CPLP - Capital Product Partners - Deep Value Opportunity After Transformative Acquisitions

• CPLP has completed its initial push into the LNG sector by acquiring six ultra-modern LNG carriers with long-term charters. Management plans to keep expanding the fleet via nine potential dropdowns.
• The six ultra-modern LNG carriers make the company a large player in the sector, and note that six out of the nine potential dropdowns are LNG carriers as well.
• The dividend was recently raised by 50%, but the firm is focusing on completing its dropdowns. Share repurchases are very attractive at current pricing, $25.5M remains under authorization.
• The company continues to trade at a sizable discount to NAV (estimated above $50/unit), and the long-term nature of the company’s charters provide downside protection.
• CPLP trades at a massive discount to net asset value. Although it has an LP structure and weaker governance, management has so far not acted nefariously and insiders have been buying.

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