BETHESDA, Md.–(BUSINESS WIRE)–Enviva Partners, LP (NYSE: EVA) (the “Partnership” or “we”) today
reported financial and operating results for the fourth quarter and
full-year 2015.

Financial Highlights for the Quarter:

• Generated adjusted EBITDA of $21.6 million on net income of $9.0
  million, after giving effect to the recast for the Southampton
  Drop-Down
• Exceeded adjusted EBITDA guidance with adjusted EBITDA of $17.1
  million on net income of $6.5 million, assuming the Southampton
  Drop-Down had not occurred
• Providing guidance for aggregate distributions for 2016 of at least
  $2.10 per unit, representing a 27 percent increase over the annualized
  minimum quarterly distribution

“In contrast to the challenging market conditions in the broader energy
sector, we completed 2015 with continued strong operating performance
that exceeded our guidance, and we successfully executed the Southampton
Drop-Down,” said John Keppler, Chairman and Chief Executive Officer.
“With the stability of our long-term off-take agreements and growing
cash flows, we expect to distribute at least $2.10 per unit for 2016, a
27 percent increase over the annualized minimum quarterly distribution
announced at our IPO less than a year ago.”

Basis of Presentation

On December 11, 2015, we consummated the acquisition of the fully
operational 510,000 metric tons per year (“MTPY”) wood pellet production
plant in Southampton County, Virginia, a ten-year 500,000 MTPY
take-or-pay off-take contract (385,000 metric tons in the first year),
and a matching ten-year shipping contract (collectively, the
“Southampton Drop-Down”) from our sponsor’s joint venture. We owned the
Southampton plant for periods prior to April 9, 2015 and after December
11, 2015. Because this was a transfer between entities under common
control, all financial results were required to be recast to include the
results of the Southampton Drop-Down for the applicable period, such
that Southampton’s results for April 9, 2015 to December 11, 2015 are
now included in our GAAP results, and certain intercompany transactions
between us and Southampton during such period were eliminated. Unless
otherwise indicated, the financial results presented in this release are
recast on this basis.

Financial Results

For the fourth quarter of 2015, we generated net revenue of $116.8
million, a $37.8 million, or 48 percent, increase over the corresponding
quarter of last year. The increase in revenue was driven by higher sales
volumes attributable to the contracts included in the acquisition of the
Cottondale plant. For the fourth quarter, we generated net income of
$9.0 million compared to $2.3 million for the corresponding quarter in
2014. The increase in net income was a result of the higher revenues as
well as a $0.8 million utility refund received by one of our facilities.
Adjusted EBITDA improved to $21.6 million in the fourth quarter of 2015,
a 130 percent increase compared to the corresponding period in 2014. The
improvement was driven by the factors mentioned above, a decrease in
operating costs and raw materials, and lower export shipping costs. The
increase in adjusted EBITDA was partially offset by unfavorable pricing
on a contracted shipment inherited as part of the Cottondale plant
acquisition. The Partnership’s distributable cash flow for the fourth
quarter was $18.0 million.

Assuming the Southampton Drop-Down had not occurred, fourth quarter 2015
adjusted EBITDA would have been $17.1 million and distributable cash
flow would have been $14.0 million, each higher than the guidance of
$14.8 million to $15.8 million of adjusted EBITDA and $11.3 million to
$12.3 million of distributable cash flow provided on November 5, 2015.
Performance exceeded our guidance as a result of optimization of
shipping and sourcing contracts, timing of maintenance outages, supplier
incentive payments, and lower operating costs, which were partially
offset by lower sales on ships in port at the end of the year.

For full-year 2015, we generated net revenue of $457.4 million, a $167.3
million, or 58 percent, increase over last year. For 2015, we generated
net income of $23.1 million compared to $0.2 million in 2014. The
increases in revenue and net income were primarily the result of
additional contracted sales volume, partially offset by higher general
and administrative costs, including costs associated with being a public
company. Adjusted EBITDA increased to $77.3 million in 2015, a 173
percent increase compared to 2014. The improvement was driven by higher
sales volume, lower operating and raw material costs, more favorable
pricing under our customer contracts, and lower export shipping costs.
The Partnership’s distributable cash flow for the year was $62.8 million.

Distribution

As announced February 3, 2016, the board of directors of the
Partnership’s general partner (the “Board”) declared a cash distribution
of $0.4600 per common and subordinated unit for the fourth quarter of
2015. Distributable cash flow for the quarter, inclusive of the results
of the Southampton Drop-Down only from December 11, 2015 through the end
of the quarter, was $14.5 million, resulting in a distribution coverage
ratio of 1.28 times. The distribution is approximately 5 percent higher
than the third quarter distribution and approximately 12 percent higher
than the Partnership’s minimum quarterly distribution, which was paid on
a prorated basis for the second quarter following our initial public
offering on April 29, 2015. The fourth quarter distribution will be paid
Monday, February 29, 2016, to unitholders of record as of the close of
business Wednesday, February 17, 2016.

Outlook and Guidance

Consistent with the guidance provided on December 14, 2015, the
Partnership expects net income for full-year 2016 to be in the range of
$43.0 million to $47.0 million and adjusted EBITDA to be in the range of
$83.0 million to $87.0 million. The Partnership expects to incur
maintenance capital expenditures of $4.1 million and interest expense
net of amortization of debt issuance costs and original issue discount
of $11.9 million in 2016. As a result, the Partnership expects to
generate distributable cash flow for full-year 2016 in the range of
$67.0 million to $71.0 million, or $2.71 to $2.87 per common and
subordinated unit, prior to any distributions paid to the general
partner. For full-year 2016, we expect to distribute at least $2.10 per
common and subordinated unit. The guidance amounts provided above do not
include the impact of any potential acquisitions from the Partnership’s
sponsor or others. Although deliveries to our customers are generally
ratable over the year, the Partnership’s quarterly income and cash flow
are subject to modest seasonality in the first quarter and to the mix of
customer shipments made, which may vary from period to period. As such,
the Board evaluates the Partnership’s distribution coverage ratio on an
annual basis when determining the distribution for a quarter.

Market and Contracting Update

Independent industry experts Hawkins Wright recently projected that
worldwide demand for wood pellets will increase to more than
27 million tons in 2019 driven predominantly by biomass consumption in
Europe and Asia, representing an annual growth rate of more than 20
percent. The following are key recent developments:

• E.ON completed the sale of its 556 megawatt (“MW”) Langerlo power
  facility in Belgium to a buyer that intends to convert the facility
  from coal to wood pellet fuel. The off-take contract to supply wood
  pellets that the Partnership announced in December 2015, which
  commences in 2017, has been assigned to the new owner of the Langerlo
  facility. Recently, German Pellets GmbH, which is affiliated with the
  new owner, filed for insolvency in a German court. Neither the
  Langerlo project nor the new owner are part of the filing, but we
  continue to monitor German Pellets GmbH’s financial distress and its
  potential impact on the project, our off-take contract, and advances
  currently in escrow. The Partnership’s weighted average remaining term
  of off-take contracts is 8.0 years with the Langerlo contract or 7.2
  years without it, absent consideration of other recently executed
  contracts.
• MGT Power’s Teesside Renewable Energy Plant (the “Tees REP”) is
  expected to commence construction in the second quarter of 2016.
  Macquarie is partnering with MGT Power to bring the Tees REP to
  financial close. Enviva Wilmington Holdings, LLC (the “Hancock JV”),
  our sponsor’s joint venture with affiliates of John Hancock Life
  Insurance Company, executed a new take-or-pay contract (the “MGT
  Contract”) to be the sole source supplier for imported biomass fuel,
  with nearly 1 million tons needed annually by the 299 MW combined heat
  and power plant. Deliveries under the MGT Contract are expected to
  commence in 2019 and continue through 2034. The Partnership then
  entered into a contract with the Hancock JV to supply 375,000 MTPY of
  the contracted volume to the Tees REP (the “EVA-MGT Contract”). The
  EVA-MGT Contract is denominated in British Pound Sterling and
  commences in 2019, ramps to full supply in 2021, and continues through
  2034. Both contracts are contingent upon Tees REP reaching financial
  close.
• Following the successful conclusion of the EU state-aid review process
  of its U.K. government-backed CfD, RWE sold the 420 MW Lynemouth
  facility to Energetický a průmyslový holding (“EPH”), a vertically
  integrated energy utility with operations throughout Europe. EPH plans
  to convert the coal facility to wood pellet fuel by the end of 2017.
  After conversion, this project is expected to generate demand for
  approximately 1.5 million tons of wood pellets annually.
• In the Netherlands, the Minister of Economic Affairs confirmed a
  significant increase in the budget for the renewable incentive scheme
  from 3.5 billion euros in 2015 to 8.0 billion euros in 2016. Following
  the Paris Climate Change Conference in late 2015, the Dutch parliament
  is now considering a complete phase-out of coal-fired generation.
  Although a phase-out could expand the use of biomass significantly
  given the potential for full conversions of coal facilities to biomass
  in lieu of the 10-15 percent co-firing currently contemplated,
  uncertainty surrounding the future of coal-fired power likely delays
  our utility customers’ applications for renewable incentives until the
  fall when more information from the government on the possibility of a
  coal phase-out is expected.

“As recent contract activity demonstrates, our portfolio of assets and
track-record of execution continue to distinguish Enviva as the
preferred supplier to power generators around the world seeking to use
wood pellets as a drop-in replacement for coal,” said Mr. Keppler. “We
look forward to continuing to capitalize on opportunities in our core
market in Europe as well as in other geographies and pellet applications
as demand continues to grow.”

Sponsor Activity

On December 11, 2015, the Partnership completed the Southampton
Drop-Down. The $131 million purchase price for the Southampton Drop-Down
was financed with $36.5 million in debt, $15.0 million in equity issued
to the Partnership’s sponsor, and cash on hand.

Our sponsor continues to progress construction of the 515,000 MTPY
production plant in Sampson County, North Carolina (the “Sampson plant”)
and a deep-water marine terminal in Wilmington, North Carolina (the
“Wilmington terminal”). Commissioning of the Sampson plant has begun and
our sponsor expects to commence operations in the second quarter of
2016. The Partnership expects to have the opportunity to acquire the
Sampson plant, along with a ten-year 420,000 MTPY off-take contract with
an affiliate of DONG Energy, in late 2016 and the Wilmington terminal in
2017.

Subject to Tees REP reaching financial close, our sponsor and affiliates
of John Hancock Life Insurance Company have committed the necessary
capital to the Hancock JV to construct a new wood pellet production
plant that can supply at least 500,000 MTPY of the volume required by
the MGT Contract.

Conference Call

We will host a conference call with executive management related to our
fourth quarter 2015 results and to discuss our outlook, guidance, and a
more detailed market update at 10:00 a.m. (Eastern Time) on Thursday,
February 18, 2016. We plan to provide reference materials during the
conference call that will be available through a webcast. Information on
how interested parties may listen to the conference call and view the
webcast 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 2.2 million metric tons of wood
pellets per year. In addition, the Partnership owns a deep-water marine
terminal at the Port of Chesapeake, Virginia, which is used to export
wood pellets. Enviva Partners also exports pellets through the ports of
Mobile, Alabama and Panama City, Florida.

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

Non-GAAP Financial Measures

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

Adjusted Gross Margin per Metric Ton

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

Adjusted EBITDA

We define adjusted EBITDA as net income or loss excluding depreciation
and amortization, interest expense, taxes, early retirement of debt
obligation, non-cash unit compensation expense, asset impairments and
disposals, and certain items of income or loss that we characterize as
unrepresentative of our operations. Adjusted EBITDA is a supplemental
measure used by our management and other users of our financial
statements, such as investors, commercial banks, and research analysts,
to assess the financial performance of our assets without regard to
financing methods or capital structure.

Distributable Cash Flow

We define distributable cash flow as adjusted EBITDA less maintenance
capital expenditures and interest expense net of amortization of debt
issuance costs and original issue discount. Distributable cash flow is
used as a supplemental measure by our management and other users of our
financial statements as it provides important information relating to
the relationship between our financial operating performance and our
ability to make cash distributions.

Adjusted gross margin per metric ton, adjusted EBITDA, and distributable
cash flow are not financial measures presented in accordance with
generally accepted accounting principles (“GAAP”). We believe that the
presentation of these non-GAAP financial measures provides useful
information to investors in assessing our financial condition and
results of operations. Our non-GAAP financial measures should not be
considered as alternatives to the most directly comparable GAAP
financial measures. Each of these non-GAAP financial measures has
important limitations as an analytical tool because they exclude some,
but not all, items that affect the most directly comparable GAAP
financial measures. You should not consider adjusted gross margin per
metric ton, adjusted EBITDA, or distributable cash flow in isolation or
as substitutes for analysis of our results as reported under GAAP. Our
definitions of these non-GAAP financial measures may not be comparable
to similarly titled measures of other companies, thereby diminishing
their utility.

The following tables present a reconciliation of adjusted gross margin
per metric ton, adjusted EBITDA, and distributable cash flow to the most
directly comparable GAAP financial measure, as applicable, for each of
the periods indicated.

		Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
					(Predecessor)						(Predecessor)
		(in thousands, except per metric ton)
Reconciliation of gross margin to adjusted gross margin per metric ton:
Metric tons sold			629			414			2,374			1,508
Gross margin		$	18,124		$	8,143		$	61,621		$	20,107
Depreciation and amortization (1)			6,640			4,663			30,692			18,971
Adjusted gross margin		$	24,764		$	12,806		$	92,313		$	39,078
Adjusted gross margin per metric ton		$	39.37		$	30.93		$	38.89		$	25.91
(1)  Excludes depreciation of office furniture and equipment. Such amount is included in general and administrative expenses.
		Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
					(Predecessor)						(Predecessor)
		(in thousands)
Reconciliation of distributable cash flow and adjusted EBITDA to net income:
Net income		$	8,963		$	2,308		$	23,132		$	185
Add:
Depreciation and amortization			6,652			4,674			30,738			19,009
Interest expense			2,990			2,105			11,705			8,724
Early retirement of debt obligation			—			—			4,699			73
Purchase accounting adjustment to inventory			—			—			697			—
Non-cash unit compensation expense			341			—			704			2
Income tax (benefit) expense			(34)			3			2,623			15
Asset impairments and disposals			2,181			278			2,081			340
Acquisition transaction expenses			462			—			893			—
Adjusted EBITDA		$	21,555		$	9,368		$	77,272		$	28,348
Less:
Interest expense net of amortization of debt issuance costs and original issue discount			2,614			1,600			10,099			6,703
Maintenance capital expenditures			893			331			4,359			515
Distributable cash flow		$	18,048		$	7,437		$	62,814		$	21,130

The following tables present, in each case for the three months ending
December 31, 2015:

• our recast results prepared in accordance with GAAP, including
  Southampton’s results for periods we did not own Southampton and
  elimination of certain intercompany transactions;
• our results including the acquired assets only for the period actually
  owned by the Partnership; and
• what our results would have been assuming the Southampton Drop-Down
  had not occurred, and the intercompany transactions had not been
  eliminated.

		Three Months Ended December 31, 2015
		As Reported (Recast)			Including Southampton Drop- Down from the Acquisition Date			Assuming Southampton Drop- Down Had Not Occurred
		(in thousands)
Product sales		$	115,123		$	115,123		$	115,123
Other revenue			1,690			1,690			1,690
Net revenue			116,813			116,813			116,813
Cost of goods sold, excluding depreciation and amortization			92,049			95,702			96,568
Depreciation and amortization			6,640			5,512			5,261
Total cost of goods sold			98,689			101,214			101,829
Gross margin			18,124			15,599			14,984
General and administrative expenses			4,913			4,777			4,718
Loss on disposal of assets			2,181			1,838			1,838
Income from operations			11,030			8,984			8,428
Other income (expense):
Interest expense			(2,933)			(2,918)			(2,816)
Related party interest expense			(57)			(57)			—
Early retirement of debt obligation			—			—			—
Other income			889			891			889
Total other expense, net			(2,101)			(2,084)			(1,927)
Income before tax expense			8,929			6,900			6,501
Income tax benefit			(34)			(34)			(34)
Net income			8,963			6,934			6,535
Less net loss attributable to noncontrolling partners’ interests			12			12			12
Net income attributable to Enviva Partners, LP		$	8,975		$	6,946		$	6,547
		Three Months Ended December 31, 2015
		As Reported (Recast)			Including Southampton Drop- Down from the Acquisition Date			Assuming Southampton Drop- Down Had Not Occurred
		(in thousands)
Reconciliation of distributable cash flow and adjusted EBITDA to net income:
Net income		$	8,963		$	6,934		$	6,535
Add:
Depreciation and amortization			6,652			5,523			5,272
Interest expense			2,990			2,975			2,816
Non-cash unit compensation expense			341			341			341
Income tax benefit			(34)			(34)			(34)
Asset impairments and disposals			2,181			1,838			1,838
Acquisition transaction expenses			462			344			286
Adjusted EBITDA		$	21,555		$	17,921		$	17,054
Less:
Interest expense net of amortization of debt issuance costs and original issue discount			2,614			2,543			2,405
Maintenance capital expenditures			893			841			695
Distributable cash flow		$	18,048		$	14,537		$	13,954

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

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

(1)		Prior to any distributions paid to our general partner; based on the number of common and subordinated units outstanding at year-end 2015 of 24,755,233

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 prospectus filed on April 29, 2015 in connection with the
IPO and the Quarterly Report on Form 10-Q for the quarter ended
September 30, 2015. 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
CONSOLIDATED BALANCE SHEETS
(In thousands)
		December 31, 2015			December 31, 2014
					(Predecessor)
Assets
Current assets:
Cash and cash equivalents		$	2,175		$	592
Accounts receivable, net of allowance for doubtful accounts of $85 in 2015 and $61 in 2014			38,684			21,998
Related party receivable			94			—
Inventories			24,245			18,064
Restricted cash			—			11,640
Deferred issuance costs			—			4,052
Prepaid expenses and other current assets			2,123			1,734
Total current assets			67,321			58,080
Property, plant and equipment, net of accumulated depreciation of $64.7 million in 2015 and $40.9 million in 2014			405,582			316,259
Intangible assets, net of accumulated amortization of $7.0 million in 2015 and $1.0 million in 2014			3,399			722
Goodwill			85,615			4,879
Debt issuance costs, net of accumulated amortization of $0.8 million in 2015 and $3.0 million in 2014			5,567			3,594
Other long-term assets			7,063			955
Total assets		$	574,547		$	384,489
Liabilities and Partners’ Capital
Current liabilities:
Accounts payable		$	9,303		$	4,013
Related party payable			11,013			2,354
Accrued and other current liabilities			13,059			8,159
Deferred revenue			485			60
Current portion of interest payable			—			73
Current portion of long-term debt and capital lease obligations			6,523			10,237
Related party current portion of long-term debt			150			—
Total current liabilities			40,533			24,896
Long-term debt and capital lease obligations			191,861			83,838
Related party long-term debt			14,664			—
Long-term interest payable			751			572
Interest rate swap derivatives			—			101
Other long-term liabilities			586			554
Total liabilities			248,395			109,961
Commitments and contingencies
Partners’ capital:
Predecessor equity			—			271,495
Partners’ capital			323,161			—
Total Enviva Partners, LP partners’ capital			323,161			271,495
Noncontrolling partners’ interests			2,991			3,033
Total partners’ capital			326,152			274,528
Total liabilities and partners’ capital		$	574,547		$	384,489

ENVIVA PARTNERS, LP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per unit amounts)
		Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
					(Predecessor)						(Predecessor)
Product sales		$	115,123		$	78,309		$	450,980		$	286,641
Other revenue			1,690			668			6,394			3,495
Net revenue			116,813			78,977			457,374			290,136
Cost of goods sold, excluding depreciation and amortization			92,049			66,171			365,061			251,058
Depreciation and amortization			6,640			4,663			30,692			18,971
Total cost of goods sold			98,689			70,834			395,753			270,029
Gross margin			18,124			8,143			61,621			20,107
General and administrative expenses			4,913			3,455			18,360			10,792
Loss on disposal of assets			2,181			278			2,081			340
Income from operations			11,030			4,410			41,180			8,975
Other income (expense):
Interest expense			(2,933)			(2,105)			(10,551)			(8,724)
Related party interest expense			(57)			—			(1,154)			—
Early retirement of debt obligation			—			—			(4,699)			(73)
Other income			889			6			979			22
Total other expense, net			(2,101)			(2,099)			(15,425)			(8,775)
Income before tax expense			8,929			2,311			25,755			200
Income tax (benefit) expense			(34)			3			2,623			15
Net income			8,963			2,308			23,132			185
Less net loss attributable to noncontrolling partners’ interests			12			18			42			79
Net income attributable to Enviva Partners, LP		$	8,975		$	2,326		$	23,174		$	264
Less: Predecessor loss to May 4, 2015 (prior to IPO)								$	(2,132)
Less: Pre-acquisition income from April 10, 2015 to December 10, 2015 from operations of Enviva Pellets Southampton Drop-Down allocated to General Partner		$	2,030					$	6,264
Enviva Partners, LP partners’ interest in net income from May 5, 2015 to December 31, 2015		$	6,945					$	19,042
Net income per common unit:
Basic		$	0.29					$	0.80
Diluted		$	0.29					$	0.79
Net income per subordinated unit:
Basic		$	0.29					$	0.80
Diluted		$	0.29					$	0.79
Weighted average number of limited partner units outstanding:
Common – basic			12,122						11,988
Common – diluted			12,419						12,271
Subordinated – basic and diluted			11,905						11,905
Distribution declared per limited partner unit for respective periods		$	0.46000					$	1.1630

ENVIVA PARTNERS, LP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
		Year Ended December 31,
		2015			2014
					(Predecessor)
Net income		$	23,132		$	185
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			30,738			19,009
Amortization of debt issuance costs and original issue discount			1,606			2,021
General and administrative expense incurred by Enviva Holdings, LP			475			928
Allocation of income tax expense from Enviva Cottondale Acquisition I, LLC			2,663			—
Early retirement of debt obligation			4,699			73
Loss on disposals and impairments of property, plant and equipment			2,081			269
Loss on deposit of property, plant and equipment			—			71
Unit-based compensation expense			704			2
Change in fair value of interest rate swap derivatives			23			(7)
Change in operating assets and liabilities:
Accounts receivable			(3,518)			3,880
Related party receivable			(94)			—
Prepaid expenses and other assets			57			3,478
Inventories			(22)			1,168
Other long-term assets			(6,051)			279
Accounts payable, accrued liabilities and other current liabilities			5,538			(1,889)
Related party payable			3,657			—
Accrued interest			105			(248)
Deferred revenue			425			(542)
Other long-term liabilities			—			757
Net cash provided by operating activities			66,218			29,434
Cash flows from investing activities:
Purchases of property, plant and equipment			(8,475)			(14,733)
Restricted cash			—			44
Payment of acquisition related costs			(3,573)			—
Proceeds from the sale of equipment			299			25
Net cash used in investing activities			(11,749)			(14,664)
Cash flows from financing activities:
Principal payments on debt and capital lease obligations			(199,638)			(58,136)
Cash paid related to debt issuance costs			(6,287)			—
Termination payment for interest rate swap derivatives			(146)			—
Release of cash restricted for debt service			11,640			—
Cash restricted for debt service			—			(8,600)
IPO proceeds, net			215,050			—
Distribution to Sponsor			(297,185)			—
Cash paid deferred IPO costs			(1,964)			—
Cash distribution to unitholders and equivalent rights paid			(16,883)			—
Proceeds from contributions from sponsor			12,387			—
Proceeds from debt issuance			230,140			49,000
Net cash used in financing activities			(52,886)			(17,736)
Net increase (decrease) in cash and cash equivalents			1,583			(2,966)
Cash and cash equivalents, beginning of period			592			3,558
Cash and cash equivalents, end of period		$	2,175		$	592

ENVIVA PARTNERS, LP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
		Year Ended December 31,
		2015			2014
					(Predecessor)
Non-cash investing and financing activities:
The Partnership acquired property, plant and equipment in non-cash transactions as follows:
Property, plant and equipment acquired and included in accounts payable and accrued liabilities		$	579		$	830
Property, plant and equipment acquired and included in other assets as notes receivable			—			175
Property, plant and equipment acquired under capital leases			—			290
Property, plant and equipment acquired under notes payable			39			—
Property, plant and equipment transferred from prepaid expenses			173			—
Property, plant and equipment transferred from inventory			146			—
Contribution of Enviva Pellets Cottondale, LLC non-cash net assets			122,529			—
Application of deferred IPO costs to partners’ capital			5,913			—
Distributions included in liabilities			58			—
Distributions due to sponsor			518			—
Due to sponsor for Southampton Drop-down			4,484			—
Debt issuance costs included in accrued liabilities			36			—
Distribution of Enviva Pellets Cottondale, LLC assets to sponsor			319			—
Non-cash adjustments to financed insurance and prepaid expenses			105			—
Application of sales tax accrual to fixed assets			73			—
Financed insurance			—			2,157
Grant receivable included in other liabilities			—			187
Contribution to tax accounts of sponsor			35			—
Depreciation capitalized to inventories			211			149
Early retirement of debt obligation:
Deposit applied to principal outstanding under promissory note			—			391
Deposit applied to accrued interest under promissory note			—			154
Non-cash capital contributions from sponsor			339			2,001
Supplemental information:
Interest paid		$	—		$	6,734