# 6-K exhibit

- Source: edgar · Published: 2026-05-28 · Kind: report
- Original: https://www.sec.gov/Archives/edgar/data/1564180/000110465926067518/knop-20260528xex99d1.htm

**TL;DR —** KNOT Offshore Partners LP reported Q1 2026 net income of $2.6 million, a significant improvement from the prior quarter's loss, driven by stable revenues, improved utilization, and strategic charter extensions, despite increased depreciation from a reduced vessel useful life estimate.

## Takeaways
*   **Net Income Rebound:** KNOP reported Q1 2026 net income of $2.6 million, a substantial recovery from a net loss of $6.2 million in Q4 2025 (or $14.0 million adjusted for impairment), primarily due to the absence of impairment charges and stable operational performance.
*   **Stable Revenue & Improved Utilization:** Total revenues were $92.0 million in Q1 2026, slightly down from $96.5 million in Q4 2025, but fleet utilization improved to 97.2% for scheduled operations (92.0% including drydockings), indicating strong operational efficiency.
*   **Increased Depreciation Impact:** Depreciation expense rose to $41.9 million in Q1 2026 from $30.6 million in Q4 2025, mainly due to a reduction in the estimated useful life of vessels from 23 to 20 years, effective January 1, 2026.
*   **Liquidity and Debt Refinancing:** Available liquidity increased to $140.7 million ($92.7 million cash, $48.0 million undrawn RCF) at March 31, 2026. The Partnership anticipates refinancing $225.8 million and $65.9 million in senior secured loan facilities maturing in September and October 2026, respectively.
*   **Strategic Chartering and Market Outlook:** KNOP secured 100% charter coverage for H1 2026, 97% for H2 2026, and 81% for 2027, driven by a tightening shuttle tanker market in Brazil and the North Sea, with management anticipating future accretive dropdowns and distribution increases.
*   **KNOT Offer Termination:** Discussions regarding Knutsen NYK's unsolicited non-binding proposal to acquire all publicly held common units for $10 in cash per unit were terminated on March 19, 2026, as parties could not reach an agreement.

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