BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP (NYSE: EVA) (the “Partnership” or “we”) today
reported financial and operating results for the first quarter of 2017.

Highlights:

• Generated net income of $2.5 million and adjusted EBITDA of $22.9
  million for the first quarter of 2017, as compared to $5.5 million and
  $16.6 million, respectively, for the first quarter of 2016
• Declared a quarterly distribution of $0.5550 per unit, an 8.8
  percent increase from the distribution paid for the first quarter of
  2016
• Agreed to acquire the Wilmington terminal and associated contracts
  early in the fourth quarter of 2017
• Revised full-year 2017 guidance for net income to a range of $29.0
  million to $33.0 million and adjusted EBITDA to a range of $111.0
  million to $115.0 million, including the impact of the acquisition of
  the Wilmington terminal but excluding the impact of any additional
  drop-downs or third-party acquisitions

“Enviva delivered solid operating performance in what typically is our
softest quarter,” said John Keppler, Chairman and Chief Executive
Officer. “Combined with the benefit of our recently acquired Sampson
plant and DONG Energy off-take contract, we are right on track, year
over year. With the expected fourth quarter lift from the Wilmington
terminal acquisition, we are pleased to increase our 2017 distribution
guidance to at least $2.36 per unit.”

Financial Results

For the first quarter of 2017, we generated net revenue of $122.1
million, an increase of 13.9 percent, or $14.9 million, from the
corresponding quarter of 2016. Included in net revenue was product sales
of $119.0 million on volume of 623,000 metric tons of wood pellets,
representing an increase of $15.6 million from the corresponding quarter
of last year. The increase in product sales primarily was due to higher
sales volumes under our off-take contract with DONG Energy Thermal Power
A/S, which we acquired in connection with the Sampson drop-down
transaction on December 14, 2016 (the “Sampson Drop-Down”). Other
revenue decreased to $3.1 million for the first quarter of 2017 from
$3.8 million for the corresponding quarter in 2016.

For the first quarter of 2017, gross margin improved to $18.5 million,
an increase of $2.7 million from the corresponding period in 2016, and
we generated net income of $2.5 million compared to $5.5 million for the
corresponding quarter of 2016. Adjusted EBITDA improved to $22.9 million
in the first quarter of 2017, a $6.3 million, or 38.3 percent, increase
compared to the corresponding period in 2016. The increases in gross
margin and adjusted EBITDA were driven by increased product sales due to
the Sampson Drop-Down and a favorable customer and shipping contract
mix. Adjusted gross margin per metric ton was $43.19 for the first
quarter of 2017, as compared to $40.42 for the first quarter of 2016.
Net income decreased primarily due to higher interest expense.

The Partnership’s distributable cash flow, net of amounts attributable
to incentive distribution rights, increased from $12.7 million for the
first quarter of 2016 to $14.6 million for the first quarter of 2017,
resulting in a distribution coverage ratio of 1.00 times.

Distribution

As announced on May 3, 2017, the board of directors of our general
partner declared a distribution of $0.5550 per common and subordinated
unit for the first quarter of 2017. This distribution is 8.8 percent
higher than the distribution for the first quarter of 2016 and 3.7
percent higher than the distribution for the fourth quarter of 2016. The
quarterly distribution will be paid on Tuesday, May 30, 2017, to
unitholders of record as of the close of business on Thursday, May 18,
2017.

Agreement to Purchase Wilmington Terminal

The Partnership has agreed to purchase Enviva Port of Wilmington, LLC
(“Wilmington”) from Enviva Wilmington Holdings, LLC (the “Hancock JV”),
a joint venture between our sponsor and affiliates of John Hancock Life
Insurance Company, for total consideration of $130.0 million comprised
of two payments as described below. Wilmington owns a fully operational
deep-water marine terminal in Wilmington, North Carolina (the
“Wilmington terminal”) that we expect to generate approximately $16.0
million in incremental adjusted EBITDA when it reaches its currently
contracted run-rate.¹ The acquisition of Wilmington (the
“Wilmington Drop-Down”) is expected to close on or about October 2,
2017, subject to customary closing conditions.

The Wilmington terminal is capable of receiving product by rail and
truck, storing up to 90,000 metric tons of wood pellets, and loading up
to panamax-sized vessels. Wilmington is party to long-term terminal
services agreements to receive, store, and load a total of approximately
1.0 million metric tons per year (“MTPY”) of wood pellets from the
Partnership’s production plant in Sampson County, North Carolina (the
“Sampson plant”) and a third-party production plant for our sponsor,
subject to deficiency payments if minimum throughput requirements are
not met. The Wilmington terminal utilizes state-of-the-art handling
equipment and storage infrastructure designed to maintain product
quality and safety with throughput capacity of up to 3.0 million MTPY of
wood pellets.

The Partnership will make an initial payment of $56.0 million for
Wilmington at closing. Upon the acquisition of Wilmington, we initially
expect to generate incremental adjusted EBITDA of approximately $5.0
million for 2018 and run-rate incremental adjusted EBITDA of
approximately $8.0 million in 2019. The Partnership expects to fund the
initial purchase price with borrowings under its revolving credit
facility.

In addition, Wilmington is party to a long-term terminal services
agreement with the Hancock JV to receive, store, and load wood pellets
from the Hancock JV’s planned production plant in Hamlet, North Carolina
(the “Hamlet plant”). Wilmington’s terminal services agreement for
production from the Hamlet plant is also subject to deficiency payments
if minimum throughput requirements are not met. Our sponsor is
completing the detailed design of the fully-financed Hamlet plant and
has commenced site work and equipment procurement, with full
construction of the build-and-copy replica of the Sampson plant expected
to begin later this year and completion anticipated for late 2018.
Production from the Hamlet plant is expected to supply MGT Power’s
Teesside Renewable Energy Plant, which is currently under construction
in the United Kingdom. Upon first deliveries to the Wilmington terminal
from the Hamlet plant, the Partnership will make another payment of
$74.0 million, subject to certain conditions. When the Hamlet plant
commences operations, we expect the incremental adjusted EBITDA from
Wilmington to increase to $14.0 million and to reach $16.0 million per
year once the Hamlet plant reaches its expected full production rate of
600,000 MTPY.

For the Wilmington Drop-Down, Evercore served as exclusive financial
advisor and Andrews Kurth Kenyon LLP served as legal counsel to the
conflicts committee of the board of directors of the Partnership’s
general partner. Vinson & Elkins LLP served as legal counsel to the
Hancock JV.

Outlook and Guidance

The Partnership has adjusted its full-year 2017 guidance to reflect the
expected timing and partial year impact of the Wilmington Drop-Down. The
Partnership expects full-year 2017 net income to be in the range of
$29.0 million to $33.0 million and adjusted EBITDA to be in the range of
$111.0 million to $115.0 million. The Partnership expects to incur
maintenance capital expenditures of $5.1 million and interest expense
net of amortization of debt issuance costs and original issue discount
of $29.7 million in 2017. As a result, the Partnership expects full-year
distributable cash flow to be in the range of $76.2 million to $80.2
million, prior to any distributions attributable to incentive
distribution rights paid to the general partner. For full-year 2017, we
now expect to distribute at least $2.36 per common and subordinated
unit. The guidance amounts provided above do not include the impact of
any additional acquisitions from the Partnership’s sponsor or third
parties beyond the Wilmington Drop-Down. Although deliveries to our
customers are generally ratable over the year, the Partnership’s
quarterly income and cash flow are subject to the mix of customer
shipments made, which may 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 is 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 9.8
years from April 1, 2017.

Several recent developments continue to underpin the significant growth
in demand expected for wood pellets, especially in our core markets of
Europe and Asia:

• As the European Union’s proposed 2030 goals for further emissions
  reductions and increased renewable energy generation progress through
  the legislative process, the European Union is developing a new
  strategy to almost completely decarbonize its economy by 2050. In
  addition, EURELECTRIC, an association that represents 3,500 companies
  across the European electricity industry, announced that power
  generators in most European Union countries committed to eliminate
  investment in new coal-fired power plants after 2020. These events
  demonstrate both the continued regulatory and energy industry support
  for further de-carbonization in Europe.
• The United Kingdom (the “UK”) recently completed a full 24-hour period
  without burning coal to generate electricity, a major milestone in its
  efforts to displace coal-fired generation. In addition, the UK
  Department of Business, Energy and Industrial Strategy (the “BEIS”)
  completed a study that confirmed wood fiber sourced using practices
  employed in the Southeast United States is a low-carbon, sustainable
  source of energy. After agreeing last year to extend the UK
  government’s powers to award new contract for difference (CfD)
  incentives for low-carbon energy projects out to 2026, the BEIS is now
  considering the potential implications of the study on future policy
  decisions and CfD awards.
• The Japanese government recently reconfirmed the targeted power source
  mix for 2030. The program includes 6.0 to 7.5 gigawatts of
  biomass-fired capacity, which represents demand for 15 to 20 million
  MTPY of biomass. Additional biomass-fired power projects have been
  announced, including Kansai Electric Power’s potential conversion of
  its Aioi power plant to wood pellets under a joint venture with
  Mitsubishi Corporation Power and Chubu Electric’s plan to build a new
  co-fired unit with capacity of approximately 1.0 gigawatt at its
  Taketoyo power facility.
• Driven by consumer preference, several multi-national corporations
  have announced specific commitments to significantly reduce carbon
  emissions and increase adoption of renewable energy across their
  operations and supply chains. Biomass-fired generation for the power
  and thermal needs of these operations is a reliable complement to
  intermittent wind and solar power.

We remain in active discussions with customers in Europe and Asia for
long-term off-take contracts for the supply of wood pellets to be
fulfilled directly by the Partnership and by new capacity under
development by our sponsor throughout the Southeast United States,
including at its sites in Lucedale, Mississippi and Abbeville, Alabama,
as well as other sites positioned to take advantage of the existing
terminal capacity at the Chesapeake and Wilmington terminals. In
addition, our sponsor continues to evaluate its option to build and
operate a marine export terminal at the Port of Pascagoula, Mississippi,
which could support wood pellet production from a potential production
plant in Lucedale, Mississippi and other potential facilities in the
region.

Conference Call

We will host a conference call with executive management related to our
first-quarter 2017 results and to discuss the agreement to purchase
Wilmington, our outlook and guidance, and a more detailed market update
at 10:00 a.m. (Eastern Time) on Wednesday, May 10, 2017. 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.

Requests for Audited Financial Statements

The Partnership filed its Annual Report on Form 10-K for the fiscal year
ended December 31, 2016 with the U.S. Securities and Exchange Commission
(“SEC”) on February 28, 2017. The Partnership’s Annual Report on Form
10-K is available through its website at http://ir.envivapartners.com/sec-filings
as well as on the SEC’s website at www.sec.gov.
The Partnership’s security holders are entitled to receive, free of
charge, copies of its complete audited financial statements by sending a
request to Investor Relations, Enviva Partners, LP, 7200 Wisconsin Ave.,
Suite 1000, Bethesda, Maryland 20814, or by telephone at (240) 482-3856.

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 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 Wilmington, North
Carolina; Mobile, Alabama; and Panama City, Florida.

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

___________________

1 A reconciliation of Wilmington’s estimated incremental adjusted EBITDA to account for anticipated throughput from the Hamlet plant to the closest GAAP financial measure is not provided because GAAP net income generated by the Wilmington terminal is not available without unreasonable effort, in part because the amount of estimated incremental interest expense related to the financing of the additional payment due upon first deliveries from the Hamlet plant is not available at this time.

___________________

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 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, and certain items of income or loss that we
characterize as unrepresentative of our ongoing 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 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,
		2017			2016 (Recast)
		(in thousands, except per metric ton)
Reconciliation of gross margin to adjusted gross margin per metric ton:
Metric tons sold			623			560
Gross margin		$	18,476		$	15,755
Depreciation and amortization			8,432			6,881
Adjusted gross margin		$	26,908		$	22,636
Adjusted gross margin per metric ton		$	43.19		$	40.42

		Three Months Ended March 31,
		2017			2016 (Recast)
		(in thousands)
Reconciliation of distributable cash flow and adjusted EBITDA to net income:
Net income		$	2,502		$	5,546
Add:
Depreciation and amortization			8,436			6,893
Interest expense			7,705			3,391
Non-cash unit compensation expense			1,714			681
Asset impairments and disposals			24			1
Transaction expenses			2,533			53
Adjusted EBITDA			22,914			16,565
Less:
Interest expense net of amortization of debt issuance costs and original issue discounts			7,324			2,945
Maintenance capital expenditures			452			725
Distributable cash flow attributable to Enviva Partners, LP			15,138			12,895
Less: Distributable cash flow attributable to incentive distribution rights			537			156
Distributable cash flow attributable to Enviva Partners, LP limited partners		$	14,601		$	12,739
Cash distributions declared attributable to Enviva Partners, LP limited partners		$	14,606
Distribution coverage ratio			1.00

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, 2017
(in millions):

		Twelve Months Ending December 31, 2017
Estimated net income		$	29.0 – 33.0
Add:
Depreciation and amortization			37.0
Interest expense			31.4
Non-cash unit compensation expense			6.6
Asset impairments and disposals			4.0
Transaction expenses			3.0
Estimated adjusted EBITDA		$	111.0 – 115.0
Less:
Interest expense net of amortization of debt issuance costs and original issue discounts			29.7
Maintenance capital expenditures			5.1
Estimated distributable cash flow		$	76.2 – 80.2

The following table provides a reconciliation of estimated adjusted
EBITDA to estimated net (loss) income, in each case for the twelve
months ending December 31, 2018 and December 31, 2019, associated with
the Wilmington terminal and related contracts (in millions):

		Twelve Months Ending December 31, 2018				Twelve Months Ending December 31, 2019
Estimated net (loss) income		$	(2.1	)		$	0.9
Add:
Depreciation and amortization			4.3				4.3
Interest expense			2.8				2.8
Estimated adjusted EBITDA		$	5.0			$	8.0

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 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 of products that we are able to
sell; (ii) the price 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 financial 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) the amount of products that
we are able to produce, which could be adversely affected by, among
other things, operating difficulties; (vii) changes in the price and
availability of natural gas, coal, or other sources of energy; (viii)
changes in prevailing economic conditions; (ix) our inability to
complete acquisitions, including acquisitions from our sponsor, or to
realize the anticipated benefits of such acquisitions; (x) unanticipated
ground, grade or water conditions; (xi) inclement or hazardous weather
conditions, including extreme precipitation, temperatures and flooding;
(xii) environmental hazards; (xiii) fires, explosions or other
accidents; (xiv) 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; (xv) changes
in the regulatory treatment of biomass in core and emerging markets for
utility-scale generation; (xvi) inability to acquire or maintain
necessary permits or rights for our production, transportation and
terminaling operations; (xvii) inability to obtain necessary production
equipment or replacement parts; (xviii) operating or technical
difficulties or failures at our plants or deep-water marine terminals;
(xix) labor disputes; (xx) inability of our customers to take delivery
of products; (xxi) changes in the price and availability of
transportation; (xxii) changes in foreign currency exchange rates;
(xxiii) failure of our hedging arrangements to effectively reduce our
exposure to interest and foreign currency exchange rate risk; (xxiv)
risks related to our indebtedness; (xxv) customer rejection due to our
failure to maintain effective quality control systems at our production
plants and deep-water marine terminals; (xxvi) changes in the quality
specifications for our products that are required by our customers;
(xxvii) the effects of the approval of the United Kingdom of the exit of
the United Kingdom (“Brexit”) from the European Union, and the
implementation of Brexit, in each case on our and our customers’
businesses; and (xxiii) our 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, except for number of units)
		March 31, 2017				December 31, 2016
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	11,913			$	466
Restricted cash			938				—
Accounts receivable, net of allowance for doubtful accounts of $24 as of March 31, 2017 and December 31, 2016			49,676				77,868
Related-party receivables			6,902				7,634
Inventories			30,780				29,764
Assets held for sale			3,390				3,044
Prepaid expenses and other current assets			2,431				1,939
Related-party prepaid expenses			148				—
Total current assets			106,178				120,715
Property, plant and equipment, net of accumulated depreciation of $88.8 million as of March 31, 2017 and $80.8 as of December 31, 2016			511,907				516,418
Intangible assets, net of accumulated amortization of $9.2 million as of March 31, 2017 and $9.1 million as of December 31, 2016			1,287				1,371
Goodwill			85,615				85,615
Other long-term assets			2,508				2,049
Total assets		$	707,495			$	726,168
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable		$	3,009			$	9,869
Related-party payables			7,893				11,118
Accrued and other current liabilities			38,936				38,432
Related-party accrued liabilities			—				382
Current portion of interest payable			10,805				4,414
Current portion of long-term debt and capital lease obligations			4,676				4,109
Total current liabilities			65,319				68,324
Long-term debt and capital lease obligations			340,402				346,686
Long-term interest payable			800				770
Other long-term liabilities			1,281				871
Total liabilities			407,802				416,651
Partners’ capital:
Limited partners:
Common unitholders—public (13,045,894 and 12,980,623 units issued and outstanding as of March 31, 2017 and December 31, 2016, respectively)			236,902				239,902
Common unitholder—sponsor (1,347,161 units issued and outstanding as of March 31, 2017 and December 31, 2016)			17,587				18,197
Subordinated unitholder—sponsor (11,905,138 units issued and outstanding as of March 31, 2017 and December 31, 2016)			115,488				120,872
General partner (no outstanding units)			(67,393	)			(67,393	)
Accumulated other comprehensive (loss) income			(202	)			595
Total Enviva Partners, LP partners’ capital			302,382				312,173
Noncontrolling partners’ interests			(2,689	)			(2,656	)
Total partners’ capital			299,693				309,517
Total liabilities and partners’ capital		$	707,495			$	726,168

ENVIVA PARTNERS, LP AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(In thousands, except per unit amounts)
(Unaudited)
		Three Months Ended March 31,
			2017			2016 (Recast)
Product sales		$	119,047			$	103,445
Other revenue			3,076				3,807
Net revenue			122,123				107,252
Cost of goods sold, excluding depreciation and amortization			95,215				84,616
Depreciation and amortization			8,432				6,881
Total cost of goods sold			103,647				91,497
Gross margin			18,476				15,755
General and administrative expenses			8,325				6,950
Income from operations			10,151				8,805
Other income (expense):
Interest expense			(7,705	)			(3,182	)
Related-party interest expense			—				(209	)
Other income			56				132
Total other expense, net			(7,649	)			(3,259	)
Net income			2,502				5,546
Less net loss attributable to noncontrolling partners’ interests			33				993
Net income attributable to Enviva Partners, LP		$	2,535			$	6,539
Less: Pre-acquisition loss from operations of Enviva Pellets Sampson, LLC Drop-Down allocated to General Partner		$	—			$	(955	)
Enviva Partners, LP partners’ interest in net income		$	2,535			$	7,494
Net income per common unit:
Basic		$	0.08			$	0.30
Diluted		$	0.07			$	0.29
Net income per subordinated unit:
Basic		$	0.08			$	0.30
Diluted		$	0.08			$	0.29
Weighted average number of limited partner units outstanding:
Common — basic			14,380				12,852
Common — diluted			15,228				13,337
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,
			2017			2016 (Recast)
Cash flows from operating activities:
Net income		$	2,502			$	5,546
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			8,436				6,893
Amortization of debt issuance costs and original issue discounts			381				446
General and administrative expense incurred by Hancock JV prior to Enviva Pellets Sampson, LLC Drop-Down			—				661
Loss on disposals of property, plant and equipment			24				1
Unit-based compensation			1,714				681
Change in fair value of derivatives			(759	)			—
Change in operating assets and liabilities:
Accounts receivable, net			28,192				831
Related-party receivables			(920	)			(289	)
Restricted cash			(938	)			—
Prepaid expenses and other assets			(697	)			724
Related-party prepaid expense			(148	)			—
Assets held for sale			(345	)			—
Inventories			(1,254	)			(3,941	)
Other long-term assets			21				(121	)
Accounts payable			(6,095	)			3,161
Related-party payables			(2,941	)			4,771
Accrued liabilities			2,312				427
Accrued interest			6,421				45
Deferred revenue			—				(216	)
Other current liabilities			22				(229	)
Net cash provided by operating activities			35,928				19,391
Cash flows from investing activities:
Purchases of property, plant and equipment			(5,656	)			(12,254	)
Net cash used in investing activities			(5,656	)			(12,254	)
Cash flows from financing activities:
Principal payments on debt and capital lease obligations			(17,153	)			(29,329	)
Principal payments on related-party debt			—				(89	)
Cash paid related to debt issuance costs			(209	)			—
Proceeds from debt issuance			10,000				28,500
Proceeds from common unit issuance under At-the-Market Offering Program, net			1,715				—
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder			(14,829	)			(11,570	)
Contributions from Hancock JV prior to Enviva Pellets Sampson, LLC Drop-Down			—				11,861
Distributions to sponsor			—				(5,002	)
Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down			1,651				—
Net cash used in financing activities			(18,825	)			(5,629	)
Net increase in cash and cash equivalents			11,447				1,508
Cash and cash equivalents, beginning of period			466				2,128
Cash and cash equivalents, end of period		$	11,913			$	3,636

ENVIVA PARTNERS, LP AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Three Months Ended March 31,
		2017			2016 (Recast)
Non-cash investing and financing activities:
Property, plant and equipment acquired included in accounts payable and accrued liabilities		$	9,547		$	18,988
Property, plant and equipment transferred from inventories			153			38
Depreciation capitalized to inventories			86			198
Non-cash capital contributions from Hancock JV prior to Enviva Pellets Sampson, LLC Drop-Down			—			81
Distributions included in liabilities			509			83
Capitalized insurance included in related-party payables			—			89
Capitalized labor included in related-party payables			—			244
Property, plant and equipment acquired under capital leases			1,124			—
Supplemental information:
Interest paid		$	853		$	2,897