Thank you for standing by, and welcome to the Capital Product Partners’ Third Quarter 2022 Financial Results Conference Call. We have with us Mr. Jerry Kalogiratos, Chief Executive Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. [Operator Instructions] I must advise you this conference is being recorded today. The statements in today's conference call are not historical facts, including our expectations regarding cash generation, equity returns and future debt levels, our ability to pursue growth opportunities, our expectations or objectives regarding future distribution amounts, capital reserve amounts, distribution coverage, future earnings, capital allocation as well as our expectation regarding market fundamentals and the employment of our vessels, including redelivery dates and charter rates, may be forward-looking statements, as such as defined in Section 21E of the Securities Exchange Act of 1934 as amended. 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 assume no responsibility for the accuracy and completeness of the forward-looking statements. We make no predictions or statements about the performance of our common units. I would now like to hand over to your speaker today, Mr. Kalogiratos. Please go ahead, sir.

Good afternoon, 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. Since the end of the second quarter of 2022, we have completed a number of significant transactions for the partnership, including the successful issuance of a €100 million senior unsecured bond, the completion of the sale of two of our older container vessels, as well as acquisition of the first of four new building vessels we have agreed to acquire with long-term employment in place. Now turning to the partnership’s financial performance, net income of the third quarter of 2022 was 58.7 million compared with net income of 11.9 million for the third quarter of 2021. Our Board of Directors has declared the cash distribution of $0.15 per common unit for this quarter. And the third quarter cast distribution will be paid on November 10th to common unit holders of record on November 2nd. The partnerships operating surplus for the third quarter were 37.6 million or 7.8 million after the quarterly allocation to the capital reserve. During the third quarter of 2022, we repurchased 102,085of the partnerships common units and our unit buyback program at a number it is cost of $14.63 per unit. As of yesterday, and since intention of our program, we have acquired a total of 708,575 units at an average unit price of $15.36. Finally, the partnership charter covers for 2022 and 2023 stands at 95% and 92% respectively with the remaining charter duration corresponding to seven years that is including the four new build vessels we have agreed to acquire. Now turning to Slide 3. Revenue for the quarter was 71.9 million compared to 43.1 million during the third quarter of 2021. The increase…

[Operator Instructions] And our first question comes from the line of Omar Nokta with Jefferies. Please proceed with your question.

Thanks for the update. Just wanted to ask as you are split now basically between the container ship and LNG shipping, segments, we have been able to secure long-term contracts really across both having vessels on hand and in acquiring them with contracts. But just in terms of opportunities that are out there whether from the ability to secure charters or maybe the ability to acquire ships with attractive or at attractive price levels. Where are you spending more of your time currently and where do you see the opportunity? Is it an LNG obviously, you have outlined on Slide 12, the drop-down opportunities. All opportunities in LNG, but then also how about in containers, given the pull back in asset values? How do those look?

I think as far as containers are concerned the market seems to have stabilized as of the last couple of weeks and we have seen now increased activity. It feels like in terms of charter rates at least we have seen floor. It remains to be seen whether this is temporary or not. But I think this is a market that it is very much still in flux. Overall, and when it comes to long-term fundamentals, as I outlined in my prepared remarks, I think, there is a very positive story for the LNG carriers that goes much beyond, of course, the current energy crisis in Europe. That was never the main story in the first place. Their story was really was increased demand for LNG, LNG also being a transition fuel. The increased liquidation capacity that is predominantly coming online from 2026 onwards. They increased the demand that we were seeing, especially from the far east as China was moving away from coal. And I think what the - and of course we have now the added, if you want ingredient of energy security, which is new but very important and very important element in this. So when you look at the LNG market, it is also well suited for business model. You have long-term fixtures high quality counterparties you can typically fix forward as LNG carriers are fixed in relation to projects mostly. So I think that it is a good fit, and not to say the least it is also a good fit in the sense that we think it is - these vessels, the latest technology, LNG carriers are more future proof. Of course also, as you know, we have been divesting of the older container vessels and investing in new ship. So, this has been a very persistent, if you want threat of our policy. But I think at this point the LNG fundamentals and business structure looks more attractive to us, containers. I think we still have to see where prices and rates stabilize.

Thanks Jerry that makes sense and speaking of LNG, we have seen the reports that the Capital Maritime was able to secure a three year contract on one of the new buildings at a very attractive, very high rate. And just in terms of how, where CPLP stands, do you see the potential of acquiring those, say that one particular ship that was fixed for three years, does that you think look attractive to make its way into the structure or do you prefer to have a bit more longer term contract before that happens?

I think that is an interesting discussion to be had. I think we are ready to have this discussion. We still have another three vessels to acquire until May 2023. And this vessel that has been reported in the press fix for three years is not delivered before October 2023. So there is lot of things that can happen between now and then. Three years, typically, I would say is on the lower end that you would expect when you are looking at a brand new LNG vessel and the CapEx that comes with it, but it is also -I mean what was reported in the press is also quite high rate. Let us see where we are over the next couple of quarters, whether there will be an add on fixture on the back of this. And of course, it all depends on what will be the price and offer. So I think we still have some way to go, but if you ask me, sure. I think this is definitely, let's say the direction that we want to be growing with these type of assets in the LNG segment.

Okay, yes it makes sense and you still have plenty of time and you still have a few ships to bring on as well. Great, I will turn it over.

Thank you, Omar.

Next question comes from the line of Liam Burke with B. Riley. Please proceed with your question.

You have got multiple uses of your capital and you are effectively managing the addition of assets buying back of shares and then maintaining the unit payout. Do you see any shift in that strategy as you go forward or as you take deliveries, is there any thought process you are giving on how to adjust your allocation strategy?

I think as we have communicated in the past once we complete, the dropdowns we will - and we increase our cash flow. You should also expect that we will continue to increase the capital, return the unit holders through unit buybacks and or quarterly distributions. As I said before, I think we want to see the acquisitions completed as well as having a little more stable outlook, outlook with regard to interest rates before we revisit our capital allocation policy, but you should expect more news from us on this front, I think, next year. But overall, let's say and subject to the decision of our Board, we continue to intend to return to unit-holders about the fifth to a quarter of our free cash flow. And that will be the form of quarterly distributions as well as unit buybacks. So I think in that way, we can achieve balance solid - and solid total returns for our long-term unit holders. While effectively we continue to boost our earning per unit and ensure the long-term viability and cash flow generation capacity of the partners income. I think that is really the way that we see things. So to your point, let us wait closer to the transaction completion and I think we will again look at the capital allocation policy.

Great. Thank you. And on your fleet renewal program, you have been rather def in sort of increasing the value of the assets as well as reducing the average age of the fleet, increasing contracted cash flows. Are there any assets that you are looking at that may provide a source of cash for the renewal program or are you happy with what you have now?

I think, the one that is stands out mostly is the one dry bulk vessel that we have, the capital amendment. So that vessel still trades spot. The dry-bulk market, as has been quite volatile and especially the Cape size market. But we remain opportunistic about it will see a good exit point that will be, I guess the prime, candidate, but also the container assets in general especially the older assets, but opportunistically also the more modern ones as we have done in the past. If we see something that makes sense or looks like better returns compared to what we can do in the charter market, especially given, the use of the capital we have - the alternative use of capital that we have, we will look at it. But the priority, I think is more the cape size vessel.

Great. thank you Jerry.

Thank you Liam.

Next comes from the line of Benjamin Nolan with Stifel. Please proceed with your question.

This is [Makayla] (Ph) on for Ben. Thank you for taking our question. We just had a quick one. The sponsor has been a leader in ordering new LNG vessels and given the order book is pretty large at this point could you provide any color on what gets them comfortable in ordering at this point? Is it may be a need for slow speed, two-stroke vessels or any other insights could be helpful? Thank you.

No overall, that is certainly a very good question. First of all, I mean, as we highlighted, also in our prepared remarks, while there is a fairly large order book, most of these vessels are committed on long-term projects. Very few of these vessels that you see currently in the order book do not have an existing commitment. So when you look, let's say over the next couple of years, we are talking about a dozen ships that do not have employment currently. So that is one, don't forget that a lot of the big driver of this order book is just one charter Qatar Gas on the back of their own expansion. Now, the other main driver is of course the technology shift in propulsion and containment systems we have seen on the LNG side, and this is if anything has been amplified by the higher commodity price. Nowadays that the delta between, let's say two-stroke ships TFD ships and steam ships has been ever increasing as commodity price has been increasing due to the, of course, lower boil of that the two-stroke units can offer the lower bankers bill, but also the larger side. So the unit freight economics of two-stroke ships compared to all the technologies are really create effectively a three tier market. Depending on the price of the commodity, you can the real differential in terms in terms of unit freight costs can be more than $500,000 per day. Finally, there is the regulatory impact and the environmental impact, if you want the regulatory impact, the more strict regulatory impact means that with CXI and CII, all the technologies and especially steam ships will be impaired potentially with speed reductions and won't be able to compete. But also, the carbon footprint of many of those…

Great, thank you so much. I appreciate the time.

Thank you.

[Operator Instructions] We have reached the end of our question and answer session. Therefore, I will turn the call back over to Mr. Jerry Kalogiratosfor closing remarks.

Thank you all for joining us today.

And this concludes today's conference, and you may disconnect your lines at this time. Thank you and have a good day.