# 6-K exhibit

- Source: edgar · Published: 2026-09-03 · Kind: report
- Original: https://www.sec.gov/Archives/edgar/data/1564180/000110465926105067/knop-20260903xex99d1.htm

**TL;DR —** KNOT Offshore Partners LP reported increased Q2 2026 revenues and net income driven by higher loss-of-hire recoveries and fewer drydockings, while strategically expanding its fleet and securing long-term charters amidst a tightening shuttle tanker market.

## Takeaways
*   **Strong Q2 2026 Financials:** Total revenues increased to $96.8M (vs. $92.0M in Q1 2026), operating income rose to $15.6M (vs. $14.7M), and net income grew to $3.4M (vs. $2.6M), primarily due to $1.9M in loss-of-hire recoveries and fewer drydocking days.
*   **Fleet Utilization & Maintenance:** Fleet utilization for scheduled operations was 96.8% in Q2 2026, dropping to 92.4% when including the scheduled drydocking of the *Fortaleza Knutsen*; the *Tordis Knutsen* was off-hire from Feb-May 2026 due to a diesel generator breakdown, receiving $1.9M in Q2 loss-of-hire insurance.
*   **Strategic Fleet Expansion & Charter Extensions:** KNOP acquired the *Hedda Knutsen* for $24.4M (net of $89.4M debt) on Sept 1, 2026, a vessel chartered to Petrobras until Nov 2034; secured new charters for *Hilda Knutsen* (3 years with Eni from June 2027) and *Ingrid Knutsen* (3 years with Eni from Oct 2026), and extensions for *Live Knutsen* (3 years with Galp Sinopec until Dec 2029) and *Synnøve Knutsen* (2 years with Equinor until Feb 2029).
*   **Refinancing & Liquidity:** Available liquidity stood at $143.3M as of June 30, 2026, an increase of $2.6M from Q1; refinanced $225.8M in existing term loans for five vessels with a new $225M senior secured credit facility maturing in June 2031 at SOFR + 1.65%.
*   **Market Outlook & Dropdown Strategy:** Management anticipates continued shuttle tanker market improvement, especially in Brazil and the North Sea, driven by increasing offshore oil production and a limited newbuild orderbook, expecting to pursue accretive "dropdown" acquisitions from Knutsen NYK over the next 4-5 years to support cash flow and distribution increases.

*Generated 2026-11-12 via google/gemini-2.5-flash*