Dynagas LNG Partners LP (DLNG) has approved a new common‑unit repurchase program with a maximum aggregate value of $10 million, to be executed through November 24, 2026. The program replaces the prior plan that expired on November 21, 2025, and allows the partnership to buy back units in privately negotiated or open‑market transactions, subject to management discretion and prevailing market conditions.
The decision follows a period of strong financial performance. In the most recent quarter, DLNG reported a net income increase of 18% year‑over‑year, driven by higher charter rates and a 100% contracted time‑charter coverage for 2024‑2026. The company’s refinancing of debt in June 2024 and the redemption of Series B preferred units in July 2025 have reduced leverage and freed up cash, enabling the new buyback program while maintaining flexibility for future investments.
DLNG operates a fleet of six LNG carriers with a combined capacity of approximately 914,000 cubic meters. All vessels are employed on multi‑year charter contracts, providing a predictable revenue stream. However, several carriers are approaching 20 years of age, which could increase maintenance costs and expose the partnership to evolving environmental regulations. The company’s management has emphasized that the fleet’s high utilization and long‑term contracts mitigate these risks and support the cash‑flow profile needed for the repurchase program.
Management highlighted that the buyback is part of a disciplined capital‑allocation strategy aimed at returning value to unit holders while preserving the ability to invest in growth opportunities. “We are confident that our units are undervalued and that our cash‑flow generation remains robust,” said the partnership’s chief financial officer. The program signals confidence in the long‑term fundamentals of LNG shipping and the continued demand for LNG transport.
The repurchase program is expected to support unit price stability and may enhance investor sentiment by demonstrating the partnership’s commitment to returning capital. It also underscores DLNG’s focus on deleveraging and maintaining a strong balance sheet, positioning the company to capitalize on future market opportunities while managing headwinds such as fleet aging and geopolitical exposure.
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