KNOT Offshore Partners (KNOP) 6-K 28 Aug 19 2019 H1 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2019
Document And Entity Information
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	H1
Entity Registrant Name	KNOT Offshore Partners LP
Entity Central Index Key	0001564180
Current Fiscal Year End Date	--12-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating revenues: (Notes 3, 4 and 13)
Time charter and bareboat revenues	$ 70,908	$ 69,221	$ 141,456	$ 136,608
Loss of hire insurance recoveries		450		450
Other income	14	94	15	750
Total revenues	70,922	69,765	141,471	137,808
Operating expenses: (Note 4 and 13)
Vessel operating expenses	15,301	13,974	29,757	27,221
Depreciation	22,429	22,332	44,860	43,906
General and administrative expenses	1,264	1,350	2,561	2,695
Total operating expenses	38,994	37,656	77,178	73,822
Operating income	31,928	32,109	64,293	63,986
Finance income (expense): (Note 13)
Interest income	233	161	471	296
Interest expense (Note 6)	(13,186)	(12,526)	(26,844)	(23,119)
Other finance expense (Note 6)	(286)	(288)	(404)	(626)
Realized and unrealized gain (loss) on derivative instruments (Note 7)	(10,318)	1,968	(16,247)	11,944
Net gain (loss) on foreign currency transactions	(192)	260	(218)	(70)
Total finance expense	(23,749)	(10,425)	(43,242)	(11,575)
Income before income taxes	8,179	21,684	21,051	52,411
Income tax (expense) (Notes 9)	(3)	(3)	(6)	(6)
Net income	8,176	21,681	21,045	52,405
Series A Preferred unitholders' interest in net income	1,800	1,800	3,600	3,600
General Partner's interest in net income	118	367	322	901
Limited Partners' interest in net income	$ 6,258	$ 19,514	$ 17,123	$ 47,904
Earnings per unit (Basic): (Note 15)
General Partner unit (diluted)	$ 0.191	$ 0.597	$ 0.524	$ 1.465
Earnings per unit (Diluted): (Note 15)
General Partner unit (diluted)	0.191	0.597	0.524	1.465
Common Units
Earnings per unit (Basic): (Note 15)
Common unit (basic)	0.191	0.597	0.524	1.465
Earnings per unit (Diluted): (Note 15)
Common unit (diluted)	$ 0.191	$ 0.585	$ 0.524	$ 1.415

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 8,176	$ 21,681	$ 21,045	$ 52,405
Comprehensive income	$ 8,176	$ 21,681	$ 21,045	$ 52,405

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents (Note 8)	$ 42,429	$ 41,712
Amounts due from related parties (Note 13)	1,504	1,141
Inventories	2,439	2,443
Derivative assets (Notes 7 and 8)	1,981	4,621
Other current assets	2,537	2,462
Total current assets	50,890	52,379
Long-term assets:
Vessels, net of accumulated depreciation (Note 10)	1,722,151	1,767,080
Right-of-use assets (Note 4)	2,075
Intangible assets, net (Note 11)	1,589	1,891
Derivative assets (Notes 7 and 8)	914	11,667
Accrued income	4,374	3,807
Total long term assets	1,731,103	1,784,445
Total assets	1,781,993	1,836,824
Current liabilities:
Trade accounts payable (Note 13)	2,981	4,800
Accrued expenses	6,293	6,464
Current portion of long-term debt (Notes 8 and 12)	83,285	106,926
Current lease liabilities (Note 4)	558
Current portion of derivative liabilities (Notes 7 and 8)	426	1,740
Income taxes payable	18	130
Current portion of contract liabilities	1,518	1,518
Prepaid charter	6,891	5,771
Amount due to related parties (Note 13)	1,189	1,070
Total current liabilities	103,159	128,419
Long-term liabilities:
Long-term debt (Notes 8 and 12)	953,680	970,365
Lease liabilities (Note 4)	1,516
Derivative liabilities (Notes 7 and 8)	5,314	345
Contract liabilities	4,445	5,203
Deferred tax liabilities (Note 9)	463	453
Total long-term liabilities	965,418	976,366
Total liabilities	1,068,577	1,104,785
Commitments and contingencies (Note 14)
Series A Convertible Preferred Units	89,264	89,264
Partners' capital:
Common unitholders	612,965	631,244
General partner interest	11,187	11,531
Total partners' capital	624,152	642,775
Total liabilities and equity	$ 1,781,993	$ 1,836,824

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands	General Partner Unit	Common Units	Total
Beginning balance at Dec. 31, 2017	$ 11,479	$ 628,471	$ 639,950
Net income	901	47,904	48,805
Cash distributions	(666)	(35,402)	(36,068)
Net proceeds from issuance of common units		(4)	(4)
Ending balance at Jun. 30, 2018	11,714	640,969	652,683
Convertible preferred units, beginning balance at Dec. 31, 2017			89,264
Net income			3,600
Cash distributions			(3,600)
Convertible preferred units, ending balance at Jun. 30, 2018			89,264
Beginning balance at Mar. 31, 2018	11,680	639,156	650,836
Net income	367	19,514	19,881
Cash distributions	(333)	(17,701)	(18,034)
Ending balance at Jun. 30, 2018	11,714	640,969	652,683
Convertible preferred units, beginning balance at Mar. 31, 2018			89,264
Net income			1,800
Cash distributions			(1,800)
Convertible preferred units, ending balance at Jun. 30, 2018			89,264
Beginning balance at Dec. 31, 2018	11,531	631,244	642,775
Net income	322	17,123	17,445
Cash distributions	(666)	(35,402)	(36,068)
Ending balance at Jun. 30, 2019	11,187	612,965	624,152
Convertible preferred units, beginning balance at Dec. 31, 2018			89,264
Net income			3,600
Cash distributions			(3,600)
Convertible preferred units, ending balance at Jun. 30, 2019			89,264
Beginning balance at Mar. 31, 2019	11,402	624,408	635,810
Net income	118	6,258	6,376
Cash distributions	(333)	(17,701)	(18,034)
Ending balance at Jun. 30, 2019	$ 11,187	$ 612,965	624,152
Convertible preferred units, beginning balance at Mar. 31, 2019			89,264
Net income			1,800
Cash distributions			(1,800)
Convertible preferred units, ending balance at Jun. 30, 2019			$ 89,264

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
OPERATING ACTIVITIES
Net income	$ 8,176	$ 21,681	$ 21,045	$ 52,405
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	22,429	22,332	44,860	43,906	$ 88,756
Amortization of contract intangibles / liabilities			(456)	(456)
Amortization of deferred revenue				(743)
Amortization of deferred debt issuance cost	657	696	1,314	1,271
Drydocking expenditure			69	(3,803)
Income tax expense	3	3	6	6
Income taxes paid			(121)	(172)
Unrealized (gain) loss on derivative instruments			17,047	(11,253)
Unrealized (gain) loss on foreign currency transactions			30	(44)
Changes in operating assets and liabilities
Decrease (increase) in amounts due from related parties			(363)	(290)
Decrease (increase) in inventories			4	4
Decrease (increase) in other current assets			(71)	3,516
Decrease (increase) in accrued revenue			(567)	(884)
Increase (decrease) in trade accounts payable			(1,843)	(1,222)
Increase (decrease) in accrued expenses			(173)	(656)
Increase (decrease) prepaid charter			1,121	449
Increase (decrease) in amounts due to related parties			119	(3,800)
Net cash provided by operating activities			82,021	78,234
INVESTING ACTIVITIES
Net cash provided by (used in) investing activities				(15,386)
FINANCING ACTIVITIES
Proceeds from long-term debt				145,500
Repayment of long-term debt			(41,661)	(146,002)
Repayment of long-term debt from related parties				(22,535)
Payment of debt issuance cost			21	(1,114)
Cash distributions			(39,668)	(39,668)
Net proceeds from issuance of common units				(4)
Net cash (used in) financing activities			(81,308)	(63,823)
Effect of exchange rate changes on cash			4	(45)
Net increase (decrease) in cash and cash equivalents			717	(1,019)
Cash and cash equivalents at the beginning of the period			41,712	46,104	46,104
Cash and cash equivalents at the end of the period	$ 42,429	$ 45,085	$ 42,429	45,085	$ 41,712
Property, Plant and Equipment, Excluding Acquired Vessels
INVESTING ACTIVITIES
Disposals (additions) to vessel and equipment				(10)
Anna Knutsen
INVESTING ACTIVITIES
Disposals (additions) to vessel and equipment				$ (15,376)

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2019
Description of Business
Description of Business	1) Description of Business KNOT Offshore Partners LP (the “Partnership”) was formed as a limited partnership under the laws of the Republic of the Marshall Islands. The Partnership was formed for the purpose of acquiring 100% ownership interests in four shuttle tankers owned by Knutsen NYK Offshore Tankers AS (“KNOT”) in connection with the Partnership’s initial public offering of its common units (the “IPO”), which was completed on April 15, 2013. Pursuant to the Partnership’s Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), KNOT Offshore Partners GP LLC, a wholly owned subsidiary of KNOT, and the general partner of the Partnership (the “General Partner”), has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. During the period from the Partnership’s IPO until the time of the Partnership’s first annual general meeting (“AGM”) on June 25, 2013, the General Partner retained the sole power to appoint, remove and replace all members of the Partnership’s board of directors. From the first AGM, four of the seven board members became electable by the common unitholders and accordingly, from this date, KNOT, as the owner of the General Partner, no longer retained the power to control the Partnership’s board of directors and, hence, the Partnership. As a result, the Partnership is no longer considered to be under common control with KNOT and as a consequence, the Partnership accounts for acquisitions of businesses and assets under the purchase method of accounting and not as transfers of equity interests between entities under common control. All acquisitions have been consolidated into the Partnership’s results as of the date of acquisition. Please read Note 2—Summary of Significant Accounting Policies and Note 16—Acquisitions. As of June 30, 2019, the Partnership had a fleet of sixteen shuttle tankers, the Windsor Knutsen , the Bodil Knutsen , the Recife Knutsen , the Fortaleza Knutsen , the Carmen Knutsen, the Hilda Knutsen, the Torill Knutsen , the Dan Cisne , the Dan Sabia, the Ingrid Knutsen , the Raquel Knutsen, the Tordis Knutsen, the Vigdis Knutsen, the Lena Knutsen , the Brasil Knutsen and the Anna Knutsen , each referred to as a “Vessel” and, collectively, as the “Vessels”. The Vessels operate under fixed long-term charter contracts to charterers, with expiration dates between 2019 and 2025. Please see Note 4—Operating Leases. The consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. The Partnership expects that its primary future sources of funds will be available cash, cash from operations, borrowings under any new loan agreements and the proceeds of any equity financings. The Partnership believes that these sources of funds (assuming the current rates earned from existing charters) will be sufficient to cover operational cash outflows and ongoing obligations under the Partnership’s financing commitments to pay loan interest and make scheduled loan repayments and to make distributions on its outstanding units. Accordingly, as of August 28, 2019, the Partnership believes that its current resources, including the undrawn portion of its revolving credit facilities of $28.7 million, are sufficient to meet working capital requirements for its current business for at least the next twelve months.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2) Summary of Significant Accounting Policies (a) Basis of Preparation The accompanying unaudited condensed consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. In the opinion of management of the Partnership, all adjustments considered necessary for a fair presentation, which are of normal recurring nature, have been included. All intercompany balances and transactions are eliminated. The unaudited condensed consolidated financial statements do not include all the disclosures and information required for a complete set of annual financial statements; and, therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2018, which are included in the Partnership’s Annual Report on Form 20-F (the “2018 20-F”). (b) Significant Accounting Policies Except as described below under (c) Recent Accounting Pronouncements - Adoption of new accounting standards ”, the accounting policies adopted in the preparation of the unaudited condensed consolidated interim financial statements are consistent with those followed in the preparation of the Partnership’s audited consolidated financial statements for the year ended December 31, 2018, as contained in the Partnership’s 2018 20-F. (c) Recent Accounting Pronouncements Adoption of new accounting standards In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02, Leases (ASC 842), that amends the accounting guidance on leases for both lessors and lessees. On January 1, 2019, the Partnership adopted the new standard using the optional transition method to apply the new standard at the transition date of January 1, 2019 with no retrospective adjustments to prior periods. Consequently, the accounting and disclosures for the prior periods continue to be presented in accordance with the previous standard for leases. The Partnership elected the package of practical expedients and has not reassessed whether any expired or existing contracts are, or contain leases, not reassessed lease classifications, and not reassessed initial direct costs for any existing leases. Additionally, the practical expedient of disregarding short-term leases for agreements with lease terms of 12 months or less as a lessee was adopted as an accounting policy for all underlying assets. The Partnership’s time charter contracts include both a lease component, consisting of the lease of the vessel, and non-lease component, consisting of operation of the vessel for the customers. The Partnership has elected to use the practical expedient to not separate the non-lease component from the lease component for all such charters where the lease component is classified as an operating lease, and account for the combined components as an operating lease. Consequently, there were no changes to the timing or amount of revenue recognized, and therefore, no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessor accounting. Additional qualitative and quantitative disclosures are required and have been implemented for reporting periods beginning as of January 1, 2019, while prior periods are not adjusted and continue to be reported under the previous accounting standards. See Note 4—Operating Leases. The Partnership does not have any material leased assets. Adoption of the new standard resulted in recording a right-of-use asset and a lease liability on the consolidated balance sheet for operating leases of $2.3 million and $2.3 million, respectively, as of January 1, 2019. There was no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessee accounting. As of June 30, 2019, the right-of-use asset and lease liability for operating leases was $2.1 million and $2.1 million, respectively, and are presented in separate lines on the balance sheets. See Note 4—Operating Leases. Accounting pronouncements to be adopted Recently issued accounting pronouncements are not expected to materially impact the Partnership.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2019
Segment Information
Segment Information	3) Segment Information The Partnership has not presented segment information as it considers its operations to occur in one reportable segment, the shuttle tanker market. As of June 30, 2018 and 2019, the Partnership’s fleet consisted of sixteen vessels and operated under twelve time charters and four bareboat charters. Under the time charters and bareboat charters, the charterer, not the Partnership, controls the choice of which trading areas the applicable Vessel will serve. Accordingly, the Partnership’s management, including the chief operating decision makers, does not evaluate performance according to geographical region. The following table presents consolidated revenues and percentages of revenues for customers that accounted for more than 10% of the Partnership’s consolidated revenues during the three and six months ended June 30, 2019 and 2018. All of these customers are subsidiaries of major international oil companies. Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Eni Trading and Shipping S.p.A. $ 11,134 16 % $ 11,555 17 % $ 22,146 16 % $ 22,936 17 % Fronape International Company, a subsidiary of Petrobras Transporte S.A. 11,249 16 % 11,248 16 % 22,378 16 % 22,378 16 % Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 9,282 13 % 9,283 13 % 18,463 13 % 18,222 13 % Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell 20,606 29 % 20,399 29 % 40,889 29 % 40,572 30 % Galp Sinopec Brasil Services B.V. 8,881 13 % 6,438 9 % 17,584 12 % 12,071 9 %

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2019
Operating Leases
Operating Leases	4) Operating Leases Revenues The Partnership’s primary source of revenues is chartering its shuttle tankers to its customers. The Partnership uses two types of contracts, time charter contracts and bareboat charter contracts. The Partnership’s time-charter contracts include both a lease component, consisting of the lease of the vessel, and non-lease component, consisting of operation of the vessel for the customers. The Partnership has elected to not separate the non-lease component from the lease component for all such charters, where the lease component is classified as an operating lease, and to account for the combined components as an operating lease. The following table presents the Partnership’s revenues by lease and non-lease contracts for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Lease revenue from lease payment of operating leases $ 70,908 $ 69,221 $ 141,456 $ 136,608 Non-lease revenues (loss of hire insurance recoveries and other income) 14 544 15 1,200 Total revenues $ 70,922 $ 69,765 $ 141,471 $ 137,808 As a result of the revised guidance on leasing, the lessor accounting did not change. See Note 2(c)—Recent Accounting Pronouncements. As of June 30, 2019, the minimum contractual future revenues to be received from time charters and bareboat charters during the next five years and thereafter are as follows: (U.S. Dollars in thousands) 2019 (excluding the six months ended June 30, 2019) $ 136,536 2020 240,710 2021 219,841 2022 152,078 2023 63,918 2024 and therafter 28,674 Total $ 841,757 The minimum contractual future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum contractual future revenues are calculated based on certain assumptions such as operating days per year. In addition, minimum contractual future revenues presented in the table above have not been reduced by estimated off-hire time for periodic maintenance. The amounts may vary given unscheduled future events such as vessel maintenance. The Partnership’s fleet as of June 30, 2019 consisted of: · the Fortaleza Knutsen , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in March 2023 with Fronape International Company, a subsidiary of Petrobras Transporte S.A. (“Transpetro”); · the Recife Knutsen , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in August 2023 with Transpetro; · the Bodil Knutsen , a shuttle tanker built in 2011 that is currently operating under a time charter that expires in May 2020 with Statoil ASA (now Equinor), with options to extend until May 2024; · the Windsor Knutsen , a conventional oil tanker built in 2007 and retrofitted to a shuttle tanker in 2011. The vessel operated under a time charter with Brazil Shipping I Limited, a subsidiary of Shell, until July 2014. From July 2014 until October 2015, the vessel was employed under a time charter with KNOT. Beginning in October 2015, the vessel commenced operations under a two year time charter with Brazil Shipping I Limited, with options to extend until 2023. In March 2019, the time charter contract was suspended for ten to twelve months. During the suspension period, the Windsor Knutsen is operating under a time charter contract with Knutsen Shuttle Tankers Pool AS on the same terms as the existing contract with Shell. As a result of the suspension period, Shell has options to extend the time charter until October 2024. On July 16, 2019, a subsidiary of Shell exercised its option to extend the time charter of the Windsor Knutsen by one additional year until October 2020; · the Carmen Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in January 2023, with Repsol Sinopec Brasil, B.V. a subsidiary of Repsol Sinopec Brasil, S.A. (“Repsol”), with options to extend until January 2026; · the Hilda Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in August 2022 with Eni Trading and Shipping S.p.A. (“ENI”), with options to extend until August 2025; · the Torill Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in November 2019 with ENI, with options to extend until November 2023; · the Dan Cisne , a shuttle tanker built in 2011 that is currently operating under a bareboat charter that expires in September 2023 with Transpetro; · the Dan Sabia , a shuttle tanker built in 2012 that is currently operating under a bareboat charter that expires in January 2024 with Transpetro; · the Ingrid Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in February 2024 with Standard Marine Tønsberg AS, a Norwegian subsidiary of ExxonMobil (“ExxonMobil”), with options to extend until February 2029; · the Raquel Knutsen , a shuttle tanker built in 2015 that is currently operating under a time charter that expires in June 2025 with Repsol, with options to extend until June 2030; · the Tordis Knutsen , a shuttle tanker built in 2016 that is currently operating under a time charter that expires in January 2022 with a subsidiary of Shell, with options to extend until January 2032; · the Vigdis Knutsen , a shuttle tanker built in 2017 that is currently operating under a time charter that expires in the second quarter of 2022 with a subsidiary of Shell, with options to extend until the second quarter of 2032; · the Lena Knutsen , a shuttle tanker built in 2017 that is currently operating under a time charter that expires in the third quarter of 2022 with a subsidiary of Shell, with options to extend until the third quarter of 2032; · the Brasil Knutsen , a shuttle tanker built in 2013 that is currently operating under a time charter that expires in the third quarter of 2022 with Galp Sinopec Brazil Services B.V. (“Galp”), with options to extend until the third quarter of 2028; and · the Anna Knutsen , a shuttle tanker built in 2017 that is currently operating under a time charter that expires in the second quarter of 2022 with Galp, with options to extend until the second quarter of 2028. Lease obligations The Partnership does not have any material leased assets but has some leased equipment on operational leases on the various ships operating on time charter contracts. Consequently, adoption of the new standard resulted in recording a right-of-use asset and a lease liability on the consolidated balance sheet for operating leases of $2.3 million as of January 1, 2019. There was no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessee accounting. As of June 30, 2019, the right-of-use asset and lease liability for operating leases was $2.1 million and are presented as separate line items on the balance sheets. The operating lease cost and corresponding cash flow effect for the three and six months ended June 30, 2019 was $0.2 million and $0.3 million respectively. As of June 30, 2019, the weighted average discount rate for the operating leases was 4.8% and was determined using the expected incremental borrowing rate for a loan facility of similar term. As of June 30, 2019, the weighted average remaining lease terms are 3.5 years. A maturity analysis of the Partnership’s lease liabilities from leased-in equipment as of June 30, 2019 is as follows: (U.S. Dollars in thousands) 2019 (excluding the six months ended June 30, 2019) $ 322 2020 644 2021 644 2022 644 Total $ 2,254 Less imputed interest 180 Carrying value of operating lease liabilities $ 2,074

Insurance Proceeds

Insurance Proceeds	6 Months Ended
	Jun. 30, 2019
Insurance Proceeds
Insurance Proceeds	5) Insurance Proceeds During the fourth quarter of 2017, the Carmen Knutsen undertook her 5‑year special drydocking survey. During dismantling for overhaul, a technical default with her controllable pitch propeller was found. As a result, the Vessel went to a different yard to complete the repair. Repairs were completed and the Vessel was back on hire on January 1, 2018. The additional off-hire and technical costs were subject to an insurance claim. Under its loss of hire insurance policies, the Partnership’s insurer paid the hire rate agreed in respect of the Carmen Knutsen for each day in excess of 14 deductible days while the Vessel was off-hire as a result of the repairs of the controllable pitch propeller. For the three and six months ended June 30, 2018, the Partnership recorded $0.45 million for loss of hire which were recorded as a component of total revenues since day rates are recovered under the terms of the policy. For the year ended December 31, 2017, the Partnership recorded $2.40 million to vessel operating expense as an estimate of the cost of repairs of the controllable pitch propeller. For the six months ended June 30, 2018, an additional repair cost of $0.15 million was recorded to vessel operating expenses. As of June 30, 2018, the Partnership had received payments and recorded $2.25 million for hull and machinery repairs, resulting in a net expense of $0.30 million.

Other Finance Expenses

Other Finance Expenses	6 Months Ended
	Jun. 30, 2019
Other Finance Expenses
Other Finance Expenses	6 ) Other Finance Expenses (a) Interest Expense The following table presents a reconciliation of total interest cost and interest expense as reported in the consolidated statements of operations for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Interest expense $ 12,529 $ 11,830 $ 25,530 $ 21,848 Amortization of debt issuance cost and fair value of debt assumed 657 696 1,314 1,271 Total interest cost $ 13,186 $ 12,526 $ 26,844 $ 23,119 (b) Other Finance Expense The following table presents the other finance expense for three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Bank fees, charges $ 224 $ 151 $ 281 $ 241 Guarantee costs — 140 — 282 Commitment fees 62 (3) 123 103 Total other finance expense $ 286 $ 288 $ 404 $ 626

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2019
Derivative Instruments
Derivative Instruments	7) Derivative Instruments The unaudited condensed consolidated interim financial statements include the results of interest rate swap contracts to manage the Partnership’s exposure related to changes in interest rates on its variable rate debt instruments and the results of foreign exchange forward contracts to manage its exposure related to changes in currency exchange rates on its operating expenses, mainly crew expenses, in currency other than U.S. Dollars and on its contract obligations. The Partnership does not apply hedge accounting for derivative instruments. The Partnership does not speculate using derivative instruments. By using derivative financial instruments to economically hedge exposures to changes in interest rates, the Partnership exposes itself to credit risk and market risk. Derivative instruments that economically hedge exposures are used for risk management purposes, but these instruments are not designated as hedges for accounting purposes. Credit risk is the failure of the counterparty to perform under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty owes the Partnership, which creates credit risk for the Partnership. When the fair value of a derivative instrument is negative, the Partnership owes the counterparty, and, therefore, the Partnership is not exposed to the counterparty’s credit risk in those circumstances. The Partnership minimizes counterparty credit risk in derivative instruments by entering into transactions with major banking and financial institutions. The derivative instruments entered into by the Partnership do not contain credit risk-related contingent features. The Partnership has not entered into master netting agreements with the counterparties to its derivative financial instrument contracts. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates or commodity prices. The market risk associated with interest rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Partnership assesses interest rate risk by monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating economical hedging opportunities. The Partnership has historically used variable interest rate mortgage debt to finance its vessels. The variable interest rate mortgage debt obligations expose the Partnership to variability in interest payments due to changes in interest rates. The Partnership believes that it is prudent to limit the variability of a portion of its interest payments. To meet this objective, the Partnership has entered into London Interbank Offered Rate (“LIBOR”)-based interest rate swap contracts to manage fluctuations in cash flows resulting from changes in the benchmark interest rate of LIBOR. These swaps change the variable rate cash flow exposure on the mortgage debt obligations to fixed cash flows. Under the terms of the interest rate swap contracts, the Partnership receives LIBOR-based variable interest rate payments and makes fixed interest rate payments, thereby creating the equivalent of fixed rate debt for the notional amount of its debt hedged. As of June 30, 2019, the Partnership had entered into various interest swap agreements for a total notional amount of $571.5 million to hedge against the interest rate risks of its variable rate borrowings. Under the terms of the interest rate swap agreements, the Partnership receives interest based on three or six month LIBOR and pays a weighted average interest rate of 1.88%. As of June 30, 2019 and December 31, 2018, the total notional amount of the Partnership’s outstanding interest rate swap contracts that were entered into in order to hedge outstanding or forecasted debt obligations were $571.5 million and $555.5 million, respectively. As of June 30, 2019 and December 31, 2018, the carrying amount of the interest rate swaps contracts was a net liability of $2.7 million and a net asset of $15.9 million, respectively. See Note 8—Fair Value Measurements. Changes in the fair value of interest rate swap contracts are reported in realized and unrealized gain (loss) on derivative instruments in the same period in which the related interest affects earnings. The Partnership and its subsidiaries utilize the U.S. Dollar as their functional and reporting currency, because all of their revenues and the majority of their expenditures, including the majority of their investments in vessels and their financing transactions, are denominated in U.S. Dollars. Payment obligations in currencies other than the U.S. Dollar, and in particular operating expenses in Norwegian Kroner (“NOK”), expose the Partnership to variability in currency exchange rates. The Partnership believes that it is prudent to limit the variability of a portion of its currency exchange exposure. To meet this objective, the Partnership entered into foreign exchange forward contracts to manage fluctuations in cash flows resulting from changes in the exchange rates towards the U.S. Dollar. The agreements change the variable exchange rate to fixed exchange rates at agreed dates. As of June 30, 2019 and December 31, 2018, the total contract amount in foreign currency of the Partnership’s outstanding foreign exchange forward contracts that were entered into to economically hedge outstanding future payments in currencies other than the U.S. Dollar were NOK 169 .0 million and NOK 244.2 million, respectively. As of June 30, 2019 and December 31, 2018, the carrying amount of the Partnership’s foreign exchange forward contracts was a net liability of $0.2 million and $1.7 million, respectively. See Note 8—Fair Value Measurements. The following table presents the realized and unrealized gains and losses that are recognized in earnings as net gain (loss) on derivative instruments for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Realized gain (loss): Interest rate swap contracts $ 1,168 $ 57 $ 2,246 $ (247) Foreign exchange forward contracts (658) 134 (1,446) 1,239 Total realized gain (loss): 510 191 800 992 Unrealized gain (loss): Interest rate swap contracts (11,521) 2,995 (18,619) 11,942 Foreign exchange forward contracts 693 (1,218) 1,572 (990) Total unrealized gain (loss): (10,828) 1,777 (17,047) 10,952 Total realized and unrealized gain (loss) on derivative instruments: $ (10,318) $ 1,968 $ (16,247) $ 11,944

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Fair Value Measurements
Fair Value Measurements	8) Fair Value Measurements (a) Fair Value of Financial Instruments The following table presents the carrying amounts and estimated fair values of the Partnership’s financial instruments as of June 30, 2019 and December 31, 2018. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. June 30, 2019 December 31, 2018 Carrying Fair Carrying Fair (U.S. Dollars in thousands) Amount Value Amount Value Financial assets: Cash and cash equivalents $ 42,429 $ 42,429 $ 41,712 $ 41,712 Current derivative assets: Interest rate swap contracts 1,856 1,856 4,621 4,621 Foreign exchange forward contracts 125 125 — — Non-current derivative assets: Interest rate swap contracts 914 914 11,667 11,667 Financial liabilities: Current derivative liabilities: Interest rate swap contracts 132 132 — — Foreign exchange forward contracts 294 294 1,740 1,740 Non-current derivative liabilities: Interest rate swap contracts 5,314 5,314 345 345 Long-term debt, current and non-current 1,045,686 1,045,686 1,087,347 1,087,347 The carrying amounts shown in the table above are included in the consolidated balance sheets under the indicated captions. Carrying amount of long-term debt, current and non-current, above excludes capitalized debt issuance cost of $8.7 million and $10.1 million as of June 30, 2019 and December 31, 2018 , respectively. The carrying value of trade accounts receivable, trade accounts payable and receivables/payables to owners and affiliates approximate their fair value. The fair values of the financial instruments shown in the above table as of June 30, 2019 and December 31, 2018 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Partnership’s own judgment about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Partnership based on the best information available in the circumstances, including expected cash flows, appropriately risk-adjusted discount rates and available observable and unobservable inputs. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: · Cash and cash equivalents and restricted cash : The fair value of the Partnership’s cash balances approximates the carrying amounts due to the current nature of the amounts. As of June 30, 2019 and December 31, 2018 there is no restricted cash. · Foreign exchange forward contracts : The fair value is calculated using mid-rates (excluding margins) as determined by counterparties based on available market rates as of the balance sheet date. The fair value is discounted from the value at expiration to the current value of the contracts. · Interest rate swap contracts : The fair value of interest rate swap contracts is determined using an income approach using the following significant inputs: (1) the term of the swap contract (weighted average of 4.4 years and 4.9 years, as of June 30, 2019 and December 31, 2018 , respectively), (2) the notional amount of the swap contract (ranging from $9.3 million to $50.0 million for the contracts as of June 30,2019 and ranging from $10.0 million to $50.0 million for the contracts as of December 31, 2018), discount rates interpolated based on relevant LIBOR swap curves; and (3) the rate on the fixed leg of the swap contract (rates ranging from 1.38% to 2.90% as of June 30, 2019 and as of December 31, 2018). · Long-term debt : With respect to long-term debt measurements, the Partnership uses market interest rates and adjusts for risks, such as its own credit risk. In determining an appropriate spread to reflect its credit standing, the Partnership considered interest rates currently offered to KNOT for similar debt instruments of comparable maturities by KNOT’s and the Partnership’s bankers as well as other banks that regularly compete to provide financing to the Partnership. (b) Fair Value Hierarchy The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (including items that are required to be measured at fair value or for which fair value is required to be disclosed) as of June 30, 2019 and December 31, 2018: Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable June 30, Assets Inputs Inputs (U.S. Dollars in thousands) 2019 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 42,429 $ 42,429 $ — $ — Current derivative assets: Interest rate swap contracts 1,856 — 1,856 — Foreign exchange forward contracts 125 — 125 — Non-current derivative assets: Interest rate swap contracts 914 — 914 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 132 — 132 — Foreign exchange forward contracts 294 — 294 — Non-current derivative liabilities: Interest rate swap contracts 5,314 — 5,314 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,045,686 — 1,045,686 — Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable December 31, Assets Inputs Inputs (U.S. Dollars in thousands) 2018 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 41,712 $ 41,712 $ — $ — Current derivative assets: Interest rate swap contracts 4,621 — 4,621 — Foreign exchange forward contracts — — — — Non-current derivative assets: Interest rate swap contracts 11,667 — 11,667 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts — — — — Foreign exchange forward contracts 1,740 — 1,740 — Non-current derivative liabilities: Interest rate swap contracts 345 — 345 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,087,347 — 1,087,347 — The Partnership’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2 or Level 3 as of June 30, 2019 and December 31, 2018.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Taxes
Income Taxes	9) Income Taxes Components of Current and Deferred Tax Expense After the reorganization of the Partnership’s predecessor’s activities into the new group structure in February 2013, all profit from continuing operations in Norway is taxable within the tonnage tax regime. The consequence of the reorganization was a one-time entrance tax into the tonnage tax regime due to the Partnership’s acquisition of the shares in the subsidiary that owns the Fortaleza Knutsen and the Recife Knutsen . Under the tonnage tax regime, the tax is based on the tonnage of the vessel and operating income is tax free. The net financial income and expense remains taxable as ordinary income tax for entities subject to the tonnage tax regime. Income taxes arising from the part of activities subject to ordinary taxation are included in income tax expense in the consolidated statements of operations. For the portion of activities subject to the tonnage tax regime, tonnage taxes are classified as vessel operating expenses while the current and deferred taxes arising on net financial income and expense are reflected as income tax expense in the consolidated statements of operations. The total amount of the entrance tax was estimated to be approximately $3.0 million, which was recognized in the three months ended March 31, 2013. The entrance tax is payable over several years and is calculated by multiplying the tax rate by the declining balance of the gain, which will decline by 20% each year. The amount payable will be affected by the change in tax rate which was reduced to 22% in 2019 from 23% in 2018. Approximately $0.1 million and $0.2 million of the entrance tax was paid during the first quarter of 2019 and 2018, respectively. As of June 30, 2019 and December 31, 2018, UK income tax is presented as income taxes payable, while $0.5 million is presented as non-current deferred taxes payable. Significant components of current and deferred income tax expense attributable to income from continuing operations for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Income before income taxes $ 8,179 $ 21,684 $ 21,051 $ 52,411 Income tax (expense) (3) (3) (6) (6) Effective tax rate $ % $ % $ % $ % The Partnership records a valuation allowance for deferred tax assets when it is more likely than not that some of or all of the benefit from the deferred tax assets will not be realized. In assessing the realizability of deferred tax assets, which relates to financial loss carry forwards and other deferred tax assets within the tonnage tax regime, the Partnership considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized taking into account all the positive and negative evidence available. As of June 30, 2019 and December 31, 2018 there are no deferred tax assets recognized.

Vessels and Equipment

Vessels and Equipment	6 Months Ended
	Jun. 30, 2019
Vessels and Equipment
Vessels and Equipment	10) Vessels and Equipment As of June 30, 2019 and December 2018, Vessels with a book value of $1,722 million and $1,767 million, respectively, are pledged as security held as a guarantee for the Partnership’s long-term debt. See Note 12—Long-term debt. Vessels & Accumulated (U.S. Dollars in thousands) equipment depreciation Net Vessels Vessels, December 31, 2017 $ 2,003,341 $ (280,318) $ 1,723,023 Additions 118,063 — 118,063 Drydock costs 14,750 — 14,750 Disposals (5,731) 5,731 — Depreciation for the year — (88,756) (88,756) Vessels, December 31, 2018 $ 2,130,423 $ (363,343) $ 1,767,080 Additions — — — Drydock costs (69) — (69) Disposals — — — Depreciation for the period — (44,860) (44,860) Vessels, June 30, 2019 $ 2,130,354 $ (408,203) $ 1,722,151

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2019
Intangible Assets
Intangible Assets	11) Intangible Assets Above market Above market time charter time charter Total (U.S. Dollars in thousands) Tordis Knutsen Vigdis Knutsen intangibles Intangibles, December 31, 2017 $ 1,215 $ 1,282 $ 2,497 Additions — — — Amortization for the year (304) (302) (606) Intangibles, December 31, 2018 $ 911 $ 980 $ 1,891 Additions — — — Amortization for the period (151) (151) (302) Intangibles, June 30, 2019 $ 760 $ 829 $ 1,589 The intangible for the above-market value of the time charter contract associated with the Tordis Knutsen is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 4.8 years as of the acquisition date. The intangible for the above-market value of the time charter contract associated with the Vigdis Knutsen is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 4.9 years as of the acquisition date.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2019
Long-Term Debt.
Long-Term Debt	12) Long-Term Debt As of June 30, 2019 and December 31, 2018, the Partnership had the following debt amounts outstanding: June 30, December 31, (U.S. Dollars in thousands) Vessel 2019 2018 $320 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen, Fortaleza Knutsen, Recife Knutsen, Ingrid Knutsen $ 297,416 $ 312,472 $55 million revolving credit facility 26,279 26,279 Hilda loan facility Hilda Knutsen 87,692 90,769 Torill loan facility Torill Knutsen 91,667 95,000 $172.5 million loan facility Dan Cisne, Dan Sabia 76,839 81,839 Raquel loan facility Raquel Knutsen 60,569 63,184 Tordis loan facility Tordis Knutsen 83,461 85,991 Vigdis loan facility Vigdis Knutsen 84,726 87,256 Lena loan facility Lena Knutsen 83,300 85,750 Brasil loan facility Brasil Knutsen 60,423 63,454 Anna loan facility Anna Knutsen 68,314 70,353 $25 million revolving credit facility 25,000 25,000 Total long-term debt 1,045,686 1,087,347 Less: current installments 85,845 109,534 Less: unamortized deferred loan issuance costs 2,560 2,608 Current portion of long-term debt 83,285 106,926 Amounts due after one year 959,841 977,813 Less: unamortized deferred loan issuance costs 6,161 7,448 Long-term debt, less current installments, and unamortized deferred loan issuance costs $ 953,680 $ 970,365 The Partnership’s outstanding debt of $1,045.7 million as of June 30, 2019 is repayable as follows: (U.S. Dollars in thousands) Period repayment Balloon repayment Remainder of 2019 $ 42,873 $ — 2020 85,945 — 2021 86,545 95,811 2022 71,210 236,509 2023 55,535 202,185 2024 and thereafter 15,180 153,893 Total $ 357,288 $ 688,398 As of June 30, 2019, the interest rates on the Partnership’s loan agreements were LIBOR plus a fixed margin ranging from 1.8% to 2.4%. On June 28, 2019, the Partnership’s subsidiary, KNOT Shuttle Tankers AS, which owns the vessel-owning entities, extended the maturity of its unsecured revolving credit facility of $25 million with NTT Finance Corporation. The facility matures in August 2021, bears interest at LIBOR plus 1.8% and has a commitment fee of 0.5% on the undrawn portion of the facility. The commercial terms of the facility are unchanged from the facility entered into in June 2017 with NTT Finance Corporation.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions
Related Party Transactions	13) Related Party Transactions (a) Related Parties Net expenses (income) from related parties included in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 are as follows: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Statements of operations: Other income: Guarantee income from KNOT (1) $ — $ 94 $ — $ 749 Operating expenses: Technical and operational management fee from KNOT to Vessels (2) 1,736 1,509 3,479 3,019 General and administrative expenses: Administration fee from KNOT Management (3) 314 449 648 812 Administration fee from KOAS (3) 174 148 345 290 Administration fee from KOAS UK (3) 30 30 60 60 Administration and management fee from KNOT (4) 42 41 85 80 Total $ 2,296 $ 2,083 $ 4,617 $ 3,512 At June 30, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (5) $ — $ 187 Drydocking supervision fee from KOAS (5) — 24 Total $ — $ 211 (1) Guarantee income from KNOT : Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charter of the Bodil Knutsen and Windsor Knutsen for a period of five years from the closing date of the IPO (until April 15, 2018). In October 2015, the Windsor Knutsen commenced on a new Shell time charter with a hire rate below the hire rate in the initial charter. The difference between the new hire rate and the initial rate was paid by KNOT until April 15, 2018. See Note 13(b)—Related Party Transactions—Guarantees and Indemnifications. (2) Technical and operational management fee from KNOT Management or KNOT Management Denmark to Vessels : KNOT Management or KNOT Management Denmark provides technical and operational management of the vessels on time charter including crewing, purchasing, maintenance and other operational service. In addition, there is also a charge for 24‑hour emergency response services provided by KNOT Management for all vessels managed by KNOT Management. (3) Administration fee from KNOT Management, Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. (“KOAS UK”) : Administration costs include the compensation and benefits of KNOT Management’s management and administrative staff as well as other general and administration expenses. Some benefits are also provided by KOAS and KOAS UK. Net administration costs are total administration cost plus a 5% margin, reduced for the total fees for services delivered by the administration staffs and the estimated shareholder costs for KNOT that have not been allocated. As such, the level of net administration costs as a basis for the allocation can vary from year to year based on the administration and financing services offered by KNOT to all the vessels in its fleet each year. KNOT Management also charges each subsidiary a fixed annual fee for the preparation of the statutory financial statement. (4) Administration and management fee from KNOT Management and KNOT Management Denmark : For bareboat charters, the shipowner is not responsible for providing crewing or other operational services and the customer is responsible for all vessel operating expenses and voyage expenses. However, each of the vessels under bareboat charters is subject to a management and administration agreement with either KNOT Management or KNOT Management Denmark, pursuant to which these companies provide general monitoring services for the vessels in exchange for an annual fee. (5) Drydocking supervision fee from KNOT and KOAS : KNOT and KOAS provide supervision and hire out service personnel during drydocking of the vessels. The fee is calculated as a daily fixed fee. (b) Guarantees and Indemnifications Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charters of each of the Windsor Knutsen and the Bodil Knutsen for a period of five years from the closing date of the IPO (until April 15, 2018). In April 2014, the Partnership was notified that Shell would not exercise its option to extend the Windsor Knutsen time charter after the expiration of its initial term. The vessel was re-delivered on July 28, 2014. In order to comply with its obligations under the Omnibus Agreement, on July 29, 2014, KNOT and the Partnership entered into a time charter for the vessel at a rate of hire that would have been in effect during the option period under the previous Shell time charter. This charter was effective until the new Shell time charter commenced in October 2015. The new Shell charter has a hire rate that is lower than the hire rate in the initial charter. The difference between the new hire rate and the initial rate was paid by KNOT until April 15, 2018. Under the Omnibus Agreement, KNOT agreed to indemnify the Partnership until April 15, 2018 (or for a period of at least three years after the purchase of the Hilda Knutsen , the Torill Knutsen , the Ingrid Knutsen and the Raquel Knutsen , as applicable), against certain environmental and toxic tort liabilities with respect to certain assets that KNOT contributed or sold to the Partnership to the extent arising prior to the time they were contributed or sold. However, claims are subject to a deductible of $0.5 million and an aggregate cap of $5 million. (c) Transactions with Management and Directors See the footnotes to Note 13(a)—Related Party Transactions for a discussion of the allocation principles for KNOT’s administrative costs, including management and administrative staff, included in the consolidated statements of operations. (d) Amounts Due from (to) Related Parties Balances with related parties consisted of the following: At June 30, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due from KOAS $ 578 $ 466 Trading balances due from KNOT and affiliates 926 675 Amount due from related parties $ 1,504 $ 1,141 Trading balances due to KOAS $ 688 $ 629 Trading balances due to KNOT and affiliates 501 441 Amount due to related parties $ 1,189 $ 1,070 Amounts due from (to) related parties are unsecured and intended to be settled in the ordinary course of business. The majority of these related party transactions relate to vessel management and other fees due to KNOT, KNOT Management, KOAS UK and KOAS. (e) Trade accounts payable Trade accounts payable to related parties are included in total trade accounts payable in the balance sheet. The balances to related parties consisted of the following: At June 30, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due to KOAS $ 552 $ 381 Trading balances due to KNOT and affiliates 382 411 Trade accounts payable to related parties $ 934 $ 792 (f) Acquisitions from KNOT On March 1, 2018, the Partnership acquired KNOT’s 100% interest in KNOT Shuttle Tankers 30 AS (“KNOT 30”), the company that owns and operates the Anna Knutsen. This acquisition was accounted for as an acquisition of assets. The board of directors of the Partnership (the “Board”) and the conflicts committee of the Board (the “Conflicts Committee”) approved the purchase price for the transaction described above. The Conflicts Committee retained a financial advisor to assist with its evaluation of the transaction. See Note 16—Acquisitions.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	14) Commitments and Contingencies Assets Pledged As of June 30, 2019 and December 31, 2018, Vessels with a book value of $1,722 million and $1,767 million, respectively, were pledged as security held as guarantee for the Partnership’s long-term debt and interest rate swap obligations. See Note 7—Derivative Instruments and Note 12—Long-Term Debt. Claims and Legal Proceedings From time to time, the Partnership is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows. Insurance The Partnership maintains insurance on all the Vessels to insure against marine and war risks, which include damage to or total loss of the Vessels, subject to deductible amounts that average $0.15 million per Vessel, and loss of hire. Under the loss of hire policies, the insurer will pay a compensation for the lost hire rate agreed in respect of each Vessel for each day, in excess of 14 deductible days, for the time that the Vessel is out of service as a result of damage, for a maximum of 180 days. In addition, the Partnership maintains protection and indemnity insurance, which covers third-party legal liabilities arising in connection with the Vessels’ activities, including, among other things, the injury or death of third-party persons, loss or damage to cargo, claims arising from collisions with other vessels and other damage to other third-party property, including pollution arising from oil or other substances. This insurance is unlimited, except for pollution, which is limited to $1 billion per vessel per incident. The protection and indemnity insurance is maintained through a protection and indemnity association, and as a member of the association, the Partnership may be required to pay amounts above budgeted premiums if the member claims exceed association reserves, subject to certain reinsured amounts. If the Partnership experiences multiple claims each with individual deductibles, losses due to risks that are not insured or claims for insured risks that are not paid, it could have a material adverse effect on the Partnership’s results of operations and financial condition. Carmen Knutsen During the fourth quarter of 2017, the Carmen Knutsen undertook her 5‑year special drydocking survey. During dismantling for overhaul, a technical default with her controllable pitch propeller was found. As a result, the Vessel went to a different yard to complete the repair. Repairs were completed and the Vessel was back on hire on January 1, 2018. The additional off-hire and technical costs were subject to an insurance claim. Under its loss of hire insurance policies, the Partnership’s insurer paid the hire rate agreed in respect of the Carmen Knutsen for each day in excess of 14 deductible days while the Vessel was off-hire as a result of the repairs of the controllable pitch propeller. For the three and six months ended June 30, 2018, the Partnership recorded $0.45 million for loss of hire which were recorded as a component of total revenues since day rates are recovered under the terms of the policy. For the year ended December 31, 2017, the Partnership recorded $2.40 million to vessel operating expense as an estimate of the cost of repairs of the controllable pitch propeller. For the six months ended June 30, 2018, an additional repair cost of $0.15 million was recorded to vessel operating expenses. As of June 30, 2018, the Partnership had received payments and recorded $2.25 million for hull and machinery repairs, resulting in a net expense of $0.30 million. See Note 5—Insurance Proceeds.

Earnings per Unit and Cash Dist

Earnings per Unit and Cash Distributions	6 Months Ended
	Jun. 30, 2019
Earnings per Unit and Cash Distributions
Earnings per Unit and Cash Distributions	15) Earnings per Unit and Cash Distributions The calculations of basic and diluted earnings per unit (1) are presented below: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands, except per unit data) 2019 2018 2019 2018 Net income $ 8,176 $ 21,681 $ 21,045 $ 52,405 Less: Series A Preferred unitholders’ interest in net income 1,800 1,800 3,600 3,600 Net income attributable to the unitholders of KNOT Offshore Partners LP 6,376 19,881 17,445 48,805 Less: Distributions (2) 18,034 18,034 36,068 36,068 Under (over) distributed earnings (11,658) 1,847 (18,623) 12,737 Under (over) distributed earnings attributable to: Common unitholders (3) (11,442) 1,813 (18,279) 12,502 General Partner (215) 34 (344) 235 Weighted average units outstanding (basic) (in thousands): Common unitholders 32,694 32,694 32,694 32,694 General Partner 615 615 615 615 Weighted average units outstanding (diluted) (in thousands): Common unitholders (4) 32,694 36,355 32,694 36,360 General Partner 615 615 615 615 Earnings per unit (basic) Common unitholders $ 0.191 $ 0.597 $ 0.524 $ 1.465 General Partner 0.191 0.597 0.524 1.465 Earnings per unit (diluted): Common unitholders (4) $ 0.191 $ 0.585 $ 0.524 $ 1.415 General Partner 0.191 0.597 0.524 1.465 Cash distributions declared and paid in the period per unit (5) 0.520 0.520 1.040 1.040 Subsequent event: Cash distributions declared and paid per unit relating to the period (6) 0.520 0.520 1.040 1.040 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership Agreement. (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the record date. This includes cash distributions to the IDR holder (KNOT) for the three months ended June 30, 2019 and 2018 of $0.7 million and for the six months ended June 30, 2019 and 2018 of $1.4 million. (3) This includes the net income attributable to the IDR holder. The net income attributable to IDRs for the three months ended June 30, 2019 and 2018 was $0.7 million and for the six months ended June 30, 2019 and 2018 was $1.4. (4) Diluted weighted average units outstanding and earnings per unit diluted for the three and six months ended June 30, 2019 does not reflect any potential common shares relating to the convertible preferred units since the assumed issuance of any additional shares would be anti-dilutive. (5) Refers to cash distributions declared and paid during the period. (6) Refers to cash distributions declared and paid subsequent to the period end. As of June 30, 2019, 73.5% of the Partnership’s total number of common units outstanding representing limited partner interests were held by the public (in the form of 24,036,226 common units) and 26.2% of such units were held directly by KNOT (in the form of 8,567,500 common units). In addition, KNOT, through its ownership of the General Partner, held a 1.85% general partner interest (in the form of 615,117 general partner units) and a 0.3% limited partner interest (in the form of 90,368 common units). Earnings per unit – basic is determined by dividing net income, after deducting the amount of net income attributable to the Series A Preferred Units and the distribution paid or to be made in relation to the period, by the weighted-average number of units outstanding during the applicable period. The computation of limited partners’ interest in net income per common unit – diluted assumes the issuance of common units for all potentially dilutive securities consisting of 3,750,000 Series A Preferred Units. Consequently, the net income attributable to limited partners’ interest is exclusive of any distributions on the Series A Preferred Units. In addition, the weighted average number of common units outstanding has been increased assuming the Series A Preferred Units have been converted to common units using the if-converted method. The computation of limited partners’ interest in net income per common unit – diluted does not assume the issuance of Series A Preferred Units if the effect would be anti-dilutive. The General Partner’s and common unitholders’ interest in net income was calculated as if all net income was distributed according to the terms of the Partnership Agreement, regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income. Rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of each quarter less the amount of cash reserves established by the Board to provide for the proper conduct of the Partnership’s business, including reserves for maintenance and replacement capital expenditures, anticipated credit needs and capital requirements and any accumulated distributions on, or redemptions of, the Series A Preferred Units. In addition, KNOT, as the initial holder of all IDRs, has the right, at the time when it has received incentive distributions at the highest level to which it is entitled (48.0% for each of the prior four consecutive fiscal quarters), to reset the initial cash target distribution levels at higher levels based on the distribution at the time of the exercise of the reset election. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains and losses on derivative instruments and unrealized foreign currency gains and losses.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2019
Acquisitions
Acquisitions	16) Acquisitions In March 2018, the Partnership acquired from KNOT equity interests in the subsidiary which own and operate the Anna Knutsen. The Board and the Conflicts Committee approved the purchase price for the transaction. The Conflicts Committee retained a financial advisor to assist with its evaluation of the transaction. The details of the transaction are as follows: Final Anna Knutsen March 1, (U.S. Dollars in thousands) 2018 Purchase consideration (1) $ 19,913 Less: Fair value of net assets acquired: Vessels and equipment (2) 120,274 Cash 4,537 Inventories 257 Derivative assets 1,839 Others current assets 111 Amounts due from related parties 520 Long-term debt (84,217) Long-term debt from related parties (22,535) Deferred debt issuance 1,228 Trade accounts payable (971) Accrued expenses (1,013) Amounts due to related parties (117) Subtotal 19,913 Difference between the purchase price and fair value of net assets acquired $ — (1) The purchase price is comprised of the following: Final AnnaKnutsen March 1, (U.S. Dollars in thousands) 2018 Cash consideration paid to KNOT (from KNOT) $ 14,637 Purchase price adjustments 5,276 Purchase price $ 19,913 (2) Vessel and equipment includes allocation to drydocking of $2,329. Anna Knutsen On March 1, 2018, the Partnership’s wholly owned subsidiary, KNOT Shuttle Tankers AS, acquired KNOT’s 100% interest in KNOT 30, the company that owns and operates the Anna Knutsen. The purchase price for the vessel was $120.0 million, less $106.8 million of outstanding indebtedness, plus approximately $1.4 million for certain capitalized fees related to the financing of the vessel and plus other purchase price adjustments of $5.3 million. Following of adoption of ASU 2017‑01, Business Combinations: Clarifying the Definition of a Business, the Partnership accounted for this acquisition as an acquisition of an asset. The cost of the group of assets acquired in the asset acquisition has been allocated to the individual assets acquired or liabilities assumed based on their relative fair values.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events
Subsequent Events	17) Subsequent Events The Partnership has evaluated subsequent events from the balance sheet date through August 29, 2019, the date at which the unaudited condensed consolidated interim financial statements were available to be issued, and determined that there are no other items to disclose, except as follows: On July 16, 2019, a subsidiary of Shell exercised its option to extend the time charter of the vessel Windsor Knutsen by one additional year until October 2020. On August 14, 2019, the Partnership paid a quarterly cash distribution of $0.52 per common unit with respect to the quarter ended June 30, 2019 to all common unitholders of record on July 26, 2019. On August 14, 2019, the Partnership paid a cash distribution to holders of Series A Preferred Units with respect to the quarter ended June 30, 2019 in an aggregate amount equal to $1.8 million.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Basis of Preparation	(a) Basis of Preparation The accompanying unaudited condensed consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. In the opinion of management of the Partnership, all adjustments considered necessary for a fair presentation, which are of normal recurring nature, have been included. All intercompany balances and transactions are eliminated. The unaudited condensed consolidated financial statements do not include all the disclosures and information required for a complete set of annual financial statements; and, therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2018, which are included in the Partnership’s Annual Report on Form 20-F (the “2018 20-F”).
Significant accounting policies	(b) Significant Accounting Policies Except as described below under (c) Recent Accounting Pronouncements - Adoption of new accounting standards ”, the accounting policies adopted in the preparation of the unaudited condensed consolidated interim financial statements are consistent with those followed in the preparation of the Partnership’s audited consolidated financial statements for the year ended December 31, 2018, as contained in the Partnership’s 2018 20-F.
Recently Adopted Accounting Standards and New Accounting Standards Not Yet Adopted	(c) Recent Accounting Pronouncements Adoption of new accounting standards In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02, Leases (ASC 842), that amends the accounting guidance on leases for both lessors and lessees. On January 1, 2019, the Partnership adopted the new standard using the optional transition method to apply the new standard at the transition date of January 1, 2019 with no retrospective adjustments to prior periods. Consequently, the accounting and disclosures for the prior periods continue to be presented in accordance with the previous standard for leases. The Partnership elected the package of practical expedients and has not reassessed whether any expired or existing contracts are, or contain leases, not reassessed lease classifications, and not reassessed initial direct costs for any existing leases. Additionally, the practical expedient of disregarding short-term leases for agreements with lease terms of 12 months or less as a lessee was adopted as an accounting policy for all underlying assets. The Partnership’s time charter contracts include both a lease component, consisting of the lease of the vessel, and non-lease component, consisting of operation of the vessel for the customers. The Partnership has elected to use the practical expedient to not separate the non-lease component from the lease component for all such charters where the lease component is classified as an operating lease, and account for the combined components as an operating lease. Consequently, there were no changes to the timing or amount of revenue recognized, and therefore, no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessor accounting. Additional qualitative and quantitative disclosures are required and have been implemented for reporting periods beginning as of January 1, 2019, while prior periods are not adjusted and continue to be reported under the previous accounting standards. See Note 4—Operating Leases. The Partnership does not have any material leased assets. Adoption of the new standard resulted in recording a right-of-use asset and a lease liability on the consolidated balance sheet for operating leases of $2.3 million and $2.3 million, respectively, as of January 1, 2019. There was no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessee accounting. As of June 30, 2019, the right-of-use asset and lease liability for operating leases was $2.1 million and $2.1 million, respectively, and are presented in separate lines on the balance sheets. See Note 4—Operating Leases. Accounting pronouncements to be adopted Recently issued accounting pronouncements are not expected to materially impact the Partnership.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Information
Schedule consolidated revenues and percentages of revenues for customers	Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Eni Trading and Shipping S.p.A. $ 11,134 16 % $ 11,555 17 % $ 22,146 16 % $ 22,936 17 % Fronape International Company, a subsidiary of Petrobras Transporte S.A. 11,249 16 % 11,248 16 % 22,378 16 % 22,378 16 % Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V. 9,282 13 % 9,283 13 % 18,463 13 % 18,222 13 % Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell 20,606 29 % 20,399 29 % 40,889 29 % 40,572 30 % Galp Sinopec Brasil Services B.V. 8,881 13 % 6,438 9 % 17,584 12 % 12,071 9 %

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Operating Leases
Schedule of Partnership revenus by lease and non-lease contracts	Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Lease revenue from lease payment of operating leases $ 70,908 $ 69,221 $ 141,456 $ 136,608 Non-lease revenues (loss of hire insurance recoveries and other income) 14 544 15 1,200 Total revenues $ 70,922 $ 69,765 $ 141,471 $ 137,808
Schedule of minimum contractual future revenues	As of June 30, 2019, the minimum contractual future revenues to be received from time charters and bareboat charters during the next five years and thereafter are as follows: (U.S. Dollars in thousands) 2019 (excluding the six months ended June 30, 2019) $ 136,536 2020 240,710 2021 219,841 2022 152,078 2023 63,918 2024 and therafter 28,674 Total $ 841,757
Schedule of maturity analysis of partnership's lease liabilities	A maturity analysis of the Partnership’s lease liabilities from leased-in equipment as of June 30, 2019 is as follows: (U.S. Dollars in thousands) 2019 (excluding the six months ended June 30, 2019) $ 322 2020 644 2021 644 2022 644 Total $ 2,254 Less imputed interest 180 Carrying value of operating lease liabilities $ 2,074

Other Finance Expenses (Tables)

Other Finance Expenses (Tables)	6 Months Ended
	Jun. 30, 2019
Other Finance Expenses
Summary of components of interest cost	Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Interest expense $ 12,529 $ 11,830 $ 25,530 $ 21,848 Amortization of debt issuance cost and fair value of debt assumed 657 696 1,314 1,271 Total interest cost $ 13,186 $ 12,526 $ 26,844 $ 23,119
Summary of components of other finance expense	Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Bank fees, charges $ 224 $ 151 $ 281 $ 241 Guarantee costs — 140 — 282 Commitment fees 62 (3) 123 103 Total other finance expense $ 286 $ 288 $ 404 $ 626

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Derivative Instruments
Schedule of realized and unrealized gains and losses recognized in earnings	: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Realized gain (loss): Interest rate swap contracts $ 1,168 $ 57 $ 2,246 $ (247) Foreign exchange forward contracts (658) 134 (1,446) 1,239 Total realized gain (loss): 510 191 800 992 Unrealized gain (loss): Interest rate swap contracts (11,521) 2,995 (18,619) 11,942 Foreign exchange forward contracts 693 (1,218) 1,572 (990) Total unrealized gain (loss): (10,828) 1,777 (17,047) 10,952 Total realized and unrealized gain (loss) on derivative instruments: $ (10,318) $ 1,968 $ (16,247) $ 11,944

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Measurements
Carrying amounts and estimated fair values of financial instruments	June 30, 2019 December 31, 2018 Carrying Fair Carrying Fair (U.S. Dollars in thousands) Amount Value Amount Value Financial assets: Cash and cash equivalents $ 42,429 $ 42,429 $ 41,712 $ 41,712 Current derivative assets: Interest rate swap contracts 1,856 1,856 4,621 4,621 Foreign exchange forward contracts 125 125 — — Non-current derivative assets: Interest rate swap contracts 914 914 11,667 11,667 Financial liabilities: Current derivative liabilities: Interest rate swap contracts 132 132 — — Foreign exchange forward contracts 294 294 1,740 1,740 Non-current derivative liabilities: Interest rate swap contracts 5,314 5,314 345 345 Long-term debt, current and non-current 1,045,686 1,045,686 1,087,347 1,087,347
Schedule of assets and liabilities measured at fair value on recurring basis	Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable June 30, Assets Inputs Inputs (U.S. Dollars in thousands) 2019 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 42,429 $ 42,429 $ — $ — Current derivative assets: Interest rate swap contracts 1,856 — 1,856 — Foreign exchange forward contracts 125 — 125 — Non-current derivative assets: Interest rate swap contracts 914 — 914 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts 132 — 132 — Foreign exchange forward contracts 294 — 294 — Non-current derivative liabilities: Interest rate swap contracts 5,314 — 5,314 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,045,686 — 1,045,686 — Fair Value Measurements at Reporting Date Using Quoted Price in Active Significant Carrying Markets for Other Significant Value Identical Observable Unobservable December 31, Assets Inputs Inputs (U.S. Dollars in thousands) 2018 (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 41,712 $ 41,712 $ — $ — Current derivative assets: Interest rate swap contracts 4,621 — 4,621 — Foreign exchange forward contracts — — — — Non-current derivative assets: Interest rate swap contracts 11,667 — 11,667 — Foreign exchange forward contracts — — — — Financial liabilities: Current derivative liabilities: Interest rate swap contracts — — — — Foreign exchange forward contracts 1,740 — 1,740 — Non-current derivative liabilities: Interest rate swap contracts 345 — 345 — Foreign exchange forward contracts — — — — Long-term debt, current and non-current 1,087,347 — 1,087,347 —

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2019
Income Taxes
Significant Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations	Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Income before income taxes $ 8,179 $ 21,684 $ 21,051 $ 52,411 Income tax (expense) (3) (3) (6) (6) Effective tax rate $ % $ % $ % $ %

Vessels and Equipment (Tables)

Vessels and Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
Vessels and Equipment
Schedule of vessels and equipment	Vessels & Accumulated (U.S. Dollars in thousands) equipment depreciation Net Vessels Vessels, December 31, 2017 $ 2,003,341 $ (280,318) $ 1,723,023 Additions 118,063 — 118,063 Drydock costs 14,750 — 14,750 Disposals (5,731) 5,731 — Depreciation for the year — (88,756) (88,756) Vessels, December 31, 2018 $ 2,130,423 $ (363,343) $ 1,767,080 Additions — — — Drydock costs (69) — (69) Disposals — — — Depreciation for the period — (44,860) (44,860) Vessels, June 30, 2019 $ 2,130,354 $ (408,203) $ 1,722,151

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Intangible Assets
Schedule of intangible assets	Above market Above market time charter time charter Total (U.S. Dollars in thousands) Tordis Knutsen Vigdis Knutsen intangibles Intangibles, December 31, 2017 $ 1,215 $ 1,282 $ 2,497 Additions — — — Amortization for the year (304) (302) (606) Intangibles, December 31, 2018 $ 911 $ 980 $ 1,891 Additions — — — Amortization for the period (151) (151) (302) Intangibles, June 30, 2019 $ 760 $ 829 $ 1,589

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Long-Term Debt.
Schedule of Long-Term Debt	June 30, December 31, (U.S. Dollars in thousands) Vessel 2019 2018 $320 million loan facility Windsor Knutsen, Bodil Knutsen, Carmen Knutsen, Fortaleza Knutsen, Recife Knutsen, Ingrid Knutsen $ 297,416 $ 312,472 $55 million revolving credit facility 26,279 26,279 Hilda loan facility Hilda Knutsen 87,692 90,769 Torill loan facility Torill Knutsen 91,667 95,000 $172.5 million loan facility Dan Cisne, Dan Sabia 76,839 81,839 Raquel loan facility Raquel Knutsen 60,569 63,184 Tordis loan facility Tordis Knutsen 83,461 85,991 Vigdis loan facility Vigdis Knutsen 84,726 87,256 Lena loan facility Lena Knutsen 83,300 85,750 Brasil loan facility Brasil Knutsen 60,423 63,454 Anna loan facility Anna Knutsen 68,314 70,353 $25 million revolving credit facility 25,000 25,000 Total long-term debt 1,045,686 1,087,347 Less: current installments 85,845 109,534 Less: unamortized deferred loan issuance costs 2,560 2,608 Current portion of long-term debt 83,285 106,926 Amounts due after one year 959,841 977,813 Less: unamortized deferred loan issuance costs 6,161 7,448 Long-term debt, less current installments, and unamortized deferred loan issuance costs $ 953,680 $ 970,365
Summary of Partnership's Outstanding Debt Repayable	The Partnership’s outstanding debt of $1,045.7 million as of June 30, 2019 is repayable as follows: (U.S. Dollars in thousands) Period repayment Balloon repayment Remainder of 2019 $ 42,873 $ — 2020 85,945 — 2021 86,545 95,811 2022 71,210 236,509 2023 55,535 202,185 2024 and thereafter 15,180 153,893 Total $ 357,288 $ 688,398

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Related Party Transactions
Schedule of Related Party Costs and Expenses	Net expenses (income) from related parties included in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 are as follows: Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands) 2019 2018 2019 2018 Statements of operations: Other income: Guarantee income from KNOT (1) $ — $ 94 $ — $ 749 Operating expenses: Technical and operational management fee from KNOT to Vessels (2) 1,736 1,509 3,479 3,019 General and administrative expenses: Administration fee from KNOT Management (3) 314 449 648 812 Administration fee from KOAS (3) 174 148 345 290 Administration fee from KOAS UK (3) 30 30 60 60 Administration and management fee from KNOT (4) 42 41 85 80 Total $ 2,296 $ 2,083 $ 4,617 $ 3,512 At June 30, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Vessels: Drydocking supervision fee from KNOT (5) $ — $ 187 Drydocking supervision fee from KOAS (5) — 24 Total $ — $ 211 (1) Guarantee income from KNOT : Pursuant to the Omnibus Agreement, KNOT agreed to guarantee the payments of the hire rate under the initial charter of the Bodil Knutsen and Windsor Knutsen for a period of five years from the closing date of the IPO (until April 15, 2018). In October 2015, the Windsor Knutsen commenced on a new Shell time charter with a hire rate below the hire rate in the initial charter. The difference between the new hire rate and the initial rate was paid by KNOT until April 15, 2018. See Note 13(b)—Related Party Transactions—Guarantees and Indemnifications. (2) Technical and operational management fee from KNOT Management or KNOT Management Denmark to Vessels : KNOT Management or KNOT Management Denmark provides technical and operational management of the vessels on time charter including crewing, purchasing, maintenance and other operational service. In addition, there is also a charge for 24‑hour emergency response services provided by KNOT Management for all vessels managed by KNOT Management. (3) Administration fee from KNOT Management, Knutsen OAS Shipping AS (“KOAS”) and Knutsen OAS (UK) Ltd. (“KOAS UK”) : Administration costs include the compensation and benefits of KNOT Management’s management and administrative staff as well as other general and administration expenses. Some benefits are also provided by KOAS and KOAS UK. Net administration costs are total administration cost plus a 5% margin, reduced for the total fees for services delivered by the administration staffs and the estimated shareholder costs for KNOT that have not been allocated. As such, the level of net administration costs as a basis for the allocation can vary from year to year based on the administration and financing services offered by KNOT to all the vessels in its fleet each year. KNOT Management also charges each subsidiary a fixed annual fee for the preparation of the statutory financial statement. (4) Administration and management fee from KNOT Management and KNOT Management Denmark : For bareboat charters, the shipowner is not responsible for providing crewing or other operational services and the customer is responsible for all vessel operating expenses and voyage expenses. However, each of the vessels under bareboat charters is subject to a management and administration agreement with either KNOT Management or KNOT Management Denmark, pursuant to which these companies provide general monitoring services for the vessels in exchange for an annual fee. (5) Drydocking supervision fee from KNOT and KOAS : KNOT and KOAS provide supervision and hire out service personnel during drydocking of the vessels. The fee is calculated as a daily fixed fee.
Summary of Amounts Due from (to) Related Parties	At June 30, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due from KOAS $ 578 $ 466 Trading balances due from KNOT and affiliates 926 675 Amount due from related parties $ 1,504 $ 1,141 Trading balances due to KOAS $ 688 $ 629 Trading balances due to KNOT and affiliates 501 441 Amount due to related parties $ 1,189 $ 1,070
Schedule of Trade Accounts Payable to Related Parties	At June 30, At December 31, (U.S. Dollars in thousands) 2019 2018 Balance Sheet: Trading balances due to KOAS $ 552 $ 381 Trading balances due to KNOT and affiliates 382 411 Trade accounts payable to related parties $ 934 $ 792

Earnings per Unit and Cash Di_2

Earnings per Unit and Cash Distributions (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings per Unit and Cash Distributions
Schedule of calculations of basic and diluted earnings per unit	Three Months Ended Six Months Ended June 30, June 30, (U.S. Dollars in thousands, except per unit data) 2019 2018 2019 2018 Net income $ 8,176 $ 21,681 $ 21,045 $ 52,405 Less: Series A Preferred unitholders’ interest in net income 1,800 1,800 3,600 3,600 Net income attributable to the unitholders of KNOT Offshore Partners LP 6,376 19,881 17,445 48,805 Less: Distributions (2) 18,034 18,034 36,068 36,068 Under (over) distributed earnings (11,658) 1,847 (18,623) 12,737 Under (over) distributed earnings attributable to: Common unitholders (3) (11,442) 1,813 (18,279) 12,502 General Partner (215) 34 (344) 235 Weighted average units outstanding (basic) (in thousands): Common unitholders 32,694 32,694 32,694 32,694 General Partner 615 615 615 615 Weighted average units outstanding (diluted) (in thousands): Common unitholders (4) 32,694 36,355 32,694 36,360 General Partner 615 615 615 615 Earnings per unit (basic) Common unitholders $ 0.191 $ 0.597 $ 0.524 $ 1.465 General Partner 0.191 0.597 0.524 1.465 Earnings per unit (diluted): Common unitholders (4) $ 0.191 $ 0.585 $ 0.524 $ 1.415 General Partner 0.191 0.597 0.524 1.465 Cash distributions declared and paid in the period per unit (5) 0.520 0.520 1.040 1.040 Subsequent event: Cash distributions declared and paid per unit relating to the period (6) 0.520 0.520 1.040 1.040 (1) Earnings per unit have been calculated in accordance with the cash distribution provisions set forth in the Partnership Agreement. (2) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the record date. This includes cash distributions to the IDR holder (KNOT) for the three months ended June 30, 2019 and 2018 of $0.7 million and for the six months ended June 30, 2019 and 2018 of $1.4 million. (3) This includes the net income attributable to the IDR holder. The net income attributable to IDRs for the three months ended June 30, 2019 and 2018 was $0.7 million and for the six months ended June 30, 2019 and 2018 was $1.4. (4) Diluted weighted average units outstanding and earnings per unit diluted for the three and six months ended June 30, 2019 does not reflect any potential common shares relating to the convertible preferred units since the assumed issuance of any additional shares would be anti-dilutive. (5) Refers to cash distributions declared and paid during the period. (6) Refers to cash distributions declared and paid subsequent to the period end.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2019
Acquisitions
Schedule of purchase price for the transaction	Final Anna Knutsen March 1, (U.S. Dollars in thousands) 2018 Purchase consideration (1) $ 19,913 Less: Fair value of net assets acquired: Vessels and equipment (2) 120,274 Cash 4,537 Inventories 257 Derivative assets 1,839 Others current assets 111 Amounts due from related parties 520 Long-term debt (84,217) Long-term debt from related parties (22,535) Deferred debt issuance 1,228 Trade accounts payable (971) Accrued expenses (1,013) Amounts due to related parties (117) Subtotal 19,913 Difference between the purchase price and fair value of net assets acquired $ — (1) The purchase price is comprised of the following: Final AnnaKnutsen March 1, (U.S. Dollars in thousands) 2018 Cash consideration paid to KNOT (from KNOT) $ 14,637 Purchase price adjustments 5,276 Purchase price $ 19,913 (2) Vessel and equipment includes allocation to drydocking of $2,329.

Description of Business (Detail

Description of Business (Details) $ in Millions	1 Months Ended
	Apr. 30, 2013item	Aug. 28, 2019USD ($)	Jun. 30, 2019itemdirector	Jun. 30, 2018item
Description of Business
Ownership interest in shuttle tankers acquired at formation (as a percent)	100.00%
Number of shuttle tankers acquired at formation | item	4
Number of operating vessels | item			16	16
Undrawn portion of revolving credit facilities | $		$ 28.7
Number of members on board of directors electable by common unitholders | director			4
Total number of board members | director			7

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Adoption of new accounting standards (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Summary of Significant Accounting Policies
Right of use asset	$ 2,075	$ 2,300
Lease liability	$ 2,074	$ 2,300

Segment Information (Details)

Segment Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019segmentitem	Jun. 30, 2018item	Jun. 30, 2019item	Jun. 30, 2018item
Segment Information
Number of reportable segments | segment	1
Number of vessels	16	16	16	16
Number of time charters	12	12	12	12
Number of bareboat charters	4	4	4	4
Minimum | Revenues | Customer Concentration Risk
Segment Information
Benchmark percentage of revenues and combined revenues concentration	10.00%	10.00%	10.00%	10.00%

Segment Information - Schedule

Segment Information - Schedule of consolidated revenues and percentages of revenues for customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Information
Revenues	$ 70,922	$ 69,765	$ 141,471	$ 137,808
Eni Trading and Shipping S.p.A.
Segment Information
Revenues	11,134	11,555	22,146	22,936
Fronape International Company, a subsidiary of Petrobras Transporte S.A
Segment Information
Revenues	11,249	11,248	22,378	22,378
Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V.
Segment Information
Revenues	9,282	9,283	18,463	18,222
Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell
Segment Information
Revenues	20,606	20,399	40,889	40,572
Galp Sinopec Brasil Services B.V
Segment Information
Revenues	$ 8,881	$ 6,438	$ 17,584	$ 12,071
Customer Concentration Risk | Revenues | Eni Trading and Shipping S.p.A.
Segment Information
Percentage of partnership's consolidated revenues	16.00%	17.00%	16.00%	17.00%
Customer Concentration Risk | Revenues | Fronape International Company, a subsidiary of Petrobras Transporte S.A
Segment Information
Percentage of partnership's consolidated revenues	16.00%	16.00%	16.00%	16.00%
Customer Concentration Risk | Revenues | Repsol Sinopec Brasil, S.A., a subsidiary of Repsol Sinopec Brasil, B.V.
Segment Information
Percentage of partnership's consolidated revenues	13.00%	13.00%	13.00%	13.00%
Customer Concentration Risk | Revenues | Brazil Shipping I Limited, a subsidiary of Royal Dutch Shell
Segment Information
Percentage of partnership's consolidated revenues	29.00%	29.00%	29.00%	30.00%
Customer Concentration Risk | Revenues | Galp Sinopec Brasil Services B.V
Segment Information
Percentage of partnership's consolidated revenues	13.00%	9.00%	12.00%	9.00%

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating Leases
Lease revenue from lease payment of operating leases	$ 70,908	$ 69,221	$ 141,456	$ 136,608
Non-lease revenues (loss of hire insurance recoveries and other income)	14	544	15	1,200
Total Revenues	$ 70,922	$ 69,765	$ 141,471	$ 137,808

Operating Leases - Minimum cont

Operating Leases - Minimum contractual future revenues (Details) $ in Thousands	Jun. 30, 2019USD ($)
Operating Leases
2019 (excluding the six months ended June 30,2019)	$ 136,536
2020	240,710
2021	219,841
2022	152,078
2023	63,918
2024 and thereafter	28,674
Total	$ 841,757

Operating Leases - Additional I

Operating Leases - Additional Information (Details)	1 Months Ended	6 Months Ended
	Mar. 31, 2019	Jun. 30, 2019	Oct. 31, 2015
Fortaleza Knutsen
Operating Leases
Current bareboat charter expiration year		2023
Recife Knutsen
Operating Leases
Current bareboat charter expiration year		2023
Bodil Knutsen
Operating Leases
Current time charter expiration year		2020
Time charter expiration year under options to extend		2024
Windsor Knutsen
Operating Leases
Time charter expiration year under options to extend		2023
Term of time charter			2 years
Windsor Knutsen | Minimum
Operating Leases
Period of suspension of time charter	10 months
Windsor Knutsen | Maximum
Operating Leases
Period of suspension of time charter	12 months
Carmen Knutsen
Operating Leases
Current time charter expiration year		2023
Time charter expiration year under options to extend		2026
Hilda Knutsen
Operating Leases
Current time charter expiration year		2022
Time charter expiration year under options to extend		2025
Torill Knutsen
Operating Leases
Current time charter expiration year		2023
Dan Cisne
Operating Leases
Current bareboat charter expiration year		2023
Dan Sabia
Operating Leases
Current bareboat charter expiration year		2024
Ingrid Knutsen
Operating Leases
Current time charter expiration year		2024
Time charter expiration year under options to extend		2029
Raquel Knutsen
Operating Leases
Current time charter expiration year		2025
Time charter expiration year under options to extend		2030
Tordis Knutsen
Operating Leases
Current time charter expiration year		2022
Time charter expiration year under options to extend		2032
Vigdis Knutsen
Operating Leases
Current time charter expiration year		2022
Time charter expiration year under options to extend		2032
Lena Knutsen
Operating Leases
Current time charter expiration year		2022
Time charter expiration year under options to extend		2032
Brasil Knutsen
Operating Leases
Current time charter expiration year		2022
Time charter expiration year under options to extend		2028
Anna Knutsen
Operating Leases
Current time charter expiration year		2022
Time charter expiration year under options to extend		2028

Operating Leases - Other Inform

Operating Leases - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jan. 01, 2019
Operating Leases
Right-of-use assets (Note 4)	$ 2,075	$ 2,075	$ 2,300
Lease liability	2,074	2,074	$ 2,300
Operating lease payments	$ 200	$ 300
Weighted average discount rate (as a percent)	4.80%	4.80%
Weighted average remaining lease term	3 years 6 months	3 years 6 months

Operating Leases - Maturity ana

Operating Leases - Maturity analysis of the lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Operating Leases
2019 (excluding the six months ended June 30, 2019)	$ 322
2020	644
2021	644
2022	644
Total	2,254
Less imputed interest	180
Carrying value of operating lease liabilities	$ 2,074	$ 2,300

Insurance Proceeds (Details)

Insurance Proceeds (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Insurance Proceeds
Deductible period under business interruption insurance				14 days
Period of coverage under business interruption insurance				180 days
Loss of hire insurance payments recorded as a component of total revenues		$ 450			$ 450
Net vessel operating expense	$ 15,301	13,974		$ 29,757	27,221
Carmen Knutsen
Insurance Proceeds
Special survey drydocking period			5 years
Deductible period under business interruption insurance			14 days
Carmen Knutsen | Technical Default in Controllable Pitch Propeller
Insurance Proceeds
Loss of hire insurance payments recorded as a component of total revenues	$ 450	$ 450		450	450
Recoveries for repairs				2,250	2,250
Cost of repairs				150	150	$ 2,400
Net vessel operating expense				$ 300	$ 300

Other Finance Expenses - Compon

Other Finance Expenses - Components Interest Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Finance Expenses
Interest expense	$ 12,529	$ 11,830	$ 25,530	$ 21,848
Amortization of debt issuance cost and fair value of debt assumed	657	696	1,314	1,271
Total interest cost	$ 13,186	$ 12,526	$ 26,844	$ 23,119

Other Finance Expenses - Comp_2

Other Finance Expenses - Components of Other Finance Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Finance Expenses
Bank fees, charges	$ 224	$ 151	$ 281	$ 241
Guarantee costs		140		282
Commitment fees	62	(3)	123	103
Total other finance expense	$ 286	$ 288	$ 404	$ 626

Derivative Instruments - Additi

Derivative Instruments - Additional Information (Details) kr in Millions, $ in Millions	Jun. 30, 2019USD ($)	Jun. 30, 2019NOK (kr)	Dec. 31, 2018USD ($)	Dec. 31, 2018NOK (kr)
Interest Rate Swap Contracts
Derivative Instruments
Notional amount	$ 571.5		$ 555.5
Carrying amount of derivative asset	$ 2.7		15.9
Weighted average interest rate	1.88%	1.88%
Foreign Exchange Forward Contracts
Derivative Instruments
Notional amount | kr		kr 169		kr 244.2
Carrying amount of derivative liabilities	$ 0.2
Carrying amount of derivative asset			$ 1.7

Derivative Instruments - Realiz

Derivative Instruments - Realized and Unrealized Gains and Losses Recognized in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net gain (loss) on derivative instruments
Realized gain (loss)	$ 510	$ 191	$ 800	$ 992
Unrealized gain (loss)	(10,828)	1,777	(17,047)	10,952
Total realized and unrealized gain (loss) on derivative instruments	(10,318)	1,968	(16,247)	11,944
Interest Rate Swap Contracts
Net gain (loss) on derivative instruments
Realized gain (loss)	1,168	57	2,246	(247)
Unrealized gain (loss)	(11,521)	2,995	(18,619)	11,942
Foreign Exchange Forward Contracts
Net gain (loss) on derivative instruments
Realized gain (loss)	(658)	134	(1,446)	1,239
Unrealized gain (loss)	$ 693	$ (1,218)	$ 1,572	$ (990)

Fair Value Measurements - Carry

Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Partnership 's Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financial assets:
Current derivative assets	$ 1,981	$ 4,621
Non-current derivative assets	914	11,667
Financial liabilities:
Current derivative liabilities	426	1,740
Non-current derivative liabilities	5,314	345
Carrying Amount
Financial assets:
Cash and cash equivalents	42,429	41,712
Financial liabilities:
Long-term debt, current and non-current	1,045,686	1,087,347
Carrying Amount | Interest Rate Swap Contracts
Financial assets:
Current derivative assets	1,856	4,621
Non-current derivative assets	914	11,667
Financial liabilities:
Current derivative liabilities	132
Non-current derivative liabilities	5,314	345
Carrying Amount | Foreign Exchange Forward Contracts
Financial assets:
Current derivative assets	125
Financial liabilities:
Current derivative liabilities	294	1,740
Fair Value
Financial assets:
Cash and cash equivalents	42,429	41,712
Financial liabilities:
Long-term debt, current and non-current	1,045,686	1,087,347
Fair Value | Interest Rate Swap Contracts
Financial assets:
Current derivative assets	1,856	4,621
Non-current derivative assets	914	11,667
Financial liabilities:
Current derivative liabilities	132
Non-current derivative liabilities	5,314	345
Fair Value | Foreign Exchange Forward Contracts
Financial assets:
Current derivative assets	125
Financial liabilities:
Current derivative liabilities	$ 294	$ 1,740

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair Value, assets and liabilities measured on recurring and nonrecurring basis
Deferred debt issuance cost	$ 8,700,000	$ 10,100,000
Restricted cash	$ 0	$ 0
Interest Rate Swap Contracts
Fair Value, assets and liabilities measured on recurring and nonrecurring basis
Weighted average remaining terms	4 years 4 months 24 days	4 years 10 months 24 days
Interest Rate Swap Contracts | Minimum
Fair Value, assets and liabilities measured on recurring and nonrecurring basis
Notional amount per contract	$ 9,300,000	$ 10,000,000
Fixed interest rate	1.38%	1.38%
Interest Rate Swap Contracts | Maximum
Fair Value, assets and liabilities measured on recurring and nonrecurring basis
Notional amount per contract	$ 50,000,000	$ 50,000,000
Fixed interest rate	2.90%	2.90%

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financial assets:
Current derivative assets	$ 1,981	$ 4,621
Non-current derivative assets	914	11,667
Financial liabilities:
Current derivative liabilities	426	1,740
Non-current derivative liabilities	5,314	345
Carrying Amount
Financial assets:
Cash and cash equivalents	42,429	41,712
Financial liabilities:
Long-term debt, current and non-current	1,045,686	1,087,347
Fair Value
Financial assets:
Cash and cash equivalents	42,429	41,712
Financial liabilities:
Long-term debt, current and non-current	1,045,686	1,087,347
Foreign Exchange Forward Contracts | Carrying Amount
Financial assets:
Current derivative assets	125
Financial liabilities:
Current derivative liabilities	294	1,740
Foreign Exchange Forward Contracts | Fair Value
Financial assets:
Current derivative assets	125
Financial liabilities:
Current derivative liabilities	294	1,740
Interest Rate Swap Contracts | Carrying Amount
Financial assets:
Current derivative assets	1,856	4,621
Non-current derivative assets	914	11,667
Financial liabilities:
Current derivative liabilities	132
Non-current derivative liabilities	5,314	345
Interest Rate Swap Contracts | Fair Value
Financial assets:
Current derivative assets	1,856	4,621
Non-current derivative assets	914	11,667
Financial liabilities:
Current derivative liabilities	132
Non-current derivative liabilities	5,314	345
Quoted Price in Active Markets for Identical Assets (Level 1) | Fair Value
Financial assets:
Cash and cash equivalents	42,429	41,712
Significant Other Observable Inputs (Level 2) | Fair Value
Financial liabilities:
Long-term debt, current and non-current	1,045,686	1,087,347
Significant Other Observable Inputs (Level 2) | Foreign Exchange Forward Contracts | Fair Value
Financial assets:
Current derivative assets	125
Financial liabilities:
Current derivative liabilities	294	1,740
Significant Other Observable Inputs (Level 2) | Interest Rate Swap Contracts | Fair Value
Financial assets:
Current derivative assets	1,856	4,621
Non-current derivative assets	914	11,667
Financial liabilities:
Current derivative liabilities	132
Non-current derivative liabilities	$ 5,314	$ 345

Fair Value Measurements - Fai_2

Fair Value Measurements - Fair Value transfers into or out of Level 1, Level 2 or Level 3 (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair Value Measurements
Transfers amount Fair value assets level 1 to level 2	$ 0	$ 0
Transfers amount Fair value assets level 2 to level 1	0	0
Transfers amount Fair value liabilities level 1 to level 2	0	0
Transfers amount Fair value liabilities level 2 to level 1	0	0
Transfers amount Fair value assets level 3 to level 1	0	0
Transfers amount Fair value assets level 3 to level 2	0	0
Transfers amount Fair value liabilities level 3 to level 1	0	0
Transfers amount Fair value liabilities level 3 to level 2	$ 0	$ 0

Income Taxes - Additional infor

Income Taxes - Additional information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Mar. 31, 2013
Income Taxes
Ordinary income tax rate			22.00%	23.00%
Entrance tax					$ 20	$ 3,000,000
Entrance tax paid, current	$ 100,000	$ 200,000
Entrance tax payable, non current			$ 500,000

Income Taxes - Significant Comp

Income Taxes - Significant Components of Current and Deferred Income Tax Expense Attributable to Income from Continuing Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Taxes
Income before income taxes	$ 8,179,000	$ 21,684,000	$ 21,051,000	$ 52,411,000
Income tax (expense)	$ 3,000	$ 3,000	$ 6,000	$ 6,000
Effective tax rate	0.00%	0.00%	0.00%	0.00%
Deferred tax assets recognized	$ 0		$ 0		$ 0

Vessels and Equipment - Pledged

Vessels and Equipment - Pledged Assets (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Vessels and Equipment
Book value of assets pledged as security for long-term debt	$ 1,722	$ 1,767

Vessels and Equipment - Schedul

Vessels and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Vessels & equipment - Activity
Vessels and equipment, beginning balance			$ 2,130,423	$ 2,003,341	$ 2,003,341
Additions					118,063
Drydock costs			(69)		14,750
Disposals					(5,731)
Vessels and equipment, ending balance	$ 2,130,354		2,130,354		2,130,423
Accumulated depreciation - Activity
Accumulated depreciation, beginning balance			(363,343)	(280,318)	(280,318)
Accumulated depreciation, disposals					5,731
Depreciation for the period	(22,429)	$ (22,332)	(44,860)	(43,906)	(88,756)
Accumulated depreciation, ending balance	(408,203)		(408,203)		(363,343)
Net Vessels - Activity
Net vessel, beginning balance			1,767,080	1,723,023	1,723,023
Additions					118,063
Drydock costs			(69)		14,750
Depreciation for the period	(22,429)	$ (22,332)	(44,860)	$ (43,906)	(88,756)
Net vessel, ending balance	$ 1,722,151		$ 1,722,151		$ 1,767,080

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Intangible Assets
Intangibles assets, beginning balance	$ 1,891	$ 2,497
Amortization for the period	(302)	(606)
Intangibles assets, ending balance	1,589	1,891
Above Market Value Of Time Charter | Tordis Knutsen
Intangible Assets
Intangibles assets, beginning balance	911	1,215
Amortization for the period	(151)	(304)
Intangibles assets, ending balance	760	911
Above Market Value Of Time Charter | Vigdis Knutsen
Intangible Assets
Intangibles assets, beginning balance	980	1,282
Amortization for the period	(151)	(302)
Intangibles assets, ending balance	$ 829	$ 980

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - Above Market Value Of Time Charter	6 Months Ended
	Jun. 30, 2019
Tordis Knutsen
Intangible Assets
Remaining term of the contract	4 years 9 months 18 days
Vigdis Knutsen
Intangible Assets
Remaining term of the contract	4 years 10 months 24 days

Long-Term Debt - Components (De

Long-Term Debt - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Long-Term Debt
Long-term debt	$ 1,045,686	$ 1,087,347
Less: current installments	85,845	109,534
Less: unamortized deferred loan issuance costs	2,560	2,608
Current portion of long-term debt	83,285	106,926
Amounts due after one year	959,841	977,813
Less: unamortized deferred loan issuance costs	6,161	7,448
Long-term debt, less current installments, and unamortized deferred loan issuance costs	953,680	970,365
$320 million loan facility
Long-Term Debt
Long-term debt	297,416	312,472
Debt instrument face amount	320,000	320,000
$55 million revolving credit facility
Long-Term Debt
Long-term debt	26,279	26,279
Debt instrument face amount	55,000	55,000
Hilda Loan Facility
Long-Term Debt
Long-term debt	87,692	90,769
Torill Loan Facility
Long-Term Debt
Long-term debt	91,667	95,000
$172.5 million loan facility
Long-Term Debt
Long-term debt	76,839	81,839
Debt instrument face amount	172,500	172,500
Raquel Loan Facility
Long-Term Debt
Long-term debt	60,569	63,184
Tordis Loan Facility
Long-Term Debt
Long-term debt	83,461	85,991
Vigdis Loan Facility
Long-Term Debt
Long-term debt	84,726	87,256
Lena Loan Facility
Long-Term Debt
Long-term debt	83,300	85,750
Brasil Loan Facility
Long-Term Debt
Long-term debt	60,423	63,454
Anna loan facility
Long-Term Debt
Long-term debt	68,314	70,353
$25 million revolving credit facility
Long-Term Debt
Long-term debt	25,000	25,000
Debt instrument face amount	$ 25,000	$ 25,000

Long-Term Debt - Summary of Par

Long-Term Debt - Summary of Partnership's Outstanding Debt Repayable (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument, Redemption [Line Items]
Total long-term debt	$ 1,045,686	$ 1,087,347
Periodic repayment
Debt Instrument, Redemption [Line Items]
Reminder of 2019	42,873
2020	85,945
2021	86,545
2022	71,210
2023	55,535
2024 and thereafter	15,180
Total long-term debt	357,288
Balloon Repayment
Debt Instrument, Redemption [Line Items]
2021	95,811
2022	236,509
2023	202,185
2024 and thereafter	153,893
Total long-term debt	$ 688,398

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - Partnership's Loan Agreements - London Interbank Offered Rate (LIBOR)	6 Months Ended
	Jun. 30, 2019
Minimum
Long-Term Debt
Long-term debt, fixed margin percentage	1.80%
Maximum
Long-Term Debt
Long-term debt, fixed margin percentage	2.40%

Long-Term Debt - $25 Million Re

Long-Term Debt - $25 Million Revolving Credit Facility (Details) - $25 million revolving credit facility $ in Millions	Jun. 28, 2019USD ($)
Long-Term Debt
Credit facility amount	$ 25
Interest margin percentage	1.80%
Commitment fee percentage	0.50%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - KNOT $ in Millions	1 Months Ended
	Apr. 30, 2013USD ($)
Related Party Transaction
Period of indemnification for certain environmental and toxic tort liabilities	3 years
Deductible for claims related to indemnified environmental and toxic tort liabilities	$ 0.5
Aggregate cap on indemnification for certain environmental and toxic tort liabilities	$ 5
Bodil Knutsen
Related Party Transaction
Period of related party guarantee of payment of hire rate	5 years
Windsor Knutsen
Related Party Transaction
Period of related party guarantee of payment of hire rate	5 years

Related Party Transactions - Re

Related Party Transactions - Related Party Costs and Expenses (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related Party Transaction
Total income (expenses)		$ 2,296	$ 2,083	$ 4,617	$ 3,512
KNOT Management
Related Party Transaction
Administration fee		314	449	648	812
KOAS
Related Party Transaction
Administration fee		174	148	$ 345	290
Margin rate on administration cost				5.00%
KOAS UK
Related Party Transaction
Administration fee		30	30	$ 60	60
Margin rate on administration cost				5.00%
KNOT
Related Party Transaction
Other income			94		749
Operating expenses		1,736	1,509	$ 3,479	3,019
Administration fee		$ 42	$ 41	$ 85	$ 80
KNOT | Bodil Knutsen
Related Party Transaction
Period of related party guarantee of payment of hire rate	5 years
KNOT | Windsor Knutsen
Related Party Transaction
Period of related party guarantee of payment of hire rate	5 years

Related Party Transactions - Sc

Related Party Transactions - Schedule of Dues Payables to Related Party (Detail) $ in Thousands	Dec. 31, 2018USD ($)
Related Party Transaction
Drydocking supervision fee	$ 211
KNOT
Related Party Transaction
Drydocking supervision fee	187
KOAS
Related Party Transaction
Drydocking supervision fee	$ 24

Related Party Transactions - Am

Related Party Transactions - Amounts Due from (to) Related Parties (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Related Party Transaction
Amount due from related parties	$ 1,504	$ 1,141
Amount due to related parties	1,189	1,070
KOAS
Related Party Transaction
Amount due from related parties	578	466
Amount due to related parties	688	629
KNOT and affiliates
Related Party Transaction
Amount due from related parties	926	675
Amount due to related parties	$ 501	$ 441

Related Party Transactions - Tr

Related Party Transactions - Trade Accounts Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Related Party Transaction
Trade accounts payable to related parties	$ 934	$ 792
KOAS
Related Party Transaction
Trade accounts payable to related parties	552	381
KNOT and affiliates
Related Party Transaction
Trade accounts payable to related parties	$ 382	$ 411

Related Party Transactions - Ac

Related Party Transactions - Acquisitions from KNOT (Details)	Mar. 01, 2018
Acquisitions from KNOT | Anna Knutsen
Related Party Transaction
Percentage of interest acquired	100.00%

Commitments and Contingencies -

Commitments and Contingencies - Assets Pledged, Claims and Legal Proceedings (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Commitments and Contingencies
Book value of assets pledged as security for long-term debt and interest rate swap obligations	$ 1,722	$ 1,767

Commitments and Contingencies_2

Commitments and Contingencies - Insurance (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Insurance Proceeds
Insurance coverage deductible amount per vessel	$ 150			$ 150
Deductible period under business interruption insurance				14 days
Period of coverage under business interruption insurance				180 days
Limit of protection and indemnity insurance for pollution, per vessel per incident	1,000,000			$ 1,000,000
Loss of hire insurance payments recorded as a component of total revenues		$ 450			$ 450
Net vessel operating expense	15,301	13,974		29,757	27,221
Carmen Knutsen
Insurance Proceeds
Special survey drydocking period			5 years
Deductible period under business interruption insurance			14 days
Carmen Knutsen | Technical Default in Controllable Pitch Propeller
Insurance Proceeds
Loss of hire insurance payments recorded as a component of total revenues	$ 450	$ 450		450	450
Recoveries for repairs				2,250	2,250
Cost of repairs				150	150	$ 2,400
Net vessel operating expense				$ 300	$ 300

Earnings per Unit and Cash Di_3

Earnings per Unit and Cash Distributions - Calculations of Basic and Diluted Earnings per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings per Unit and Cash Distributions
Net income	$ 8,176	$ 21,681	$ 21,045	$ 52,405
Less: Series A Preferred unitholders' interest in net income	1,800	1,800	3,600	3,600
Net income attributable to the unitholders of KNOT Offshore Partners LP	6,376	19,881	17,445	48,805
Less: Distributions	18,034	18,034	36,068	36,068
Under (over) distributed earnings	$ (11,658)	$ 1,847	$ (18,623)	$ 12,737
Weighted average units outstanding (basic):
General Partner	615	615	615	615
Weighted average units outstanding (diluted):
General Partner	615	615	615	615
Earnings per unit (basic):
General Partner	$ 0.191	$ 0.597	$ 0.524	$ 1.465
Earnings per unit (diluted):
General Partner	0.191	0.597	0.524	1.465
Cash distributions declared and paid in the period per unit	0.520	0.520	1.040	1.040
Subsequent event: Cash distributions declared and paid per unit relating to the period	$ 0.520	$ 0.520	$ 1.040	$ 1.040
Common Units
Earnings per Unit and Cash Distributions
Net income attributable to the unitholders of KNOT Offshore Partners LP	$ 6,258	$ 19,514	$ 17,123	$ 47,904
Weighted average units outstanding (basic):
Weighted average units outstanding, basic	32,694	32,694	32,694	32,694
Weighted average units outstanding (diluted):
Weighted average units outstanding, diluted	32,694	36,355	32,694	36,360
Earnings per unit (basic):
Earnings per unit (basic)	$ 0.191	$ 0.597	$ 0.524	$ 1.465
Earnings per unit (diluted):
Earnings per unit (diluted)	$ 0.191	$ 0.585	$ 0.524	$ 1.415
Limited Partner | Common Units
Earnings per Unit and Cash Distributions
Under (over) distributed earnings	$ (11,442)	$ 1,813	$ (18,279)	$ 12,502
General Partner Unit
Earnings per Unit and Cash Distributions
Net income attributable to the unitholders of KNOT Offshore Partners LP	118	367	322	901
Under (over) distributed earnings	(215)	34	(344)	235
IDR Holders
Earnings per Unit and Cash Distributions
Net income	700	700	1,400	1,400
Less: Distributions	$ 700	$ 700	$ 1,400	$ 1,400

Earnings per Unit and Cash Di_4

Earnings per Unit and Cash Distributions - Additional Information (Details) - shares	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2019
Series A Preferred Stock
Distribution Made to Limited Partner
Potentially dilutive preferred units					3,750,000
IDR Holders | Maximum
Distribution Made to Limited Partner
Required percentage of operating surplus distribution	48.00%	48.00%	48.00%	48.00%
Common Units | Public
Distribution Made to Limited Partner
Number of common units and subordinated units outstanding	24,036,226				24,036,226
Common Units | KNOT
Distribution Made to Limited Partner
Number of common units and subordinated units outstanding	8,567,500				8,567,500
Public | Partnership
Distribution Made to Limited Partner
Percentage of limited partner interest					73.50%
KNOT | Partnership
Distribution Made to Limited Partner
Percentage of limited partner interest					26.20%
KNOT | KNOT
Distribution Made to Limited Partner
Number of general partner units outstanding	615,117				615,117
KNOT | Common Units | KNOT
Distribution Made to Limited Partner
Number of common units and subordinated units outstanding	90,368				90,368
KNOT | Partnership
Distribution Made to Limited Partner
Percentage of limited partner interest					0.30%
Percentage of general partner interest					1.85%

Acquisitions - Anna Knutsen (De

Acquisitions - Anna Knutsen (Details) - Anna Knutsen $ in Thousands	Mar. 01, 2018USD ($)
Vessels and Equipment
Purchase consideration	$ 19,913
Purchase consideration
Cash consideration paid to KNOT	14,637
Purchase price adjustments	5,276
Purchase price	19,913
Additional information
Purchase price adjustments	$ 5,276
Acquisitions from KNOT
Additional information
Percentage of interest acquired	100.00%
Fair value, nonrecurring measurement for asset acquisition
Vessels and Equipment
Purchase consideration	$ 19,913
Less: Fair value of net assets acquired:
Vessels and equipment	120,274
Cash	4,537
Inventories	257
Derivative assets	1,839
Other current assets	111
Amounts due from related parties	520
Long-term debt	(84,217)
Long-term debt from related parties	(22,535)
Deferred debt issuance costs	1,228
Trade accounts payable	(971)
Accrued expenses	(1,013)
Amounts due to related parties	(117)
Subtotal	19,913
Allocation to drydocking	2,329
Purchase consideration
Purchase price adjustments	5,300
Purchase price	19,913
Additional information
Vessel and equipment in purchase price	120,274
Outstanding indebtedness	106,800
Certain capitalized financing fees	1,400
Purchase price adjustments	$ 5,300

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions	Aug. 14, 2019USD ($)$ / shares
Subsequent Events
Cash distributions paid in the period per unit | $ / shares	$ 0.52
Series A Preferred Unit
Subsequent Events
Cash distributions | $	$ 1.8
Cash distribution paid date	Aug. 14, 2019