Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by for the KNOT Offshore Partners’ First Quarter 2023 Earnings Results Conference Call. My name is Candice, and I will be your moderator for today's call. [Operator Instructions].

I would now like to hand the conference call over to our host, Gary Chapman, CEO and CFO to begin.

Gary Chapman

Thank you and welcome to our first quarter 2023 earnings call. this available and at our release knotoffshorepartners.com. earnings presentation on are website The

guidance of are of and our the today's X, assumptions contingencies, unknown on Slide gives many based are inclusion to view, known are upon control. significant in risks and and current estimates presentation made beyond forward-looking subject good which management's faith that are reflect and involve and inherently that in statements uncertainties

includes and expressed results any does our the presentation the differ as statements from to reconciliation of directly implied Actual And a such for non-U.S. update of presentation. comparable and date certain most consult this GAAP Quarterly release SEC made Partnership those measures Annual also have please to or undertake a may statements or of includes filings. Today's not the further forward-looking these GAAP materially information, measures. duty forward-looking earnings and our

and XXXX of our XXXX the respect XXXX X which distribution our from since the X IPO highlights We X, in paid was consecutive and cash structure. under XXth quarter first subsequent. Slide our to and On quarterly are of XXXX, in quarter May first announced

the operations, the into first with Our fleet utilization Knutsen. for account scheduled operated in utilization and the XXX% Carmen scheduled quarter of taking XX.X% drydocking

customary XXXX, subject the other documentation credit We're in June debt We which vessels. and credit execution close similar only closing million this $XX million the conditions. in and to of facility terms of approval credit revolving September on which senior to secured for the XXXX, finances and secured $XXX anticipating Partnership's facility, six mature

Cisne loan the the in $XXX.X maturing January XXXX Dan on be respectively, It's worth will Dan Sabia, XXXX maturity. September repaid facilities fully secured that senior and million secured by and noting

a has visibility time incur vessels future for the on this by employment. Partnership have immediate we no borrowings need stage, no better additional as two until plans at refinance such to plan and is secured there So these their

we're mature prior million both the lenders earnings with conversations would and XXXX, two maturity. facilities credit refinanced facilities that August to discussing to that in further and we expect news on be provide our terms these on XXXX will November $XX release. acceptable Finally, on believe far, based our similar concerning We XXXX so second unsecured in revolving and quarter

to Knutsen XXXX, we And closed vessels signed developments, with new these in respectively. contracts of August year Recife Meaning contracted Knutsen charter contract have time Fortaleza and terms and and and charter Transpetro. three March for both now the now are the

Slide for now XXXX, that Then almost that we vessel the plan yourself, developments listed of following, read can can and I these us in achieved the all covered year, has recent developments say of combination look charter this. well is that vessels, charter on for coverage entirely the what for we have all shortly. you we'll beyond see sure when do to X, through diagram but at I this I'm charter don't left several and

taking a drydock slide, of fourth across end the Knutsen total the ten-year XXXX. and February of XXXX And successfully of completed finally days this on XX Carmen into her the spread quarter

an with on life years, of of signed XX, April of average fleet the X.X new each and had On $XXX estimated Recife the including for at but forward Knutsen, had XX the vessel useful quarter, end Partnership options, liquidity remaining having an million age charterer's the Slide available in excluding first $XX.X X, the XXXX, years. revenue our million which charter of was contracted

XX securing previously fundamentals and XX the the the on that of trends continuing us We market. have saw tanker Brazil, charter needed vessels refinancing. in for operations shuttle we XXX% assisted great approvals and pressure And tanker positive first where trends utilization the to shuttle operate, we long-term credit the for encouraging at our exert scheduled quarter in are highlighted the in

limited We only Sea, recognize volumes filter may charters quarters Brazil several between that Sea take may new the drive currently market global results. of and and online, rebalance, rates but into expect in will we coming to that longer North do significant both fleet oil five XX four our yet vessels the take of XXXX, orderbook where the offshore vessels production combined it operate, now North Partnership's more still with meaning in to and the

by for the new Partnership stated, implied years. as of supportive we fields, overall over well to vessel oil FPSO pace continue fundamentals set that offshore tanker-serviced believe ordering placed the shuttle Nonetheless, faster the of supply continuing production the leave against will coming

of with X this occurred in-line and in mention summary revenues, will our $XXX,XXX over revenues loss broadly and financial and our X expenses related just X, total in fourth voyage remained consistent. voyage and expenses quarters. further other by voyage the I of usual, claims, and revenues in Combined of were was are prior a with strong side results the quarter few as higher our the points. Operating first that of boosted were to XXXX, both being quarter also expectations issues Slide insurance

protection have base some we As many companies utilization quarter something XXXX keeping however, are that a spread, is before first interest we all quarters, the to wide is mentioned have places, expenses pressures higher under recent this draw had and believe crew with upon, our different. facilities that against supplier credit this in no of like close review. Higher in inflationary of geographically and occurring we all and and revolving we increased are LIBOR

scheduled on this continuing had our repayments. or on operations debt impact not and any our However has

and current the have debt X, end balance this quarter our as at can of the million long-term On elevated the cash that Slide you $XX.X already naturally refinancing and spoken is the relates of of ongoing equivalents to we cash see about. portion

solid was can X, quarter consistent. you EBITDA for Slide again On first overall adjusted see the the

variable of of the shows providing of expense Slide is period our is rate greater into that majority cash affected total as the debt swapped fixed how interest in and flow. XXXX interest our portion therefore for during interest that by debt XXXX, have changes meaning of of portion certainty payments, X, our a through significant debt and rates hedged not end interest we to

via the interest other At and Partnership's to our net March exposure XX, two of around via leaseback or interest fixed was our XX% rate financings. floating effectively interest-bearing XXXX, rate debt In was or sale million, $XXX debt. XX% approximately swaps fixed our total words,

situation more new allow opportunities fixed few monitoring next us benefit. for that look that that You or will effectively than remain years, see to to fixed for XX% could our the we're we always the will anticipate debt of and

Slide signed average, these the Knutsen already years a revenue, new options onto XX, had had on remaining many repeat of charters and XX, release, to Recife X.X forward of also the years are for the including out April extend $XXX contracted our But firm Then options, in on contractual X.X as here. on them but million updates further these we by XXXX, as average. had they charters, won't and charterer's of charters March the I set earnings of XX, charter we excluding seen have XXXX, and

now now on Slide have could of several On that periods XXXX, Slide contract we are almost as for XX, XX. and under you see coverage longer the contract vessels see will for much entirety you

onto XXXX be our a the vessels of are result, focus in efforts fixed yet this our is moved that has As being are to and directed. most where

tanker tanker of We tankers Therefore, shuttle and now elevated, helps the only this become shuttle and competitiveness come it supply fleet. our XXXX. to remaining that new prices the total believe shuttle five all tight with to is the of build into expected helps are market new existing between likely

that move we contract does refers talk utilization, coverage. to future before do this not vessel it be to Just on, slide please reminded charter

Then XX, our owned potential we vessels dropdown on list Slide KNOT. currently by sponsor the

vessel of in KNOP of by to KNOT well acquisition no be Conflicts future as of there of Partnership's the each Board the assurance subject potential Partnership will Directors the and stated, can any approval acquisitions of the as occur. and actually would be As Committee, such that independent the any

are top our contract fleet securing coverage, said, visibility our have forward rebuilding we and As position. additional existing our liquidity priorities of

marginal Brazil. The kept the of XX% tanker shuttle demand remains Brazil have approximately very number deployed in we production, cost this independent we this XX, a information slide be mid-to-long-term our the with of and of in low given new from lot believe quarters, with have FPSOs to of that FPSOs, equates XXXX investors carbon to respect in oil to we of continue very source as previous growth Slide positive value of and through and a new score future to we total a speaks here. presentation outlook low the world's to remain to

to this appendix slide We some have retained detail. that a also more in the further presentation gives

distribution utilization for of we So, a on quarter the scheduled We slide quarter a albeit XX, excellent a for at level. XXX% this quarterly XXth for operations. consecutive reduced in summary had paid

We our of and $XXX credit vessels. of refinancing new for two due concluded later approval year, have we this million time secured three-year for charters two

high safe of maintaining crew standard forward, statistics. our both utilization terms going our absolute In onshore, our care to and onboard and us we continue while operations, on focus and taking of

towards vessels. the based, for are Brazil will charter coverage securing this drydocks lower course, our out three than for refinancings so of out, vessels European we're year, costs close beyond. to working of that mobilization And XXXX set recent which fleet working We're remaining are for and as the based of for all be planning in the

contained and not my slide, same and earnings I issued to our to are press and also upcoming position closing yesterday. X after the April to (ph) give the the point of also within [and April our releases of Board on changes The written is it details within release of XX, which Finally, Directors Partnership. out the details want whilst] own do changes

investor resource. again shuttle market, Then information, a information section. frequently our questions you want more of promote asked Hopefully, on refreshed find where finally, find fleet and the useful XX, including can our Slide we website people this will related course newly a to tanker

for this, listening. answer any happy Thank questions. I'll following be And to you very much

Operator

[Operator Gary. you, Thank Instructions].

of of Riley. from So, our Liam first comes B. the question line Burke

now is line open. go ahead. Your Please

Liam Burke

are Hi, you? you. Gary, Thank how

Gary Chapman

very Liam. Thanks. How are Hello, I'm well. you?

Liam Burke

I'm fine. you. Thank

successfully I and Recife the with am the re-chartered the Fortaleza -- the Cisne Transpetro. Knutsen You sorry and

problems first more anticipate to Do the you you anticipate two re-charter for be up that any re-charter. are Do vessels have on the vessels? the You similar re-charter? as two timeline

Gary Chapman

Yes.

and You're talking I guess. Sabia, Cisne the about

Liam Burke

Yes. Right.

Gary Chapman

I Yes. agreement both timeframe there. us perhaps bit. may some through got to parties we're And September, time. Obviously, obviously towards the Yes. first a for and predict, history work Transpetro of control guess Petrobras’ in difficult that. wire to to not suggest to it a to come I mean, it's vessel so down requires that little the to leave runs contractual they we've

do to do always the we it we is may possibility also But but early a as can, go are right to on as talk that and them, down move it's conversations we possible. to So, to those trying as distinct wire. that this

where finish can't and Fortaleza got history the report, of at I terms at plenty but anything this stage, to we've still on that we really. up have with them, we saw anything In stage, time. We the we perhaps the believe Recife, this don't given of say

Liam Burke

source wire. it Where would to of the $XX push million I in the repay Fair Okay. mean, the Cisne about but and for know down $XXX.X have pay there? did from of talked is then And that's that's ones Sabia. enough. due, that other the yes, where up the come capital cash, million down loan? you the you I debt rest to the plus

Gary Chapman

only Yes, balloons are million. those the on $X

our small flow pretty we that’s forecast. into factored cash those So, and

those question? So, significant like you answers if rather a being that kind your maturing are of balloon. If naturally yes, than

Liam Burke

Thank it you, Yes, Gary. does.

Operator

Thank you.

of Poe of next Fratt line Our Partners. Global from question Alliance comes the

now go line Your is open. ahead. Please,

Poe Fratt

Good morning Gary. afternoon, good or

Gary Chapman

Poe. Hi,

Poe Fratt

if of move roles Hi. the staying I underway. Do us the and of anticipate was -- chosen there's wondering you've you would current understand a CFO CEO that structure? on and remaining help sort we could search to the under dual

Gary Chapman

the not process. being totally I'll loop, fully in be kept in honest. recruitment of I'm in terms the

fully I of discussions, as not aware as all has started do but of move the of natural. I'm know role, I'm restructure the not sort think my with Board loop in things yes, already stand. I I to that said, the that's But a any But process.

being made already. progress So and is there respect that in --

you, So, as I as I tell know, am sorry. actually to much it's and able Poe, probably

Poe Fratt

any impact the miss working When you. it's quarter of you with looking us of there forecast on utilization anticipate at downtime exception the first Can of -- -- and because change charters. just for little trying could you of charters only XX been revenue number, quarter, costs survey. the No, that's will the using XXX% what potential I'll Okay. you we rate the the bareboat color the then at guess also cost a a if I days give a this And the not revenue look talk to costs. of bit should time the level sort for be about second alright. of -- I've the with But direction on previously

Gary Chapman

I think --

Poe Fratt

will change little Transpetro a The bit.

Gary Chapman

Yes.

a you're and charter to higher rate and was whereas a have we receiving costs, as expenses us lower, going result both, So, time no higher but vessel revenue incurring rate, had a bareboat operating operating expenses. which of obviously previously OpEx

be it's dramatically effect to be to change income issue. QX make I not huge a that but But should time isn't it’s time, line from From quarter-by-quarter, positive, operating income isn't level. operating positive. going from marginally QX that at the probably the different bareboat think over difference to yes, So, going charter

Poe Fratt

because impact of the past bareboat shifting Great. asked time in Okay. you charters charters. net Yes, about the to I've the

be be to flow that’s the other fair should level. with cash (ph) previous So, impact to shouldn't should the in recently [memo] close words stay

Gary Chapman

Yes. income our obviously, And cost we get base but the plus independent. customer is I to CapEx linked obviously, from that, OpEx. is that the is mean,

for opportunity do, time and efficiently case, to to moving from I got the our company is what hope to charter. that, we've and we this bareboat vessels But from in there think run us So, two just obviously. profit that's

from income to see going time to because vessels see sudden two you're bareboats whole not big in not jump have you're those gone the operating So charters. a going results, company's across just

Poe Fratt

And then was -- you liquidity, calculating refinancing of looks I'm on the the you're Okay. refinancing to just about close impact on the previous balance the it preliminary the Can loan refinancing. talk that a $XXX your congrats like on million. term

Gary Chapman

Yes.

that, down. notional answer since refinancing that tenure it like-for-like. the is $XXX of margin. the paid this But, it's that the to in obviously replacing, the So, finance is the the It's a profile, the your was simple number, we've million of almost terms original even question and continuation

I've So, in and said similar today, the we terms. said in the presentation release it's on earnings that

think you continuation is in-place. just a can of finance of So, that already it the like

Poe Fratt

to a be of out clear, have so forward. it from will roughly the will on here and loan credit million, just $XX revolver you a term be going $XXX So, then call million

Gary Chapman

the we was years as top can't $XX the goes be largely I into to one was forward. one two off exact back together would it facility this them separated put going facility. No, we've back two Essentially recall it's it going the -- few but together of why treated and reasons out, million now, put historically, a but the my head so

Poe Fratt

would million? you're And Gary, $XX out be just be with plus million that the million to it trying in facility, just the $XXX would be -- one would I'm it how of or $XXX sort figure --

Gary Chapman

the Yes, most put which you is XX-F the at recent, out. we've if look that

debt. $XXX the And sitting the $XX In the two then have will million of down paid breakdown the terms to quarters. was at it's million That the another was million detail, and rollover F-XX. million. Page terms And at in since XXXX, $XX of out $XXX sets we of obviously or done December

So it less than be a could that. little bit

Poe Fratt

Yes. I thinking -- Oh, $XX plus was the sorry. million.

Gary Chapman

Yes. Yes. Yes.

we've that if various all on XX-F, to look the you take of the the F-XX shows got. facilities at So, in a which it's you detail, want

Poe Fratt

loan? tenor new Okay. payments where it’s the are how amortization extended? And then the point then out been term balloon about are and, also you associated that meaning talk you the can at with the And far

Gary Chapman

Yes.

the to -- the with. start stay stay what stay, going profile is another And is at believe arrangement. well, is which five year was going is XX years, to So, it I this to the tenor have to should

will balloon five it be in another So, years. payment still

Poe Fratt

it's going And the just amortization, be forward amortization so for still to another going same the years. five

balloon your out. payment So, just I be rolled know would

Okay.

Gary Chapman

Correct.

Poe Fratt

on change the the Any loan? pricing term of

Gary Chapman

continuation. is in rate the No. good able -- been obviously to in replaced. given actually interest based But total We've [Indiscernible]. We've being from expecting We're the zero rate the margin secure interest LIBOR net that margin, we're LIBOR to SOFR calculation, a -- it's moved impact obviously expecting because and like-for-like the a Yes. is here. interest not turns variable practically that's

Poe Fratt

on understand Okay. lines. credit sort it’s or us you And those the used $XX million too terms as facilities working Can there details talk just or two whether then re-financing? change soon to of actual help you've the the of that about

Gary Chapman

It's a rollover too soon the for but sure, me same. to again what asked for we've is, be of

lenders. work The we've But now wanted to $XXs. big and this credit request get So, etcetera. two that and that get one we to focus on the first, is some out we'll at get to them but got that received that's do looking approved positive, still to so we feedback to these our turn obviously to -- far sorted

Poe Fratt

That's your Great. and good in have. I Gary, Thank all you, luck next adventure.

Gary Chapman

Thank Poe. Thanks, you. Yes. day. Have a good

Operator

Thank you.

the comes question Service. Advisory Altschul from of next of Our Aviation line Jim

line Your open. ahead. Please now is go

Jim Altschul

afternoon. Good

First it's to of my I working exceptionally you few and to to been financing. a else's. really to the a service always your with company, and my everyone been Got questions you've questions all, to the relating appreciation express want pleasure responsive and

a income the next swaps. believe of the we interest of the increase substantial debt interest couple increases expense it quarters? pretty also accounts financing of But I interest -- further big is expense see two-thirds you increase First you was look to see the particularly fixed are for and said you at What likely by means that, if this in in year-on-year. the all, in issues, of statement,

Gary Chapman

Yes. Jim. Hi,

probably interest for two I the is expense by things. think accounted

of vessel. we a purchased all, First

one vessels extra XX vessel, there's So, now.

obviously back If wasn't previously, you there. look that

XX% chunk swaps. to not of one-third hedged, is is interest expense. at a approximately for linked March, accounts So that not plus And

high And to gone variable. LIBOR crazy from quite obviously has it's low recently. So,

on amount $XXX at looking here, is is interest diagram LIBOR as compared to from significant exposed we're paying next actually whether that increase you're a -- for annual that that of got the that today, swapped million increases jury few you and still obviously fair the We've increase think increase, as total course anymore. when goes debt, at to you're going that I quarterly see Fed debt yes, a is fixed, expenses. the proportion that, Where of in the years. to rates and the that that's down, will out on see So

in the of rates topped we're So, off interest go extent yes, slightly element third to to Perhaps terms U.S. drawn in then I don't increasingly overall higher, we've on that interest to and the expense. our better going interest the revolving also be think credit we've obviously that added yes, respect. as that expense. out But is probably obviously, our has well, facilities

that of the our visible allow on key borrowing reduce one and our in that's as going perhaps liquidity less, to us well. that again, So to those is respect reasons focus revolvers use forward, why

So, But a combination on does it's I possibly, out. yes, going Fed the think things. it's forward. depends topped of it U.S. And what

Jim Altschul

Okay.

make loan and Cisne by maturity. reference are next be secured XXX.X the senior maturing the Dan Dan September to secured Next the facilities million going on fully to in question, repaid and that January, so you they're Sabia,

to You million anywhere How maturity balance your have cash it on sheet? a you without don't in refinancing? doing going or near sitting a $XXX them at repay are

Gary Chapman

Yes. Obviously, has that the since an million $XXX took out, down. notional is paid we Well, been it original debt.

is on is -- we today the around so and each, balance $X million million So, that $X which factored

Jim Altschul

oh. Oh,

Gary Chapman

Yes.

$XXX to don't find we million. need So

Jim Altschul

good. Oh,

reference new Okay. something? release, I quarters prior didn't when mean, overlooking in the from the I Am the ships, saw releases. prior in they fleet years, them to I just recognize -- were didn't the And the I those I two to or? news

Gary Chapman

they've always I’m guarantee been they've there, so. I hope been there. always pretty much No. Jim. No,

Jim Altschul

new you and which did Okay. Which the take you it you for that added took when is ship debt? And on on?

Gary Chapman

new it’s ship. – Which Sorry.

Jim Altschul

the a the response and first question, debt. said you new increase interest you of to was but In was to fleet my the added ship the reasons rate, that partly one expense because financed with interest

the at now began for book. looking that I'm Slide expense in is which which interest expense. interest XX, there's incurring ship So you

Gary Chapman

ship. last The

Jim Altschul

of -- Reason the

Gary Chapman

XXXX. purchase was on the the July scenario first We of

Jim Altschul

Oh, And just thing. one okay. more

refinancing covered to previous in a pretty And $XXX the You've of swap place completed facility. the that is swap? or in Was the there replacement its much be also going million by have area? any a will if impact facility so,

Gary Chapman

No. that matched any The not with particular of it's the swaps I of majority it extent and wasn't was. think of all -- to any that facility

anyway. Sorry. in of onto I front swaps roll debt don't list that me. would have the over But the new

it would like-for-like. So, be a literally

is your the so, no And answer impact. to question

Jim Altschul

Okay, much. you great. Thank very

Gary Chapman

Thank problem, you. No Jim.

Operator

Thank you.

next Surveyors. of Our Marine the Associates Silvera R.E. from Robert line of Silvera question comes and

is now Please ahead. open. line Your go

Robert Silvera

Gary. Hi, good afternoon,

Gary Chapman

Hello, Robert.

Robert Silvera

business. anticipate to for more model price take our and interest these depreciated we now of that the stock we're where on paying from your it probably like coming etcetera, I as call, expense business. our to ago, previous low just the clear previous would, from one five and like with the incur that ships to rates, And I in interest $X dollars equipment, was correcting lot we when variables it reasonable in It's we location, first were have about of is a calls mobile question fourth It's trials said you breakdown in On years My to quarter bought it. another $XX, for good these just lately, for climb, killer the XXs oil that you quarter a do the which shares. – maintained many the approximately me all the is tremendous conference having depending or past, company, I the problems do was although take call, a to business seems through is, specialized times a held down the But that $X price them years dropdowns, five analyst million suffer share later, location the how and its properly, move XXXX. job, as be that talking we've are from survive which shares, XXs, simple XXXX problems. pipeline, some we debt buying troubles. you the has

how going an So you I Can not know like would getting on the good. debt basis. too we're looking attack to to accelerated down And you're do that?

Gary Chapman

debt down paying amount a very already, $XX million million, a we're $XX year Well, region every the in year. of of significant

you if see happening. deck, the the look that, you that's in So, that's at can slide

the think is trying business of all us and of revenue, sign where we're good in will us this I that's in and value is charters to that that's that ultimately terms get liquidity what the is will what get new value. what doing the will is, at get rates, the and what our unit holders

coming so, that felt a Board of the for that projects we've been certain our the do in result of long COVID the when we customer's we view. think couldn't postponements until And same out a point. good such as way keep the very you back that I at from for came that to look business, And of distribution over the reasons a around before run paid as time which anymore about that we very point they point

the the particularly good will here, and the we've right and are now. in a we projects period And bit those for of mid market Sea term. we're going market. become difficult several team We're All online was this long strong business again. times management term. the North And run it little through softness back a of now, that and the there's said long good think a expecting market But the sponsors in the we've

we what And good what on. all exactly charters question, about are signing Well, But working we're it's that's and rates. answer back doing? your good to at come

Robert Silvera

to at the faded have this versus the ask charter new worse than that than? equal that I are Can rates you better we employing away? Are ones point or

Gary Chapman

dip back. operating And of think a we've to a tanker come market Brazil but think activity that that XX, given we I able shuttle But we've etcetera. in that the the I think very in it's world, been will years, couple XX market. small seen niche over channels only the rates There is last seeing in are the that we're already. achieve,

fluctuate they areas in shipping. of So like many rates don't do other wildly

We're softness Sea. think market as North this and period that lot North the have also of Sea coming we that Brazil will But rates But in rates tightening accepted our in over taking yes, the normally and So is the that we a just back. wouldn't dipped is longer? perhaps like. said we happen we've seeing

Robert Silvera

we the that drop possible at we the we can, stockholders, forward of least which a ways the at drop the And five get the with in we're and if And should meantime, till our be so downs bankers looked at for working see all, to not vessels eight not years, out have down XXXX. just you possible, time the debt we're any age of downs. figure years, we for that obviously. debt working significantly really over rather viewpoint Well, attack taking schedule had good being don't have the in our last from

the market changed. till XXXX when fleet So and that's at has see our input. downs drop We would really like to renewal you stay from away least

much So more our it over business the five years be last business face has current model, to because will been not it let's successful. beneficial run that the

that's All gotten we've etcetera, it nice that has running in have we've the that the things been a happen value. all from world, things, different the run model successful shareholder the dividends standpoint. a And business. all COVID, Given part the been as of business wiped not out $X.XX the in sheer

So have individuals to encourage leave pounds. advice I feelings decision you'll I not same of rest with etcetera, to board, like kind I the drop hope you're leaving. the although of that in you involved will making will the hope know the

Gary Chapman

since or of has how distribution lost huge listed. just the they on depend obviously when gained a really and out how we that much think somebody I they held long bought -- amount for, paid we've

Robert Silvera

benefits have all But dividend so it's $XX our cost the was wiped. and $X now been

Gary Chapman

We've is do make that not Yes. the that's has I'm everybody not this lost, everybody the to point I'm But long not that not trying has the gained. that think but a think I is I going. -- saying we've… case, been business to transparent issues it doing importantly the we about And is we're we I term they're be think where -- very why business. try and and and about what there

Robert Silvera

the position? in do idea further you now where two How years? drop within personally you feel downs are Standing of this the on next

Gary Chapman

think board But then ask being answer. a needs Committee to we by more for because Complex assess be the question it's to timing to done otherwise before, right, said now. I they obviously we the is the And right. I difficult – think board would But that will Independent it the think it. We it's have if

Robert Silvera

I right now, but is position on asking personal your that I'm know, what your question position?

Gary Chapman

it have drop current we've price done Well, doing through been from prevents from downs leaseback. us think last unit equity and internally two sale The the I financed an perspective.

to we get always to be we're a there the value that and business alternative methods do those. So at dropdown, into say ever looking won't might

anything of are it we I think to position value every what certainly, look or And the and that the aware we're at it any trying will would question But the wrong in firm look on the do So make shouldn't they're the it's business. And I would rule in. it's of and a board at saying. do. think judgments you're board rule should maximize And to besides quarter be to understand wrong be that what out. anything because I

Robert Silvera

you've totally I've sincere very than that been talked business. years sure head the you. shareholders you to We've thank your much Well, they the longer efforts. over Okay. I'm actually were the for been of

So good luck in your future endeavors.

Gary Chapman

yet, see. here but I still be I'm the for Yes. we'll not quarter. second may sure

Robert Silvera

Okay. Well, now. bless Bye-bye you. God

Gary Chapman

you. Thank Okay.

Operator

Alliance Poe question Global There Partners. has from of been Fratt a follow-up

line is Please open. ahead. Your go

Poe Fratt

Gary. Hey,

$XX revolver, the drawn my Just $XX million at on I six the the according -- will it change an quarter? on how to records, going easier loan revolver, first of that was forward? million on $XX we it revolver say rolled the did Did was the term And much be way to that million vessels that in all year-end. to at confirm, balance into is should guess the

Gary Chapman

Yes. No. I our XX. mean, was million disclosed at XXF fully drawn. December in $XX

So rolled. all be will it

Poe Fratt

Okay. Great.

So two into I out ones. ate broken different

help. for Thanks So your

Gary Chapman

Yeah. No problem.

Poe Fratt

Gary. Oh,

-- was amortization million there loan Just on Gary, no to amortization, term if wouldn't confirm was the million. you that $X.X the about the on revolver, $XX but mind, previous

much bigger it? than but guess look be that the will saying of you're $X.X that at go will be essentially amortization a forward So million I loan to way that the direct the is essentially amortization,

Gary Chapman

to that check can I come which need way that you double back you around is. thing. on tell I don't Poe, detail? the I wrong to to want

Poe Fratt

great. Okay, you. Thank

Gary Chapman

Thanks.

Operator

Thank remarks. over Gary I back no hand for this I'll the conference time closing questions. show additional to you. At

Gary Chapman

thank Well, good for everybody Thank and a please else listening you. day. have do you

Operator

concludes this Partners first gentlemen, and Thank Ladies quarter today, results KNOT for you Offshore joining. conference XXXX call.

now lines. your disconnect You may

KNOT Offshore Partners (KNOP) 26 May 232023 Q1 Earnings call transcript