Thank you, Jade, and good morning, ladies and gentlemen. My name is Derek Lowe, and I'm the Chief Executive and Chief Financial Officer of KNOT Offshore Partners.

Welcome to the partnership's earnings call for the first quarter of 2026. 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 statements 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 4 with the Q1 financial and operational headlines.

Revenues were $92 million, operating income was $14.7 million, net income was $2.6 million, adjusted EBITDA was $56.5 million, and as of March 31st, 2026, we had $140.7 million in available liquidity made up of $92.7 million in cash and cash equivalents plus $48 million in undrawn capacity. This available liquidity was $3.7 million higher than at December 31st.

We operated with a 97.2% utilization, taking into account scheduled drydocking, which amounts to 92% utilization overall following the drydockings of Tove Knutsen and Raquel Knutsen. Following the end of the quarter, we declared a cash distribution of 5 cents per common unit, which was paid in May under the 1099 structure and which represents an increase from the previous level.

We are pleased to have initiated the process of increasing the distribution after an extended period of low payouts, during which we restored our charter coverage, improved our liquidity position, and addressed multiple refinancings and drydockings. On Slide 5, we have developments during the quarter.

Prospectively from January the 1st, 2026, we changed the useful life estimate of our vessels from 23 years to 20 years, reflecting longer-term market trends. This will increase future depreciation quarter by quarter, but that is not a cash item.

This step also does not prevent vessels from operating beyond 20 years. On Slide 6, we have commercial developments.

We exercised our option to continue the time charter of Hilda Knutsen with Shell through March 2027 and subsequently agreed a new time charter with Eni commencing in Q3 2027 for three years fixed plus options up to a further three years. TotalEnergies exercised their option to extend the charter of Anna Knutsen for one year until May 2027.

We agreed a time charter for Recife Knutsen with Transpetro to commence in Q3 2026 for a fixed period of two years. Turning to Slide 7 for a high-level summary of our operating momentum.

In both Brazil and the North Sea, we continue to see tightening markets driven by FPSO startups, ramp-ups, expansions, and new developments. This increase in shuttle tanker service volumes across both markets has been sustained and sufficient to tighten the supply-demand balance.

We have sustained a strong backlog with $858 million of fixed contracts averaging 2.4 years and rather more if all options are exercised. At quarter end, our fleet of 19 vessels had an average age of 10.5 years, and we're continuing to repay debt at around $90 million per year, which we consider prudent with a depreciating asset base.

Having addressed prior refinancing activity, we now look ahead to a $220 million facility in September 2026 and a $65 million facility in October. Over Slides 9 to 12, we provide the financials for Q1, the highlights of which we have covered already.

On Slide 13 is our debt maturity profile. While no guarantees can be made, we have historically benefited from access to a wide pool of lenders and attractive bank finance, and we've been encouraged by our refinancing experience in recent years, including during significantly weaker shuttle tanker markets than the current one.

Notably, the average margin on our floating rate debt during the first quarter was 2.22% over SOFR. Moving on to Slide 15 and our charter portfolio, I believe this remains a very useful resource for investors looking to track the primary movements where change can occur in a highly stable portfolio of cash flows.

Based on current charter rates, we believe charterers' options are likely to be exercised given the strength of the charter market. On Slide 16, you can see our strong coverage through the coming quarters, some charterers' options that we believe are of a good likelihood of being exercised, and a small amount of open time.

On Slide 17, you can see the dropdown inventory held at the sponsor. Dropdowns 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.

As mentioned in the earnings release, we anticipate pursuing these acquisitions over the next 4 to 5 years to the extent that the relevant terms are attractive and are approved by our Conflicts Committee. At the same time, we believe that the combination of accretive dropdowns 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 Slides 18 to 20, we include market commentary, particularly from Petrobras, which continues to highlight a strong and expanding offshore production outlook and continued FPSO deployment. We would 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 21, during the first 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 5 cents per unit.

Looking ahead to the coming quarters and years, we believe that successful execution of accretive dropdown transactions, combined with re-chartering vessels into a strong market environment, should create the conditions for multiple gradual increases to our sustainable distribution. With that, I'll hand the call back to Jade for any questions.

Thank you. Hello, Derek.

Congratulations with the results. To have a pretty robust cash position, even more robust the liquidity position.

I'm happy to hear that you are at least talking about modestly increasing the dividends or distributions going forward in addition to be able to take the potential dropdowns as well. How should we think about when you say modest gradual increases in the dividend in terms of magnitude?

How should we think about this?

That's something that gets decided on by the board each time they make a dividend or distribution declaration, and that can only follow the end of each respective quarter. We don't have specific guidance on numbers that may be coming, and the board will make their decision following the end of first quarter for the, sorry, the end of second quarter for the next distribution.

If you can provide some color about if you look at your backlog and cash flow or cash generation going forward, you can sustain the dividend much higher than 5 cents per unit. Should we think about when you say modest increases, you would think about an increase similar to the one you did this time, or should it be more?

That's just for in terms of how we should think about it as investors.

I appreciate the question, but until we have a distribution decision from the directors after the end of second quarter, we don't have a number to provide you with.

Thank you. That was all I had in terms of questions.

Thanks, Fredrik.

Thank you. Hi, Derek.

How are you today?

Hi, Liam. Good, thank you.

You?

I'm fine, thanks. Derek, I had a macro question for you.

There's more oil obviously being sourced out of the non-Gulf area due to the conflict in the Mideast. Now eventually, the Strait of Hormuz will be reopened, but do you anticipate even post Strait of Hormuz opening, higher than normal increase in offshore oil production development?

Or does it change your markets for the better?

I don't particularly have a view over the medium to longer term. I can understand people being quite cautious in the nearer term as developments come along because the news flow varies from one day to the next, and I'm sure people will be seeking to interpret that as best they can and even remain cautious once the Straits are open again.

I don't really have a view on whether it would change what will otherwise happen in the medium to long term because there could be other factors relating to that as well.

Fair enough. On the supply side, just in the vein where you reduced the useful life of the assets, could you give me a sense as to where we are in terms of the order book and the aging of the shuttle tanker fleet globally?

You can see the aging of our vessels,

and

I guess the 20-F is the best place to look at that to get that listed out. I don't particularly have a comment on the aging of other shipowners' fleets.

Clearly with the ramp-up, particularly in Brazil, the newbuild inventory is clearly in excess of what's going to retire from the market. It's intended to serve new volumes that are coming online.

Okay. There is an aging of the fleet on the other end of it that could further tighten supply.

That's right, yeah.

Great. Thank you, Derek.

Thank you.

Hey, Derek. I apologize.

I logged in a little late, and you may have addressed this in your prepared remarks. Could you just talk about the sequential decline in revenues, and was that totally associated with the downtime you experienced, or were there some time charter rollovers that impacted revenues?

Yeah. Thanks, Poe.

No problem, we didn't stress that at the time earlier on. Yes, it will relate to the drydock schedule and also simply the terms of the charters that are outstanding between the different periods.

Great. Thank you.

Great,

thanks.

Thank you, Jade, and thank you all again for joining this earnings call for KNOT Offshore Partners' first quarter of 2026. We look forward to speaking with you again following the second quarter results.

Thank you.