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

Highlights:

• Reported net income of $13.4 million and adjusted EBITDA of $30.2
  million for the third quarter of 2018
• Extended maturity of credit facility by five years and increased
  revolver capacity to $350 million
• Reaffirmed full-year 2018 distribution guidance of at least $2.53
  per unit
• Provided full-year 2019 guidance for net income of $31.3 million to
  $41.3 million and adjusted EBITDA of $125.0 million to $135.0 million,
  not including the impact of any additional acquisitions from the
  sponsor’s joint ventures or third parties
• Announced accretive investment in 400,000 MTPY expansion of
  production capacity at existing plants expected to result in
  approximately $30.0 million incremental adjusted EBITDA commencing 2020

“We built a portfolio of production plants and export terminals capable
of withstanding unexpected and catastrophic events,” said John Keppler,
Chairman and Chief Executive Officer of Enviva. “Despite the compounding
effects of the Chesapeake fire and the direct hits we took from both
Hurricanes Florence and Michael, our team delivered a strong quarter and
we continue to believe our 2018 guidance remains achievable assuming the
timely receipt of the recoveries we expect from our insurers and other
parties. With these events behind us, our platform of long-term
contracted assets is well positioned for a very strong 2019 and beyond.”

Third Quarter Financial Results

Net income for the third quarter of 2018 was $13.4 million compared to
net income of $5.0 million for the third quarter of 2017, an increase of
$8.3 million.

Adjusted EBITDA for the third quarter of 2018 was $30.2 million, as
compared to $25.8 million for the corresponding quarter of 2017. The
increase was primarily attributable to net insurance recoveries related
to business continuity costs associated with the Chesapeake Incident.
Excluding the financial impact of the Chesapeake Incident, adjusted
EBITDA would have been $24.8 million for the third quarter of 2018.

Distributable cash flow, prior to any distributions attributable to
incentive distribution rights paid to our general partner, was $20.7
million for the third quarter of 2018 as compared to $17.7 million for
the corresponding quarter of 2017.

For the third quarter of 2018, we generated net revenue of $144.1
million, an increase of 9.0 percent, or $11.9 million, from the
corresponding quarter of 2017. Included in net revenue were product
sales of $142.5 million on 762,000 metric tons (“MT”) of wood pellets
sold during the third quarter of 2018, as compared to $125.4 million on
668,000 MT of wood pellets sold during the corresponding quarter of
2017. The $17.1 million increase in product sales was primarily
attributable to a 14 percent increase in sales volumes, partially offset
by a decrease in pricing due primarily to customer contract mix. Other
revenue was $1.6 million for the third quarter of 2018, as compared to
$6.8 million for the corresponding quarter of 2017. The decrease is
primarily due to higher other revenue for the third quarter of 2017
consisting of $2.2 million in fees received from customers requesting
scheduling accommodations and $3.2 million related to purchase and sale
transactions.

For the third quarter of 2018, we generated gross margin of $30.1
million, as compared $20.4 million for the corresponding period in 2017.
The higher gross margin was primarily the result of insurance
recoveries, net of expenses incurred, related to the Chesapeake
Incident, as well as an increase in sales volume, offset by lower other
revenue, lower pricing driven by customer contract mix partially offset
by changes in unrealized derivative instruments, and higher costs,
including the costs of wood pellets sourced from third- and
related-party wood pellet producers.

Adjusted gross margin per metric ton was $55.64 for the third quarter of
2018. Excluding the financial impact of the Chesapeake Incident, we
would have earned adjusted gross margin per metric ton of $39.70.
Adjusted gross margin per metric ton was $46.90 for the third quarter of
2017. Adjusting for the impact of ASC 606 for comparison purposes,
adjusted gross margin per metric ton would have been $43.33 for the
third quarter of 2017.

As of September 30, 2018, the Partnership had $0.9 million of cash on
hand and $11.5 million of borrowings outstanding under its senior
secured credit facility, primarily due to the timing mismatch of the
incurrence of costs associated with the Chesapeake Incident and their
recovery through our insurance policies and other contractual rights.

Distribution

As announced on October 31, 2018, the board of directors of our general
partner (the “Board”) declared a distribution of $0.635 per common unit
for the third quarter of 2018. This distribution represents the
thirteenth 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 $19.2 million for the third quarter
of 2018 covers the distribution for the quarter at 1.14 times. The
quarterly distribution will be paid on Thursday, November 29, 2018, to
unitholders of record as of the close of business on Thursday,
November 15, 2018.

Financing Activity

On October 18, 2018, the Partnership amended and restated its prior
senior secured credit facility (as amended, the “Amended & Restated
Credit Facility”) to extend the maturity to October 2023 from April
2020, increase the revolving credit facility to $350 million from $100
million, reduce the applicable interest rate margin, and include other
improved terms. The applicable interest rate margin under the Amended &
Restated Credit Facility is determined according to a total leverage
ratio-based pricing grid, which for a Eurodollar revolving credit
borrowing is 2.50% based on the Partnership’s current level of leverage
as compared to 4.25% under the prior credit facility.

A portion of the proceeds of the initial borrowings under the Amended &
Restated Credit Facility were used to repay $41.2 million of outstanding
term loans under the prior credit facility. Future borrowings under the
Amended & Restated Credit Facility will be used to support the
Partnership’s strategic growth initiatives and drop-down acquisitions
and also will be available for general partnership purposes.

“The new revolver not only reduces our cost of capital, but also
provides significant flexibility to initially finance drop-downs and
expansions before raising long-term capital through further issuances of
equity and bonds,” said Shai Even, Executive Vice President and Chief
Financial Officer of Enviva. “We expect to maintain a balanced capital
structure consistent with our conservative financial policies and
leverage as we continue to finance our growth.”

Outlook and Guidance

Consistent with prior guidance, the Partnership expects to distribute at
least $2.53 per limited partner unit for full-year 2018. Although the
Partnership’s shipping schedule and production and logistics costs were
impacted by Hurricanes Florence and Michael (the “Hurricanes”), which
compounded the financial and operational impact from the previously
reported fire incident at the Partnership’s marine export terminal in
Chesapeake, Virginia (the “Chesapeake Incident”), the Partnership
continues to believe that the full-year adjusted EBITDA and
distributable cash flow guidance ranges provided in our February 22,
2018 earnings release remain achievable, subject to the amount and
timing of recoveries from insurers and other responsible parties
associated with the Chesapeake Incident and the Hurricanes. Absent any
further recoveries associated with the Chesapeake Incident and the
Hurricanes that would benefit 2018 adjusted EBITDA, the Partnership
expects full-year 2018 net income to be approximately $11 million and
adjusted EBITDA to be approximately $100 million. However, the
Partnership has $26.3 million of outstanding claims related to the
Chesapeake Incident and the Hurricanes that would benefit 2018 adjusted
EBITDA, although the total amount the Partnership will receive in
respect of these claims, and the timing of payment thereon, are not
entirely within the Partnership’s control.

For full-year 2019, the Partnership expects net income to be in the
range of $31.3 million to $41.3 million and adjusted EBITDA to be in the
range of $125.0 million to $135.0 million. The 2019 guidance amounts
provided above do not include the impact of any additional acquisitions
by the Partnership from the sponsor, its joint ventures, or third
parties, any benefit of throughput at the Partnership’s deep-water
marine terminal in Wilmington, North Carolina from the Hamlet plant, or
any recoveries related to the Chesapeake Incident or the Hurricanes. 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.

Additionally, the Partnership expects to increase the aggregate
production capacity of its wood pellet production plants in Northampton,
North Carolina and Southampton, Virginia by approximately 400,000 metric
tons per year (“MTPY”) (the “Mid-Atlantic Expansions”), subject to
receiving the necessary permits. The Partnership expects to invest
approximately $130 million in additional production assets and emissions
control equipment, subject to completion of detailed engineering. The
ability to expand capacity and improve the energy density of our pellets
through increased pine utilization at two of our Mid-Atlantic production
plants will create incremental, high-margin pellet sales opportunities
into our long-term contracted position with our customers, and we expect
the Mid-Atlantic Expansions to generate in excess of $30.0 million¹
in incremental adjusted EBITDA annually. The Partnership expects
completion of construction in early 2020 with startup shortly thereafter.

“In addition to drop-down transactions, a key pillar of our growth
strategy is increasing capacity and profitability within our existing
production plants,” said John Keppler. “We’re particularly excited with
the Mid-Atlantic expansions, as we have the opportunity directly at the
Partnership to add substantial capacity at a much higher return on
investment than we could achieve through an acquisition.”

Market and Contracting Update

Our sales strategy continues to be to fully contract the production
capacity of the Partnership with a diversified customer base. The
Partnership’s current production capacity is matched with a portfolio of
firm off-take contracts that has a weighted-average remaining term of
9.4 years and a $7.4 billion product sales backlog as of November 1,
2018. Assuming all volumes under the firm contracts held by our sponsor
and its joint ventures were included, our weighted-average remaining
term and product sales backlog would increase to 11.5 years and $12.1
billion, respectively. The Partnership expects to have the opportunity
to acquire these contracts from our sponsor and its joint ventures.

As the Partnership and its sponsor have previously announced, all
conditions precedent to the effectiveness of the Partnership’s 15-year,
180,000 MTPY take-or-pay off-take contract with Marubeni Corporation and
the sponsor’s 15-year, 250,000 MTPY contract with Sumitomo Corporation
have been satisfied. In addition, all conditions precedent to the
effectiveness of the previously announced 630,000 MTPY long-term
take-or-pay off-take contracts with Mitsubishi Corporation, pursuant to
which the Partnership and the Second Hancock JV will supply 180,000 MTPY
and 450,000 MTPY of wood pellets, respectively, have been satisfied.
Both contracts are expected to commence in 2022 and continue for at
least fifteen years.

In addition, the Partnership has agreed with Lynemouth Power Limited to
increase the annual sales volume under their existing off-take contract
by 200,000 MTPY for three years starting in 2020.

Several recent developments in the market continue to demonstrate the
strong growth expected in global demand for industrial-grade wood
pellets:

• In its recently published Renewable 2018 market analysis and forecast
  report, the International Energy Agency (“IEA”) forecasted that, over
  the next five years, bioenergy is expected to have the highest growth
  among renewable resources. According to IEA, by 2023, global installed
  electricity generation capacity from bioenergy is expected to rise to
  158 gigawatts (“GWs”), up from 121 GWs in 2017. Longer term, the IEA
  forecasted that the share of modern bioenergy in the world’s energy
  mix will grow from 4.5% today to 17% by 2060 in an effort to keep
  global warming below 2 degrees Celsius this century.
• In Germany, the Special Commission on Growth, Structural Economic
  Change and Employment, otherwise known as the “Coal Commission,”
  continues to deliberate on a pathway to end coal generation in order
  to reach its 2050 carbon emissions reduction objectives. Meanwhile,
  the government’s parallel goal of retiring all nuclear capacity by the
  end of 2022 creates challenges that renewable biomass baseload
  generation can help solve.
• The Dutch government announced the results of its Spring 2018 SDE+
  allocation round, with 27 percent of total funds awarded to biomass
  projects, representing 50 projects and approximately EUR 950 million
  of incentives. The government also confirmed that a further EUR 6
  billion of total incentives will be available in the Autumn 2018
  allocation round, which opened in October 2018.
• Japan’s operating biomass power generation capacity approved under its
  feed-in-tariff (FiT) scheme reached approximately 2.4 GWs in the
  fiscal year ended March 31, 2018. The country is targeting 6.0 to 7.5
  GWs of biomass power by 2030, which represents demand for
  approximately 15 to 20 million MTPY of biomass.

Sponsor Activity

The initial 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 nameplate capacity
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.

The Partnership previously made an initial payment of $56.0 million upon
the closing of the acquisition of Enviva Port of Wilmington, LLC (the
“Wilmington Drop-Down”). Upon first deliveries to the Wilmington
terminal from the Hamlet plant, the Partnership will make another
payment of $74.0 million to the First Hancock JV, subject to certain
conditions.

The second joint venture between affiliates of our sponsor and John
Hancock (the “Second Hancock JV”) continues to invest incremental
capital in its wood pellet production plant in Greenwood, South Carolina
(the “Greenwood plant”). The plant currently produces wood pellets for
the Partnership under a take-or-pay off-take contract. The Second
Hancock JV expects to increase the Greenwood plant’s production capacity
from 500,000 MTPY to 600,000 MTPY, subject to receiving necessary
permits.

The Second Hancock JV expects to make a final investment decision on a
deep-water marine terminal in Pascagoula, Mississippi and a wood pellet
production plant in Lucedale, Mississippi in late 2018 or early 2019,
and continues to evaluate additional development locations.

The Partnership expects to have the opportunity to acquire these assets
from our sponsor and its joint ventures with John Hancock.

Chesapeake Incident

The Partnership continues to believe that substantially all of the costs
resulting from the previously reported fire incident (the “Chesapeake
Incident”) will be recoverable through insurance or other contractual
rights. The Partnership’s financial performance for the third quarter of
2018 was impacted by net recoveries of business continuity costs related
to the incident.

In addition to presenting our financial results in accordance with
accounting principles generally accepted in the United States (“GAAP”),
in certain cases we have provided financial results excluding the
financial impact of the Chesapeake Incident. References herein to the
financial impact of the Chesapeake Incident include the approximate
costs incurred during the third quarter of 2018 offset by insurance
recoveries received to date.

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 such
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 and nine
months ended September 30, 2018 presented in this release are prepared
on this basis.

Conference Call

We will host a conference call with executive management related to our
third quarter 2018 results and a more detailed market update at
10:00 a.m. (Eastern Time) on Friday, November 9, 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)(4). 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, depreciation and amortization and changes in unrealized
derivative instruments related to hedged items included in gross margin.
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 unrealized derivative instruments
related to hedged items included in gross margin and other income
(expense), 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
received). 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, original issue discounts, and the impact
from incremental borrowings related to the Chesapeake Incident. 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.

Our estimate of incremental adjusted EBITDA from the Mid-Atlantic
Expansions is based on numerous assumptions that are subject to
significant risks and uncertainties. Those assumptions are inherently
uncertain and subject to significant business, economic, financial,
regulatory, and competitive risks and uncertainties that could cause
actual results and amounts to differ materially from such estimate. A
reconciliation of the estimated incremental adjusted EBITDA expected to
be generated by the Mid-Atlantic Expansions to the closest GAAP
financial measure, net income, is not provided because net income
expected to be generated by the expansions is not available without
unreasonable effort, in part because the amount of estimated incremental
interest expense related to the financing of the expansions and
depreciation are not available at this time.

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							Nine Months Ended
		September 30,							September 30,
		2018				2017 (Recast)			2018				2017 (Recast)
		(in thousands, except per metric ton)
Reconciliation of gross margin to adjusted gross margin per metric ton:
Metric tons sold			762				668			2,109				1,919
Gross margin		$	30,119			$	20,382		$	44,912			$	53,081
Loss on disposal of assets			656				1,237			900				3,242
Depreciation and amortization			9,678				9,707			28,800				29,104
Changes in unrealized derivative instruments			1,944				—			(750)				—
Adjusted gross margin		$	42,397			$	31,326		$	73,862			$	85,427
Adjusted gross margin per metric ton		$	55.64			$	46.90		$	35.02			$	44.52
		Three Months Ended							Nine Months Ended
		September 30,							September 30,
		2018				2017 (Recast)			2018				2017 (Recast)
		(in thousands)
Reconciliation of adjusted EBITDA and distributable cash flow to net income (loss):
Net income (loss)		$	13,356			$	5,023		$	(2,435)			$	6,475
Add:
Depreciation and amortization			9,801				9,709			29,240				29,115
Interest expense			9,445				7,653			27,137				23,070
Non-cash unit compensation expense			1,781				1,833			5,604				5,113
Asset impairments and disposals			656				1,237			900				3,242
Changes in unrealized derivative instruments			1,944				—			(750)				—
Chesapeake Incident, net			(6,787)				—			8,999				—
Transaction expenses			30				344			176				3,427
Adjusted EBITDA			30,226				25,799			68,871				70,442
Less:
Interest expense, net of amortization of debt issuance costs, debt premium costs, original issue discount and impact from incremental borrowings related to Chesapeake Incident			7,839				7,261			24,984				21,909
Maintenance capital expenditures			1,638				857			3,252				2,870
Distributable cash flow attributable to Enviva Partners, LP			20,749				17,681			40,635				45,663
Less: Distributable cash flow attributable to incentive distribution rights			1,532				1,063			4,196				2,269
Distributable cash flow attributable to Enviva Partners, LP limited partners		$	19,217			$	16,618		$	36,439			$	43,394
Cash distributions declared attributable to Enviva Partners, LP limited partners		$	16,814							$	50,005
Distribution coverage ratio			1.14								0.73

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 twelve months ending December 31, 2018 (in millions), assuming no
further recoveries associated with the Chesapeake Incident and the
Hurricanes that would benefit 2018 adjusted EBITDA after November 8,
2018:

		Twelve Months
		Ending
		December 31,
		2018
Estimated net income2		$	8.4 – 12.4
Add:
Depreciation and amortization			41.1
Interest expense			36.5
Non-cash unit compensation expense			7.3
Chesapeake Incident, net			1.9
Other non-cash expenses			2.2
Estimated adjusted EBITDA		$	97.5 – 101.5

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 twelve months ending December 31, 2019 (in millions):

		Twelve Months
		Ending
		December 31,
		2019
Estimated net income		$	31.3 – 41.3
Add:
Depreciation and amortization			44.5
Interest expense			37.4
Non-cash unit compensation expense			9.8
Other non-cash expenses			2.0
Estimated adjusted EBITDA		$	125.0 – 135.0

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
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 the Hurricanes; and (xxiii) our inability to recover costs
associated with the Chesapeake Incident and the Hurricanes, including
through claims under our insurance policies and the exercise of our
other contractual rights, in amounts and on a timeline consistent with
our expectations.

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 U.S. 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)
		September 30,			December 31,
		2018			2017
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	863		$	524
Accounts receivable, net			49,152			79,185
Related-party receivables			5,535			5,412
Inventories			34,322			23,536
Prepaid expenses and other current assets			1,643			1,006
Total current assets			91,515			109,663
Property, plant and equipment, net			552,456			562,330
Intangible assets, net			—			109
Goodwill			85,615			85,615
Other long-term assets			4,783			2,394
Total assets		$	734,369		$	760,111
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable		$	10,730		$	7,554
Related-party payables and accrued liabilities			30,289			26,398
Accrued and other current liabilities			35,849			29,363
Current portion of interest payable			12,573			5,029
Current portion of long-term debt and capital lease obligations			7,070			6,186
Total current liabilities			96,511			74,530
Long-term debt and capital lease obligations			402,447			394,831
Related-party long-term payable			74,000			74,000
Long-term interest payable			980			890
Other long-term liabilities			4,687			5,491
Total liabilities			578,625			549,742
Commitments and contingencies
Partners’ capital:
Limited partners:
Common unitholders—public (14,573,452 and 13,073,439 units issued and outstanding at September 30, 2018 and December 31, 2017, respectively)			212,539			224,027
Common unitholder—sponsor (11,905,138 and 1,347,161 units issued and outstanding at September 30, 2018 and December 31, 2017, respectively)			76,380			16,050
Subordinated unitholder—sponsor (no units issued and outstanding at September 30, 2018 and 11,905,138 units issued and outstanding at December 31, 2017)			—			101,901
General partner (no outstanding units)			(133,810)			(128,569)
Accumulated other comprehensive income (loss)			635			(3,040)
Total Enviva Partners, LP partners’ capital			155,744			210,369
Total liabilities and partners’ capital		$	734,369		$	760,111

ENVIVA PARTNERS, LP AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per unit amounts)
(Unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2018				2017 (Recast)				2018				2017 (Recast)
Product sales		$	142,541			$	125,422			$	398,031			$	366,142
Other revenue			1,607				6,801				7,037				16,071
Net revenue			144,148				132,223				405,068				382,213
Cost of goods sold			103,695				100,897				330,456				296,786
Loss on disposal of assets			656				1,237				900				3,242
Depreciation and amortization			9,678				9,707				28,800				29,104
Total cost of goods sold			114,029				111,841				360,156				329,132
Gross margin			30,119				20,382				44,912				53,081
General and administrative expenses			7,315				7,704				21,406				23,337
Income from operations			22,804				12,678				23,506				29,744
Other income (expense):
Interest expense			(9,445	)			(7,653	)			(27,137	)			(23,070	)
Other income (expense)			(3	)			(2	)			1,196				(199	)
Total other expense, net			(9,448	)			(7,655	)			(25,941	)			(23,269	)
Net income (loss)			13,356				5,023				(2,435	)			6,475
Less net loss attributable to noncontrolling partners’ interests			—				665				—				3,180
Net income (loss) attributable to Enviva Partners, LP		$	13,356			$	5,688			$	(2,435	)		$	9,655
Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner			—				(651	)			—				(3,081	)
Enviva Partners, LP limited partners’ interest in net income (loss)		$	13,356			$	6,339			$	(2,435	)		$	12,736
Net income (loss) income per limited partner common unit:
Basic		$	0.45			$	0.20			$	(0.25	)		$	0.40
Diluted		$	0.43			$	0.19			$	(0.25	)		$	0.37
Net income (loss) per limited partner subordinated unit:
Basic		$	—			$	0.20			$	(0.25	)		$	0.40
Diluted		$	—			$	0.20			$	(0.25	)		$	0.40
Weighted-average number of limited partner units outstanding:
Common—basic			26,477				14,412				19,866				14,400
Common—diluted			27,478				15,385				19,866				15,343
Subordinated—basic and diluted			—				11,905				6,541				11,905

ENVIVA PARTNERS, LP AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Nine Months Ended
		September 30,
		2018				2017 (Recast)
Cash flows from operating activities:
Net (loss) income		$	(2,435	)		$	6,475
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization			29,240				29,115
Amortization of debt issuance costs, debt premium and original issue discounts			828				1,161
General and administrative expense incurred by the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down			—				1,338
Loss on disposal of assets			900				3,242
Unit-based compensation			5,604				5,113
De-designation of foreign currency forwards and options			(1,947	)			—
Fair value changes in derivatives			(4,465	)			(13	)
Unrealized loss on foreign currency transactions			32				—
Change in operating assets and liabilities:
Accounts receivable, net			30,004				28,026
Related-party receivables			(123	)			(3,312	)
Prepaid expenses and other assets			(160	)			76
Assets held for sale			—				(310	)
Inventories			(9,735	)			(4,433	)
Other long-term assets			—				86
Derivatives			5,080				(1,442	)
Accounts payable, accrued liabilities and other current liabilities			5,475				(6,845	)
Related-party payables and accrued liabilities			3,317				8,832
Accrued interest			7,634				6,301
Other current liabilities			234				—
Other long-term liabilities			648				621
Net cash provided by operating activities			70,131				74,031
Cash flows from investing activities:
Purchases of property, plant and equipment			(16,034	)			(21,916	)
Insurance proceeds from property loss			1,130				—
Net cash used in investing activities			(14,904	)			(21,916	)
Cash flows from financing activities:
Principal payments on debt and capital lease obligations			(4,745	)			(3,428	)
Cash paid related to debt issuance costs			—				(209	)
Proceeds from common unit issuance under the At-the-Market Offering Program, net			241				1,715
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder			(55,163	)			(46,323	)
Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting			(2,341	)			—
Payment for withholding tax associated with Long-Term Incentive Plan vesting			(4,380	)			—
Proceeds and payments on revolving credit commitments, net			11,500				(6,500	)
Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down			—				1,652
Proceeds from contributions from the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down			—				9,965
Net cash used in financing activities			(54,888	)			(43,128	)
Net increase in cash, cash equivalents and restricted cash			339				8,987
Cash, cash equivalents and restricted cash, beginning of period			524				466
Cash, cash equivalents and restricted cash, end of period		$	863			$	9,453

ENVIVA PARTNERS, LP AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (continued)
(In thousands)
(Unaudited)
		Nine Months Ended
		September 30,
			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		$	7,539			$	6,649
Property, plant and equipment acquired under capital lease obligations			949				1,124
Property, plant and equipment transferred from inventories			2				279
Distributions included in liabilities			1,047				937
Withholding tax payable associated with Long-Term Incentive Plan vesting			156				—
Conversion of subordinated units to common units			78,504				—
Application of short-term deposit to fixed assets			—				258
Depreciation capitalized to inventories			1,508				483
Supplemental information:
Interest paid		$	18,802			$	15,516

_______________________________
1		The estimated incremental adjusted EBITDA that can be expected from the Mid-Atlantic Expansions is based on an internal financial analysis of the anticipated benefit from the incremental production capacity at the Northampton and Southampton production plants. Please refer to the “Non-GAAP Financial Measures” section below for an explanation of why we are unable to reconcile such estimate to the most directly comparable GAAP financial measure.
2		Assumes additional insurance recoveries in the fourth quarter of 2018 related to the Chesapeake Incident of approximately $7.1 million that are included in estimated net income but would not benefit estimated adjusted EBITDA.