Knot Offshore Partners Lp · NYSE:KNOP

Knot Offshore Partners Lp — Q4 2017 Earnings Presentation

17 slides from Knot Offshore Partners Lp's earnings presentation, Feb 21, 2018

  1. Slide 1: Fourth Quarter 2017 Results

    Fourth Quarter 2017 Results February 21, 2018

  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. This presentation contains certain forward-looking statements concerning future events and KNOT Offshore Partners LP’s (“KNOP”) operations, performance and finan

  3. Slide 3: Q4 2017 Financial Highlights & recent events

    Q4 2017 Financial Highlights & recent events  Generated total revenue of $61.6 million, operating income of $25.0 million and net income of 18.6 million  Generated Adjusted EBITDA(1) of $45.1 million  Generated distribution cash flow(1) of $21.5 million, with a coverage ratio(2) of 1.19x, or 1.24

  4. Slide 4: Income Statement

    Income Statement Unaudited, USD in thousands 4Q 2017 3Q 2017 4Q 2016 FY 2017 FY 2016 Time charter and bareboat revenues 59,247 57,970 44,798 212,501 172,878 Loss of hire insurance recoveries 1,750 — — 5,176 Other income 592 247 197 1,526 793 Total revenues 61,589 58,217 44,995 219,203 173,671 Vessel

  5. Slide 5: Adjusted EBITDA

    Adjusted EBITDA Unaudited, USD in thousands 4Q 2017 3Q 2017 4Q 2016 FY 2017 FY 2016 Net income 18,640 21,079 19,505 68,065 61,102 Interest income (101) (68) (15) (248) (24) Interest expense 9,208 8,040 5,654 30,714 20,864 Depreciation 20,079 18,379 14,505 71,583 56,230 Income tax (benefits) expense

  6. Slide 6: Distributable cash flow

    Distributable cash flow Unaudited, USD in thousands 4Q 2017 3Q 2017 4Q 2016 FY 2017 FY 2016 Net income 18,640 21,079 19,505 68,065 61,102 Add: Depreciation 20,079 18,379 14,505 71,583 56,230 Other non-cash items; deferred costs 513 469 315 1,736 1,198 amortization debt Unrealized losses from interes

  7. Slide 7: Balance sheet

    Balance sheet At December 31, At December 31, At December 31, At December 31, Unaudited, USD in thousands 2017 2016 2017 2016 Current assets: Current liabilities Cash and cash equivalents 46,104 27,664 Current portion of long-term debt 92,985 58,984 Inventories 2,241 1,176 Derivative liabilities 978

  8. Slide 8: EBITDA growth from Brasil Knutsen and Anna Knutsen acquisitions

    EBITDA growth from Brasil Knutsen and Anna Knutsen aqcuistions Brasil Knutsen Anna Knutsen Announcement date December 15, 2018 February 20, 2018 Closing date December 15, 2018 March 1, 2018(1) Purchase price(2) $96.0 million $120.0 million Year built May 2013 March 2017 Type DP 2 Suezmax DP 2 Suezma

  9. Slide 9: Long-term Contracts Backed by Leading Energy Companies

    Long-term Contracts Backed by Leading Energy Companies (1) (1) (2) Fixed contract Option period KNOP fleet has average remaining fixed contract duration of 4.2(2) years Additional 4.7 years on average in Charterers option (1) KNOT has guaranteed the hire rate to April 2018 (five years from IPO date)

  10. Slide 10: Oil production from shuttle tanker operated fields

    Oil production from shuttle tanker operated fields Oil Production Development (Shuttle Tanker Operated Fields in the North Sea) North Sea: 1800  The 9% p.a. depletion rate applied to existing fields is very 1600 conservative as the average depletion rate 2000-14 is 1400 6.0% p.a. 1200  In 2017, ei

  11. Slide 11: Attractive long-term outlook for the shuttle tanker business

    Attractive long-term outlook for the shuttle tanker business  As of today shuttle tanker market extremely tight – No speculative newbuildings orders  An active tender for long term contracts for Petrobras shuttle tanker in the market  Fearnleys sees a significant demand for new shuttle tankers go

  12. Slide 12: Summary

    Summary  Another quarter strong financial performance and substantial increase on financial measure  Successful equity execution and good access to attractive bank financing  Completed acquisition of Brasil Knutsen  Entered into share purchase agreement to acquire Anna Knutsen  Strong outlook f

  13. Slide 13: Shuttle Tanker Market Overview

    Shuttle Tanker Market Overview Thank you, any questions? 13

  14. Slide 14: Appendix

    Appendix APPENDIX

  15. Slide 15: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA refers to earnings before interest, depreciation, taxes, goodwill impairment charge and other financial items. Adjusted EBITDA is a non-GAAP financial measure used by investors to measure our performance. Adjusted EBITDA is used as a supple

  16. Slide 16: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Distributable Cash Flow Distributable cash flow represents net income adjusted for depreciation and amortization, unrealized gains and losses from derivatives, unrealized foreign exchange gains and losses, distributions on the Series A Preferred Units, goodwill impairment

  17. Slide 17: Non-GAAP Financial Measures

    Non-GAAP Financial Measures The reconciliation of distributable cash flow to net income, the most directly comparable cash measure, set forth in the tables below: For the Quarter Ended (USD in thousands) 30-Sep-15 31-Dec-15 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 Net in

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