BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP (NYSE:EVA) (the “Partnership” or “we”) today
reported financial and operating results for the first quarter of 2016.

Highlights for the First Quarter of 2016:

• Generated net income of $7.5 million and adjusted EBITDA of $18.5
  million, up from $2.5 million and $16.9 million, respectively, for the
  first quarter in 2015
• Increased the quarterly distribution by more than 10 percent to
  $0.5100 per unit
• Reaffirmed 2016 guidance including full-year distributions of at
  least $2.10 per unit, excluding any impact of potential acquisitions

“I am very pleased with our solid operating and financial performance in
what for seasonal reasons has historically been our highest cost
quarter,” said John Keppler, Chairman and Chief Executive Officer. “That
performance lays a strong foundation for the remainder of the year and
we continue to expect to distribute at least $2.10 per unit for 2016.”

Financial Results

For the first quarter of 2016, we generated net revenue of $107.3
million on sales of 560 thousand metric tons of wood pellets. Net
revenue decreased 6 percent, or $7.1 million, from the corresponding
quarter of 2015 with net revenue of $114.3 million on 583 thousand
metric tons sold. For the first quarter, we generated net income of $7.5
million compared to $2.5 million for the corresponding quarter in 2015.
Adjusted EBITDA improved to $18.5 million in the first quarter of 2016,
a 10 percent increase compared to the corresponding period in 2015. The
increase was driven by the favorable cost position of our pellets,
increased sale and purchase transactions with our customer base, and a
$1.7 million payment from a third party supplier that terminated a
contract. This increase was partially offset by contract pricing mix and
lower sales volumes in the quarter, primarily due to lower carry-in
inventory balances at the beginning of 2016 and higher general and
administrative expenses associated with being a public company.

The Partnership’s distributable cash flow, net of amounts attributable
for incentive distribution rights, increased from $13.9 million for the
first quarter of 2015 to $14.8 million for the first quarter of 2016,
resulting in a distribution coverage ratio of 1.18 times.

Distribution

As announced yesterday, the board of directors of the Partnership’s
general partner (the “Board”) declared a distribution of $0.5100 per
common and subordinated unit for the first quarter of 2016. The
distribution is more than 10 percent higher than the fourth quarter 2015
distribution. The first quarter distribution will be paid Friday, May
27, 2016, to unitholders of record as of the close of business Monday,
May 16, 2016.

Outlook and Guidance

The guidance amounts provided below do not include the impact of any
potential acquisitions from the Partnership’s sponsor or others.

The Partnership reaffirms the full-year 2016 guidance provided
previously, expecting adjusted EBITDA for full-year 2016 to be in the
range of $83.0 million to $87.0 million on net income in the range of
$43.0 million to $47.0 million. The Partnership expects to incur
maintenance capital expenditures of $4.1 million and interest expense
net of amortization of debt issuance costs and original issue discount
of $11.9 million in 2016. As a result, the Partnership expects to
generate distributable cash flow for full-year 2016 in the range of
$67.0 million to $71.0 million, or $2.71 to $2.87 per common and
subordinated unit, prior to any incentive distributions paid to the
general partner. For full-year 2016, we expect to distribute at least
$2.10 per common and subordinated unit.

“With the benefit of the accretive cash flows from the Southampton
acquisition, we were able to significantly increase our quarterly
distribution,” said Mr. Keppler. “Having just completed our first year
as a public company, we have established an early track record of
increasing our distribution every quarter and with our solid operating
performance, we expect to continue to do so while building coverage
throughout the year.”

Market and Contracting Update

Our sales strategy is to fully contract the production capacity of the
Partnership. We are fully contracted for 2016 and our portfolio of
contracted sales has a weighted-average remaining term of 7.0 years from
April 1, 2016, excluding sales under the Partnership’s 15-year contract
to supply MGT Power’s Teesside Renewable Energy Plant in the UK, the
Partnership’s 10-year contract to the Langerlo facility in Belgium, and
the 10-year contract with an affiliate of DONG Energy held by our
sponsor.

Potential regulatory advances in key markets and customer momentum
continue to demonstrate the significant demand growth expected for the
wood pellet industry:

• In the UK, the Competition and Markets Authority recommended that the
  UK government, which has announced plans of phasing out all coal-fired
  power generation by 2025, allocate future new contract for difference
  (“CfD”) auctions based on the cost-effectiveness of the renewable
  technology. If this recommendation is adopted by the UK government,
  new biomass conversion and co-firing projects could be positioned to
  receive future CfD incentives, especially if total system costs of
  renewable technologies are taken into account, which is currently
  under discussion within the UK government. In addition, the UK
  government confirmed that biomass combined heat and power projects
  would be eligible to compete for new CfD incentives in an auction
  planned for late 2016, which may result in additional industrial-scale
  pellet demand.
• In the Netherlands, the first of two rounds of applications in 2016
  for the renewable incentive program commenced March 22, 2016. Utility
  scale, biomass co-firing projects were eligible and applied for the
  renewable incentive program. The budget for the program was
  substantially increased to 8.0 billion euros for 2016 from 3.5 billion
  euros in 2015, even as the country also considers an eventual complete
  phase-out of coal-fired power generation.
• Energetický a průmyslový holding (EPH), a vertically integrated energy
  utility with operations throughout Europe, continues to move forward
  with plans to convert the 420 MW Lynemouth coal facility to wood
  pellet fuel by the end of 2017. After conversion, this project is
  expected to generate demand for approximately 1.5 million tons of wood
  pellets annually.

As announced on February 17, 2016, Enviva Wilmington Holdings, LLC (the
“Hancock JV”), our sponsor’s joint venture with affiliates of John
Hancock Life Insurance Company executed a new take-or-pay contract to be
the sole source supplier for imported biomass fuel to MGT Power’s
Teesside Renewable Energy Plant (the “Tees REP”). Of the nearly 1
million metric tons per year (“MTPY”) needed by the Tees REP, 375,000
MTPY will be supplied by the Partnership under an agreement with the
Hancock JV. Both contracts are contingent upon Tees REP reaching
financial close, which continues to progress.

In December 2015, the Partnership announced an off-take contract,
commencing in 2017, to supply wood pellets to the Langerlo power
facility in Belgium, which the owner intends to convert from coal to
wood pellet fuel. As previously disclosed, affiliates of the facility
owner filed for insolvency. Although neither the Langerlo facility nor
its owner is part of these filings, we expect these events will, at a
minimum, delay the commencement of physical deliveries under the
off-take contract, and the impact on our customer’s ability to perform
its obligations remains uncertain.

“Demand for our product continues to materialize consistent with the
significant increases projected by biomass industry experts for
coal-to-biomass conversions, co-firing and broader market growth in
Europe, Asia and potentially the U.S.,” said Mr. Keppler. “As the
preferred and largest supplier in the marketplace, we believe we are
well positioned to not only capitalize on the long-term, structured
demand for our product but to also benefit from the near and medium term
opportunities that dislocations in the market can create.”

Sponsor Activity

Construction of the 515,000 MTPY production plant in Sampson County,
North Carolina (the “Sampson plant”) and a deep-water marine terminal in
Wilmington, North Carolina (the “Wilmington terminal”) continues to
progress. Major systems at the Sampson plant are in commissioning. The
Partnership expects to have the opportunity to acquire the Sampson
plant, along with our sponsor’s ten-year off-take contract with an
affiliate of DONG Energy, in late 2016 and the Wilmington terminal in
2017. In addition, our sponsor recently received the air permit required
to construct a new 500,000 MTPY production plant in Hamlet County, North
Carolina that, when completed, will ship the pellets it produces through
the Wilmington terminal.

Conference Call

We will host a conference call with executive management related to our
first quarter 2016 results and to discuss our outlook, guidance, and a
more detailed market update at 10:00 a.m. (Eastern Time) on Thursday,
May 5, 2016. Information on how interested parties may listen to the
conference call is available in 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 in Southampton
County, Virginia; Northampton County and Ahoskie, North Carolina; Amory
and Wiggins, Mississippi; and Cottondale, Florida. We have a combined
production capacity of approximately 2.3 million metric tons of wood
pellets per year. In addition, the Partnership owns a deep-water marine
terminal at the Port of Chesapeake, Virginia, which is used to export
wood pellets. Enviva Partners also exports pellets through the ports of
Mobile, Alabama and Panama City, Florida.

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

Non-GAAP Financial Measures

We view adjusted gross margin per metric ton, adjusted EBITDA, and
distributable cash flow as important indicators of performance. We also
view measures provided in this release that (i) do not give effect to
the recast of financial results and assume the Southampton Drop-Down had
not occurred or (ii) include financial results of acquired assets only
for the periods actually owned by the Partnership as important
indicators of our performance.

Adjusted Gross Margin per Metric Ton

We define adjusted gross margin as gross margin 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 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, taxes, early retirement of debt
obligation, non-cash unit compensation expense, asset impairments and
disposals, and certain items of income or loss that we characterize as
unrepresentative of our operations. 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 and original issue discount. Distributable cash flow is
used as a supplemental measure by our management and other users of our
financial statements as it provides important information relating to
the relationship between our financial operating performance and our
ability to make 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 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 measure, as applicable, for each of
the periods indicated.

							Three Months Ended March 31,
							2016			2015
										(Recast)
							(in thousands, except per metric ton)
	Reconciliation of gross margin to adjusted gross margin per metric ton:
	Metric tons sold							560			583
	Gross margin						$	15,755		$	11,655
	Depreciation and amortization							6,881			8,259
	Adjusted gross margin						$	22,636		$	19,914
	Adjusted gross margin per metric ton						$	40.42		$	34.16

							Three Months Ended March 31,
							2016			2015
										(Recast)
							(in thousands)
	Reconciliation of distributable cash flow and adjusted EBITDA to net income:
	Net income						$	7,479		$	2,511
	Add:
	Depreciation and amortization							6,893			8,270
	Interest expense							3,390			2,718
	Purchase accounting adjustment to inventory							—			697
	Non-cash unit compensation							681			—
	Income tax expense							—			2,667
	Asset impairments and disposals							1			18
	Acquisition transaction expenses							53			—
	Adjusted EBITDA						$	18,497		$	16,881
	Less:
	Interest expense net of amortization of debt issuance costs and original issue discount							2,944			2,213
	Maintenance capital expenditures							551			725
	Distributable cash flow attributable to Enviva Partners, LP							15,002			13,943
	Less: Distributable cash flow attributable to incentive distribution rights							156			—
	Distributable cash flow attributable to Enviva Partners, LP limited partners						$	14,846		$	13,943

The following table provides a reconciliation of the estimated range of
adjusted EBITDA and Distributable Cash Flow to the estimated range of
net income, in each case for the twelve months ending December 31, 2016
(in millions except per unit figures):

						Twelve Months Ending December 31, 2016
	Estimated net income					$ 43.0 – 47.0
	Add:
	Depreciation and amortization					25.4
	Interest expense					13.0
	Non-cash unit compensation					1.2
	Asset impairments and disposals					0.4
	Estimated adjusted EBITDA					$ 83.0 – 87.0
	Less: Interest expense net of amortization of debt issuance costs and original issue discount					11.9
	Maintenance capital expenditures					4.1
	Estimated Distributable Cash Flow					$ 67.0 – 71.0
	Estimated Distributable Cash Flow per common and subordinated unit1					$ 2.71 – 2.87

	(1)		Prior to any incentive distributions paid to our general partner; based on the number of common and subordinated units outstanding at the end of the first quarter of 2016

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 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 delivery
of products; (xviii) failure of the Partnership’s customers to pay or
perform their contractual obligations to the Partnership; (xix) changes
in the price and availability of transportation; and (xx) 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 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)
						March 31, 2016			December 31, 2015
						(unaudited)
	Assets
	Current assets:
	Cash and cash equivalents					$	3,636		$	2,175
	Accounts receivable, net of allowance for doubtful accounts of $132 as of March 31, 2016 and $85 as of December 31, 2015						37,853			38,684
	Related party receivables						383			94
	Inventories						27,799			24,245
	Prepaid expenses and other current assets						8,074			2,123
	Total current assets						77,745			67,321
	Property, plant and equipment, net of accumulated depreciation of $71.1 million as of March 31, 2016 and $64.7 million as of December 31, 2015						401,214			405,582
	Intangible assets, net of accumulated amortization of $7.8 million as of March 31, 2016 and $7.0 million as of December 31, 2015						2,626			3,399
	Goodwill						85,615			85,615
	Other long-term assets						502			7,063
	Total assets					$	567,702		$	568,980
	Liabilities and Partners’ Capital
	Current liabilities:
	Accounts payable					$	12,602		$	9,303
	Related party payables						10,724			11,013
	Accrued and other current liabilities						12,830			13,059
	Deferred revenue						270			485
	Current portion of long-term debt and capital lease obligations						3,238			6,523
	Related party current portion of long-term debt						3,414			150
	Total current liabilities						43,078			40,533
	Long-term debt and capital lease obligations						185,872			186,294
	Related party long-term debt						14,636			14,664
	Long-term interest payable						796			751
	Other long-term liabilities						661			586
	Total liabilities						245,043			242,828
	Commitments and contingencies
	Partners’ capital:
	Enviva Partners, LP partners’ capital						319,683			323,161
	Noncontrolling partners’ interests						2,976			2,991
	Total partners’ capital						322,659			326,152
	Total liabilities and partners’ capital					$	567,702		$	568,980

	ENVIVA PARTNERS, LP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per unit amounts) (Unaudited)
						Three Months Ended March 31,
						2016			2015
									(Recast)
	Product sales					$	103,445		$	113,581
	Other revenue						3,807			733
	Net revenue						107,252			114,314
	Cost of goods sold, excluding depreciation and amortization						84,616			94,400
	Depreciation and amortization						6,881			8,259
	Total cost of goods sold						91,497			102,659
	Gross margin						15,755			11,655
	General and administrative expenses						5,017			3,770
	Income from operations						10,738			7,885
	Other income (expense):
	Interest expense						(3,181)			(1,917)
	Related party interest expense						(209)			(801)
	Other income						131			11
	Total other expense, net						(3,259)			(2,707)
	Income before income tax expense						7,479			5,178
	Income tax expense						—			2,667
	Net income						7,479			2,511
	Less net loss attributable to noncontrolling partners’ interests						15			8
	Net income attributable to Enviva Partners, LP					$	7,494		$	2,519
	Less: Predecessor income from January 1, 2015 to March 31, 2015								$	2,519
	Enviva Partners, LP limited partners’ interest in net income					$	7,494		$	—
	Net income per common unit:
	Basic					$	0.30
	Diluted					$	0.29
	Net income per subordinated unit:
	Basic					$	0.30
	Diluted					$	0.29
	Weighted average number of limited partner units outstanding:
	Common – basic						12,852
	Common – diluted						13,337
	Subordinated – basic and diluted						11,905

	ENVIVA PARTNERS, LP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
						Three Months Ended March 31,
						2016			2015
									(Recast)
	Cash flows from operating activities:
	Net income					$	7,479		$	2,511
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization						6,893			8,270
	Amortization of debt issuance costs and original issue discount						446			505
	General and administrative expense incurred by Enviva Holdings, LP						—			475
	Allocation of income tax expense from Enviva Cottondale Acquisition I, LLC						—			2,663
	Loss on disposals and impairments of property, plant and equipment						1			18
	Unit-based compensation expense						681			—
	Change in fair value of interest rate swap derivatives						—			23
	Change in operating assets and liabilities:
	Accounts receivable						831			(2,778)
	Related party receivables						(289)			—
	Prepaid expenses and other assets						732			401
	Inventories						(3,395)			3,240
	Other long-term assets						(121)			240
	Accounts payable						3,079			3,253
	Related party payables						4,713			328
	Accrued liabilities						155			1,718
	Accrued interest						45			(14)
	Related party accrued interest						—			801
	Deferred revenue						(215)			19
	Other current liabilities						(231)			25
	Net cash provided by operating activities						20,804			21,698
	Cash flows from investing activities:
	Purchases of property, plant and equipment						(1,853)			(1,272)
	Payment of acquisition related costs						—			(3,572)
	Net cash used in investing activities						(1,853)			(4,844)
	Cash flows from financing activities:
	Principal payments on debt and capital lease obligations						(29,329)			(12,770)
	Principal payments on related party debt						(89)			(4,800)
	Cash restricted for debt service						—			4,000
	Proceeds from debt issuance						28,500			6,000
	Distributions to unitholders and distribution equivalent rights						(11,570)			—
	Distributions to sponsor						(5,002)			—
	Proceeds from contributions from sponsor						—			10,236
	Net cash (used in) provided by financing activities						(17,490)			2,666
	Net increase in cash and cash equivalents						1,461			19,520
	Cash and cash equivalents, beginning of period						2,175			591
	Cash and cash equivalents, end of period					$	3,636		$	20,111

	ENVIVA PARTNERS, LP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
						Three Months Ended March 31,
						2016			2015
									(Recast)
	Non-cash investing and financing activities:
	Property, plant and equipment acquired and included in accounts payable and accrued liabilities					$	645		$	353
	Depreciation capitalized to inventories						198			124
	Contribution of Enviva Pellets Cottondale, LLC non-cash net assets						—			122,529
	Distributions included in liabilities						83			—
	Distribution of Enviva Pellets Cottondale, LLC assets to sponsor						—			319
	Prepaid adjustment for insurance payable						—			25
	Non-cash capital contributions from sponsor						—			1,118
	Supplemental information:
	Interest paid					$	2,897		$	1,401