acquisition of three dual fuel lng carriers

Acquisition of Three Dual Fuel

LNG Carriers

Capital Product Partners L.P.

September 1, 2021

www.capitalpplp.com

Important Notice

This presentation contains forward-looking statements (as such term is defined in Section 21E of the Securities

Exchange Act of 1934, as amended). These statements can be identified by the fact that they do not relate only

to historical or current facts. In particular, forward-looking statements include all statements that express

forecasts, expectations, plans, outlook, objectives and projections with respect to future matters, including,

among other things, the expected financial performance of CPLP’s business following the acquisition, CPLP’s

expectations or objectives regarding future distributions, and market and charter rate expectations. These

forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to

be materially different from those anticipated. For a discussion of factors that could materially affect the

outcome of forward-looking statements and other risks and uncertainties, see “Risk Factors” in CPLP’s annual

report on Form 20-F filed with the SEC on April 27, 2021. Any forward-looking statements made by or on

behalf of CPLP speak only as of the date they are made. Unless required by law, CPLP expressly disclaims any

obligation to update or revise any of these forward-looking statements, whether because of future events, new

information, a change in its views or expectations, to conform them to actual results or otherwise. CPLP does

not assume any responsibility for the accuracy and completeness of the forward-looking statements. You are

cautioned not to place undue reliance on forward-looking statements.

Non-GAAP Measures

This presentation contains non-GAAP measures, including Operating Surplus after Reserves and

EBITDA. Operating Surplus after Reserves is a quantitative measure used in the publicly traded partnership

investment community to assist in evaluating a partnership’s financial performance and ability to make

quarterly cash distributions. It should not be considered a measure of profitability or liquidity. We define

Operating Surplus after Reserves as EBITDA less Debt Amortization and Interest Cost. We define EBITDA as

Revenue less Operating Expenses and SG&A. These definitions may differ from similarly titled measures used

by other companies and MLPs. These measures are not required by accounting principles generally accepted in

the United States and should not be considered a substitute for net income, cash flow from operating activities

and other operations or cash flow statement data prepared in accordance with accounting principles generally

accepted in the United States.

▪ LNG / Natural Gas are core growing components of the global energy mix.

− Gas to supply largest share - over 40% - of additional energy demand to 2035.

− LNG is the fastest growing gas supply source; market expected to double by 2040.

▪ Significant number of ships required to meet transportation needs of new gas infrastructure projects.

Participation in

Fast Growing

Transition

Energy Fuel

Attractive Deal

Economics

with High

Accretive

Transaction

▪ Acquisition price compares favorably to delivered newbuilding cost estimated today at $215+ million.

▪ Transaction attractively valued relative to key metrics.

▪ Highly accretive on distributable cash flow per unit.

Acquisition

Enhances

Asset Base and

Business

Model

▪ Assumed attractive debt financing in place at no additional cost.

▪ Arranged $10.0 mil unsecured, non-amortizing, interest free Sellers’ credit for 12 months.

▪ Minimal new common equity issuance of $15.0 million.

▪ Secured further growth pipeline with optional LNG and container vessels.

Strategic and Transformative Acquisition

Attractive

Transaction

Financing &

Growth

Opportunities

▪ Increases contracted revenue by 86% and remaining charter duration to 4.6 years.*

▪ Diversification of Partnership’s revenue stream, as well as asset and customer base.

▪ Reduces the average fleet age of the Partnership to 8.8 years.

▪ Important step towards reducing the environmental footprint of the Partnership.

* We assume throughout this document the exercise of first two options (total 4 years per vessel) for the three vessels on charter to BP, including the one Optional Vessel, as the structure of the time charter party makes the exercise of these options highly likely.

2

Transaction Overview

3

Transaction Overview

4

High Specification, Latest

Technology LNGs

▪ Capital Product Partners to acquire 3 x 174,000 CBM latest generation X-DF LNG carriers of high specification

including extras of ~$5.0 million built at Hyundai Heavy Industries (“HHI”).

Employment▪ Average Charter Duration of 5.6 years to BP Gas Marketing Limited (“BP”) and Cheniere Marketing International LLP

(“Cheniere”) at an average daily rate of $67,630.

Acquisition PriceAristos I (built 2020): $203.0 million / Aristidis I (built 2021): $205.0 million / Aristarchos (built 2021): $191.5 million

Total: $599.5 million.

Financing

▪ $147.1 Cash at hand.

▪ Assumption of $427.4 million in financing arrangements with a blended cost of 2.64 bps + LIBOR.

▪ $15.0 million of CPLP common units to be issued to Seller at minimum price of $13.0 per unit.

▪ $10.0 million in interest free, non amortizing Sellers’ credit repayable within 12 months.

Optional Vessels

▪ 3 x 174,000cbm LNG sister vessels all built 2021 for total acquisition price of $623.0 million.

▪ Vessels employed to Cheniere, BP and Engie Energy Marketing Singapore Pte Ltd (“Engie”) at average daily rate of

$70,650 and remaining charter duration of 6.3 years.

▪ ~$442 million of debt in place at attractive terms.

▪ Option to be exercised by November 1, 2021 and can be executed individually for each vessel.

Right of First Offer Vessels

▪ 3 x 13,000 TEU eco container vessels under construction at HHI for delivery 4Q2022-2Q2023 with 10+2+2+2 years

employment to Hapag Lloyd Aktiengesellschaft (“Hapag Lloyd”).

▪ 3 x LNG carriers under construction at HHI for delivery 1Q2023-4Q2023.

▪ Partnership retains right of first offer on any proposed sale of each vessel.

Commercial & Technical

Management

▪ Capital Gas Ship Management Corp.

▪ Daily fee: $2,000 per day.

Highly Accretive Transaction

5

148.6 148.6

72.7

20

70

120

170

220

270

Existing Fleet Pro Forma Fleet

$Million Net Revenues

92.8 92.8

58.5

0

20

40

60

80

100

120

140

160

180


$Million EBITDA

* Financial figures basis last 12 months for the existing CPLP fleet. LNG vessels impact estimated basis on following assumptions: 12 months net revenues per day calculated at 362 days per year. OPEX estimated at $13,000 per day inclusive

of management fees. EBITDA: Net revenues less OPEX and SG&A. Operating Surplus after Reserves estimated as EBITDA less debt amortization and interest cost assuming 3M LIBOR of 0.13%. Annual debt amortization for the Aristos I

and the Aristarchos are calculated based on the average of the monthly principal installments from expected delivery to maturity. Annual interest cost are calculated based on the average debt of $143.1 million, $149.7 million and $121.8

million for the Aristos I, the Aristarchos and the Aristidis I respectively. Per unit pro forma Operating Surplus after Reserves is based on CPLP’s total units adjusted by the treasury stock units and the issuance of the new units.

52.7 52.7

17.7

6

16

26

36

46

56

66

76

86


$Million Operating Surplus after Reserves

Total: 221.3Total: 151.3

Total: 70.4

▪ Expected Annualized Revenue and EBITDA increase of 49% and 63%, respectively.

▪ 34% increase to pro forma Operating Surplus after Reserves or $0.90 per unit.

Significant Fleet Growth & Renewal

6* Book Value for existing CPLP fleet as of 30/6/2021 excluding vessel held for sale. LNG vessels impact estimated using acquisition prices.

602 602

600

0

200

400

600

800

1,000

1,200

1,400


$MillionFleet Book Value*

10.4

8.8

6.0

8.0

10.0

12.0


YearsFleet Age

Total: 1,202

Large Increase in Charter Coverage & Duration

7

Charter Profile

Expiry of Current Charters

Vessel Type

Dry Bulk

Containership

Containership

Containership

Containership

Containership

Containership

Containership

Containership

Containership

Containership

Containership

Containership

Containership

Containership

Containership

LNG Carrier

LNG Carrier

LNG Carrier

Charter Coverage Remaining Charter

Duration (Years)2021 2022 2023 2024 2025

Existing Fleet 94% 90% 87% 76% 46% 3.7

Pro forma Fleet 95% 92% 89% 80% 50% 4.6

Acquisition provides significant cash flow visibility from 2024 onwards, when existing CPLP fleet charters start to expire

Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 Sep-26 Sep-27

Cape Agamemnon

Adonis

Akadimos

Agamemnon

Archimidis

Hyundai Prestige

Hyundai Premium

Hyundai Paramount

Hyundai Privilege

Hyundai Platinum

Long Beach Express

Seattle Express

Fos Express

Athos

Aristomenis

Athenian

Aristarchos

Aristos I

Aristidis I

453.0 453.0

391.2

0

100

200

300

400

500

600

700

800

900


$Mil Contracted Revenue

Total: 844.2

Reducing Environmental Footprint

0

2

4

6

8

10

Annual Efficiency Ratio - AER per vessel

(gr CO2 / DWT * mile)

2020 2019 Fleet Average 2020 Fleet Average With LNGCs

Fleet AER

Average

reduced by

4%

▪ LNGs AER expected to be 23% lower vs. average AER for CPLP Fleet.

▪ Further reduction of environmental footprint since X-DF LNGCs do not have any SOx

& NOx emissions. 8

Fleet Evolution – Larger, More Efficient Vessels

9

0

10

20

30

40

50

60

70

80#

of

ves

sels

Hybrid Steam D/TFDE QMAX/FLEX MEGI/XDF

LNG 1.0

1st/2nd Generation Steam ~200 Vessels

LNG 2.0

3rd/4th Generation DFDE + QVessels ~230 Vessels

LNG 3.0

5th Generation MEGI /XDF~200

Vessels

Source: Poten

Attractive Acquisition Price

10* 174k two stroke LNGC carriers command significant premium (currently excess $15,000 per day) in chartering market due to significantly lower bunkers consumption, higher cargo intake and reduced boil off.

▪ Favorable average acquisition price compared to current LNG newbuilding prices of $205+ for

delivery 2024 (delivered cost is estimated +$10 million).

▪ Low entry point in historical context.

170

180

190

200

210

220

230

240

250

Jan

-06

Ju

l-06

Jan

-07

Ju

l-07

Jan

-08

Ju

l-08

Jan

-09

Ju

l-09

Jan

-10

Ju

l-10

Jan

-11

Ju

l-11

Jan

-12

Ju

l-12

Jan

-13

Ju

l-13

Jan

-14

Ju

l-14

Jan

-15

Ju

l-15

Jan

-16

Ju

l-16

Jan

-17

Ju

l-17

Jan

-18

Ju

l-18

Jan

-19

Ju

l-19

Jan

-20

Ju

l-20

Jan

-21

Ju

l-21

Million of USD145/150,000-cbm Steam

155/160,000-cbm TFDE

174,000-cbm MEGI/XD-F

Qatar21%

Australia21%

USA13%

Malaysia7%

Nigeria5%

Indonesia5%

Russia West5%

Other exporters23%

Japan15%

China18%

Pak, Bangla, other Asian emerg countries

15%Spain, France, UK8%

South Korea8%

Other EU countries10%

India8%

Taiwan5%

Middle East & Turkey4%

Americas4%

LNG-as-Fuel2%

Other importers2% Qatar

21%

Australia16%

USA19%

Malaysia6%

Nigeria5%

Indonesia4%

Russia West8%

Other exporters20%

LNG TRADE GROWTH

2021-2030

Rapidly Growing Market

11

0

100

200

300

400

500

600

700

800

900

bcm

Africa-Pacific Asia-Pacific ME-PacificAmericas-Pacific Others Americas-AtlanticAfrica-Atlantic ME-Atlantic Russia-Pacific

LNG Trade Forecast Per Route

Source: IGU 2021 Annual Report

Favorable Market Re-entry Point

12

LNG Shipping Supply/Demand Forecast

Source: SSY

Firm Charter

Period End

21 24

14 137

1210

1

1

11

5

5

2

3

1

12

1

0

5

10

15

20

25

30

35

40

45

2021 2022 2023 2024 2025

NO

OF

VE

SS

EL

S

DFDE

N/A

MEGI

TFDE

MEGA

X-DF

Orderbook Per Shipyard & Propulsion

▪ Demand & Supply Balance expected to remain favorable beyond charters’ expirations.

▪ Limited number of shipyards, shipyard capacity and construction lead-time limit supply.

Optional & Right of First Offer Vessels

13

Optional LNG Fleet Profile

14

Vessel Name Attalos Adamastos Asklipios

Delivery Aug-21 Aug-21 Sept-21

Charterer

Maximum Charter Duration (Years) 13 7 6

Remaining Charter Duration (Years) 6.3

Average Price $207.7 Million

Approximate Average Rate $70,650 per day

Current Debt In Place $443.0 Million

Estimated Additional Capital

Required$181.1 Million

Option Declarable by November 1, 2021

Right of First Offer

Vessel Name Type TEU / CBM Delivery YardMaximum Charter

Duration*Charterer

Asterix I LNG Carrier 174,000 CBM Jan-23 HHI - -

H3315 / TBN LNG Carrier 174,000 CBM Oct-23 HHI - -

H3316 / TBN LNG Carrier 174,000 CBM Dec-23 HHI - -

Aelios Container Carrier 13,278 TEU Oct-22 HHI 16 Years

Archilochos Container Carrier 13,278 TEU Jan-23 HHI 16 Years

Alkidis Container Carrier 13,278 TEU May-23 HHI 16 Years

* Including options

15

▪ Ultra modern, energy efficient fleet with reduced carbon footprint.

▪ Long term employment in place for the container vessels to a reputable counterparty.

APPENDIX

16

High Specification, Latest Generation LNG Carriers

17

ARISTOS I ARISTARCHOS

Nov-2020 June-2021Jan-2021

(Up to 12 years)

ARISTIDIS I

(Up to 6 years)(Up to 12 years)

Name:

Delivery:

Charterer:

Charter Duration:

▪ Cargo capacity: 174,000 CBM

▪ Low unit freight cost

▪ Able to transit New Panama Canal

locks

▪ Compatible with almost all terminals

▪ Trading flexibility as the 174k class will

be readily acceptable within the long-

haul spot market trade

▪ Propulsion: X-DF

▪ Full-redundancy & simplified

FGSS

▪ Safety in low pressure system

▪ Tier III compatible in gas mode;

use of SCR in oil mode

▪ Air Lubrication System

▪ Gas Chromatograph

Specification

Highlights:

Employment Details

18

Vessel ChartererFirm

Period

Optional

Period 1

Optional

Period 2

Optional

Period 3

Aristos I Oct/23Oct/25 –

Oct/27Oct/29 Oct/32

Aristidis I Dec/23Dec/25 –

Dec/27Dec/29 Dec/32

Aristarchos Feb/25 Feb/26 Feb/27

YearLNGCs Contracted

Revenue (USD million)

Average Net Daily

Rate (USD/Day)

2021

(9/1 – 12/31)$27.8 $75,917

2022 $82.4 $75,293

2023 $80.5 $73,498

2024 $68.5 $62,401

2025 $48.1 $61,925

Thereafter $83.9 $61,946

*Assumptions: 362 revenue days per year based on gross rates and earliest redelivery dates except for vessels on charter to BP where first two set of options are included due to the structure of the charter.

Debt Financing Terms

19

Financing Terms (USD million):

Vessel Name Aristos I Aristarchos Aristidis I

Bank / Leasing Company

Debt Amount (On Closing) $148.9 $155.5 $123.0

Maturity 7y 7y 7y

Interest Rate L + 2.70% L + 2.70% L + 2.50%

Annual Amortization$12.7

$9.5 (from 4Q23)

$12.6

$9.3 (from 2Q24)

$9.7

$6.7 (from 1Q24)

Amortization Profile Monthly Monthly Quarterly

Debt Profile

20

$0

$50

$100

$150

$200

$250

2H/2021 2022 2023 2024 2025 2026 2027

Debt Repayment Schedule (USD Mil)

HCOB Facility CMB HCOB Facility (Athenian)

ICBC CMB (Panamaxes) Aristos I Facility

Aristidis I Facility Aristarchos Facility Seller’s Credit

* Basis third party charter free appraisals obtained for CPLP and LNG fleet in June 2021.

▪ Pro Forma debt at $784.9 million as of 30 June 2021.

▪ Pro Forma gross LTV as of June 30, 2021 at 44.4% basis charter free fleet fair market value*

Capital Product Partners L.P.

acquisition of three dual fuel lng carriers

Documents