- 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.
For further details see:
Capital Product Partners - Deep Value Opportunity After Transformative Acquisitions