Dynagas LNG Partners LP Reports Results for the Three Months Ended March 31, 2026

ATHENS, Greece, (ZEEST MEDIA) — Dynagas LNG Partners LP (NYSE: DLNG) (the “Partnership”), an owner of liquefied natural gas (“LNG”) carriers, today announced its results for the three months ended March 31, 2026.

Quarter Highlights:

• Net Income and Earnings per common unit (basic and diluted) of $17.4 million and $0.43, respectively;
• Adjusted Net Income⁽¹⁾ of $12.4 million and Adjusted Earnings per common unit⁽¹⁾ (basic and diluted) of $0.29;
• Adjusted EBITDA⁽¹⁾ of $24.3 million;
• 95.1% fleet utilization⁽²⁾;
• Declared and paid a cash distribution of $0.5625 per unit on the Partnership’s Series A Preferred Units (NYSE: DLNG PR A) for the period from November 12, 2025 to February 11, 2026; and
• Declared a quarterly cash distribution of $0.050 per common unit for the quarter ended December 31, 2025, which was paid on February 27, 2026, to all common unitholders of record as of February 23, 2026.

⁽¹⁾ Adjusted Net Income, Adjusted Earnings per common unit and Adjusted EBITDA are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP and other related information.
⁽²⁾ Please refer to Appendix B for additional information on how we calculate fleet utilization.

Recent Events:

• The Clean Energy was delivered under its new time charter party agreement with Rio Grande LNG, LLC (“Rio Grande”) in April 2026;
• Declared a quarterly cash distribution of $0.5625 per unit on the Partnership’s Series A Preferred Units for the period from February 12, 2026 to May 11, 2026, which was paid on May 12, 2026 to all Series A Preferred unitholders of record as of May 5, 2026; and
• Declared a quarterly cash distribution of $0.050 per common unit for the quarter ended March 31, 2026, which was paid on May 22, 2026 to all common unitholders of record as of May 18, 2026.

CEO Commentary:

We are pleased to report solid financial results for the first quarter of 2026. Net Income for the period was $17.4 million, or $0.43 per common unit, supported by 95.1% fleet utilization and Adjusted EBITDA of $24.3 million.

We remain focused on creating value for our unitholders through disciplined deleveraging and sustainable capital returns. Consistent with this focus, our Board of Directors declared a quarterly cash distribution of $0.050 per common unit, which was paid on May 22, 2026.

The LNG shipping market has shown resilience during the first half of 2026, against a backdrop of significant geopolitical disruption. Following the escalation of hostilities involving Iran and the temporary closure of the Strait of Hormuz, approximately 20% of global LNG supply was removed from the market during March and April. The resulting shortfall has been largely offset by U.S. export growth, with U.S. volumes running approximately 18% above full-year 2025 levels on an annualized basis. Global LNG trade volumes continued to expand as the redirection of trade flows from the Atlantic Basin to Asia has lengthened average sailing distances and increased ton-mile demand, tightening vessel availability and driving LNG carrier charter rates sharply higher. While these dynamics are supportive for the broader LNG shipping sector, the Partnership’s fleet is fully contracted under long-term charters and therefore does not have direct exposure to these market movements.

As of May 29, 2026, the Partnership had estimated contracted time charter coverage for 100%, 100%, and 65% of its fleet estimated Available Days for 2026, 2027, and 2028, respectively, with an estimated contracted revenue backlog of $0.78 billion and an average remaining contract term of 4.7 years.

With respect to charter developments, we are pleased to report that the Clean Energy was redelivered from her previous charter with SEFE in early April 2026 and was successfully delivered under her new time charter with Rio Grande at the end of April 2026. The new charter with Rio Grande is at a higher daily rate than the previous SEFE charter and is expected to be accretive to the Partnership’s revenues and cash flows going forward.

With respect to the ongoing Russian sanctions environment, the Partnership continues to monitor developments, including the E.U.’s 19th sanctions package, with which the Partnership is required to comply. For a detailed discussion, please refer to the “Russian Sanctions Developments” section of this press release.

Looking ahead, we remain focused on disciplined capital allocation, continued balance sheet deleveraging, and returning capital to our unitholders in a sustainable manner.

Financial Results Overview:

⁽¹⁾ Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per common unit are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP and other related information.

Three Months Ended March 31, 2026 and 2025 Financial Results

Net Income for the three months ended March 31, 2026 was $17.4 million as compared to $13.6 million for the corresponding period in 2025, which represents an increase of $3.8 million, or 27.9%. The increase in Net Income for the three months ended March 31, 2026 compared to the corresponding quarter of 2025 was mainly attributable to the increase in Other Income from insurance claims for damages incurred in prior years and the decrease in Net Interest and finance costs, as explained below. The above increase was partially offset by the decrease in cash revenues resulting from fewer Revenue earning days of two of the Partnership’s vessels due to unscheduled repairs in the three months ended March 31, 2026, compared to the corresponding period in 2025. Vessel operating expenses also increased during the period, however, this increase was substantially offset by higher variable hire revenues earned on two of the Partnership’s vessels operating under OPEX pass-through time charters.

Adjusted Net Income (a non-GAAP financial measure) for the three months ended March 31, 2026, was $12.4 million compared to $14.3 million for the corresponding period in 2025, which represents a net decrease of $1.9 million, or 13.3%. This decrease was mainly attributable to the decrease in cash revenues, as explained above, as well as to the lower time charter rate of the Arctic Aurora compared to the corresponding period in 2025, which was partially offset by the decrease in Net Interest and finance costs, as explained below.

Voyage revenues for the three months ended March 31, 2026, were $39.9 million as compared to $39.1 million for the corresponding period in 2025, which represents a net increase of $0.8 million, or 2.0%. This increase was mainly attributable to the increase of the value of the EU ETS emissions allowances (“EUAs”) due to the Partnership by the charterers of its vessels, pursuant to the terms of its time charter agreements (the corresponding value of the abovementioned EUAs, which the Partnership is obliged to surrender to the EU authorities, is included within Voyage expenses) and the increase in variable hire revenues earned on two of the Partnership’s vessels under the OPEX pass-through time charters compared to the corresponding period in 2025. The above increase in voyage revenues was partially offset by the lower revenues earned due to fewer Revenue earning days in the three months ended March 31, 2026, compared to the corresponding period in 2025, of two of the Partnership’s vessels as a result of unscheduled repairs.

The Partnership reported average daily hire gross of commissions⁽³⁾ of approximately $69,360 per day per vessel for the three-month period ended March 31, 2026, compared to approximately $72,190 per day per vessel for the corresponding period in 2025. The Partnership’s vessels operated at 95.1% and 100.0% fleet utilization during the three-month periods ended March 31, 2026 and 2025, respectively.

Vessel operating expenses were $10.2 million, which corresponds to a daily rate per vessel of $18,846 for the three-month period ended March 31, 2026, as compared to $8.7 million, or a daily rate per vessel of $16,169, in the corresponding period in 2025. This increase was mainly attributable to increased scheduled engine overhauling costs on one of the Partnership’s vessels, as well as to increased technical costs due to unscheduled repairs on two of the Partnership’s vessels in the three-month period ended March 31, 2026. The increase in Vessel operating expenses was substantially offset by higher variable hire revenues earned on two of the Partnership’s vessels operating under OPEX pass-through time charters, as mentioned above

Adjusted EBITDA (a non-GAAP financial measure) for the three months ended March 31, 2026, was $24.3 million, as compared to $27.1 million for the corresponding period in 2025. The decrease of $2.8 million, or 10.3%, was mainly attributable to the abovementioned decrease in cash revenues, including the decrease in Voyage revenues due to the lower time charter rate of the Arctic Aurora, in the three months ended March 31, 2026, as compared to the corresponding period in 2025. Voyage revenues also increased due to the higher value of the EUAs due to the Partnership by the charterers of its vessels pursuant to the terms of its time charter agreements; however, this increase was fully offset by a corresponding increase in Voyage expenses, reflecting the value of the EUAs that the Partnership is required to surrender to the EU authorities.

Net Interest and finance costs were $4.0 million in the three months ended March 31, 2026 as compared to $4.9 million in the corresponding period in 2025, which represents a decrease of $0.9 million, or 18.4%, due to the reduction in interest-bearing debt, and the decrease in the applicable weighted average interest rate from 6.52% in the three months ended March 31, 2025 to 5.88% in the three months ended March 31, 2026.

For the three months ended March 31, 2026, the Partnership reported basic and diluted Earnings per common unit and Adjusted Earnings per common unit (a non-GAAP financial measure), of $0.43 and $0.29, respectively, after taking into account the distributions relating to the Series A Preferred Units on the Partnership’s Net Income/Adjusted Net Income. Earnings per common unit and Adjusted Earnings per common unit, basic and diluted, were calculated on the basis of a weighted average number of 36,382,011 common units outstanding during the period and in the case of Adjusted Earnings per common unit, after reflecting the impact of certain adjustments presented in Appendix B of this press release.

Adjusted Net Income, Adjusted EBITDA, and Adjusted Earnings per common unit are not recognized measures under U.S. GAAP. Please refer to Appendix B of this press release for the definitions and reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

Amounts relating to variations in period-on-period comparisons shown in this section are derived from the condensed financial statements presented in Annex A hereto.

⁽³⁾ Average daily hire gross of commissions is a non-GAAP financial measure and represents voyage revenue excluding the non-cash time charter deferred revenue amortization, as well as the revenues attributable to the value of the EUAs to be provided to the Partnership pursuant to the terms of its agreements with the charterers, divided by the Available Days in the Partnership’s fleet as described in Appendix B.

Liquidity/ Financing/ Cash Flow Coverage

During the three months ended March 31, 2026, the Partnership generated net cash from operating activities of $26.5 million as compared to $18.1 million in the corresponding period in 2025, which represents an increase of $8.4 million, or 46.4%, mainly as a result of working capital changes.

As of March 31, 2026, the Partnership reported total cash of $53.0 million. The Partnership’s outstanding financial liabilities as of March 31, 2026, under the Sale and Leaseback agreements between the vessel owning companies of the Clean Energy, the OB River, the Amur River and the Arctic Aurora and China Development Bank Financial Leasing Co. Ltd. amounted to $38.6 million, $51.2 million, $52.7 million and $125.2 million, respectively, gross of unamortized deferred loan fees. The financial liabilities under the Sale and Leaseback agreements are repayable within approximately three years for the Clean Energy, the OB River and the Amur River and within nine years for the Arctic Aurora.

Vessel Employment

As of March 31, 2026, the Partnership had estimated contracted time charter coverage⁽⁴⁾ for 99%, 100% and 65% of its fleet estimated Available Days (as defined in Appendix B) for each of 2026, 2027 and 2028, respectively.

As of the same date, the Partnership’s estimated contracted revenue backlog ^{(5) (6)} was $0.8 billion, with an average remaining contract term of 4.9 years.

⁽⁴⁾ Time charter coverage for the Partnership’s fleet is calculated by dividing the fleet contracted days on the basis of the earliest estimated delivery and redelivery dates prescribed in the Partnership’s current time charter contracts, net of scheduled class survey repairs, by the number of expected Available Days during that period.

⁽⁵⁾ The Partnership calculates its estimated contracted revenue backlog by multiplying the contractual daily hire rate by the expected number of days committed under the contracts (assuming earliest delivery and redelivery and excluding options to extend), assuming full utilization. The actual amount of revenues earned and the actual periods during which revenues are earned may differ from the amounts and periods disclosed due to, for example, the early termination or temporary suspension of charters, dry-docking and/or special survey downtime, maintenance projects, off-hire downtime and other factors that result in lower revenues than the Partnership’s estimated contract revenue backlog.

^(6)[ $0.09 billion of the revenue backlog estimate relates to the estimated portion of the hire contained in certain time charter contracts with Yamal Trade Pte. Ltd., which represents the operating expenses of the respective vessels and is subject to yearly adjustments on the basis of the actual operating costs incurred within each year. The actual amount of revenues earned in respect of such variable hire rate may therefore differ from the amounts included in the revenue backlog estimate due to the yearly variations in the respective vessel’s operating costs.

Russian Sanctions Developments

Due to the ongoing Russian war with Ukraine, the United States (“U.S.”), European Union (“E.U.”), the United Kingdom (the “U.K.”), and other countries and organizations have publicly announced and enacted extensive sanctions against Russia to impose severe economic pressure on the Russian economy and government.

On October 23, 2025, the E.U. adopted its 19th package of sanctions (“New E.U. Sanctions Regulations”). Importantly, the New E.U. Sanctions Regulations prohibit E.U. persons and non-E.U. persons with an E.U.-nexus from purchasing, importing, or transferring, directly or indirectly, LNG originating in or exported from Russia to any jurisdiction, whether inside or outside the E.U. The New E.U. Sanctions Regulations will apply beginning January 1, 2027 with respect to existing long-term contracts with a duration of more than one year. The Partnership is required to comply with the New E.U. Sanctions Regulations.

One of our charterers, Yamal Trade Pte. Ltd. (the “Charterers”), employs two of our vessels, the Yenisei River and Lena River, on existing long-term charters which extend to 2033 and 2034, respectively (the “Yamal Charters”). These vessels, since commencement of the Yamal Charters, have been engaged in the transportation of LNG produced in Russia for discharge at destinations worldwide in compliance with applicable sanctions regulations. However, under the New E.U. Sanctions Regulations, commencing January 1, 2027, these vessels will be restricted from transporting LNG from Russia which would affect the Charterers’ ability to continue to employ the vessels in the same manner.

Furthermore, on May 20, 2026, the U.K. significantly expanded its restrictions on Russian-origin LNG by targeting its global maritime supply chains. Under the Russia (Sanctions) (EU Exit) (Amendment) Regulations 2026 (S.I. 2026/543), these restrictions prohibit U.K. persons from (i) directly or indirectly supplying or delivering by ship LNG originating in or consigned from Russia, (x) from Russia to a third country, or (y) from one third country to another third country, or (ii) providing related financial services, funds, and brokering services that facilitate such maritime transportation (the “New U.K. Sanctions Regulations”). However, because the U.K. has adopted the same wind-down provisions as the E.U., pursuant to regulation 60L, performance under the Yamal Charters may continue until January 1, 2027. After that date, these restrictions prohibit U.K.-nexus service providers (such as insurers, brokers, classification societies, and financiers) from facilitating the maritime transportation of Russian-origin LNG in connection with the Partnership’s vessels operating under the Yamal Charters.

The Partnership and the Charterers are continuing to evaluate the potential impact of the New E.U. Sanctions Regulations and the New U.K. Sanctions Regulations on the operation of the vessels under the Yamal Charters, and as part of that evaluation, the Partnership is considering various measures, including the feasibility of lawfully removing (i) the E.U. nexus, which would require, among other things, replacing the vessels’ technical and commercial manager, and (ii) the U.K. nexus, which would require, among other things, changing certain of the Partnership’s service providers. Our fleet consists of only six LNG carriers and we derive all of our revenues from a limited number of charterers. For the year ended December 31, 2025, the Charterers accounted for 36% of our total revenues. The Partnership believes the Yamal Charters remain enforceable notwithstanding the New E.U. Sanctions Regulations and the New U.K. Sanctions Regulations, however, there can be no assurance that the Charterers will share this interpretation, and any disagreement could result in disputes, nonperformance, litigation, or early termination of the Yamal Charters, among other things. The loss of revenue under either or both of the Yamal Charters would have a material adverse effect on our business, results of operations, financial condition, and ability to make distributions to our unitholders, and could result in an event of default under our debt agreements.

Applicable U.S., U.K. and E.U. sanctions regimes that are in effect as of today’s date do not materially affect our business, operations or financial condition and, to our knowledge, our counterparties are currently performing their obligations under their respective time charters in compliance with such sanctions regulations. We closely monitor the applicability of sanctions regulations on us and our counterparties, and the potential impact of economic sanctions on us and our commercial arrangements, including the Yamal Charters. The full impact of the commercial and economic consequences of the Russian war with Ukraine is uncertain at this time. The New E.U. Sanctions Regulations, the New U.K. Sanctions Regulations, or any further development in sanctions, including actions we may take to lawfully mitigate the impact on the Partnership of such sanctions, or escalation of the Ukraine war and other geopolitical events and conflicts more generally may have a material adverse impact on our business, financial condition, results of operations, our ability to make distributions to unitholders, or our ability to comply with the covenants in our debt agreements. Sanctions have been expanded over time and may continue to evolve and could ultimately restrict or prevent the performance of certain contractual obligations under our charters.

Please see the section of this press release entitled “Forward Looking Statements”. Please also see the risk factors we describe in our Annual Report on Form 20-F for the year ended December 31, 2025, including without limitation, the risk factors entitled “We currently derive all our revenue and cash flow from a limited number of charterers and the loss of any of these charterers could cause us to suffer losses or otherwise adversely affect our business,” “Any charter termination would likely have a material adverse effect on our business, financial condition, results of operations and cash flows,” “If our vessels call on ports located in countries or territories that are the subject of sanctions or embargoes imposed by the United States government or other governmental authorities, it could result in the imposition of monetary fines or penalties and adversely affect our reputation and the market for our securities”, and “We may be subject to litigation that could have an adverse effect on us.”

Slide Presentation:

The slide presentation on the first quarter ended March 31, 2026 financial results will be available in PDF format, accessible on the Partnership’s website www.dynagaspartners.com.

About Dynagas LNG Partners LP

Dynagas LNG Partners LP. (NYSE: DLNG) is a master limited partnership that owns liquefied natural gas (LNG) carriers employed on multi-year charters. The Partnership’s current fleet consists of six LNG carriers, with an aggregate carrying capacity of approximately 914,000 cubic meters.

Visit the Partnership’s website at www.dynagaspartners.com. The Partnership’s website and its contents are not incorporated into and do not form a part of this release.

Contact Information:
Dynagas LNG Partners LP
Attention: Michael Gregos
Tel. +30 210 8917960
Email: management@dynagaspartners.com

Publication Partner:
Zeest Media

Amir Sohail