Thank you, Leo, good morning, ladies and gentlemen. My name is Derek Lowe, and I am the executive and chief financial officer of KNOT Offshore Partners.

Welcome to the partnership's earnings call for the second quarter of 26. Our website is knotoffshorepartners.com.

And you can find the earnings release there along with this presentation. On slide 2, you will find guidance on the inclusion of forward-looking in today's presentation.

These are made in good faith and reflect management's current views known and unknown risks, and are based on assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied in forward-looking statements.

And the partnership does not have or undertake a duty to update any such statements made as of the date of this presentation. For further information, please consult our SEC filings especially in relation to our annual and quarterly results.

Today's presentation also includes certain non US GAAP measures, and our earnings release includes a reconciliation of these to the most directly comparable GAAP measures. We begin on slide 3, with the Q2 financial and operational headlines.

Revenues were $96.8 million, Operating income, $15.6 million. Net income, $3.4 million, Adjusted EBITDA, $57.6 million.

And as of June 30, 2026, we had $143.3 million available liquidity made up of $95.3 million in cash and cash equivalents, plus $48 million in undrawn capacity. This available liquidity was $2.6 million higher than at March 31 and that rise is largely in line with the reducing trend in recent quarters.

We operated with 96.8% utilization taking into account scheduled drydocking, which amounts to 92.4% utilization overall following the drydocking of Fortaleza Knutsen. Following the end of the quarter, we declared a cash distribution of $0.075 per common unit, which was paid in August under the 99 structure and which represented an increase from the previous level.

We are pleased to have continued the process of multiple gradual increases to our distribution, anchored in our reliable and diversified long term cash flow and improved balance sheet. On slide 4, we have the most significant development since the start of the second quarter.

On September 1, 2026, we purchased the Hilde Knutsen from KNOT, for a purchase price of $113 million. Less than $89.4 million debt facility, plus $0.8 million of capitalized financing fees, resulting in a net cash cost of $24.4 million.

The transaction was negotiated by our board's independent conflicts committee. The vessel was delivered new to KNOT in October 2024, and is on time charter to Petrobras in Brazil through to November 2034, with an additional 5 years of charter options.

The acquisition provides fleet growth, diversifies, extends our pipeline of long term contracts, reduces our average fleet age, and develops the fleet in the most in demand shuttle tanker asset class. And on slide 5, we have commercial and financing developments.

We list here a number of positive contractual developments since the beginning of the second quarter. In addition to the various charterer's options exercised, as expected, I would highlight the time charter for Hilda Knutsen was executed with ENI, to commence in June 2027 for a fixed period of 3 years plus 3 charterer's options each for 1 additional year.

Time charter for Recife Knutsen was executed for Transpetro to commence in Q3 26 for a fixed period of 2 years. Agreement was reached with Eni for a time charter on Ingrid Knutsen, commencing October 2026, for 3 years fixed plus 3 years of options, 3 options each of 1 year.

This is in direct continuation of the existing time charter to Eni, and replaces their existing options. And we refinanced the loan secured by Taurus, Fygdas, Lena, Anna and Brasil Knutsen via a new $225 million 5-year senior secured term loan facility.

Arranged by DNB with the interest rate reduced meaningfully to SOFR plus 1.65%. Turning to slide 6.

For a high level summary of our operating momentum. In both Brazil and the North Sea, we continue to see tightening markets driven by robust multiyear FPSO pipeline production growth, and continuing investments in exploration and existing project expansion.

The increase in shuttle tanker service volumes across both markets has been sustained, sufficient to tighten the supply demand balance even as new vessels have been delivered. We have expanded our strong backlog with $881.2 million of fixed contracts at quarter end, which averaged 2.5 years in duration and charterers options averaging further 4 years.

At quarter end, our fleet of 19 vessels had an average age of 10.7 years, Acquisition of the Hilda reduces the average age by nearly half a year. We are continuing to repay debt at around $95 million per year, we consider prudent with a depreciating asset base.

And we are well advanced in the refinancing of the $65 million facility secured by Lena Knutsen which is due later in October. Over slides 8 to 11, we provide the financials for Q2, the highlights of which we have covered already.

On slide 12 is our debt maturity profile. No guarantees can be made, we have historically benefited from access to a wide pool of lenders and attractive bank finance.

We have been encouraged by our refinancing experience in recent years. Including during significantly weak sharp tanker markets than the current 1.

Notably, the average margin on our floating rate debt during the second quarter was 2.21% over SOFR. Moving on to slide 14 and our charter portfolio.

I believe this remains a very useful resource for investors looking to track the primary moments where change can occur in a highly stable portfolio of cash flows. Based on current charter rates, we believe charter's options are likely to be exercised, given the strength of the charter market.

On slide 15, you can see our strong forward coverage where we are fully chartered for the remainder of 2026 And in 2027, we have 92% firm coverage or 96% including charterer's options. Likewise for 2028, we have 65% firm coverage or 93% including charterer's options.

We assume the charterer's options are picked up, which is our current expectation, then you can see the slowly widening light gray section at the top of the bars as those offer an upside potential for the KNOP fleet. For market momentum is sustained.

On slide 16, you can see the drop down inventory held at the sponsor. Drop downs have been the route to growth in the fleet throughout the life of the partnership.

And remain the means of replenishing and rejuvenating the fleet. In June 2026, the partnership decided not to pursue Fredrik and Synnøve Knutsen and they have been removed from our drop down inventory.

At the same time, we believe that the combination of accretive drop-downs and an improving charter market should support multiple gradual distribution increases over the coming quarters and years, In addition to materially extending our long term cash generation runway, as certain of our vessels begin to age out in the years ahead. On slide 17 to 19, we include market commentary, particularly from Petrobras, which continues to highlight record production a strong and expanding offshore production outlook, and continued FPSO deployment.

We encourage you to review this as well as the copious materials that Petrobras publishes as the largest player in the Brazilian market where we primarily operate. To summarize on slide 20, during the second quarter, we had strong utilization and solid financial results, We secured additional charter coverage across key vessels.

We maintained a constructive backlog and market outlook, We paid a quarterly distribution of $0.075 per unit, which is an increase from $0.05 in the prior quarter and $0.026 per quarter for several years before that. Following the end of the quarter, we purchased Hilda Knutsen, secured additional charter coverage, refinanced the $225 million loan facility.

And on slide 21, we conclude with the key themes of KNOP and the shuttle tanker market. The market remains niche and highly concentrated.

Offshore extraction continues to take market share from traditional onshore production, and FPSO service by shuttle tankers remains dominant compared with the construction of new pipelines. Brazilian North Sea offshore build outs have strong have strong momentum following quite a stretch.

The shuttle tanker order book remains non speculative and insufficient to meet anticipated demand levels. Looking ahead to coming quarters and years, we believe that KNOP is well positioned to pursue attractive long term growth opportunities alongside multiple gradual increases to our sustainable distribution.

With that, I will hand the call back to Leo for any questions.

Derek, you have been a busy man this quarter.

Yes. I have.

Thanks, Liam.

In terms of dropdowns, the Hilda financing was pretty elegant with the assumption of debt and the addition of cash. Does that when I think about the potential drop downs, and the ability to finance them, Do you anticipate a different cadence of growing the fleet?

Or are you just going to take it as a come along?

Well, we respond to the offers that are made to us. And, obviously, only a limited number of the fleet have been delivered of the drop down list have been delivered at this stage.

And so they can only be offered once they have been delivered. And so it is a matter of the timing of the offers and the response that the conflicts committee wants to make to them.

Okay. But would you envision the financing similar to Hilda?

As I said before, is a pretty elegant way to fund a drop down. Yeah.

I mean, the standard model for all of them is that they have a secured debt facility in place already as they are offered. So the financing itself does not need to be arranged at the time that the drop down's offered.

And it is a standard term of those facilities that the guarantor or the ownership and the guarantor arrangements can be transferred over to KNOP from KNOT so that is that is straightforward. I would say the loan on the Hilda is very standard from the point of view of the drop-downs we have had in the past so that those terms did not come as a great surprise.

Nor did the approximate cash cost of the transaction. So that $24 million is fairly consistent with the cost that you will see, the sort of the net of debt, the cost that you will see in the previous transactions we have done.

Great. Thank you, Derek.

Thanks, Liam.

Well, thank you again, ladies and gentlemen, for joining us earnings call for KNOT Offshore Partners second quarter of 26. And I look forward to speaking with you again following the third quarter results.