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

Highlights for the Second Quarter of 2016:

• Generated net income of $12.0 million and adjusted EBITDA of $23.5
  million, up from $2.9 million and $19.1 million, respectively, for the
  second quarter in 2015
• Declared a quarterly distribution of $0.5250 per unit, a 2.9
  percent increase from the distribution paid for the first quarter of
  2016
• Updated full-year 2016 guidance for net income to a range of $40.0
  million to $42.0 million and adjusted EBITDA to a range of $86.0
  million to $88.0 million, excluding any impact of potential drop-downs
  or other acquisitions

“Our strong operating and financial performance through the second
quarter, coupled with our increased outlook for the remainder of 2016,
put us solidly on the path toward our previously announced full-year
distribution expectation of at least $2.10 per unit for 2016, excluding
the impact of any potential drop-downs or other acquisitions,” said John
Keppler, Chairman and Chief Executive Officer. “In addition, our market
position enabled us to capitalize on dislocations in the market this
quarter and optimize deliveries to our growing customer base.”

Financial Results

For the second quarter of 2016, we generated net revenue of $119.7
million, an increase of 9.2 percent, or $10.0 million, from the
corresponding quarter of 2015. Included in net revenue was product sales
of $116.2 million on volume of 620 thousand metric tons of wood pellets.
Product sales increased from the corresponding quarter of last year due
to higher wood pellet sales volumes as a result of shipment timing,
partially offset by a higher percentage of “free on board” shipments,
which exclude shipping from revenue and cost of goods sold.

For the second quarter, we generated net income of $12.0 million
compared to $2.9 million for the corresponding quarter in 2015. Adjusted
EBITDA improved to $23.5 million in the second quarter of 2016, a 23.0
percent increase compared to the corresponding period in 2015. The
increases in net income and adjusted EBITDA were driven by higher wood
pellet sales volumes under our long-term, take-or-pay contracts,
increased other revenue primarily derived from shipments purchased from
and sold to third parties, and lower general and administrative
expenses, partially offset by contract pricing mix. The cost position of
our delivered wood pellets, primarily driven by plant utilization and
raw material costs, was consistent between periods.

The Partnership’s distributable cash flow, net of amounts attributable
to incentive distribution rights, increased from $15.4 million for the
second quarter of 2015 to $19.5 million for the second quarter of 2016,
resulting in a distribution coverage ratio of 1.50 times.

Distribution

As announced yesterday, the board of directors of the Partnership’s
general partner declared a distribution of $0.5250 per common and
subordinated unit for the second quarter of 2016. This distribution is
2.9 percent higher than the first quarter 2016 distribution. The second
quarter distribution will be paid Monday, August 29, 2016, to
unitholders of record as of the close of business Monday, August 15,
2016.

Outlook and Guidance

The Partnership updated its full-year 2016 guidance. The guidance
amounts provided below do not include the impact of any potential
acquisitions from the Partnership’s sponsor or others.

The Partnership now expects full-year 2016 net income to be in the range
of $40.0 million to $42.0 million, which reflects higher non-cash
compensation expense and non-cash asset impairment and disposal charges
than previously anticipated, and adjusted EBITDA to be in the range of
$86.0 million to $88.0 million, which reflects the Partnership’s
better-than-expected performance during the first half of 2016. The
Partnership expects to incur maintenance capital expenditures of $4.0
million and interest expense net of amortization of debt issuance costs
and original issue discount of $12.0 million in 2016. As a result, the
Partnership expects full-year distributable cash flow to be in the range
of $70.0 million to $72.0 million, prior to any distributions
attributable to incentive distribution rights paid to the general
partner, which reflects the expected improvement in full-year adjusted
EBITDA. For full-year 2016, we expect to distribute at least $2.10 per
common and subordinated unit.

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 current capacity
is matched with a portfolio of off-take contracts that has a
weighted-average remaining term of 8.0 years from July 1, 2016,
including the Partnership’s recently announced 9.5 year contract to
supply 800,000 metric ton per year (“MTPY”) to Lynemouth Power Limited,
but excluding potential sales under the Partnership’s 15-year contract
to supply MGT Power’s Teesside Renewable Energy Plant in the UK, which
continues to proceed towards financial close.

As we disclosed June 8, 2016, subsidiaries of Graanul Invest group
(“Graanul”) announced that they had purchased the shares of the company
which owns the Langerlo power station in Genk, Belgium and intend to
convert the power station from coal to biomass. The Langerlo power
station has already received a subsidy from the Flemish government to
support the conversion, is a system-relevant production asset for the
Belgium power grid, and its conversion is a critical component of
Belgium’s plan for meeting binding European Union renewable energy
consumption requirements. We are in discussions with Graanul in regards
to potentially supplying a portion of the Langerlo power station’s wood
pellet fuel needs, which are expected to be 1.8 million MTPY commencing
in the second half of 2018. We had previously entered into an off-take
contract to supply wood pellets to an affiliate of German Pellets GmbH
that intended to use our product at the Langerlo power station. As a
result of the sale to Graanul, however, we believe it is unlikely that
our contract counterparty will perform its obligations under this
contract and, although we intend to preserve all of our rights against
our counterparty, we do not expect our counterparty to take deliveries
of wood pellets under it.

In the Netherlands, the government awarded several biomass co-firing,
dedicated biomass heat, and combined heat and power projects a total of
2.5 billion euros in subsidies in the first of two rounds of
applications for the 2016 renewable incentive program. Biomass co-firing
projects owned by RWE and Engie were among the initial recipients. The
budget for the program had already been substantially increased to 8.0
billion euros for 2016 from 3.5 billion euros in 2015, and the budget
for the second round of applications, open from September through
October 2016, was increased further from 4.0 billion euros to 5.0
billion euros.

“In light of our contracting activity this quarter, our sales book and
production capacity are substantially balanced through early 2022 and
include contracts that extend out to 2027. Additional growth will be
driven by demand continuing to materialize in our core European market
and the developing Asian market, which we believe can be supplied
cost-competitively from our assets in the Southeastern U.S. due to its
advantaged fiber basket,” said Mr. Keppler. “As the market leader, we
are excited about the opportunities to further extend our contracted
position and diversify our customer base, and the opportunities our
sponsor may have to build substantial new, fully-contracted production
capacity that would add to its inventory of potential drop-down assets.”

Sponsor Activity

Construction of the 515,000 MTPY production plant in Sampson County,
North Carolina (the “Sampson plant”) and deep-water marine terminal in
Wilmington, North Carolina (the “Wilmington terminal”) is nearing
completion. Our sponsor’s operations team expects to assume full
operational control of the Sampson plant later this month and for the
first vessel to load at the Wilmington terminal in October. 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. Due to the related-party nature of such transactions, the board of
directors of the Partnership’s general partner has formed a Conflicts
Committee comprised solely of independent directors in anticipation of
evaluating such opportunities.

In addition, our sponsor has executed an agreement with the Jackson
County Port Authority granting our sponsor an option to build and
operate a marine export terminal at the Port of Pascagoula, Mississippi.

Conference Call

We will host a conference call with executive management related to our
second quarter 2016 results and to discuss our outlook, guidance, and a
more detailed market update at 10:00 a.m. (Eastern Time) on Thursday,
August 4, 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 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 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, income tax expense, early retirement
of debt obligations, non-cash unit compensation expense, asset
impairments and disposals and certain other 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 discount. We use distributable cash
flow as a performance metric to compare 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
accounting principles generally accepted in the United States (“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 June 30,						Six Months Ended June 30,
		2016			2015 (Recast)			2016			2015 (Recast)
		(in thousands, except per metric ton)
Reconciliation of gross margin to adjusted gross margin per metric ton:
Metric tons sold			620			560			1,180			1,143
Gross margin		$	19,612		$	15,259		$	35,367		$	26,914
Depreciation and amortization			7,114			8,225			13,995			16,484
Adjusted gross margin		$	26,726		$	23,484		$	49,362		$	43,398
Adjusted gross margin per metric ton		$	43.11		$	41.94		$	41.83		$	37.97

		Three Months Ended June 30,						Six Months Ended June 30,
		2016			2015 (Recast)			2016			2015 (Recast)
		(in thousands)
Reconciliation of distributable cash flow and adjusted EBITDA to net income:
Net income		$	12,020		$	2,865		$	19,499		$	5,376
Add:
Depreciation and amortization			7,120			8,237			14,013			16,507
Interest expense			3,340			3,087			6,730			5,805
Early retirement of debt obligation			—			4,699			—			4,699
Purchase accounting adjustment to inventory			—			—			—			697
Non-cash unit compensation expense			819			183			1,500			183
Income tax expense			—			—			—			2,667
Asset impairments and disposals			155			9			156			27
Acquisition transaction expenses			6			—			59			—
Adjusted EBITDA			23,460			19,080			41,957			35,961
Less:
Interest expense net of amortization of debt
issuance costs and original issue discount			2,894			2,717			5,838			4,930
Maintenance capital expenditures			832			975			1,383			1,700
Distributable cash flow attributable to Enviva
Partners, LP			19,734			15,388			34,736			29,331
Less: Distributable cash flow attributable to
incentive distribution rights			257			—			413			—
Distributable cash flow attributable to Enviva
Partners, LP limited partners		$	19,477		$	15,388		$	34,323		$	29,331

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		$	40.0 – 42.0
Add:
Depreciation and amortization			27.4
Interest expense			13.4
Non-cash unit compensation expense			3.0
Asset impairments and disposals			2.1
Acquisition transaction expenses			0.1
Estimated adjusted EBITDA		$	86.0 – 88.0
Less:
Interest expense net of amortization of debt issuance costs and original issue discount			12.0
			4.0
Estimated Distributable Cash Flow		$	70.0 – 72.0

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 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)
		June 30, 2016			December 31, 2015
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	19,806		$	2,175
Accounts receivable, net of allowance for doubtful accounts of $72 as of June 30, 2016 and $85 as of December 31, 2015			47,556			38,684
Related party receivables			462			94
Inventories			21,262			24,245
Prepaid expenses and other current assets			1,928			2,123
Total current assets			91,014			67,321
Property, plant and equipment, net of accumulated depreciation of $77.4 million as of June 30, 2016 and $64.7 million as of December 31, 2015			398,139			405,582
Intangible assets, net of accumulated amortization of $8.3 million as of June 30, 2016 and $7.0 million as of December 31, 2015			2,165			3,399
Goodwill			85,615			85,615
Other long-term assets			429			7,063
Total assets		$	577,362		$	568,980
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable		$	9,789		$	9,303
Related party payables			6,302			11,013
Accrued and other current liabilities			21,065			13,059
Deferred revenue and deposits			9,341			485
Current portion of long-term debt and capital lease obligations			3,649			6,523
Related party current portion of long-term debt			3,187			150
Total current liabilities			53,333			40,533
Long-term debt and capital lease obligations			199,903			186,294
Related party long-term debt			—			14,664
Long-term interest payable			841			751
Other long-term liabilities			874			586
Total liabilities			254,951			242,828
Commitments and contingencies
Partners’ capital:
Limited partners:
Common unitholders—public (11,520,614 and 11,502,934 units issued and outstanding at June 30, 2016 and December 31, 2015, respectively)			209,272			210,488
Common unitholder—sponsor (1,347,161 units issued and outstanding at June 30, 2016 and December 31, 2015)			19,367			19,619
Subordinated unitholder—sponsor (11,905,138 units issued and outstanding at June 30, 2016 and December 31, 2015)			131,202			133,427
General Partner interest (no outstanding units)			(40,373)			(40,373)
Total Enviva Partners, LP partners’ capital			319,468			323,161
Noncontrolling partners’ interests			2,943			2,991
Total partners’ capital			322,411			326,152
Total liabilities and partners’ capital		$	577,362		$	568,980

ENVIVA PARTNERS, LP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per unit amounts) (Unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
		2016			2015 (Recast)			2016			2015 (Recast)
Product sales		$	116,247		$	107,195		$	219,692		$	220,776
Other revenue			3,462			2,464			7,269			3,197
Net revenue			119,709			109,659			226,961			223,973
Cost of goods sold, excluding depreciation and amortization			92,983			86,175			177,599			180,575
Depreciation and amortization			7,114			8,225			13,995			16,484
Total cost of goods sold			100,097			94,400			191,594			197,059
Gross margin			19,612			15,259			35,367			26,914
General and administrative expenses			4,392			4,623			9,409			8,393
Income from operations			15,220			10,636			25,958			18,521
Other income (expense):
Interest expense			(3,039)			(2,791)			(6,220)			(4,708)
Related party interest expense			(301)			(296)			(510)			(1,097)
Early retirement of debt obligation			—			(4,699)			—			(4,699)
Other income			140			15			271			26
Total other expense, net			(3,200)			(7,771)			(6,459)			(10,478)
Income before income tax expense			12,020			2,865			19,499			8,043
Income tax expense			—			—			—			2,667
Net income			12,020			2,865			19,499			5,376
Less net loss attributable to noncontrolling partners’ interests			33			8			48			16
Net income attributable to Enviva Partners, LP		$	12,053		$	2,873		$	19,547		$	5,392
Less: Predecessor loss to May 4, 2015 (prior to IPO)		$	—		$	(4,651)		$	—		$	(2,132)
Less: Pre-acquisition income from April 10, 2015 to June 30, 2015 from operations of Enviva Pellets Southampton Drop-Down allocated to General Partner			—			1,839			—			1,839
Enviva Partners, LP partners’ interest in net income from May 4, 2015 to June 30, 2015		$	12,053		$	5,685		$	19,547		$	5,685
Net income per common unit:
Basic		$	0.48		$	0.24		$	0.77		$	0.24
Diluted		$	0.47		$	0.24		$	0.76		$	0.24
Net income per subordinated unit:
Basic		$	0.48		$	0.24		$	0.77		$	0.24
Diluted		$	0.47		$	0.24		$	0.76		$	0.24
Weighted average number of limited partner units outstanding:
Common — basic			12,862			11,905			12,857			11,905
Common — diluted			13,445			12,159			13,391			12,159
Subordinated — basic and diluted			11,905			11,905			11,905			11,905

ENVIVA PARTNERS, LP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
		Six Months Ended June 30,
		2016			2015 (Recast)
Cash flows from operating activities:
Net income		$	19,499		$	5,376
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			14,013			16,507
Amortization of debt issuance costs and original issue discount			892			875
General and administrative expense incurred by Enviva Holdings, LP			—			475
Allocation of income tax expense from Enviva Cottondale Acquisition I, LLC			—			2,663
Early retirement of debt obligation			—			4,699
Loss on disposals of property, plant and equipment			156			27
Unit-based compensation expense			1,500			183
Change in fair value of interest rate swap derivatives			—			23
Change in operating assets and liabilities:
Accounts receivable, net			(8,872)			(2,609)
Related party receivables			(368)			(705)
Prepaid expenses and other current assets			660			(1,318)
Inventories			2,776			(2,502)
Other long-term assets			6,635			398
Accounts payable and accrued liabilities			7,819			6,095
Related party payables			94			1,321
Accrued interest			90			1,933
Deferred revenue and deposits			8,856			477
Other liabilities			(109)			19
Net cash provided by operating activities			53,641			33,937
Cash flows from investing activities:
Purchases of property, plant and equipment			(4,586)			(2,494)
Payment of acquisition related costs			—			(3,573)
Proceeds from the sale of equipment			—			53
Net cash used in investing activities			(4,586)			(6,014)
Cash flows from financing activities:
Principal payments on debt and capital lease obligations			(36,125)			(182,394)
Principal payments on related party debt			(204)			—
Cash paid related to debt issuance costs			—			(5,123)
Termination payment for interest rate swap derivatives			—			(146)
Release of cash restricted for debt service			—			11,640
IPO proceeds, net			—			215,050
Cash paid for deferred offering costs			(224)			(1,340)
Proceeds from debt issuance			34,500			178,505
Distributions to unitholders, distribution equivalent rights and incentive distribution rights			(24,369)			—
Distributions to sponsor			(5,002)			(174,552)
Proceeds from contributions from sponsor			—			10,236
Net cash (used in) provided by financing activities			(31,424)			51,876
Net increase in cash and cash equivalents			17,631			79,799
Cash and cash equivalents, beginning of period			2,175			592
Cash and cash equivalents, end of period		$	19,806		$	80,391

ENVIVA PARTNERS, LP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
		Six Months Ended June 30,
		2016			2015 (Recast)
Non-cash investing and financing activities:
The Partnership acquired property, plant and equipment in non-cash transactions as follows:
Property, plant and equipment acquired included in accounts payable and accrued liabilities		$	1,247		$	405
Property, plant and equipment acquired under capital leases			44			—
Property, plant and equipment transferred from prepaid expenses			—			173
Depreciation capitalized to inventories			145			247
Contribution of Cottondale non-cash assets			—			122,529
Application of IPO costs to Partners’ capital			—			5,913
Related party long-term debt transferred to third-party long-term debt			14,757			—
Third-party long-term debt transferred to related party long-term debt			3,316			—
Offering costs included in accounts payable and accrued liabilities			241			370
Distribution of Cottondale assets to sponsor			—			319
Distributions included in liabilities			371			—
Inventory transferred to fixed assets			63			—
Non-cash adjustments to financed insurance and prepaid expenses			—			105
Non-cash capital contributions from sponsor			—			304
Supplemental information:
Interest paid		$	5,745		$	2,956