BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP (NYSE: EVA) (the “Partnership”) today reported
financial and operating results for the first quarter of 2015. The
Partnership closed its initial public offering (the “IPO”) on May 4,
2015. Included in this earnings release are the financial and operating
results of the Partnership’s predecessor, Enviva, LP (the “Predecessor”).

Summary Financial Information

		Three Months Ended March 31, 2015							Three Months Ended March 31, 2014
		Predecessor				Enviva Partners, LP Pro Forma (2)			Predecessor				Enviva Partners, LP Pro Forma (2)
		(unaudited)
		(in thousands)
Revenue		$	72,151			$	114,313		$	66,498			$	104,772
Adjusted gross margin		$	7,857			$	19,084		$	5,845			$	15,109
Income (loss) from operations		$	(111	)		$	8,321		$	(1,060	)		$	5,042
Net income (loss)		$	(2,024	)		$	5,600		$	(3,357	)		$	(4,804	)
Adjusted EBITDA (1)						$	16,058						$	12,340
Distributable cash flow (1)						$	12,488						$	7,439
Tons sold (metric tons)							583							523

(1)		See “Non-GAAP Financial Measures” below.
(2)		Applicable pro forma amounts presented in the table above assume the Partnership’s initial public offering and related formation transactions, including borrowings under the Partnership’s new $199.5 million senior secured credit facilities, had closed on January 1, 2014.

“We are pleased with the solid performance demonstrated by the
Partnership in the first quarter of 2015,” stated John Keppler, Chairman
and Chief Executive Officer. “Our results during the quarter demonstrate
the stability of cash flows generated by our geographically diversified
base of operating assets and reflect our ability to deliver strong
financial results even amid slightly higher than expected seasonality.”

“On a pro forma basis, we generated revenues of $114.3 million. We were
able to increase pro forma revenues at a high, single-digit rate of
growth when compared to the first quarter of 2014, made possible by
improved production levels. Total wood pellet sales in the first quarter
of 2015 of 583 thousand metric tons were up approximately 10 percent
over the same period in 2014. Adjusted EBITDA improved in the first
quarter of 2015 compared to the corresponding period in 2014 due to
increased revenue, a stable fixed-cost position, and a favorable mix of
customer off-take and marine shipping contract pricing.”

Pro forma distributable cash flow was $12.5 million for the first
quarter of 2015. As detailed in the Partnership’s prospectus, beginning
with the quarter ending June 30, 2015, the Partnership expects to make a
minimum quarterly distribution of $0.4125 per common unit and
subordinated unit, pro-rated for the period that the Partnership was
publicly traded. Based on the total of 23,810,276 common and
subordinated units issued and outstanding as of the closing of the IPO,
distribution coverage on the minimum quarterly distribution (without
pro-ration) would have exceeded our target of 1.15 times for the first
quarter of 2015 on a pro forma basis.

“Pro forma distributable cash flow also was very strong,” said Mr.
Keppler. “For the quarter, maintenance capital expenses were in line
with expectations and the tail of the construction capital expenditures
we saw in the prior Q1 is now well behind us.”

Liquidity and Financial Position

The formation and capital transactions described below, including the
contribution of cash to the Partnership by Enviva Holdings, LP (the
“Sponsor”) with Enviva Pellets Cottondale, LLC, had the net effect of
increasing the Predecessor’s cash on hand at the end of the first
quarter of 2015 by $62.8 million. Total cash on hand is available for
general partnership purposes, including potential acquisitions.

2015 Outlook and Guidance

The Partnership’s net income for the year ending December 31, 2015 (pro
forma for the formation and capital transactions described below) is
expected to be in the range of $17.0 million to $21.0 million.

The Partnership expects adjusted EBITDA for the year ending December 31,
2015 to be in the range of $61.0 million to $65.0 million, maintenance
capital expenditures to be in the range of $3.0 million to $3.5 million,
and cash interest expense to be in the range of $9.5 million to
$10.0 million (on a pro forma basis had the new Senior Secured Credit
Facilities (as defined below) been outstanding for the full year). As
mentioned above, the Partnership anticipates that a pro-rated
distribution for the second quarter will be paid in August 2015 in
respect of the period from the IPO closing date of May 4, 2015 through
June 30, 2015.

Sponsor Activity

Our Sponsor currently controls a fully operational pellet manufacturing
facility in Southampton County, VA (the “Southampton plant”), from which
the Partnership currently purchases pellets at its Port of Chesapeake
terminal on a fixed-price basis pursuant to a biomass purchase and sale
agreement. The Partnership expects to be able to acquire this plant,
accompanied by a ten-year, 500,000 metric tons per year (“MTPY”)
off-take agreement, in late 2015.

Our Sponsor has informed us that it is on schedule with the construction
of another approximately 500,000 MTPY production plant in Sampson
County, NC and a deep-water marine terminal in Wilmington, NC with wood
pellet throughput capacity of 2,000,000 MTPY. Both facilities are
expected to begin operations in the first quarter of 2016 and the
production plant is expected to ramp up to its full production capacity
over the ensuing six months. The Partnership expects to have the
opportunity to acquire the production plant, together with a ten-year,
420,000 MTPY off-take agreement, in late 2016 and the port in 2017.

IRS Proposed Regulations on Qualifying Income

On May 5, 2015, the Internal Revenue Service (the “IRS”) and U.S.
Department of Treasury (“Treasury”) issued proposed regulations under
Section 7704(d)(1)(E) of the Internal Revenue Code of 1986, as amended
(the “Code”), addressing the scope of qualifying income from the
processing, refining, and transportation of minerals or natural
resources (the “Proposed Regulations”). Section 7704 of the Code
provides that a publicly traded partnership is treated as a corporation
unless 90 percent or more of its income meets the “qualifying income
requirement.” The Predecessor requested and obtained a favorable private
letter ruling from the IRS in 2011 to the effect that, based on the
facts presented in the private letter ruling request, its income from
processing timber feedstocks into pellets and transporting, storing,
marketing, and distributing such timber feedstocks and wood pellets
constitutes “qualifying income” within the meaning of Section 7704 of
the Code. The Proposed Regulations explicitly reaffirm that the
Partnership’s timber feedstock and wood pellet activities generate
qualifying income.

Formation and Capital Transactions

On April 9, 2015, in connection with the closing of the Partnership’s
new $199.5 million senior secured credit facilities (the “Senior Secured
Credit Facilities”), the Partnership, the Predecessor, and the Sponsor
executed a series of transactions that were accounted for as common
control transactions (referred to as the “Reorganization”).

Under a contribution agreement, the Predecessor conveyed 100 percent of
the issued and outstanding limited liability company interest in Enviva
Pellets Southampton, LLC, which owns the Southampton plant, to a joint
venture operated by the Sponsor (the “Hancock JV”).

Under a separate contribution agreement by and among the Sponsor and
affiliates of the Sponsor, the Predecessor, and the Partnership, the
parties executed the following transactions:

• the Predecessor distributed cash and cash equivalents of $1.7 million
  and accounts receivable of $2.4 million to the Sponsor;
• the Sponsor contributed 100 percent of its limited liability interest
  in Enviva Pellets Cottondale, LLC, which owns a wood pellet production
  plant in Cottondale, Florida, to the Partnership; and
• the Sponsor contributed its interest in the Predecessor and Enviva GP,
  LLC to the Partnership.

On April 9, 2015, the Partnership entered into a biomass purchase and
sale agreement, pursuant to which the Hancock JV sells to the
Partnership wood pellets sourced from the production at the Southampton
plant on a fixed-price basis. The wood pellets purchased from the
Hancock JV are sold to the Partnership’s customers under existing
off-take contracts.

The Partnership entered into the credit agreement providing for the
Senior Secured Credit Facilities and used $82.2 million of the proceeds
to repay all outstanding indebtedness under the Predecessor’s
pre-existing senior secured credit facility and related accrued interest.

As a result of the Reorganization, the Partnership is the owner of the
Predecessor, Enviva GP, LLC, and Enviva Pellets Cottondale, LLC.

On May 4, 2015, the Partnership completed the IPO. The IPO’s net
proceeds of approximately $215.1 million, after deducting the
underwriting discount, structuring fee, and estimated offering expenses,
were used to (i) repay existing subsidiary debt in the amount of
approximately $83.0 million and (ii) distribute approximately
$86.7 million to the Sponsor related to its contribution of assets to
the Partnership in connection with the IPO, with the Partnership
retaining $45.4 million for general partnership purposes.

At the closing of the IPO on May 4, 2015, the consolidated financial
statements of the Predecessor became the consolidated financial
statements of the Partnership.

Conference Call

The Partnership will host a conference call with executive management
related to its first quarter 2015 results at 10:00 a.m. (Eastern Time)
on Thursday, June 4, 2015. Information on how interested parties may
listen to the conference call is available in the Investor Relations
section of our website (www.envivapartners.com).
A replay of the conference call will be available on our website after
the live call concludes.

About Enviva Partners, LP

Enviva Partners, LP (NYSE: EVA) is a publicly traded, growth-oriented
master limited partnership. Enviva Partners is the world’s largest
supplier by production capacity of utility-grade wood pellets to major
power generators serving customers in Europe, Asia, and the United
States. Enviva Partners owns and operates midstream fuel processing and
logistics assets, including five wood pellet production plants in the
Southeastern U.S. that have a combined wood pellet production capacity
of approximately 1.7 million metric tons per year and a dry-bulk,
deep-water marine terminal at the Port of Chesapeake, VA. In addition to
exports from this Mid-Atlantic terminal, Enviva Partners maintains
export terminal operations in Mobile, Alabama and Panama City, Florida.
To learn more about Enviva Partners, please visit our website at www.envivapartners.com.

Non-GAAP Financial Measures

We view adjusted gross margin per metric ton, adjusted EBITDA, and
distributable cash flow as important indicators of performance.

Adjusted Gross Margin per Metric Ton

We define adjusted gross margin per metric ton as gross margin per
metric ton excluding depreciation and amortization included in cost of
goods sold. We believe adjusted gross margin per metric ton is a
meaningful measure because it compares our off-take pricing to our
operating costs for a view of profitability and performance on a per
metric ton basis. Adjusted gross margin per metric ton primarily will be
affected by our ability to meet targeted production volumes and to
control direct and indirect costs associated with procurement and
delivery of wood fiber to our production plants and the production and
distribution of wood pellets.

Adjusted EBITDA

We define adjusted EBITDA as net income or loss, excluding depreciation
and amortization, interest expense, taxes, early retirement of debt
obligation, non-cash equity compensation, and asset impairments and
disposals. Adjusted EBITDA is a supplemental measure used by our
management and other users of our financial statements, such as
investors, commercial banks, and research analysts, to assess the
financial performance of our assets without regard to financing methods
or capital structure.

Distributable Cash Flow

We define distributable cash flow as adjusted EBITDA less cash paid for
interest and maintenance and expansion capital expenditures.
Distributable cash flow is used as a supplemental measure by our
management and other users of our financial statements as it provides
important information regarding the relationship between our financial
operating performance and our ability to make cash distributions.

Adjusted gross margin per metric ton, adjusted EBITDA, and distributable
cash flow are not financial measures presented in accordance with
generally accepted accounting principles (“GAAP”). We believe that the
presentation of these non-GAAP financial measures provides useful
information to investors in assessing our financial condition and
results of operations. Our non-GAAP financial measures should not be
considered as alternatives to the most directly comparable GAAP
financial measures. Each of these non-GAAP financial measures has
important limitations as analytical tools because they exclude some, but
not all, items that affect the most directly comparable GAAP financial
measures. You should not consider adjusted gross margin per metric ton,
adjusted EBITDA, or distributable cash flow in isolation or as
substitutes for analysis of our results as reported under GAAP. Our
definitions of these non-GAAP financial measures may not be comparable
to similarly titled measures of other companies, thereby diminishing
their utility.

The following tables present a reconciliation of adjusted gross margin
per metric ton, adjusted EBITDA, and distributable cash flow to the most
directly comparable GAAP financial measure, as applicable, for each of
the periods indicated.

		Enviva Partners, LP Pro Forma
		Three Months Ended March 31,
		2015				2014
		(unaudited)
		(in thousands, except per metric ton)
Reconciliation of gross margin to adjusted gross margin per metric ton:
Metric tons sold			583				523
Gross margin		$	12,078			$	7,982
Depreciation and amortization (1)			7,006				7,127
Adjusted gross margin		$	19,084			$	15,109
Adjusted gross margin per metric ton		$	32.73			$	28.89

(1) Excludes depreciation of office furniture and equipment. Such amount
is included in general and administrative expenses.

		Enviva Partners, LP Pro Forma
		Three Months Ended March 31,
		2015			2014
		(unaudited)
		(in thousands)
Reconciliation of distributable cash flow and adjusted EBITDA to net income (loss):
Net income (loss)		$	5,600		$	(4,804	)
Add:
Depreciation and amortization			7,017			7,135
Interest expense			2,727			2,736
Early retirement of debt obligation			—			7,248
Purchase accounting adjustment to inventory			697			—
Non-cash equity compensation			—			1
Income tax expense			4			4
Asset impairments and disposals			13			20
Adjusted EBITDA		$	16,058		$	12,340
Less:
Cash interest expense			2,349			2,392
Expansion capital expenditures			496			2,509
Maintenance capital expenditures			725			—
Distributable cash flow		$	12,488		$	7,439

The following table provides a reconciliation of the estimated range of
adjusted EBITDA to the estimated range of net income, in each case for
the year ending December 31, 2015 (in millions):

	Year Ending December 31, 2015
Estimated net income	$	17.0-21.0
Add:
Depreciation and amortization		26.1
Interest expense		11.0
Early retirement of debt obligation		4.7
Purchase accounting adjustment to inventory		0.7
Non-cash equity compensation		1.3
Income tax expense		0.1
Asset impairments and disposals		0.1
Estimated adjusted EBITDA	$	61.0-65.0

Pro Forma Statements of Operations

Applicable pro forma amounts presented in the table below combine the
unaudited historical results of the Predecessor, the results of the
Partnership’s initial public offering, and the related formation and
capital transactions described above, including borrowings under the
Partnership’s new $199.5 million Senior Secured Credit Facilities, as if
such transactions had closed on January 1, 2014.

		Three Months Ended March 31, 2015												Three Months Ended March 31, 2014
		Predecessor				Adjustments				Enviva Partners, LP Pro Forma				Predecessor				Adjustments				Enviva Partners, LP Pro Forma
		(unaudited)
		(in thousands)
Product sales		$	70,983			$	42,598			$	113,581			$	65,818			$	38,117			$	103,935
Other revenue			1,168				(436	)			732				680				157				837
Net revenue			72,151				42,162				114,313				66,498				38,274				104,772
Costs of goods sold, excluding depreciation and amortization			64,294				30,935				95,229				60,653				29,010				89,663
Depreciation and amortization			4,658				2,348				7,006				4,846				2,281				7,127
Total cost of goods sold			68,952				33,283				102,235				65,499				31,291				96,790
Gross margin			3,199				8,879				12,078				999				6,983				7,982
General and administrative expenses			3,310				447				3,757				2,059				881				2,940
(Loss) income from operations			(111	)			8,432				8,321				(1,060	)			6,102				5,042
Interest expense			(1,916	)			(811	)			(2,727	)			(2,228	)			(508	)			(2,736	)
Early retirement of debt obligation			—				—				—				(73	)			(7,175	)			(7,248	)
Other income			3				3				6				4				134				138
Net income (loss)		$	(2,024	)		$	7,624			$	5,600			$	(3,357	)		$	(1,447	)		$	(4,804	)

Cautionary Note Concerning Forward-Looking Statements

Certain statements and information in this press release, including
those concerning expected results for the year ending December 31, 2015,
may constitute “forward-looking statements.” The words “believe,”
“expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,”
“could,” or other similar expressions are intended to identify
forward-looking statements, which are generally not historical in
nature. These forward-looking statements are based on the Partnership’s
current expectations and beliefs concerning future developments and
their potential effect on the Partnership. Although management believes
that these forward-looking statements are reasonable when made, there
can be no assurance that future developments affecting the Partnership
will be those that it anticipates. The forward-looking statements
involve significant risks and uncertainties (some of which are beyond
the Partnership’s control) and assumptions that could cause actual
results to differ materially from the Partnership’s historical
experience and its present expectations or projections. Important
factors that could cause actual results to differ materially from
forward-looking statements include, but are not limited to: (i) the
amount of products that the Partnership is able to produce, which could
be adversely affected by, among other things, operating difficulties;
(ii) the volume of products that the Partnership is able to sell;
(iii) the price at which the Partnership is able to sell products;
(iv) changes in the price and availability of natural gas, coal, or
other sources of energy; (v) changes in prevailing economic conditions;
(vi) the Partnership’s ability to complete acquisitions, including
acquisitions from its Sponsor; (vii) unanticipated ground, grade, or
water conditions; (viii) inclement or hazardous weather conditions,
including extreme precipitation, temperatures, and flooding;
(ix) environmental hazards; (x) fires, explosions, or other accidents;
(xi) changes in domestic and foreign laws and regulations (or the
interpretation thereof) related to renewable or low-carbon energy, the
forestry products industry, or power generators; (xii) inability to
acquire or maintain necessary permits; (xiii) inability to obtain
necessary production equipment or replacement parts; (xiv) technical
difficulties or failures; (xv) labor disputes; (xvi) late delivery of
raw materials; (xvii) inability of the Partnership’s customers to take
delivery or their rejection of a delivery of products; (xviii) changes
in the price and availability of transportation; and (xix) the
Partnership’s ability to borrow funds and access capital markets.

For additional information regarding known material factors that could
cause the Partnership’s actual results to differ from projected results,
please read its filings with the Securities and Exchange Commission,
including the prospectus filed on April 29, 2015 and the Quarterly
Report on Form 10-Q for the quarter ended March 31, 2015. Readers are
cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date thereof. The Partnership undertakes no
obligation to publicly update or revise any forward-looking statements
after the date they are made, whether as a result of new information,
future events, or otherwise.

Financial Statements

ENVIVA, LP AND SUBSIDIARIES (PREDECESSOR)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
		March 31, 2015			December 31, 2014
Assets		(unaudited)			(audited)
Current assets:
Cash and cash equivalents		$	5,646		$	592
Accounts receivable, net			24,560			21,998
Inventories			18,633			18,064
Restricted cash			7,640			11,640
Deferred issuance costs			4,952			4,052
Prepaid expenses and other current assets			1,470			1,734
Total current assets			62,901			58,080
Property, plant and equipment, net			312,276			316,259
Intangible assets, net			695			722
Goodwill			4,879			4,879
Debt issuance costs, net			3,247			3,594
Other long-term assets			715			955
Total assets		$	384,713		$	384,489
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable		$	7,257		$	4,013
Related party payable			5,639			2,354
Accrued liabilities			8,864			8,159
Deferred revenue			79			60
Current portion of interest payable			15			73
Current portion of long-term debt and capital lease obligations			9,514			10,237
Total current liabilities			31,368			24,896
Long-term debt and capital lease obligations			77,960			83,838
Interest payable			616			572
Interest rate swap derivatives			124			101
Other long-term liabilities			548			554
Total liabilities			110,616			109,961
Commitments and contingencies
Partners’ capital:
Capital attributable to Enviva Holdings, LP			271,072			271,495
Noncontrolling partners’ interests			3,025			3,033
Total partners’ capital			274,097			274,528
Total liabilities and partners’ capital		$	384,713		$	384,489

ENVIVA, LP AND SUBSIDIARIES (PREDECESSOR)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
		Three Months Ended March 31,
		2015				2014
Product sales		$	70,983			$	65,818
Other revenue			1,168				680
Net revenue			72,151				66,498
Cost of goods sold, excluding depreciation and amortization			64,294				60,653
Depreciation and amortization			4,658				4,846
Total cost of goods sold			68,952				65,499
Gross margin			3,199				999
General and administrative expenses			3,310				2,059
Loss from operations			(111	)			(1,060	)
Other income (expense):
Interest expense			(1,916	)			(2,228	)
Other income (expense)			3				(69	)
Total other expense, net			(1,913	)			(2,297	)
Net loss			(2,024	)			(3,357	)
Less net loss attributable to noncontrolling partners’ interests			8				21
Net loss attributable to Enviva, LP		$	(2,016	)		$	(3,336	)

ENVIVA, LP AND SUBSIDIARIES (PREDECESSOR)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
		Three Months Ended March 31,
		2015				2014
Cash flows from operating activities:
Net loss		$	(2,024	)		$	(3,357	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			4,669				4,854
Amortization of debt issuance costs and original issue discount			505				505
General and administrative expense incurred by Enviva Holdings, LP			475				—
Early retirement of debt obligation			—				73
Loss (gain) on disposals of property, plant and equipment			18				(8	)
Share-based compensation			—				1
Change in fair value of interest rate swap derivatives			23				(11	)
Change in operating assets and liabilities:
Accounts receivable			(2,563	)			(6,880	)
Prepaid expenses and other assets			483				1,889
Inventories			(460	)			3,364
Other long-term assets			240				121
Accounts payable and accrued liabilities			7,689				1,243
Accrued interest			(14	)			45
Deferred revenue			19				(218	)
Other current liabilities			25				—
Other long-term liabilities			—				258
Net cash provided by operating activities			9,085				1,879
Cash flows from investing activities:
Purchases of property, plant and equipment			(1,272	)			(8,278	)
Restricted cash			—				(49	)
Proceeds from the sale of equipment			—				25
Net cash used in investing activities			(1,272	)			(8,302	)
Cash flows from financing activities:
Principal payments on debt and capital lease obligations			(12,759	)			(595	)
Cash restricted for debt service			4,000				(2,300	)
Proceeds from debt issuance			6,000				15,000
Net cash (used in) provided by financing activities			(2,759	)			12,105
Net increase in cash and cash equivalents			5,054				5,682
Cash and cash equivalents, beginning of period			592				3,558
Cash and cash equivalents, end of period		$	5,646			$	9,240
Non-cash investing and financing activities:
The Company acquired property, plant and equipment in non-cash transactions as follows:
Property, plant and equipment acquired included in accounts payable and accrued liabilities		$	351			$	4,301
Property, plant and equipment acquired under capital leases			—				290
Financed insurance			—				1,711
Depreciation capitalized to inventories			109				163
Early retirement of debt obligation:
Deposit applied to principal outstanding under promissory note			—				391
Deposit applied to accrued interest under promissory note			—				154
Non-cash capital contributions from Enviva Holdings, LP			1,118				543
Supplemental information:
Interest paid		$	1,401			$	1,688