KNOT Offshore Partners LP (KNOP)
NYSE:KNOP
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KNOT Offshore Partners
(NYSE:KNOP)
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Rating:61Neutral
Price Target:
$11.50
▲(13.64% Upside)
Action:Reiterated
Date:05/30/26
The score is driven mainly by improving fundamentals and strong cash generation with very high EBITDA margins, partially offset by elevated leverage and low ROE. Technicals are broadly supportive but neutral near-term, valuation is only middling given a moderate P/E and low yield, and the earnings call was net-positive due to backlog/liquidity strength despite accounting headwinds and refinancing execution risk.
Positive Factors
High EBITDA margins & cash generation
Sustained ~61% EBITDA margins and robust operating/free cash flow indicate durable contract economics from long-term charters. Strong cash conversion supports maintenance, debt repayment and selective growth (drop-downs), reducing reliance on volatile spot markets over the next 2–6 months.
Negative Factors
Elevated leverage
Debt-to-equity near 1.5x is persistent and constrains financial flexibility. Elevated leverage increases refinancing dependency and interest burden, limiting free cash for growth or distributions and making the partnership more sensitive to financing market conditions over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
High EBITDA margins & cash generation
Sustained ~61% EBITDA margins and robust operating/free cash flow indicate durable contract economics from long-term charters. Strong cash conversion supports maintenance, debt repayment and selective growth (drop-downs), reducing reliance on volatile spot markets over the next 2–6 months.
Read all positive factors
KNOT Offshore Partners (KNOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$373.17M
Dividend Yield1%
Average Volume (3M)92.47K
Price to Earnings (P/E)20.0
Beta (1Y)0.05
Revenue Growth14.24%
EPS Growth29.04%
CountryUS
Employees1
SectorEnergy
Sector Strength52
IndustryMarine Shipping
Share Statistics
EPS (TTM)0.53
Shares Outstanding33,660,343
10 Day Avg. Volume83,587
30 Day Avg. Volume92,472
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.57
Price to Sales (P/S)0.96
P/FCF Ratio2.26
Enterprise Value/Market Cap3.24
Enterprise Value/Revenue3.24
Enterprise Value/Gross Profit11.58
Enterprise Value/Ebitda5.30
Forecast
1Y Price Target
$14.50Price Target Upside43.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.48
Revenue Forecast (FY)$366.78M
KNOT Offshore Partners Business Overview & Revenue Model
Company Description
KNOT Offshore Partners LP is engaged in the management and expansion of a fleet of specialized shuttle tankers. These vessels are primarily utilized for the intricate logistics of crude oil, operating under extended contractual agreements predomin...
How the Company Makes Money
KNOP primarily makes money by chartering its shuttle tankers to oil companies and other energy customers under multi-year, fixed-rate time charter contracts. Under these contracts, the customer pays KNOP a contracted daily/periodic hire rate for t...
KNOT Offshore Partners Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operational picture: strong adjusted EBITDA, high utilization excluding dry docks, a sizeable $858M backlog, improved liquidity (+$3.7M QoQ ≈ +2.7%) and successful rechartering/extensions that support multi-year cash flows. Management has resumed and modestly increased distributions and outlined a path for accretive sponsor drop-downs to grow the fleet. Key negatives include a sequential revenue dip tied to scheduled dry docks and contract timing, a significant gap between adjusted EBITDA and GAAP net income, and a prospective useful-life reduction (23 to 20 years, ≈13% shorter) that will raise non-cash depreciation and weigh on reported earnings. Upcoming refinancing milestones represent execution items to monitor. On balance, the operational strengths and backlog outweigh the near-term accounting and timing headwinds.Positive Updates
Revenue and Profitability (Q1 FY26)
Revenues of $92.0 million, operating income of $14.7 million, net income of $2.6 million and adjusted EBITDA of $56.5 million reported for Q1 FY26, demonstrating solid underlying cash generation (adjusted EBITDA materially higher than GAAP net income).
Negative Updates
Sequential Revenue Pressure
Management acknowledged a sequential decline in revenues driven primarily by scheduled dry dock downtime and contract timing/rollovers during the quarter (no prior-quarter revenue figure provided on the call).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Profitability (Q1 FY26)
Revenues of $92.0 million, operating income of $14.7 million, net income of $2.6 million and adjusted EBITDA of $56.5 million reported for Q1 FY26, demonstrating solid underlying cash generation (adjusted EBITDA materially higher than GAAP net income).
Read all positive updates
Company Guidance
Management's guidance and Q1 2026 metrics highlighted revenues of $92.0M, operating income $14.7M, net income $2.6M and adjusted EBITDA $56.5M; available liquidity was $140.7M (cash $92.7M + $48.0M undrawn), $3.7M higher vs. Dec 31; utilization was 97.2% (92% including two scheduled drydockings); fleet = 19 vessels, average age 10.5 years; backlog = $858M of fixed contracts averaging 2.4 years (plus more if options exercised); quarterly distribution of $0.05/unit was declared and paid; average margin on floating‑rate debt was 2.22% over SOFR; the partnership is repaying ~ $90M of debt per year and expects refinancing facilities of $220M in Sept 2026 and $65M in Oct 2026; and management changed vessel useful lives from 23 to 20 years effective Jan 1, 2026 (increasing non‑cash depreciation).KNOT Offshore Partners Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
52
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 372.42M | 364.44M | 312.63M | 290.72M | 268.58M | 281.13M |
| Gross Profit | 104.27M | 110.96M | 200.51M | 80.93M | 72.32M | 109.46M |
| EBITDA | 227.82M | 223.27M | 190.68M | 144.64M | 210.19M | 183.00M |
| Net Income | 18.30M | 23.26M | 14.06M | -34.33M | 58.67M | 53.88M |
Balance Sheet | ||||||
| Total Assets | 1.66B | 1.68B | 1.57B | 1.60B | 1.73B | 1.68B |
| Cash, Cash Equivalents and Short-Term Investments | 92.66M | 88.98M | 66.93M | 63.92M | 47.58M | 62.29M |
| Total Debt | 929.62M | 955.98M | 906.00M | 958.91M | 1.06B | 969.87M |
| Total Liabilities | 1.04B | 1.06B | 961.03M | 989.01M | 1.08B | 1.00B |
| Stockholders Equity | 611.42M | 620.97M | 611.13M | 607.48M | 652.21M | 673.01M |
Cash Flow | ||||||
| Free Cash Flow | 153.20M | 155.46M | 136.20M | 128.86M | 97.63M | 154.88M |
| Operating Cash Flow | 153.67M | 155.74M | 137.15M | 131.64M | 100.94M | 166.41M |
| Investing Cash Flow | -26.06M | -25.29M | -338.00K | -2.78M | -35.51M | -11.54M |
| Financing Cash Flow | -102.44M | -108.63M | -133.32M | -112.51M | -79.97M | -145.15M |
KNOT Offshore Partners Technical Analysis
Positive
10.12
Price Trends
10.72
Positive
10.52
Positive
9.98
Positive
Market Momentum
-0.04
Positive
48.58
Neutral
49.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNOP, the sentiment is Positive. The current price of 10.12 is below the 20-day moving average (MA) of 10.98, below the 50-day MA of 10.72, and above the 200-day MA of 9.98, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 49.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNOP.
KNOT Offshore Partners Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.15B | 6.33 | 10.67% | 0.39% | 5.87% | 8.14% | |
80 Outperform | $2.39B | 4.60 | 13.85% | 3.64% | 2.95% | 15.92% | |
74 Outperform | $2.02B | 9.81 | ― | 6.50% | 32.94% | 128.18% | |
72 Outperform | $3.09B | 21.25 | 5.87% | 1.59% | -11.62% | -37.75% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $1.66B | 48.43 | 3.21% | 12.24% | -16.39% | -44.25% | |
61 Neutral | $373.17M | 20.01 | 2.97% | 1.00% | 14.24% | 29.04% |
* Energy Sector Average
KNOP
KNOT Offshore Partners
10.80
4.27
65.42%
DAC
Danaos
131.30
47.38
56.46%
NMM
Navios Maritime Partners
75.29
35.15
87.58%
SFL
SFL Corporation
11.49
3.56
44.91%
SBLK
Star Bulk Carriers
27.15
10.84
66.42%
ECO
Okeanis Eco Tankers Corp.
52.74
31.92
153.30%
KNOT Offshore Partners Corporate Events
KNOT Offshore Partners Posts Solid Q1 2026 Results and Tightens Charter Coverage Amid Strong Shuttle Tanker Demand
May 28, 2026
KNOT Offshore Partners reported first-quarter 2026 revenues of $92.0 million, operating income of $14.7 million and net income of $2.6 million, with Adjusted EBITDA of $56.5 million and available liquidity rising to $140.7 million as of March 31, ...
KNOT Offshore Partners Posts Strong Q4 2025 Operations as Take-Private Talks Collapse and Charter Coverage Tightens
Mar 25, 2026
KNOT Offshore Partners reported interim results for the quarter ended December 31, 2025, posting revenues of $96.5 million, operating income of $8.4 million and a net loss of $6.2 million, mainly due to a $20.3 million non-cash impairment on the s...
KNOT Offshore Partners Ends Talks on Sponsor’s Buyout Offer
Mar 19, 2026
On March 19, 2026, KNOT Offshore Partners LP announced that it has terminated discussions over an unsolicited, non-binding buyout proposal first received on October 31, 2025 from its sponsor, Knutsen NYK Offshore Tankers AS, which sought to acquir...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.