT / EBITDA ($) mill ions (1) $68 million debt amortiza tion in 2029 includes aggregate purchase obligation prices of $39.58 million for Amur River, Ob River an d Cle an Energy. (1) Maturity of three LNG carriers Maturity of one LNG carrier 0.0 1.0 2.0 3.0 4.0 5.0 6.0 31/12/2021 31/12/2022 31/12/2023 q4 2024
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6 Fleet Profile ◼ 6 LNG carriers Average remaining charter duration ◼ ~5.9 years(1)(2) Total cbm capacity ◼ 914,100 cbm (149,700 cbm for steam turbine LNG fleet, 155,000 cbm for the tri-fuel diesel engine LNG fleet (TFDE’s)) Fleet average age ◼ ~14.6 years(1) Counterparties Fleet Total estimated contract backlog ◼ $1.0 billion(1)(2) Differentiation ◼ Fleet has the ability to trade as conventional LNG Carriers and in ice bound areas with no cost disadvantages ◼ Equinor (Norway), SEFE Marketing & Trading (Singapore), Yamal Trade (Singapore) (Total, CNPC, Silkroad Fund, Novatek), Rio Grande LNG (USA) (1) As of 6 M arch 2025 (2) Does not include cha rterer extensi on options, ba sis e arl iest deli very and redeli very da tes. The time charter contra cts with Ya mal are subject to OPEX vari ation. $0 .11 bi lli on of the revenue backl og estimate relates to the estima ted porti on of the hire contained in the time charter contra cts with Ya mal which repre sents the opera ti ng e xpense s of the ve ssels a nd is subject to yea rly adj ustments on the basi s of the actual operating costs incurred withi n ea ch yea r.
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Total estimated contract backlog of approximately $1.0 billion (2) ~ 5.9 years remaining average duration. Key Commercial Achievements Contracts for Yenisei River and Lena River include dry-dock and OPEX pass-through provisions All 6 Vessels are fixed on term contracts with asset strong LNG producers. 100%, 100%, 100% and 64% contracted fleet for 2025,2026, 2027, and 2028 (basis earliest delivery). Leveraging on innovative technical solutions and in-house operations to generate long term vessel employment. Fleet Employment Overview Fi rm charter peri od Optional char ter period Av ailable 7 1. Char tering enti ty is SE FE Ma rke ting & T radi ng Sing apor e Pte Ltd. 2. Char tering enti ty is Yama l T rade Pte Ltd, Si ngapor e 3.
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8 Appendix
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9 Adjusted Net Income represents net income before non-recurring expenses (if any), charter hire amortization related to time charters with escalating time charter rates and changes in the fair value of derivative financial instruments. Net Income available to common unitholders represents the common unitholders interest in Adjusted Net Income for each period presented. Adjusted Earnings per common unit represents Net Income available to common unitholders divided by the weighted average common units outstanding during each period presented. Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit, basic and diluted, are not recognized measures under U.S. GAAP and should not be regarded as substitutes for net income and earnings per unit, basic and diluted. ThePartnership’sdefinitions of Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit, basic and diluted, may not be the same at those reported by other companies in the shipping industry or other industries. The Partnership believes that the presentation of Adjusted Net Income and Net income available to common unitholders are useful to investors because these measures facilitate the comparability and the evaluation of companies in thePartnership’sindustry. In addition, the Partnership believes that Adjusted Net Income is useful in evaluating its operating performance compared to that of other companies in thePartnership’sindustry because the calculation of Adjusted Net Income generally eliminates the accounting effects of items which may vary for different companies for reasons unrelated to overall operating performance. ThePartnership’spresentation of Adjusted Net Income, Net Income available to common unitholders and Adjusted Earnings per common unit does not imply, and should not be construed as an inference, that its future results will be unaffected by unusual or non-recurring items and should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. Reconciliation of Net Income to adjusted Net Income and Adjusted Earnings per Common Unit Three Months Ended December 31, Twelve Months Ended December 31, (In thousands of U.S. dollars except for units and per unit data) 2024 2023 2024 2023 (unaudited) (unaudited) Net Income $ 14 ,079 $ 10 ,462 $ 51 ,591 $ 35 ,872 Amortization of deferred revenue 858 1,719 5,316 (8,343) Amortization of deferred charges 55 54 217 216 Class survey costs net of revenue from contracts with customers — — — 6,048 Loss on Debt extinguishment — — 331 154 (Gain)/ Loss on derivative financial instrument — 951 (1,755) (5,267) Other income — (2,881) (1,492) (2,881) Adjusted Net Income $ 14,992 $ 10,305 $ 54,208 $ 25,799 Less: Adjusted Net Income attributable to preferred unitholders and general partner (3,239) (2,898) (13,019) (11,577) Common unitholders’ interest in Adjusted Net Income $ 11,753 $ 7,407 $ 41,189 $ 14,222 Weighted average number of common units outstanding, basic and diluted: 36 ,791,279 36,802,247 36,799,490 36,802,247 Adjusted Earnings per common unit, basic and diluted $ 0.32 $ 0.20 $ 1.12 $ 0.39
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10 (1) Includes interest and finance costs and interest income, if any. (2) Includes other income from insurance claims for damages incurred in prior years. The Partnership defines Adjusted EBITDA as earnings before interest and finance costs, net of interest income (if any), unrealised gains/losses on derivative financial instruments, taxes (when incurred), depreciation and amortization (when incurred), class survey costs and significant non-recurring items (if any). Adjusted EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess the Par tne rsh ip’s operating performance. The Partnership believes that Adjusted EBITDA assists its management and investors by providing useful information that increases the ability to compare the Par tne rsh ip’s operating performance from period to period and against that of other companies in its industry that provide Adjusted EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or against companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possible changes in financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. The Partnership believes that including Adjusted EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in the Partnership and other investment alternatives and (b) monitoring the Par tne rsh ip’s ongoing financial and operational strength. Adjusted EBITDA is not intended to and does not purport to represent cash flows for the period, nor is it presented as an alternative to operating income. Further, Adjusted EBITDA is not a measure of financial performance under U.S. GAAP and does not represent and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income and these measures may vary among other companies. Therefore, Adjusted EBITDA, as presented above, may not be comparable to similarly titled measures of other businesses because they may be defined differently by those other businesses. It should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. Any Non-GAAP measures should be viewed as supplemental to, and should not be considered as alternatives to, GAAP measures including, but not limited to net earnings (loss), operating profit (loss), cash flow from operating, investing and financing activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. Reconciliation of Net income to Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, (In thousands of U.S. dollars) 2024 2023 2024 2023 (unaudited) (unaudited) Net income $ 14,079 $ 10,462 $ 51 ,591 $ 35,872 Net interest and finance costs (1) 5,450 9,012 28,629 36,617 Depreciation 8,081 8,082 32,151 31,946 Loss on Debt extinguishment — — 331 154 (Gain)/ Loss on derivative financial instrument — 951 (1,755) (5,267) Class survey costs net of Revenues from contracts with customers — — — 6,048 Amortization of deferred revenue 858 1,719 5,316 (8,343) Amortization of deferred charges 55 54 217 216 Other income (2) — (2,881) (1,492) (2,881) Adjusted EBITDA $ 28,523 $ 27,399 $ 114,988 $ 94,362