BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP (NYSE: EVA) (the “Partnership” or “we”) today
reported financial and operating results for the first quarter of 2018.

Highlights:

• Declared a quarterly distribution of $0.6250 per unit, a 12.6%
  increase from the distribution paid for the first quarter of 2017
• Reported a net loss of $19.3 million for the first quarter of 2018,
  reflecting $19.5 million of expenses related to the incident at the
  Chesapeake terminal
• Reported an adjusted EBITDA of $17.6 million for the first quarter
  of 2018. Excluding the full impact of the incident at the Chesapeake
  terminal, adjusted EBITDA would have been $21.8 million for the first
  quarter of 2018
• Chesapeake terminal expected to return to full operation by June
  30, 2018; substantially all of the costs associated with the incident
  expected to be recoverable
• Reaffirmed full-year 2018 distribution guidance of at least $2.53
  per unit

“While we continue the process of restoring the Chesapeake terminal from
the recent fire incident and maintaining an extended logistics chain, we
are proud of our operations team for keeping our plants running at rates
that exceeded our performance in the first quarter of last year,” said
John Keppler, Chairman and Chief Executive Officer of Enviva. “With our
stable and growing production performance, our sales forecast remains
consistent with our expectations for the full year and reinforces our
confidence in distributing at least $2.53 per unit for 2018.”

Presentation of Financial Results and Adoption of ASC 606

As of January 1, 2018, the Partnership adopted Financial Accounting
Standards Board Accounting Standards Codification 606 (“ASC 606”), Revenue
from Contracts with Customers, which requires entities to recognize
revenue when control of the promised goods or services is transferred to
customers in an amount that reflects the consideration to which the
entity expects to be entitled to in exchange for those goods or
services. Prior to the adoption of ASC 606, back-to-back transactions to
purchase and sell wood pellets, where title and risk of loss are
immediately transferred to the ultimate purchaser, were recorded in
“other revenue,” net of costs paid to third-party suppliers. Pursuant to
ASC 606, the Partnership now recognizes revenue from such transactions
on a gross basis in “product sales.”

Unless otherwise indicated, the financial results for the three months
ended March 31, 2018 presented in this release are prepared on this
basis.

Chesapeake Incident

As the Partnership has previously reported in a press release and a
special letter to investors on April 9, 2018, a fire (the “Chesapeake
Incident”) occurred on February 27, 2018 at the Partnership’s marine
export terminal at the Port of Chesapeake, Virginia (the “Chesapeake
terminal”). The fire was quickly controlled due to the efforts of onsite
personnel and the Chesapeake terminal’s fire suppression and mitigation
processes, with assistance from local fire departments and other first
responders. The process to restore the Chesapeake terminal is underway
and we expect the terminal to return to full operation by June 30, 2018.

The flexibility and risk mitigation provided by our portfolio of plants
and ports have enabled us to meet every customer delivery required under
our off-take agreements since the incident. We expect to meet all of our
contractual requirements for the balance of the year, although specific
quarterly timing of shipments may be affected. We believe substantially
all of the costs resulting from the Chesapeake Incident will be
recoverable through insurance or our other contractual rights.

In addition to presenting our financial results in accordance with GAAP,
in certain cases we have provided financial results excluding the full
financial impact of the Chesapeake Incident. References herein to the
full financial impact of the Chesapeake Incident include the approximate
costs incurred through March 31, 2018 in connection with emergency
responses, disposal of wood pellet inventory, asset disposal and repair,
as well as associated business continuity expenses, which include
incremental logistics costs and loss of margin on incremental wood
pellet production, offset by insurance recoveries received to date.

First Quarter Financial Results

For the first quarter of 2018, we generated net revenue of $125.8
million, an increase of 2.7 percent, or $3.4 million, from the
corresponding quarter of 2017. Included in net revenue were product
sales of $122.8 million on a volume of 648,000 metric tons (“MT”) of
wood pellets during the first quarter of 2018, as compared to $119.0
million on a volume of 623,000 MT of wood pellets during the
corresponding quarter of 2017. The $3.8 million increase in product
sales was primarily attributable to the adoption of ASC 606.

For the first quarter of 2018, we generated negative gross margin of
$4.5 million, as compared to $16.4 million for the corresponding period
in 2017, a decrease of $20.9 million. The decrease in gross margin was
primarily attributable to $19.6 million of expenses, net of insurance
recoveries received to date, related to the Chesapeake Incident.

Adjusted gross margin per metric ton was $7.35 for the first quarter of
2018. Excluding the full financial impact of the Chesapeake Incident, we
would have earned adjusted gross margin per metric ton of $38.11.
Adjusted gross margin per metric ton was $41.29 for the first quarter of
2017. Adjusting for the impact of ASC 606 for comparison purposes,
adjusted gross margin per metric ton would have been $38.57 for the
first quarter of 2017.

Net loss for the first quarter of 2018 was $19.3 million compared to a
small net loss for the first quarter of 2017, a decrease of $19.3
million primarily due to $19.5 million of expenses, net of insurance
recoveries received to date, related to the Chesapeake Incident.

Adjusted EBITDA for the first quarter of 2018 was $17.6 million, as
compared to $21.3 million for the corresponding quarter of 2017. The
decrease was primarily attributable to $3.9 million of incremental costs
related to temporary storage, handling, and ship loading operations, as
well as lower product sales as the result of modest delays in shipments
due to the Chesapeake Incident. Excluding the full financial impact of
the Chesapeake Incident, adjusted EBITDA would have been $21.8 million
for the first quarter of 2018. We expect substantially all of the
unrecovered costs resulting from the incident will be recoverable in
subsequent quarters.

Distributable cash flow, prior to any distributions attributable to
incentive distribution rights paid to our general partner, was $8.8
million for the quarter. Excluding the full financial impact of the
Chesapeake Incident, distributable cash flow would have been $13.0
million for the quarter.

Distribution

The board of directors of our general partner declared a distribution of
$0.6250 per common and subordinated unit for the first quarter of 2018.
This distribution is 12.6 percent higher than the distribution for the
first quarter of 2017 and represents the eleventh consecutive
distribution increase since the Partnership’s initial public offering of
units representing limited partner interests. The Partnership’s
distributable cash flow, net of amounts attributable to incentive
distribution rights, of $7.5 million for the first quarter of 2018
covers the distribution for the quarter at 0.46 times. The quarterly
distribution will be paid on Tuesday, May 29, 2018, to unitholders of
record as of the close of business on Tuesday, May 15, 2018.

Outlook and Guidance

The Partnership reaffirms full-year 2018 per unit distribution guidance
of at least $2.53, with continued quarter-over-quarter increases
expected throughout the year. As described in a press release and a
special letter to investors on April 9, 2018, despite the impact from
the Chesapeake Incident, the Partnership expects that full-year adjusted
EBITDA and distributable cash flow guidance provided in our February 22,
2018 earnings release remains achievable. However, the actual amounts we
report for any specific quarter and for full-year 2018 will be partially
dependent on the amount of recoveries from insurers and other
responsible parties, the timing and performance of which are not
entirely within the Partnership’s control. In addition, quarterly
distribution coverage ratios may not be comparable to the Partnership’s
previously reported periods or targets, as costs and recoveries
associated with the Chesapeake Incident may not fall within the same
periods. The guidance amounts do not include the impact of any
additional acquisitions by the Partnership from the sponsor’s joint
ventures or third parties. In addition, although deliveries to our
customers are generally ratable over the year, the Partnership’s
quarterly income and cash flow are subject to seasonality and the mix of
customer shipments made, which vary from period to period. As such, the
board of directors of the Partnership’s general partner evaluates the
Partnership’s distribution coverage ratio on an annual basis when
determining the distribution for a quarter.

Market and Contracting Update

Our sales strategy remains to fully contract the production capacity of
the Partnership. Our current capacity is matched with a portfolio of
off-take contracts that has a weighted-average remaining term of 9.0
years and a $6.0 billion product sales backlog as of April 15, 2018.

The Partnership recently further increased and extended its relationship
with Engie Energy Management SCRL (“ENGIE”). In addition to a series of
agreements with ENGIE we previously disclosed, the Partnership recently
entered into a new agreement with ENGIE to sell an incremental 405,000
MT of wood pellets in the aggregate from 2018 to 2020. In total, the
Partnership is now contracted to deliver an aggregate of approximately
1.4 million MT of wood pellets to ENGIE from April 2018 through 2023.
Furthermore, in April, the Partnership executed a firm, long-term
take-or-pay off-take contract with ENGIE to supply 45,000 metric tons
per year (“MTPY”) of wood pellets for fifteen years starting in 2021.

According to independent industry experts, global demand for industrial
wood pellets increased by 15% in 2017 and is expected to increase by a
compound average growth rate of 18% per annum through 2021, driven by
the expected continued growth in the European industrial pellets market
and rapid growth in Asia, as demonstrated by several recent developments:

• Earlier in the year, the European Parliament finalized its report on
  Renewable Energy Directive II (“RED II”) and voted to increase the
  share of renewable energy generation to 35% by 2030. The 2030
  renewable energy target includes a significant role for sustainably
  sourced biomass heat and power projects. The EU Commission, Council,
  and Parliament are expected to finalize the RED II policy framework
  toward the end of 2018.
• In the Netherlands, the government has stated its intent to close the
  country’s largest natural gas field and is encouraging the 200 largest
  users of natural gas to convert to an alternative, preferably
  renewable, source of energy. This is further enhancing interest in
  biomass industrial heat projects, which are eligible for a government
  incentive program that recently allocated a further EUR 6 billion to
  low-carbon energy projects.
• Germany’s new energy minister has stated that coal emissions in
  Germany need to fall by 60% in order to reach the country’s binding
  2030 carbon reduction mandates. As all German nuclear generation is
  expected to be retired by 2022, and given the ongoing need for
  dispatchable heat and electricity, industrial scale biomass is
  expected to become an increasingly attractive option.
• In Japan, the Ministry of Economy, Trade and Industry (“METI”) has
  already approved feed-in tariffs (“FiT”) for approximately 14
  gigawatts (“GWs”) of biomass capacity as of September 2017, far
  exceeding the original target. The Partnership continues to progress
  negotiations with several major Japanese trading houses and utilities
  for long-term supply of wood pellets and also completed its first
  delivery to Mitsui during the first quarter of 2018.
• The U.S. Environmental Protection Agency (EPA) recently issued a
  statement of policy that biomass from managed forests will be treated
  as carbon neutral when used for energy production. This position
  aligns with numerous U.S. state policies and international programs
  such as the European Union Emission Trading Scheme.

Sponsor Activity

The original joint venture (the “First Hancock JV”) between affiliates
of our sponsor and John Hancock Life Insurance Company (U.S.A.) (“John
Hancock”) continues to construct the 600,000 MTPY production plant in
Hamlet, North Carolina (the “Hamlet plant”). The First Hancock JV
expects the Hamlet plant will be operational in the first half of 2019.
Production from the Hamlet plant is expected to supply MGT Teesside
Ltd.’s Tees Renewable Energy Plant, which currently is under
construction in the United Kingdom. Upon first deliveries of production
from the Hamlet plant to the Partnership’s deep-water marine terminal in
Wilmington, North Carolina (the “Wilmington terminal”), the Partnership
will make a second and final payment of $74.0 million to the First
Hancock JV, subject to certain conditions, and enter into a long-term
terminal services agreement with the First Hancock JV to receive, store,
and load wood pellets from the Hamlet plant. The terminal services
agreement between the Partnership and the First Hancock JV is expected
to include minimum throughput obligations from the Hamlet plant.

As previously announced, our sponsor’s new joint venture with John
Hancock (the “Second Hancock JV”) acquired a wood pellet production
plant in Greenwood, South Carolina. The Second Hancock JV has begun
investing incremental capital in the plant and expects to increase its
production capacity to 600,000 MTPY, subject to receiving necessary
permits.

In addition, the Second Hancock JV continues to progress the development
of a deep-water marine terminal in Pascagoula, Mississippi and a wood
pellet production plant in Lucedale, Mississippi to serve growing demand
from Asian and European customers. The Second Hancock JV expects to make
a final investment decision on these facilities in late 2018 or early
2019.

Conference Call

We will host a conference call with executive management related to our
first-quarter 2018 results and a more detailed market update at
10:00 a.m. (Eastern Time) on Thursday, May 3, 2018. Information on how
interested parties may listen to the conference call is available on the
Investor Relations page of our website (www.envivabiomass.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 master limited
partnership that aggregates a natural resource, wood fiber, and
processes it into a transportable form, wood pellets. The Partnership
sells a significant majority of its wood pellets through long-term,
take-or-pay agreements with creditworthy customers in the United Kingdom
and Europe. The Partnership owns and operates six plants with a combined
production capacity of nearly three million metric tons of wood pellets
per year in Virginia, North Carolina, Mississippi, and Florida. In
addition, the Partnership exports wood pellets through its owned marine
terminal assets at the Port of Chesapeake, Virginia, and the Port of
Wilmington, North Carolina and from third-party marine terminals in
Mobile, Alabama and Panama City, Florida.

To learn more about Enviva Partners, LP, please visit our website at www.envivabiomass.com.

Notice

This press release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat 100
percent of the Partnership’s distributions to non-U.S. investors as
being attributable to income that is effectively connected with a United
States trade or business. Accordingly, the Partnership’s distributions
to non-U.S. investors are subject to federal income tax withholding at
the highest applicable effective tax rate.

Non-GAAP Financial Measures

We use adjusted gross margin per metric ton, adjusted EBITDA, and
distributable cash flow to measure our financial performance.

Adjusted Gross Margin per Metric Ton

We define adjusted gross margin as gross margin excluding asset
disposals and 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 revenue-generating activities to our
operating costs for a view of profitability and performance on a per
metric ton basis. Adjusted gross margin per metric ton will primarily 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, income tax expense, early retirement
of debt obligations, non-cash unit compensation expense, asset
impairments and disposals, changes in the fair value of derivative
instruments, and certain items of income or loss that we characterize as
unrepresentative of our ongoing operations, including certain expenses
incurred related to the Chesapeake Incident (consisting of emergency
response expenses, expenses related to the disposal of inventory, and
asset disposal and repair costs, offset by insurance recoveries).
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 maintenance
capital expenditures and interest expense net of amortization of debt
issuance costs, debt premium, and original issue discounts. We use
distributable cash flow as a performance metric to compare the
cash-generating performance of the Partnership from period to period and
to compare the cash-generating performance for specific periods to the
cash distributions (if any) that are expected to be paid to our
unitholders. We do not rely on distributable cash flow as a liquidity
measure.

Adjusted gross margin per metric ton, adjusted EBITDA, and distributable
cash flow are not financial measures presented in accordance with 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 an analytical tool 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 measures, as applicable, for each of
the periods indicated.

				Three Months Ended March 31,
				2018				2017 (Recast)
				(in thousands, except per metric ton)
Reconciliation of gross margin to adjusted gross margin per metric ton:
Metric tons sold				648				623
Gross margin				$ (4,541)				$ 16,368
Depreciation and amortization				9,304				9,358
Adjusted gross margin				$ 4,763				$ 25,726
Adjusted gross margin per metric ton				$ 7.35				$ 41.29

				Three Months Ended March 31,
				2018							2017 (Recast)
				(in thousands)
Reconciliation of adjusted EBITDA and distributable cash flow to net loss:
Net loss				$ (19,335)				$ (45)
Add:
Depreciation and amortization				9,408				9,362
Interest expense				8,645				7,707
Non-cash unit compensation expense				1,343				1,714
Asset impairments and disposals				—				24
Changes in the fair value of derivative instruments				769				—
Chesapeake terminal event				16,590				—
Transaction expenses				153				2,532
Adjusted EBITDA				17,573				21,294
Less:
Interest expense, net of amortization of debt issuance costs, debt premium and original issue discount				8,373				7,326
Maintenance capital expenditures				388				452
Distributable cash flow attributable to Enviva Partners, LP				8,812				13,516
Less: Distributable cash flow attributable to incentive distribution rights				1,264				537
Distributable cash flow attributable to Enviva Partners, LP limited partners				$ 7,548				$ 12,979
Cash distributions declared attributable to Enviva Partners, LP limited partners				$16,469
Distribution coverage ratio				0.46

Cautionary Note Concerning Forward-Looking Statements

Certain
statements and information in this press release, including those
concerning our future results of operations, acquisition opportunities,
and distributions, 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
as and 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 volume and quality of products that we are able to produce
or source and sell, which could be adversely affected by, among other
things, operating or technical difficulties at our plants or deep-water
marine terminals; (ii) the prices at which we are able to sell our
products; (iii) failure of the Partnership’s customers, vendors, and
shipping partners to pay or perform their contractual obligations to the
Partnership; (iv) the creditworthiness of our contract counterparties;
(v) the amount of low-cost wood fiber that we are able to procure and
process, which could be adversely affected by, among other things,
operating or financial difficulties suffered by our suppliers; (vi)
changes in the price and availability of natural gas, coal, or other
sources of energy; (vii) changes in prevailing economic conditions;
(viii) our inability to complete acquisitions, including acquisitions
from our sponsor, or to realize the anticipated benefits of such
acquisitions; (ix) inclement or hazardous environmental hazards,
including extreme precipitation and flooding; (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, the international
shipping industry, or power generators; (xii) changes in the regulatory
treatment of biomass in core and emerging markets; (xiii) our inability
to acquire or maintain necessary permits or rights for our production,
transportation, or terminaling operations; (xiv) changes in price and
availability of transportation; (xv) changes in foreign currency
exchange or interest rates, and the failure of our hedging arrangements
to effectively reduce our exposure to the risks related thereto; (xvi)
risks related to our indebtedness; (xvii) our failure to maintain
effective quality control systems at our production plants and
deep-water marine terminals, which could lead to the rejection of our
products by our customers; (xviii) changes in the quality specifications
for our products that are required by our customers; (xix) labor
disputes; (xx) the effects of the anticipated exit of the United Kingdom
(“Brexit”) from the European Union on our and our customers’ businesses;
(xxi) our ability to borrow funds and access capital markets; (xxii) our
mis-estimation of the amounts and the timing of the costs the
Partnership has incurred and will incur as result of the Chesapeake
Incident; and (xxiii) our ability to recover costs associated with the
Chesapeake Incident fully and on a timely basis, including through
claims under our insurance policies and the exercise of our other
contractual rights; and (xxiv) our inability to return the Chesapeake
terminal to full operations by June 30, 2018.

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 Annual Report on Form 10-K and the Quarterly Reports on
Form 10-Q most recently filed with the SEC. 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 PARTNERS, LP AND SUBSIDIARIES

Condensed
Consolidated Balance Sheets

(In thousands, except number of
units)

				March 31, 2018			December 31, 2017
Assets				(unaudited)
Current assets:
Cash and cash equivalents				$ 5,057			$ 524
Accounts receivable, net of allowance for doubtful accounts of $0 as of March 31, 2018 and December 31, 2017				48,042			79,185
Related-party receivables				3,613			5,412
Inventories				34,306			23,536
Prepaid expenses and other current assets				1,361			1,006
Total current assets				92,379			109,663
Property, plant and equipment, net of accumulated depreciation of $125.8 million as of March 31, 2018 and $117.1 million as of December 31, 2017				553,093			562,330
Intangible assets, net of accumulated amortization of $10.5 million as of March 31, 2018 and $10.3 million as of December 31, 2017				—			109
Goodwill				85,615			85,615
Other long-term assets				2,762			2,394
Total assets				$ 733,849			$ 760,111
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable				$ 4,363			$ 7,554
Related-party payables				19,486			26,398
Accrued and other current liabilities				44,098			29,363
Related-party accrued liabilities				1,211			—
Current portion of interest payable				12,573			5,029
Current portion of long-term debt and capital lease obligations				7,105			6,186
Total current liabilities				88,836			74,530
Long-term debt and capital lease obligations				393,686			394,831
Related-party long-term payable				74,000			74,000
Long-term interest payable				920			890
Other long-term liabilities				7,148			5,491
Total liabilities				564,590			549,742
Commitments and contingencies
Partners’ capital:
Limited partners:
Common unitholders—public (13,179,815 and 13,073,439 units issued and outstanding at March 31, 2018 and December 31, 2017, respectively)				205,969			224,027
Common unitholder—sponsor (1,265,453 and 1,347,161 units issued and outstanding at March 31, 2018 and December 31, 2017, respectively)				12,982			16,050
Subordinated unitholder—sponsor (11,905,138 units issued and outstanding at March 31, 2018 and December 31, 2017)				85,271			101,901
General Partner (no outstanding units)				(130,596)			(128,569)
Accumulated other comprehensive loss				(4,367)			(3,040)
Total Enviva Partners, LP partners’ capital				169,259			210,369
Total liabilities and partners’ capital				$ 733,849			$ 760,111

ENVIVA PARTNERS, LP AND SUBSIDIARIES

Condensed
Consolidated Statements of Operations

(In thousands, except
per unit amounts)

(Unaudited)

				Three Months Ended March 31,
				2018			2017 (Recast)
Product sales				$ 122,799			$ 119,047
Other revenue				3,002			3,396
Net revenue				125,801			122,443
Cost of goods sold, excluding depreciation and amortization				121,038			96,717
Depreciation and amortization				9,304			9,358
Total cost of goods sold				130,342			106,075
Gross margin				(4,541)			16,368
General and administrative expenses				6,804			8,763
(Loss) income from operations				(11,345)			7,605
Other income (expense):
Interest expense				(8,645)			(7,707)
Other income				655			57
Total other expense, net				(7,990)			(7,650)
Net loss				(19,335)			(45)
Less net loss attributable to noncontrolling partners’ interests				—			1,319
Net (loss) income attributable to Enviva Partners, LP				$ (19,335)			$ 1,274
Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner				—			(1,261)
Enviva Partners, LP partners’ interest in net (loss) income				$ (19,335)			$ 2,535
Net (loss) income per limited partner common unit:
Basic				$ (0.78)			$ 0.08
Diluted				$ (0.78)			$ 0.07
Net (loss) income per limited partner subordinated unit:
Basic				$ (0.78)			$ 0.08
Diluted				$ (0.78)			$ 0.08
Weighted-average number of limited partner units outstanding:
Common — basic				14,438			14,380
Common — diluted				14,438			15,228
Subordinated — basic and diluted				11,905			11,905

ENVIVA PARTNERS, LP AND SUBSIDIARIES

Condensed
Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

				Three Months Ended March 31,
				2018			2017 (Recast)
Cash flows from operating activities:
Net loss				$ (19,335)			$ (45)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization				9,408			9,362
Amortization of debt issuance costs, debt premium and original issue discount				272			381
Impairment of inventory				10,383			—
Insurance recoveries				(4,891)			—
General and administrative expense incurred by the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down
				—			438
Loss on disposal of assets				1,130			24
Unit-based compensation				1,343			1,714
Fair value changes in derivatives				525			(759)
Unrealized loss on foreign currency transactions				(69)			—
Change in operating assets and liabilities:
Accounts receivable, net				36,123			28,192
Related-party receivables				1,800			(386)
Prepaid expenses and other assets				(50)			(682)
Assets held for sale				—			(345)
Inventories				(16,509)			(1,254)
Other long-term assets				—			21
Derivatives				(601)			—
Accounts payable, accrued liabilities and other current liabilities				8,677			(3,383)
Related-party payables				(6,501)			(2,580)
Accrued interest				7,574			6,421
Deferred revenue				—			143
Other long-term liabilities				37			382
Net cash provided by operating activities				29,316			37,644
Cash flows from investing activities:
Purchases of property, plant and equipment				(1,999)			(9,344)
Net cash used in investing activities				(1,999)			(9,344)
Cash flows from financing activities:
Principal payments on debt and capital lease obligations				(1,172)			(17,158)
Cash paid related to debt issuance costs				—			(209)
Proceeds from common unit issuance under At-the-Market Offering Program, net				241			1,715
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder				17,847)			(14,829)
Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting				(2,341)			—
Payment to Provider for tax withholding associated with Long-Term Incentive Plan vesting				(1,665)			—
Proceeds from debt issuance				—			10,000
Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down				—			1,651
Proceeds from contributions from the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down
				—			2,915
Net cash used in financing activities				(22,784)			(15,915)
Net increase in cash, cash equivalents and restricted cash				4,533			12,385
Cash, cash equivalents and restricted cash, beginning of year				524			466
Cash, cash equivalents and restricted cash, end of year				$ 5,057			$ 12,851

ENVIVA PARTNERS, LP AND SUBSIDIARIES

Condensed
Consolidated Statements of Cash Flows (continued)

(In
thousands)

(Unaudited)

				Three Months Ended March 31,
				2018			2017 (Recast)
Non-cash investing and financing activities:
The Partnership acquired property, plant and equipment in non-cash transactions as follows:
Property, plant and equipment acquired included in accounts payable and accrued liabilities				$ 1,587			$ 13,917
Property, plant and equipment acquired under capital leases				674			1,124
Property, plant and equipment transferred from inventories				2			260
Distributions included in liabilities				1,352			509
Depreciation capitalized to inventories				1,037			86
Supplemental information:
Interest paid				$ 795			$ 854