-
Market Leader
KNOP (together with our Sponsor KNOT) is the market leader, with the
world’s largest shuttle tanker fleet and more than 30 years’ experience
investing in and operating shuttle tankers at the leading edge of
innovation.
-
Cash Flow Generation
KNOP views a sustainable distribution as an important part of the Partnership’s value
proposition and seeks to secure charter coverage to reliably support that distribution
on a long-term basis.
-
1099 Filer (No K-1s)
As KNOP elects to be treated as a C-Corporation for U.S. tax purposes,
KNOP unitholders receive a standard 1099 form, rather than a partnership
K-1.
-
Fixed-Rate Charters
KNOP’s vessels are employed primarily on fixed-rate, medium and long-term
charters and are used for the loading, transportation, storage, and
discharge of our customers' crude oil; charter contract revenues are not
impacted by the charterer’s utilization of a vessel or by the price of
fuel, providing forward visibility of cash flows.
-
Insulated from Oil Price Moves
KNOP is typically paid a fixed day rate per vessel, with fuel costs borne
by the charterer, thus KNOP suffers no direct impact from short-term oil
price volatility.
-
Diversified Charter Portfolio
KNOP’s customers are a diverse group of National Oil Companies and Oil
Majors, with no vessel charter contract accounting for more than 10% of
EBITDA and charter hire is due and payable monthly in advance.
-
Superior Asset Versatility
KNOP’s vessels are more economic and environmentally friendly than a
pipeline, while offering charterers source and destination flexibility and
KNOP the ability to reposition over time to service evolving offshore
customer requirements and industry developments.
-
Differentiated Business with High Barriers to Entry
With stricter operating and maintenance standards, specialized assets,
highly trained crew and longer-term fixed-rate contracts, shuttle tankers
typically offer a less volatile investment opportunity compared to other
types of conventional or commoditized shipping.
-
Critical Infrastructure
As necessary and highly specialized assets performing a critical
infrastructural role in long-term offshore energy projects, shuttle
tankers have limited replacement risk.