Financial Performance and Debt Management - The quarterly cash distribution was reduced to $0.026 per common unit, which may impact the company's ability to raise capital [32]. - Consolidated debt as of December 31, 2024, was approximately $909.7 million, limiting the company's flexibility in obtaining additional financing [39]. - Approximately $256.7 million of the company's debt is due to be repaid or refinanced in 2025 [40]. - The company's ability to service or refinance its debt is dependent on its current and future financial performance, which may be affected by economic conditions [41]. - Financing agreements require the company to maintain certain financial ratios, including positive working capital and a minimum liquidity [43]. - The company’s debt level may limit its flexibility in responding to changing business and economic conditions [44]. - The company can borrow money to pay distributions, which may reduce available credit for operational needs [167]. - Unitholders may have liability to repay distributions under certain circumstances, particularly if distributions exceed the fair value of assets [171]. Revenue Sources and Customer Dependence - The company relies on 13 customers for all of its time charter and bareboat revenues, indicating a lack of diversification [26]. - The company derives all of its time charter and bareboat revenues from 13 customers, with key customers accounting for approximately 24%, 17%, 14%, 13%, 9%, and 8% of revenues respectively [59]. - In 2024, subsidiaries of KNOT accounted for $28 million of the company's time charter revenues [64]. - Major customers include Shell (24%), Equinor (17%), Transpetro (14%), Repsol (13%), KNOT (9%), and TotalEnergies (8%), accounting for a significant portion of revenues for the year ended December 31, 2024 [218]. Operational Challenges and Costs - The company anticipates incurring at least 112 off-hire days due to scheduled drydockings in 2025, which could adversely affect cash available for distribution [36]. - The company must make substantial capital expenditures to maintain fleet operating capacity, which reduces cash available for distribution [35]. - The required drydocking of vessels could be more expensive and time-consuming than anticipated, impacting cash flow [36]. - The company experienced significant increases in costs for fuel, logistics, and crewing due to supply chain disruptions and inflation, impacting its financial condition [72]. - Supply chain constraints and labor shortages have led to higher operational costs, which may impact the company's ability to hire and retain crew and procure materials [72]. - The company may face operational problems with vessels that could reduce revenue and increase costs [55]. - The company anticipates ongoing supply chain pressures and inflationary impacts on its cost structure, which may affect its operations and financial results [72]. Market and Economic Conditions - The company’s growth depends on the demand for shuttle tanker transportation services, which is influenced by macroeconomic conditions and oil prices [26]. - Persistent low oil prices may adversely affect the company's growth prospects and ability to make cash distributions, with macroeconomic conditions like rising inflation and interest rates posing additional risks [68]. - Adverse economic conditions may impair customers' ability to pay for services, leading to decreased demand for the company's vessels and negatively impacting revenue [73]. - An increase in global shuttle tanker capacity without a corresponding increase in demand may adversely affect hire rates and vessel values, impacting the company's financial condition [79]. Regulatory and Compliance Risks - The International Maritime Organization (IMO) aims for a 40% reduction in carbon intensity for international shipping by 2030, compared to 2008 levels [1]. - The 2023 IMO GHG Strategy targets net-zero GHG emissions from international shipping by around 2050, with a goal of at least a 20% reduction in total annual GHG emissions by 2030 [1]. - Compliance with new climate-related regulations may increase operational costs and require installation of new emission controls [2]. - The SEC proposed rules requiring public companies to disclose material climate-related risks and GHG emissions, which could lead to increased compliance costs [4]. - The company may face reputational damage and financial impacts due to increased scrutiny on its Environmental, Social, and Governance (ESG) practices [3]. - Increased costs and risks associated with climate change regulations may hinder access to capital and affect investor relationships [3]. - Compliance with extensive environmental regulations, such as the IMO 2020 sulfur cap, may significantly increase operational expenses [112]. Corporate Governance and Ownership Structure - KNOT owns 28.4% of the company's common units and all Class B Units, creating potential conflicts of interest [137]. - The partnership agreement limits unitholders' voting rights, with only four out of seven board members elected by common unitholders [135]. - The partnership agreement allows KNOT to make decisions in its individual capacity, potentially favoring its interests over those of the company [143]. - Common unitholders are entitled to elect only four of the seven members of the board of directors, with the remaining three appointed by the general partner [1]. - The partnership agreement limits unitholders' ability to call meetings, nominate directors, and acquire operational information, which may diminish their influence [1]. Strategic Growth and Future Prospects - The company aims to generate stable cash flows and provide sustainable quarterly distributions to unitholders through strategic acquisitions and long-term charters [210]. - The company has established relationships with leading energy companies, which are expected to provide attractive opportunities for future growth [210]. - The company intends to expand operations in high-growth regions, particularly in the North Sea and Brazil [210]. - The company has a history of acquiring shuttle tankers, with significant acquisitions made from 2013 to 2025 [193][194][195][196][197][198][199][200][201][202]. Cybersecurity and Data Protection - A successful cyber-attack could materially disrupt the company's operations and lead to significant financial repercussions [130]. - Cybersecurity risks are increasing, requiring significant resources for protection and compliance with new regulations [132]. - The company is subject to evolving data protection laws, which may incur substantial compliance costs and legal liabilities [133]. - The company faces complex compliance challenges related to data privacy and cybersecurity laws, with potential penalties for noncompliance [133].

KNOT Offshore Partners LP (NYSE:KNOP) Q4 2024 Earnings Conference Call March 20, 2025 9:30 AM ET Company Participants Derek Lowe - Chief Executive Officer & Chief Financial Officer Conference Call Participants Liam Burke - B. Riley Poe Fratt - Alliance Global Partners Mario Epelbaum - First New York Climent Molins - Value Investor's Edge Operator Good morning and thank you all for attending the KNOT Offshore Partners Fourth Quarter 2024 Earnings Call. My name is Brica [ph] and I will be your moderator for t ...

Exhibit 99.1 KNOT OFFSHORE PARTNERS LP EARNINGS RELEASE—INTERIM RESULTS FOR THE PERIOD ENDED DECEMBER 31, 2024 Financial Highlights Derek Lowe, Chief Executive Officer and Chief Financial Officer of KNOT Offshore Partners LP, stated, "We are pleased to report another strong performance in Q4 2024, marked by safe operation at 98.3% fleet utilization from scheduled operations, consistent revenue and operating income generation, and material progress in securing additional charter coverage for our fleet. Start ...

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Knot Offshore (KNOP) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.Knot Offshore is one of 131 companies in the Transportation group. The Transportation group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank c ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation m ...

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Knot Offshore (KNOP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.Knot Offshore is one of 131 individual stocks in the Transportation s ...

Knot Offshore (KNOP) shares ended the last trading session 8.1% higher at $5.89. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7% loss over the past four weeks.KNOT Offshore extended its rally for the third straight day, driven by optimism surrounding the tanker market as product tanker rates are currently at healthy levels despite minor hiccups. Also, normalization of economic activities and an uptick in world t ...

KNOT Offshore Partners LP (NYSE:KNOP) Q3 2024 Earnings Conference Call December 5, 2024 9:30 AM ET Company Participants Derek Lowe - CEO and CFO Conference Call Participants Liam Burke - B. Riley Jim Altschul - Aviation Advisory Service Poe Fratt - Alliance Global Partners Pavel Oliva - RockHill Global Clement Mullins - Value Investor's Edge Fredrik Dybwad - Fearnley Securities Operator Good morning and thank you all for joining. I would like to welcome you all to the KNOT Offshore Partners' Third Quarter 2 ...

Exhibit 99.1 KNOT OFFSHORE PARTNERS LP EARNINGS RELEASE—INTERIM RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2024 Financial Highlights For the three months ended September 30, 2024 ("Q3 2024"), KNOT Offshore Partners LP ("KNOT Offshore Partners" or the "Partnership"): Other Partnership Highlights and Events EBITDA and Adjusted EBITDA are non-GAAP financial measures used by management and external users of the Partnership's financial statements. Please see Appendix A for definitions of EBITDA and Adjusted EBIT ...

KNOT Offshore Partners LP (KNOP) is benefiting from the bullishness surrounding the tanker market. Its shareholder-friendly approach bodes well for the company. Due to tailwinds, KNOP's shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it's time to do so. Let's delve deeper. Factors Favoring KNOP Stock Robust Price Performance: KNOT Offshore has gained 27.6% in the past six months, surpassing the industry's 9.7% growth. Zacks Investment Re ...