Capital Clean Energy Carriers Q4 2023 Earnings Call Transcript

Quartr
Provided by Quartr
February 2, 2024

There are 6 speakers on the call.

Operator

Thank you for standing by, and welcome to the Capital Products Partners 4th Quarter 2023 Financial Results Conference Call. We have with us today Mr. Jerry Kallalotis, Chief Executive Officer Mr. Spyros Lejosz and Mr. Nikos Kalapova, Chief Financial Officer of the company.

Operator

At this time, all participants are in a listen only mode. There will be a presentation followed by a question and answer session. On your telephone keypad and wait for your name to be announced. I must advise you this conference is being recorded February 2, 2024. The statements in today's conference call that are not historical facts, including our expectations regarding acquisition transactions and their expected effect on us, cash generation, equity returns and future debt levels, our ability to pursue growth opportunities, Our expectations or objectives regarding future distribution amounts or unit buyback amounts, capital reserve amounts, distribution coverage, Future earnings, capital allocation, as well as our expectations regarding market fundamentals and the employment of our vessels, including redelivery dates and charter rates, may be forward looking statements, such as defined in Section 21E of the Securities Exchange Act of 1934 as amended.

Operator

These forward looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. Unless required by law, we expressly disclaim any obligation to update or revise any of these forward looking statements, whether because of future events, new information, a change in our views or expectations to conform to actual results or otherwise. We make no prediction or statement about the performance of our common units. I would now like to turn the call over to your speaker today, Mr. Kalarotis.

Operator

Please go ahead, sir.

Speaker 1

Thank you, Rob, And thank you all for joining us today. As a reminder, we will be referring to the supporting slides available on our website as we go through today's presentation. On November 13 last year, we announced a strategic transaction for the partnership, which aims to transform CPLP into a leading LNG and energy transition focused shipping corporation. We started executing on our business plan directly thereafter By concluding a $500,000,000 rights offering, I successfully closed the agreement to acquire 11 latest generation 2 stroke LNG carriers with deliveries from the Q4 of 2023 through to the Q1 of 2027. We also agreed to negotiate the conversion of the partnership from a limited Partnership to a corporation with customary corporate governance provisions by June of this year.

Speaker 1

Finally, we have On closing of the transaction on December 21, we took delivery of the first vessel under this agreement, the LNG carrier Amore Mio 1. And shortly thereafter, on January 2, we took delivery of a second vessel, the LNG carrier Axios II. In addition, we also agreed to sell the 5,000 100 TEU container vessel, Long Beach Express, in line with our stated intention to divest gradually from our legacy container assets. Turning to the Partnership's financial performance, net income for the Q4 of 2023 was $12,700,000 or $16,300,000 excluding a $3,500,000 impairment associated with the sale of 2 of our vessels. Our Board of Directors has declared a cash distribution of $0.15 per common unit for the Q4 of 2023.

Speaker 1

The 4th quarter cash distribution will be paid on February 13 to common unitholders of record on February 6. Finally, the partnership's current fleet charter coverage for 2024 and 2025 stands at 100% 82%, respectively, The remaining charter duration corresponding to 7.2 years and contracted revenue backlog of 3,100,000,000 Turning to Slide 4, total revenue for the Q4 of 2023 was $95,500,000 compared to 79 $900,000 during the Q4 of 'twenty two. The increase in revenue was primarily attributable to the revenue contributed by the 3 newbuilding Containers and 1 newbuilding LNG carrier were acquired between October 2022 June 2023, as well as the LNG carrier Amoremi-one acquired in mid December 2023, partly offset by the sale of our sold dry bulk vessel, the Cape Agamemnon, earlier in the quarter. Total expense for the Q4 of 'twenty three was $55,100,000 compared to $42,100,000 for the Q4 of 'twenty two. Total vessel operating expenses during the Q4 of 2023 amounted to $20,600,000 compared $17,300,000 during the Q4 of 'twenty 2 and were higher mainly due to the net increase in the average number of vessels in our fleet.

Speaker 1

Now total expenses for the Q4 of 'twenty three also include a non cash impairment charge of $3,500,000 that we recognize connection with the sale of BK Pagan Memnon and the Long Beach Express and vessel depreciation and amortization of $22,200,000 compared to $17,000,000 in the Q4 of 'twenty 2. The increase in depreciation and amortization during the Q4 of 'twenty 3 was mainly attributable to the net increase in the average size of our fleet. General and administrative expenses for the Q4 of 'twenty three increased to $5,700,000 from $4,000,000 mainly due to the costs incurred in connection with the LNG transaction we closed in December 'twenty three. Interest expense and finance costs Increased to $27,900,000 for the Q4 compared to $18,400,000 for the Q4 of 'twenty two. The increase was mainly due to the partnership's average indebtedness and the increase in the weighted average interest rate to 6.6% from 5.4% in the Q4 of 'twenty two.

Speaker 1

Net income per common unit For the quarter, it was $0.48 or $0.61 if we exclude the impairment, compared to $1.03 per common unit in the Q4 of last year.

Operator

On slide 5, you can see

Speaker 1

the details of our balance sheet. As of the end of the Q4, the partner's capital amounted to $1,175,000,000 an increase of $536,500,000 compared to $638,400,000 as of the end of 'twenty two. The increase reflects net income for $23,000,000 other comprehensive income of $3,200,000 relating to the net effect of the gross currency swap agreement We designate as an accounting hedge the amortization associated with the equity incentive plan of $3,800,000 and the net result from the issuance of common units in connection with the rights offering of $498,700,000 partly offset by distributions declared and paid during the period in a total amount of $12,200,000 The cost of repurchasing our common units under our unit repurchase program for an aggregate amount of 4,100,000 Total debt increased by $488,600,000 to $1,800,000,000 compared to $1,300,000,000 as of year end. The increase is driven primarily by the drawdown of $508,300,000 To finance special acquisitions and a $10,000,000 increase in the U. S.

Speaker 1

Dollar equivalent of the euro denominated bonds, partly offset by the scheduled principal payments and the early repayment in full of 1 of our facilities for a total of $109,800,000 Total cash As of quarter end amounted $204,100,000 including restricted cash of $11,700,000 which represents the minimum liquidity requirement under On Slide 6, we provide an overview of the agreement for the acquisition of the 11 Latest generation LNG carriers from Capital Maritime for a total price of $3,100,000,000 which closed on December 21. We remind you that the agreement included the $500,000,000 rights offering at the price of $14.25 fully boxed off by Capital Maritime and the $220,000,000 seller's credit. While closing of the agreement on December 21, a total of 454 200,000 was due to capital mined time by the partnership, broken down as follows: 141,700,000 Being the equity part of the acquisition price for the Amore Mio-one on top of the lease financing that was in place and was taken over by the partnership. We took delivery of the Amore Mio-one immediately, being the sole vessel in the water at the time of closing. In addition, Another $174,400,000 was due to Qatar Maritime, representing 10% of the relevant acquisition price of the 6 initial vessels.

Speaker 1

We define as initial vessels the LNG carriers that we are going to take over and pay for the balance of purchase price the day that they are going to be delivered from the shipyard. This means that for these vessels, we have no obligation until delivery. And finally, another 138 $100,000 was due for the 4 remaining vessels. We define as remaining vessels the entities we acquired on the day of closing in December, which are party to the shipbuilding contracts of the 4 remaining LNG carriers and hence we took over their obligations under the respective contracts including pre delivery installments. Now with regard to the rights offering, Capital Maritime purchased 34,600,000 common units pursuant to the standby purchase agreement for an aggregate amount of $493,600,000 as the rights offering was not fully subscribed.

Speaker 1

As a result, the amount of $454,200,000 due to Capital Maritime was netted against The $493,600,000 Q from Capital Maritime, resulting in a net cash inflow of $39,500,000 that was paid from Capital Maritime to the Partnership in cash. Turning to Slide 7, the LNG carrier Amore Mio-one was $2,000,000 EBITDA from the delivery of the vessel to the partnership to the completion of the charter. Upon acquisition of the Amore Mi-one, we assumed Indebtedness of $196,300,000 in the form of a sale and leaseback financing. On Slide 8, We review delivery of the LNG carrier Axios II to the partnership, which took place on January 2. The vessel commenced an index linked 1 year time Charter with a major commodity trader, which will be followed by a 7 year bareboat charter with Pony Gas Transport Limited.

Speaker 1

Bon and Gas Transport, or BGT, maintains an option to extend the charter by an additional 3 years. The payable charter is expected to generate over the 7 years $250,000,000 of EBITDA. The vessel acquisition was financed by netting 10% of the purchase price against the amount due from Capital Maritime and the standby purchase agreement, a new senior secured loan facility for an amount of 190,000,000 And a drawdown of $92,600,000 under the seller's credit facility. On slide 9, we review our capital expenditure commitments in relation to the 4 remaining vessels under construction. Our 2024 CapEx commitments amount $1,200,000,000 with $101,100,000 representing pre delivered installments due to the shipyard and are expected to be paid within the Q1 of 2024.

Speaker 1

The remaining $1,100,000 represents the balance due to CMTC upon delivery of each of the initial vessels. This amount includes a balance of $282,600,000 due for Axios II, which was paid on January 2. Net of that, the remaining balance for 2024 is 801,000,000 We expect to finance this amount with approximately $720,000,000 of senior debt and the remainder with a drawdown under the seller's credit facility. The next year with a significant capital expenditure is 2026 when $863,000,000 is due for pre delivery and delivery installments due to the shipyard. This is expected to be funded through a combination of cash from the balance sheet, vessel financing and drawdown under the seller's credit.

Speaker 1

We expect to have more details on the debt financing of these vessels closer to their respective deliveries. On Slide 10, we review our current debt amortization profile excluding maturities. This includes the expected net sale proceeds from Long Beach Express, which will go towards the repayment of the outstanding seller's credit balance. As you can see, we expect to reduce our debt levels by $335,000,000 over the next 3 years without taking into account any additional cash proceeds for the sale of container At the same time, and as I mentioned earlier, we expect to incur approximately an additional $720,000,000 of debt in 'twenty four In order to take delivery of the remaining 3 LNG carriers we will be acquiring this year, the incremental debt amortization of this 720,000,000 is expected to be on average around $34,000,000 on an annualized basis. Turning to Slide 11, you can see our debt maturities split by year.

Speaker 1

It's important to highlight here that we do not have any material maturities until the year 2026 When our first €150,000,000 bond becomes due. Moving to Slide 12, the partnership's contracted revenue backlog Now stands at $3,100,000,000 with over 80% of contracted revenue coming from LNG assets with a highly diversified and high quality customer base of 11 charterers. On Slide 13, you can see the charter profile of our LNG fleet. Our contracted backlog of 78 years could decrease to 100 and 15 years if all options were to be exercised. I should stress that we have no open vessels between now and the end of 2025.

Speaker 1

We do have 4 vessels coming up for delivery and one for renewal in 2026, and an additional 2 vessels for delivery and one for renewal, If Charter's options are not exercised in 'twenty seven, these vessels are expected to be seeking employment with a new wave of about 100 170 MTPA of additional new liquefaction capacity are expected to come online in the period between 20262028. We estimate that these projects alone, which have taken FID and export permits, will require between 190 to 120 additional vessels, with only 156 vessels due for delivery during that period. On Slide 14, we can see the charter expiration of the container fleet. The contracted backlog of 47 years could increase to 82 years with all options exercised. Since the announcement of our intention to divest from container vessels, We have seen significant inquiry for the sale of our vessels given the quality of our fleet and the attractive charters in place.

Speaker 1

This is already culminating the sale of 1 of our older Panamax vessels. We'll continue to seek to divest from additional container vessels in an opportunistic manner, provided that we can achieve a reasonable sale price compared to the contracted and expected cash flows and our expectations with regard to residual value going forward. Turning to slide 15 and the overview of the LNG market, I will pass the floor to our Chief Commercial Officer, Spiroz Lewis.

Speaker 2

Thank you, Terry. Overall, the reduced focus on energy security, along with Warm weather and full gas inventories have resulted in a decline in gas prices in 2023. This, combined with prolonged availability throughout the year, has kept charter rates lower compared to previous years. Spot rates for a 2 stroke vessel averaged $172,450 per day in Q4 2023, while the 1 year time charter rate as of the end of January 2024 stood at $75,000 per day. Notably, 5 year time charter rates have exceeded those for shorter durations, reflecting anticipation of tightening conditions from 2026.

Speaker 2

On the longer term, 10 year rates exhibited an upward trend in 2023, influenced by increases in newbuilding prices and interest rate, although this trend has moderated recently. Tatter markets for 2 strokes are expected to remain generally healthy in 2024 and 2025. The preference for 2 stroke vessels remains robust As the benefits of higher carrying capacity and lower boil off are still significant, even at lower gas prices. Rate differentials to older, less efficient tonnage continue to increase and we have now split rates even for 138 to 145 ks steam vessels As the market recognizes a material difference for an additional few 1,000 cubic meters of carrying capacity and the impact of EEXI regulations on vessel speed. The United States became the world's largest exporter in 2023, a position held by Qatar for the last few years, closely followed by Australia, while China reclaimed its position as the largest importer.

Speaker 2

In Europe, gas storage level reached historic highs, with several Asian importers having also reached full capacity. The focus on canals heightened 2023 and early this year. Asset used to Enfro in Panama led to fewer transit slots through the Canal. This could lead in additional demand for 4 to 5 LNG carriers per month from Q1 2024 until restriction cease. Additionally, security concerns in the Red Sea have prompted vessels to avoid the Bab Agman Dab Strait and Suez Canal, Choosing the Cape of Good Hope assets instead, analysts expect that redirecting all LNG carriers via the Cape of Good Hope should create additional demand for LNG vessels.

Speaker 2

Finally, the LNG fleet order book currently starts at approximately 52% of the total fleet, Encompassing 341 vessels on order, CPRs responding to heightened demand find themselves fully booked through 2027. The newbuilding price stands at more than $260,000,000 per vessel for basic specification vessels. In 2023, there were 68 new orders, a decrease from the record setting 185 ships ordered in 2022. More ordering is expected in order to meet the demand for anticipated liquefaction volumes in the years ahead. If EcoFunction projects adhere to timelines and propose projects secure final investment decision, the demand for newbuild is poised last trip currently at capacity until the decade ends.

Speaker 1

Thank you, Spiro. As a final comment from me and before we move to questions, I would like to draw your attention to Slide 16. Here you can see an updated timeline What we have set out to do. In the Q4 of 'twenty three, we announced and closed the agreement for the acquisition of the 11 LNG carriers. We completed The $500,000,000 rights offering acquired the LNG C Amore Mio and the 4 remaining vessels and paid the 10% deposits for the initial vessels.

Speaker 1

We're now in the Q1 of 'twenty four and have already taken delivery of the LNGC Axios to and agreed to sell 1 of our container vessels. Now looking ahead, we are going to focus on the following key steps. Firstly, the conversion of the corporate structure from MLP to an LNG and Energy Transition Shipping Corporation, which we hope to conclude over the coming months. Secondly, and after the conversion, we will be working with our Board to define the new capital allocation policy 3 of the MLP mantle. Thirdly, we will continue to look for opportunistic divestments of our container vessels.

Speaker 1

And finally, we will continue to execute on our business plan by taking delivery of the next 3 LNG carriers with long term employment in place in May, June July of this year. And with that, I'm happy to answer any questions you may have. Rob, please open the floor for questions.

Operator

Thank you. At this time, we'll be conducting a question and answer session. Our first question comes from Omar Khnakta with Jefferies. Please proceed with your question.

Speaker 3

Thank you. Hey, guys. Good afternoon. Thanks for the update. Hi, Jerry.

Speaker 3

Yes, I just wanted to ask A few questions for me, but maybe just a simple one just to start off on the planned corporate conversion from a partnership to a corporation. Just simply noticed in the release the date of June 21, it's a bit of an exact date. How do you feel Negotiations or discussions are going on to make that deadline and then what happens if it's not done by then?

Speaker 1

So this was the undertaking that the GP and the partnership gave to each other When the wider transaction was being negotiated, so the idea is to this is the, Let's say the deadline, there is no direct consequences envisioned under the umbrella agreement. In the end, it is an intention to negotiate the commitment from both sides. But what I can tell you is that both The GP and the partnership are very much motivated to get the conversion done. We are still in early innings as it is a process and both parties potentially are Our engaging advisers and whatnot. But I think it's more a question of a few months rather than Dredging beyond the deadline.

Speaker 1

As I said, I think both the GPs or Kapil Maritime and affiliates Want to see the conversion take place sooner than later, and so is the Board and the partnership. So I'm quite optimistic that we will be able to conclude this much earlier than the target date. Okay.

Speaker 3

Thanks, Jerry. That's clear. And then maybe just and I know you addressed this in the past and I could sort of get a sense of

Speaker 1

it, but maybe just want

Speaker 3

to hear from you kind of How are you thinking about the platform and the business overall once this corporate conversion is official? And how do you see this Changing maybe the management operations or strategy. Any color you can give on that?

Speaker 1

I think it is mostly conversion that will affect corporate governance, so the abolition of the The GP and the GP rights as well as the IDRs and whatnot, I don't think it will significantly change The strategy that we have already set out, I mean, already the partnership has moved away from the Contracted cash flow model, we now have acquired assets, a number of assets that have charters in place, But we also have a number of assets that do not have employment In what we perceive to be a very attractive period of time, given LNG fundamentals. So in terms, I think, of the shipping strategy, Already we have moved to a more mixed model, if you want, with both contracted cash flows and potential And I'll now turn the call back to I think to the distribution or the capital allocation policy, I think that's probably where you should Also to see changes, the MLP model is more rigid

Speaker 3

In a

Speaker 1

way, with asset distribution and Moving from there onwards, definitely CPLP going ahead Expects to remain a disciplined steward of investor capital and will consider We'll continue to be to have a balanced approach towards growth, debt repayment and distributions like we have done over The last few years, and we are going to definitely retain the $0.15 per unit until we set without the new capital allocation policy. But I think overall, the intention is to move to A floating dividend policy tied to a percentage payout of free cash flow generation and earnings. So that shareholders can participate in the potential Upside as we fix our vessels going forward. But I think the details of that are going to be carved out Once we have completed also the conversion of the partnership to incorporation and of course there is There are numerous parameters due to this, but we'll talk about that when I think we have more details.

Speaker 3

Okay. Sounds good. And look forward to that. And then just a final quick one for me. What's the right share count we should be using now pro form a or unit count Pro form a the rights offering and the backstop agreement.

Speaker 1

It's $55,300,000 I can keep the exact share count offline.

Operator

Our next question comes from Ben Nolan with Stifel. Please proceed with your question.

Speaker 4

Yes. Hi, Jerry. So, actually, I wanted to go back a little bit to the first part of the question or Omar's question. Can you help me understand what exactly is being negotiated? I don't think that IDRs are really a factor here.

Speaker 4

So how should we think about What is what's, I guess, being negotiated and how do you think about what that means From a monetary perspective, is there maybe just a little bit more detail on what that process looks like?

Speaker 1

So the conversion entails the abolition of the GP, which means that there will be A sale of the GP units to the partnership. The consideration, what is What will be negotiated, it's not being currently, will be the consideration for the Sale of these GP units. The GP units come with 2 things, the IDRs, which as you say are far off the money And certain corporate governance rights and control, There is a multitude of precedents out there in the space. I think really the what has to happen is the analysis of this precedence, what applies Here and what is really the value for the sale of these units, If any incrementally to the to their obvious economic value. The I should add that the consideration again the way that the consideration can be paid be it cash, Shares combination thereof is also something that could potentially discuss.

Speaker 1

So these are really the considerations around it. I cannot provide a framework because I mean, simply, I don't have one yet, but I think as soon as we have something that we can announce, We will happily do so. This is the idea. After all, we want to have this done sooner than later and behind us in order to move forward.

Speaker 4

Okay, that's helpful. And appreciating that you can't say what you don't know. So we'll See, but that ramming in is helpful. And then secondly, just curious, obviously, we've seen a pretty Sizable pullback in ONG spot rates here. Obviously, there's seasonality and everything else as you guys talk about.

Speaker 4

With respect to the new builds that are yet to be contracted, maybe could you talk to the appetite of Charters for they're obviously going to be world class assets that are high performing and everything else, but in a weaker environment, Has there been a change in the appetite for charters to contract those? And how are you thinking about the time frame Where we would expect to have employment locked in on this?

Speaker 2

Hi, Ben. I will take this, So, yes, from our point of view, we see a very strong appetite from charters to chartered vessels. Obviously, This is totally uncorrelated to the current market. We are talking about 2, 3 years ahead of time. We don't have a specific timeline.

Speaker 2

I mean, we expect to fix before delivery, let's say, that's our That's our timeline and this is a strategy that we have implemented in the past and it has been quite successful because we were able To capitalize effectively on the scarcity of slots and ships availability closer to delivery instead of competing with newbuilding slots. In terms of interest, we are seeing interest from all sorts of charters from Either from fleet replacement projects, which I think will be quite significant also going forward, but obviously from new projects that Seek to transport the new LNG that they will be producing.

Speaker 4

Okay. Have you I guess just a follow on. I know it's early, but has there been any change in the rate or maybe the tenure of contracts at all given the Sure. Spot weakness or is the market long term market sort of looking through that, D. C?

Speaker 4

As

Speaker 2

I told you, I think the long term market is Totally unrelated. The correlation a strong correlation for the long term market is the shipbuilding price, which as you know remains quite Robust and we don't see any reason for the sibling prices to reduce going forward either than I think most likely is to move a bit further upwards rather than downwards.

Speaker 1

So I

Speaker 2

think that's the main core. And also obviously interest rates is a big element to the price of to the rates that we are seeing on long term projects. So actually the trend for long term projects has been to for prices to increase. If you see, I think The last done on the year 10 year mark, we are talking about 6 digit charters.

Operator

Our next question is from Liam Burke with B. Riley Securities. Please proceed with your question.

Speaker 5

Thank you. Hi, Jerry. How are you today?

Speaker 1

Hi, Liam. I'm well. How are you?

Speaker 5

Good. Thank you. You sold the Long Beach. You're beginning to divest of the container Could you give us a sense as to the cadence? I mean, are you seeing a lot of interest, especially when you're looking at a Container fleet, it's probably going to have excess capacity for the next couple of years.

Speaker 1

That's a good question, Liam. Actually, We definitely have seen no lack of interest. Don't forget that Container owners and operators alike are coming from 2 years of an exceptional market, so balance sheets most balance sheets are quite loaded and people are seeking quality tonnage like ours. So far, we have had approaches for all our vessels, but we are Quite opportunistic in the way that we engage. We believe that dogmatic exits So I have no place in shipping and there have been examples of that.

Speaker 1

I think you have to make sure that you are getting proper value as a function of your contracted cash flows, expected cash flows and of course residual value. So in the end, we wouldn't mind keeping certain assets and just let them generate cash flow before not getting the proper price. But on the other hand, when we see what we perceive as a good valuation, we will be taking that. Having said that and to answer your first part of your question, I Expect that we will be able to announce more in the first half of twenty twenty four. But again, I don't want to commit to a specific timeline for divesting from all the assets.

Speaker 1

This is not the intention.

Speaker 5

That's certainly fair. And then on the Amore Mio One, you've got a period time charter for 3 years. Are you comfortable with that duration? Or would you Prefer it have been longer, understanding like rates are short term rates are a little softer. Why 3 years?

Speaker 5

Generally, I think that it would go a little longer.

Speaker 1

So the Amore Mio 1 had a very attractive charter in place. I mean, the just from these 3 years, we expect to generate Or until it is November 2026, right? So until November 2026, the vessel is expected to generate about 160 $2,000,000 of EBITDA. So that's better than many Long term charters in name place. And the other attraction of this So your deal is that the vessel is coming off charter right at the time when we think that there will be peak demand from new liquefaction projects.

Speaker 1

So it's really at the end of 'twenty six, which is for us a very good position. But really the reason that we fixed 3 years was the high rate. It was I think it was a very good trade off. Great. Thank you, Jerry.

Speaker 1

Thank you, Liam.

Operator

There are no further questions at this time. I'd like to turn the call back over to the CEO for closing comments.

Speaker 1

Thank you, Rob, and thank you all once again for listening in today.

Operator

This concludes today's conference. You may disconnect your lines at this time. And we thank you for your participation.

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Key Takeaways

  • On November 13, 2023, the partnership closed a $500 million rights offering and agreed to acquire 11 next-generation LNG carriers (deliveries from Q4 2023 to Q1 2027), taking delivery of Amore Mio 1 and Axios II in late December and early January.
  • Fourth quarter revenue rose to $95.5 million (vs. $79.9 million prior year) with net income of $12.7 million ($16.3 million ex-impairment) and a declared distribution of $0.15 per unit; fleet charter coverage stands at 100% for 2024 and 82% for 2025 with a $3.1 billion revenue backlog.
  • The company sold its Long Beach Express container vessel and plans opportunistic divestments of legacy container assets to focus on LNG and energy-transition shipping.
  • By June 21, 2024, CPLP aims to convert from a master limited partnership to a corporation with customary governance and will then define a new capital allocation policy, targeting a floating dividend tied to free cash flow.
  • LNG market fundamentals are expected to tighten in 2026-28 as new liquefaction capacity comes online, underpinning strong demand and healthy charter rates for modern vessels amid a limited orderbook.
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Earnings Conference Call
Capital Clean Energy Carriers Q4 2023
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