Knot Offshore Partners Lp Stock Earnings Reports

KNOT Offshore Partners reported Q1 2026 revenues of $92.0M, operating income of $14.7M, net income of $2.6M and Adjusted EBITDA of $56.5M. Available liquidity was $140.7M (cash $92.7M + $48.0M undrawn) — up slightly from year-end. Fleet utilization was 97.2% (92% including scheduled dry-docks). The Partnership declared and paid a cash distribution of $0.05 per common unit in May and said it has initiated the process of increasing distributions after a prolonged period of low payouts. Management changed vessel useful lives from 23 to 20 years effective Jan 1, 2026 (increasing future non-cash depreciation). Commercially, several charter actions were completed or extended (Hilda Knutsen continuation with Shell then a new Eni charter beginning Q3 2027; Anna Knutsen one-year extension with TotalEnergies; Recife Knutsen chartered with Transpetro starting Q3 2026 for two years). Backlog stood at $858M of fixed contracts, averaging 2.4 years (more if options exercised), and management expects many options to be exercised given market strength. The Partnership continues to pursue sponsor dropdown acquisitions over the next 4–5 years as an avenue for accretive growth, and management expects a combination of dropdowns plus a stronger charter market to support multiple gradual increases to the sustainable distribution. Financial posture highlights: roughly $90M/year of debt paydown, upcoming refinancing needs (a $220M facility in Sept 2026 and a $65M facility in Oct 2026), and an average Q1 floating-rate debt margin of 2.22% over SOFR. Key risks noted: forward-looking assumptions, market uncertainty, and non-cash impact from the shorter useful life estimate.