KNOT Offshore Partners LP (NYSE:KNOP) Q3 2022 Earnings Call Transcript

Gary Chapman: Well, because — and I’m not saying we’re going to do a dropdown. But the way that we think about the dropdown is whether or not by itself as a standalone ship does it make the MLP stronger, is it in the interest of everybody for us to take that when you look at the cash flows associated with that vessel. So if we pay X dollars for it, is it creating free cash flow for us by buying that vessel at that price with the debt that it has in the charter that it has. And also considering the fact that we will have to pay a certain amount of equity for it and that maybe generated through internal funds or debt. But as a project, as a vessel, it has to stand alone and be a good piece of business and that’s accretive as to the Partnership, otherwise, obviously, we won’t do it.

Rob Silvera: Well, that’s good to hear. The thing that’s really discouraging is the market’s reaction to the current report, which is quite discouraging. Because see a whole year’s of dividends wiped out in the price of the stock. Okay, thank you. That’s my input, Gary. Please consider that and have a nice holiday. And God bless you.

Gary Chapman: Thank you.

Operator: At this time, we currently have no further questions. So I’ll hand back over to Gary for any closing remarks.

Gary Chapman: Thank you everybody. And I wish everybody well for the holiday season if we don’t speak to you, and thank you again for listening.

Operator: Ladies and gentlemen, this concludes today’s call. You may now disconnect your lines.