Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | Enviva Partners, LP | ||
Entity Central Index Key | 1,592,057 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 208 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Common Units | |||
Entity Common Stock, Shares Outstanding | 12,852,385 | ||
Subordinated Units | |||
Entity Common Stock, Shares Outstanding | 11,905,138 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
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 | |
Related party receivables | 94 | |
Inventories | 24,245 | |
Deferred issuance costs | 0 | |
Prepaid expenses and other current assets | 2,123 | |
Total current assets | 67,321 | |
Property, plant and equipment, net of accumulated depreciation of $64.7 million in 2015 and $40.9 million in 2014 | 405,582 | |
Intangible assets, net of accumulated amortization of $7.0 million in 2015 and $1.0 million in 2014 | 3,399 | |
Goodwill | 85,615 | |
Debt issuance costs, net of accumulated amortization of $0.8 million in 2015 and $3.0 million in 2014 | 5,567 | |
Other long-term assets | 7,063 | |
Total assets | 574,547 | |
Current liabilities: | ||
Accounts payable | 9,303 | |
Related party payables | 11,013 | |
Accrued and other current liabilities | 13,059 | |
Deferred revenue | 485 | |
Current portion of long-term debt and capital lease obligations | 6,523 | |
Related party current portion of long-term debt | 150 | |
Total current liabilities | 40,533 | |
Long-term debt and capital lease obligations | 191,861 | |
Related party long-term debt | 14,664 | |
Long-term interest payable | 751 | |
Other long-term liabilities | 586 | |
Total liabilities | $ 248,395 | |
Commitments and contingencies | ||
Partners' capital: | ||
Common unitholders - public (11,502,934 issued and outstanding at December 31, 2015) | $ 210,488 | |
Common unitholder - sponsor (1,347,161 issued and outstanding at December 31, 2015) | 19,619 | |
Subordinated unitholder - sponsor (11,905,138 issued and outstanding at December 31, 2015) | 133,427 | |
General partner | (40,373) | |
Total Enviva Partners, LP partners' capital | 323,161 | |
Noncontrolling partners' interests | 2,991 | |
Total partners' capital | 326,152 | 274,528 |
Total liabilities and partners' capital | $ 574,547 | |
Enviva, LP and Subsidiaries | ||
Current assets: | ||
Cash and cash equivalents | 592 | |
Accounts receivable, net of allowance for doubtful accounts of $85 in 2015 and $61 in 2014 | 21,998 | |
Inventories | 18,064 | |
Restricted cash | 11,640 | |
Deferred issuance costs | 4,052 | |
Prepaid expenses and other current assets | 1,734 | |
Total current assets | 58,080 | |
Property, plant and equipment, net of accumulated depreciation of $64.7 million in 2015 and $40.9 million in 2014 | 316,259 | |
Intangible assets, net of accumulated amortization of $7.0 million in 2015 and $1.0 million in 2014 | 722 | |
Goodwill | 4,879 | |
Debt issuance costs, net of accumulated amortization of $0.8 million in 2015 and $3.0 million in 2014 | 3,594 | |
Other long-term assets | 955 | |
Total assets | 384,489 | |
Current liabilities: | ||
Accounts payable | 4,013 | |
Related party payables | 2,354 | |
Accrued and other current liabilities | 8,159 | |
Deferred revenue | 60 | |
Current portion of interest payable | 73 | |
Current portion of long-term debt and capital lease obligations | 10,237 | |
Total current liabilities | 24,896 | |
Long-term debt and capital lease obligations | 83,838 | |
Long-term interest payable | 572 | |
Interest rate swap derivatives | 101 | |
Other long-term liabilities | 554 | |
Total liabilities | $ 109,961 | |
Commitments and contingencies | ||
Partners' capital: | ||
Predecessor equity | $ 271,495 | |
Total Enviva Partners, LP partners' capital | 271,495 | |
Noncontrolling partners' interests | 3,033 | |
Total partners' capital | 274,528 | |
Total liabilities and partners' capital | $ 384,489 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 85,400 | |
Property, plant and equipment, accumulated depreciation | 64,738 | |
Intangible assets, accumulated amortization | 7,051 | |
Debt issuance costs, accumulated amortization | $ 800 | |
Common Units-Public | ||
Limited partner units issued | 11,502,934 | |
Limited partner units outstanding | 11,502,934 | |
Common Units-Sponsor | ||
Limited partner units issued | 1,347,161 | |
Limited partner units outstanding | 1,347,161 | |
Subordinated Units | ||
Limited partner units issued | 11,905,138 | |
Limited partner units outstanding | 11,905,138 | |
Enviva, LP and Subsidiaries | ||
Accounts receivable, allowance for doubtful accounts | $ 61,400 | |
Property, plant and equipment, accumulated depreciation | 40,858 | |
Intangible assets, accumulated amortization | 1,028 | |
Debt issuance costs, accumulated amortization | $ 3,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product sales | $ 450,980 | ||
Other revenue | 6,394 | ||
Net revenue | 457,374 | ||
Cost of goods sold, excluding depreciation and amortization | 365,061 | ||
Depreciation and amortization | 30,692 | ||
Total cost of goods sold | 395,753 | ||
Gross margin | 61,621 | ||
General and administrative expenses | 18,360 | ||
Loss on disposal of assets | 2,081 | ||
Income (loss) from operations | 41,180 | ||
Other income (expense): | |||
Interest expense | (10,551) | ||
Related party interest expense | (1,154) | ||
Early retirement of debt obligation | (4,699) | ||
Other income | 979 | ||
Total other expense, net | (15,425) | ||
Income (loss) before income tax expense | 25,755 | ||
Income tax expense | 2,623 | ||
Net income (loss) | 23,132 | $ 185 | $ (5,497) |
Less net loss attributable to noncontrolling partners' interests | 42 | ||
Net income (loss) attributable to Enviva Partners, LP | $ 23,174 | ||
Net income per unit: | |||
Common - basic (in dollars per unit) | $ 0.80 | ||
Common - diluted (in dollars per unit) | 0.79 | ||
Subordinated - basic (in dollars per unit) | 0.80 | ||
Subordinated - diluted (in dollars per unit) | $ 0.79 | ||
Weighted average number of limited partner units outstanding | |||
Common - basic (in units) | 11,988 | ||
Common - diluted (in units) | 12,258 | ||
Subordinated - basic and diluted (in units) | 11,905 | ||
Distribution declared per limited partner unit for respective periods | $ 1.1630 | ||
Enviva, LP and Subsidiaries | |||
Product sales | 286,641 | 176,051 | |
Other revenue | 3,495 | 3,836 | |
Net revenue | 290,136 | 179,887 | |
Cost of goods sold, excluding depreciation and amortization | 251,058 | 152,720 | |
Depreciation and amortization | 18,971 | 11,827 | |
Total cost of goods sold | 270,029 | 164,547 | |
Gross margin | 20,107 | 15,340 | |
General and administrative expenses | 10,792 | 16,150 | |
Loss on disposal of assets | 340 | 223 | |
Income (loss) from operations | 8,975 | (1,033) | |
Other income (expense): | |||
Interest expense | (8,724) | (5,460) | |
Early retirement of debt obligation | (73) | ||
Other income | 22 | 1,019 | |
Total other expense, net | (8,775) | (4,441) | |
Income (loss) before income tax expense | 200 | (5,474) | |
Income tax expense | 15 | 23 | |
Net income (loss) | 185 | (5,497) | |
Less net loss attributable to noncontrolling partners' interests | 79 | 58 | |
Net income (loss) attributable to Enviva Partners, LP | $ 264 | $ (5,439) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Net Parent Investment | General Partner Interest | Common Units-Public | Common Units-Sponsor | Subordinated Units | Noncontrolling Interests | Total |
Balance at the beginning of the period at Dec. 31, 2012 | $ 212,788 | $ 3,170 | $ 215,958 | ||||
Changes in Partners' Capital | |||||||
Contributed capital | 60,945 | 60,945 | |||||
Unit-based compensation | 5 | 5 | |||||
Net (loss) income | (5,439) | (58) | (5,497) | ||||
Balance at the end of the period at Dec. 31, 2013 | 268,299 | 3,112 | 271,411 | ||||
Changes in Partners' Capital | |||||||
Contributed capital | 2,930 | 2,930 | |||||
Unit-based compensation | 2 | 2 | |||||
Net (loss) income | 264 | (79) | 185 | ||||
Balance at the end of the period at Dec. 31, 2014 | 271,495 | 3,033 | 274,528 | ||||
Changes in Partners' Capital | |||||||
Contribution of Enviva Cottondale Acquisition II, LLC | 132,765 | 132,765 | |||||
Net proceeds from initial public offering, net of deferred IPO costs | $ 208,911 | 208,911 | |||||
Net proceeds from IPO, net of deferred IPO costs (in units) | 11,500,000 | ||||||
Distributions to sponsor associated with IPO | (176,702) | (176,702) | |||||
Allocation of net Parent investment to sponsor | (228,514) | $ 7,518 | $ 220,996 | ||||
Allocation of net Parent investment to sponsor (in units) | 405,000 | 11,905,000 | |||||
Distribution to sponsor associated with Enviva Pellets Southampton Drop-down | $ (46,637) | $ (3,015) | $ (88,681) | (138,333) | |||
Issuance of units associated with Enviva pellets Southampton drop-down | $ 15,000 | 15,000 | |||||
Issuance of units associated with Enviva pellets Southampton drop-down (in units) | 942,000 | ||||||
Issuance of units through Long-Term Incentive Plan | $ 42 | 42 | |||||
Issuance of units through Long-Term Incentive Plan (in units) | 3,000 | ||||||
Cash distributions, phantom units and distribution equivalents rights | $ (8,287) | $ (285) | (8,369) | (16,941) | |||
Expenses incurred by sponsor | 3,088 | 3,088 | |||||
Unit-based compensation | 662 | 662 | |||||
Net (loss) income | $ (2,132) | 6,264 | 9,160 | 401 | 9,481 | (42) | 23,132 |
Balance at the end of the period at Dec. 31, 2015 | $ (40,373) | $ 210,488 | $ 19,619 | $ 133,427 | $ 2,991 | $ 326,152 | |
Balance at the end of the period (in units) at Dec. 31, 2015 | 11,502,934 | 1,347,161 | 11,905,138 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 23,132 | $ 185 | $ (5,497) |
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 30,738 | ||
Amortization of debt issuance costs and original issue discount | 1,606 | ||
General and administrative expense incurred by Enviva Holdings, LP | 475 | ||
Allocation of income tax expense from Enviva Cottondale Acquisition I, LLC | 2,663 | ||
Early retirement of debt obligation | 4,699 | ||
Loss on disposals of property, plant and equipment | 2,081 | ||
Unit-based compensation expense | 704 | ||
Change in fair value of interest rate swap derivatives | 23 | ||
Change in operating assets and liabilities: | |||
Accounts receivable | (3,518) | ||
Related party receivable | (94) | ||
Prepaid expenses and other assets | 57 | ||
Inventories | (22) | ||
Other long-term assets | (6,051) | ||
Accounts payable, accrued liabilities and other current liabilities | 5,538 | ||
Related party payable | 3,657 | ||
Accrued interest | 105 | ||
Deferred revenue | 425 | ||
Net cash provided by (used in) operating activities | 66,218 | ||
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (8,475) | ||
Payment of acquisition related costs | (3,573) | ||
Proceeds from the sale of property, plant and equipment | 299 | ||
Net cash used in investing activities | (11,749) | ||
Cash flows from financing activities: | |||
Principal payments on debt and capital lease obligations | (199,638) | ||
Cash paid related to debt issuance costs | (6,287) | ||
Termination payment for interest rate swap derivative | (146) | ||
Release of cash restricted for debt service | 11,640 | ||
IPO proceeds, net | 215,050 | ||
Distributions to sponsor | (297,185) | ||
Cash paid for deferred IPO costs | (1,964) | ||
Cash distributions to unitholders and equivalent rights paid | (16,883) | ||
Proceeds from contributions from sponsor | 12,387 | ||
Proceeds from debt issuance | 230,140 | ||
Net cash (used in) provided by financing activities | (52,886) | ||
Net increase (decrease) in cash and cash equivalents | 1,583 | ||
Cash and cash equivalents, beginning of period | 592 | ||
Cash and cash equivalents, end of period | 2,175 | 592 | |
Non-cash investing and financing activities: | |||
The Partnership acquired property, plant and equipment in non-cash transactions: Property, plant and equipment acquired included in accounts payable and accrued liabilities | 579 | ||
The Partnership acquired property, plant and equipment in non-cash transactions: Property, plant and equipment acquired under notes payable | 39 | ||
The Partnership acquired property, plant and equipment in non-cash transactions: Property, plant and equipment transferred from prepaid expenses | 173 | ||
The Partnership acquired property, plant and equipment in non-cash transactions: 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 | ||
Distribution due to sponsor | 5,002 | ||
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 | ||
Contribution of tax accounts to sponsor | 35 | ||
Depreciation capitalized to inventories | 211 | ||
Non-cash capital contributions from sponsor | 339 | ||
Supplemental information: | |||
Interest paid, net of capitalized interest of $00 million, $0 million and $1.4 million, respectively | 9,933 | ||
Enviva, LP and Subsidiaries | |||
Cash flows from operating activities: | |||
Net income | 185 | (5,497) | |
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 19,009 | 11,887 | |
Amortization of debt issuance costs and original issue discount | 2,021 | 1,009 | |
General and administrative expense incurred by Enviva Holdings, LP | 928 | ||
Early retirement of debt obligation | 73 | ||
Loss on disposals of property, plant and equipment | 340 | 223 | |
Unit-based compensation expense | 2 | 5 | |
Change in fair value of interest rate swap derivatives | (7) | (36) | |
Change in operating assets and liabilities: | |||
Accounts receivable | 3,880 | (15,977) | |
Prepaid expenses and other assets | 3,478 | 1,088 | |
Inventories | 1,168 | (8,090) | |
Other long-term assets | 279 | ||
Accounts payable, accrued liabilities and other current liabilities | (1,889) | 8,301 | |
Accrued interest | (248) | (713) | |
Deferred revenue | (542) | 471 | |
Other long-term liabilities | 757 | (248) | |
Net cash provided by (used in) operating activities | 29,434 | (7,577) | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (14,733) | (124,732) | |
Restricted cash | 44 | 8,910 | |
Proceeds from the sale of property, plant and equipment | 25 | 23 | |
Net cash used in investing activities | (14,664) | (115,799) | |
Cash flows from financing activities: | |||
Principal payments on debt and capital lease obligations | (58,136) | (7,537) | |
Cash paid related to debt issuance costs | (23) | ||
Cash restricted for debt service | (8,600) | (540) | |
Proceeds from contributions from sponsor | 58,335 | ||
Proceeds from debt issuance | 49,000 | 65,000 | |
Net cash (used in) provided by financing activities | (17,736) | 115,235 | |
Net increase (decrease) in cash and cash equivalents | (2,966) | (8,141) | |
Cash and cash equivalents, beginning of period | $ 592 | 3,558 | 11,699 |
Cash and cash equivalents, end of period | 592 | 3,558 | |
Non-cash investing and financing activities: | |||
The Partnership acquired property, plant and equipment in non-cash transactions: Property, plant and equipment acquired included in accounts payable and accrued liabilities | 830 | 10,581 | |
The Partnership acquired property, plant and equipment in non-cash transactions: Property, plant and equipment acquired included in other assets as notes receivable | 175 | ||
The Partnership acquired property, plant and equipment in non-cash transactions: Property, plant and equipment acquired under capital leases | 290 | 259 | |
Financed insurance | 2,157 | 2,011 | |
Grant receivable included in other liabilities | 187 | ||
Depreciation capitalized to inventories | 149 | 401 | |
Capitalized debt issuance costs and original issue discount | 1,011 | ||
Early retirement of debt obligation: Deposit applied to principal outstanding under promissory note | 391 | ||
Early retirement of debt obligation: Deposit applied to accrued interest under promissory note | 154 | ||
Non-cash capital contributions from sponsor | 2,001 | 2,610 | |
Supplemental information: | |||
Interest paid, net of capitalized interest of $00 million, $0 million and $1.4 million, respectively | $ 6,734 | $ 3,745 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Capitalized interest | $ 0 | ||
Enviva, LP and Subsidiaries | |||
Capitalized interest | $ 0 | $ 1.4 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Business and Basis of Presentation | |
Business and Basis of Presentation | (1) Business and Basis of Presentation Enviva Partners, LP (the "Partnership") is a Delaware limited partnership formed on November 12, 2013, as a wholly owned subsidiary of Enviva Holdings, LP (the "sponsor"). Through its interests in Enviva, LP (the "Predecessor" or "Enviva LP") and Enviva GP, LLC, the general partner of the Predecessor, the Partnership supplies utility-grade wood pellets to major power generators under long-term, take-or-pay off-take contracts. The Partnership procures wood fiber and processes it into utility-grade wood pellets. The Partnership loads the finished wood pellets into railcars, trucks and barges that are transported to deep-water marine terminals, where they are received, stored and ultimately loaded onto oceangoing vessels for transport to the P artnership's principally Northern European customers. The Partnership operates six industrial-scale wood pellet production plants located in the Mid-Atlantic and Gulf Coast regions of the United States. Wood pellets are exported from a wholly-owned deep-water marine terminal in Chesapeake, Virginia and from third-party deep-water marine terminals in Mobile, Alabama and Panama City, Florida under long-term contracts. On May 4, 2015, the Partnership completed an initial public offering (the "IPO") of common units representing limited partner interests in the Partnership (see Note 2, Initial Public Offering ). Prior to the closing of the IPO, the sponsor contributed to the Partnership its interests in the Predecessor, Enviva GP, LLC, and Enviva Cottondale Acquisition II, LLC ("Acquisition II"), which was the owner of Enviva Pellets Cottondale, LLC ("Enviva Pellets Cottondale"), which owns a wood pellet production plant in Cottondale, Florida (the "Cottondale plant"). The primary assets contributed to the Partnership by the sponsor included five industrial-scale wood pellet production plants and a wholly-owned deep-water terminal and long-term contractual arrangements to sell the wood pellets produced at the plants to third parties. Until April 9, 2015, Enviva MLP Holdco, LLC, a wholly owned subsidiary of the sponsor, was the owner of the Predecessor, and Enviva Cottondale Acquisition I, LLC ("Acquisition I"), a wholly owned subsidiary of the sponsor, was the owner of Acquisition II. On January 5, 2015, the sponsor acquired Green Circle Bio Energy, Inc. ("Green Circle"), which owned the Cottondale plant. Acquisition I contributed Green Circle to the Partnership in April 2015 in exchange for subordinated units in the Partnership. Prior to such contribution, the sponsor converted Green Circle into a Delaware limited liability company and changed the name of the entity to "Enviva Pellets Cottondale, LLC." In connection with the closing of the Senior Secured Credit Facilities (as defined below) (see Note 10, Long-Term Debt and Capital Lease Obligations ), on April 9, 2015, the Partnership, the Predecessor and the sponsor executed a series of transactions that were accounted for as common control transactions and are referred to as the "Reorganization:" · Under a Contribution Agreement, the Predecessor conveyed 100% of the outstanding limited liability company interest in Enviva Pellets Southampton, LLC ("Enviva Pellets Southampton"), which owns a wood pellet production plant in Southampton County, Virginia (the "Southampton plant"), to a joint venture between the sponsor and Hancock Natural Resource Group, Inc. and certain other affiliates of John Hancock Life Insurance Company (the "Hancock JV"), which is consolidated by the sponsor; and · Under a separate Contribution Agreement by and among the sponsor, Enviva MLP Holdco, LLC, Acquisition I, the Predecessor and the Partnership, the parties executed the following transactions: · The Predecessor distributed cash and cash equivalents of $1.7 million and accounts receivable of $2.4 million to the sponsor; · The sponsor contributed to the Partnership 100% of the outstanding limited liability company interest in Acquisition II, the former owner of Enviva Pellets Cottondale (formerly Green Circle Bio Energy, Inc.), which owns the Cottondale plant; · The sponsor contributed 100% of the outstanding interests in each of the Predecessor and Enviva GP, LLC to the Partnership; and · The Partnership used $82.2 million of the proceeds from borrowings under the Original Credit Facilities (as defined below) to repay all outstanding indebtedness under the Predecessor's $120.0 million Prior Senior Secured Credit Facilities (as defined below) and related accrued interest (see Note 10, Long-Term Debt and Capital Lease Obligations ). As a result of the Reorganization, the Partnership became the owner of the Predecessor, Enviva GP, LLC and Acquisition II. In connection with the closing of the IPO, under a Contribution Agreement by and among the sponsor, Enviva MLP Holdco, LLC, Acquisition I, the Predecessor and the Partnership, Acquisition II merged into the Partnership and the Partnership contributed its interest in Enviva Pellets Cottondale to the Predecessor. In connection with the closing of the Senior Secured Credit Facilities (see Note 10, Long-Term Debt and Capital Lease Obligations ), on December 11, 2015, under the terms of a Contribution Agreement by and among the Partnership and the Hancock JV, the Hancock JV contributed to Enviva LP, all of the issued and outstanding limited liability interests in Enviva Pellets Southampton for total consideration of $131.0 million. The acquisition (the "Southampton Drop-Down") included the Southampton plant, a ten-year 500,000 metric tons per year ("MTPY") take-or-pay off-take contract and a matching ten-year shipping contract. The purchase price for the Southampton Drop-Down was financed with (a) $36.5 million of incremental borrowings under the Credit Agreement (as defined below), (b) the issuance to a wholly owned subsidiary of the sponsor of 942,023 common units at a value of $15.92 per unit, or $15.0 million of equity proceeds, and (c) $79.5 million of cash. The Partnership accounted for the Southampton Drop-Down as a combination of entities under common control at historical cost in a manner similar to a pooling of interests. Accordingly, the consolidated financial statements for periods prior to the Southampton Drop-Down were retrospectively recast to reflect the acquisition as if it had occurred on April 9, 2015, the date Southampton was originally conveyed to the sponsor by Enviva, LP. As of December 31, 2015, the Partnership has 99.999% ownership of the following: · Enviva, LP Enviva, LP has 100% ownership of the following: · Enviva Pellets Amory, LLC ("Enviva Pellets Amory") · Enviva Pellets Ahoskie, LLC ("Enviva Pellets Ahoskie") · Enviva Port of Chesapeake, LLC ("Enviva Port of Chesapeake") · Enviva Pellets Northampton, LLC ("Enviva Pellets Northampton") · Enviva Pellets Southampton, LLC ("Enviva Pellets Southampton") · Enviva Pellets Cottondale, LLC ("Enviva Pellets Cottondale") · Enviva Materials, LLC ("Enviva Materials") · Enviva Energy Services, LLC ("Enviva Energy Services") · Enviva Pellets Perkinston, LLC Enviva LP had 67% ownership to the following: · Enviva Pellets Wiggins, LLC ("Enviva Pellets Wiggins") During 2013, the sponsor contributed $58.3 million to the Partnership for the purpose of the construction of certain facilities. During 2014 and 2015, the sponsor did not contribute any amounts for the purpose of the construction of certain facilities. The accompanying consolidated financial statements ("financial statements") include the accounts of the Predecessor and its subsidiaries and were prepared using the Predecessor's historical basis. Prior to the IPO, certain of the assets and liabilities of the Predecessor were transferred to the Partnership within the sponsor's consolidated group in a transaction under common control and, as such, the consolidated historical financial statements of the Predecessor are presented as the Partnership's historical financial statements as the Partnership believes they provide a representation of management's ability to execute and manage its business plan. The financial statements include all revenues, costs, assets and liabilities attributed to the Predecessor. The financial statements for periods prior to the Reorganization have been retroactively recast to reflect the contribution of the sponsor's interests in the Predecessor and Enviva GP, LLC as if the contributions had occurred at the beginning of the periods presented and the contribution of the sponsor's interests in Acquisition II as if the contribution occurred on January 5, 2015, the date Acquisition II was acquired by the sponsor. The following table outlines the changes in consolidated net assets resulting from the contribution of Acquisition II to the Partnership on April 9, 2015: Assets: Cash $ Accounts receivable Inventories Prepaid expenses and other current assets Property, plant and equipment, net Intangibles, net Goodwill Other assets ​ ​ ​ ​ ​ Total assets ​ ​ ​ ​ ​ Liabilities: Accounts payable Accrued liabilities Long-term debt and capital leases Other liabilities — ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ Net assets contributed to Partnership $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Initial Public Offering
Initial Public Offering | 12 Months Ended |
Dec. 31, 2015 | |
Initial Public Offering. | |
Initial Public Offering | (2) Initial Public Offering On May 4, 2015, the Partnership completed an IPO of 11,500,000 common units, including common units issued upon exercise of the underwriter's option, representing limited partner interests in the Partnership at a price to the public of $20.00 per unit ($18.80 per common unit, net of underwriting discounts and commissions) and constituting approximately 48.3% of the Partnership's outstanding limited partner interests. The IPO was registered pursuant to a registration statement on Form S-1 originally filed on October 27, 2014, as amended (Registration No. 333-199625), that was declared effective by the SEC on April 28, 2015. The net proceeds from the IPO of approximately $215.1 million after deducting the underwriting discount and structuring fee were used to (i) repay intercompany indebtedness related to the acquisition of Green Circle in the amount of approximately $83.0 million and (ii) distribute approximately $86.7 million to the sponsor related to its contribution of assets to the Partnership in connection with the IPO, with the Partnership retaining $45.4 million for general partnership purposes, including offering expenses. In connection with the closing of the IPO, the Partnership issued to the sponsor 405,138 common units and all of the Partnership's subordinated units, representing 51.7% of the Partnership's limited partner interests. Enviva Partners GP, LLC, the Partnership's general partner and a wholly owned subsidiary of the sponsor (the "General Partner"), owns all the outstanding incentive distribution rights ("IDRs"). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies | |
Significant Accounting Policies | (3) Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The consolidated financial statements include the accounts of the Partnership and its subsidiaries. All intercompany accounts and transactions have been eliminated. As the acquisition of Enviva Pellets Cottondale and the Southampton Drop-Down represented transfers of entities under common control, the consolidated financial statements and related information presented herein have been recast to include the historical results of Enviva Pellets Cottondale effective January 5, 2015, the date the Partnership's sponsor acquired Acquisition II, and Enviva Pellets Southampton effective April 9, 2015, the date Enviva Pellets Southampton was originally conveyed to Hancock JV. Certain amounts for the years ended December 31, 2014 and 2013 have been reclassified to conform to the current presentation. Common Control Transactions Assets and businesses acquired from the Partnership's sponsor and its subsidiaries are accounted for as common control transactions whereby the net assets acquired are combined at their historical costs and financial statements are adjusted retrospectively to reflect the transaction as if it occurred on the earliest date during which the entities were under common control. If any recognized consideration transferred in such a transaction exceeds the carrying value of the net assets acquired, the excess is treated as a capital distribution to the Partnership's General Partner. If the carrying value of the net assets acquired exceeds any recognized consideration transferred including, if applicable, the fair value of any limited partner units issued, then that excess is treated as a capital contribution from the General Partner. To the extent that such transactions require prior periods to be recast, historical net equity amounts prior to the transaction date are attributed to the "General Partner." Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the Partnership's consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Segment and Geographic Information Operating segments are defined as components of an enterprise about which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Partnership views its operations and manages its business as one operating segment. All long-lived assets of the Partnership are located in the United States. Other Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of partners' capital but are excluded from net income (loss). The Partnership had no components of other comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013. Net Income per Limited Partner Unit The Partnership computes net income per unit using the two-class method as the Partnership has more than one class of participating securities, including common units, subordinated units, certain equity based-compensation awards and IDRs. The Partnership bases its calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive time-based and performance-based phantom units on our common units. The General Partner owns a non-economic interest in the Partnership, which does not entitle it to receive cash distributions, but owns all of the outstanding IDRs as of December 31, 2015. Pursuant to the partnership agreement, IDRs represent the right to receive increasing percentages (ranging from 15% to 50%) of quarterly distributions from operating surplus after the minimum quarterly distribution and certain target distribution levels have been achieved. No amounts were paid to holders of the IDRs in 2015. Net income per unit applicable to limited partners (including the holder of subordinated units) is computed by dividing limited partners' interest in net income by the weighted-average number of outstanding common and subordinated units. Income Taxes The Partnership and sponsor are pass-through entities and are not considered taxable entities for federal income tax purposes. Therefore, there is not a provision for U.S. federal and most state income taxes in the accompanying consolidated financial statements. The Partnership's net income or loss is allocated to its partners in accordance with the partnership agreement. The partners are taxed individually on their share of the Partnership's earnings. At December 31, 2015 and December 31, 2014, the Partnership and sponsor did not have any liabilities for uncertain tax position or gross unrecognized tax benefit. Some states impose franchise and capital taxes on the Partnership. Such taxes are not material to the consolidated financial statements. Income tax expense for the year ended December 31, 2015 includes expense incurred by Acquisition II prior to converting to a nontaxable entity. Cash and Cash Equivalents Cash and cash equivalents consist of short-term, highly liquid investments readily convertible into cash with an original maturity of three months or less. Restricted Cash The Predecessor funded a restricted debt service reserve account in connection with the Prior Senior Secured Credit Facilities. The restricted debt service reserve account was released as a result of the repayment in full of the Prior Senior Secured Credit Facilities on April 9, 2015. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. In establishing an allowance for doubtful accounts, management considers historical losses adjusted to take into account current market conditions and customers' financial condition, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Partnership reviews the aging of accounts receivables monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. There were no bad debt write-offs during the years ended December 31, 2015, 2014 and 2013. The Partnership has an allowance for doubtful accounts in the amount of $85.4 and $61.4 as of December 31, 2015 and 2014, respectively. The Partnership does not have any off-balance-sheet credit exposure related to its customers. Inventories Inventories consist of raw materials, work-in-progress, consumable tooling and finished goods. Fixed production overhead, including related depreciation expense, is allocated to inventory based on the normal capacity of the facilities. To the extent the Partnership does not achieve normal production levels, the Partnership charges such under absorption of fixed overhead to operations. Consumable tooling consists of spare parts and tooling to be consumed in the production process. Spare parts are expensed as used and tooling items are amortized to expense over an estimated service life. Inventories are stated at the lower of cost or market using the first-in, first-out method ("FIFO") for all inventories. Revenue Recognition The Partnership primarily earns revenue by supplying wood pellets to customers under long-term, U.S. dollar-denominated contracts (also referred to as "off-take" contracts). The Partnership refers to the structure of the contracts as "take-or-pay" because they include a firm obligation to take a fixed quantity of product at a stated price and provisions that ensure the Partnership will be made whole in the case of the customer's failure to accept all or a part of the contracted volumes or for termination by the customer. Each contract defines the annual volume of wood pellets that the customer is required to purchase and the Partnership is required to sell, the fixed price per metric ton for product satisfying a base net calorific value and other technical specifications, and, in some instances, provides for price adjustments for actual product specification and changes in underlying costs. Revenues from the sale of wood pellets are recognized when the goods are shipped, title passes, the sales price to the customer is fixed and collectability is reasonably assured. Depending on the specific off-take contract, shipping terms are either Cost, Insurance and Freight ("CIF") or Free on Board ("FOB"). Under a CIF contract, the Partnership procures and pays for shipping costs, which include insurance and all other charges, up to the port of destination for the customer. These costs are included in the price to the customer and, as such, are included in revenue and cost of goods sold. Under an FOB contract, the customer is directly responsible for shipping costs. In some cases, the Partnership may purchase shipments of product from a third-party supplier and resell them in back-to-back transactions that immediately transfer title and risk of loss to the ultimate purchaser. Thus, the revenue from these transactions is recorded net of costs paid to the third-party supplier. The Partnership records this revenue as "Other revenue." In instances when a customer requests the cancellation, deferral or acceleration of a shipment, the customer may pay a fee, including reimbursement of any incremental costs incurred by the Partnership, which is included in revenue. Cost of Goods Sold Cost of goods sold includes the costs to produce and deliver wood pellets to customers. Raw material, production and distribution costs associated with delivering wood pellets to the ports and third-party wood pellet purchase costs are capitalized as a component of inventory. Fixed production overhead, including the related depreciation expense, is allocated to inventory based on the normal capacity of the facilities. These costs are reflected in cost of goods sold when inventory is sold. Distribution costs associated with shipping wood pellets to customers and amortization are expensed as incurred. Inventory is recorded using FIFO, which requires the use of judgment and estimates. Given the nature of the inventory, the calculation of cost of goods sold is based on estimates used in the valuation of the FIFO inventory and in determining the specific composition of inventory that is sold to each customer. Additionally, the purchase price of acquired customer contracts that were recorded as intangible assets are amortized as deliveries are made during the contract term. Derivative Instruments The Predecessor used derivative financial instruments to manage its exposure to fluctuations in interest rates on long-term debt as required per the terms of the Prior Senior Secured Credit Facilities (see Note 10, Long-Term Debt and Capital Lease Obligations ). The Partnership does not hold or issue derivative financial instruments for trading or speculative purposes. The Predecessor accounted for the interest rate swaps by recognizing all derivative financial instruments on the consolidated balance sheets at fair value. The Predecessor's interest rate swap agreements were not designated as hedges; therefore, the gain or loss was recognized in the consolidated statements of operations in interest expense. In connection with the repayment of the Prior Senior Secured Credit Facilities in April 2015 (see Note 10, Long-Term Debt and Capital Lease Obligations ), the Predecessor terminated the interest rate swaps and paid a termination fee of $0.1 million. The Partnership does not currently hold any interest rate swaps or derivative financial instruments. Property, Plant and Equipment Property, plant and equipment are recorded at cost, which includes the fair values of assets acquired. Equipment under capital leases are stated at the present value of minimum lease payments. Useful lives of assets are based on historical experience and are adjusted when changes in the expected physical life of the asset, its planned use, technological advances, or other factors show that a different life would be more appropriate. Changes in useful lives are recognized prospectively. Depreciation and amortization are calculated using the straight-line method based on the estimated useful lives of the related assets. Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Construction in progress primarily represents expenditures for the development and expansion of facilities. Capitalized interest cost and all direct costs, which include equipment and engineering costs related to the development and expansion of facilities, are capitalized as construction in progress. Depreciation is not recognized for amounts in construction in progress. Normal repairs and maintenance costs are expensed as incurred. Amounts incurred that extend an asset's useful life, increase its productivity or add production capacity are capitalized. Direct costs, such as outside labor, materials, internal payroll and benefit costs, incurred during the construction of a new plant are capitalized; indirect costs are not capitalized. The principal useful lives are as follows: Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years Costs and accumulated depreciation applicable to assets retired or sold are removed from the accounts, and any resulting gain or loss is included in the consolidated statement of operations. Debt Issuance Costs and Original Issue Discount Debt issuance costs represent legal fees and other direct expenses associated with securing the Partnership's credit agreements and are capitalized on the consolidated balance sheets as other long-term assets. Original issue discounts are recorded on the consolidated balance sheets within the carrying amount of long-term debt. Debt issuance costs and original issue discount are amortized over the term of the related debt using straight line amortization, which approximates the effective interest rate method. The Partnership and the Predecessor primarily incurred debt issuance costs and original issue discount in connection with the Original Credit Facilities, Incremental Credit Facilities and Prior Senior Secured Credit Facilities, respectively (see Note 10, Long-Term Debt and Capital Lease Obligations ). Debt issuance costs, net at December 31, 2015 and 2014, were $5.6 million and $3.6 million, respectively. Gains or losses on debt extinguishment include any associated unamortized debt issuance costs and original issue discount. Capitalized Interest The Predecessor capitalized interest cost incurred on debt during the construction of major projects. A reconciliation of total interest cost to interest expense as reported in the consolidated statements of operations for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 Interest cost capitalized to construction in progress $ — $ — $ Interest cost, including related party, charged to operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total interest cost $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill Goodwill represents the purchase price paid for acquired businesses in excess of the identifiable acquired assets and assumed liabilities. Goodwill is not amortized, but is tested for impairment annually and whenever an event occurs or circumstances change such that it is more likely than not that the fair value of the reporting unit is less than its carrying amounts. At December 31, 2015 and 2014, the Partnership has identified one reporting unit which corresponded to the Partnership's one segment and has selected the fourth fiscal quarter to perform its annual goodwill impairment test. The Partnership first performs a qualitative assessment to determine whether it is necessary to perform quantitative testing. If this initial qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is more than its carrying value, goodwill is not considered impaired and the Partnership is not required to perform the two-step impairment test. Qualitative factors considered in this assessment include (i) macroeconomic conditions, (ii) past, current and projected future financial performance, (iii) industry and market considerations, (iv) changes in the costs of raw materials, fuel and labor and (v) entity-specific factors such as changes in management or customer base. If the results of the qualitative assessment indicate that it is more likely than not that goodwill is impaired, the Partnership will perform a two-step impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. For the years ended December 31, 2015 and 2014, the Partnership applied the qualitative test and determined that it was more likely than not that the estimated fair value of the reporting unit substantially exceeded the related carrying value, and, accordingly, was not required to apply the two-step impairment test. The Partnership did not record any goodwill impairment for the years ended December 31, 2015 and 2014 (see Note 9, Goodwill and Other Intangible Assets ). In making this qualitative analysis for the years ended December 31, 2015, and 2014, the Partnership evaluated the following economic factors: · The Partnership's consolidated financial results reflect continued improved financial performance in 2015 compared to 2014 as reflected by increases in revenue and metric tons sold, as well as the generation of positive net income in 2015 and 2014. · The Partnership continued its expansion of production capacity with the acquisition of Enviva Pellets Cottondale in April 2015 and the acquisition of Enviva Pellets Southampton in December 2015. · The Partnership now benefits from six production plants located in the Southeastern U.S. · In May 2015, the Partnership received proceeds of approximately $215.1 million from the IPO and its market capitalization exceeds the carrying value of its net assets as of December 31, 2015. · The Partnership began deliveries under two new customer contracts in 2013. As a result of the Southampton Drop-Down, the Partnership acquired a new ten-year customer contract which will commence in 2016 and ramp to 500,000 MTPY. · The Partnership has had no cancellations of contracts. Intangible Assets In April 2015, the sponsor contributed net assets to the Partnership associated with the acquisition of Green Circle in January 2015, which included intangible assets related to favorable customer contracts (see Note 1, Business and Basis of Presentation ). The Partnership also recorded payments made to acquire a six-year wood pellet off-take contract with a European utility in 2010 as an intangible asset. These costs are recoverable through the future revenue streams generated from the customer contracts and are closely related to the revenue from the customer contracts. These costs are recorded as an asset and charged to expense as the revenue is recognized (see Note 9, Goodwill and Other Intangible Assets ). All other costs, such as general and administrative expenses and costs associated with the negotiation of a contract that is not consummated, are charged to expense as incurred. Deferred Issuance Costs Deferred issuance costs primarily consist of legal, accounting, printing and other fees relating to the IPO. These costs were offset against the proceeds of the IPO. As of December 31, 2015 and 2014, the Partnership had $0 and $4.1 million of deferred issuance costs, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist primarily of prepaid insurance. Other Long-Term Assets Other long-term assets primarily consist of a deposit made in accordance with the terms of a new customer contract and security deposits for utilities. Advertising Costs incurred related to advertising of the Partnership's products and services are expensed as incurred. Unit-Based Compensation Employees, consultants and directors of the General Partner and any of its affiliates are eligible to receive awards under the Enviva Partners, LP Long-Term Incentive Plan. For accounting purposes, units granted to employees of the Partnership's affiliates are treated as if they are distributed by the Partnership. In May, June and July 2015, phantom units in tandem with corresponding distribution equivalent rights ("DERs") were granted to employees of Enviva Management Company, LLC who provide services to the Partnership and to certain non-employee directors of the General Partner. These awards vest subject to the satisfaction of service requirements or the achievement of certain performance goals, following which common units in the Partnership will be delivered to the holder of the phantom units. Affiliate entities recognize compensation expense for the phantom units awarded to their employees and a portion of that expense is allocated to the Partnership (see Note 11, Related Party Transactions-Management Services Agreement and Note 15, Equity-Based Awards ). The Partnership's outstanding unit-based awards do not have a cash option and are classified as equity on the Partnership's consolidated balance sheets. The Partnership also recognizes compensation expense for units awarded to non-employee directors. Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment and amortizable intangible assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, the Partnership first compares undiscounted cash flows expected to be generated by that asset or asset group to such asset or asset group's carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Partnership did not record any impairments for the years ended December 31, 2015, 2014 and 2013 (see Note 9, Goodwill and Other Intangible Assets ). Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Fair Value Measurements The Partnership applies authoritative accounting guidance for fair value measurements of financial and nonfinancial assets and liabilities. The Partnership uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Partnership determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted, quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Recent and Pending Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases . Under the new pronouncement, an entity is required to recognize assets and liabilities arising from a lease for all leases with a maximum possible term of more than 12 months. A lessee is required to recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the leased asset (the underlying asset) for the lease term. For most leases of assets other than property (for example, equipment, aircraft, cars, trucks), a lessee would recognize a right-of-use asset and a lease liability, initially measured at the present value of lease payments and recognize the unwinding of the discount on the lease liability as interest separately from the amortization of the right-of-use asset. For most leases of property (that is, land and/or a building or part of a building), a lessee would recognize a right-of-use asset and a lease liability, initially measured at the present value of lease payments and recognize a single lease cost, combining the unwinding of the discount on the lease liability with the amortization of the right-of-use asset, on a straight-line basis. The new guidance is effective for public entities for fiscal year and interim periods within those fiscal years beginning after December 15, 2018. Upon adoption, a lessee and a lessor would recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. The Partnership is in the process of evaluating the impact of adoption on its consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments , to amend the guidance for amounts that are adjusted in a merger or acquisition. The standard eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement period adjustments that occur in periods after a business combination is consummated. The ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Partnership does not expect adoption to have a material effect on the consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . The standard simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value for entities using the first-in, first-out method of valuing inventory. ASU No. 2015-11 eliminates other measures required by current guidance to determine net realizable value. ASU No. 2015-11 is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, and early adoption is permitted. The Partnership does not expect adoption to have a material effect on the carrying value of inventory. In April 2015, the FASB issued ASU No. 2015-06, Earnings Per Share (Topic 260)—Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions—a consensus of the FASB Emerging Issues Task Force (EITF) . The amendments in ASU No. 2015-06 apply to master limited partnerships subject to the Master Limited Partnerships Subsections of Topic 260 that receive net assets through a dropdown transaction that is accounted for under the Transactions Between Entities Under Common Control Subsections of Subtopic 805-50, Business Combinations—Related Issues. When a general partner transfers, or "drops down," net assets to a master limited partnership and that transaction is accounted for as a transaction between entities under common control, the statements of operations of the master limited partnership are adjusted retrospectively to reflect the dropdown transaction as if it occurred on the earliest date during which the entities were under common control. The amendments in ASU No. 2015-06 specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. In that circumstance, the previously reported earnings per unit of the limited partners (which is typically the earnings per unit measure presented in the financial statements) would not change as a result of the dropdown transaction. Qualitative disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method also are required. The amendments in ASU No. 2015-06 are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The amendments in ASU No. 2015-06 should be applied retrospectively for all financial statements presented. The Partnership has evaluated this guidance and determined it is consistent with its policy and historical presentation of earnings per unit. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs . ASU No. 2015-03 requires the presentation of debt issuance costs in the balance sheet as a reduction from the related debt liability rather than as an asset. The amortization of such costs will continue to be reported as interest expense. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and allows early adoption for financial statements that have not been previously issued. The update requires retrospective application upon adoption. Upon adoption, the Partnership expects to reclassify amounts included as debt issuance costs within total assets on the consolidated balance sheet to a reduction of long-term debt within total liabilities on the consolidated balance sheet for all periods presented. The adoption is not expected to have an impact on the periodic amount amortized. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The new standard reduces the number of consolidation models and simplifies their application. The amendments in ASU No. 2015-02 are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships and similar legal entities. The amendments simplify the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments (1) eliminate the presumption that a general partner should consolidate a limited partnership, (2) eliminate the indefinite deferral of FASB Statement No. 167, thereby reducing the number of variable interest entity ("VIE") consolidation models from four to two (including the limited partnership consolidation model), (3) clarify when fees paid to a decision maker should be a factor to include in the consolidation of VIEs, (4) amend the guidance for assessing how related party relationshi |
Significant Risks and Uncertain
Significant Risks and Uncertainties, Including Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Significant Risks and Uncertainties, Including Business and Credit Concentrations | |
Significant Risks and Uncertainties, Including Business and Credit Concentrations | (4) Significant Risks and Uncertainties, Including Business and Credit Concentrations The Partnership's business is significantly impacted by greenhouse gas emission and renewable energy legislation and regulations in the European Union (the "E.U."). If the E.U. significantly modifies such legislation and regulations, the Partnership's ability to enter into new contracts as the current contracts expire may be materially affected. The Partnership's primary industrial customers are located in the United Kingdom and Belgium. Three customers accounted for 93% of the Partnership's product sales in 2015, three customers accounted for 97% of the Partnership's product sales in 2014 and four customers accounted for 99% of the Partnership's product sales in 2013. The following table shows product sales from third-party customers that accounted for 10% or a greater share of consolidated product sales for each of the three years ended December 31: 2015 2014 2013 (Predecessor) (Predecessor) Customer A % % % Customer B % % % Customer C % % % Customer D — — % The Partnership's cash and cash equivalents are placed in or with various financial institutions. The Partnership has not experienced any losses on such accounts and does not believe it has any significant risk in this area. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | (5) Property, Plant and Equipment Property, plant and equipment consisted of the following at December 31: 2015 2014 (Predecessor) Land $ $ Land improvements Buildings Machinery and equipment Vehicles Furniture and office equipment ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Total property, plant and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total depreciation expense was $24.7 million, $18.7 million and $11.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. At December 31, 2015, the Partnership had assets under capital leases with a cost and related accumulated depreciation of $0.8 million and $0.4 million, respectively and at December 31, 2014, the Partnership had assets under capital leases with a cost and related accumulated depreciation of $1.1 million and $0.7 million, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | |
Inventories | (6) Inventories Inventories consisted of the following at December 31: 2015 2014 (Predecessor) Raw materials and work-in-process $ $ Consumable tooling Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Total inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments. | |
Derivative Instruments | (7) Derivative Instruments The Partnership used interest rate swaps that met the definition of a derivative instrument to manage changes in interest rates on its variable-rate debt instruments. The Prior Credit Agreement required the Predecessor to swap a minimum of 50% of the term loan balance outstanding under the Prior Senior Secured Credit Facilities. In connection with the issuance of the Prior Senior Secured Credit Facilities (see Note 10, Long-Term Debt and Capital Lease Obligations ), the Predecessor entered into floating-to-fixed interest rate swaps (the Partnership received a floating market rate and paid a fixed interest rate) to manage the interest rate exposure related to the Prior Senior Secured Credit Facilities. All indebtedness outstanding under the Prior Senior Secured Credit Facilities was repaid in full on April 9, 2015, and the related interest rate swaps were terminated and paid the Predecessor a termination fee of $0.1 million. For the years ended December 31, 2015, 2014 and 2013, the Partnership recorded an insignificant amount as interest expense related to the change in fair value of the interest rate swaps. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements | |
Fair Value Measurements | (8) Fair Value Measurements The amounts reported in the consolidated balance sheets as cash and cash equivalents, restricted cash, accounts receivable, related party receivable, prepaid expenses and other assets, accounts payable, related party payable and accrued liabilities approximate fair value because of the short-term nature of these instruments. Interest rate swaps and long-term and short-term debt are classified as Level 2 instruments due to the usage of market prices not quoted on active markets and other observable market data. The carrying amount of Level 2 instruments approximates fair value as of December 31, 2015 and 2014. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | (9) Goodwill and Other Intangible Assets Intangible Assets Intangible assets consisted of the following at: December 31, 2015 December 31, 2014 (Predecessor) Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Favorable customer contracts 3 years $ $ ) $ $ — $ — $ — Wood pellet contract 6 years ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible assets include favorable customer contracts associated with the acquisition of Green Circle in January 2015. The Partnership also recorded payments made to acquire a six-year wood pellet contract with a European utility in 2010 as an intangible asset. These costs are recoverable through the future revenue streams generated from the customer contracts and are closely related to the revenue from the customer contracts. The Partnership amortizes the customer contract intangible assets as deliveries are completed during the respective contract terms. During the years ended December 31, 2015, 2014 and 2013, amortization of $6.0 million, $0.3 million and $0.3 million, respectively, was included in cost of goods sold in the accompanying consolidated statements of operations. The estimated aggregate maturities of amortization expense for the next five years are as follows: Year Ending December 31: 2016 $ 2017 2018 2019 — 2020 — Thereafter — ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill Goodwill was $85.6 million and $4.9 million at December 31, 2015 and 2014, respectively. In 2015, the Partnership recorded an addition to goodwill of $80.7 million as part of the acquisition of Enviva Pellets Cottondale by the sponsor and its contribution to the Partnership as part of the Reorganization. Goodwill also includes $4.9 million from the acquisitions in 2010 of a business from IN Group Companies and of a company now known as Enviva Pellets Amory. The Partnership's reported goodwill balance at December 31, 2015 and 2014 of $85.6 million and $4.9 million, respectively, was allocated to the Partnership's one reporting unit, which also represents the Partnership's one segment. |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt and Capital Lease Obligations. | |
Long-Term Debt and Capital Lease Obligations | (10) Long-Term Debt and Capital Lease Obligations Senior Secured Credit Facilities On April 9, 2015, the Partnership entered into a Credit Agreement (the "Credit Agreement") providing for $199.5 million aggregate principal amount of senior secured credit facilities (the "Original Credit Facilities"). The Original Credit Facilities consist of (i) $99.5 million aggregate principal amount of Tranche A-1 advances, (ii) $75.0 million aggregate principal amount of Tranche A-2 advances and (iii) up to $25.0 million aggregate principal amount of revolving credit commitments. The Partnership is also able to request loans under incremental facilities under the Credit Agreement on the terms and conditions and in the maximum aggregate principal amounts set forth therein, provided that lenders provide commitments to make loans under such incremental facilities. On December 11, 2015, the Partnership entered into the First Incremental Term Loan Assumption Agreement (the "Assumption Agreement") providing for $36.5 million of incremental borrowings (the "Incremental Term Advances" and, together with the Original Credit Facilities, the "Senior Secured Credit Facilities") under the Credit Agreement. The Incremental Term Advances consist of (i) $10.0 million aggregate principal amount of Tranche A-3 advances and (ii) $26.5 million aggregate principal amount of Tranche A-4 advances. The Senior Secured Credit Facilities mature in April 2020. Borrowings under the Senior Secured Credit Facilities bear interest, at the Partnership's option, at either a base rate plus an applicable margin or at a Eurodollar rate (with a 1.00% floor for term loan borrowings) plus an applicable margin. The applicable margin is (i) for Tranche A-1 and Tranche A-3 base rate borrowings, 3.10% through April 2017, 2.95% thereafter through April 2018 and 2.80% thereafter, and for Tranche A-1 and Tranche A-3 Eurodollar rate borrowings, 4.10% through April 2017, 3.95% thereafter through April 2018 and 3.80% thereafter and (ii) 3.25% for Tranche A-2 and Tranche A-4 base rate borrowings and revolving facility base rate borrowings and 4.25% for Tranche A-2 and Tranche A-4 Eurodollar rate borrowings and revolving facility Eurodollar rate borrowings. On December 31, 2015, Tranche A-3 and Tranche A-4 advances were converted to Eurodollar borrowings. The applicable margin for revolving facility borrowings will be reduced by 0.50% if the Total Leverage Ratio (as defined below) is less than or equal to 2.00:1.00. During the continuance of an event of default, overdue amounts under the Senior Secured Credit Facilities will bear interest at 2.00% plus the otherwise applicable interest rate. The Partnership borrowed the full amount of the Tranche A-1 and Tranche A-2 facilities at the closing of the Credit Agreement. Of the total proceeds from such borrowings, $82.2 million was used to repay all outstanding indebtedness under the Prior Senior Secured Credit Facilities and related accrued interest, $6.4 million was used to pay closing fees and expenses, and the balance of $85.9 million was used to make a distribution to the sponsor. The Partnership borrowed the full amount of the Tranche A-3 and Tranche A-4 facilities at the closing of the Assumption Agreement. Of the total proceeds from such borrowings, $35.6 million was used to acquire Enviva Pellets Southampton, which was treated as a distribution to the sponsor, and the balance of $0.9 million was used to pay related fees and expenses. Borrowings under the revolving facility may be used for working capital requirements and general partnership purposes, including the issuance of letters of credit. The Senior Secured Credit Facilities include customary lender and agency fees, including a 1.00% fee that was paid to the lenders at the closing of the Credit Agreement, a 1.00% fee that was paid to the lenders at the closing of the Assumption Agreement and a commitment fee payable on undrawn revolving facility commitments of 0.50% per annum (subject to a stepdown to 0.375% per annum if the Total Leverage Ratio is less than or equal to 2.00:1.00). Letters of credit issued under the revolving facility are subject to a fee calculated at the applicable margin for revolving facility Eurodollar rate borrowings. Interest is payable quarterly for loans bearing interest at the base rate and at the end of the applicable interest period for loans bearing interest at the Eurodollar rate. The principal amounts of the Tranche A-1 and Tranche A-3 facilities are payable in quarterly installments of 0.50% through March 2017, 0.75% thereafter through March 2018 and 1.25% thereafter, in each case subject to a quarterly increase of 0.50% during each year if less than 75% of the aggregate projected production capacity of the wood pellet production plants for the two-year period beginning on January 1 of such year is contracted to be sold during such period pursuant to certain qualifying off-take contracts. The principal amounts of the Tranche A-2 and Tranche A-4 facilities are payable in equal quarterly installments of 0.25%. All outstanding amounts under the Senior Secured Credit Facilities will be due and the letter of credit commitments will terminate on the maturity date or upon earlier prepayment or acceleration. The Partnership had $5.0 million outstanding under the letter of credit facility as of December 31, 2015. The letters of credit were issued in connection with contracts between the Partnership and third parties, in the ordinary course of business. The amounts required to be secured with letters of credit under these contracts may be adjusted or cancelled based on the specific third-party contract terms. The amounts outstanding as of December 31, 2015 are subject to automatic extensions through the termination dates of the letters of credit facilities. The letters of credit are not cash collateralized and there are no unreimbursed drawings under the letters of credit as of December 31, 2015. Letters of credit issued under the revolving facility are subject to a fee calculated at the applicable margin for revolving facility Eurodollar rate borrowings. The Partnership is required to make mandatory prepayments of the Senior Secured Credit Facilities with the proceeds of certain asset sales and debt incurrences. The Partnership may voluntarily prepay the Senior Secured Credit Facilities in whole or in part at any time without premium or penalty, except that prepayments of any portion of the Tranche A-1, Tranche A-2, Tranche A-3 or Tranche A-4 facilities made in connection with a repricing transaction (as well as any repricing of the Senior Secured Credit Facilities) prior to the six-month anniversary of the Assumption Agreement closing date will incur a premium of 1.00% of amounts prepaid (or repriced). The Credit Agreement contains certain covenants, restrictions and events of default including, but not limited to, a change of control restriction and limitations on the Partnership's ability to (i) incur indebtedness, (ii) pay dividends or make other distributions, (iii) prepay, redeem or repurchase certain debt, (iv) make loans and investments, (v) sell assets, (vi) incur liens, (vii) enter into transactions with affiliates, (viii) consolidate or merge and (ix) assign certain material contracts to third parties or unrestricted subsidiaries. The Partnership will be restricted from making distributions if an event of default exists under the Credit Agreement or if the interest coverage ratio (determined as the ratio of consolidated EBITDA, as defined in the Credit Agreement, to consolidated interest expense, determined quarterly) is less than 2.25:1.00 at such time. Pursuant to the Credit Agreement, the Partnership is required to maintain, as of the last day of each fiscal quarter, a ratio of total debt to consolidated EBITDA ("Total Leverage Ratio"), as defined in the Credit Agreement, of not more than a maximum ratio, initially set at 4.25:1.00 and stepping down to 3.75:1.00 during the term of the Credit Agreement; provided that the maximum permitted Total Leverage Ratio will be increased by 0.50:1.00 for the period from the consummation of certain qualifying acquisitions through the end of the second full fiscal quarter thereafter. As of December 31, 2015, the Partnership was in compliance with all covenants and restrictions associated with, and no events of default existed under, the Credit Agreement. The obligations under the Credit Agreement are guaranteed by certain of the Partnership's subsidiaries and secured by liens on substantially all assets. On December 11, 2015, Enviva FiberCo, LLC, a wholly owned subsidiary of the Partnership's sponsor, became a lender pursuant to the Credit Agreement with a purchase of $15.0 million aggregate principal amount of the Tranche A-4 term advances, net of a 1.0% lender fee. The Partnership recorded an insignificant amount as interest expense related to this related indebtedness. The advances, were $14.8 million net of unamortized discount of $0.2 million as of December 31, 2015, with quarterly interest payments beginning December 31, 2015 at a Eurodollar Rate of 5.25% at December 31, 2015. A principal payment of $38 is due quarterly through December 31, 2019 and $14.4 million is due on the April 9, 2020 maturity date. Prior Senior Secured Credit Facilities In November 2012, the Predecessor entered into the Credit and Guaranty Agreement (the "Prior Credit Agreement") that provided for a $120.0 million aggregate principal amount of senior secured credit facilities (the "Prior Senior Secured Credit Facilities"). The Prior Senior Secured Credit Facilities consisted of (i) $35.0 million aggregate principal amount of Tranche A advances, (ii) up to $60.0 million aggregate principal amount of delayed draw term commitments, (iii) up to $15.0 million aggregate principal amount of working capital commitments and (iv) up to $10.0 million aggregate principal amount of letter of credit facility commitments. All outstanding indebtedness under the Prior Senior Secured Credit Facilities was repaid in full, including related accrued interest, in the amount of $82.2 million on April 9, 2015. The Partnership funded the repayment with a portion of borrowings under the Original Credit Facilities. For the year ended December 31, 2015, the Partnership recorded a $4.7 million loss on early retirement of debt obligation related to the repayment. Related Party Notes Payable In connection with the January 5, 2015 acquisition of Green Circle, the sponsor made a term advance of $36.7 million to Green Circle under a revolving note. The revolving note accrued interest at an annual rate of 4.0%. In connection with the acquisition, the sponsor also advanced its wholly owned subsidiary, Acquisition II, $50.0 million under a note payable accruing interest at an annual rate of 4.0%. Enviva Pellets Cottondale repaid $4.8 million of the outstanding principal in March 2015. As a result of the sponsor's contribution of Acquisition II, which owned Enviva Pellets Cottondale, to the Partnership on April 9, 2015, the Partnership recorded $81.9 million of outstanding principal and $0.9 million of accrued interest related to these notes. In connection with the closing of the IPO on May 4, 2015, the related party notes payable outstanding principal of $81.9 million and related accrued interest of $1.1 million were repaid by the Partnership to the sponsor. During the year ended December 31, 2015, $1.1 million of related party interest expense associated with the related party notes payable was incurred. Enviva Pellets Southampton Promissory Note In connection with the purchase of land for the Southampton plant, the Partnership entered into a $1.5 million promissory note with Southampton County, Virginia, with no stated interest, maturing on June 8, 2017. The effective-interest method was applied using an interest rate of 7.6% to determine the present value of $1.1 million on June 8, 2012. On February 24, 2014, the Partnership amended its performance agreement with Southampton County. Under the amended terms, the Partnership reduced its promissory note balance and its claims to receive certain incentive payments by $0.6 million. As a result of the amendment, the outstanding promissory note as of December 31, 2014 has been reduced to a present value of approximately $0.7 million. (see Note 17, Commitments and Contingencies—Southampton Promissory Note ). Interest expense during the years ended December 31, 2015, 2014 and 2013 was insignificant. Enviva Pellets Wiggins Construction Loan and Working Capital Line The Enviva Pellets Wiggins construction loan and working capital line are secured by all machinery and equipment located at the Enviva Pellets Wiggins plant. Long-term debt, at carrying value which approximates fair value, and capital lease obligations consisted of the following: December 31, 2015 December 31, 2014 (Predecessor) Senior Secured Credit Facilities, Tranche A-1 Advances, net of unamortized discount of $1.1 million as of December 31, 2015, with quarterly interest payments beginning June 30, 2015 at a Eurodollar Rate of 5.10% at December 31, 2015. A principal payment of $0.5 million is due quarterly through March 2017, $0.7 million is due quarterly June 2017 through March 2018, $1.2 million is due quarterly June 2018 through December 2019, and the final payment of $83.8 million is due on the April 9, 2020 maturity date $ $ — Senior Secured Credit Facilities, Tranche A-2 Advances, net of unamortized discount of $0.6 million as of December 31, 2015, with quarterly interest payments beginning June 30, 2015 at a Eurodollar Rate of 5.25% at December 31, 2015. A principal payment of $0.2 million is due quarterly through December 2019, and the final payment of $71.4 million is due on the April 9, 2020 maturity date — Senior Secured Credit Facilities, Tranche A-3 Advances, net of unamortized discount of $0.1 million as of December 31, 2015, with quarterly interest payments beginning December 31, 2015 at a Eurodollar Rate of 5.10% at December 31, 2015. A principal payment of $0.1 million is due quarterly through December 2019 and $8.5 million is due on the April 9, 2020 maturity date — Senior Secured Credit Facilities, Tranche A-4 Advances, net of unamortized discount of $0.3 million as of December 31, 2015, with quarterly interest payments beginning December 31, 2015 at a Eurodollar Rate of 5.25% at December 31, 2015. A principal payment of $67 is due quarterly through December 31, 2019 and $25.4 million is due on the April 9, 2020 maturity date — Prior Senior Secured Credit Facilities, Tranche A Advances, net of unamortized discount of $1.6 million as of December 31, 2014, with quarterly interest payments at a Eurodollar Rate of 5.50% at December 31, 2014 — Prior Senior Secured Credit Facilities, delayed draw term commitments with elected quarterly interest payments beginning the first quarter following the day that the cash was drawn, at a Eurodollar Rate of 5.50% at December 31, 2014 — Enviva Pellets Wiggins construction loan, with monthly principal and interest (at an annual rate of 6.35%) payments of $32.9 and a lump sum payment of $2.4 million due on the October 18, 2016 maturity date Enviva Pellets Wiggins working capital line, with monthly principal and interest (at an annual rate of 6.35%) payments of $10.3 and a lump sum payment of $0.7 million due on the October 18, 2016 maturity date Enviva Pellets Amory note, with principal and accrued interest (at an annual rate of 6.0%) due on the August 4, 2017 maturity date Enviva Pellets Southampton promissory note, with principal and interest in the amount of $0.9 million due on the June 8, 2017 maturity date. Present value for 3 years at an annual rate of 7.6% Other loans Capital leases ​ ​ ​ ​ ​ ​ ​ ​ Total long-term debt and capital lease obligations Less current portion of long-term debt and capital lease obligations ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt and capital lease obligations, excluding current installments $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The aggregate maturities of long-term debt and capital lease obligations are as follows: Year Ending December 31: 2016 $ 2017 2018 2019 2020 Thereafter — ​ ​ ​ ​ ​ Total long-term debt and capital lease obligations $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation expense relating to assets held under capital lease obligations was $0.1 million for each of the years ended December 31, 2015, 2014 and 2013, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions | |
Related Party Transactions | (11) Related Party Transactions Management Services Agreement On April 9, 2015, the Partnership, the General Partner, the Predecessor, Enviva GP, LLC and certain subsidiaries of the Predecessor (collectively, the "Service Recipients") entered into a five-year Management Services Agreement (the "MSA") with Enviva Management Company, LLC (the "Provider"), a subsidiary of Enviva Holdings, LP, pursuant to which the Provider provides the Service Recipients with general administrative and management services and other similar services (the "Services"). Under the terms of the MSA, the Service Recipients are required to reimburse the Provider the amount of all direct or indirect, internal or third-party expenses incurred, including without limitation: (i) the portion of the salary and benefits of the employees engaged in providing the Services reasonably allocable to the Service Recipients; (ii) the charges and expenses of any third party retained to provide any portion of the Services; (iii) office rent and expenses and other overhead costs incurred in connection with, or reasonably allocable to, providing the Services; (iv) amounts related to the payment of taxes related to the business of the Service Recipients; and (v) costs and expenses incurred in connection with the formation, capitalization, business or other activities of the Provider pursuant to the MSA. Direct or indirect, internal or third-party expenses incurred are either directly identifiable or allocated to the Partnership by the Provider. The Provider estimates the percentage of salary, benefits, third-party costs, office rent and expenses and any other overhead costs associated with the Services to be provided to the Partnership. Each month, the Provider allocates the actual costs accumulated in the financial accounting system. The allocations are intended to approximate the costs that the Partnership would have incurred on a stand-alone basis. The Provider charges the Partnership for any directly identifiable costs such as goods or services provided at the Partnership's request. During the year ended December 31, 2015, the Partnership incurred $35.5 million related to the MSA. Of these amounts, during the year ended December 31, 2015, $22.3 million is included in cost of goods sold and $12.7 million is included in general and administrative expenses on the consolidated statement of operations. At December 31, 2015, $0.5 million incurred under the MSA is included in finished goods inventory. Prior Management Services Agreement On November 9, 2012, the Predecessor entered into a six-year management services agreement (the "Prior MSA") with Enviva Holdings, LP (the "Service Provider") to provide the Predecessor with general administrative and management services and other similar services (the "Prior Services"). Under the Prior MSA, the Predecessor incurred the following costs: · A maximum annual fee in the amount of $7.2 million could be charged by the Service Provider. Under the Prior MSA, during 2014, the Predecessor incurred $6.7 million for the annual fee and, during 2013, incurred and paid $6.6 million to the Service Provider, and the amounts were included in general and administrative expenses on the consolidated statement of operations. · The Predecessor reimbursed the Service Provider for all direct or indirect costs and expenses incurred by, or chargeable to, the Service Provider in connection with the Prior Services. This included (1) the portion of the salary and benefits of employees engaged in providing the Prior Services reasonably allocable to the provision of the Prior Services, excluding those included in the annual fee, (2) the charges and expenses of any third party retained by the Service Provider to provide any portion of the Prior Services and (3) office rent and expenses and other overhead costs of the Service Provider incurred in connection with, or reasonably allocable to, providing the Prior Services (collectively, "Reimbursable Expenses"). During 2014, the Predecessor incurred $2.6 million of Reimbursable Expenses to the Service Provider of which $2.0 million is included in general and administrative expenses and $0.6 million is included in cost of goods sold on the consolidated statement of operations. During 2013, the Predecessor incurred $2.2 million of Reimbursable Expenses to Enviva Holdings and is included in general and administrative expenses on the consolidated statement of operations. As of December 31, 2015, $6.0 million is included in related party payable related to the MSA, and as of December 31, 2014, the Predecessor had $2.4 million included in related party payable related to the Prior MSA. During the year ended December 31, 2015, the Partnership capitalized deferred issuance costs that were paid by the Service Provider of $0.1 million, and during the year ended December 31, 2014, $1.9 million. These costs, which consist of direct incremental legal and professional accounting fees related to the IPO, were recognized as an offset against proceeds upon the consummation of the IPO. During the years ended December 31, 2015, 2014 and 2013, the Predecessor recorded $0.5 million, $0.9 million and $0, respectively, of general and administrative expenses that were incurred by the Service Provider and recorded as capital contributions. The Prior MSA automatically terminated upon the execution of the MSA. Common Control Transactions On January 5, 2015, the sponsor acquired Green Circle Bio Energy, Inc. ("Green Circle"), which owned the Cottondale plant. Acquisition I contributed Green Circle to the Partnership in April 2015 in exchange for subordinated units in the Partnership. Prior to such contribution, the sponsor converted Green Circle into a Delaware limited liability company and changed the name of the entity to "Enviva Pellets Cottondale, LLC" (see Note 1, Business and Basis of Presentation). In connection with the closing of the Senior Secured Credit Facilities (see Note 10, Long-Term Debt and Capital Lease Obligations ), on December 11, 2015, under the terms of a Contribution Agreement by and among the Partnership and the Hancock JV, the Hancock JV contributed to Enviva LP, all of the issued and outstanding limited liability interests in Enviva Pellets Southampton for total consideration of $131.0 million (see Note 1, Business and Basis of Presentation). Related Party Indebtedness On December 11, 2015, Enviva FiberCo, LLC, a wholly owned subsidiary of the Partnership's sponsor, became a lender pursuant to the Credit Agreement with a purchase of $15.0 million aggregate principal amount of the Tranche A-4 term advances, net of a 1.0% lender fee. The Partnership recorded an insignificant amount as interest expense related to this related indebtedness. Related Party Notes Payable The net assets contributed by the sponsor included notes payable issued by the sponsor to related parties. In January 2015, the sponsor issued a revolving note to Green Circle in the amount of $36.7 million and issued a note payable to Acquisition II in the amount of $50.0 million. In connection with the closing of the IPO on May 4, 2015, the related party notes payable outstanding principal of $81.9 million and accrued interest of $1.1 million were repaid by the Partnership (see Note 10, Long-Term Debt and Capital Lease Obligations ). Biomass Purchase and Terminal Services Agreements On April 9, 2015, the Partnership entered into the Biomass Purchase Agreement with the Hancock JV pursuant to which the Hancock JV sold to the Partnership, at a fixed price per metric ton, certain volumes of wood pellets per month. The Partnership sold the wood pellets purchased from the Hancock JV to customers under the Partnership's existing off-take contracts. The Partnership also entered into the Terminal Services Agreement pursuant to which the Partnership would have provided terminal services at the Chesapeake terminal for the production from the Southampton plant that was not sold to the Partnership under the Biomass Purchase Agreement. The Hancock JV sold all wood pellets produced to the Partnership at a fixed price per metric ton from April 10, 2015 through December 11, 2015, the date of the Southampton Drop-Down. As a result of the Partnership purchasing all wood pellets produced by the Hancock JV, no terminal service fees were recorded. In connection with the Southampton Drop-Down, the Partnership entered into termination agreements with the Hancock JV to terminate such sales and to terminate the Terminal Services Agreement. As a result of the Southampton Drop-Down and the recasting of the consolidated financial statements, certain costs incurred under the Biomass Purchase Agreement have been eliminated. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Operating Leases | |
Operating Leases | (12) Operating Leases The MSA fee charged by Enviva Holdings, LP to the Partnership includes rent related amounts for a noncancelable operating lease for office space in Maryland held by Enviva Holdings, LP. Rent expense was insignificant for the year ended December 31, 2015 and $0.1 million and $0.3 million for the years ended December 31, 2014 and 2013, respectively. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2015 are as follows: 2016 $ 2017 2018 2019 2020 — Later years — ​ ​ ​ ​ ​ Total future minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Income Taxes | (13) Income Taxes The Partnership's U.S. operations are organized as limited partnerships and several entities that are disregarded entities for federal and state income tax purposes. As a result, the Partnership is not subject to U.S. federal and most state income taxes. The partners and unitholders of the Partnership are liable for these income taxes on their share of the Partnership's taxable income. Some states impose franchise and capital taxes on the Partnership. Such taxes are not material to the consolidated financial statements and have been included in other income (expense) as incurred. For fiscal year 2015, the only periods subject to examination for federal and state income tax returns are 2012 through 2015. In foreign taxing jurisdictions, the periods open to examination for the various entities consist of years 2010 through 2015. The Partnership believes its income tax filing positions, including its status as a pass-through entity, would be sustained on audit and does not anticipate any adjustments that would result in a material change to its consolidated balance sheet. Therefore, no reserves for uncertain tax positions, nor interest and penalties, have been recorded. For the years ended December 31, 2014 and 2013 no provision for federal or state income taxes has been recorded in the consolidated financial statements. The Partnership's consolidated statement of operations for the year ended December 31, 2015, includes income tax expense of $2.7 million related to the activities of the Cottondale plant from the date of acquisition on January 5, 2015 through April 8, 2015. This amount is reflected as a capital contribution. During this period, Green Circle was a corporate subsidiary of the predecessor entity of Acquisition II. Green Circle, which is now Enviva Cottondale Acquisition I, LLC, and Acquisition II were each treated as a corporation for federal income purposes until April 7, 2015 and April 8, 2015, respectively. Prior to the contribution of Acquisition II to the Partnership on April 9, 2015, the financial results of the predecessor entity of each of Acquisition II and Green Circle were included in the consolidated federal income tax return of the tax paying entity, Acquisition I. |
Partners' Capital
Partners' Capital | 12 Months Ended |
Dec. 31, 2015 | |
Partners' Capital. | |
Partners' Capital | (14) Partners' Capital In connection with the closing of the IPO, the Partnership recapitalized the outstanding limited partner interests held by the sponsor into 405,138 common units and 11,905,138 subordinated units representing a 51.7% ownership interest in the Partnership as of the closing of the IPO. On December 11, 2015, the Partnership issued 942,023 common units to a wholly owned subsidiary of the sponsor in connection with the Southampton Drop-Down. In addition, the sponsor is the owner of the General Partner and the General Partner holds the incentive distribution rights. Allocations of Net Income The partnership agreement contains provisions for the allocation of net income and loss to the unitholders and the General Partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage ownership interest. Normal allocations according to percentage interests are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100% to the General Partner. Incentive Distribution Rights Incentive distribution rights represent the right to receive increasing percentages (ranging from 15.0% to 50.0%) of quarterly distributions from operating surplus after distributions in amounts exceeding specified target distribution levels have been achieved. The General Partner currently holds the incentive distribution rights, but may transfer these rights at any time. Cash Distributions The partnership agreement sets forth the calculation to be used to determine the amount of cash distributions that the common and subordinated unitholders and sponsor will receive. The following table details the cash distributions paid or declared per common unit during 2015 (in millions, except per unit amounts): Quarter Ended Record Date Payment Date Distribution Per Unit Total Cash Distribution June 30, 2015 August 14, 2015 August 31, 2015 $ $ September 30, 2015 November 17, 2015 November 27, 2015 $ $ December 31, 2015 February 17, 2016 February 29, 2016 $ $ No distributions have been declared for the holders of incentive distribution rights. For purposes of calculating the Partnership's earnings per unit under the two-class method, common units are treated as participating preferred units, and the subordinated units are treated as the residual equity interest, or common equity. Incentive distribution rights are treated as participating securities. Distributions made in future periods based on the current period calculation of cash available for distribution are allocated to each class of equity that will receive the distribution. Any unpaid cumulative distributions are allocated to the appropriate class of equity. The Partnership determines the amount of cash available for distribution for each quarter in accordance with the partnership agreement. The amount to be distributed to common unitholders, subordinated unitholders and incentive distribution rights holders is based on the distribution waterfall set forth in the partnership agreement. Net earnings for the quarter are allocated to each class of partnership interest based on the distributions to be made. Additionally, if, during the subordination period, the Partnership does not have enough cash available to make the required minimum distribution to the common unitholders, the Partnership will allocate net earnings to the common unitholders based on the amount of distributions in arrears. When actual cash distributions are made based on distributions in arrears, those cash distributions will not be allocated to the common unitholders, as such earnings were allocated in previous quarters. Noncontrolling Interests—Enviva Pellets Wiggins, LLC The Partnership has a controlling interest in Enviva Pellets Wiggins, LLC (formerly known as "Tomorrow's Energy, LLC"), a Mississippi limited liability company located in Stone County, Mississippi. The Partnership and the former owners of Tomorrow's Energy LLC each held 10.0 million Series B units in the joint venture. Enviva committed to invest up to $10.0 million in expansion and other capital for the plant in return for 10.0 million Series A units. Due to capital requirements, the Enviva Pellets Wiggins board of managers approved for Enviva to invest an additional $10.0 million in return for an additional 10.0 million Series A units and 10.0 million Series B units. At December 31, 2015 and 2014, the Company held 20.0 million of the 30.0 million outstanding Series B units, which accounted for a 67% controlling interest. A prior owner who is currently a holder of an interest in Series B units of Enviva Pellets Wiggins owns 0.5 million Series A Preferred units which were acquired for a cash contribution of $0.5 million under an option granted as part of the initial acquisition. Board and voting control still resides with the Company. |
Equity - Based Awards
Equity - Based Awards | 12 Months Ended |
Dec. 31, 2015 | |
Equity - Based Awards | |
Equity - Based Awards | (15) Equity-Based Awards Long-Term Incentive Plan Effective April 30, 2015, the General Partner adopted the Enviva Partners, LP Long-Term Incentive Plan ("LTIP") for employees, consultants and directors of the General Partner and any of its affiliates that perform services for the Partnership. The LTIP provides for the grant, from time to time, at the discretion of the board of directors of the General Partner or a committee thereof, of unit options, unit appreciation rights, restricted units, phantom units, DERs, unit awards, and other unit-based awards. The LTIP limits the number of common units that may be delivered pursuant to awards under the plan to 2,738,182 common units. Common units subject to awards that are forfeited, cancelled, exercised, paid, or otherwise terminate or expire without the actual delivery of common units will be available for delivery pursuant to other awards. The common units to be delivered under the LTIP will consist, in whole or in part, of common units acquired in the open market or from any affiliate or any other person, newly issued common units or any combination of the foregoing as determined by the Board of Directors of the General Partner or a committee thereof. During 2015, the Board granted phantom units in tandem with corresponding DERs to employees of the Provider who provide services to the Partnership (the "Affiliate Grants"), and phantom units in tandem with corresponding DERs to certain non-employee directors of the General Partner (the "Director Grants"). The phantom units and corresponding DERs are subject to certain vesting and forfeiture provisions. Award recipients do not have all the rights of a unitholder with respect to the phantom units until the phantom units have vested and been settled. Awards of the phantom units are settled in common units within 60 days after the applicable vesting date. If a phantom unit award recipient experiences a termination of service under certain circumstances set forth in the applicable award agreement, the unvested phantom units and corresponding DERs are forfeited. A summary of the Affiliate Grant unit awards subject to vesting for the year ended December 31, 2015 is set forth below: Phantom Units Performance Based Phantom Units Total Affiliate Grant Phantom Units Units Weighted Average Grant Date Fair Value (per unit)(1) Units Weighted Average Grant Date Fair Value (per unit)(1) Units Weighted Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 2014 — $ — — $ — — $ — Granted Forfeitures — — Vested — — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonvested December 31, 2015 $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. The Affiliate Grant phantom units vest on the third anniversary of the grant date except for performance based phantom units which vest on the achievement of specific performance milestones. The fair value of the Affiliate Grants was $5.8 million based on the market price per unit on the date of grant. These units are accounted for as if they are distributed by the Partnership. The fair value of Affiliate Grants is remeasured by the provider at each reporting period until the award is settled. Compensation cost recorded each period will vary based on the change in the award's fair value. For awards with performance goals, the expense is accrued only if the performance goals are considered to be probable of occurring. The Provider recognizes unit-based compensation expense for the units awarded and a portion of that expense is allocated to the Partnership. The Provider allocates unit-based compensation expense to the Partnership in the same manner as other corporate expenses. The Partnership's portion of the unit-based compensation expense is included in general and administrative expenses. During the year ended December 31, 2015, the Partnership recognized $0.4 million of general and administrative expense associated with the Affiliate Grants. A summary of the Director Grant unit awards subject to vesting for the year ended December 31, 2015, is set forth below: Phantom Units Performance Based Phantom Units Total Director Grant Phantom Units Units Weighted Average Grant Date Fair Value (per unit)(1) Units Weighted Average Grant Date Fair Value (per unit)(1) Units Weighted Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 2014 — $ — — $ — — $ — Granted — — Forfeitures — — — — — — Vested — — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonvested December 31, 2015 $ — $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. The Director Grant phantom units have an aggregate grant date fair value of $0.3 million and vest on the first anniversary of the grant date. For the year ended December 31, 2015, the Partnership recorded an insignificant amount of compensation expense with respect to the Director Grants. The DERs associated with the Affiliate and Director Grant phantom units entitle the recipients to receive payments equal to any distributions made by the Partnership to the holders of common units within 60 days following the record date for such distributions. The DERs associated with the performance-based Affiliate Grants will remain outstanding and unpaid from the grant date until the earlier of the settlement or forfeiture of the related phantom units. Cash distributions paid related to DERs for the year ended December 31, 2015 were not significant. |
Net Income per Limited Partner
Net Income per Limited Partner Unit | 12 Months Ended |
Dec. 31, 2015 | |
Net Income per Limited Partner Unit. | |
Net Income per Limited Partner Unit | (16) Net Income per Limited Partner Unit Net income (loss) per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners' interest in net income (loss) attributable to Enviva Partners, LP, after deducting any incentive distributions, by the weighted-average number of outstanding common and subordinated units. As the Partnership has more than one class of participating securities, the two-class method is used when calculating the net income (loss) per unit applicable to limited partners. The classes of participating securities include common units, subordinated units and IDRs. The Partnership's net income (loss) is allocated to the limited partners in accordance with their respective ownership interests, after giving effect to priority income allocations for incentive distributions, if any, to the holder of the IDRs, pursuant to the partnership agreement. The distributions are declared and paid following the close of each quarter. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Payments made to the Partnership's unitholders are determined in relation to actual distributions declared and are not based on the net income (loss) allocations used in the calculation of earnings per limited partner unit. Earnings (losses) per unit is only calculated for the Partnership for the periods following the IPO as no units were outstanding prior to May 4, 2015. In addition to the common and subordinated units, the Partnership has also identified the IDRs and phantom units as participating securities and uses the two-class method when calculating the net income (loss) per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Diluted net income per limited partner unit includes the effects of potentially dilutive time-based and performance-based phantom units on the Partnership's common units. Basic and diluted earnings (losses) per unit applicable to subordinated limited partners are the same because there are no potentially dilutive subordinated units outstanding. The computation of net income (loss) per limited partner unit is a follows: Year Ended December 31, 2015 2014 2013 (Predecessor) (in thousands, except per unit amounts) Net income (loss) $ $ $ ) Less net loss attributable to noncontrolling partners' interests ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Enviva Partners, LP $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Predecessor loss to May 4, 2015 (prior to IPO) $ ) Less: Pre-acquisition income from April 10, 2015 to December 10, 2015 from operations of Enviva Pellets Southampton Drop-Down allocated to General Partner ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Enviva Partners, LP limited partners' interest in net income from May 4, 2015 to December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Distributions declared on: Common units(1) $ Subordinated units(1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total distributions declared ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings less than distributions $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) On July 29, 2015, the Partnership declared a prorated initial cash distribution of $0.2630 per unit, totaling $6.3 million, for the period subsequent to the IPO. The distribution was calculated based on the minimum quarterly distribution of $0.4125, prorated from May 4, 2015 to June 30, 2015. The distribution was paid on August 31, 2015 to unitholders of record on August 14, 2015. On October 28, 2015, the Partnership declared a quarterly cash distribution of $0.4400 per unit, totaling $10.5 million, for the three months ended September 30, 2015. The distribution was paid on November 27, 2015 to unitholders of record on November 17, 2015. On February 3, 2016, the Partnership declared a quarterly cash distribution of $0.4600 per unit, totaling $11.4 million, for the three months ended December 31, 2015. The distribution will be paid on February 29, 2016 to unitholders of record on February 17, 2016. Basic and diluted net income (loss) per limited partner unit is a follows: Year Ended December 31, 2015 Common Units Subordinated Units General Partner (in thousands, except per unit amounts) Weighted average common units outstanding—basic — Effect of nonvested phantom units — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common units outstanding—diluted — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2015 Common Units Subordinated Units General Partner Total (in thousands, except per unit amounts) Distributions declared $ $ $ — $ Earnings less than distributions ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to partners $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average units outstanding—basic — Weighted average units outstanding—diluted — Net income per limited partner unit—basic $ $ $ — $ Net income per limited partner unit—diluted $ $ $ — $ |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies. | |
Commitments and Contingencies | (17) Commitments and Contingencies Southampton Promissory Note In connection with the $1.5 million note issued for the Enviva Pellets Southampton land purchase, the Partnership received various incentives from the Industrial Development Authority of Southampton County, Virginia. The Partnership has commitments of investments in land, buildings and equipment, initial investment in machinery and tools, creation of full-time jobs, average annual compensation and an investment to extend natural gas service to the site. On February 24, 2014, the Partnership amended the performance agreement with Southampton County. Under the amended terms, the Partnership reduced its promissory note balance (see Note 10, Long-Term Debt and Capital Lease Obligations ). As of December 31, 2015, the Partnership met the necessary requirements due through December 31, 2015 and expects to meet the remaining requirements. The Partnership has not recorded any provision for reimbursement in the financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events. | |
Subsequent Events | (18) Subsequent Events Long-Term Incentive Plan On February 3, 2016, the Board granted 297,502 Affiliate Grants in tandem with corresponding DERs. Of the total Affiliate Grants, 201,043 phantom units vest on the third anniversary of the grant date and 96,459 phantom units vest on the performance of specific milestones. The fair value of the Affiliate Grants was $5.4 million based on the market price per unit on the date of grant. Current Portion of Long-Term Debt On January 22, 2016, a non-controlling interest holder in Enviva Pellets Wiggins became the holder of the Enviva Pellets Wiggins construction loan and working capital line. There were no changes to the terms of the loans. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | (19) Quarterly Financial Data (Unaudited) The following table presents the Partnership's unaudited quarterly financial data. This information has been prepared on a basis consistent with that of the Predecessor's audited consolidated financial statements and all necessary material adjustments, consisting of normal recurring accruals and adjustments, have been included to present fairly the unaudited quarterly financial data. As discussed in Note 1, Business and Basis of Presentation, the consolidated financial statements for the periods prior to the Reorganization and the Southampton Drop-Down have been retroactively recast. The quarterly information presented below has also been recast accordingly. The quarterly results of operations for these periods are not necessarily indicative of future results of operations. Basic and diluted earnings per unit are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per unit information may not equal annual basic and diluted earnings per unit. For the Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total (Recast) (Recast) (Recast) Net revenue $ $ $ $ $ Gross margin Net income Enviva Partners, LP limited partners' interest in net income from May 4, 2015 to December 31, 2015 Basic income per limited partner common unit $ $ $ $ Diluted income per limited partner common unit $ $ $ $ Basic income per limited partner subordinated unit $ $ $ $ Diluted income per limited partner subordinated unit $ $ $ $ For the Year Ended December 31, 2014 (Predecessor) First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ $ $ $ $ Gross margin Net (loss) income ) ) |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The consolidated financial statements include the accounts of the Partnership and its subsidiaries. All intercompany accounts and transactions have been eliminated. As the acquisition of Enviva Pellets Cottondale and the Southampton Drop-Down represented transfers of entities under common control, the consolidated financial statements and related information presented herein have been recast to include the historical results of Enviva Pellets Cottondale effective January 5, 2015, the date the Partnership's sponsor acquired Acquisition II, and Enviva Pellets Southampton effective April 9, 2015, the date Enviva Pellets Southampton was originally conveyed to Hancock JV. Certain amounts for the years ended December 31, 2014 and 2013 have been reclassified to conform to the current presentation. |
Common Control Transactions | Common Control Transactions Assets and businesses acquired from the Partnership's sponsor and its subsidiaries are accounted for as common control transactions whereby the net assets acquired are combined at their historical costs and financial statements are adjusted retrospectively to reflect the transaction as if it occurred on the earliest date during which the entities were under common control. If any recognized consideration transferred in such a transaction exceeds the carrying value of the net assets acquired, the excess is treated as a capital distribution to the Partnership's General Partner. If the carrying value of the net assets acquired exceeds any recognized consideration transferred including, if applicable, the fair value of any limited partner units issued, then that excess is treated as a capital contribution from the General Partner. To the extent that such transactions require prior periods to be recast, historical net equity amounts prior to the transaction date are attributed to the "General Partner." |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the Partnership's consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Segment and Geographic Information | Segment and Geographic Information Operating segments are defined as components of an enterprise about which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Partnership views its operations and manages its business as one operating segment. All long-lived assets of the Partnership are located in the United States. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of partners' capital but are excluded from net income (loss). The Partnership had no components of other comprehensive income (loss) for the years ended December 31, 2015, 2014 and 2013. |
Net Income per Limited Partner Unit | Net Income per Limited Partner Unit The Partnership computes net income per unit using the two-class method as the Partnership has more than one class of participating securities, including common units, subordinated units, certain equity based-compensation awards and IDRs. The Partnership bases its calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive time-based and performance-based phantom units on our common units. The General Partner owns a non-economic interest in the Partnership, which does not entitle it to receive cash distributions, but owns all of the outstanding IDRs as of December 31, 2015. Pursuant to the partnership agreement, IDRs represent the right to receive increasing percentages (ranging from 15% to 50%) of quarterly distributions from operating surplus after the minimum quarterly distribution and certain target distribution levels have been achieved. No amounts were paid to holders of the IDRs in 2015. Net income per unit applicable to limited partners (including the holder of subordinated units) is computed by dividing limited partners' interest in net income by the weighted-average number of outstanding common and subordinated units. |
Income Taxes | Income Taxes The Partnership and sponsor are pass-through entities and are not considered taxable entities for federal income tax purposes. Therefore, there is not a provision for U.S. federal and most state income taxes in the accompanying consolidated financial statements. The Partnership's net income or loss is allocated to its partners in accordance with the partnership agreement. The partners are taxed individually on their share of the Partnership's earnings. At December 31, 2015 and December 31, 2014, the Partnership and sponsor did not have any liabilities for uncertain tax position or gross unrecognized tax benefit. Some states impose franchise and capital taxes on the Partnership. Such taxes are not material to the consolidated financial statements. Income tax expense for the year ended December 31, 2015 includes expense incurred by Acquisition II prior to converting to a nontaxable entity. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of short-term, highly liquid investments readily convertible into cash with an original maturity of three months or less. |
Restricted Cash | Restricted Cash The Predecessor funded a restricted debt service reserve account in connection with the Prior Senior Secured Credit Facilities. The restricted debt service reserve account was released as a result of the repayment in full of the Prior Senior Secured Credit Facilities on April 9, 2015. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. In establishing an allowance for doubtful accounts, management considers historical losses adjusted to take into account current market conditions and customers' financial condition, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Partnership reviews the aging of accounts receivables monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. There were no bad debt write-offs during the years ended December 31, 2015, 2014 and 2013. The Partnership has an allowance for doubtful accounts in the amount of $85.4 and $61.4 as of December 31, 2015 and 2014, respectively. The Partnership does not have any off-balance-sheet credit exposure related to its customers. |
Inventories | Inventories Inventories consist of raw materials, work-in-progress, consumable tooling and finished goods. Fixed production overhead, including related depreciation expense, is allocated to inventory based on the normal capacity of the facilities. To the extent the Partnership does not achieve normal production levels, the Partnership charges such under absorption of fixed overhead to operations. Consumable tooling consists of spare parts and tooling to be consumed in the production process. Spare parts are expensed as used and tooling items are amortized to expense over an estimated service life. Inventories are stated at the lower of cost or market using the first-in, first-out method ("FIFO") for all inventories. |
Revenue Recognition | Revenue Recognition The Partnership primarily earns revenue by supplying wood pellets to customers under long-term, U.S. dollar-denominated contracts (also referred to as "off-take" contracts). The Partnership refers to the structure of the contracts as "take-or-pay" because they include a firm obligation to take a fixed quantity of product at a stated price and provisions that ensure the Partnership will be made whole in the case of the customer's failure to accept all or a part of the contracted volumes or for termination by the customer. Each contract defines the annual volume of wood pellets that the customer is required to purchase and the Partnership is required to sell, the fixed price per metric ton for product satisfying a base net calorific value and other technical specifications, and, in some instances, provides for price adjustments for actual product specification and changes in underlying costs. Revenues from the sale of wood pellets are recognized when the goods are shipped, title passes, the sales price to the customer is fixed and collectability is reasonably assured. Depending on the specific off-take contract, shipping terms are either Cost, Insurance and Freight ("CIF") or Free on Board ("FOB"). Under a CIF contract, the Partnership procures and pays for shipping costs, which include insurance and all other charges, up to the port of destination for the customer. These costs are included in the price to the customer and, as such, are included in revenue and cost of goods sold. Under an FOB contract, the customer is directly responsible for shipping costs. In some cases, the Partnership may purchase shipments of product from a third-party supplier and resell them in back-to-back transactions that immediately transfer title and risk of loss to the ultimate purchaser. Thus, the revenue from these transactions is recorded net of costs paid to the third-party supplier. The Partnership records this revenue as "Other revenue." In instances when a customer requests the cancellation, deferral or acceleration of a shipment, the customer may pay a fee, including reimbursement of any incremental costs incurred by the Partnership, which is included in revenue. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold includes the costs to produce and deliver wood pellets to customers. Raw material, production and distribution costs associated with delivering wood pellets to the ports and third-party wood pellet purchase costs are capitalized as a component of inventory. Fixed production overhead, including the related depreciation expense, is allocated to inventory based on the normal capacity of the facilities. These costs are reflected in cost of goods sold when inventory is sold. Distribution costs associated with shipping wood pellets to customers and amortization are expensed as incurred. Inventory is recorded using FIFO, which requires the use of judgment and estimates. Given the nature of the inventory, the calculation of cost of goods sold is based on estimates used in the valuation of the FIFO inventory and in determining the specific composition of inventory that is sold to each customer. Additionally, the purchase price of acquired customer contracts that were recorded as intangible assets are amortized as deliveries are made during the contract term. |
Derivative Instruments | Derivative Instruments The Predecessor used derivative financial instruments to manage its exposure to fluctuations in interest rates on long-term debt as required per the terms of the Prior Senior Secured Credit Facilities (see Note 10, Long-Term Debt and Capital Lease Obligations ). The Partnership does not hold or issue derivative financial instruments for trading or speculative purposes. The Predecessor accounted for the interest rate swaps by recognizing all derivative financial instruments on the consolidated balance sheets at fair value. The Predecessor's interest rate swap agreements were not designated as hedges; therefore, the gain or loss was recognized in the consolidated statements of operations in interest expense. In connection with the repayment of the Prior Senior Secured Credit Facilities in April 2015 (see Note 10, Long-Term Debt and Capital Lease Obligations ), the Predecessor terminated the interest rate swaps and paid a termination fee of $0.1 million. The Partnership does not currently hold any interest rate swaps or derivative financial instruments. |
Property, Plant, and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, which includes the fair values of assets acquired. Equipment under capital leases are stated at the present value of minimum lease payments. Useful lives of assets are based on historical experience and are adjusted when changes in the expected physical life of the asset, its planned use, technological advances, or other factors show that a different life would be more appropriate. Changes in useful lives are recognized prospectively. Depreciation and amortization are calculated using the straight-line method based on the estimated useful lives of the related assets. Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Construction in progress primarily represents expenditures for the development and expansion of facilities. Capitalized interest cost and all direct costs, which include equipment and engineering costs related to the development and expansion of facilities, are capitalized as construction in progress. Depreciation is not recognized for amounts in construction in progress. Normal repairs and maintenance costs are expensed as incurred. Amounts incurred that extend an asset's useful life, increase its productivity or add production capacity are capitalized. Direct costs, such as outside labor, materials, internal payroll and benefit costs, incurred during the construction of a new plant are capitalized; indirect costs are not capitalized. The principal useful lives are as follows: Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years Costs and accumulated depreciation applicable to assets retired or sold are removed from the accounts, and any resulting gain or loss is included in the consolidated statement of operations. |
Debt Issuance Costs and Original Issue Discount | Debt Issuance Costs and Original Issue Discount Debt issuance costs represent legal fees and other direct expenses associated with securing the Partnership's credit agreements and are capitalized on the consolidated balance sheets as other long-term assets. Original issue discounts are recorded on the consolidated balance sheets within the carrying amount of long-term debt. Debt issuance costs and original issue discount are amortized over the term of the related debt using straight line amortization, which approximates the effective interest rate method. The Partnership and the Predecessor primarily incurred debt issuance costs and original issue discount in connection with the Original Credit Facilities, Incremental Credit Facilities and Prior Senior Secured Credit Facilities, respectively (see Note 10, Long-Term Debt and Capital Lease Obligations ). Debt issuance costs, net at December 31, 2015 and 2014, were $5.6 million and $3.6 million, respectively. Gains or losses on debt extinguishment include any associated unamortized debt issuance costs and original issue discount. |
Capitalized Interest | Capitalized Interest The Predecessor capitalized interest cost incurred on debt during the construction of major projects. A reconciliation of total interest cost to interest expense as reported in the consolidated statements of operations for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 Interest cost capitalized to construction in progress $ — $ — $ Interest cost, including related party, charged to operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total interest cost $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill | Goodwill Goodwill represents the purchase price paid for acquired businesses in excess of the identifiable acquired assets and assumed liabilities. Goodwill is not amortized, but is tested for impairment annually and whenever an event occurs or circumstances change such that it is more likely than not that the fair value of the reporting unit is less than its carrying amounts. At December 31, 2015 and 2014, the Partnership has identified one reporting unit which corresponded to the Partnership's one segment and has selected the fourth fiscal quarter to perform its annual goodwill impairment test. The Partnership first performs a qualitative assessment to determine whether it is necessary to perform quantitative testing. If this initial qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is more than its carrying value, goodwill is not considered impaired and the Partnership is not required to perform the two-step impairment test. Qualitative factors considered in this assessment include (i) macroeconomic conditions, (ii) past, current and projected future financial performance, (iii) industry and market considerations, (iv) changes in the costs of raw materials, fuel and labor and (v) entity-specific factors such as changes in management or customer base. If the results of the qualitative assessment indicate that it is more likely than not that goodwill is impaired, the Partnership will perform a two-step impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. For the years ended December 31, 2015 and 2014, the Partnership applied the qualitative test and determined that it was more likely than not that the estimated fair value of the reporting unit substantially exceeded the related carrying value, and, accordingly, was not required to apply the two-step impairment test. The Partnership did not record any goodwill impairment for the years ended December 31, 2015 and 2014 (see Note 9, Goodwill and Other Intangible Assets ). In making this qualitative analysis for the years ended December 31, 2015, and 2014, the Partnership evaluated the following economic factors: · The Partnership's consolidated financial results reflect continued improved financial performance in 2015 compared to 2014 as reflected by increases in revenue and metric tons sold, as well as the generation of positive net income in 2015 and 2014. · The Partnership continued its expansion of production capacity with the acquisition of Enviva Pellets Cottondale in April 2015 and the acquisition of Enviva Pellets Southampton in December 2015. · The Partnership now benefits from six production plants located in the Southeastern U.S. · In May 2015, the Partnership received proceeds of approximately $215.1 million from the IPO and its market capitalization exceeds the carrying value of its net assets as of December 31, 2015. · The Partnership began deliveries under two new customer contracts in 2013. As a result of the Southampton Drop-Down, the Partnership acquired a new ten-year customer contract which will commence in 2016 and ramp to 500,000 MTPY. · The Partnership has had no cancellations of contracts. |
Intangible Assets | Intangible Assets In April 2015, the sponsor contributed net assets to the Partnership associated with the acquisition of Green Circle in January 2015, which included intangible assets related to favorable customer contracts (see Note 1, Business and Basis of Presentation ). The Partnership also recorded payments made to acquire a six-year wood pellet off-take contract with a European utility in 2010 as an intangible asset. These costs are recoverable through the future revenue streams generated from the customer contracts and are closely related to the revenue from the customer contracts. These costs are recorded as an asset and charged to expense as the revenue is recognized (see Note 9, Goodwill and Other Intangible Assets ). All other costs, such as general and administrative expenses and costs associated with the negotiation of a contract that is not consummated, are charged to expense as incurred. |
Deferred Issuance Costs | Deferred Issuance Costs Deferred issuance costs primarily consist of legal, accounting, printing and other fees relating to the IPO. These costs were offset against the proceeds of the IPO. As of December 31, 2015 and 2014, the Partnership had $0 and $4.1 million of deferred issuance costs, respectively. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist primarily of prepaid insurance. |
Other Long-Term Assets | Other Long-Term Assets Other long-term assets primarily consist of a deposit made in accordance with the terms of a new customer contract and security deposits for utilities. |
Advertising | Advertising Costs incurred related to advertising of the Partnership's products and services are expensed as incurred. |
Unit-Based Compensation | Unit-Based Compensation Employees, consultants and directors of the General Partner and any of its affiliates are eligible to receive awards under the Enviva Partners, LP Long-Term Incentive Plan. For accounting purposes, units granted to employees of the Partnership's affiliates are treated as if they are distributed by the Partnership. In May, June and July 2015, phantom units in tandem with corresponding distribution equivalent rights ("DERs") were granted to employees of Enviva Management Company, LLC who provide services to the Partnership and to certain non-employee directors of the General Partner. These awards vest subject to the satisfaction of service requirements or the achievement of certain performance goals, following which common units in the Partnership will be delivered to the holder of the phantom units. Affiliate entities recognize compensation expense for the phantom units awarded to their employees and a portion of that expense is allocated to the Partnership (see Note 11, Related Party Transactions-Management Services Agreement and Note 15, Equity-Based Awards ). The Partnership's outstanding unit-based awards do not have a cash option and are classified as equity on the Partnership's consolidated balance sheets. The Partnership also recognizes compensation expense for units awarded to non-employee directors. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment and amortizable intangible assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that a long-lived asset or asset group be tested for possible impairment, the Partnership first compares undiscounted cash flows expected to be generated by that asset or asset group to such asset or asset group's carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Partnership did not record any impairments for the years ended December 31, 2015, 2014 and 2013 (see Note 9, Goodwill and Other Intangible Assets ). |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Fair Value Measurements | Fair Value Measurements The Partnership applies authoritative accounting guidance for fair value measurements of financial and nonfinancial assets and liabilities. The Partnership uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Partnership determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted, quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
Recent and Pending Accounting Pronouncements | Recent and Pending Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases . Under the new pronouncement, an entity is required to recognize assets and liabilities arising from a lease for all leases with a maximum possible term of more than 12 months. A lessee is required to recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the leased asset (the underlying asset) for the lease term. For most leases of assets other than property (for example, equipment, aircraft, cars, trucks), a lessee would recognize a right-of-use asset and a lease liability, initially measured at the present value of lease payments and recognize the unwinding of the discount on the lease liability as interest separately from the amortization of the right-of-use asset. For most leases of property (that is, land and/or a building or part of a building), a lessee would recognize a right-of-use asset and a lease liability, initially measured at the present value of lease payments and recognize a single lease cost, combining the unwinding of the discount on the lease liability with the amortization of the right-of-use asset, on a straight-line basis. The new guidance is effective for public entities for fiscal year and interim periods within those fiscal years beginning after December 15, 2018. Upon adoption, a lessee and a lessor would recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. The Partnership is in the process of evaluating the impact of adoption on its consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments , to amend the guidance for amounts that are adjusted in a merger or acquisition. The standard eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement period adjustments that occur in periods after a business combination is consummated. The ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The Partnership does not expect adoption to have a material effect on the consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . The standard simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value for entities using the first-in, first-out method of valuing inventory. ASU No. 2015-11 eliminates other measures required by current guidance to determine net realizable value. ASU No. 2015-11 is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, and early adoption is permitted. The Partnership does not expect adoption to have a material effect on the carrying value of inventory. In April 2015, the FASB issued ASU No. 2015-06, Earnings Per Share (Topic 260)—Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions—a consensus of the FASB Emerging Issues Task Force (EITF) . The amendments in ASU No. 2015-06 apply to master limited partnerships subject to the Master Limited Partnerships Subsections of Topic 260 that receive net assets through a dropdown transaction that is accounted for under the Transactions Between Entities Under Common Control Subsections of Subtopic 805-50, Business Combinations—Related Issues. When a general partner transfers, or "drops down," net assets to a master limited partnership and that transaction is accounted for as a transaction between entities under common control, the statements of operations of the master limited partnership are adjusted retrospectively to reflect the dropdown transaction as if it occurred on the earliest date during which the entities were under common control. The amendments in ASU No. 2015-06 specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. In that circumstance, the previously reported earnings per unit of the limited partners (which is typically the earnings per unit measure presented in the financial statements) would not change as a result of the dropdown transaction. Qualitative disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method also are required. The amendments in ASU No. 2015-06 are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The amendments in ASU No. 2015-06 should be applied retrospectively for all financial statements presented. The Partnership has evaluated this guidance and determined it is consistent with its policy and historical presentation of earnings per unit. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs . ASU No. 2015-03 requires the presentation of debt issuance costs in the balance sheet as a reduction from the related debt liability rather than as an asset. The amortization of such costs will continue to be reported as interest expense. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and allows early adoption for financial statements that have not been previously issued. The update requires retrospective application upon adoption. Upon adoption, the Partnership expects to reclassify amounts included as debt issuance costs within total assets on the consolidated balance sheet to a reduction of long-term debt within total liabilities on the consolidated balance sheet for all periods presented. The adoption is not expected to have an impact on the periodic amount amortized. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The new standard reduces the number of consolidation models and simplifies their application. The amendments in ASU No. 2015-02 are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships and similar legal entities. The amendments simplify the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments (1) eliminate the presumption that a general partner should consolidate a limited partnership, (2) eliminate the indefinite deferral of FASB Statement No. 167, thereby reducing the number of variable interest entity ("VIE") consolidation models from four to two (including the limited partnership consolidation model), (3) clarify when fees paid to a decision maker should be a factor to include in the consolidation of VIEs, (4) amend the guidance for assessing how related party relationships affect VIE consolidation analysis and (5) exclude certain money market funds from the consolidation guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The standard allows early adoption, including early adoption in an interim period. The Partnership is in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, Income Statement-Extraordinary and Unusual Items . The new standard eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU No. 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. The standard is effective for periods beginning after December 15, 2015 and early adoption is permitted. The adoption is not expected to have a material effect on the Partnership's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . The new standard provides new guidance on the recognition of revenue and states that an entity should recognize revenue when control of the goods or services transfers to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. The new standard also requires significantly expanded disclosure regarding qualitative and quantitative information about the nature, timing and uncertainty of revenue and cash flow arising from contracts with customers. On July 9, 2015, the FASB approved a one-year delay in the effective date of ASU No. 2014-09. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The standard permits either applying retrospectively the amendment to each prior reporting period presented or retrospectively with the cumulative effect of initially applying at the date of initial application. The Partnership is in the process of evaluating the impact of adoption on its consolidated financial statements and has not determined which implementation method will be adopted. |
Business and Basis of Present28
Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition II | |
The schedule of changes in consolidated net assets | Assets: Cash $ Accounts receivable Inventories Prepaid expenses and other current assets Property, plant and equipment, net Intangibles, net Goodwill Other assets ​ ​ ​ ​ ​ Total assets ​ ​ ​ ​ ​ Liabilities: Accounts payable Accrued liabilities Long-term debt and capital leases Other liabilities — ​ ​ ​ ​ ​ Total liabilities ​ ​ ​ ​ ​ Net assets contributed to Partnership $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Significant Accounting Polici29
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies | |
Summary of useful lives | Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years |
Reconciliation of total interest cost to interest expense | 2015 2014 2013 Interest cost capitalized to construction in progress $ — $ — $ Interest cost, including related party, charged to operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total interest cost $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Significant Risks and Uncerta30
Significant Risks and Uncertainties, Including Business and Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Risks and Uncertainties, Including Business and Credit Concentrations | |
Schedule of revenue from major customers | 2015 2014 2013 (Predecessor) (Predecessor) Customer A % % % Customer B % % % Customer C % % % Customer D — — % |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | 2015 2014 (Predecessor) Land $ $ Land improvements Buildings Machinery and equipment Vehicles Furniture and office equipment ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation ) ) ​ ​ ​ ​ ​ ​ ​ ​ Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Total property, plant and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | |
Schedule of inventories | 2015 2014 (Predecessor) Raw materials and work-in-process $ $ Consumable tooling Finished goods ​ ​ ​ ​ ​ ​ ​ ​ Total inventories $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Other Intangible Assets | |
Schedule of intangible assets | December 31, 2015 December 31, 2014 (Predecessor) Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Favorable customer contracts 3 years $ $ ) $ $ — $ — $ — Wood pellet contract 6 years ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ $ ) $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of future amortization expense | Year Ending December 31: 2016 $ 2017 2018 2019 — 2020 — Thereafter — ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Long-Term Debt and Capital Le34
Long-Term Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt and Capital Lease Obligations. | |
Schedule of long-term debt and capital lease obligations | December 31, 2015 December 31, 2014 (Predecessor) Senior Secured Credit Facilities, Tranche A-1 Advances, net of unamortized discount of $1.1 million as of December 31, 2015, with quarterly interest payments beginning June 30, 2015 at a Eurodollar Rate of 5.10% at December 31, 2015. A principal payment of $0.5 million is due quarterly through March 2017, $0.7 million is due quarterly June 2017 through March 2018, $1.2 million is due quarterly June 2018 through December 2019, and the final payment of $83.8 million is due on the April 9, 2020 maturity date $ $ — Senior Secured Credit Facilities, Tranche A-2 Advances, net of unamortized discount of $0.6 million as of December 31, 2015, with quarterly interest payments beginning June 30, 2015 at a Eurodollar Rate of 5.25% at December 31, 2015. A principal payment of $0.2 million is due quarterly through December 2019, and the final payment of $71.4 million is due on the April 9, 2020 maturity date — Senior Secured Credit Facilities, Tranche A-3 Advances, net of unamortized discount of $0.1 million as of December 31, 2015, with quarterly interest payments beginning December 31, 2015 at a Eurodollar Rate of 5.10% at December 31, 2015. A principal payment of $0.1 million is due quarterly through December 2019 and $8.5 million is due on the April 9, 2020 maturity date — Senior Secured Credit Facilities, Tranche A-4 Advances, net of unamortized discount of $0.3 million as of December 31, 2015, with quarterly interest payments beginning December 31, 2015 at a Eurodollar Rate of 5.25% at December 31, 2015. A principal payment of $67 is due quarterly through December 31, 2019 and $25.4 million is due on the April 9, 2020 maturity date — Prior Senior Secured Credit Facilities, Tranche A Advances, net of unamortized discount of $1.6 million as of December 31, 2014, with quarterly interest payments at a Eurodollar Rate of 5.50% at December 31, 2014 — Prior Senior Secured Credit Facilities, delayed draw term commitments with elected quarterly interest payments beginning the first quarter following the day that the cash was drawn, at a Eurodollar Rate of 5.50% at December 31, 2014 — Enviva Pellets Wiggins construction loan, with monthly principal and interest (at an annual rate of 6.35%) payments of $32.9 and a lump sum payment of $2.4 million due on the October 18, 2016 maturity date Enviva Pellets Wiggins working capital line, with monthly principal and interest (at an annual rate of 6.35%) payments of $10.3 and a lump sum payment of $0.7 million due on the October 18, 2016 maturity date Enviva Pellets Amory note, with principal and accrued interest (at an annual rate of 6.0%) due on the August 4, 2017 maturity date Enviva Pellets Southampton promissory note, with principal and interest in the amount of $0.9 million due on the June 8, 2017 maturity date. Present value for 3 years at an annual rate of 7.6% Other loans Capital leases ​ ​ ​ ​ ​ ​ ​ ​ Total long-term debt and capital lease obligations Less current portion of long-term debt and capital lease obligations ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt and capital lease obligations, excluding current installments $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Maturities schedule of long-term debt and capital lease obligations | Year Ending December 31: 2016 $ 2017 2018 2019 2020 Thereafter — ​ ​ ​ ​ ​ Total long-term debt and capital lease obligations $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Operating Leases | |
Schedule of future minimum lease payments under noncancelable operating leases | Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2015 are as follows: 2016 $ 2017 2018 2019 2020 — Later years — ​ ​ ​ ​ ​ Total future minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Partners' Capital (Tables)
Partners' Capital (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Partners' Capital. | |
Schedule of cash distributions paid or declared | The following table details the cash distributions paid or declared per common unit during 2015 (in millions, except per unit amounts): Quarter Ended Record Date Payment Date Distribution Per Unit Total Cash Distribution June 30, 2015 August 14, 2015 August 31, 2015 $ $ September 30, 2015 November 17, 2015 November 27, 2015 $ $ December 31, 2015 February 17, 2016 February 29, 2016 $ $ |
Equity - Based Awards (Tables)
Equity - Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Affiliate Grants | |
Schedule of phantom unit awards | Phantom Units Performance Based Phantom Units Total Affiliate Grant Phantom Units Units Weighted Average Grant Date Fair Value (per unit)(1) Units Weighted Average Grant Date Fair Value (per unit)(1) Units Weighted Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 2014 — $ — — $ — — $ — Granted Forfeitures — — Vested — — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonvested December 31, 2015 $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. |
Director Grants | |
Schedule of phantom unit awards | Phantom Units Performance Based Phantom Units Total Director Grant Phantom Units Units Weighted Average Grant Date Fair Value (per unit)(1) Units Weighted Average Grant Date Fair Value (per unit)(1) Units Weighted Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 2014 — $ — — $ — — $ — Granted — — Forfeitures — — — — — — Vested — — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonvested December 31, 2015 $ — $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. |
Net Income per Limited Partne38
Net Income per Limited Partner Unit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net Income per Limited Partner Unit. | |
Computation of net income (loss) per limited partner unit | Year Ended December 31, 2015 2014 2013 (Predecessor) (in thousands, except per unit amounts) Net income (loss) $ $ $ ) Less net loss attributable to noncontrolling partners' interests ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Enviva Partners, LP $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Predecessor loss to May 4, 2015 (prior to IPO) $ ) Less: Pre-acquisition income from April 10, 2015 to December 10, 2015 from operations of Enviva Pellets Southampton Drop-Down allocated to General Partner ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Enviva Partners, LP limited partners' interest in net income from May 4, 2015 to December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: Distributions declared on: Common units(1) $ Subordinated units(1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total distributions declared ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings less than distributions $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) On July 29, 2015, the Partnership declared a prorated initial cash distribution of $0.2630 per unit, totaling $6.3 million, for the period subsequent to the IPO. The distribution was calculated based on the minimum quarterly distribution of $0.4125, prorated from May 4, 2015 to June 30, 2015. The distribution was paid on August 31, 2015 to unitholders of record on August 14, 2015. On October 28, 2015, the Partnership declared a quarterly cash distribution of $0.4400 per unit, totaling $10.5 million, for the three months ended September 30, 2015. The distribution was paid on November 27, 2015 to unitholders of record on November 17, 2015. |
Schedule of weighted average common units outstanding | Year Ended December 31, 2015 Common Units Subordinated Units General Partner (in thousands, except per unit amounts) Weighted average common units outstanding—basic — Effect of nonvested phantom units — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common units outstanding—diluted — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of basic earnings (loss) per common and subordinated units | Year Ended December 31, 2015 Common Units Subordinated Units General Partner Total (in thousands, except per unit amounts) Distributions declared $ $ $ — $ Earnings less than distributions ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to partners $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average units outstanding—basic — Weighted average units outstanding—diluted — Net income per limited partner unit—basic $ $ $ — $ Net income per limited partner unit—diluted $ $ $ — $ |
Quarterly Financial Data (Una39
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) | |
Schedule of the Partnership's unaudited quarterly financial data | For the Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total (Recast) (Recast) (Recast) Net revenue $ $ $ $ $ Gross margin Net income Enviva Partners, LP limited partners' interest in net income from May 4, 2015 to December 31, 2015 Basic income per limited partner common unit $ $ $ $ Diluted income per limited partner common unit $ $ $ $ Basic income per limited partner subordinated unit $ $ $ $ Diluted income per limited partner subordinated unit $ $ $ $ For the Year Ended December 31, 2014 (Predecessor) First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ $ $ $ $ Gross margin Net (loss) income ) ) |
Business and Basis of Present40
Business and Basis of Presentation General Information (Details) $ / shares in Units, $ in Thousands | Dec. 11, 2015USD ($)T$ / sharesshares | Apr. 09, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 04, 2015item | Nov. 30, 2012USD ($) |
Number of industrial-scale production wood pellet production plants | item | 6 | 5 | |||||
Contributed capital | $ 2,930 | $ 60,945 | |||||
Prior Senior Secured Credit Facilities | |||||||
Repayment of outstanding indebtedness under the Credit Facility and related accrued interest | $ 82,200 | ||||||
Enviva Pellets Southampton | |||||||
Consideration paid | $ 131,000 | ||||||
Contract period | 10 years | ||||||
Annual volume of contract | T | 500,000 | ||||||
Shipping contract period | 10 years | ||||||
Debt financed for acquisition | $ 36,500 | ||||||
Issuance of common units associated with Enviva Pellets Southampton Drop-Down (in units) | shares | 942,023 | ||||||
Issuance of common units share price (in dollars per unit) | $ / shares | $ 15.92 | ||||||
Issuance of common units value | $ 15,000 | ||||||
Total cash consideration | $ 79,500 | ||||||
Enviva Holdings, LP | |||||||
Contributed capital | $ 0 | $ 0 | $ 58,300 | ||||
Acquisition II | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Assets: | |||||||
Cash | $ 10,236 | ||||||
Accounts receivable | 13,457 | ||||||
Inventories | 6,095 | ||||||
Prepaid expenses and other current assets | 507 | ||||||
Property, plant and equipment, net | 108,736 | ||||||
Intangibles, net | 8,700 | ||||||
Goodwill | 80,736 | ||||||
Other assets | 58 | ||||||
Total Assets | 228,525 | ||||||
Liabilities. | |||||||
Accounts payable | 3,597 | ||||||
Accrued liabilities | 4,849 | ||||||
Long-term debt and capital leases | 87,314 | ||||||
Total Liabilities | 95,760 | ||||||
Net assets contributed to Partnership | $ 132,765 | ||||||
Predecessor And Enviva GP, LLC | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva, LP | |||||||
Percentage of interest in subsidiaries | 99.999% | ||||||
Enviva Pellets Amory, LLC | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Ahoskie, LLC | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Port Of Chesapeake, LLC | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Northampton, LLC | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Southampton | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Cottondale | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Materials, LLC | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Energy Services, LLC | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Perkinston, LLC | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Wiggins, LLC | |||||||
Percentage of interest in subsidiaries | 67.00% | ||||||
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | |||||||
Repayment of outstanding indebtedness under the Credit Facility and related accrued interest | $ 82,200 | ||||||
Maximum aggregate borrowing capacity | $ 120,000 | ||||||
Enviva, LP and Subsidiaries | Enviva Pellets Southampton | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva, LP and Subsidiaries | Enviva Holdings, LP | |||||||
Cash and cash equivalents distributed to sponsor | $ 1,700 | ||||||
Accounts receivable distributed to sponsor | $ 2,400 |
Initial Public Offering (Detail
Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 04, 2015 | Dec. 31, 2015 |
Initial Public Offering | ||
Ownership interest by Non-controlling interest (as a percent) | 48.30% | |
Net proceeds from issuance | $ 215,100 | $ 215,050 |
Repayment of intercompany indebtedness | 83,000 | |
Distributions to partnership sponsor | 86,700 | |
Amount retained for general purposes | $ 45,400 | |
Ownership interest (as a percent) | 51.70% | 51.70% |
Common Units | ||
Initial Public Offering | ||
Number of common units owned by the Sponsor | 405,138 | |
IPO | Common Units | ||
Initial Public Offering | ||
Shares issued | 11,500,000 | |
Share price (in dollars per share) | $ 20 | |
Share price, net of underwriting discounts (in dollars per share) | $ 18.80 |
Significant Accounting Polici42
Significant Accounting Policies (Details) $ in Thousands | Dec. 11, 2015T | May. 04, 2015USD ($)item | Apr. 09, 2015USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2015USD ($)segmentitem | Dec. 31, 2015USD ($)item | Dec. 31, 2015USD ($)item | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($)segment | Dec. 31, 2014USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)segmentitem |
Segment and Geographic Information | |||||||||||||
Number of operating segments | 1 | 1 | |||||||||||
Net Income per Limited Partner Unit.. | |||||||||||||
IDRs paid | $ 0 | ||||||||||||
Accounts receivable | |||||||||||||
Past due balances reviewed individually for collectability | 90 days | ||||||||||||
Bad debt expense | 0 | ||||||||||||
Accounts receivable, allowance for doubtful accounts | $ 85,400 | $ 85,400 | $ 85,400 | $ 85,400 | 85,400 | ||||||||
Derivative Instruments . | |||||||||||||
Termination payment for interest rate swap derivative | 146 | ||||||||||||
Debt Issuance Costs and Original Issue Discount | |||||||||||||
Debt issuance costs, net | $ 5,600 | $ 5,600 | $ 5,600 | $ 5,600 | 5,600 | ||||||||
Capitalized Interest | |||||||||||||
Interest cost, including related party, charged to operations | 11,705 | ||||||||||||
Total interest cost | 11,705 | ||||||||||||
Goodwill. | |||||||||||||
Number of reporting units for goodwill analysis | item | 1 | ||||||||||||
Number of operating segments | 1 | 1 | |||||||||||
Goodwill impairment | $ 0 | ||||||||||||
Number of production plants | item | 5 | 6 | 6 | 6 | 6 | 6 | |||||||
Net proceeds from issuance | $ 215,100 | $ 215,050 | |||||||||||
Number of cancellations of contracts | item | 0 | ||||||||||||
Intangible Assets | |||||||||||||
Period of wood pellet contract | 6 years | ||||||||||||
Deferred Issuance Costs | |||||||||||||
Deferred issuance costs | $ 0 | $ 0 | $ 0 | $ 0 | 0 | ||||||||
Impairment of Long-Lived Assets | |||||||||||||
Impairment of long-lived assets | $ 0 | ||||||||||||
Enviva Pellets Southampton | |||||||||||||
Goodwill. | |||||||||||||
Contract period | 10 years | ||||||||||||
Annual volume of contract | T | 500,000 | ||||||||||||
Leasehold improvements | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 10 years | ||||||||||||
Minimum | |||||||||||||
Net Income per Limited Partner Unit.. | |||||||||||||
Quarterly distribution of operating surplus (as a percent) | 15.00% | ||||||||||||
Minimum | Land improvements | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 15 years | ||||||||||||
Minimum | Buildings | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 5 years | ||||||||||||
Minimum | Machinery and equipment | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 2 years | ||||||||||||
Minimum | Vehicles | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 5 years | ||||||||||||
Minimum | Furniture and office equipment | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 2 years | ||||||||||||
Maximum | |||||||||||||
Net Income per Limited Partner Unit.. | |||||||||||||
Quarterly distribution of operating surplus (as a percent) | 50.00% | ||||||||||||
Maximum | Land improvements | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 17 years | ||||||||||||
Maximum | Buildings | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 40 years | ||||||||||||
Maximum | Machinery and equipment | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 25 years | ||||||||||||
Maximum | Vehicles | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 6 years | ||||||||||||
Maximum | Furniture and office equipment | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Estimated useful life | 10 years | ||||||||||||
Enviva, LP and Subsidiaries | |||||||||||||
Segment and Geographic Information | |||||||||||||
Number of operating segments | 1 | 1 | 1 | ||||||||||
Accounts receivable | |||||||||||||
Bad debt expense | $ 0 | $ 0 | |||||||||||
Accounts receivable, allowance for doubtful accounts | $ 61,400 | $ 61,400 | 61,400 | ||||||||||
Derivative Instruments . | |||||||||||||
Termination payment for interest rate swap derivative | $ 100 | $ 100 | |||||||||||
Debt Issuance Costs and Original Issue Discount | |||||||||||||
Debt issuance costs, net | $ 3,600 | $ 3,600 | 3,600 | ||||||||||
Capitalized Interest | |||||||||||||
Interest cost capitalized to construction in progress | 1,428 | ||||||||||||
Interest cost, including related party, charged to operations | 8,724 | 5,460 | |||||||||||
Total interest cost | 8,724 | $ 6,888 | |||||||||||
Goodwill. | |||||||||||||
Number of reporting units for goodwill analysis | item | 1 | 1 | |||||||||||
Number of operating segments | 1 | 1 | 1 | ||||||||||
Goodwill impairment | 0 | ||||||||||||
Number of new customer contracts | item | 2 | ||||||||||||
Number of cancellations of contracts | item | 0 | ||||||||||||
Deferred Issuance Costs | |||||||||||||
Deferred issuance costs | $ 4,052 | $ 4,052 | 4,052 | ||||||||||
Impairment of Long-Lived Assets | |||||||||||||
Impairment of long-lived assets | $ 0 | $ 0 |
Significant Risks and Uncerta43
Significant Risks and Uncertainties, Including Business and Credit Concentrations (Details) - Product Sales - Customer - customer | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Three major customers | |||
Concentration Risk | |||
Number of customers | 3 | ||
Concentration risk (as a percent) | 93.00% | ||
Customer A | |||
Concentration Risk | |||
Concentration risk (as a percent) | 56.00% | ||
Customer B | |||
Concentration Risk | |||
Concentration risk (as a percent) | 19.00% | ||
Customer C | |||
Concentration Risk | |||
Concentration risk (as a percent) | 18.00% | ||
Enviva, LP and Subsidiaries | Three major customers | |||
Concentration Risk | |||
Number of customers | 3 | ||
Concentration risk (as a percent) | 97.00% | ||
Enviva, LP and Subsidiaries | Four major customers | |||
Concentration Risk | |||
Number of customers | 4 | ||
Concentration risk (as a percent) | 99.00% | ||
Enviva, LP and Subsidiaries | Customer A | |||
Concentration Risk | |||
Concentration risk (as a percent) | 70.00% | 33.00% | |
Enviva, LP and Subsidiaries | Customer B | |||
Concentration Risk | |||
Concentration risk (as a percent) | 10.00% | 34.00% | |
Enviva, LP and Subsidiaries | Customer C | |||
Concentration Risk | |||
Concentration risk (as a percent) | 17.00% | 18.00% | |
Enviva, LP and Subsidiaries | Customer D | |||
Concentration Risk | |||
Concentration risk (as a percent) | 14.00% |
Property, Plant and Equipment44
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | $ 468,825 | ||
Less accumulated depreciation | (64,738) | ||
Property, plant and equipment excluding construction in progress | 404,087 | ||
Construction in progress | 1,495 | ||
Total property, plant and equipment, net | 405,582 | ||
Total depreciation expense | 24,700 | ||
Capital Leased Assets, Gross | 800 | ||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 400 | ||
Land | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 13,564 | ||
Land improvements | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 36,431 | ||
Buildings | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 77,581 | ||
Machinery and equipment | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 338,592 | ||
Vehicles | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 515 | ||
Furniture and office equipment | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | $ 2,142 | ||
Enviva, LP and Subsidiaries | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | $ 355,848 | ||
Less accumulated depreciation | (40,858) | ||
Property, plant and equipment excluding construction in progress | 314,990 | ||
Construction in progress | 1,269 | ||
Total property, plant and equipment, net | 316,259 | ||
Total depreciation expense | 18,700 | $ 11,600 | |
Capital Leased Assets, Gross | 1,100 | ||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 700 | ||
Enviva, LP and Subsidiaries | Land | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 11,984 | ||
Enviva, LP and Subsidiaries | Land improvements | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 24,899 | ||
Enviva, LP and Subsidiaries | Buildings | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 57,275 | ||
Enviva, LP and Subsidiaries | Machinery and equipment | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 259,186 | ||
Enviva, LP and Subsidiaries | Vehicles | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | 768 | ||
Enviva, LP and Subsidiaries | Furniture and office equipment | |||
Components of Property, plant and equipment | |||
Property, plant and equipment, gross | $ 1,736 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Raw materials and work-in-progress | $ 5,632 | |
Consumable tooling | 9,932 | |
Finished goods | 8,681 | |
Total inventories | $ 24,245 | |
Enviva, LP and Subsidiaries | ||
Raw materials and work-in-progress | $ 6,880 | |
Consumable tooling | 6,934 | |
Finished goods | 4,250 | |
Total inventories | $ 18,064 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | Apr. 09, 2015 | Apr. 30, 2015 | Dec. 31, 2015 |
Derivative Instruments | |||
Termination payment for interest rate swap derivative | $ 146 | ||
Enviva, LP and Subsidiaries | |||
Derivative Instruments | |||
Termination payment for interest rate swap derivative | $ 100 | $ 100 | |
Enviva, LP and Subsidiaries | Interest Rate Swap | |||
Derivative Instruments | |||
Minimum swap percent of term loan outstanding balance | 50.00% |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2015 | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2015USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)segment | Dec. 31, 2014USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)segmentitem | Dec. 31, 2010USD ($) | |
Acquired Intangible Assets | ||||||||||
Gross Carrying Amount | $ 10,450 | $ 10,450 | $ 10,450 | $ 10,450 | ||||||
Accumulated Amortization | (7,051) | (7,051) | (7,051) | (7,051) | ||||||
Net Carrying Amount | 3,399 | 3,399 | 3,399 | 3,399 | ||||||
Period of wood pellet contract | 6 years | |||||||||
Amortization expense | 6,000 | |||||||||
Maturities of amortization expense | ||||||||||
2,016 | 1,541 | 1,541 | 1,541 | 1,541 | ||||||
2,017 | 1,516 | 1,516 | 1,516 | 1,516 | ||||||
2,018 | 342 | 342 | 342 | 342 | ||||||
Net Carrying Amount | 3,399 | 3,399 | 3,399 | 3,399 | ||||||
Goodwill. | ||||||||||
Goodwill | $ 85,615 | $ 85,615 | $ 85,615 | 85,615 | ||||||
Number of reporting units | item | 1 | |||||||||
Number of operating segments | 1 | 1 | ||||||||
Enviva Pellets Cottondale | ||||||||||
Goodwill. | ||||||||||
Addition to goodwill | 80,700 | |||||||||
IN Group Companies | ||||||||||
Goodwill. | ||||||||||
Addition to goodwill | $ 4,900 | |||||||||
Favorable customer contracts | ||||||||||
Acquired Intangible Assets | ||||||||||
Amortization Period | 3 years | |||||||||
Gross Carrying Amount | $ 8,700 | $ 8,700 | $ 8,700 | 8,700 | ||||||
Accumulated Amortization | (5,698) | (5,698) | (5,698) | (5,698) | ||||||
Net Carrying Amount | 3,002 | 3,002 | 3,002 | 3,002 | ||||||
Maturities of amortization expense | ||||||||||
Net Carrying Amount | $ 3,002 | 3,002 | 3,002 | 3,002 | ||||||
Wood pellet contract | ||||||||||
Acquired Intangible Assets | ||||||||||
Amortization Period | 6 years | |||||||||
Gross Carrying Amount | $ 1,750 | 1,750 | 1,750 | 1,750 | ||||||
Accumulated Amortization | (1,353) | (1,353) | (1,353) | (1,353) | ||||||
Net Carrying Amount | 397 | 397 | 397 | 397 | ||||||
Maturities of amortization expense | ||||||||||
Net Carrying Amount | $ 397 | $ 397 | $ 397 | $ 397 | ||||||
Enviva, LP and Subsidiaries | ||||||||||
Acquired Intangible Assets | ||||||||||
Gross Carrying Amount | $ 1,750 | $ 1,750 | $ 1,750 | |||||||
Accumulated Amortization | (1,028) | (1,028) | (1,028) | |||||||
Net Carrying Amount | 722 | 722 | 722 | |||||||
Maturities of amortization expense | ||||||||||
Net Carrying Amount | 722 | 722 | 722 | |||||||
Goodwill. | ||||||||||
Goodwill | $ 4,879 | $ 4,879 | 4,879 | |||||||
Number of reporting units | item | 1 | 1 | ||||||||
Number of operating segments | 1 | 1 | 1 | |||||||
Enviva, LP and Subsidiaries | Wood pellet contract | ||||||||||
Acquired Intangible Assets | ||||||||||
Gross Carrying Amount | $ 1,750 | $ 1,750 | 1,750 | |||||||
Accumulated Amortization | (1,028) | (1,028) | (1,028) | |||||||
Net Carrying Amount | 722 | 722 | 722 | |||||||
Maturities of amortization expense | ||||||||||
Net Carrying Amount | $ 722 | $ 722 | 722 | |||||||
Enviva Holdings, LP | ||||||||||
Acquired Intangible Assets | ||||||||||
Amortization expense | $ 300 | $ 300 |
Long-Term Debt and Capital Le48
Long-Term Debt and Capital Lease Obligations Note Disclosure (Details) $ in Thousands | Dec. 11, 2015USD ($) | May. 04, 2015USD ($) | Apr. 09, 2015USD ($) | Feb. 24, 2014USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 05, 2015USD ($) | Nov. 30, 2012USD ($) | Jun. 08, 2012USD ($) |
Long term debt and capital lease obligations | ||||||||||
Distribution of cash to sponsor | $ 176,702 | |||||||||
Early retirement of debt obligation | 4,699 | |||||||||
Notes payable related party | $ 81,900 | |||||||||
Accrued interest related party | 900 | |||||||||
Related party notes payable repaid | $ 81,900 | |||||||||
Accrued interest paid | $ 1,100 | |||||||||
Related party interest expense | 1,154 | |||||||||
Green Circle | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Effective rate (as a percent) | 4.00% | |||||||||
Notes payable related party | $ 36,700 | |||||||||
Repayment of notes payable related party | $ 4,800 | |||||||||
Acquisition II | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Effective rate (as a percent) | 4.00% | |||||||||
Notes payable related party | $ 50,000 | |||||||||
Senior Secured Credit Facilities | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | $ 199,500 | |||||||||
Floor rate for Eurodollar term loan borrowings | 1.00% | |||||||||
Reduction in floating interest rate for revolving facility borrowings based on leverage ratio (as a percent) | 0.50% | |||||||||
Extra interest in an event of default (as a percent) | 2.00% | |||||||||
Unamortized discount rate (as a percent) | 1.00% | |||||||||
Long-term debt | 0 | |||||||||
Letters of credit outstanding | 5,000 | |||||||||
Prepayment premium or penalty amount (as a percent) | 1.00% | |||||||||
Step down in Leverage Ratio | 3.75% | |||||||||
Increase in Leverage Ratio | 0.50 | |||||||||
Senior Secured Credit Facilities | Tranche A-1 advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | $ 99,500 | |||||||||
Long-term debt | 96,943 | |||||||||
Unamortized discount | $ 1,100 | |||||||||
Senior Secured Credit Facilities | Tranche A-1 advances | Eurodollar rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Interest rate (as a percent) | 5.10% | |||||||||
Senior Secured Credit Facilities | Tranche A-2 advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | $ 75,000 | |||||||||
Long-term debt | $ 73,796 | |||||||||
Unamortized discount | $ 600 | |||||||||
Senior Secured Credit Facilities | Tranche A-2 advances | Eurodollar rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Interest rate (as a percent) | 5.25% | |||||||||
Senior Secured Credit Facilities | Tranche A-3 advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Long-term debt | $ 9,851 | |||||||||
Unamortized discount | $ 100 | |||||||||
Senior Secured Credit Facilities | Tranche A-3 advances | Eurodollar rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Interest rate (as a percent) | 5.10% | |||||||||
Senior Secured Credit Facilities | Tranche A-4 advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Long-term debt | $ 26,172 | |||||||||
Unamortized discount | $ 300 | |||||||||
Senior Secured Credit Facilities | Tranche A-4 advances | Eurodollar rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Interest rate (as a percent) | 5.25% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Increase in quarterly installments of principal payable based on achieving targeted wood pellet production (as a percent) | 0.50% | |||||||||
Aggregate wood pellet production capacity for determining additional quarterly principal payments (as a percent) | 75.00% | |||||||||
Period for aggregate wood pellet production capacity (in years) | 2 years | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | Through March 2017 | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Quarterly installments of principal payable (as a percent) | 0.50% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | After March 2017 through March 2018 | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Quarterly installments of principal payable (as a percent) | 0.75% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | After March 2018 through thereafter | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Quarterly installments of principal payable (as a percent) | 1.25% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | Through April 2017 | Base rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Floating interest rate (as a percent) | 3.10% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | Through April 2017 | Eurodollar rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Floating interest rate (as a percent) | 4.10% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | After April 2017 through April 2018 | Base rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Floating interest rate (as a percent) | 2.95% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | After April 2017 through April 2018 | Eurodollar rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Floating interest rate (as a percent) | 3.95% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | After April 2018 through thereafter | Base rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Floating interest rate (as a percent) | 2.80% | |||||||||
Senior Secured Credit Facilities | Tranche A-1 and A-3 advances | After April 2018 through thereafter | Eurodollar rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Floating interest rate (as a percent) | 3.80% | |||||||||
Senior Secured Credit Facilities | Tranche A-2 and A-4 advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Quarterly installments of principal payable (as a percent) | 0.25% | |||||||||
Senior Secured Credit Facilities | Revolving credit commitments | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Commitment fee payable on undrawn commitments (as a percent) | 0.50% | |||||||||
Reduction in commitment fee payable on undrawn commitments based on total leverage ratio (as a percent) | 0.375% | |||||||||
Senior Secured Credit Facilities | Tranche A-2 and A-4 and revolving facility borrowings | Base rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Floating interest rate (as a percent) | 3.25% | |||||||||
Senior Secured Credit Facilities | Tranche A-2 and A-4 and revolving facility borrowings | Eurodollar rate | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Floating interest rate (as a percent) | 4.25% | |||||||||
Senior Secured Credit Facilities | Minimum | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Period from closing of the credit agreement for prepayment of debt resulting in a premium or penalty payment (in months) | 6 months | |||||||||
Interest coverage ratio | 2.25 | |||||||||
Senior Secured Credit Facilities | Maximum | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Leverage Ratio required for reduction in margin rate | 2 | |||||||||
Initial Leverage Ratio | 4.25 | |||||||||
Senior Secured Credit Facilities | Maximum | Revolving credit commitments | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | $ 25,000 | |||||||||
Leverage Ratio required for reduction in margin rate | 2 | |||||||||
First Incremental Term Loan | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Face amount | $ 36,500 | |||||||||
Unamortized discount rate (as a percent) | 1.00% | |||||||||
First Incremental Term Loan | Enviva Pellets Southampton | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Closing fees and expenses | $ 900 | |||||||||
Debt proceeds used to finance acquisition | 35,600 | |||||||||
First Incremental Term Loan | Tranche A-3 advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Face amount | 10,000 | |||||||||
First Incremental Term Loan | Tranche A-4 advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Face amount | 26,500 | |||||||||
First Incremental Term Loan | Tranche A-4 advances | Enviva FiberCo. LLC | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Face amount | $ 15,000 | |||||||||
Unamortized discount rate (as a percent) | 1.00% | |||||||||
Prior Senior Secured Credit Facilities | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Repayment of credit facilities in full including related accrued interest | $ 82,200 | |||||||||
Closing fees and expenses | 6,400 | |||||||||
Distribution of cash to sponsor | 85,900 | |||||||||
Early retirement of debt obligation | $ 4,700 | |||||||||
Enviva Pellets Southampton Promissory Note | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Long-term debt | $ 1,500 | |||||||||
Interest rate (as a percent) | 0.00% | |||||||||
Present value | $ 700 | $ 1,100 | ||||||||
Decrease in carrying amount of debt | $ 600 | |||||||||
Effective rate (as a percent) | 7.60% | |||||||||
Enviva, LP and Subsidiaries | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Early retirement of debt obligation | 73 | |||||||||
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | $ 120,000 | |||||||||
Repayment of credit facilities in full including related accrued interest | $ 82,200 | |||||||||
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | Tranche A Advances | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | 35,000 | |||||||||
Long-term debt | $ 29,718 | |||||||||
Effective rate (as a percent) | 5.50% | |||||||||
Unamortized discount | $ 1,600 | |||||||||
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | Delayed Draw Term Commitments | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Long-term debt | $ 57,000 | |||||||||
Effective rate (as a percent) | 5.50% | |||||||||
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | Maximum | Delayed Draw Term Commitments | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | 60,000 | |||||||||
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | Maximum | Working Capital Commitments | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | 15,000 | |||||||||
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | Maximum | Letter of credit facility commitments | ||||||||||
Long term debt and capital lease obligations | ||||||||||
Aggregate principal amount | $ 10,000 |
Long-Term Debt and Capital Le49
Long-Term Debt and Capital Lease Obligations Capital Lease Obligation Table (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Long term debt | |||
Total long-term debt and capital lease obligations | $ 213,198,000 | ||
less current portion of long-term debt and capital lease obligations | (6,673,000) | ||
Long-term debt and capital lease obligations, excluding current installments | 206,525,000 | ||
Depreciation expense | 24,700,000 | ||
Maturities of long-term debt and capital lease obligations | |||
2,016 | 6,192,000 | ||
2,017 | 6,407,000 | ||
2,018 | 5,512,000 | ||
2,019 | 6,051,000 | ||
2,020 | 189,036,000 | ||
Total long-term debt and capital lease obligations | 213,198,000 | ||
Enviva Pellets Wiggins construction loan | |||
Long term debt | |||
Long-term Debt | 2,546,000 | ||
Payment of principal and interest | 32,900 | ||
lump sum payment on October 18, 2016 | $ 2,400,000 | ||
Annual rate (as a percent) | 6.35% | ||
Enviva Pellets Wiggins working capital line | |||
Long term debt | |||
Long-term Debt | $ 795,000 | ||
Payment of principal and interest | 10,300 | ||
lump sum payment on October 18, 2016 | $ 700,000 | ||
Annual rate (as a percent) | 6.35% | ||
Enviva Pellets Amory note | |||
Long term debt | |||
Long-term Debt | $ 2,000,000 | ||
Annual rate (as a percent) | 6.00% | ||
Enviva Pellets Southampton promissory note | |||
Long term debt | |||
Long-term Debt | $ 729,000 | ||
Payment of principal and interest | $ 900,000 | ||
Annual imputed rate (as a percent) | 7.60% | ||
Present value period | 3 years | ||
Other loans | |||
Long term debt | |||
Long-term Debt | $ 37,000 | ||
Capital Lease Obligations. | |||
Long term debt | |||
Long-term Debt | 329,000 | ||
Depreciation expense | 100,000 | ||
Senior Secured Credit Facilities | |||
Long term debt | |||
Long-term Debt | 0 | ||
Senior Secured Credit Facilities | Tranche A-1 advances | |||
Long term debt | |||
Long-term Debt | 96,943,000 | ||
Unamortized discount | 1,100,000 | ||
Quarterly principal payments through March 2017 | 500,000 | ||
Quarterly principal payments June 2017 through March 2018 | 700,000 | ||
Quarterly principal payments June 2018 through December 2019 | 1,200,000 | ||
Final principal payment on April 9, 2020 | $ 83,800,000 | ||
Senior Secured Credit Facilities | Tranche A-1 advances | Eurodollar rate | |||
Long term debt | |||
Interest rate (as a percent) | 5.10% | ||
Senior Secured Credit Facilities | Tranche A-2 advances | |||
Long term debt | |||
Long-term Debt | $ 73,796,000 | ||
Unamortized discount | 600,000 | ||
Final principal payment on April 9, 2020 | 71,400,000 | ||
Quarterly principal payments through December 2019 | $ 200,000 | ||
Senior Secured Credit Facilities | Tranche A-2 advances | Eurodollar rate | |||
Long term debt | |||
Interest rate (as a percent) | 5.25% | ||
Senior Secured Credit Facilities | Tranche A-3 advances | |||
Long term debt | |||
Long-term Debt | $ 9,851,000 | ||
Unamortized discount | 100,000 | ||
Final principal payment on April 9, 2020 | 8,500,000 | ||
Quarterly principal payments through December 2019 | $ 100,000 | ||
Senior Secured Credit Facilities | Tranche A-3 advances | Eurodollar rate | |||
Long term debt | |||
Interest rate (as a percent) | 5.10% | ||
Senior Secured Credit Facilities | Tranche A-4 advances | |||
Long term debt | |||
Long-term Debt | $ 26,172,000 | ||
Unamortized discount | 300,000 | ||
Final principal payment on April 9, 2020 | 25,400,000 | ||
Quarterly principal payments through December 2019 | $ 67,000 | ||
Senior Secured Credit Facilities | Tranche A-4 advances | Eurodollar rate | |||
Long term debt | |||
Interest rate (as a percent) | 5.25% | ||
Senior Secured Credit Facilities | Tranche A-4 related party advances | |||
Long term debt | |||
Long-term Debt | $ 14,800,000 | ||
Unamortized discount | 200,000 | ||
Final principal payment on April 9, 2020 | 14,400,000 | ||
Quarterly principal payments through December 2019 | $ 38,000 | ||
Senior Secured Credit Facilities | Tranche A-4 related party advances | Eurodollar rate | |||
Long term debt | |||
Interest rate (as a percent) | 5.25% | ||
Enviva, LP and Subsidiaries | |||
Long term debt | |||
Total long-term debt and capital lease obligations | $ 94,075,000 | ||
less current portion of long-term debt and capital lease obligations | (10,237,000) | ||
Long-term debt and capital lease obligations, excluding current installments | 83,838,000 | ||
Depreciation expense | 18,700,000 | $ 11,600,000 | |
Maturities of long-term debt and capital lease obligations | |||
Total long-term debt and capital lease obligations | 94,075,000 | ||
Enviva, LP and Subsidiaries | Enviva Pellets Wiggins construction loan | |||
Long term debt | |||
Long-term Debt | 2,770,000 | ||
Enviva, LP and Subsidiaries | Enviva Pellets Wiggins working capital line | |||
Long term debt | |||
Long-term Debt | 864,000 | ||
Enviva, LP and Subsidiaries | Enviva Pellets Amory note | |||
Long term debt | |||
Long-term Debt | 2,000,000 | ||
Enviva, LP and Subsidiaries | Enviva Pellets Southampton promissory note | |||
Long term debt | |||
Long-term Debt | 729,000 | ||
Enviva, LP and Subsidiaries | Other loans | |||
Long term debt | |||
Long-term Debt | 419,000 | ||
Enviva, LP and Subsidiaries | Capital Lease Obligations. | |||
Long term debt | |||
Long-term Debt | 575,000 | ||
Depreciation expense | 100,000 | $ 100,000 | |
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | Tranche A Advances | |||
Long term debt | |||
Long-term Debt | 29,718,000 | ||
Unamortized discount | $ 1,600,000 | ||
Actual rate (as a percent) | 5.50% | ||
Enviva, LP and Subsidiaries | Prior Senior Secured Credit Facilities | Delayed Draw Term Commitments | |||
Long term debt | |||
Long-term Debt | $ 57,000,000 | ||
Actual rate (as a percent) | 5.50% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 11, 2015 | May. 04, 2015 | Apr. 09, 2015 | Nov. 09, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2015 |
Related Party Transaction | ||||||||
Amount due to related party | $ 11,013,000 | |||||||
Terminal service fees | 0 | |||||||
Notes payable | $ 81,900,000 | |||||||
Related party notes payable repaid | $ 81,900,000 | |||||||
Accrued interest paid | $ 1,100,000 | |||||||
Enviva Pellets Southampton | ||||||||
Related Party Transaction | ||||||||
Consideration paid | $ 131,000,000 | |||||||
Green Circle | ||||||||
Related Party Transaction | ||||||||
Notes payable | $ 36,700,000 | |||||||
Acquisition II | ||||||||
Related Party Transaction | ||||||||
Notes payable | $ 50,000,000 | |||||||
Prior MSA | Enviva Holdings, LP. | ||||||||
Related Party Transaction | ||||||||
Amount due to related party | 6,000,000 | |||||||
Capitalized deferred issuance costs | 100,000 | |||||||
New MSA | ||||||||
Related Party Transaction | ||||||||
Annual fee expensed | 35,500,000 | |||||||
New MSA | Inventory finished goods | ||||||||
Related Party Transaction | ||||||||
Annual fee expensed | 500,000 | |||||||
New MSA | General and administrative expenses | ||||||||
Related Party Transaction | ||||||||
Annual fee expensed | 22,300,000 | |||||||
New MSA | Cost of goods sold. | ||||||||
Related Party Transaction | ||||||||
Annual fee expensed | 12,700,000 | |||||||
New MSA | Enviva Management Company, LLC | ||||||||
Related Party Transaction | ||||||||
Term of agreement | 5 years | |||||||
Enviva, LP and Subsidiaries | ||||||||
Related Party Transaction | ||||||||
Amount due to related party | $ 2,354,000 | |||||||
Enviva, LP and Subsidiaries | Prior MSA | Enviva Holdings, LP. | ||||||||
Related Party Transaction | ||||||||
Term of agreement | 6 years | |||||||
Reimbursable expenses incurred | 2,600,000 | |||||||
Amount due to related party | 2,400,000 | |||||||
Capitalized deferred issuance costs | 1,900,000 | |||||||
Capital contributions | $ 500,000 | 900,000 | $ 0 | |||||
Enviva, LP and Subsidiaries | Prior MSA | Enviva Holdings, LP. | General and administrative expenses | ||||||||
Related Party Transaction | ||||||||
Annual fee expensed | 6,700,000 | 6,600,000 | ||||||
Reimbursable expenses incurred | 2,000,000 | $ 2,200,000 | ||||||
Enviva, LP and Subsidiaries | Prior MSA | Enviva Holdings, LP. | Cost of goods sold. | ||||||||
Related Party Transaction | ||||||||
Reimbursable expenses incurred | $ 600,000 | |||||||
Enviva, LP and Subsidiaries | Prior MSA | Enviva Holdings, LP. | Maximum | ||||||||
Related Party Transaction | ||||||||
Annual fee | $ 7,200,000 | |||||||
First Incremental Term Loan | ||||||||
Related Party Transaction | ||||||||
Face amount | 36,500,000 | |||||||
First Incremental Term Loan | Tranche A-4 advances | ||||||||
Related Party Transaction | ||||||||
Face amount | 26,500,000 | |||||||
Enviva FiberCo. LLC | First Incremental Term Loan | Tranche A-4 advances | ||||||||
Related Party Transaction | ||||||||
Face amount | $ 15,000,000 | |||||||
Unamortized discount rate (as a percent) | 1.00% |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Operating Leases | |||
Rent expense | $ 100 | $ 300 | |
Future minimum lease payments under noncancelable operating leases | |||
2,016 | $ 2,423 | ||
2,017 | 1,978 | ||
2,018 | 823 | ||
2,019 | 80 | ||
Total future minimum lease payments | $ 5,304 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Provision for income tax | $ 0 | $ 0 | |
Reserves for uncertain tax position | $ 0 | ||
Reserves interest and penalties | 0 | ||
Income tax expense | 2,623 | ||
Acquisition II | |||
Income tax expense | $ 2,700 |
Partners' Capital Ownership and
Partners' Capital Ownership and Shares (Details) - shares | Dec. 11, 2015 | Dec. 31, 2015 | May. 04, 2015 |
Partners' Capital and Distribution | |||
Ownership interest (as a percent) | 51.70% | 51.70% | |
Allocations to partners (as a percent) | 100.00% | ||
Common Units | |||
Partners' Capital and Distribution | |||
Number of units issued to partnership's sponsor | 405,138 | ||
Issuance of common units associated with Enviva Pellets Southampton Drop-Down (in units) | 942,023 | ||
Subordinated Units | |||
Partners' Capital and Distribution | |||
Number of units issued to partnership's sponsor | 11,905,138 |
Partners' Capital Incentive Dis
Partners' Capital Incentive Distribution Rights (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Incentive Distribution Rights | |
Quarterly distribution of operating surplus (as a percent) | 15.00% |
Maximum | |
Incentive Distribution Rights | |
Quarterly distribution of operating surplus (as a percent) | 50.00% |
Partners' Capital Cash Distribu
Partners' Capital Cash Distribution Table (Details) - USD ($) | Feb. 03, 2016 | Oct. 28, 2015 | Jul. 29, 2015 | Dec. 31, 2015 |
Partners' Capital. | ||||
Cash distribution declared | $ 11,400,000 | $ 10,500,000 | $ 6,300,000 | $ 16,941,000 |
Cash distribution declared (in dollars per unit) | $ 0.4600 | $ 0.4400 | $ 0.2630 | $ 1.1630 |
Incentive distribution | $ 0 |
Partners' Capital Noncontrollin
Partners' Capital Noncontrolling Interest (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Enviva Pellets Wiggins, LLC | |||
Noncontrolling Interest | |||
Maximum investment committed | $ 10 | ||
Amount of additional investment committed | $ 10 | ||
Enviva Pellets Wiggins, LLC | Series B | |||
Noncontrolling Interest | |||
Number of units owned | 20 | 20 | 10 |
Number of units received from additional investment commitment | 10 | ||
Units outstanding | 30 | 30 | |
Enviva Pellets Wiggins, LLC | Series A | |||
Noncontrolling Interest | |||
Units to be received from commitment | 10 | ||
Number of units received from additional investment commitment | 10 | ||
Number of units acquired from former owner | 0.5 | ||
Consideration paid for units acquired from former owner | $ 0.5 | ||
Enviva Pellets Wiggins, LLC | Former owners | Series B | |||
Noncontrolling Interest | |||
Number of units owned | 10 | ||
Enviva Holdings, LP | Series B | |||
Noncontrolling Interest | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 67.00% | 67.00% |
Equity - Based Awards (Details)
Equity - Based Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Apr. 30, 2015 | |
Weighted Average Grant Date Fair Value per Unit | ||
General and Administrative Expense | $ 18,360 | |
Phantom units | ||
Weighted Average Grant Date Fair Value per Unit | ||
Period in which awards are settled in common units | 60 days | |
Period in which distribution related to DERs are required to be paid | 60 days | |
LTIP | ||
Long Term Incentive Plan | ||
Number of common units to be awarded under the plan | 2,738,182 | |
Affiliate Grants | ||
Number of Units | ||
Granted (in units) | 282,154 | |
Forfeitures (in units) | 12,230 | |
Nonvested at the end of the period (in units) | 269,924 | |
Weighted Average Grant Date Fair Value per Unit | ||
Granted (in dollars per unit) | $ 20.54 | |
Forfeitures (in dollar per unit) | 21.26 | |
Nonvested at the end of the period (in dollars per unit) | $ 20.51 | |
Grant date fair value | $ 5,800 | |
General and Administrative Expense | $ 400 | |
Affiliate Grants | Phantom units | ||
Number of Units | ||
Granted (in units) | 200,351 | |
Forfeitures (in units) | 12,230 | |
Nonvested at the end of the period (in units) | 188,121 | |
Weighted Average Grant Date Fair Value per Unit | ||
Granted (in dollars per unit) | $ 20.62 | |
Forfeitures (in dollar per unit) | 21.26 | |
Nonvested at the end of the period (in dollars per unit) | $ 20.58 | |
Vesting period | 3 years | |
Affiliate Grants | Performance Based Phantom units | ||
Number of Units | ||
Granted (in units) | 81,803 | |
Nonvested at the end of the period (in units) | 81,803 | |
Weighted Average Grant Date Fair Value per Unit | ||
Granted (in dollars per unit) | $ 20.36 | |
Nonvested at the end of the period (in dollars per unit) | $ 20.36 | |
Director Grants | ||
Number of Units | ||
Granted (in units) | 14,112 | |
Nonvested at the end of the period (in units) | 14,112 | |
Weighted Average Grant Date Fair Value per Unit | ||
Granted (in dollars per unit) | $ 21.26 | |
Nonvested at the end of the period (in dollars per unit) | $ 21.26 | |
Grant date fair value | $ 300 | |
Director Grants | Phantom units | ||
Number of Units | ||
Granted (in units) | 14,112 | |
Nonvested at the end of the period (in units) | 14,112 | |
Weighted Average Grant Date Fair Value per Unit | ||
Granted (in dollars per unit) | $ 21.26 | |
Nonvested at the end of the period (in dollars per unit) | $ 21.26 | |
Vesting period | 1 year |
Net Income per Limited Partne58
Net Income per Limited Partner Unit Shares (Details) - shares | May. 03, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Number of basic units outstanding | 0 | 23,893,000 | ||
Potentially dilutive subordinated units outstanding | 0 | |||
Enviva, LP and Subsidiaries | ||||
Potentially dilutive subordinated units outstanding | 0 | 0 |
Net Income per Limited Partne59
Net Income per Limited Partner Unit Computation of Net Income (Loss) Table (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 03, 2016 | Oct. 28, 2015 | Jul. 29, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | May. 04, 2015 | Dec. 31, 2015 | Dec. 10, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Net Income per Limited Partner Unit | |||||||||||||||||
Net income | $ 8,963 | $ 8,793 | $ 2,865 | $ 2,511 | $ 23,132 | $ 185 | $ (5,497) | ||||||||||
Net loss January 1, 2015 to May 4, 2015 (prior to IPO) attributable to noncontrolling partners' interest | 42 | ||||||||||||||||
Net income (loss) attributable to Enviva Partners, LP | $ 6,945 | $ 6,412 | $ 5,685 | $ 19,042 | 23,174 | ||||||||||||
Less: Distributions declared on: | |||||||||||||||||
Distributions declared | 28,128 | 28,128 | |||||||||||||||
Undistributed earnings: | |||||||||||||||||
Earnings less than distributions | (9,086) | $ (9,086) | |||||||||||||||
Prorated cash distribution (in dollars per unit) | $ 0.2630 | ||||||||||||||||
Cash distribution declared (in dollars per unit) | $ 0.4600 | $ 0.4400 | $ 0.2630 | $ 1.1630 | |||||||||||||
Cash distribution declared | $ 11,400 | $ 10,500 | $ 6,300 | $ 16,941 | |||||||||||||
Minimum | |||||||||||||||||
Undistributed earnings: | |||||||||||||||||
Cash distribution declared (in dollars per unit) | $ 0.4125 | ||||||||||||||||
Common Units | |||||||||||||||||
Net Income per Limited Partner Unit | |||||||||||||||||
Net income (loss) attributable to Enviva Partners, LP | 9,561 | ||||||||||||||||
Less: Distributions declared on: | |||||||||||||||||
Distributions declared | 14,282 | 14,282 | |||||||||||||||
Undistributed earnings: | |||||||||||||||||
Earnings less than distributions | (4,721) | ||||||||||||||||
Subordinated Units | |||||||||||||||||
Net Income per Limited Partner Unit | |||||||||||||||||
Net income | 9,481 | ||||||||||||||||
Net income (loss) attributable to Enviva Partners, LP | 9,481 | ||||||||||||||||
Less: Distributions declared on: | |||||||||||||||||
Distributions declared | 13,846 | 13,846 | |||||||||||||||
Undistributed earnings: | |||||||||||||||||
Earnings less than distributions | $ (4,365) | ||||||||||||||||
Cash distribution declared | $ 8,369 | ||||||||||||||||
Enviva, LP and Subsidiaries | |||||||||||||||||
Net Income per Limited Partner Unit | |||||||||||||||||
Net income | $ 2,308 | $ 3,105 | $ (1,871) | $ (3,357) | 185 | (5,497) | |||||||||||
Net loss January 1, 2015 to May 4, 2015 (prior to IPO) attributable to noncontrolling partners' interest | 79 | 58 | |||||||||||||||
Net income (loss) attributable to Enviva Partners, LP | $ (2,132) | $ 264 | $ (5,439) | ||||||||||||||
Southampton Dropdown | |||||||||||||||||
Net Income per Limited Partner Unit | |||||||||||||||||
Net income (loss) attributable to Enviva Partners, LP | $ 6,264 |
Net Income per Limited Partne60
Net Income per Limited Partner Unit Basic and Diluted Table (Details) - shares | May. 03, 2015 | Dec. 31, 2015 |
Weighted average number of units outstanding | ||
Weighted average common units outstanding - basic | 0 | 23,893,000 |
Weighted average common units outstanding -diluted | 24,163,000 | |
Common Units | ||
Weighted average number of units outstanding | ||
Weighted average common units outstanding - basic | 11,988,000 | |
Effect of nonvested phantom units | 270,000 | |
Weighted average common units outstanding -diluted | 12,258,000 | |
Subordinated Units | ||
Weighted average number of units outstanding | ||
Weighted average common units outstanding - basic | 11,905,138 | |
Weighted average common units outstanding -diluted | 11,905,138 |
Net Income per Limited Partne61
Net Income per Limited Partner Unit Net Income Per Unit Table (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 03, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2015 |
Net Income per Limited Partner Unit | ||||||
Distributions declared | $ 28,128 | $ 28,128 | ||||
Earnings less than distributions | (9,086) | (9,086) | ||||
Net income (loss) attributable to partners | $ 6,945 | $ 6,412 | $ 5,685 | 19,042 | $ 23,174 | |
Weighted average units outstanding - basic | 0 | 23,893,000 | ||||
Weighted average units outstanding - diluted | 24,163,000 | |||||
Net income per limited partner unit - basic | $ 1.60 | |||||
Net income per limited partner unit - diluted | $ 1.58 | |||||
Common Units | ||||||
Net Income per Limited Partner Unit | ||||||
Distributions declared | 14,282 | $ 14,282 | ||||
Earnings less than distributions | (4,721) | |||||
Net income (loss) attributable to partners | 9,561 | |||||
Weighted average units outstanding - basic | 11,988,000 | |||||
Weighted average units outstanding - diluted | 12,258,000 | |||||
Net income per limited partner unit - basic | $ 0.80 | |||||
Net income per limited partner unit - diluted | $ 0.79 | |||||
Subordinated Units | ||||||
Net Income per Limited Partner Unit | ||||||
Distributions declared | 13,846 | $ 13,846 | ||||
Earnings less than distributions | (4,365) | |||||
Net income (loss) attributable to partners | $ 9,481 | |||||
Weighted average units outstanding - basic | 11,905,138 | |||||
Weighted average units outstanding - diluted | 11,905,138 | |||||
Net income per limited partner unit - basic | $ 0.80 | |||||
Net income per limited partner unit - diluted | $ 0.79 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2015USD ($) |
Enviva Pellets Southampton promissory note | |
Other commitments | |
Face amount | $ 1.5 |
Subsequent Events (Details)
Subsequent Events (Details) - Affiliate Grants - USD ($) $ in Millions | Feb. 03, 2016 | Dec. 31, 2015 |
Subsequent Events | ||
Units granted | 282,154 | |
Phantom units | ||
Subsequent Events | ||
Units granted | 200,351 | |
Vesting period | 3 years | |
Subsequent Event | ||
Subsequent Events | ||
Units granted | 297,502 | |
Fair value of units granted | $ 5.4 | |
Subsequent Event | Phantom units | Time based | ||
Subsequent Events | ||
Units granted | 201,043 | |
Vesting period | 3 years | |
Subsequent Event | Phantom units | Performance based | ||
Subsequent Events | ||
Units granted | 96,459 |
Quarterly Financial Data (Una64
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | May. 04, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net revenue | $ 116,813 | $ 116,588 | $ 109,659 | $ 114,314 | $ 457,374 | ||||||||
Gross margin | 18,124 | 16,583 | 15,259 | 11,655 | 61,621 | ||||||||
Net (loss) income | 8,963 | 8,793 | 2,865 | $ 2,511 | 23,132 | $ 185 | $ (5,497) | ||||||
Net income attributable to Enviva Partners, LP | $ 6,945 | $ 6,412 | $ 5,685 | $ 19,042 | $ 23,174 | ||||||||
Basic income per limited partner common unit | $ 0.29 | $ 0.27 | $ 0.24 | $ 0.80 | |||||||||
Diluted income per limited partner common unit | 0.29 | 0.27 | 0.24 | 0.79 | |||||||||
Basic income per limited partner subordinated unit | 0.29 | 0.27 | 0.24 | 0.80 | |||||||||
Diluted income per limited partner subordinated unit | $ 0.29 | $ 0.27 | $ 0.24 | $ 0.79 | |||||||||
Enviva, LP and Subsidiaries | |||||||||||||
Net revenue | $ 78,977 | $ 76,110 | $ 68,551 | $ 66,498 | 290,136 | 179,887 | |||||||
Gross margin | 8,143 | 8,066 | 2,899 | 999 | 20,107 | 15,340 | |||||||
Net (loss) income | $ 2,308 | $ 3,105 | $ (1,871) | $ (3,357) | 185 | (5,497) | |||||||
Net income attributable to Enviva Partners, LP | $ (2,132) | $ 264 | $ (5,439) |