Head to Head Review: Dynagas LNG Partners (DLNG) versus PAA Natural Gas Storage (PNG)

PAA Natural Gas Storage (NYSE: PNG) and Dynagas LNG Partners (NYSE:DLNG) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Earnings and Valuation

This table compares PAA Natural Gas Storage and Dynagas LNG Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PAA Natural Gas Storage N/A N/A N/A $0.92 N/A
Dynagas LNG Partners $169.85 million 2.27 $41.40 million $0.58 18.72

Dynagas LNG Partners has higher revenue and earnings than PAA Natural Gas Storage. PAA Natural Gas Storage is trading at a lower price-to-earnings ratio than Dynagas LNG Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for PAA Natural Gas Storage and Dynagas LNG Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PAA Natural Gas Storage 0 0 0 0 N/A
Dynagas LNG Partners 0 3 2 0 2.40

Dynagas LNG Partners has a consensus target price of $15.00, indicating a potential upside of 38.12%.

Institutional & Insider Ownership

17.4% of Dynagas LNG Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.


Dynagas LNG Partners pays an annual dividend of $1.69 per share and has a dividend yield of 15.6%. PAA Natural Gas Storage does not pay a dividend. Dynagas LNG Partners pays out 291.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.


This table compares PAA Natural Gas Storage and Dynagas LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PAA Natural Gas Storage N/A N/A N/A
Dynagas LNG Partners 18.63% 15.57% 3.97%


Dynagas LNG Partners beats PAA Natural Gas Storage on 7 of the 9 factors compared between the two stocks.

About PAA Natural Gas Storage

PAA Natural Gas Storage, L.P. is engaged in the business of acquisition, development, ownership, operation and commercial management of natural gas storage facilities. As of December 31, 2012, the Company owned and operated three natural gas storage facilities located in Louisiana, Mississippi and Michigan. The Company also leases storage capacity and pipelines transportation capacity from third parties. The Company provides natural gas storage services to a mix of customers, including local gas distribution company’s liquefied natural gas (LNG), electric utilities, pipelines, direct industrial users, electric power generators, marketers, producers, LNG exporters and affiliates of such entities. In December 31, 2013, Plains All American Pipeline, L.P. (Plains) completed the merger of PAA Natural Gas Storage, L.P with a wholly owned subsidiary of Plains, with Plains surviving the merger as a wholly owned subsidiary of PAA.

About Dynagas LNG Partners

Dynagas LNG Partners LP is a limited partnership, which focuses on owning and operating liquid natural gas (LNG) carriers. The Company’s vessels are employed on multi-year time charters with international energy companies. As of December 31, 2016, the Company owned and operated a fleet of six LNG carriers, consisting of the three LNG carriers in its Initial Fleet, the Clean Energy, the Ob River and the Amur River, and three 2013-built Ice Class LNG carriers that the Company acquired from its Sponsor the Arctic Aurora, the Yenisei River, and the Lena River (collectively referred as its Fleet). The vessels in its Fleet have an average age of 6.6 years and are contracted under multi-year charters with Shell, Gazprom, Statoil and Yamal with an average remaining charter term, as of March 17, 2017, of approximately 10.6 years, including the charter agreements relating to the Yenisei River and the Lena River with Yamal. The Company’s Fleet is managed by its manager, Dynagas Ltd.

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