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

Highlights:

• Declared a quarterly distribution of $0.6150 per unit, a 16.0
  percent increase from the distribution paid for the third quarter of
  2016
• Generated net income of $6.3 million and adjusted EBITDA of $26.1
  million for the third quarter of 2017, as compared to $10.3 million
  and $22.9 million, respectively, for the third quarter of 2016
• Narrowed the guidance range for the full-year 2017 to net income of
  $19.5 million to $21.5 million and adjusted EBITDA of $104.0 million
  to $106.0 million
• Reaffirmed distribution guidance for the full-year 2017 of at least
  $2.36 per common and subordinated unit

“With the benefits of the process improvements we undertook in the first
half of the year, our facilities are performing at or better than our
expectations, generating strong cash flow in the quarter enabling our
9th consecutive quarterly distribution increase,” said John Keppler,
Chairman and Chief Executive Officer of Enviva. “In addition, we
continue to build the foundation for long-term growth with increases to
our contracted position and the completion of the Wilmington terminal
drop-down acquisition, which adds capacity in the most critical portion
of our logistics chain.”

Financial Results

For the third quarter of 2017, we generated net revenue of $131.5
million, an increase of 18.7 percent, or $20.7 million, from the
corresponding quarter of 2016. Included in net revenue were product
sales of $125.4 million on a volume of 668,000 metric tons of wood
pellets, representing an increase of $21.8 million from the third
quarter of last year. The increase was attributable to greater sales
volumes, primarily relating to tons produced at our facilities and sold
under the off-take contract acquired as part of the Sampson drop-down
transaction, and was partially offset by contract pricing mix. Other
revenue decreased to $6.0 million for the third quarter of 2017 from
$7.2 million for the corresponding quarter in 2016, primarily due to a
decrease in the fees we earned related to customer requests to cancel,
defer, or accelerate shipments.

For the third quarter of 2017, gross margin was $21.1 million, as
compared to $22.4 million for the corresponding period in 2016, a
decrease of $1.3 million. Gross margin decreased primarily due to higher
depreciation expense, pricing mix, lower other revenue, and higher
production costs, partially offset by higher sales volumes. Adjusted
gross margin per metric ton was $46.49 for the third quarter of 2017, as
compared to $56.88 for the corresponding quarter of last year. Excluding
the benefit of $5.7 million of fees we earned from assisting a single,
third-party pellet producer meet its volume, quality, and sustainability
requirements during the third quarter of 2016, adjusted gross margin per
metric ton for that quarter would have been $46.25.

We generated net income of $6.3 million in the third quarter of 2017, as
compared to $10.3 million for the corresponding quarter of 2016.
Adjusted EBITDA improved to $26.1 million in the third quarter of 2017,
a $3.2 million, or 13.9 percent, increase compared to the corresponding
period in 2016. The increase in adjusted EBITDA was driven by a decrease
in general and administrative expenses attributable to plant development
costs incurred during the construction of the Sampson plant. Net income
decreased primarily due to the higher depreciation expense and an
increase in interest expense.

The Partnership’s distributable cash flow, net of amounts attributable
to incentive distribution rights, decreased from $18.3 million for the
third quarter of 2016 to $16.9 million for the third quarter of 2017.

Distribution

The board of directors of our general partner declared a distribution of
$0.6150 per common and subordinated unit for the third quarter of 2017.
This distribution is 16.0 percent higher than the distribution for the
third quarter of 2016. The Partnership’s distributable cash flow, net of
amounts attributable to incentive distribution rights, of $16.9 million
covers the distribution for the third quarter of 2017 at 1.04 times. The
quarterly distribution will be paid on Wednesday, November 29, 2017, to
unitholders of record as of the close of business on Wednesday,
November 15, 2017.

Wilmington Drop-Down

On October 2, 2017, the Partnership announced the completion of the
acquisition of Enviva Port of Wilmington, LLC (“Wilmington”) from its
sponsor’s joint venture with affiliates of John Hancock Life Insurance
Company (the “Hancock JV”). The Partnership previously agreed to
purchase Wilmington from the Hancock JV for total consideration of
$130.0 million. The Partnership made the initial payment at closing of
$56.0 million, adjusted for estimated working capital, which was funded
with borrowings under the Partnership’s revolving credit facility and
cash on hand. Upon first deliveries to the Wilmington terminal from the
Hancock JV’s production plant in Hamlet, North Carolina that is
currently under construction, the Partnership will make a final payment
of $74.0 million to the Hancock JV, subject to certain conditions.

Financing Activity

On October 10, 2017, the Partnership completed the issuance of $55
million in aggregate principal amount of 8.50% senior unsecured notes
due 2021 at a price of 106.25% of par plus accrued interest from May 1,
2017 (the “Additional Notes”) for an effective yield to maturity of
6.7%. The Additional Notes have the same terms as the outstanding 8.50%
senior unsecured notes due 2021, which the Partnership issued in
November 2016 in an original aggregate principal amount of $300 million.
The Partnership used the net proceeds from the Additional Notes to repay
borrowings on its revolving credit facility, which were used to fund the
acquisition of Wilmington, and for general partnership purposes.

Outlook and Guidance

The Partnership expects full-year 2017 net income to be in the range of
$19.5 million to $21.5 million and adjusted EBITDA to be in the range of
$104.0 million to $106.0 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 $69.5 million to $71.5
million, prior to any distributions attributable to incentive
distribution rights paid to the general partner. The full-year guidance
implies an adjusted EBITDA range of $30.5 million to $32.5 million for
the fourth quarter. For full-year 2017, the Partnership reaffirms its
distribution guidance of 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 recently completed Wilmington acquisition. 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 9.7
years from October 1, 2017.

The Partnership previously announced an agreement to supply a total of
450,000 metric tons of wood pellets to Engie Energy Management SCRL
(“Engie”) from mid-2017 through and including 2019. The contracted
volumes for 2018 and 2019 are now firm as the conditions precedent have
been satisfied. In addition, the Partnership announced today that it has
entered into an agreement with Dong Energy Thermal Power A/S for the
supply of an incremental 200,000 metric tons from late 2018 through
mid-2021.

Several developments continue to underpin the significant growth in
demand expected in our core markets of Europe and Asia:

• In Japan, demand for long-term supply of imported wood pellets
  continues to grow as several utilities and trading houses have
  announced new co-fired and dedicated biomass projects. Japan is
  targeting 6.0 to 7.5 gigawatts (“GWs”) of biomass-fired capacity,
  which represents demand for 15 to 20 million metric tons per year
  (“MTPY”) of biomass, as part of its expected power source mix for
  2030. 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.
• In South Korea, the importation of wood pellets reached a record high
  in the third quarter of 2017, up nearly 70 percent from the same
  period of 2016. Additional projects have announced plans for co-firing
  and full conversion to wood pellet fuel, consistent with policymakers’
  proposal 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.
• In Belgium, Engie announced that it has been granted a five-year
  extension to run its 180 megawatt (“MW”) Max Green power plant in
  Ghent, Belgium on biomass. The Max Green facility uses approximately
  800,000 MTPY of wood pellets at full capacity.
• In the UK, an 85 MW biomass-fired combined heat & power (“CHP”)
  project in Grangemouth, Scotland won a Contract for Difference (CfD)
  under the latest UK government auction round for less established
  technologies. The government has announced a further CfD auction
  round, including biomass CHP, will take place in spring of 2019.
• In Germany, coal-fired power generation needs to be reduced
  substantially by 2030 in order to meet the country’s commitments under
  the Paris Climate Accord. The Green Party, likely to be part of the
  next federal government, has called for a complete phase-out of coal
  by 2030. Many current coal-fired CHP facilities are electrical
  transmission system-relevant assets and important sources of thermal
  energy for German industrial activity. The conversion of coal-fired
  power plants to biomass-fired generation has proven to be an effective
  complement to intermittent sources of renewable power.

Sponsor Activity

Construction of the 600,000 MTPY production plant in Hamlet, North
Carolina (the “Hamlet plant”) continues to progress. Our sponsor
currently expects the plant will be operational in the first quarter of
2019. 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
third quarter 2017 results, our outlook and guidance, and a more
detailed market update at 10:00 a.m. (Eastern Time) on Thursday,
November 2, 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 exports wood pellets through its owned marine
terminal assets at the Port of Chesapeake, Virginia, and the Port of
Wilmington, North Carolina and from third-party marine terminals in
Mobile, Alabama and Panama City, Florida.

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

Notice

This press release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat 100
percent of the Partnership’s distributions to non-U.S. investors as
being attributable to income that is effectively connected with a United
States trade or business. Accordingly, the Partnership’s distributions
to non-U.S. investors are subject to federal income tax withholding at
the highest applicable effective tax rate.

Non-GAAP Financial Measures

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

Adjusted Gross Margin per Metric Ton

We define adjusted gross margin as gross margin excluding asset
disposals 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 September 30,								Nine Months Ended September 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				668				534				1,919				1,714
Gross margin				$ 21,118				$ 22,417				$ 57,781				$ 57,628
Loss on disposal of assets				1,237				1,523				3,242				1,679
Depreciation and amortization				8,700				6,434				26,085				20,429
Adjusted gross margin				$ 31,055				$ 30,374				$ 87,108				$ 79,736
Adjusted gross margin per metric ton				$ 46.49				$ 56.88				$ 45.39				$ 46.52

				Three Months Ended September 30,								Nine Months Ended September 30,
				2017				2016 (Recast)				2017				2016 (Recast)
				(in thousands)
Reconciliation of distributable cash flow and    adjusted EBITDA to net income:
Net income				$ 6,334				$ 10,346				$ 12,695				$ 25,781
Add:
Depreciation and amortization				8,703				6,439				26,096				20,452
Interest expense				7,652				3,365				23,062				10,096
Non-cash unit compensation expense				1,833				1,162				5,113				2,662
Asset impairments and disposals				1,237				1,523				3,242				1,679
Transaction expenses				297				49				3,250				108
Adjusted EBITDA				26,056				22,884				73,458				60,778
Less:
Interest expense net of amortization of debt       issuance costs and original issue discount				7,259				2,919				21,901				8,758
Maintenance capital expenditures				857				1,375				2,870				2,758
Distributable cash flow attributable to Enviva     Partners, LP				17,940				18,590				48,687				49,262
Less: Distributable cash flow attributable to     incentive distribution rights				1,063				303				2,269				716
Distributable cash flow attributable to Enviva     Partners, LP limited partners				$ 16,877				$ 18,287				$ 46,418				$ 48,546
Cash distributions declared attributable to Enviva     Partners, LP limited partners				$ 16,185								$ 45,792
Distribution coverage ratio				1.04								1.01

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				$ 19.5 – 21.5
Add:
Depreciation and amortization				37.5
Interest expense				32.0
Non-cash unit compensation expense				7.0
Asset impairments and disposals				4.5
Transaction expenses				3.5
Estimated adjusted EBITDA				$ 104.0 – 106.0
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				$ 69.5 – 71.5

The following table provides a reconciliation of the estimated range of
adjusted EBITDA to the estimated range of net income, in each case for
the three months ending December 31, 2017 (in millions):

			Three Months Ending December 31, 2017
Estimated net income			$ 6.8 – 8.8
Add:
Depreciation and amortization			11.4
Interest expense			8.9
Non-cash unit compensation expense			1.9
Asset impairments and disposals			1.3
Transaction expenses			0.2
Estimated adjusted EBITDA			$ 30.5 – 32.5

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 our 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 of our
products 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 (xxviii) 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)
			September 30, 2017				December 31, 2016
			(Unaudited)
Assets
Current assets:
Cash and cash equivalents			$ 9,453				$ 466
Accounts receivable, net of allowance for doubtful accounts of $0 as of    September 30, 2017 and $24 as of December 31, 2016			49,855				77,868
Related-party receivables			7,748				7,634
Inventories			34,477				29,764
Assets held for sale			3,354				3,044
Prepaid expenses and other current assets			1,186				1,939
Total current assets			106,073				120,715
Property, plant and equipment, net of accumulated depreciation of $104.6 million as     of September 30, 2017 and $80.8 million as of December 31, 2016			495,366				516,418
Intangible assets, net of accumulated amortization of $10.3 million as of September     30, 2017 and $9.1 million as of December 31, 2016			140				1,371
Goodwill			85,615				85,615
Other long-term assets			2,040				2,049
Total assets			$ 689,234				$ 726,168
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable			$ 3,122				$ 9,869
Related-party payables			19,948				11,118
Accrued and other current liabilities			30,710				38,432
Related-party accrued liabilities			372				382
Current portion of interest payable			10,625				4,414
Current portion of long-term debt and capital lease obligations			5,008				4,109
Total current liabilities			69,785				68,324
Long-term debt and capital lease obligations			338,115				346,686
Long-term interest payable			860				770
Other long-term liabilities			3,274				871
Total liabilities			412,034				416,651
Commitments and contingencies
Partners’ capital:
Limited partners:
Common unitholders—public (13,065,204 and 12,980,623 units issued and     outstanding at September 30, 2017 and December 31, 2016, respectively)			228,961				239,902
Common unitholder—sponsor (1,347,161 units issued and outstanding at     September 30, 2017 and December 31, 2016)			16,532				18,197
Subordinated unitholder—sponsor (11,905,138 units issued and outstanding at     September 30, 2017 and December 31, 2016)			106,164				120,872
General Partner interest (no outstanding units)			(67,875)				(67,393)
Accumulated other comprehensive loss			(3,885)				595
Total Enviva Partners, LP partners’ capital			279,897				312,173
Noncontrolling partners’ interests			(2,697)				(2,656)
Total partners’ capital			277,200				309,517
Total liabilities and partners’ capital			$ 689,234				$ 726,168

ENVIVA PARTNERS, LP AND SUBSIDIARIES Condensed Consolidated Statements of Income (In thousands, except per unit amounts) (Unaudited)
			Three Months Ended September 30,								Nine Months Ended September 30,
			2017				2016 (Recast)				2017				2016 (Recast)
Product sales			$ 125,422				$ 103,577				$ 366,142				$ 323,269
Other revenue			6,036				7,217				14,387				14,486
Net revenue			131,458				110,794				380,529				337,755
Cost of goods sold, excluding depreciation and     amortization			100,403				80,420				293,421				258,019
Loss on disposal of assets			1,237				1,523				3,242				1,679
Depreciation and amortization			8,700				6,434				26,085				20,429
Total cost of goods sold			110,340				88,377				322,748				280,127
Gross margin			21,118				22,417				57,781				57,628
General and administrative expenses			7,131				8,708				21,826				22,025
Income from operations			13,987				13,709				35,955				35,603
Other income (expense):
Interest expense			(7,652)				(3,314)				(23,062)				(9,535)
Related-party interest expense			—				(51)				—				(561)
Other (expense) income			(1)				2				(198)				274
Total other expense, net			(7,653)				(3,363)				(23,260)				(9,822)
Net income			6,334				10,346				12,695				25,781
Less net loss attributable to noncontrolling     partners’ interests			5				1,366				41				3,467
Net income attributable to Enviva Partners, LP			$ 6,339				$ 11,712				$ 12,736				$ 29,248
Less: Pre-acquisition loss from operations of     Enviva Pellets Sampson, LLC Drop-Down     allocated to General Partner			—				(1,321)				—				(3,332)
Enviva Partners, LP partners’ interest in net     income			$ 6,339				$ 13,033				$ 12,736				$ 32,580
Net income per common unit:
Basic			$ 0.20				$ 0.51				$ 0.40				$ 1.28
Diluted			$ 0.19				$ 0.50				$ 0.37				$ 1.26
Net income per subordinated unit:
Basic			$ 0.20				$ 0.51				$ 0.40				$ 1.28
Diluted			$ 0.20				$ 0.50				$ 0.40				$ 1.26
Weighted-average number of limited partner     units outstanding:
Common — basic			14,412				12,919				14,400				12,878
Common — diluted			15,385				13,480				15,343				13,420
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)
			Nine Months Ended September 30,
			2017				2016 (Recast)
Cash flows from operating activities:
Net income			$ 12,695				$ 25,781
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			26,096				20,452
Amortization of debt issuance costs and original issue discount			1,161				1,338
Impairment of inventory			—				890
General and administrative expense incurred by Hancock JV prior to Enviva     Pellets Sampson, LLC Drop-Down			—				561
Loss on disposals of assets			3,242				1,679
Unit-based compensation			5,113				2,662
Unrealized loss on foreign currency transactions			(13)				—
Change in operating assets and liabilities:
Accounts receivable, net			28,026				1,880
Related-party receivables			(2,766)				(280)
Prepaid expenses and other assets			53				638
Assets held for sale			(310)				—
Inventories			(4,401)				(8,850)
Other long-term assets			86				6,668
Derivatives			(1,442)				—
Accounts payable			(5,725)				(7,479)
Related-party payables			9,475				(1,056)
Accrued liabilities			(1,015)				5,670
Accrued interest			6,301				137
Other current liabilities			(249)				(241)
Deferred revenue and deposits			—				4,535
Other long-term liabilities			—				126
Net cash provided by operating activities			76,327				55,111
Cash flows from investing activities:
Purchases of property, plant and equipment			(14,289)				(54,237)
Premiums paid for purchased options			—				(78)
Proceeds from the sale of property, plant and equipment			—				1,763
Net cash used in investing activities			(14,289)				(52,552)
Cash flows from financing activities:
Principal payments on debt and capital lease obligations			(29,886)				(36,960)
Principal payments on related-party debt			—				(282)
Cash paid related to debt issuance costs			(209)				(22)
Distributions to sponsor			—				(5,002)
Proceeds from common unit issuance under At-the-Market Offering Program, net			1,715				5,619
Distributions to unitholders, distribution equivalent rights and incentive     distribution rights holder			(46,323)				(37,841)
Payment of deferred offering costs			—				(591)
Proceeds from borrowings on Revolving Credit Commitments			20,000				34,500
Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down			1,652				—
Proceeds from contributions from Hancock JV			—				57,288
Net cash (used in) provided by financing activities			(53,051)				16,709
Net increase in cash and cash equivalents			8,987				19,268
Cash and cash equivalents, beginning of period			466				2,128
Cash and cash equivalents, end of period			$ 9,453				$ 21,396

ENVIVA PARTNERS, LP AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
			Nine Months Ended September 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			$ 4,413				$ 19,912
Property, plant and equipment acquired under capital leases			1,124				1,578
Property, plant and equipment transferred from inventories			172				63
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
Distributions included in liabilities			937				449
Depreciation capitalized to inventories			483				498
Application of short-term deposit to fixed assets			258				—
Offering issuance costs included in accrued liabilities			—				22
Debt issuance costs included in accrued liabilities			—				135
Non-cash capital contribution from Hancock JV prior to Enviva Pellets Sampson Drop-Down			—				2,345
Supplemental information:
Interest paid			$ 15,508				$ 8,619