KNOT Offshore Partners LP Earnings Release — Interim Results for the Period Ended September 30, 2023

For the three months ended September 30, 2023( “ Q3 2023 ”), KNOT Offshore Partners LP( “ KNOT Offshore mates ” or the “ Partnership ”)

Generated total earnings of$72.7 million, operating income of$20.6 million and net income of$12.6 million.
Generated Acclimated EBITDA1 of$48.1 million
Reported$58.2 million in available liquidity, which included cash and cash coequals of$53.2 million at September 30, 2023.
Other Partnership Highlights and Events

Fleet operated with98.8 application for listed operations in Q3 2023, and97.4 application taking into account the listed drydockings of the Brasil Knutsen and the Hilda Knutsen, which were completed around the morning of Q3 2023.
On October 12, 2023, the Partnership declared a daily cash distribution of$0.026 per common unit with respect to Q3 2023, which was paid on November 9, 2023, to all common unitholders of record on October 26, 2023. On the same day, the Partnership declared a daily cash distribution to holders of Series A Convertible Preferred Units( “ Series A Preferred Units ”) with respect to Q3 2023 in an aggregate quantum of$1.7 million.
On November 15, 2023, the Partnership successfully closed the refinancing of the second of its two$ 25 million revolving credit installations, with the installation being rolled until November 2025 on analogous terms.
On September 13, 2023, a 100- day extension to the being bareboat duty party for the Dan Cisne was inked with Transpetro, extending the vessel’s fixed employment to late December 2023. The Partnership anticipates entering the Dan Cisne and Dan Sabia back via redelivery in December 2023 and January 2024 independently, following expiry of the being bareboat duty parties. The Partnership is continuing to vend both vessels for new, third- party employment and is in active conversations with both being boon and others, including the Partnership’s guarantor, Knutsen NYK Offshore Tankers AS( “ Knutsen NYK ”).
On October 30, 2023, Shell exercised its option to continue its duty of the Windsor Knutsen through to the first quarter of 2025. On September 26, 2023, the Partnership inked a new time duty contract for the Windsor Knutsen with an oil painting major to commence within the window from February 1, 2025 to May 1, 2025. The new duty is for a fixed period of two times and will see near- nonstop employment for this vessel through to the first half of 2027, subject to the exact dates for completion of the below duty to Shell and the launch of this new duty.
In order to make the Windsor Knutsen available for the below contract commencing in 2025, the Partnership sought and reached an agreement with Equinor to substitute the Brasil Knutsen into the time duty preliminarily due to employ the Windsor Knutsen commencing in the fourth quarter of 2024 or the first quarter of 2025. This time duty is for a fixed period, at the boon’s option, of either one time or two times, with options for the boon to extend the duty, in either case, by two farther one- time ages. The Brasil Knutsen is accordingly now employed until around the end of 2025 and, if all the boon’s options are taken, the vessel will be fixed until the end of 2028.
The Hilda Knutsen and the Torill Knutsen each continued to operate on separate time duty contracts with a attachment of Knutsen NYK at a reduced duty rate, with the contracts anticipated to continue on a rolling 30 day base, subject to applicable concession and the blessing of the Partnership’s Board and Conflicts Committee. The Partnership is continuing to vend both vessels for new, third- party time duty employment and is in active conversations with implicit boon, including Knutsen NYK.
The Bodil Knutsen continued to operate on a reduced rate time duty contract with Knutsen NYK, which will expire in time for delivery of the vessel to Equinor in March 2024, for an original fixed time duty contract of two times, with boon’s options to extend the duty by two farther one- time ages.
On October 2, 2023, the Partnership inked an agreement with Shell to extend the current time exemptions for the Tordis Knutsen and Lena Knutsen by one time each, which will see these vessels employed untilmid-2027.
This Earnings Release doesn’t make an supposition around the exercise by Repsol of their extension option on Carmen Knutsen in relation to an original period of 1 time commencingmid-January 2024. This is under active discussion with Repsol at the time of this Earnings Release.
Derek Lowe, Chief Executive Officer and Chief Financial Officer of KNOT Offshore mates LP, stated, “ We’re pleased to report another strong performance in Q3 2023, marked by safe operation at over 98 line application for listed operations; harmonious profit and operating income; and completion of the refinancing needed in 2023.

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