KNOT Offshore Partners LP (KNOP): History, Ownership, Mission, How It Works & Makes Money

How does a specialized maritime logistics company like KNOT Offshore Partners LP (KNOP) maintain a Trailing Twelve Month revenue of over $339 million as of mid-2025 in a volatile energy market? You need to look past the surface-level oil price swings and focus on their core business: operating shuttle tankers, essentially a floating pipeline, which transport crude from offshore fields in the North Sea and Brazil. The company's Q2 2025 fleet utilization rate of 96.8% shows just how critical and in-demand this niche service is, plus it is all backed by a massive $895 million fixed contract backlog. With the recent November 2025 buyout offer from Knutsen NYK Offshore Tankers AS now on the table, understanding KNOP's foundational history and financial engine is defintely a must-read before you make your next move.

KNOT Offshore Partners LP (KNOP) History

You're looking for the foundational story of KNOT Offshore Partners LP (KNOP), and it's a classic spin-off narrative, but with a recent, high-stakes twist. The company was formed to be the publicly traded arm for a fleet of specialized shuttle tankers, giving investors direct exposure to long-term charter revenues. The entire history is defined by its relationship with its parent, Knutsen NYK Offshore Tankers AS (KNOT), which is now trying to take the partnership private again, offering $10 per unit in November 2025. That's the current, defintely most critical context.

Given Company's Founding Timeline

Year established

The Partnership was formally established in February 2013 as a limited partnership.

Original location

KNOT Offshore Partners LP is incorporated in the Republic of the Marshall Islands, which is common for shipping entities, but its principal executive offices are located in Aberdeen, United Kingdom.

Founding team members

The company was formed by its sponsor, Knutsen NYK Offshore Tankers AS (KNOT), a joint venture between TS Shipping Invest AS (TSSI) and Nippon Yusen Kabushiki Kaisha (NYK). The key individual founder is Trygve Seglem, who is the owner of TSSI and has served as the Chairman of the Partnership's board of directors since 2013.

Initial capital/funding

The Partnership completed its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE) in April 2013. The IPO was initially projected to raise approximately $149 million by offering 7.5 million common units, but ultimately sold 8,567,500 common units, including the underwriters' option.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by its core mission-owning modern shuttle tankers under long-term charters-but two key moments stand out, both involving the parent company, Knutsen NYK Offshore Tankers AS (KNOT). The first was the initial public spin-off, and the second is the current move to take it private.

• The 2013 Public Listing: Spinning off as a Master Limited Partnership (MLP) allowed KNOT to monetize its fleet assets and fund new shipbuilding projects, essentially using the public markets as a financing vehicle for fleet expansion. This was the original transformative decision.
• The 2025 Buyout Offer: The November 2025 unsolicited, non-binding proposal to acquire all publicly held common units for $10 per unit is the most recent, and potentially final, transformative moment. The parent company, which already controls the general partner, is trying to consolidate its shuttle tanker operations, likely to gain full control of the cash flows and simplify the structure.
• Financial Resilience in 2025: Despite the buyout drama, the business is performing well. For the second quarter of 2025, the company reported total revenues of $87.1 million and a net income of $6.8 million. This strong performance, coupled with $104.8 million in available liquidity, is what makes the timing of the buyout offer so interesting. The parent is making a move when the underlying business is generating strong cash flows.
• Strategic Fleet Upgrade: The 2025 acquisition of the Daqing Knutsen-a 2022-built DP2 Suezmax shuttle tanker-is a clear strategic move to lower the average age of the fleet and secure long-term, high-quality charters, enhancing the asset base right before the buyout offer.

For a deeper dive into the unitholder perspective on this ongoing situation, you should check out Exploring KNOT Offshore Partners LP (KNOP) Investor Profile: Who's Buying and Why?

KNOT Offshore Partners LP (KNOP) Ownership Structure

KNOT Offshore Partners LP (KNOP) operates as a publicly traded master limited partnership (MLP) on the New York Stock Exchange (NYSE), but its ownership structure is heavily influenced by its parent and General Partner, Knutsen NYK Offshore Tankers AS (KNOT). This structure means the General Partner holds significant control and management rights, even with a substantial public float.

The key financial dynamic as of November 2025 is the pending privatization proposal from the General Partner, Knutsen NYK Offshore Tankers AS, to acquire all publicly held common units for $10.00 in cash per unit, valuing the public stake at a specific premium or discount depending on the market's perception of the shuttle tanker fleet's true value. This is the single biggest factor affecting unitholder decision-making right now.

KNOT Offshore Partners LP Current Status

As of November 2025, KNOT Offshore Partners LP is a publicly listed entity on the NYSE under the ticker KNOP, but its status is defintely in flux. The partnership received an unsolicited, non-binding proposal from its General Partner, Knutsen NYK Offshore Tankers AS, on October 31, 2025, to take the company private.

The Board's Conflicts Committee, composed of non-KNOT-affiliated directors, is currently evaluating this buyout offer. This is not a done deal, so you should monitor the committee's findings closely. The partnership's total market capitalization was approximately $342.39 million in November 2025.

To understand the full scope of the business, you can review the Mission Statement, Vision, & Core Values of KNOT Offshore Partners LP (KNOP).

KNOT Offshore Partners LP Ownership Breakdown

The ownership structure is a classic MLP model, where the General Partner maintains control. As of the 2025 fiscal year data, the ownership distribution among the major groups is clearly defined, with the public float still holding the largest single block, but with the General Partner's influence being paramount.

Here's the quick math: Institutional ownership sits at nearly 29%, but the General Partner's block of over 28% gives them the leverage to drive strategic decisions, including the current privatization attempt.

KNOT Offshore Partners LP Leadership

The leadership team is responsible for steering the partnership through its long-term charter contracts and the immediate challenge of the potential privatization. The key executives and board members as of November 2025 are:

• Derek Lowe: Chief Executive Officer (CEO) and Chief Financial Officer (CFO). He assumed both roles in September 2023, bringing deep experience from the debt and equity capital markets.
• Trygve Seglem: Chairman of the Board of Directors. He has served as Chairman since 2013 and is a major stakeholder, as he is the owner of TSSI, which is a 50% owner of the General Partner, Knutsen NYK Offshore Tankers AS.
• Masami Okubo: Director. He joined the board in April 2025 and is also the Managing Director of NYK Energy Transport (Atlantic) Ltd., underscoring the strong link to the NYK side of the parent company.
• Pernille Østensjø: Independent Director Nominee. She was nominated in October 2025 for a vote at the December 15, 2025 Annual Meeting, which would add significant financial and energy-sector expertise to the board.

The board composition is critical right now, as the independent directors on the Conflicts Committee must decide if the $10.00 offer is fair to the public unitholders. Finance: closely track the Conflicts Committee's decision timeline to gauge the likelihood of a sweetened offer or a termination of the bid.

KNOT Offshore Partners LP (KNOP) Mission and Values

KNOT Offshore Partners LP's core purpose extends beyond simple profit, focusing on providing critical, ultra-reliable infrastructure for the global offshore oil supply chain while delivering stable, predictable returns to its unitholders.

This is a company built on the operational demands of the North Sea and Brazilian offshore fields, so its cultural DNA is rooted in precision and long-term commitment. Honestly, when you operate a fleet of specialized shuttle tankers-often described as a 'floating pipeline'-your mission is less about marketing buzz and more about flawless execution, day in, day out. Exploring KNOT Offshore Partners LP (KNOP) Investor Profile: Who's Buying and Why?

Given Company's Core Purpose

The company's fundamental purpose is to generate stable and growing cash distributions for its unitholders by owning and operating a modern fleet of shuttle tankers under long-term, fixed-rate charters with major oil companies.

Here's the quick math: securing long-term contracts, like the average remaining term of approximately 2.5 years as of late 2024, creates a predictable revenue stream. This stability is the core value proposition, insulating the business from short-term market volatility. Plus, the fleet utilization rate was a very strong 98.3% in Q4 2024, which defintely shows operational excellence.

Official Mission Statement

While KNOT Offshore Partners LP does not publish a single, cliched mission statement, its operational mandate is clear: to be the most reliable and safe provider of specialized crude oil transportation in the world's most demanding offshore regions.

• Prioritize Safety: Ensure the safety of personnel and the environment above all else.
• Maximize Efficiency: Optimize vessel uptime and operational performance.
• Deliver Reliability: Provide dependable transportation services under long-term contracts.

Vision Statement

The vision is to maintain and expand its position as the global market leader in the shuttle tanker industry, acting as critical, long-term infrastructure for the offshore oil supply chain.

• Grow the world's largest shuttle tanker fleet in conjunction with its Sponsor, Knutsen NYK Offshore Tankers AS.
• Secure accretive investments in the fleet to ensure a long-term, sustainable distribution, like the $0.026 per common unit declared for Q3 2025.
• Proactively align with evolving climate regulations and invest in green technologies to reduce environmental footprint.

Given Company Slogan/Tagline

KNOT Offshore Partners LP does not use a formal, consumer-facing tagline, but its vessels and service are consistently described by the industry and the company itself with a powerful, descriptive phrase that captures its function.

• The Shuttle Tanker: The Floating Pipeline.

This simple description perfectly captures the company's role: providing a flexible, essential infrastructure service for major oil companies like Equinor, Petrobras Transporte S.A. (Transpetro), and Shell.

KNOT Offshore Partners LP (KNOP) How It Works

KNOT Offshore Partners LP operates as a critical, non-cyclical infrastructure provider in the offshore oil supply chain, essentially acting as a floating pipeline for major energy companies. The company makes money by owning and chartering a fleet of specialized shuttle tankers under long-term, fixed-rate contracts.

KNOT Offshore Partners LP's Product/Service Portfolio

The company focuses entirely on the niche shuttle tanker market, providing highly specialized crude oil logistics that conventional tankers cannot handle. The core value is reliable, dynamic positioning (DP2) transportation from remote offshore fields to mainland terminals or storage facilities.

KNOT Offshore Partners LP's Operational Framework

The operational framework is built on stability and predictable cash flow, which is defintely a smart move in the volatile energy sector. It's a low-risk model anchored by long-term contracts with blue-chip counterparties like Petrobras and Equinor. Here's the quick math on their revenue visibility: the fixed contract backlog stood at approximately $895 million as of June 30, 2025. Breaking Down KNOT Offshore Partners LP (KNOP) Financial Health: Key Insights for Investors

• Fixed-Rate Revenue: Nearly all vessels operate on time charters where the customer pays a fixed daily rate, not a variable spot rate. This shields revenue from short-term oil price swings and freight rate volatility.
• Cost Mitigation: Charter agreements typically stipulate that the customer pays for bunker fuel, which removes a major variable operating cost and risk exposure for KNOT Offshore Partners LP.
• Accretive Dropdowns: The company grows its fleet by acquiring modern shuttle tankers from its sponsor, Knutsen NYK Offshore Tankers AS (KNOT), under an omnibus agreement. The recent acquisition of the Daqing Knutsen for $95 million in 2025 is a prime example, immediately adding a vessel with a charter guaranteed until 2032.
• High Utilization: The fleet of 19 vessels maintained a utilization rate of 96.8% in Q2 2025, which translates directly into consistent revenue generation.

KNOT Offshore Partners LP's Strategic Advantages

The shuttle tanker market is a high-barrier-to-entry niche, so KNOT Offshore Partners LP benefits from a structural competitive moat. This isn't just about owning ships; it's about owning the right ships with the right technology and the right contracts.

• Market Leadership and Scale: Together with its sponsor, Knutsen NYK Offshore Tankers AS, the company forms the world's largest operator of shuttle tankers, giving them a significant advantage in securing and extending major contracts.
• Specialized DP2 Fleet: Their vessels are modern, specialized Dynamic Positioning (DP2) shuttle tankers, essential for safely loading crude oil in harsh environments like the North Sea and deepwater fields in Brazil. This technology is expensive and requires specialized expertise, limiting competition.
• Long-Term Contract Visibility: The substantial $895 million contract backlog provides exceptional revenue visibility and financial certainty, allowing for better debt management and capital planning.
• Geographic Focus: Concentrating operations in the high-growth Brazilian pre-salt fields and the mature, stable North Sea allows them to serve the world's most demanding oil majors, like ExxonMobil and Shell, who need this critical infrastructure.

KNOT Offshore Partners LP (KNOP) How It Makes Money

KNOT Offshore Partners LP generates its revenue by owning and operating a specialized fleet of shuttle tankers, which are essentially floating pipelines, under long-term contracts with major oil and gas companies. This model provides highly stable, fixed-rate cash flow, insulating the business from the daily volatility of crude oil prices.

KNOT Offshore Partners LP's Revenue Breakdown

The company's financial engine is built almost entirely on predictable, multi-year contracts, primarily in the North Sea and Brazil. Since the business is structured around securing these long-term deals, the vast majority of revenue is concentrated in a single, stable stream.

Business Economics

The economics of KNOT Offshore Partners LP are centered on minimizing market risk through contract structure, which is a defintely smart move in the volatile energy sector. The core of their strategy is to secure long-term time charters (a type of lease where the company operates the vessel but the charterer pays a fixed daily rate), typically spanning five to ten years, with high-quality counterparties like leading energy majors and National Oil Companies (NOCs). This is why you see such consistency in their results.

• Commodity Price Insulation: Vessels on charter have no direct exposure to commodity prices. The charter rate is fixed, so whether oil is $50 or $100 a barrel, the revenue per day remains the same.
• High Utilization: The specialized nature of their shuttle tankers-vessels equipped with dynamic positioning systems to load oil directly from floating production facilities-creates high barriers to entry, which translates into high fleet utilization. In Q2 2025, the fleet operated with 96.8% utilization, even accounting for scheduled drydockings.
• Predictable Cash Flow: The long-term nature of the contracts ensures a visible revenue backlog. This predictability is the foundation for the company's ability to generate stable cash distributions.

The business model is essentially a long-term infrastructure play, not a spot-market shipping gamble. For more on the strategic focus, you can review the Mission Statement, Vision, & Core Values of KNOT Offshore Partners LP (KNOP).

KNOT Offshore Partners LP's Financial Performance

Looking at the 2025 fiscal year data confirms the stability of the long-term charter model, showing consistent performance quarter-over-quarter and a positive outlook. Here's the quick math on the near-term health:

• Total Revenue: The company reported total revenues of $87.1 million for the second quarter of 2025. This is up from the $84.0 million reported in Q1 2025, showing a clear upward trend.
• Adjusted EBITDA: Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)-a key measure of operational cash flow-was strong at $51.6 million in Q2 2025.
• Net Income: Net income for Q2 2025 came in at $6.8 million. This is the bottom-line profit after all expenses, including interest and depreciation.
• Full-Year Outlook: Analysts project full-year 2025 revenue to reach approximately $334.11 million, an increase from the previous year, driven by high utilization and strategic fleet management.
• Liquidity Position: As of the end of Q2 2025, the company maintained a healthy liquidity position of $104.8 million, which included $66.3 million in cash and cash equivalents. This is a solid buffer for managing debt maturities and pursuing fleet expansion opportunities.

The consistent revenue generation and high operational metrics like fleet utilization are the clearest indicators that the long-term charter strategy is working as designed to maximize returns and organizational performance.

KNOT Offshore Partners LP (KNOP) Market Position & Future Outlook

KNOT Offshore Partners LP (KNOP) is positioned for near-term growth, capitalizing on a tightening shuttle tanker market in its core operating regions of Brazil and the North Sea. The company's future trajectory is anchored by a massive $895 million contract backlog of fixed charter revenues as of June 30, 2025, providing a strong shield against commodity price volatility. [cite: 19 (from initial search)]

Competitive Landscape

The shuttle tanker market is a specialized, concentrated niche where KNOT Offshore Partners, along with its sponsor Knutsen NYK Offshore Tankers AS (KNOT), forms the world's largest operator. This dominance is critical because new vessel construction is complex and shipyard capacity is limited until late in the decade. [cite: 13 (from initial search)]

Opportunities & Challenges

The market is structurally tight, meaning demand is outpacing supply, which drives up charter rates when vessels come off contract. For instance, fleet utilization for scheduled operations was nearly 97% in Q2 2025. [cite: 2 (from initial search)] But, you must be defintely realistic about the capital demands and ownership uncertainty. The core of the strategy is fleet renewal and accretive dropdowns, which you can read more about in the Mission Statement, Vision, & Core Values of KNOT Offshore Partners LP (KNOP).

Industry Position

KNOT Offshore Partners LP holds a dominant, infrastructure-like position in the specialized shuttle tanker sector, which acts as a floating pipeline for offshore crude oil. Its strength lies in its long-term, fixed-rate charter model with blue-chip clients like Shell, Equinor, and Petrobras, which generated a trailing twelve-month revenue of $338.64 million as of the end of Q2 2025. [cite: 5, 7 (from initial search)]

• Revenue Visibility: 96% of 2025 charter coverage was secured as of March 2025, insulating cash flow from short-term oil price swings. [cite: 2 (from initial search)]
• Strategic Focus: Operations are concentrated in the high-demand, high-barrier-to-entry regions of the North Sea and the deepwater pre-salt fields of Brazil. [cite: 7 (from initial search)]
• Capital Allocation: The company is actively managing its capital structure, evidenced by the refinancing of the Tove Knutsen for $32 million in net proceeds and the establishment of a $10 million unit buyback program in 2025. [cite: 4 (from initial search), 19 (from initial search)]

The business model is built on stability; long-term contracts mean customers, not KNOP, pay for fuel, removing a major variable cost. [cite: 9 (from initial search)]