Knot Offshore Partners Lp · NYSE:KNOP

Knot Offshore Partners Lp — Q4 2016 Earnings Presentation

21 slides from Knot Offshore Partners Lp's earnings presentation, Feb 15, 2017

  1. Slide 1: Fourth Quarter 2016 Results

    Fourth Quarter 2016 Results New York City, February 15, 2017

  2. Slide 2: Notice to Recipients

    Notice to Recipients This presentation is not a prospectus and is not an offer to sell, nor a solicitation of an offer to buy, securities. Except for the historical information contained herein, the matters discussed in this presentation include forward-looking statements that involve risks and unce

  3. Slide 3: Q4 2016 Financial Highlights & recent events

    Q4 2016 Financial Highlights & recent events  Highest quarterly revenues, EBITDA(1), net income, and distributable cash flow(1)  Distribution coverage ratio(2) of 1.27x, or 1.38x prior to post-quarter end equity offering  Declared cash distribution of $0.52 per unit for Q4 2016  Strong operation

  4. Slide 4: Income Statement

    Income Statement Unaudited, USD in thousands 4Q 2016 3Q 2016 4Q 2015 FY 2016 FY 2015 Time charter and bareboat revenues 44,798 43,390 42,417 172,878 154,750 Other income 197 197 120 793 274 Total revenues 44,995 43,587 42,537 173,671 155,024 Vessel operating expenses 7,693 7,588 7,636 30,903 27,543

  5. Slide 5: Adjusted EBITDA

    Adjusted EBITDA Unaudited, USD in thousands 4Q 2016 3Q 2016 4Q 2015 FY 2016 FY 2015 Net income 19,505 19,357 17,567 61,102 40,443 Interest income (15) (6) (5) (24) (8) Interest expense 5,654 5,129 4,731 20,864 17,451 Depreciation 14,505 13,920 13,464 56,230 48,844 Goodwill impairment charge — — — —

  6. Slide 6: Distributable cash flow

    Distributable cash flow Unaudited, USD in thousands 4Q 2016 3Q 2016 4Q 2015 FY 2016 FY 2015 Net income 19,505 19,357 17,567 61,102 40,442 Add: Depreciation 14,505 13,920 13,464 56,230 48,844 Goodwill impairment charge — — — — 6,217 Other non-cash items; deferred costs 315 310 289 1,198 1,149 amortiz

  7. Slide 7: Balance sheet

    Balance sheet At December 31, At December 31, At December 31, At December 31, Unaudited, USD in thousands 2016 2015 2016 2015 Current assets: Current liabilities Cash and cash equivalents 27,664 23,573 Current portion of long-term debt 58,984 48,535 Inventories 1,176 849 Derivative liabilities 3,304

  8. Slide 8: Stable operational performance results in stable financial performance

    Stable operational performance results in stable financial performane FLEET UTILIZATION (%) REVENUE (USD million) Average of 99.7 % since IPO 26% CAGR 45,0 100% 99,2% 99,3% 99,4% 99,7% 98,9% 99,7% 99,9% 100% 99,6% 99,9% 99,8 % 99,9 % 100% 99,8 % since IPO 42,5 42,0 43,1 43,6 39,3 36,2 37 34,3 34,7 2

  9. Slide 9: Unit price and yield performance in MLP space

    Unit Price/WTI Rebased $15 $20 $25 $30 $10 $35 $0 $5 4.12.2013 6.12.2013 8.12.2013 10.12.2013 12.12.2013 2.12.2014 4.12.2014 KNOP Yield AMZ Index/20 6.12.2014 8.12.2014 10.12.2014 12.12.2014 2.12.2015 WTI/4 4.12.2015 AMZ Yield 6.12.2015 8.12.2015 10.12.2015 12.12.2015 Unit price and yield performanc

  10. Slide 10: KNOP Growth Correlated to Brazilian Pre-salt Priced Off AMZ Index

    KNOP Growth Correlated to Brazilian Pre-salt Priced Off AMZ Index AMZ BAKER HUGHES W TI BRAZIL OFFSHORE& KNOP $40 160% $35 140% $30 120% Unit Price/WTI Rebased $25 100% $20 80% $15 60% $10 40% $5 20% $0 0% Baker Hughes % Change AMZ Index/20 WTI/4 KNOP Unit Price Brazil OS % Change Production Rystad

  11. Slide 11: Pending - Tordis Knutsen drop-down

    Pending - Tordi Knutsen drop-down Tordis Knutsen Contract detail  Charterer: Royal Dutch Shell (1)  Contract type: TimeCharter  Contract end date: January 2022  Option period: two consecutive 5 years extention options  Trading area: Brazil  Estimated NTM EBITDA(1): 16.2 million  Estimated NTM

  12. Slide 12: Stable and predictable cash development

    Stable and predictable cash development 180 160 140 120 100 80 60 40 20 0 12

  13. Slide 13: Long-term Contracts Backed by Leading Energy Companies

    Long-term Contracts Backed by Leading Energy Companies Name 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Windsor Knutsen (1) Bodil Knutsen Fortaleza Knutsen Recife Knutsen Carmen Knutsen Hilda Knutsen Torill Knutsen Dan Cisne Dan Sabia Ingrid Knutsen Raquel Knutsen Tord

  14. Slide 14: Goliat field – Barents sea

    Goliat field – Barents sea  Goliat started production on March 2016 – Estimated 178 million recoverable boe – Estimated lifetime of the field is 15 years – The field will produce 100,000 barrels of oil per day - max storing capacity 1million barrels - one vessel every week  Hilda Knutsen and Toril

  15. Slide 15: Significant growth fleet since IPO

    Significant growth fleet since IPO 200% fleet growth since IPO 1 12 1 2 3 1 4 IPO fleet 2013 2014 2015 2016 1Q 2017 Today 15

  16. Slide 16: Dropdown inventory: Three potential acquisitions

    Dropdown inventory: Three potential acquisitions(1) Name 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Vigdis Knutsen Anna Knutsen Lena Knutsen Fixed contract Option period Yard Fixed contract periods for the dropdown fleet are 5.0(2)years on average Charterers also have

  17. Slide 17: Summary

    Summary  Another quarter of strong operational and financial performance – $45.0 million revenue, 99,8% utilization – $36.1 million adjusted EBITDA(1) – $19.5 million net income – $20.8 million distributed cash flow(1)  Quarterly distribution of $0.52 per unit – 9.7% yield(2)  Completed acquisiti

  18. Slide 18: Thank you, any questions?

    Shuttle Tanker Market Overview Thank you, any questions? 18

  19. Slide 19: Appendix

    Appendix APPENDIX

  20. Slide 20: Non-GAAP Financial Measures

    Non-GAAP Financial Measures EBITDA and Adjusted EBITDA EBITDA is defined as earnings before interest, depreciation and taxes. Adjusted EBITDA refers to earnings before interest, depreciation, taxes, goodwill impairment charges and other financial items (including other finance expenses, realized and

  21. Slide 21: Reconciliation of estimated net income and estimated EBITDA for KNOT 24

    Reconciliation of estimated net income and estimated EBITDA for KNOT 24 For KNOT 24, the entity that the Partnership intends to pending purchase in the acquisition, estimated net income and estimated EBITDA for the twelve months following the closing of the acquisition are based on the following ass

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