Ladies and gentlemen, thank you for joining us and welcome to the Knopp Second Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session with an opportunity for equity research analysts to ask questions. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 1 to raise your hand. I will now hand the conference over to Derek Lowe. Please go ahead, sir.

Thank you Leo and good morning ladies and gentlemen. My name is Derek Lowe and I'm the Chief Executive and Chief Financial Officer of Cnot Offshore Partners. Welcome to the partnership's earnings call for the second quarter of 2026. Our website is cnotoffshorepartners.com and you can find the earnings release there along with this presentation. On slide two you'll find guidance on the inclusion of forward-looking statements in today's presentation. These are made in good faith and reflect management's current views John Einar Dalsvag, Derek Lowe Today's presentation also includes certain non-US gap measures and our earnings release includes a reconciliation of these to the most directly comparable gap measures. We begin on slide three with the Q2 financial and operational headlines. Revenues were 96.8 million, operating income 15.6, net income 3.4 million, adjusted EBITDA of $57.6 million, and as of June 30th, 2026, we had $143.3 million in available liquidity made up of $95.3 million in cash and cash equivalents plus $48 million in undrawn capacity. This available liquidity was $2.6 million higher than at March 31st and that rise is largely in line with the reducing trend in recent quarters. We operated with 96.8% utilization taking into account scheduled dry docking which amounts to 92.4% utilization overall following the dry docking of Fort Lazer, Knudsen. Following the end of the quarter, we declared a cash distribution of 7.5 cents per common unit which was paid in August under the 1099 structure and which represented an increase from the previous level. We're pleased to have continued the process of multiple gradual increases to our distribution anchored in our reliable and diversified long-term cash flow and improved balance sheet. On slide 4, we have the most significant developments since the start of the second quarter. On September 1, 2026, we purchased the head of Knutson from Knott for a purchase price of $113 million, less than $89.4 million debt facility, plus $0.8 million of capitalised financing fees, resulting in a net cash cost of $24.4 million. The transaction was negotiated by our board's Independent Conflicts Committee. The vessel was delivered new to KNOT in October 2024 and is on time charter to Petrobras in Brazil through to November 2034 with an additional five years of charter as options. The acquisition provides fleet growth, diversifies and extends our pipeline of long-term contracts, reduces our average fleet age and develops the fleet in the most in-demand shuttle tank ground set class. And on slide five, we have commercial and financing developments. We list here a number of positive contractual developments since the beginning of the second quarter. In addition to the various charterers options exercised, as expected, I would highlight the time charter for Hilde Knudsen was executed with ENI to commence in June 2027 for a fixed period of three years, plus three charterers options each for one additional year. The time charter for Recife Knudsen was executed for Transpetro to commence in Q3 2026 for a fixed period of two years. The agreement was reached with E&I for a time charter on Ingrid Knudsen commencing October 2026 for three years fixed plus three years options, three options each of one year. This is indirect continuation of the existing time charter to E&I and replaces their existing options. And we refinanced the loan secured by Tordis, Figdis, Lehner, Anna and Brazil Knudsen by a new $225 million five-year senior secured term loan facility arranged by DNB. with the interest rate reduced meaningfully to SOFA plus 165 basis points. Turning to slide six for a high level summary of our operating momentum. In both Brazil and the North Sea, we continue to see tightening markets driven by robust multi-year FPSO pipeline, production growth and continuing investment in exploration and existing project expansion. The increase in shuttle tanker service volumes across both markets has been sustained and sufficient to tighten the supply-demand balance, even as new vessels have been delivered. We have expanded our strong backlog with $881.2 million of fixed contracts at quarter end, which average 2.5 years in duration, and chartered as options averaging further four years. At quarter end, our fleet of 19 vessels had an average age of 10.7 years. Acquisition of the header reduces the average age by nearly half a year. We are continuing to repay debt at around $95 million per year, which we consider prudent with a depreciating asset base. And we are well advanced in the refinancing of the $65 million facility secured by Lever Knudsen, which is due later in October. Over slides 8 to 11, we provide the financials for Q2, the highlights of which we've covered already. On slide 12 is our debt maturity profile. While no guarantees can be made, we have historically benefited from access to a wide pool of lenders and attractive bank finance. We've been encouraged by our refinancing experience in recent years, including during significantly weaker shuttle tanker markets than the current one. Notably, the average margin on our floating rate debt during the second quarter was 2.21% over SOFA. Moving on to slide 14 and our charter portfolio, I believe this remains a very useful resource for investors looking to track the primary moments where change can occur in a highly stable portfolio of cash flows. Based on current charter rates, we believe charter as options are likely to be exercised given the strength of the charter market. On slide 15, you can see our strong forward coverage where we're fully chartered for the remainder of 2026. And in 2027, we have 92% firm coverage or 96% including charter as options. Likewise for 2028, we have 65% firm coverage or 93% including charter as options. If we assume that Charles' options are picked up, which is our current expectation, then you can see the slowly widening light grey section at the top of the bars as those offering upside potential for the KNOP fleet if market momentum is sustained. On slide 16, you can see the drop-down inventory held at the sponsor. Drop-downs have been the route to growth in the fleet throughout the life of the partnership and remain the means of replenishing and rejuvenating the fleet. In June 2026 the partnership decided not to pursue Frieda Knudsen and Sindra Knudsen and they've been removed from our drop-down inventory. At the same time we believe that the combination of accretive drop-downs and an improving charter market should support multiple gradual distribution increases over the coming quarters and years in addition to materially extending our long-term cash generation runway as certain of our vessels begin to age out in the years ahead. On slide 17 to 19, we include market commentary, particularly from Petrobras, which continues to highlight record production, a strong and expanding offshore production outlook and continued FBSO deployment. We encourage you to review this as well as the copious materials that Petrobras publishes as the largest player in the Brazilian market where we primarily operate. To summarise on slide 20, during the second quarter, we had strong utilisation and solid financial results. We secured additional charter coverage across key vessels. We maintained a constructive backlog and market outlook. We paid a quarterly distribution of 7.5 cents per unit, which is an increase from 5 cents in the prior quarter and 2.6 cents per quarter for several years before that. Following the end of the quarter, we purchased header Knudsen, secured additional charter coverage and refinanced the $225 million loan facility. And on slide 21, we conclude with the key themes for KNOP and the shuttle tanker market. The market remains niche and highly concentrated. Offshore extraction continues to take market share from traditional onshore production. And FBSOs serviced by shuttle tankers remain dominant compared with the construction of new pipelines. Brazil and North Sea offshore build-outs have strong momentum following quite a stretch, while the shuttle tanker order book remains non-speculative And insufficient to meet anticipated demand levels. Looking ahead to coming quarters and years, we believe that KNLP is well positioned to pursue attractive long term growth opportunities alongside multiple gradual increases to our sustainable distribution. With that, I'll hand the call back to Leah for any questions. Thank you.

We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Liam Burke with B Reilly Securities. Your line is open. Please go ahead.

You've been a busy man this quarter.

Yes, I have. Thanks, Liam.

In terms of dropdowns, the head of financing was pretty elegant with the assumption of debt and the addition of cash. When I think about the potential drop downs and the ability to finance them, do you anticipate a different cadence of growing the fleet or are you just going to take it as they come along?

Well, we respond to the offers that are made to us. Only a limited number of the fleet have been delivered of the drop down lists have been delivered at this stage. And so they can only be offered once they've been delivered. And so it's a matter of the timing of the offers and the response that the conflicts committee wants to make to them.

Okay, but would you envision the financing similar to HEDA? John Einar Dalsvag, Derek Lowe

The ownership and the guarantor arrangements can be transferred over to K&OP from K&OT so that that is straightforward. But I would say the John Einar Dalsvag, Derek Lowe

There are no further questions at this time. I will now turn the call back to Derek Lowe for closing remarks.

Well, thank you again, ladies and gentlemen, for joining this earnings call for Cross Offshore Partners second quarter of 2026. And I look forward to speaking with you again following the third quarter results.

This concludes today's call. Thank you for attending. You may now disconnect.