DLNG - Dynagas LNG: Still An Attractive LNG Play With A Considerable Backlog And Strong Balance Sheet
2024-04-09 04:02:41 ET
Summary
- Dynagas is still one of my favorite speculative plays. The company has a huge backlog 10x its market cap, and the average remaining charter duration is 6.9 years.
- In 2023, DLNG achieved strong revenue and operating income growth.
- Declining gains from derivative instruments and increased finance costs squeezed the company’s bottom line, resulting in lower net income and EPS.
- The Company signed an agreement with an undisclosed Asian financier for a credit facility of up to $345 million. The proceeds will be used to repay the company's debt due in 3Q24.
- DLNG common units are a good speculative play, betting on resilient LNG demand growth. DLNG-preferred units come with an attractive yield above 8%. I give DLNG a buy rating.
...
Dynagas LNG: Still An Attractive LNG Play With A Considerable Backlog And Strong Balance Sheet