Dynagas drops on Wells Fargo downgrade to "underperform"

Dynagas LNG Partners LP

24/04/2018 15:28

** Shares of Dynagas LNG Partners LP  DLNG.K  sank >10 pct
early Tues before paring losses after Wells Fargo cut its rating
to "underperform" from "market perform" 
    ** Broker slashes PT from $13 to $6, lowest on the Street
    ** DLNG last down 4.0 pct at $9.10
    ** Lead analyst Michael Webber says the LNG carrier faces
liquidity challenges from its 10/2019 $250 mln unsecured bond
maturity and headwinds "created by expensive dropdowns from its
private sponsor"
    ** Estimates potential cash shortfall of ~$190 mln by late
2019, raising possibility that DLNG could further cut its
remaining distribution to help facilitate the refi process
    ** On Apr 18, stock fell 8.4 pct after co announced it would
cut qtrly distribution by 41 pct to 25 cents/common sh
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    ** Of 7 analysts covering DLNG, Webber is lone "strong
sell," 3 rate co "buy" or stronger, 3 say "hold"; median PT $12
    ** With today's loss, DLNG stock has dropped ~16 pct YTD

 (Reporting by Stephen Culp)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))