Company Overview - Knot Offshore (KNOP) is a notable stock within the Transportation sector, which consists of 131 individual stocks and ranks 15 in the Zacks Sector Rank [2] - The company currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Analysis - Year-to-date, Knot Offshore has returned approximately 13.9%, significantly outperforming the Transportation sector's average return of -3.5% [4] - Another stock in the Transportation sector, Freightcar America (RAIL), has also shown strong performance with a year-to-date return of 14% [4] Earnings Estimates - The Zacks Consensus Estimate for Knot Offshore's full-year earnings has increased by 6% over the past three months, reflecting improved analyst sentiment [3] - In comparison, Freightcar America's current year EPS estimate has risen by 3.5% during the same period [5] Industry Context - Knot Offshore is part of the Transportation - Shipping industry, which includes 42 individual companies and currently ranks 233 in the Zacks Industry Rank [5]

Core Viewpoint - Knot Offshore (KNOP) shares have experienced a significant increase of 8.1% to $5.89, following a period of 7% loss over the past four weeks, indicating a potential turnaround in stock performance driven by market optimism [1][2]. Group 1: Company Performance - Knot Offshore is expected to report quarterly earnings of $0.04 per share, reflecting a year-over-year increase of 125%, with revenues projected at $76.41 million, up 4.6% from the previous year [3]. - The consensus EPS estimate for Knot Offshore has been revised 300% higher in the last 30 days, suggesting a positive trend that may lead to further price appreciation [4]. Group 2: Market Context - The recent rally in Knot Offshore's stock is attributed to favorable conditions in the tanker market, with product tanker rates remaining healthy despite minor fluctuations, alongside a recovery in global trade as COVID-19 restrictions are lifted [2]. - Knot Offshore operates within the Zacks Transportation - Shipping industry, where another company, Star Bulk Carriers (SBLK), has seen a decline of 11.3% over the past month, closing at $15.50 [4].

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $76.3 million, with an operating income of $17.2 million and a net loss of $3.8 million. Adjusted EBITDA was reported at $45.1 million [6] - The company closed Q3 with $77 million in available liquidity, consisting of $67 million in cash and cash equivalents plus $10 million in undrawn capacity on credit facilities [6] - The partnership operated with a utilization rate of 98.8% [7] Business Line Data and Key Metrics Changes - The company announced several charter extensions and new contracts, including the Ingrid Knutsen charter with Eni for two years and the Hilda Knutsen charter for one year starting March 2025 [13][19] - The swap of Dan Cisne for Tuva Knutsen brought seven years of fixed charter revenue, enhancing fleet and pipeline growth without requiring new funding [12] Market Data and Key Metrics Changes - The company anticipates significant growth in production fields serviced by shuttle tankers, with around 11 newbuilds on order [8] - The Brazilian market shows strong demand dynamics, with significant committed demand growth expected from new FPSOs requiring shuttle tanker services [22][24] Company Strategy and Development Direction - The partnership's strategy focuses on securing additional contract coverage for its existing fleet and enhancing liquidity [22] - The company aims to maintain a strong contracted revenue position, which stood at $980 million at the end of Q3, with an average contract duration of 2.8 years [10] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook on industry dynamics and the partnership's positioning to benefit from anticipated market growth [8] - The company noted that while operating expenses increased due to general inflation and higher crewing costs, they expect to recover some costs through insurance claims related to repairs [50][64] Other Important Information - The company reported a slight increase in overall liabilities due to the completion of the Tuva acquisition, while continuing to make contractual debt repayments of approximately $90 million per year [15] - The partnership's debt facilities are primarily secured by vessels, with $907 million out of $947 million in debt facilities secured [18] Q&A Session Summary Question: How much of the OpEx increase was related to the Torill repair? - Management indicated that the repair accounted for under half of the OpEx increase, likely around a quarter [34] Question: How do the new charters compare to previous levels? - Management stated that the new contracts reflect current market conditions, with rates generally improving [49] Question: What factors contributed to the increase in operating expenses year-on-year? - Increased costs were attributed to higher crewing expenses and general inflationary pressures [51] Question: What is the expected run rate for OpEx in Q4? - Management suggested that the Q3 run rate could serve as a good guide for Q4 [62] Question: Will the revolvers be renewed, and what is the expected timeframe? - Management expects to seek renewal of the revolvers, with discussions likely occurring in the first half of next year [68] Question: Can you provide insight into the dividend and potential buybacks? - Management acknowledged the need to rebuild the visible charter pipeline before considering dividend increases or buybacks [95] Question: What is the current hedging strategy regarding interest rates? - Management indicated that they are cautious about entering new swaps at high rates and expect to reduce the hedged portion of debt significantly in 2025 [108]

Financial Performance - Generated total revenues of $76.3 million in Q3 2024, an increase from $74.4 million in Q2 2024, driven by higher charter and bareboat revenues[10] - Adjusted EBITDA for Q3 2024 was $45.1 million, with a net loss of $3.8 million compared to a net loss of $12.9 million in Q2 2024[4][10] - Total revenues for Q3 2024 reached $76.292 million, compared to $72.683 million in Q3 2023, marking a year-over-year increase of 4.5%[27] - Net income for the three months ended September 30, 2024, was a loss of $3,773,000 compared to a profit of $12,641,000 for the same period in 2023[39] - Net income for the nine months ended September 30, 2024, was a loss of $9,185 thousand, compared to a loss of $29,046 thousand for the same period in 2023, indicating an improvement in performance[36] - Adjusted EBITDA for the nine months ended September 30, 2024, was $138,025,000, slightly down from $139,992,000 in the same period of 2023[39] Operational Performance - Fleet utilization was 98.8% for scheduled operations in Q3 2024, maintaining strong operational performance[5] - The average margin paid on outstanding debt during Q3 2024 was approximately 2.26% over SOFR, with total interest-bearing obligations of $947.3 million[12] - Vessel operating expenses increased to $29.453 million in Q3 2024 from $23.164 million in Q3 2023, reflecting a rise of 27.1% year-over-year[27] - Depreciation expenses remained stable at approximately $27,902,000 for the three months ended September 30, 2024, compared to $27,472,000 in 2023[39] Liquidity and Capital Structure - As of September 30, 2024, the Partnership had $77.2 million in available liquidity, including $67.2 million in cash and cash equivalents[11] - Cash and cash equivalents increased from $63,921 thousand at the beginning of the period to $67,225 thousand at the end, reflecting a growth of approximately 3.8%[36] - Long-term debt decreased from $857,829 thousand to $766,895 thousand, a reduction of approximately 10.6%[33] - Current liabilities increased significantly from $127,577 thousand to $209,889 thousand, marking an increase of approximately 64.4%[33] - The total partners' capital decreased from $523,169 thousand at December 31, 2023, to $506,178 thousand at September 30, 2024, a decline of approximately 3.2%[34] Market Outlook - The outlook for the offshore oil market in Brazil is improving, with robust demand and increasing charter rates driven by Petrobras' high production levels[7] - The medium and long-term outlook for the shuttle tanker market remains favorable, supported by committed capital from industry participants and supply-demand factors[22] - Shuttle tanker demand in the North Sea has been subdued due to COVID-19-related project delays, with expectations for improvement as new oil production projects come online[21] Charter Contracts and Fleet Management - The Partnership has secured just under 96% of charter coverage for the whole of 2024, indicating strong demand in the market[6] - The charters for Tordis Knutsen and Lena Knutsen were extended by one year, with options to extend for up to three additional years, now running until 2028[4] - The Partnership has entered into multiple long-term charter contracts with Petrobras, including a new fifteen-year contract for a vessel to be delivered in late 2025 and three ten-year contracts for vessels expected to be delivered between 2026 and 2027[25] - The Partnership plans to build liquidity and maintain long-term visibility from its charter contracts to capitalize on an improving shuttle tanker market[22] Impairment and Expenses - The company recorded an impairment of $16,384 thousand for the nine months ended September 30, 2024, compared to $49,649 thousand for the same period in 2023, indicating a significant reduction in impairment losses[36] - Interest expense decreased to $16,857,000 for the three months ended September 30, 2024, from $18,493,000 in the same period of 2023[39] - Impairment charges for the nine months ended September 30, 2024, were $16,384,000, down from $49,649,000 in the same period of 2023[39] Future Strategies - The company anticipates growth strategies focused on expanding its market presence and enhancing operational efficiencies[43] - KNOT Offshore Partners is exploring opportunities for long-term charters of five years or more to stabilize revenue streams[43] - Future capital expenditures are planned to enhance fleet capabilities and operational capacity[44] - KNOT Offshore Partners is committed to maintaining long-term relationships with major users of shuttle tonnage to ensure consistent demand[44]

Group 1: Company Overview - KNOT Offshore Partners LP (KNOP) is experiencing positive momentum due to the bullish tanker market and a shareholder-friendly approach, leading to impressive share performance [1] - KNOP's shares have appreciated significantly, gaining 27.6% over the past six months, outperforming the industry growth of 9.7% [2] Group 2: Financial Performance - The Zacks Consensus Estimate for KNOP's current-quarter earnings has increased by 50% in the last 60 days, with a 75% upward revision for the December quarter, indicating strong broker confidence [4] - KNOP currently holds a Zacks Rank 1 (Strong Buy), reflecting its solid market position [4] Group 3: Industry Context - The tanker industry, to which KNOP belongs, has a Zacks Industry Rank of 91 out of 252, placing it in the top 36% of industries, which is crucial for stock performance [5] - The performance of the industry group significantly influences stock price movements, with strong groups likely to elevate mediocre stocks [5] Group 4: Growth Drivers - KNOP is benefiting from healthy product tanker rates and the normalization of economic activities post-COVID-19, which is enhancing its top-line performance [6] - Disruptions in maritime trade due to attacks by Yemen's Houthi militants have led KNOP to adopt longer shipping routes, resulting in increased freight rates and improved bottom line due to lower capacity [7]

Exhibit 99.1 KNOT OFFSHORE PARTNERS LP EARNINGS RELEASE—INTERIM RESULTS FOR THE PERIOD ENDED JUNE 30, 2024 Financial Highlights For the three months ended June 30, 2024 ("Q2 2024"), KNOT Offshore Partners LP ("KNOT Offshore Partners" or the "Partnership"): ● Generated total revenues of $74.4 million, operating income of $1.3 million and net loss of $12.9 million, after recording a combined $16.4 million non-cash impairment in respect of the vessels Dan Cisne and Dan Sabia. When adjusted to remove the impact ...

Company Overview - KNOT Offshore Partners LP (KNOP) is set to report its second-quarter 2024 results on September 4 before market open, with a Zacks Consensus Estimate for loss per unit remaining stable at 13 cents and revenues expected to decline 5.4% year over year to $69.8 million [1] Performance Expectations - The partnership's June-quarter performance is anticipated to reflect positive trends in the tanker market, with product tanker rates at healthy levels despite minor disruptions [2] - The normalization of economic activities and an increase in world trade following the lifting of COVID-19 restrictions are expected to enhance KNOP's top-line performance [2] Market Challenges - Recent attacks by Yemen's Houthi militants on vessels in the Red Sea have disrupted maritime trade, causing many shipping companies to halt transit through this route [3] - To ensure crew safety, KNOP is opting for a longer and more expensive route around the Cape of Good Hope instead of the Suez Canal, leading to increased freight rates due to reduced container availability [4] Cost Implications - While lower capacity is likely to have positively impacted the bottom line, rising oil prices and supply-chain issues are expected to have increased costs, potentially limiting bottom-line growth in the upcoming quarter [4] Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for KNOP this time, as the combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) does not increase the likelihood of exceeding estimates [5][6]

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Core Viewpoint - Knot Offshore (KNOP) is currently rated as a 1 (Strong Buy) stock with a Momentum Score of A, indicating strong potential for short-term price appreciation [2][6]. Performance Metrics - Over the past week, KNOP shares have increased by 12.7%, while the Zacks Transportation - Shipping industry has declined by 2.84% during the same period [6]. - In a longer time frame, KNOP's shares have risen by 33.21% over the past month, significantly outperforming the industry's 2.36% [6]. - Over the last quarter, KNOP shares have increased by 36.26%, and they are up 33.71% over the past year, compared to the S&P 500's gains of 5% and 26.33%, respectively [11]. Earnings Outlook - In the past two months, one earnings estimate for KNOP has been revised upward, while none have been revised downward, leading to an increase in the consensus estimate from -$0.31 to -$0.07 [7]. - For the next fiscal year, one estimate has moved upwards with no downward revisions in the same period [7]. Trading Volume - The average 20-day trading volume for KNOP is currently 147,533 shares, which serves as a useful baseline for price-to-volume analysis [3].