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

Highlights:

• Generated net income of $3.9 million and adjusted EBITDA of $24.5
  million for the second quarter of 2017, as compared to $9.9 million
  and $21.3 million, respectively, for the second quarter of 2016
• Declared a quarterly distribution of $0.5700 per unit, an 8.6
  percent increase from the distribution paid for the second quarter of
  2016
• Revised full-year 2017 guidance for net income to a range of $18.5
  million to $22.5 million and adjusted EBITDA to a range of $103.0
  million to $107.0 million, including the impact of the acquisition of
  the Wilmington terminal but excluding the impact of any additional
  drop-downs or third-party acquisitions
• Confirmed expected distribution for the full-year 2017 of at least
  $2.36 per common and subordinated unit

“With continued growth in our cash flows, we were pleased to announce
our 8^th consecutive distribution increase,” said John
Keppler, Chairman and Chief Executive Officer of Enviva. “In order to
extend our leadership in a rapidly growing industry, we implemented
several process improvements that temporarily reduced plant utilization.
With those enhancements largely in place, and given the robust
fundamentals of the business, we remain on track to distribute at least
$2.36 per unit for full-year 2017 and expect to maintain our track
record of quarterly distribution growth into 2018.”

Financial Results

For the second quarter of 2017, we generated net revenue of $126.9
million, an increase of 6.0 percent, or $7.2 million, from the
corresponding quarter of 2016. Included in net revenue were product
sales of $121.7 million on a volume of 628,000 metric tons of wood
pellets, representing an increase of $5.4 million from the second
quarter of last year. The increase was primarily attributable to more
shipments under CIF terms and a favorable contract pricing mix. Other
revenue increased to $5.3 million for the second quarter of 2017 from
$3.5 million for the corresponding quarter in 2016, driven mainly by
earnings on product sourced from third-party producers and sold under
our off-take contracts.

For the second quarter of 2017, gross margin was $18.2 million, as
compared to $19.5 million from the corresponding period in 2016, a
decrease of $1.3 million. Gross margin decreased due to higher
depreciation expense and non-cash charges associated with the loss on
disposal of assets, partially offset by the factors that increased net
revenue. We generated net income of $3.9 million in the second quarter
of 2017, as compared to $9.9 million for the corresponding quarter of
2016. Adjusted EBITDA improved to $24.5 million in the second quarter of
2017, a $3.2 million, or 14.8 percent, increase compared to the
corresponding period in 2016. The increase in adjusted EBITDA was driven
by increased product sales due to a favorable contract pricing mix and
the increase in other revenue. Adjusted gross margin per metric ton was
$46.41 for the second quarter of 2017, as compared to $43.11 for the
second quarter of 2016. Adjusted gross margin per metric ton benefited
from improved pricing and other revenue that offset higher production
and shipping costs resulting from lower plant utilization. Net income
decreased primarily due to the non-cash charges that resulted in lower
gross margin and higher interest expense.

The Partnership’s distributable cash flow, net of amounts attributable
to incentive distribution rights, decreased from $17.3 million for the
second quarter of 2016 to $14.9 million for the second quarter of 2017,
resulting in a distribution coverage ratio of 1.00 times.

Distribution

As announced on August 2, 2017, the board of directors of our general
partner declared a distribution of $0.5700 per common and subordinated
unit for the second quarter of 2017. This distribution is 8.6 percent
higher than the distribution for the second quarter of 2016. The
quarterly distribution will be paid on Tuesday, August 29, 2017, to
unitholders of record as of the close of business on Tuesday, August 15,
2017.

Outlook and Guidance

For full-year 2017, the Partnership reaffirms its distribution guidance
of at least $2.36 per common and subordinated unit. However, the
Partnership is revising its full-year 2017 guidance due to lower than
expected plant utilization, and the associated impact on the timing of
volumes sold, as its production facilities implemented process
enhancements to further improve pellet quality to continue to meet the
handling requirements of the increasing variety of discharge systems
used by customers around the world. The Partnership now expects
full-year 2017 net income to be in the range of $18.5 million to $22.5
million and adjusted EBITDA to be in the range of $103.0 million to
$107.0 million. The Partnership expects to incur maintenance capital
expenditures of $4.5 million and interest expense net of amortization of
debt issuance costs and original issue discount of $30.0 million in
2017. As a result, the Partnership expects full-year distributable cash
flow to be in the range of $68.5 million to $72.5 million, prior to any
distributions attributable to incentive distribution rights paid to the
general partner. The guidance amounts provided above do not include the
impact of any additional acquisitions from the Partnership’s sponsor or
third parties beyond the previously announced acquisition of the
sponsor’s deep-water marine terminal in Wilmington, North Carolina (the
“Wilmington terminal”). 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.

“While short-lived, the impact of the process improvements affected our
second quarter financial results and expectations for part of the year,”
said Keppler. “Given what we are seeing at the plants as they complete
these changes, we anticipate a strong fourth quarter and to exit the
year at a run rate on production volume and financial performance that
exceeds the expectations we set at the beginning of the year.”

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 July 1, 2017.

The Partnership and our sponsor announced the execution of a memorandum
of understanding for a take-or-pay off-take contract as the sole source
supplier of 650,000 metric tons per year (“MTPY”) of wood pellets to the
largest dedicated biomass project announced to date in Japan. Subject to
definitive agreement documentation and certain conditions precedent,
deliveries under this U.S. Dollar denominated contract would commence in
2022 and continue for at least fifteen years.

Several developments in Europe and Asia continue to demonstrate the
significant growth expected in long-term demand for wood pellets:

• Japan is targeting 6.0 to 7.5 gigawatts (“GWs”) of biomass-fired
  capacity, which represents demand for 15 to 20 million MTPY of
  biomass, as part of its expected power source mix for 2030. In June,
  demand for the 2017 feed-in tariff (“FiT”) program for projects fueled
  by imported biomass significantly exceeded expectations as
  applications were submitted for more than 15 GWs of biomass-fired
  capacity. Major energy companies continue to announce biomass projects
  underpinning the wood pellet demand growth expected in Japan, as Tokyo
  Electric Power (“TEPCO”) commenced co-firing biomass with coal at its
  1,000 megawatt (“MW”) Hitachinaka power plant.
• In South Korea, policymakers have proposed that the renewables
  portfolio standard (“RPS”) require large energy companies to source at
  least 28 percent of their power from renewable sources by 2030, up
  from 10 percent in 2023. This is consistent with the new president’s
  proposal that South Korea will generate at least 20 percent of its
  power from renewable sources by 2030, and is expected to significantly
  increase the adoption of renewable power generation. In addition,
  Korea South-East Power has announced the full conversion of a 125 MW
  unit at one of its coal-fired power plants, and the intention to
  convert another unit, to biomass fuel.
• In the Netherlands, the first round of applications for the 2017
  renewable incentive program concluded, where biomass projects are
  expected to receive a portion of the 6.0 billion euros in available
  funding. A second round of applications for 2017 commences in October
  for an additional 6.0 billion euros in available funding. As part of
  the previous awards under the incentive program, RWE has now announced
  its intention to fully convert its 1,500 MW Eemshaven and 600 MW Amer
  coal-fired power plants to wood pellets, subject to additional
  government support. Both plants have already received Dutch government
  funding for co-firing of wood pellets, and if fully converted to
  biomass, would represent more than 8 million MTPY of total demand for
  wood pellets.
• DONG Energy, the largest power producer in Denmark, has received state
  aid approval from the European Commission to convert its Asnaes
  combined heat and power facility to biomass, which is in line with the
  company’s plan to completely eliminate the use of coal in its
  generation of power and heat by 2023. DONG Energy’s coal-to-biomass
  conversion program is expected to require approximately 2 million MTPY
  of wood pellets by 2020.
• As the adoption of renewable power generation continues across Europe,
  policymakers are beginning to focus on the application of renewables
  in the thermal and heat markets in order to meet binding long-term
  decarbonization objectives. Fossil fuels are still used to generate a
  majority of the heat used in Europe, and the European Commission is
  considering methods to promote renewable heat generation needed to
  meet the European Union’s 2030 legally binding objective to reduce
  carbon emissions by 40 percent. Similarly, the United Kingdom’s (“UK”)
  Climate Change Committee, the official body overseeing implementation
  of the Climate Change Act, has called for new policies around
  renewable heat to help meet the UK’s 2032 decarbonization goals.
• Through an initiative by the Climate Group, one hundred multi-national
  corporations have committed to solely use renewable power across their
  global operations. Driven by consumer preference, corporations around
  the world and across many industries are seeking to significantly
  reduce carbon emissions and increase adoption of renewable energy, and
  biomass-fired generation for the power and thermal needs of these
  operations is a reliable complement to intermittent wind and solar
  power.

The Partnership expects to begin deliveries later this year to two new
customers under previously-announced off-take contracts. Our sponsor and
the Partnership are in active negotiations for other long-term off-take
contracts in this rapidly expanding market to be fulfilled directly by
the Partnership and by new capacity under development by our sponsor
throughout the Southeast United States.

Sponsor Activity

As previously announced, the Partnership has agreed to purchase Enviva
Port of Wilmington, LLC (“Wilmington”) from Enviva Wilmington Holdings,
LLC, a joint venture between our sponsor and affiliates of John Hancock
Life Insurance Company. Wilmington owns the fully operational Wilmington
terminal. The acquisition of Wilmington (the “Wilmington Drop-Down”) is
still expected to close on or about October 2, 2017, subject to
customary closing conditions.

Construction of the 600,000 MTPY production plant in Hamlet, North
Carolina (the “Hamlet plant”) continues to progress. Our sponsor
anticipates construction to be complete in 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 UK.

Conference Call

We will host a conference call with executive management related to our
second-quarter 2017 results, our outlook and guidance, and a more
detailed market update at 10:00 a.m. (Eastern Time) on Thursday, August
3, 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.

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.

Non-GAAP Financial Measures

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

Adjusted Gross Margin per Metric Ton

We define adjusted gross margin as gross margin excluding asset
disposals and depreciation and amortization included in cost of goods
sold. We believe adjusted gross margin per metric ton is a meaningful
measure because it compares our revenue-generating activities to our
operating costs for a view of profitability and performance on a per
metric ton basis. Adjusted gross margin per metric ton will primarily be
affected by our ability to meet targeted production volumes and to
control direct and indirect costs associated with procurement and
delivery of wood fiber to our production plants and the production and
distribution of wood pellets.

Adjusted EBITDA

We define adjusted EBITDA as net income or loss excluding depreciation
and amortization, interest expense, income tax expense, early retirement
of debt obligations, non-cash unit compensation expense, asset
impairments and disposals, 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 June 30,						Six Months Ended June 30,
		2017			2016 (Recast)			2017				2016 (Recast)
		(in thousands, except per metric ton)
Reconciliation of gross margin to adjusted gross margin per metric ton:
Metric tons sold			628			620				1,251			1,180
Gross margin		$	18,187		$	19,457		$		36,663		$	35,211
Loss on disposal of assets			2,005			155				2,005			156
Depreciation and amortization			8,953			7,114				17,385			13,995
Adjusted gross margin		$	29,145		$	26,726		$		56,053		$	49,362
Adjusted gross margin per metric ton		$	46.41		$	43.11		$		44.81		$	41.83
		Three Months Ended June 30,							Six Months Ended June 30,
		2017			2016 (Recast)			2017				2016 (Recast)
		(in thousands)
Reconciliation of distributable cash flow and adjusted EBITDA to net income:
Net income		$	3,859		$	9,889		$		6,361		$	15,435
Add:
Depreciation and amortization			8,957			7,120				17,393			14,013
Interest expense			7,705			3,340				15,410			6,731
Non-cash unit compensation expense			1,566			819				3,280			1,500
Asset impairments and disposals			1,981			155				2,005			156
Transaction expenses			420			6				2,953			59
Adjusted EBITDA			24,488			21,329				47,402			37,894
Less:
Interest expense net of amortization of debt issuance costs and original issue discount			7,318			2,894				14,642			5,839
Maintenance capital expenditures			1,561			832				2,013			1,383
Distributable cash flow attributable to Enviva Partners, LP			15,609			17,603				30,747			30,672
Less: Distributable cash flow attributable to incentive distribution rights			669			257				1,206			413
Distributable cash flow attributable to Enviva Partners, LP limited partners		$	14,940		$	17,346		$		29,541		$	30,259
Cash distributions declared attributable to Enviva Partners, LP limited partners		$	15,001						$	29,607
Distribution coverage ratio			1.00							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		$	18.5 – 22.5
Add:
Depreciation and amortization			38.0
Interest expense			31.4
Non-cash unit compensation expense			6.6
Asset impairments and disposals			5.0
Transaction expenses			3.5
Estimated adjusted EBITDA		$	103.0 – 107.0
Less: Interest expense net of amortization of debt issuance costs and original issue discounts			30.0
Maintenance capital expenditures			4.5
Estimated distributable cash flow		$	68.5 – 72.5

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)
		June 30, 2017				December 31, 2016
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	1,081			$	466
Accounts receivable, net of allowance for doubtful accounts of $0 as of June 30, 2017 and $24 as of December 31, 2016			53,111				77,868
Related-party receivables			9,241				7,634
Inventories			28,413				29,764
Assets held for sale			3,116				3,044
Prepaid expenses and other current assets			1,753				1,939
Total current assets			96,715				120,715
Property, plant and equipment, net of accumulated depreciation of $96.6 million as of June 30, 2017 and $80.8 million as of December 31, 2016			504,447				516,418
Intangible assets, net of accumulated amortization of $9.6 million as of June 30, 2017 and $9.1 million as of December 31, 2016			856				1,371
Goodwill			85,615				85,615
Other long-term assets			2,170				2,049
Total assets		$	689,803			$	726,168
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable		$	5,145			$	9,869
Related-party payables			11,335				11,118
Accrued and other current liabilities			34,197				38,432
Related-party accrued liabilities			674				382
Current portion of interest payable			4,250				4,414
Current portion of long-term debt and capital lease obligations			4,447				4,109
Total current liabilities			60,048				68,324
Long-term debt and capital lease obligations			339,262				346,686
Long-term interest payable			830				770
Other long-term liabilities			2,190				871
Total liabilities			402,330				416,651
Commitments and contingencies
Partners’ capital:
Limited partners:
Common unitholders—public (13,064,699 and 12,980,623 units issued and outstanding at June 30, 2017 and December 31, 2016, respectively)			232,315				239,902
Common unitholder—sponsor (1,347,161 units issued and outstanding at June 30, 2017 and December 31, 2016)			17,011				18,197
Subordinated unitholder—sponsor (11,905,138 units issued and outstanding at June 30, 2017 and December 31, 2016)			110,384				120,872
General Partner interest (no outstanding units)			(67,393	)			(67,393	)
Accumulated other comprehensive loss			(2,152	)			595
Total Enviva Partners, LP partners’ capital			290,165				312,173
Noncontrolling partners’ interests			(2,692	)			(2,656	)
Total partners’ capital			287,473				309,517
Total liabilities and partners’ capital		$	689,803			$	726,168

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,
		2017				2016 (Recast)				2017				2016 (Recast)
Product sales		$	121,673			$	116,247			$	240,720			$	219,692
Other revenue			5,275				3,462				8,351				7,269
Net revenue			126,948				119,709				249,071				226,961
Cost of goods sold, excluding depreciation and amortization			97,803				92,983				193,018				177,599
Loss on disposal of assets			2,005				155				2,005				156
Depreciation and amortization			8,953				7,114				17,385				13,995
Total cost of goods sold			108,761				100,252				212,408				191,750
Gross margin			18,187				19,457				36,663				35,211
General and administrative expenses			6,370				6,368				14,695				13,317
Income from operations			11,817				13,089				21,968				21,894
Other income (expense):
Interest expense			(7,705	)			(3,039	)			(15,410	)			(6,221	)
Related-party interest expense			—				(301	)			—				(510	)
Other (expense) income			(253	)			140				(197	)			272
Total other expense, net			(7,958	)			(3,200	)			(15,607	)			(6,459	)
Net income			3,859				9,889				6,361				15,435
Less net loss attributable to noncontrolling partners’ interests			3				1,108				36				2,101
Net income attributable to Enviva Partners, LP		$	3,862			$	10,997			$	6,397			$	17,536
Less: Pre-acquisition loss from operations of Enviva Pellets Sampson, LLC Drop-Down allocated to General Partner			—				(1,056	)			—				(2,011	)
Enviva Partners, LP partners’ interest in net income		$	3,862			$	12,053			$	6,397			$	19,547
Net income per common unit:
Basic		$	0.12			$	0.48			$	0.20			$	0.77
Diluted		$	0.11			$	0.47			$	0.19			$	0.76
Net income per subordinated unit:
Basic		$	0.12			$	0.48			$	0.20			$	0.77
Diluted		$	0.12			$	0.47			$	0.20			$	0.76
Weighted-average number of limited partner units outstanding:
Common — basic			14,405				12,862				14,392				12,857
Common — diluted			15,359				13,445				15,275				13,391
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,
		2017				2016 (Recast)
Cash flows from operating activities:
Net income		$	6,361			$	15,435
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			17,393				14,013
Amortization of debt issuance costs and original issue discount			768				892
General and administrative expense incurred by Hancock JV prior to Enviva Pellets Sampson, LLC Drop-Down			—				1,236
Loss on disposals of property, plant and equipment			2,005				156
Unit-based compensation			3,280				1,500
Unrealized loss on foreign currency transactions			238				—
Change in operating assets and liabilities:
Accounts receivable, net			24,757				(8,872	)
Related-party receivables			(3,259	)			(375	)
Prepaid expenses and other current assets			(175	)			359
Assets held for sale			(72	)			—
Inventories			1,137				1,671
Other long-term assets			48				6,635
Derivatives			(1,335	)			—
Accounts payable			(3,724	)			679
Related-party payables			862				671
Accrued liabilities			(1,195	)			8,014
Accrued interest			(104	)			90
Other current liabilities			(288	)			(236	)
Deferred revenue and deposits			—				8,855
Other long-term liabilities			—				127
Net cash provided by operating activities			46,697				50,850
Cash flows from investing activities:
Purchases of property, plant and equipment			(10,341	)			(30,862	)
Net cash used in investing activities			(10,341	)			(30,862	)
Cash flows from financing activities:
Principal payments on debt and capital lease obligations			(18,907	)			(36,124	)
Principal payments on related-party debt			—				(204	)
Cash paid related to debt issuance costs			(209	)			(1	)
Distributions to sponsor			—				(5,002	)
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			(29,992	)			(24,369	)
Payment of deferred offering costs			—				(224	)
Proceeds from debt issuance			10,000				34,500
Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down			1,652				29,114
Net cash used in financing activities			(35,741	)			(2,310	)
Net increase in cash and cash equivalents			615				17,678
Cash and cash equivalents, beginning of period			466				2,128
Cash and cash equivalents, end of period		$	1,081			$	19,806

ENVIVA PARTNERS, LP AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Six Months Ended June 30,
		2017			2016 (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		$	7,944		$	21,617
Property, plant and equipment acquired under capital leases			1,124			44
Property, plant and equipment transferred from inventories			153			—
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
Distributions included in liabilities			1,044			371
Inventory transferred to fixed assets			—			63
Depreciation capitalized to inventories			61			145
Non-cash capital contribution from Hancock JV prior to Enviva Pellets Sampson Drop-Down			—			118
Capitalized insurance included in related-party payables			—			4
Capitalized labor included in related-party payables			—			360
Supplemental information:
Interest paid		$	14,685		$	5,745