Second Quarter 2016 Results

August 11, 2016

2

Notice to Recipients

This presentation is not a prospectus and is not an offer to sell, nor a solicitation of an offer to buy, securities.

Except for the historical information contained herein, the matters discussed in this presentation include

forward-looking statements that involve risks and uncertainties. These risks and uncertainties include, among

other things, market conditions and other factors that are described in KNOT Offshore Partners LP’s (“KNOP”)

filings with the U.S Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at

http://www.sec.gov.

Nevertheless, new factors emerge from time to time, and it is not possible for KNOP to predict all of these

factors. Further, KNOP cannot assess the impact of each such factor on its business or the extent to which any

factor, or combination of factors, may cause actual results to be materially different from those contained in any

forward-looking statement. KNOP expressly disclaims any intention or obligation to revise or publicly update

any forward-looking statements whether as a result of new information, future events or otherwise. The forward-

looking statements contained herein are expressly qualified by this cautionary notice to recipients.

3

Financial Highlights

Highest quarterly revenues of $43.1 million.

Highest quarterly operating income of $20.2 million and net income of $11.6 million.

Highest quarterly Adjusted EBITDA(1) of $34.1 million.

Highest quarterly distributable cash flow(1) of $18.5, with a coverage ratio of 1.23.

Achieved strong operational performance with 99.9% utilization

Declared cash distribution of $0.52 per unit for Q2 2016, 2% higher than 2Q 2015,

unchanged from Q1 2016

On June 30, 2016, the Partnership entered into an amended and restated senior

secured credit facility, which includes a new revolver facility tranche of $15 million, in

order to further strengthen the balance sheet and increase financial flexibility.

(1) “Adjusted EBITDA” and “Distributable cash flow” are non-GAAP financial measures, please see the Appendix for definitions.

4

KNOP has very good access to bank financing

Geographically diversified bank group As of June 30, 2016, $55.7 million in available liquidity,

consisted of cash $25.7 million and $30 million undrawn

revolving credit facility

KNOP has nine supportive banks that are financing the

partnership through four different lending facilities

– Secured Term Loan Facilities for the vessels Fortaleza, Recife,

Windsor, Bodil and Carmen with a lending margin of 2.125%

maturing 2019 and lending margin of 2.5% for the $15 million new

revolver credit facility maturing 2019

– Secured Term Loan Facilities for the vessels Hilda and Torill with

lending margin of 2.5% maturing 2018

– Secured Term Loan Facilities for the vessels Dan Cisne and Dan

Sabia with a lending margin of 2.4% maturing 2023/2024

– Secured Term Loan Facilities for the vessels Ingrid, consisting of

20% commercial bank tranche with lending margin of 2.25%

maturing 2018 and a 80% export credit loan with fixed annual rate

of 3.85% maturing 2025

Given KNOPs modern fleet and healthy backlog, KNOP is

able to fully finance the partnership with attractive bank

financing

All five dropdown vessels fully long-term financed with pre-

acceptance by banks of KNOP as new owner on existing

financial covenants; hence no financing risk

20%

22%

12%

12%

8%

3%

9%

7%

8%

5

Income Statement

Unaudited, USD in thousands 2Q 2016 1Q 2016 2Q 2015 FY 2015

Time charter and bareboat revenues 42,864 41,826 36,071 154,750

Other income 199 200 149 274

Total revenues 43,063 42,026 36,220 155,024

Vessel operating expenses 7,975 7,647 6,807 27,543

Depreciation 13,913 13,892 11,400 48,844

General and administrative expenses 948 1,308 1,068 4,290

Goodwill impairment charge — — — 6,217

Total operating expenses 22,836 22,847 19,275 86,894

Operating income 20,227 19,179 16,945 68,130

Interest income 0 2 1 8

Interest expense (5,055) (5,029) (4,186) (17,451)

Realized and unrealized gain (loss)

on derivative instruments (3,176) (3,184) (5,623) (9,695)

Other financial items(1) (416) (302) 52 (609)

Income before income taxes 11,581 10,666 7,189 40,383

Income tax benefit (expense) (3) (3) (3) 59

Net income 11,578 10,663 7,186 40,442

(1) Other financial items consist of other finance expenses and net gain (loss) on foreign currency transactions

Net Income impacted in Q2 by derivatives loss due to lower US interest rates

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Adjusted EBITDA

Unaudited, USD in thousands 2Q 2016 1Q 2016 2Q 2015 FY2015

Net income 11,578 10,663 6,887 40,443

Interest income — (2) (2) (8)

Interest expense 5,055 5,029 4,212 17,451

Depreciation 13,913 13,892 11,560 48,844

Goodwill impairment charge — — 6,217 6,217

Income tax (benefits) expense 3 3 3 (59)

EBITDA 30,549 29,585 28,877 112,888

Other financial items (a) 3,592 3,486 (42) 10,304

Adjusted EBITDA 34,141 33,071 28,835 123,192

(a) Other financial items consist of other finance expense, realized and unrealized gain (loss) on derivative instruments and net gain (loss) on foreign currency transactions

Highest ever quarterly Adjusted EBITDA

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Distributable cash flow

Unaudited, USD in thousands 2Q 2016 1Q 2016 2Q 2015 FY2015

Net income 11,578 10,663 6,887 40,442

Add:

Depreciation 13,913 13,892 11,560 48,844

Goodwill impairment charge — — 6,217 6,217

Other non-cash items; deferred costs amortization debt 287 287 288 1,149

Unrealized losses from interest rate derivatives and

forward exchange currency contracts 1,608 4,348 — 8,629

Less:

Estimated maintenance and replacement capital

expenditures (including drydocking reserve) (7,894) (7,894) (6,264) (26,704)

Other non-cash items; deferred revenue and accrued

income (1,032) (1,319) (858) (3,432)

Unrealized gains from interest rate derivatives and

forward exchange currency contracts — (2,089) (1,586) (8,239)

Distributable cash flow (A) 18,460 17,888 16,243 66,907

Total distributions (B) 15,027 15,095 14,747 56,922

Coverage ratio (A/B) 1.23X 1.19X 1.10X 1,18X

Coverage ratio based on weighted average unit 1.23X 1.19X 1.25X 1,21X

Highest ever quarterly distributable cash flow

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Balance sheet

Unaudited, USD in thousands At June 30,

2016

At December 31,

2015

At June 30,

2016

At December 31,

2015

Current assets: Current liabilities

Cash and cash equivalents 25,667 23,573 Current portion of long-term debt 53,888 48,535

Derivative assets 232 — Derivative liabilities 3,747 5,138

Other current assets 2,504 2,707 Contract liabilities 1,518 15,18

Other current liabilities 12,927 10,345

Total current assets 28,403 26,280 Total current liabilities 72,080 65,536

Long-term liabilities:

Long-term debt 594,621 619,187

Derivative liabilities 6,028 1,232

Contract liabilities 8,998 9,757

Long-term assets: Deferred tax liabilities 919 877

Vessels adn equipment 1,168,240 1,192,927 Other long-term liabilities 1,799 2,543

Derivative assets — 695 Total liabilities 684,445 699,132

Accrued income 706 —

Total long-term assets 1,168,946 1,193,622 Total partners’ equity 512,904 520,770

Total assets 1,197,349 1,219,902 Total equity and liabilities 1,197,349 1,219,902

Available liquidity of USD 55.7m vs. requirement of USD 18.5m

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Financial guidance for existing fleet for year 2016

Guidance YTD 16 Figures Achieved

Revenues $ 167-170 m $85.1 m 51%

EBITDA $128-132 m $67.2 m 52%

Distributable Cash Flow $75-79 m $36.4 m 47%

Distribution $60 m $30.1 m 50%

Coverage ratio ≈1.25 1.21

Despite docking of Bodil Knutsen in first quarter with

associated costs and off-hire we are in line to deliver

according to full year guidance

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Stable operational performance results in stable financial performane

17,320,5

22,2 21,8 22,1

34,3 34,7 36,2 3739,3

42,5 42,0 43,1

Q2

2013

Q3 Q4 Q1

2014

Q2 Q3 Q4 Q1

2015

Q2 Q3 Q4 Q1

2016

Q2

REVENUE (USD million)

ADJUSTED EBITDA (USD million)

100%

99,2% 99,3% 99,4% 99,7%

98,9%

99,7% 99,9% 100%99,6%

99,9% 99,8 % 99,90%

Q2

2013

Q3 Q4 Q1

2014

Q2 Q3 Q4 Q1

2015

Q2 Q3 Q4 Q1

2016

Q2

UTILIZATION (%)

7,2

9,3 9,88,9

8,1

14,7 15,116,4 16,2 16,2

18,1 17,9 18,5

Q2

2013

Q3 Q4 Q1

2014

Q2 Q3 Q4 Q1

2015

Q2 Q3 Q4 Q1

2016

Q2

12,7

15,716,8 16,1 16,3

25,7 26,528,3 28,8

32,233,8 33,1

34,1

Q2

2013

Q3 Q4 Q1

2014

Q2 Q3 Q4 Q1

2015

Q2 Q3 Q4 Q1

2016

Q2

DCF (USD million)

Average of 99.7 % since IPO 28% CAGR

since IPO

30% CAGR

since IPO

31% CAGR

since IPO

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Name Area 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Windsor Knutsen Brazil

Bodil Knutsen N. Sea

Fortaleza Knutsen Brazil

Recife Knutsen Brazil

Carmen Knutsen Brazil

Hilda Knutsen N. Sea

Torill Knutsen N. Sea

Dan Cisne Brazil

Dan Sabia Brazil

Ingrid Knutsen N. Sea

Long-term Contracts Backed by Leading Energy Companies

KNOP fleet has average remaining fixed contract duration of 5.1(2) years

Additional 2.5 years on average in Charterers option

(1) KNOT has guaranteed the hire rate to April 2018 (five years from IPO date)

(2) Remaining contract life is calculated as of 30/06/2016.

(1)

(1)

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Significant fleet growth since IPO

13

Positive news from Brazil

Brazil production is estimated to grow by 7% yearly over the next four years.

Total production split by projects – thousands boe/d

• Petrobras sold 66% share in 1 billion-barrel

Carcara to Statoil - making the Norwegian

major the first international oil company to

acquire operatorship in Brazil’s giant pre-salt

fields

• Petrobras announced in May/June:

• Oil production operated in the pre-salt exceeded 1

million bpd less than 2 years after reaching production

of 0,5 bpd

• The average cost of extraction of the pre-salt wells

totaled less than US$8 per barrel of oil equivalent and

has been gradually decreasing, and the average time

to build a well reached 89 days, a reduction of 71%

between 2010 and 2016.

• Reported monthly production in June - 2.7 million boed

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Still significant demand for new shuttle tanker projects

As of today shuttle tanker market extremely tight,

without any free capacity

– No speculative newbuildings orders

Fearnleys sees a significant demand for new

shuttle tankers going forward

– Expect tenders for in excess of 40 vessels up to 2020

– Including attrition demand which represent more than

half of the demand

Corruption scandal in Brazil combined with lower

oil price have decreased/delayed shuttle tanker

demand

– No field development projects have been canceled

– Projects likely to be developed, timing uncertain

In Brazil generally perform long haul trades

– Ton mile (vessel) demand increases in with oil

production

Sources: Fearnleys Consultants February 2016.

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Dropdown inventory: Five potential acquisitions

Fixed contract periods for the dropdown fleet are 5.8(1)years on average

Charterers also have the option to extend these charters by 11.2 years on average

(1) Remaining contract life is calculated as of 30/06/2016.

Name Area 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Raquel Knutsen Brazil

H2816 Brazil

H2817 Brazil

H686 Brazil

H2818 Brazil

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Summary

Solid contract base – Revenue backlog of $ 746 million and

average contract duration of 5.1 years(1)

1

Modern shuttle tanker fleet, average age 4.6 years vs. industry

average of 11.2 years excluding KNOP fleet(1)

Excellent operating results – 99.7%(2) average utilisation since IPO

Large sponser asset base – provide substantial dropdown growth

potential

1

2

3

4

(1) As of June 30, 2016

(2) Of the fleet for scheduled operation, adjusted for planned off hire the average utilization rate is 99.5%

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Shuttle Tanker Market Overview

Thank you, any questions?

Appendix

APPENDIX

19

Non-GAAP Financial Measures

Adjusted EBITDA

Adjusted EBITDA refers to earnings before interest, other financial items, taxes, non-controlling interest, depreciation and

amortization. Adjusted EBITDA is a non-GAAP financial measure used by investors to measure our performance.

Adjusted EBITDA is used as a supplemental financial measure by management and external users of financial statements, such

as investors, to assess the Partnership’s financial and operating performance. The Partnership believes that Adjusted EBITDA

assists its management and investors by increasing the comparability of its performance from period to period and against the

performance of other companies in its industry that provide Adjusted EBITDA information. This increased comparability is achieved

by excluding the potentially disparate effects between periods or companies of interest, other financial items, taxes and

depreciation and amortization, which items are affected by various and possibly changing financing methods, capital structure and

historical cost basis and which items may significantly affect net income between periods. The Partnership believes that including

Adjusted EBITDA as a financial measure benefits investors in (a) selecting between investing in the Partnership and other

investment alternatives and (b) monitoring the Partnership’s ongoing financial and operational strength in assessing whether to

continue to hold common units. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative

to net income or any other indicator of Partnership performance calculated in accordance with GAAP.

Distributable Cash Flow

Distributable cash flow represents net income adjusted for depreciation and amortization, unrealized gains and losses from

derivatives, unrealized foreign exchange gains and losses, other non-cash items and estimated maintenance and replacement

capital expenditures. Estimated maintenance and replacement capital expenditures, including estimated expenditures for

drydocking, represent capital expenditures required to maintain over the long-term the operating capacity of, or the revenue

generated by our capital assets. The Partnership believes distributable cash flow is an important measure of operating

performance used by management and investors in publicly-traded partnerships to compare the cash generated by the

Partnership to the cash distributions the Partnership pays its unitholders. Distributable cash flow is a non-GAAP financial measure

and should not be considered as an alternative to net income or any other indicator of KNOT Offshore Partners’ performance

calculated in accordance with GAAP.