Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | Enviva Partners, LP | |
Entity Central Index Key | 1,592,057 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,478,590 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 863 | $ 524 |
Accounts receivable, net | 49,152 | 79,185 |
Related-party receivables | 5,535 | 5,412 |
Inventories | 34,322 | 23,536 |
Prepaid expenses and other current assets | 1,643 | 1,006 |
Total current assets | 91,515 | 109,663 |
Property, plant and equipment, net | 552,456 | 562,330 |
Intangible assets, net | 109 | |
Goodwill | 85,615 | 85,615 |
Other long-term assets | 4,783 | 2,394 |
Total assets | 734,369 | 760,111 |
Current liabilities: | ||
Accounts payable | 10,730 | 7,554 |
Related-party payables and accrued liabilities | 30,289 | 26,398 |
Accrued and other current liabilities | 35,849 | 29,363 |
Current portion of interest payable | 12,573 | 5,029 |
Current portion of long-term debt and capital lease obligations | 7,070 | 6,186 |
Total current liabilities | 96,511 | 74,530 |
Long-term debt and capital lease obligations | 402,447 | 394,831 |
Related-party long-term payable | 74,000 | 74,000 |
Long-term interest payable | 980 | 890 |
Other long-term liabilities | 4,687 | 5,491 |
Total liabilities | 578,625 | 549,742 |
Commitments and contingencies | ||
Partners’ capital: | ||
Common unitholders—public (14,573,452 and 13,073,439 units issued and outstanding at September 30, 2018 and December 31, 2017, respectively) | 212,539 | 224,027 |
Common unitholder—sponsor (11,905,138 and 1,347,161 units issued and outstanding at September 30, 2018 and December 31, 2017, respectively) | 76,380 | 16,050 |
Subordinated unitholder—sponsor (no units issued and outstanding at September 30, 2018 and 11,905,138 units issued and outstanding at December 31, 2017) | 101,901 | |
General Partner (no outstanding units) | (133,810) | (128,569) |
Accumulated other comprehensive income (loss) | 635 | (3,040) |
Total Enviva Partners, LP partners' capital | 155,744 | 210,369 |
Total liabilities and partners' capital | $ 734,369 | $ 760,111 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
Common Units-Public | ||
Limited partner units issued | 14,573,452 | 13,073,439 |
Limited partner units outstanding | 14,573,452 | 13,073,439 |
Common Units-Sponsor | ||
Limited partner units issued | 11,905,138 | 1,347,161 |
Limited partner units outstanding | 11,905,138 | 1,347,161 |
Subordinated Units-Sponsor | ||
Limited partner units issued | 0 | 11,905,138 |
Limited partner units outstanding | 0 | 11,905,138 |
General Partner | ||
General partner units outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Net revenue | $ 144,148 | $ 132,223 | $ 405,068 | $ 382,213 | |
Cost of goods sold | [1] | 103,695 | 100,897 | 330,456 | 296,786 |
Loss on disposal of assets | 656 | 1,237 | 900 | 3,242 | |
Depreciation and amortization | 9,678 | 9,707 | 28,800 | 29,104 | |
Total cost of goods sold | 114,029 | 111,841 | 360,156 | 329,132 | |
Gross margin | 30,119 | 20,382 | 44,912 | 53,081 | |
General and administrative expenses | [1] | 7,315 | 7,704 | 21,406 | 23,337 |
Income from operations | 22,804 | 12,678 | 23,506 | 29,744 | |
Other income (expense): | |||||
Interest expense | (9,445) | (7,653) | (27,137) | (23,070) | |
Other income (expense) | (3) | (2) | 1,196 | (199) | |
Total other expense, net | (9,448) | (7,655) | (25,941) | (23,269) | |
Net income (loss) | 13,356 | 5,023 | (2,435) | 6,475 | |
Less net loss attributable to noncontrolling partners’ interests | 665 | 3,180 | |||
Net income (loss) attributable to Enviva Partners, LP | $ 13,356 | $ 5,688 | $ (2,435) | $ 9,655 | |
Net income (loss) per unit: | |||||
Common - basic (in dollars per unit) | $ 0.45 | $ 0.20 | $ (0.25) | $ 0.40 | |
Common - diluted (in dollars per unit) | $ 0.43 | 0.19 | (0.25) | 0.37 | |
Subordinated - basic (in dollars per unit) | 0.20 | (0.25) | 0.40 | ||
Subordinated - diluted (in dollars per unit) | $ 0.20 | $ (0.25) | $ 0.40 | ||
Weighted-average number of limited partner units outstanding: | |||||
Common - basic (in units) | 26,477 | 14,412 | 19,866 | 14,400 | |
Common - diluted (in units) | 27,478 | 15,385 | 19,866 | 15,343 | |
Subordinated - basic and diluted (in units) | 11,905 | 6,541 | 11,905 | ||
General Partner | |||||
Other income (expense): | |||||
Net income (loss) | $ 3,794 | ||||
Net income (loss) attributable to Enviva Partners, LP | $ 1,532 | $ 1,063 | 4,197 | $ 2,269 | |
Product sales | |||||
Net revenue | 142,541 | 125,422 | 398,031 | 366,142 | |
Other revenue | |||||
Net revenue | [1] | 1,607 | 6,801 | 7,037 | 16,071 |
Enviva Port of Wilmington, LLC Drop-Down | General Partner | |||||
Other income (expense): | |||||
Net income (loss) attributable to Enviva Partners, LP | (651) | (3,081) | |||
Enviva Partners LP excluding Enviva Port of Wilmington, LLC Drop-Down | |||||
Other income (expense): | |||||
Net income (loss) attributable to Enviva Partners, LP | $ 13,356 | $ 6,339 | $ (2,435) | $ 12,736 | |
[1] | See Note 12, Related-Party Transactions |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income (loss) | $ 13,356 | $ 5,023 | $ (2,435) | $ 6,475 |
Other comprehensive income (loss): | ||||
Net unrealized gains (losses) on cash flow hedges | 2,713 | (1,788) | 5,750 | (4,641) |
Reclassification of net gains realized into net income (loss) | (2,013) | 55 | (2,076) | 161 |
Currency translation adjustment | 1 | 1 | ||
Total other comprehensive income | 701 | (1,733) | 3,675 | (4,480) |
Total comprehensive income | 14,057 | 3,290 | 1,240 | 1,995 |
General Partner | ||||
Net income (loss) | 3,794 | |||
General Partner | Enviva Port of Wilmington, LLC Drop-Down | ||||
Other comprehensive income (loss): | ||||
Total comprehensive income | (651) | (3,081) | ||
Enviva Partners LP excluding Enviva Port of Wilmington, LLC Drop-Down | ||||
Other comprehensive income (loss): | ||||
Total comprehensive income | 14,057 | 3,941 | 1,240 | 5,076 |
Comprehensive loss attributable to noncontrolling partners' interests | (665) | (3,180) | ||
Comprehensive income attributable to Enviva Partners, LP partners | $ 14,057 | $ 4,606 | $ 1,240 | $ 8,256 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Partners Capital - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | General Partner | Common Units-Public | Common Units-Sponsor | Subordinated Units-Sponsor | Accumulated Other Comprehensive (Loss) Income | Total |
Balance at the beginning of the period at Dec. 31, 2017 | $ (128,569) | $ 224,027 | $ 16,050 | $ 101,901 | $ (3,040) | $ 210,369 |
Balance at the beginning of the period (in units) at Dec. 31, 2017 | 13,073,439 | 1,347,161 | 11,905,138 | |||
Changes in Partners’ Capital | ||||||
Distributions to unitholders, distribution equivalent and incentive distribution rights | (3,794) | $ (28,367) | $ (8,285) | $ (14,822) | (55,268) | |
Issuance of units through Long-Term Incentive Plan | (5,675) | $ 511 | $ (1,301) | (6,465) | ||
Issuance of units through Long-Term Incentive Plan (in units) | 227,000 | (82,000) | ||||
Issuance of common units, net | $ 241 | 241 | ||||
Issuance of common units, net (in units) | 8,000 | |||||
Sale of common units | $ 13,335 | $ (13,335) | ||||
Sale of common units (in units) | 1,265,000 | (1,265,000) | ||||
Conversion of subordinated units to common units | $ 78,504 | $ (78,504) | ||||
Conversion of subordinated units to common units (in units) | 11,905,000 | (11,905,000) | ||||
Non-cash Management Services Agreement expense | 434 | $ 5,193 | 5,627 | |||
Other comprehensive income | 3,675 | 3,675 | ||||
Net income (loss) | 3,794 | (2,401) | $ 4,747 | $ (8,575) | (2,435) | |
Balance at the end of the period at Sep. 30, 2018 | $ (133,810) | $ 212,539 | $ 76,380 | $ 635 | $ 155,744 | |
Balance at the end of the period (in units) at Sep. 30, 2018 | 14,573,452 | 11,905,138 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (2,435) | $ 6,475 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 29,240 | 29,115 |
Amortization of debt issuance costs, debt premium and original issue discounts | 828 | 1,161 |
General and administrative expense incurred by the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down | 1,338 | |
Loss on disposal of assets | 900 | 3,242 |
Unit-based compensation | 5,604 | 5,113 |
De-designation of foreign currency forwards and options | (1,947) | |
Fair value changes in derivatives | (4,465) | (13) |
Unrealized loss on foreign currency transactions | 32 | |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 30,004 | 28,026 |
Related-party receivables | (123) | (3,312) |
Prepaid expenses and other assets | (160) | 76 |
Assets held for sale | (310) | |
Inventories | (9,735) | (4,433) |
Other long-term assets | 86 | |
Derivatives | 5,080 | (1,442) |
Accounts payable, accrued liabilities and other current liabilities | 5,475 | (6,845) |
Related-party payables and accrued liabilities | 3,317 | 8,832 |
Accrued interest | 7,634 | 6,301 |
Other current liabilities | 234 | |
Other long-term liabilities | 648 | 621 |
Net cash provided by operating activities | 70,131 | 74,031 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (16,034) | (21,916) |
Insurance proceeds from property loss | 1,130 | |
Net cash used in investing activities | (14,904) | (21,916) |
Cash flows from financing activities: | ||
Principal payments on debt and capital lease obligations | (4,745) | (3,428) |
Cash paid related to debt issuance costs | (209) | |
Proceeds from common unit issuance under the At-the-Market Offering Program, net | 241 | 1,715 |
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder | (55,163) | (46,323) |
Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting | (2,341) | |
Payment for withholding tax associated with Long-Term Incentive Plan vesting | (4,380) | |
Proceeds and payments on revolving credit commitments, net | 11,500 | (6,500) |
Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down | 1,652 | |
Proceeds from contributions from the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down | 9,965 | |
Net cash used in financing activities | (54,888) | (43,128) |
Net increase in cash, cash equivalents and restricted cash | 339 | 8,987 |
Cash, cash equivalents and restricted cash, beginning of period | 524 | 466 |
Cash, cash equivalents and restricted cash, end of period | 863 | 9,453 |
Non-cash investing and financing activities: | ||
Property, plant and equipment acquired included in accounts payable and accrued liabilities | 7,539 | 6,649 |
Property, plant and equipment acquired under capital leases obligations | 949 | 1,124 |
Property, plant and equipment transferred from inventories | 2 | 279 |
Distributions included in liabilities | 1,047 | 937 |
Withholding tax payable associated with Long-Term Incentive Plan vesting | 156 | |
Conversion of subordinated units to common units | 78,504 | |
Application of short-term deposit to fixed assets | 258 | |
Depreciation capitalized to inventories | 1,508 | 483 |
Supplemental information: | ||
Interest paid | $ 18,802 | $ 15,516 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Description of Business and Basis of Presentation | |
Description of Business and Basis of Presentation | (1) Description of Business and Basis of Presentation Description of Business Enviva Partners, LP, together with its subsidiaries (“we,” “us,” “our,” or the “Partnership”), supplies utility-grade wood pellets primarily to major power generators under long-term, take-or-pay off-take contracts. We procure wood fiber and process it into utility-grade wood pellets and load the finished wood pellets into railcars, trucks and barges for transportation to deep-water marine terminals, where they are received, stored and ultimately loaded onto oceangoing vessels for delivery to the Partnership’s principally European customers. We own and operate 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 our wholly owned dry-bulk, deep-water marine terminal in Chesapeake, Virginia (the “Chesapeake terminal”) and terminal assets in Wilmington, North Carolina (the “Wilmington terminal”), and from third-party deep-water marine terminals in Mobile, Alabama and Panama City, Florida, under a short-term and a long-term contract, respectively. Basis of Presentation The unaudited financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments and accruals necessary for a fair presentation have been included. All such adjustments and accruals are of a normal and recurring nature unless disclosed otherwise. All significant intercompany balances and transactions have been eliminated in consolidation. The results reported in the financial statements are not necessarily indicative of the results that may be reported for the entire year. The unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. Enviva Port of Wilmington, LLC In October 2017, we acquired from Enviva Wilmington Holdings, LLC (the “First Hancock JV”), a joint venture between a wholly owned subsidiary of Enviva Holdings, LP (the “sponsor”) and certain affiliates of John Hancock Life Insurance Company (U.S.A.) (“John Hancock”), all of the issued and outstanding limited liability company interests in Enviva Port of Wilmington, LLC (“Wilmington”), which owns the Wilmington terminal assets. The purchase price for Wilmington was $130.0 million, which included an initial payment of $54.6 million, net of an approximate purchase price adjustment of $1.4 million, and deferred consideration of $74.0 million. The acquisition (the “Wilmington Drop-Down”) included the Wilmington terminal assets and a long-term terminal services agreement with the sponsor (the “Holdings TSA”) to handle throughput volumes sourced by the sponsor from Enviva Pellets Greenwood, LLC (“Greenwood”), a wholly owned subsidiary of Enviva JV Development Company, LLC (the “Second Hancock JV”), a joint venture between a wholly owned subsidiary of the sponsor and certain affiliates of John Hancock. Greenwood owns a wood pellet production plant in Greenwood, South Carolina (the “Greenwood plant”). See Note 12, Related-Party Transactions . The Wilmington Drop-Down was accounted for as a combination of entities under common control at historical cost in a manner similar to a pooling of interests. Accordingly, the unaudited financial statements for the periods prior to the three and nine months ended September 30, 2017 were retrospectively recast to reflect the acquisition of Wilmington as if it had occurred on May 15, 2013, the date Wilmington was originally organized (see Note 4, Transactions Between Entities Under Common Control ). |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Significant Accounting Policies | |
Significant Accounting Policies | (2) Significant Accounting Policies During interim periods, we follow the accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2017 except for our adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018. The adoption changed our accounting policies for revenue recognition and cost of goods sold. 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 our unaudited financial statements and accompanying notes. Actual results could differ materially from those estimates. Revenue Recognition We primarily earn revenue by supplying wood pellets to customers under off-take contracts, the majority of the commitments under which are long-term in nature. We refer to the structure of our off-take contracts as “take-or-pay” because they include a firm obligation of the customer to take a fixed quantity of product at a stated price and provisions that ensure we will be compensated in the case of a customer’s failure to accept all or a part of the contracted volumes or termination of a contract. Our long-term off-take contracts define the annual volume of wood pellets that a customer is required to purchase and we are required to sell, the fixed price per metric ton (“MT”) for product satisfying a base net calorific value and other technical specifications. The prices are fixed for the entire term, and are subject to adjustments which may include annual inflation-based adjustments or price escalators, price adjustments for product specifications, as well as, in some instances, price adjustments due to changes in underlying indices. In addition to sales of our product under these long-term off-take contracts, we routinely sell wood pellets under shorter-term contracts, which range in volume and tenor and, in some cases, may include only one specific shipment. Because each of our off-take contracts is a bilaterally negotiated agreement, our revenue over the duration of such contracts does not generally follow observable current market pricing trends. Our performance obligations under these contracts, which we aggregate into metric tons, include the delivery of wood pellets. We account for each MT as a single performance obligation. Our revenue from the sales of wood pellets we produce is recognized as product sales upon satisfaction of our performance obligation when control transfers to the customer at the time of loading wood pellets onto a ship. Depending on the specific off‑take contract, shipping terms are either Cost, Insurance and Freight (“CIF”), Cost and Freight (“CFR”) or Free on Board (“FOB”). Under a CIF contract, we procure and pay for shipping costs, which include insurance and all other charges, up to the port of destination for the customer. Under a CFR contract, we procure and pay for shipping costs, which include insurance (excluding marine cargo insurance) and all other charges, up to the port of destination for the customer. Shipping under CIF and CFR contracts after control has passed to the customer is considered a fulfillment activity rather than a performance obligation and associated expenses are included in the price to the customer. Under FOB contracts, the customer is directly responsible for shipping costs. In some cases, we may purchase shipments of product from third-party suppliers and resell them in back-to-back transactions (“purchase and sale transactions”). We determined that we are the principal in such transactions because we control the pellets prior to transferring them to the customer and therefore we recognize the related revenue on a gross basis in product sales. In instances in which a customer requests the cancellation, deferral or acceleration of a shipment, the customer may pay a fee, which is included in other revenue. We recognize third- and related-party terminal services revenue ratably over the related contract term, which is included in other revenue. Terminal services are performance obligations that are satisfied over time, as customers simultaneously receive and consume the benefits of the terminal services we perform. The consideration is generally fixed for minimum quantities and any above the minimum are generally billed based on a per-ton rate. Variable consideration from off-take contracts arises from several pricing features outlined in our off-take contracts, pursuant to which such contract pricing may be adjusted in respect of particular shipments to reflect differences between certain contractual quality specifications of the wood pellets as measured both when the wood pellets are loaded onto ships and unloaded at the discharge port as well as certain other contractual adjustments. Variable consideration from terminal services contracts arises from price increases based on agreed inflation indices and from above-minimum throughput quantities or services. We allocate variable consideration under our off-take and terminal services contracts entirely to each performance obligation to which variable consideration relates. The estimate of variable consideration represents the amount that is probable of not being reversed. Under our off-take contracts, customers are obligated to pay the majority of the purchase price prior to the arrival of the ship at the customers’ discharge port. The remaining portion is paid after the wood pellets are unloaded at the discharge port. We generally recognize revenue prior to the issuance of an invoice to the customer. Cost of Goods Sold Cost of goods sold includes the cost to produce and deliver wood pellets to customers, reimbursable shipping-related costs associated with specific off-take contracts with CIF and CFR shipping terms and costs associated with purchase and sale transactions. Raw material, production and distribution costs associated with delivering wood pellets to marine terminals and third‑ and related-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 our production plants. These costs are reflected in cost of goods sold when inventory is sold. Distribution costs associated with shipping wood pellets to customers and amortization of favorable acquired customer contracts are expensed as incurred. Inventory is recorded using the first-in, first-out method (“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. Recently Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which subsequently was issued as ASC 606. ASC 606 requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We recognize revenue under ASC 606 and related amendments, which we adopted as of January 1, 2018, using the modified retrospective transition method. We determined that, upon adoption of ASC 606, our off-take contracts will continue to be classified as product sales. Revenue is recognized at the point in time at which control of the wood pellets passes to the customer as the wood pellets are loaded onto shipping vessels, which is consistent with the timing of revenue recognition under our legacy accounting policy. However, the adoption of ASC 606 impacted the basis of presentation for purchase and sale transactions. Prior to the adoption of ASC 606, we reported revenue from purchase and sale transactions net of costs paid to third-party suppliers, which was classified as other revenue. Subsequent to the adoption of ASC 606, we recognize revenue on a gross basis in products sales when we determine that we act as a principal and control the wood pellets before they are transferred to the customer. The decision as to whether to recognize revenue on a gross or net basis requires significant judgment. Recoveries from customers for certain costs we incurred at the discharge port under our off-take contracts were reported in product sales prior to the adoption of ASC 606. Under ASC 606, these recoveries are not considered a part of the transaction price, and therefore are excluded from product sales and included as an offset to cost of goods sold. We disaggregate our revenue into two categories: product sales and other revenue. These categories best reflect the nature, amount, timing and uncertainty of our revenue and cash flows. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, whereas prior comparative reporting periods have not been adjusted and continue to be reported under the accounting standards in effect for such periods. We did not have a transition adjustment as a result of adopting ASC 606. The table below indicates the impact of the adoption of ASC 606 on revenue and cost of goods sold: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Adoption of ASC 606 Without Adoption of ASC 606 As Reported Adoption of ASC 606 Without Adoption of ASC 606 Product sales $ 142,541 $ (571) $ 141,970 $ 398,031 $ (6,178) $ 391,853 Other revenue 1,607 351 1,958 7,037 337 7,374 Cost of goods sold 114,029 (220) 113,809 360,156 (5,841) 354,315 Gross margin $ 30,119 $ — $ 30,119 $ 44,912 $ — $ 44,912 In January 2017, the FASB issued ASU 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business , to provide guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the assets acquired (or disposed of) are not considered a business. We adopted ASU 2017-01 as of January 1, 2018 and will apply the ASU prospectively. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230)—Restricted Cash: A Consensus of the FASB Emerging Issues Task Force , which requires changes in restricted cash that result from transfers between cash, cash equivalents and restricted cash to not be presented as cash flow activities in the statements of cash flows. We adopted ASU 2016-18 as of January 1, 2018. As of September 30, 2018 and 2017, we had no amounts held as restricted cash. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230)—Classification of Certain Cash Receipts and Cash Payments , which reduces diversity in practice of how certain cash receipts and cash payments are classified in the statement of cash flows. The ASU includes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. We adopted ASU 2016-15 as of January 1, 2018, which had no material effect on how we present and classify cash receipts and cash payments in the condensed consolidated statements of cash flows. Recently Issued Accounting Standards not yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)-Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates, modifies and adds disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted, and is to be applied on a modified retrospective basis. We do not anticipate the adoption of ASU 2018-13 will have a material impact on our presentation of disclosures included in our consolidated statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815)-Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. ASU 2017-12 requires a modified retrospective transition method which requires the recognition of the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are in the process of evaluating the impact of the adoption of ASU 2017-12 on our consolidated statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other . ASU 2017-04 simplifies the testing for goodwill impairment by eliminating Step 2 of the current goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and will recognize an impairment charge equal to the amount by which the carrying amount exceeds the reporting unit’s fair value. The new guidance should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. We will early adopt this ASU in connection with our December 2018 annual impairment test. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires an entity that leases assets to recognize on the balance sheet a right-of-use asset and a lease liability for the rights and obligations created by those leases with terms of greater than twelve months. Leases will be classified as either financing or operating, similar to current accounting requirements, with such classification determining the pattern of expense recognition in the statement of operations. ASU 2016-02, as amended by subsequent ASUs, replaces the current definition of a lease and requires that an arrangement be recognized as a lease when a customer has the right to obtain substantially all of the economic benefits from the use of an asset, as well as the right to direct the use of the asset. The guidance also requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, with early adoption permitted. We will adopt the ASU on January 1, 2019 using a modified retrospective approach as of the beginning of the period, which will require us to recognize and measure all leases within the scope of the ASU. We are continuing to evaluate the impact of the ASU and expect to recognize right-of-use assets and liabilities related to real estate, machinery, equipment and other operating leases, which could have a material impact on our consolidated balance sheet. We are assessing whether other business supply arrangements contain leases under the new standard. In addition to additional assets and liabilities, the interest component of financial leases may be accelerated. We do not expect a significant change in leasing activity prior to adoption of the ASU. The status of our implementation is as follows: · We have formed an implementation team that meets to discuss implementation challenges, technical interpretations and project status. · We continue to gather data and review contracts in order to finalize the inventory of leases. · We have purchased system software and are in the process of system implementation. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue | |
Revenue | (3) Revenue Performance Obligations As of October 1, 2018, we expect to recognize approximately $7.3 billion in revenue from our remaining performance obligations with fixed consideration and a weighted‑average remaining term of 9.4 years. Our off-take contracts expire at various times through 2037 and our terminal services contracts extend into 2026. The following table includes our estimated revenue associated with remaining performance obligations: Period from October 1, 2018 to December 31, 2018 2019 Thereafter Total Product sales $ 165,859 $ 651,725 $ 6,505,876 $ 7,323,460 Other revenue 177 708 1,180 2,065 Total revenue $ 166,036 $ 652,433 $ 6,507,056 $ 7,325,525 Variable Consideration Variable consideration from off-take contracts arises from several pricing features outlined in our off-take contracts, pursuant to which such contract pricing may be adjusted in respect of particular shipments to reflect differences between certain contractual quality specifications of the wood pellets as measured both when the wood pellets are loaded onto ships and unloaded at the discharge port as well as certain other contractual adjustments. Variable consideration from terminal services contracts, which was not material for the three and nine months ended September 30, 2018, arises from price increases based on agreed inflation indices and from above-minimum throughput quantities or services. We allocate variable consideration under our off-take and terminal services contracts entirely to each performance obligation to which variable consideration relates. The estimate of variable consideration represents the amount that is not more likely than not to be reversed. For the three and nine months ended September 30, 2018, we recognized an insignificant amount of revenue related to performance obligations satisfied in previous periods. Contract Balances Accounts receivable related to product sales as of September 30, 2018 and December 31, 2017 were $47.1 million and $78.0 million, respectively. We had an insignificant amount of deferred revenue as of September 30, 2018 and no deferred revenue as of December 31, 2017 for future performance obligations associated with off-take contracts. |
Transactions Between Entities U
Transactions Between Entities Under Common Control | 9 Months Ended |
Sep. 30, 2018 | |
Transactions Between Entities Under Common Control | |
Transactions Between Entities Under Common Control | (4) Transactions Between Entities Under Common Control The financial statements for the three and nine months ended September 30, 2017 have been recast to reflect the Wilmington Drop-Down as if had occurred on May 15, 2013, the date Wilmington was originally organized. The historical net equity amounts of Wilmington prior to the date of the Wilmington Drop-Down were attributed to Enviva Partners GP, LLC, the general partner of the Partnership (the “General Partner”) and any non-controlling interest. The following table presents the changes to previously reported amounts in the unaudited condensed consolidated balance sheet as of September 30, 2017 included in our quarterly report on Form 10-Q for the quarter ended September 30, 2017: As of September 30, 2017 As Enviva Port of Reported Wilmington, LLC Total (Recast) Cash and cash equivalents $ 9,453 $ — $ 9,453 Accounts receivable, net 49,855 — 49,855 Related-party receivables 7,748 968 8,716 Inventories 34,477 96 34,573 Prepaid expenses and other current assets 4,540 42 4,582 Total current assets 106,073 1,106 107,179 Property, plant and equipment, net of accumulated depreciation 495,366 75,485 570,851 Goodwill 85,615 — 85,615 Other long-term assets 2,180 52 2,232 Total assets $ 689,234 $ 76,643 $ 765,877 Accounts payable $ 3,122 $ 188 $ 3,310 Related-party payables 19,948 (615) 19,333 Accrued and other current liabilities 46,715 2,834 49,549 Total current liabilities 69,785 2,407 72,192 Long-term debt and capital lease obligations 338,115 187 338,302 Other long-term liabilities 4,134 1,622 5,756 Total liabilities 412,034 4,216 416,250 Total partners’ capital 277,200 72,427 349,627 Total liabilities and partners’ capital $ 689,234 $ 76,643 $ 765,877 The following table presents the changes to previously reported amounts in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2017 included in our quarterly report on Form 10-Q for the quarter ended September 30, 2017: Three Months Ended September 30, 2017 As Enviva Port of Total Reported Wilmington (Recast) Net revenue $ 131,458 $ 765 $ 132,223 Total cost of goods sold 110,340 1,501 111,841 Gross margin 21,118 (736) 20,382 Net income (loss) 6,334 (1,311) 5,023 Less net loss attributable to noncontrolling partners’ interests 5 660 665 Net income (loss) attributable to Enviva Partners, LP 6,339 (651) 5,688 Net loss attributable to general partner — (651) (651) Net income attributable to Enviva Partners, LP limited partners’ interest in net income 6,339 — 6,339 Nine Months Ended September 30, 2017 As Enviva Port of Total Reported Wilmington (Recast) Net revenue $ 380,529 $ 1,684 $ 382,213 Total cost of goods sold 322,748 6,384 329,132 Gross margin 57,781 (4,700) 53,081 Net income (loss) 12,695 (6,220) 6,475 Less net income attributable to noncontrolling partners’ interests 41 3,139 3,180 Net income (loss) attributable to Enviva Partners, LP 12,736 (3,081) 9,655 Net loss attributable to general partner — (3,081) (3,081) Net income attributable to Enviva Partners, LP limited partners’ interest in net income 12,736 — 12,736 The following table presents the changes to previously reported amounts in the unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2017 included in our quarterly report on Form 10-Q for the quarter ended September 30, 2017: Nine Months Ended September 30, 2017 As Enviva Port of Total Reported Wilmington (Recast) Net cash provided by (used in) operating activities $ 76,327 $ (2,296) $ 74,031 Net cash used in investing activities (14,289) (7,627) (21,916) Net cash (used in) provided by financing activities (53,051) 9,923 (43,128) Net increase in cash, cash equivalents and restricted cash $ 8,987 $ — $ 8,987 |
Significant Risks and Uncertain
Significant Risks and Uncertainties Including Business and Credit Concentrations | 9 Months Ended |
Sep. 30, 2018 | |
Significant Risks and Uncertainties Including Business and Credit Concentrations | |
Significant Risks and Uncertainties Including Business and Credit Concentrations | (5) Significant Risks and Uncertainties Including Business and Credit Concentrations Our business is significantly impacted by greenhouse gas emission and renewable energy legislation and regulations in the European Union as well as its member states. If the European Union or its member states significantly modify such legislation or regulations, then our ability to enter into new contracts as the current contracts expire may be materially affected. Our current sales are primarily to industrial customers located in the United Kingdom, Denmark and Belgium. Product sales to third-party customers that accounted for 10% or a greater share of consolidated product sales are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 (Recast) 2018 2017 (Recast) Customer A 52 % 73 % 53 % 68 % Customer B 10 % 14 % 10 % 15 % Customer C 24 % 4 % 15 % 1 % Customer D 9 % 9 % 14 % 12 % |
Inventory Impairment and Asset
Inventory Impairment and Asset Disposal | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Impairment and Asset Disposal. | |
Inventory Impairment and Asset Disposal | (6) Inventory Impairment and Asset Disposal On February 27, 2018, a fire occurred at the Chesapeake terminal, causing damage to equipment and approximately 43,000 MT of wood pellets (the “Chesapeake Incident”). As part of our risk management process, we maintain certain insurance policies, which are subject to deductibles and sublimits for each covered event. When recovery of all or a portion of property damage loss or other covered expenses through insurance proceeds is probable, a receivable is recorded and the loss or expense is reduced up to the amount of the total loss or expense. No gain is recorded until all contingencies related to the insurance claim have been resolved. Income resulting from business interruption insurance is not recognized until all contingencies related to the insurance recoveries are resolved. We believe that substantially all of the costs resulting from the Chesapeake Incident are recoverable through our insurance policies and other contractual rights. Following the Chesapeake Incident, we commissioned temporary storage, handling and shiploading operations at various locations, including a nearby terminal in Norfolk, Virginia, and began utilizing our Wilmington terminal to ship product from our wood pellet production plants in the Mid-Atlantic region (collectively, “business continuity activities”). Although t he Chesapeake terminal returned to operation on June 28, 2018, costs associated with business continuity activities continued through the third quarter of 2018 as we unwound our extended logistics chain. We recorded impairment of terminal assets of $0 and $1.1 million during the three and nine months ended September 30, 2018, respectively. During the three and nine months ended September 30, 2018, write-off of product, inclusive of disposal costs, was $0 and $10.7 million, respectively, which is included in cost of goods sold. Additional costs primarily related to emergency response, asset repairs and business continuity activities of $9.7 million and $46.6 million were incurred during the three and nine months ended September 30, 2018, respectively, and are included in cost of goods sold. As of September 30, 2018, we have received $47.5 million of insurance proceeds and have recorded $1.7 million of additional insurance recoveries in accounts receivable reflecting the insurance proceeds that are probable of receipt up to the amount of the loss recorded, in connection with the Chesapeake Incident. We subsequently received the $1.7 million of insurance recoveries in October 2018. We recorded $21.8 million and $48.1 million of insurance recoveries in cost of goods sold during the three and nine months ended September 30, 2018, respectively. Of the $21.8 million and $48.1 million of insurance recoveries recorded during the three and nine months ended September 30, 2018, respectively, $11.4 million and $24.4 million, respectively, was related to business continuity activities. During the three and nine months ended September 30, 2018, we received and recognized $0 and $1.1 million, respectively, of insurance recoveries in other income related to lost profit. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventories | |
Inventories | (7) Inventories Inventories consisted of the following at: September 30, December 31, 2018 2017 Raw materials and work-in-process $ 3,896 $ 4,516 Consumable tooling 16,304 14,447 Finished goods 14,122 4,573 Total inventories $ 34,322 $ 23,536 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | (8) Property, Plant and Equipment Property, plant and equipment consisted of the following at: September 30, December 31, 2018 2017 Land $ 13,492 $ 13,492 Land improvements 44,675 42,962 Buildings 196,696 196,153 Machinery and equipment 419,181 413,349 Vehicles 635 635 Furniture and office equipment 6,083 5,970 Leasehold improvements 987 987 681,749 673,548 Less accumulated depreciation (145,297) (117,067) 536,452 556,481 Construction in progress 16,004 5,849 Total property, plant and equipment, net $ 552,456 $ 562,330 Total depreciation expense was $9.8 million and $29.1 million and $9.0 million and $27.9 million for the three and nine months ended September 30, 2018 and 2017, respectively. Accrued amounts for property, plant and equipment and construction in progress included in accrued liabilities and other current liabilities were $5.7 million and $2.3 million at September 30, 2018 and December 31, 2017, respectively. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments | |
Derivative Instruments | (9) Derivative Instruments We use derivative instruments to partially offset our business exposure to foreign currency exchange and interest rate risk. We may enter into foreign currency forward and option contracts to offset some of the foreign currency exchange risk on our expected future cash flows and interest rate swaps to offset some of the interest rate risk on our expected future cash flows on certain borrowings. Our derivative instruments expose us to credit risk to the extent that our hedge counterparties may be unable to meet the terms of the applicable derivative instrument. We seek to mitigate such risks by limiting our counterparties to major financial institutions. In addition, we monitor the potential risk of loss with any one counterparty resulting from credit risk. Management does not expect material losses as a result of defaults by counterparties. We use derivative instruments to manage cash flow and not for speculative or trading purposes. Cash Flow Hedges Foreign Currency Exchange Risk We are primarily exposed to fluctuations in foreign currency exchange rates related to off-take contracts that require future deliveries of wood pellets to be settled in British Pound Sterling (“GBP”) and Euro (“EUR”). We have entered and may continue to enter into foreign currency forward contracts, purchased option contracts or other instruments to partially manage this risk and, prior to August 2018, have designated certain of these instruments as cash flow hedges. For qualifying cash flow hedges, the effective portion of the gain or loss on the change in fair value is initially reported as a component of accumulated other comprehensive income in partners’ capital and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss, if any, is reported in earnings in the current period. We considered our cash flow hedges to be highly effective at inception. Changes in fair value for derivative instruments not designated as hedging instruments are recognized in earnings. During August 2018, we elected to discontinue hedge accounting for all designated foreign currency cash flow hedges. As of the election date, the change in fair value of the cash flow hedges was recognized in accumulated other comprehensive income. Due to recent increases in demand for wood pellets and requests from customers to accommodate the acceleration or deferral of contracted deliveries, we have determined that it is not probable that the timing of the forecasted revenues associated with the hedged transactions will occur as originally scheduled. As a result, we reclassified the full amount of unrealized net gains included in accumulated other comprehensive income of $1.9 million to earnings. As of September 30, 2018, none of our foreign currency derivative instruments were designated as cash flow hedging instruments. In connection with the discontinuation of cash flow hedge accounting, we have recorded the changes in the fair value of foreign currency hedges as product sales. During the three and nine months ended September 30, 2018, we recorded $2.3 million and $5.4 million, respectively, of unrealized net gains on derivative instruments in product sales. Included in the unrealized net gains for both the three and nine months ended September 30, 2018 was $1.9 million related to the reclassification of unrealized net gains previously included in accumulated other comprehensive income as described above. During the three months ended September 30, 2018, we received $4.3 million on realized gains related to derivatives settled during the period. We do not intend to designate future foreign currency hedges as cash flow hedges; as a result, all future changes in the fair value of hedging instruments will be recognized in product sales. Interest Rate Risk We are exposed to fluctuations in interest rates on borrowings under our senior secured credit facilities. We entered into a pay-fixed, receive-variable interest rate swap to hedge the interest rate risk associated with our variable rate borrowings under our senior secured credit facilities. Our interest rate swap expires in April 2020. The fair values of cash flow hedging instruments as of September 30, 2018 were as follows: Asset Liability Balance Sheet Location Derivatives Derivatives Derivatives designated as hedging instruments: Forward contracts: Interest rate swap Other current assets $ 532 $ — Interest rate swap Other long-term assets 314 — Total derivatives designated as hedging instruments $ 846 $ — Derivatives not designated as hedging instruments: Forward contracts: Foreign currency exchange forward contracts Prepaid and other current assets $ 255 $ — Foreign currency exchange forward contracts Other long-term assets 1,030 Foreign currency exchange forward contracts Accrued and other current liabilities — 263 Foreign currency exchange forward contracts Other long-term liabilities — 902 Purchased options: Foreign currency purchased option contracts Other long-term assets 2,410 — Total derivatives not designated as hedging instruments $ 3,695 $ 1,165 Net gains included in product sales related to the change of fair market value of derivative instruments not designated as hedging instruments during the three and nine months ended September 30, 2018 were $0.4 million and $3.5 million, respectively. The fair values of cash flow hedging instruments as of December 31, 2017 were as follows: Asset Liability Balance Sheet Location Derivatives Derivatives Derivatives designated as hedging instruments: Forward contracts: Foreign currency exchange forward contracts Other long-term liabilities $ — $ 2,118 Purchased options: Foreign currency purchased option contracts Prepaid and other current assets 1,024 — Interest rate swap: Interest rate swap Prepaid and other current assets 220 — Interest rate swap Other long-term assets 407 — Total derivatives designated as hedging instruments $ 1,651 $ 2,118 Derivatives not designated as hedging instruments: Forward contracts: Foreign currency exchange forward contracts Prepaid and other current assets $ 124 $ — Foreign currency exchange forward contracts Accrued and other current liabilities — 806 Foreign currency exchange forward contracts Other long-term liabilities — 528 Purchased options: Foreign currency purchased option contracts Prepaid and other current assets 3 — Foreign currency purchased option contracts Other long-term assets 45 — Total derivatives not designated as hedging instruments $ 172 $ 1,334 Net gains included in other income (expense) related to the change of fair market value of derivative instruments not designated as hedging instruments were $0.1 million and $0.3 million, respectively, during the three and nine months ended September 30, 2017. The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive loss and the gains and losses recognized in earnings for the three months ended September 30, 2018 were as follows: Amount of Location of Gain (Loss) Location of Gain Amount of Gain Amount of Gain Gain (Loss) Reclassified from (Loss) Recognized in (Loss) Recognized in (Loss) in Other Reclassified from Accumulated Other Earnings on Derivative Earnings on Derivative Comprehensive Accumulated Other Comprehensive (Ineffective Portion (Ineffective Portion (Loss) income on Comprehensive (Loss) Income and Amount and Amount Derivative (Loss) Income into Earnings Excluded from Excluded from (Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) Foreign currency exchange forward contracts $ 1,907 Product sales $ — Product sales $ 2,418 Foreign currency exchange purchased option contracts 765 Product sales — Product sales (470) Interest rate swap 41 Other income (expense) — Other income (expense) 67 The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive loss and the gains and losses recognized in earnings for the nine months ended September 30, 2018 were as follows: Amount of Location of Gain (Loss) Location of Gain Amount of Gain Amount of Gain Gain (Loss) Reclassified from (Loss) Recognized in (Loss) Recognized in (Loss) in Other Reclassified from Accumulated Other Earnings on Derivative Earnings on Derivative Comprehensive Accumulated Other Comprehensive (Ineffective Portion (Ineffective Portion (Loss) income on Comprehensive (Loss) Income and Amount and Amount Derivative (Loss) Income into Earnings Excluded from Excluded from (Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) Foreign currency exchange forward contracts $ 4,532 Product sales $ — Product sales $ 2,413 Foreign currency exchange purchased option contracts 749 Product sales — Product sales (470) Interest rate swap 469 Other income (expense) — Other income (expense) 131 The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive loss and the gains and losses recognized in earnings for the three months ended September 30, 2017 were as follows: Amount of Location of Gain (Loss) Location of Gain Location of Gain Amount of Gain Gain (Loss) Reclassified from (Loss) Recognized in (Loss) Recognized in (Loss) in Other Reclassified from Accumulated Other Income on Derivative Income on Derivative Comprehensive Accumulated Other Comprehensive (Ineffective Portion (Ineffective Portion Income on Comprehensive Income and Amount and Amount Derivative Income into Income Excluded from Excluded from (Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) Foreign currency exchange forward contracts $ (1,484) Product sales $ 26 Product sales $ (1) Foreign currency exchange forward contracts (22) Other revenue (30) Other revenue — Foreign currency exchange purchased option contracts (294) Product sales — Product sales — Interest rate swap 12 Other income (expense) (51) Other income (expense) 13 The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive loss and the gains and losses recognized in earnings for the nine months ended September 30, 2017 were as follows: Amount of Location of Gain (Loss) Location of Gain Location of Gain Amount of Gain Gain (Loss) Reclassified from (Loss) Recognized in (Loss) Recognized in (Loss) in Other Reclassified from Accumulated Other Earnings on Derivative Earnings on Derivative Comprehensive Accumulated Other Comprehensive (Ineffective Portion (Ineffective Portion Income on Comprehensive Income and Amount and Amount Derivative Income into Earnings Excluded from Excluded from (Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) Foreign currency exchange forward contracts $ (3,445) Product sales $ 26 Product sales $ (1) Foreign currency exchange forward contracts (11) Other revenue (11) Other revenue — Foreign currency exchange purchased option contracts (1,047) Product sales — Product sales — Interest rate swap (138) Other income (expense) (176) Other income (expense) 13 We enter into master netting arrangements, which are designed to permit net settlement of derivative transactions among the respective counterparties. If we had settled all transactions with our respective counterparties at September 30, 2018, we would have received a net settlement termination payment of $3.4 million, which differs insignificantly from the recorded fair value of the derivatives. We present our derivative assets and liabilities at their gross fair values. The notional amounts of outstanding derivative instruments associated with outstanding or unsettled derivative instruments were as follows: September 30, December 31, 2018 2017 Foreign exchange forward contracts in GBP £ 45,630 £ 46,465 Foreign exchange purchased option contracts in GBP £ 39,365 £ 34,050 Foreign exchange forward contracts in EUR € 14,300 € 5,350 Foreign exchange purchased option contracts in EUR € 1,675 € — Interest rate swap $ 41,198 $ 44,756 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | (10) Fair Value Measurements The amounts reported in the unaudited condensed consolidated balance sheets as cash and cash equivalents, accounts receivable, related-party receivables, prepaid expenses and other current assets, accounts payable, related-party payables and accrued liabilities and accrued and other current liabilities approximate fair value because of the short-term nature of these instruments. Derivative instruments and long-term debt and capital lease obligations, including the current portion, are classified as Level 2 instruments. The fair value of our senior notes (see Note 11, Long-Term Debt and Capital Lease Obligations – Senior Notes Due 2021 ) was determined based on observable market prices in a less active market and was categorized as Level 2 in the fair value hierarchy. The fair value of other long-term debt and capital lease obligations classified as Level 2 was determined based on market prices not quoted on active markets and other observable market data. The carrying amount and estimated fair value of long-term debt and capital lease obligations as of September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Senior notes $ 352,682 $ 366,420 $ 352,224 $ 374,624 Other long-term debt and capital lease obligations 56,835 56,835 48,793 48,793 Total long-term debt and capital lease obligations $ 409,517 $ 423,255 $ 401,017 $ 423,417 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 9 Months Ended |
Sep. 30, 2018 | |
Long-Term Debt and Capital Lease Obligations | |
Long–Term Debt and Capital Lease Obligations | (11) Long-Term Debt and Capital Lease Obligations Long-term debt and capital lease obligations at carrying value are composed of the following: September 30, December 31, 2018 2017 Senior notes, net of unamortized discount, premium and debt issuance of $2.3 million as of September 30, 2018 and $2.8 million as of December 31, 2017 $ 352,682 $ 352,224 Senior secured credit facilities, Tranche A-1 Advances, net of unamortized discount and debt issuance costs of $0.7 million as of September 30, 2018 and $1.0 million as of December 31, 2017 36,365 39,263 Senior secured credit facilities, Tranche A-3 Advances, net of unamortized discount and debt issuance costs of $0.1 million as of September 30, 2018 and December 31, 2017 4,081 4,372 Senior secured credit facilities, revolving credit commitments 11,500 — Other loans 2,017 2,023 Capital leases 2,872 3,135 Total long-term debt and capital lease obligations 409,517 401,017 Less current portion of long-term debt and capital lease obligations (7,070) (6,186) Long-term debt and capital lease obligations, excluding current installments $ 402,447 $ 394,831 Senior Notes Due 2021 As of September 30, 2018 and December 31, 2017, we were in compliance with all covenants and restrictions associated with, and no events of default existed under, our 8.5% senior unsecured notes due 2021. Our obligations under the senior notes are guaranteed by certain of our subsidiaries and secured by liens on substantially all of our assets. Senior Secured Credit Facilities We amended the credit agreement governing our senior secured credit facilities in September 2018 to increase the maximum allowable ratio of total debt to consolidated EBITDA (the “Total Leverage Ratio”) to 4.75:1.00 as of the end of each quarter prior to maturity. Prior to the amendment, the Total Leverage Ratio was at 4.00:1.00 and was scheduled to decrease to 3.75:1.00 beginning with the quarter ending December 31, 2018 through maturity. As of September 30, 2018 and December 31, 2017, we had $11.5 million and $0, respectively, in borrowing under the revolving credit commitments under our senior secured credit facilities. As of September 30, 2018, under the revolving credit commitments, we had no letters of credit outstanding and had a $4.0 million letter of credit outstanding as of December 31, 2017. In October 2018, we amended and restated the revolving credit commitments increasing the total revolving commitments from $100.0 million to $350.0 million. See Note 19, Subsequent Event . As of September 30, 2018 and December 31, 2017, we were in compliance with all covenants and restrictions associated with, and no events of default existed under, our senior secured credit facilities. Our obligations under the senior secured credit facilities are guaranteed by certain of our subsidiaries and secured by liens on substantially all of our assets. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related-Party Transactions | |
Related-Party Transactions | (12) Related-Party Transactions Related-party amounts included on the unaudited condensed consolidated statements of operations were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (Recast) 2018 2017 (Recast) Other revenue $ 1,042 $ 765 $ 3,346 $ 4,390 Cost of goods sold 20,133 17,044 56,184 47,222 General and administrative expenses 4,113 3,735 11,628 9,908 Management Services Agreement We are party to a Management Services Agreement (the “MSA”) with Enviva Management Company, LLC (the “Provider”), a wholly owned subsidiary of the sponsor. Under the MSA, the Provider provides us with operations, general administrative, management and other services (the “Services”). We are required to reimburse the Provider the amount of all direct or indirect internal or third-party expenses incurred by the Provider in connection with the provision of the Services. During the three and nine months ended September 30, 2018, $13.4 million and $35.9 million, respectively, related to the MSA was included in cost of goods sold, and $4.1 million and $11.6 million, respectively, was included in general and administrative expenses, on the unaudited condensed consolidated statements of operations. At September 30, 2018, $2.7 million incurred under the MSA was included in finished goods inventory. During the three and nine months ended September 30, 2017, $9.7 million and $32.9 million, respectively, related to the MSA was included in cost of goods sold, and $3.7 million and $9.9 million, respectively, was included in general and administrative expenses, on the unaudited condensed consolidated statements of operations. As of September 30, 2018 and December 31, 2017, the Partnership had $18.7 million and $19.6 million, respectively, included in related-party payables primarily related to the MSA. Common Control Transactions In October 2017, we purchased all of the issued and outstanding limited liability company interests in Wilmington for total consideration of $130.0 million (see Note 1, Description of Business and Basis of Presentation ). The purchase price for the Wilmington Drop-Down included $74.0 million of deferred consideration. Wilmington will enter into a long-term terminal services agreement (the “Wilmington Hamlet TSA”) with the First Hancock JV and Enviva Pellets Hamlet, LLC (“Hamlet”) to receive, store and load wood pellets from the First Hancock JV’s production plant in Hamlet, North Carolina (the “Hamlet plant”) when the First Hancock JV completes construction of the Hamlet plant. The Wilmington Hamlet TSA also provides for deficiency payments to Wilmington if minimum throughput requirements are not met. Following notice of the anticipated first delivery of wood pellets to the Wilmington terminal from the Hamlet plant, we will enter into the Wilmington Hamlet TSA and make the deferred consideration payment of $74.0 million in cash and/or common units to the First Hancock JV, subject to certain conditions. At September 30, 2018 and December 31, 2017, the $74.0 million was included in related-party long-term payable on the condensed consolidated balance sheets. Related-Party Indemnification We acquired Enviva Pellets Sampson, LLC (“Sampson”) in December 2016 (“Sampson Drop-Down”). Sampson owns a wood pellet production plant in Sampson County, North Carolina (the “Sampson plant”). In connection with the Sampson Drop-Down and the Wilmington Drop-Down, the First Hancock JV agreed to indemnify us, our affiliates, and our respective officers, directors, managers, counsel, agents and representatives from all costs and losses arising from certain vendor liabilities and claims related to the construction of the Sampson plant and the Wilmington terminal that were included in the net assets acquired. We recorded a related-party receivable from the First Hancock JV of $6.4 million for reimbursement of such indemnifiable amounts related to the Sampson Drop-Down. At September 30, 2018 and December 31, 2017, the related-party receivable associated with such amounts was $2.0 million and $3.0 million, respectively. We recorded a related-party receivable from the First Hancock JV of $1.8 million for reimbursement of such indemnifiable amounts related to the Wilmington Drop-Down. At September 30, 2018 and December 31, 2017, the related-party receivable associated with such amounts was $1.3 million. Sampson Construction Payments Pursuant to payment agreements between us and the First Hancock JV, the First Hancock JV agreed to pay an aggregate amount of $2.9 million to us in consideration for costs incurred by us to repair or replace certain equipment at the Sampson plant following the consummation of the Sampson Drop-Down. As of September 30, 2018, $2.9 million has been received and no further amounts are outstanding. Holdings TSA Pursuant to the Holdings TSA, the sponsor agreed to deliver a minimum of 125,000 MT of wood pellets per quarter for receipt, storage, handling and loading services by the Wilmington terminal and pay a fixed fee on a per-ton basis for such terminal services. The Holdings TSA remains in effect until September 1, 2026. During the three months and nine months ended September 30, 2018, we recorded $0 and $0.8 million, respectively, as terminal services revenue from the sponsor, which is included in other revenue. During the three and nine months ended September 30, 2017, we recorded $0.6 million and $1.3 million, respectively, as terminal services revenue from the sponsor, which is included in other revenue. In February 2018, the sponsor amended and assigned the Holdings TSA to Greenwood. Deficiency payments are due to Wilmington if quarterly minimum throughput requirements are not met. During the three and nine months ended September 30, 2018, we recorded $0.5 million and $2.0 million, respectively, of deficiency fees from Greenwood, which is included in other revenue. In September 2018, Hurricane Florence impacted the rail line on which wood pellets are typically transported from the Greenwood plant to the Wilmington terminal. As a result, Greenwood was unable to satisfy certain commitments under the Holdings TSA and a contract to purchase wood pellets produced by the Greenwood plant (the “Greenwood contract”) and agreed to pay $1.8 million to us as deficiency fees in consideration of these commitments. Consideration of $0.5 million related to the Holdings TSA was included in other revenue and $1.3 million related to the Greenwood contract was included as a reduction of cost of goods sold. Enviva FiberCo, LLC We purchase raw materials from Enviva FiberCo, LLC, a wholly-owned subsidiary of our sponsor. Such raw material purchases during the three and nine months ended September 30, 2018 and 2017 were $1.8 million and $5.3 million and $2.2 million and $6.3 million, respectively. Biomass Purchase Agreement – Hancock JV In September 2016, Sampson entered into a confirmation under a master biomass purchase and sale agreement between Enviva, LP and the First Hancock JV pursuant to which Sampson agreed to sell to the sponsor 60,000 MT of wood pellets through August 31, 2017. In June 2017, the sponsor satisfied its take-or-pay obligation under the agreement with a $2.7 million payment to us, which is included in other revenue. Biomass Option Agreement – Enviva Holdings, LP In February 2017, Enviva, LP entered into an agreement and a confirmation thereunder with the sponsor (together, the “Option Contract”), pursuant to which Enviva, LP had the option to purchase certain volumes of wood pellets from the sponsor and the sponsor had a corresponding right to re-purchase volumes purchased by Enviva, LP. Enviva, LP purchased $0 and $1.7 million of wood pellets from the sponsor during the three and nine months ended September 30, 2018, respectively. During the three and nine months ended September 30, 2017, Enviva, LP purchased $5.2 million and $8.1 million, respectively, of wood pellets from the sponsor. The wood pellet purchase amounts are included in cost of goods sold in our unaudited condensed consolidated statements of operations. The Option Contract terminated in accordance with its terms in March 2018. EVA-MGT Contracts In January 2016, we entered into a contract (the “EVA‑MGT Contract”) with the First Hancock JV to supply 375,000 metric tons per year (“MTPY”) of wood pellets to MGT Teesside Limited’s Tees Renewable Energy Plant (the “Tees REP”), which is under development. As amended, the EVA‑MGT Contract commences in 2019, ramps to full supply in 2021 and continues through 2034. The EVA-MGT Contract is denominated in U.S. Dollars for commissioning volumes in 2019 and in GBP thereafter. We entered into a second supply agreement with the First Hancock JV in connection with the Sampson Drop-Down to supply an additional 95,000 MTPY of the contracted volume to the Tees REP. The contract, which is denominated in GBP, commences in 2020 and continues through 2034. Greenwood Contract In February 2018, we entered into a contract with Greenwood to purchase wood pellets produced by the Greenwood plant through March 2022 and have a take-or-pay obligation with respect to 550,000 MTPY of wood pellets (prorated for partial contract years) beginning in mid-2019. During the three and nine months ended September 30, 2018, we purchased $8.5 million and $16.8 million, respectively, of wood pellets from Greenwood, of which $6.2 million and $14.5 million, respectively, is included in cost of goods sold. As of September 30, 2018, $2.3 million is included in finished goods inventory and $10.8 million is included in related-party payables related to our wood pellet purchases from Greenwood. Long-Term Incentive Plan Vesting During the three and nine months ended September 30, 2018, we paid $2.7 million and $6.7 million, respectively, to the General Partner and the Provider in connection with the settlement of performance-based phantom unit awards under the Enviva Partners, LP Long-Term Incentive Plan (“LTIP”). |
Partners' Capital
Partners' Capital | 9 Months Ended |
Sep. 30, 2018 | |
Partners' Capital | |
Partners' Capital | (13) Partners’ Capital Common and Subordinated Units - Sponsor On May 9, 2018, the sponsor sold to third parties all of the 1,265,453 common units held by the sponsor on such date. On May 30, 2018, all of our 11,905,138 previously outstanding subordinated units, which were held by the sponsor, converted into common units on a one‑for‑one basis. As of September 30, 2018, 11,905,138 common units were held by the sponsor. Allocations of Net Income Net income and loss is allocated among the partners of the Partnership in accordance with their respective ownership interest percentages after giving effect, where applicable, to priority income allocations in an amount equal to incentive cash distributions, 100% of which are allocated to the General Partner. Incentive Distribution Rights Incentive distribution rights (“IDRs”) represent the right to receive increasing percentages (from 15.0% to 50.0%) of quarterly distributions from operating surplus after distributions in amounts exceeding specified target distribution levels have been achieved by the Partnership. The General Partner currently holds the IDRs, but may transfer these rights at any time. At-the-Market Offering Program Pursuant to an equity distribution agreement dated August 8, 2016, we may offer and sell common units from time to time through a group of managers, subject to the terms and conditions set forth in such agreement, of up to an aggregate sales amount of $100.0 million (the “ATM Program”). During the three months ended September 30, 2018 and 2017, we did not sell common units under the ATM Program. During the nine months ended September 30, 2018, we sold 8,408 common units under the ATM Program for net proceeds of $0.2 million, net of an insignificant amount of commissions. During the three and nine months ended September 30, 2017, we sold 63,577 common units under the ATM Program for net proceeds of $1.7 million, net of an insignificant amount of commissions. Net proceeds from sales under the ATM Program were used for general partnership purposes. Cash Distributions to Unitholders Distributions that have been paid or declared related to the reporting period are considered in the determination of earnings per unit. The following table details the cash distribution paid or declared (in millions, except per-unit amounts): Total Payment to General Partner for Incentive Declaration Record Payment Distribution Total Cash Distribution Quarter Ended Date Date Date Per Unit Distribution Rights March 31, 2017 May 3, 2017 May 18, 2017 May 30, 2017 $ 0.5550 $ 14.6 $ June 30, 2017 August 2, 2017 August 15, 2017 August 29, 2017 $ 0.5700 $ 15.0 $ September 30, 2017 November 2, 2017 November 15, 2017 November 29, 2017 $ 0.6150 $ 16.2 $ December 31, 2017 January 31, 2018 February 15, 2018 February 28, 2018 $ 0.6200 $ 16.3 $ March 31, 2018 May 3, 2018 May 15, 2018 May 29, 2018 $ 0.6250 $ 16.5 $ June 30, 2018 August 1, 2018 August 15, 2018 August 29, 2018 $ 0.6300 $ 16.7 $ September 30, 2018 October 31, 2018 November 15, 2018 November 29, 2018 $ 0.6350 $ 16.8 $ For purposes of calculating our earnings per unit under the two-class method, common units are treated as participating preferred units, and the subordinated units were treated as the residual equity interest, or common equity. IDRs 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. We determine the amount of cash available for distribution for each quarter in accordance with our partnership agreement. The amount to be distributed to common unitholders, subordinated unitholders and IDR holders is based on the distribution waterfall set forth in our partnership agreement. Net earnings for the quarter are allocated to each class of partnership interest based on the distributions to be made. On May 30, 2018, the subordination period ended in accordance with our partnership agreement and the subordinated units were converted into common units on a one-for-one basis (see Note 17, Net Income (Loss) per Limited Partner Unit ). Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) consists of two components: net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses and gains and losses that pursuant to GAAP are included in comprehensive income (loss) but excluded from net income (loss). Our other comprehensive income (loss) for three and nine months ended September 30, 2018 and 2017 primarily consists of unrealized gains and losses related to derivative instruments accounted for as cash flow hedges. The following table presents the changes in accumulated other comprehensive income for the nine months ended September 30, 2018: Balance at December 31, 2017 $ (3,040) Net unrealized gains on derivative instruments 5,750 Reclassification of net gains on derivative instruments realized into earnings (2,076) Currency translation adjustment 1 Accumulated other comprehensive income at September 30, 2018 $ 635 The following table presents the changes in accumulated other comprehensive loss for the nine months ended September 30, 2017: Balance at December 31, 2016 $ 595 Net unrealized losses on derivative instruments (4,641) Reclassification of net losses on derivative instruments realized into earnings 161 Accumulated other comprehensive loss at September 30, 2017 $ (3,885) Non-controlling Interests—First Hancock JV Wilmington was a wholly owned subsidiary of the First Hancock JV prior to the consummation of the Wilmington Drop-Down. Our financial statements have been recast to include the financial results of Wilmington as if the consummation of the Wilmington Drop-Down had occurred on May 15, 2013, the date Wilmington was originally organized. The indirect interests of the First Hancock JV’s third-party investors in Wilmington for periods prior to the Wilmington Drop-Down transaction have been reflected as a non-controlling interest in our financial statements. Our unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2017 include net losses of $0.7 million and $3.1 million, respectively, attributable to the non-controlling interests in Wilmington. |
Equity-Based Awards
Equity-Based Awards | 9 Months Ended |
Sep. 30, 2018 | |
Equity-Based Awards | |
Equity-Based Awards | (14) Equity-Based Awards Affiliate Grants The following table summarizes information regarding phantom unit awards under the LTIP to employees of the Provider (the “Affiliate Grants”): Time-Based Performance-Based Total Affiliate Grant Phantom Units Phantom Units Phantom Units Weighted- Weighted- Weighted- Average Average Average Grant Date Grant Date Grant Date Fair Value Fair Value Fair Value Units (per unit)(1) Units (per unit)(1) Units (per unit)(1) Nonvested December 31, 2017 595,866 $ 22.32 111,104 $ 25.52 706,970 $ 22.82 Granted 386,978 $ 29.12 159,353 $ 28.83 546,331 $ 29.04 Adjusted — $ — 19,832 $ 18.19 19,832 $ 18.19 Forfeitures (83,629) $ 25.48 (17,469) $ 25.76 (101,098) $ 25.53 Vested (181,536) $ 21.42 (45,059) $ 23.80 (226,595) $ 21.89 Nonvested September 30, 2018 717,679 $ 25.85 227,761 $ 27.52 945,440 $ 26.25 (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. At September 30, 2018, $0.2 million is included in related-party payables to the Provider to satisfy the withholding tax requirements associated with 11,037 time-based phantom awards that vested under the LTIP during the three months ended September 30, 2018. We paid $2.7 million to the Provider to satisfy the withholding tax requirements associated with 170,499 time-based phantom unit awards and 45,059 performance-based phantom unit awards that vested under the LTIP during the nine months ended September 30, 2018. On December 31, 2017, 139,810 performance-based phantom unit awards vested. In connection with the settlement of such awards on January 31, 2018, we paid $2.3 million to the General Partner, which then acquired 81,708 common units at a market price of $28.65 per unit from a wholly owned subsidiary of the sponsor to satisfy its obligations under the LTIP. We also paid $1.7 million to the Provider to satisfy the withholding tax requirements associated with such units. The Provider recognized an additional $0.1 million in expense for the change in fair value of these awards between the vesting and settlement date, which was allocated to us in the same manner as other corporate expenses. Director Grants The following table summarizes information regarding phantom unit awards under the LTIP to certain non-employee directors of the General Partner (the “Director Grants”): Time-Based Performance-Based Total Director Grant Phantom Units Phantom Units Phantom Units Weighted- Weighted- Weighted- Average Average Average Grant Date Grant Date Grant Date Fair Value Fair Value Fair Value Units (per unit)(1) Units (per unit)(1) Units (per unit)(1) Nonvested December 31, 2017 15,840 $ 25.25 — $ — 15,840 $ 25.25 Granted 13,964 $ 28.65 — $ — 13,964 $ 28.65 Vested (15,840) $ 25.25 — $ — (15,840) $ 25.25 Nonvested September 30, 2018 13,964 $ 28.65 — $ — 13,964 $ 28.65 (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. In February 2018, Director Grants valued at $0.4 million were granted and vest on the first anniversary of the grant date. In February 2018, the Director Grants that were nonvested at December 31, 2017 vested, and common units were issued in respect thereof. Distribution Equivalent Rights Unpaid distribution equivalent rights (“DERs”) amounts related to the performance-based Affiliate Grants at September 30, 2018 were $1.0 million, of which $0.4 million are included in related-party accrued liabilities and $0.6 million are included in other long-term liabilities on the condensed consolidated balance sheets. Unpaid DER amounts related to the performance-based Affiliate Grants at December 31, 2017 were $0.9 million, of which $0.7 million are included in accrued liabilities and $0.2 million are included in other long-term liabilities. DER distributions related to the time- and performance-based Affiliate Grants were $0.6 million and $1.8 million for the three and nine months ended September 30, 2018, respectively. Payments related to DERs for the three and none months ended September 31, 2017 were not significant. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Taxes | |
Income Taxes | (15) Income Taxes Our operations are organized as limited partnerships and entities that are disregarded entities for federal and state income tax purposes. As a result, we are not subject to U.S. federal and most state income taxes. The unitholders of the Partnership are liable for these income taxes on their share of our taxable income. Some states impose franchise and capital taxes on the Partnership. Such taxes are not material to the condensed consolidated financial statements and have been included in other income (expense) as incurred. As of September 30, 2018, the only periods subject to examination for federal and state income tax returns are 2015 through 2017. We believe our income tax filing positions, including our status as a pass-through entity, would be sustained on audit and do not anticipate any adjustments that would result in a material change to our unaudited condensed consolidated balance sheet. Therefore, no reserves for uncertain tax positions or interest and penalties have been recorded. For the three and nine months ended September 30, 2018 and 2017, no provision for federal or state income taxes has been recorded in the condensed consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | (16) Commitments and Contingencies During the fourth quarter of 2016, we re-purchased a shipment of wood pellets from one customer and subsequently sold it to another customer in a purchase and sale transaction. Smoldering was observed onboard the vessel carrying the shipment, which resulted in damage to a portion of the shipment and one of the vessel’s five cargo holds (the “Shipping Event”). The disponent owner of the vessel (the “Shipowner”) had directly or indirectly chartered the vessel from certain other parties (collectively, the “Head Owners”) and in turn contracted with our wholly owned subsidiary, Enviva Pellets Cottondale, LLC (“Cottondale”), as the charterer of the vessel. Following the mutual appointment of arbitrators in connection with the Shipping Event, in June 2017, the Shipowner submitted claims against Cottondale (the “Claims”) alleging damages of approximately $11.8 million (calculated using exchange rates as of September 30, 2018), together with other unquantified losses and damages. The Claims provide that the Shipowner would seek indemnification and other damages from Cottondale to the extent that the Shipowner is unsuccessful in its defense of claims raised by the Head Owners against it for damages arising in connection with the Shipping Event. Although it is reasonably possible that the Shipping Event may result in additional costs for our account, responsibility for such costs and liabilities incurred in connection with the Shipping Event is disputed among the various parties involved. If any such costs and liabilities ultimately are allocated to us, a portion may be recovered under insurance. We believe that we have meritorious defenses to the Claims, but are generally unable to predict the timing or outcome of any claims or proceedings, including the Claims, associated with the Shipping Event, or any insurance recoveries in respect thereof. Consequently, we are unable to provide an estimate of the amount or range of possible loss. |
Net Income (Loss) per Limited P
Net Income (Loss) per Limited Partner Unit | 9 Months Ended |
Sep. 30, 2018 | |
Net Income (Loss) per Limited Partner Unit | |
Net Income (Loss) per Limited Partner Unit | (17) Net Income (Loss) 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), after deducting any incentive distributions, by the weighted-average number of outstanding common and subordinated units. Our net income (loss) is allocated to the limited partners in accordance with their respective ownership percentages, after giving effect to priority income allocations for incentive distributions, if any, to the holder of the IDRs, which 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 our 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 unit. On May 30, 2018, the requirements under our partnership agreement for the conversion of all of our subordinated units into common units were satisfied and the subordination period for such subordinated units ended. As a result, all of our 11,905,138 outstanding subordinated units converted into common units on a one-for-one basis. The conversion did not impact the amount of the cash distribution paid or the total number of our outstanding units representing limited partner interests. Our net income (loss) was allocated to the general partner and the limited partners, including the holders of the subordinated units and IDR holders in accordance with our partnership agreement. In addition to the common and subordinated units, we have also identified the IDRs and phantom units as participating securities and use 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 and subordinated 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. Basic and diluted earnings per unit applicable to subordinated limited partners are the same because there are no potentially dilutive subordinated units outstanding. The following computation of net income (loss) per limited partner unit is as follows for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 Common Subordinated General Units Units Partner Weighted-average common units outstanding—basic 26,477 — — Effect of nonvested phantom units 1,001 — — Weighted-average common units outstanding—diluted 27,478 — — Three Months Ended September 30, 2018 Common Subordinated General Units Units Partner Total Distributions declared $ 16,814 $ — $ 1,532 $ 18,346 Earnings less than distributions (4,990) — — (4,990) Net income attributable to partners $ 11,824 $ — $ 1,532 $ 13,356 Weighted-average units outstanding—basic 26,477 — Weighted-average units outstanding—diluted 27,478 — Net income per limited partner unit—basic $ 0.45 $ — Net income per limited partner unit—diluted $ 0.43 $ — Nine Months Ended September 30, 2018 Common Subordinated General Units Units Partner Weighted-average common units outstanding—basic 19,866 6,541 — Effect of nonvested phantom units — — — Weighted-average common units outstanding—diluted 19,866 6,541 — Nine Months Ended September 30, 2018 Common Subordinated General Units Units Partner Total Distributions declared $ 37,618 $ 12,386 $ 4,197 $ 54,201 Earnings less than distributions (42,607) (14,029) — (56,636) Net (loss) income attributable to partners $ (4,989) $ (1,643) $ 4,197 $ (2,435) Weighted-average units outstanding—basic and diluted 19,866 6,541 Net loss per limited partner unit—basic and diluted $ (0.25) $ (0.25) Three Months Ended September 30, 2017 Common Subordinated General Units Units Partner Weighted-average common units outstanding—basic 14,412 11,905 — Effect of nonvested phantom units 973 — — Weighted-average common units outstanding—diluted 15,385 11,905 — Three Months Ended September 30, 2017 Common Subordinated General Units Units Partner Total Distributions declared $ 8,863 $ 7,322 $ 1,063 $ 17,248 Earnings less than distributions (5,974) (4,935) — (10,909) Net income attributable to partners $ 2,889 $ 2,387 $ 1,063 $ 6,339 Weighted-average units outstanding—basic 14,412 11,905 Weighted-average units outstanding—diluted 15,385 11,905 Net income per limited partner unit—basic $ 0.20 $ 0.20 Net income per limited partner unit—diluted $ 0.19 $ 0.20 Nine Months Ended September 30, 2017 Common Subordinated General Units Units Partner Weighted-average common units outstanding—basic 14,400 11,905 — Effect of nonvested phantom units 943 — — Weighted-average common units outstanding—diluted 15,343 11,905 — Nine Months Ended September 30, 2017 Common Subordinated General Units Units Partner Total Distributions declared $ 25,077 $ 20,715 $ 2,269 $ 48,061 Earnings less than distributions (19,345) (15,980) — (35,325) Net income attributable to partners $ 5,732 $ 4,735 $ 2,269 $ 12,736 Weighted-average units outstanding—basic 14,400 11,905 Weighted-average units outstanding—diluted 15,343 11,905 Net income per limited partner unit—basic $ 0.40 $ 0.40 Net income per limited partner unit—diluted $ 0.37 $ 0.40 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Guarantor Information | |
Supplemental Guarantor Information | (18) Supplemental Guarantor Information Enviva Partners, LP and Enviva Partners Finance Corp., are the co-issuers of our senior notes on a joint and several basis. Enviva Partners, LP has no material independent assets or operations. Our senior notes are guaranteed on a senior unsecured basis by certain of our direct and indirect wholly owned subsidiaries (excluding Enviva Partners Finance Corp. and certain immaterial subsidiaries, collectively, the “Non-Guarantor Subsidiaries”) and will be guaranteed by our future restricted subsidiaries that guarantee certain of our other indebtedness (collectively, the “Subsidiary Guarantors”). The guarantees are full and unconditional and joint and several. Each of the Subsidiary Guarantors is directly or indirectly 100% owned by the Partnership. Enviva Partners Finance Corp. is a finance subsidiary formed for the purpose of being the co-issuer of our senior notes. Other than certain restrictions arising under our senior secured credit facilities and our senior notes (see Note 11 , Long-Term Debt and Capital Lease Obligations ), there are no significant restrictions on the ability of any restricted subsidiary to (1) pay dividends or make any other distributions to the Partnership or any of its restricted subsidiaries or (2) make loans or Borrowings to the Partnership or any of its restricted subsidiaries. As of September 30, 2018, our non-guarantor subsidiaries net loss was more than 3% of our consolidated net loss for the nine months ended September 30, 2018. As such, and in accordance with Rule 3-10 of Regulation S-X, supplemental consolidating financial statements have been prepared from our financial information on the same basis of accounting as our consolidated financial statements. In periods prior to September 30, 2018, condensed consolidating financial information required under Rule 3-10 was not provided as our non-guarantor subsidiaries were considered minor or were not required to be presented. Condensed Consolidated Balance Sheet September 30, 2018 Guarantor Non-Guarantor Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 786 $ 77 $ — $ 863 Accounts receivable, net 49,152 — — 49,152 Related-party receivables 10,355 4,611 (9,431) 5,535 Inventories 34,322 — — 34,322 Prepaid expenses and other current assets 1,643 — — 1,643 Total current assets 96,258 4,688 (9,431) 91,515 Property, plant and equipment, net 552,456 — — 552,456 Intangible assets, net — — — — Goodwill 85,615 — — 85,615 Other long-term assets 4,783 — — 4,783 Total assets $ 739,112 $ 4,688 $ (9,431) $ 734,369 Liabilities and Partners’ Capital Current liabilities: Accounts payable $ 10,730 $ — $ — $ 10,730 Related-party payables and accrued liabilities 34,900 4,820 (9,431) 30,289 Accrued and other current liabilities 35,849 — — 35,849 Current portion of interest payable 12,573 — — 12,573 Current portion of long-term debt and capital lease obligations 7,070 — — 7,070 Total current liabilities 101,122 4,820 (9,431) 96,511 Long-term debt and capital lease obligations 402,447 — — 402,447 Related-party long-term payable 74,000 — — 74,000 Long-term interest payable 980 — — 980 Other long-term liabilities 4,687 — — 4,687 Total liabilities 583,236 4,820 (9,431) 578,625 Total Enviva Partners, LP partners’ capital 155,876 (132) — 155,744 Total liabilities and partners’ capital $ 739,112 $ 4,688 $ (9,431) $ 734,369 Condensed Consolidated Balance Sheet December 31, 2017 Guarantor Non-Guarantor Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 524 $ — $ — $ 524 Accounts receivable, net 79,185 — — 79,185 Related-party receivables 5,412 — — 5,412 Inventories 23,536 — — 23,536 Prepaid expenses and other current assets 1,006 — — 1,006 Total current assets 109,663 — — 109,663 Property, plant and equipment, net 562,330 — — 562,330 Intangible assets, net 109 — — 109 Goodwill 85,615 — — 85,615 Other long-term assets 2,394 — — 2,394 Total assets $ 760,111 $ — $ — $ 760,111 Liabilities and Partners’ Capital Current liabilities: Accounts payable $ 7,554 $ — $ — $ 7,554 Related-party payables and accrued liabilities 26,398 — — 26,398 Accrued and other current liabilities 29,363 — — 29,363 Current portion of interest payable 5,029 — — 5,029 Current portion of long-term debt and capital lease obligations 6,186 — — 6,186 Total current liabilities 74,530 — — 74,530 Long-term debt and capital lease obligations 394,831 — — 394,831 Related-party long-term payable 74,000 — — 74,000 Long-term interest payable 890 — — 890 Other long-term liabilities 5,491 — — 5,491 Total liabilities 549,742 — — 549,742 Total Enviva Partners, LP partners’ capital 210,369 — — 210,369 Total liabilities and partners’ capital $ 760,111 $ — $ — $ 760,111 Condensed Consolidated Statement of Operations For the Three Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Product sales $ 142,541 $ — $ — $ 142,541 Other revenue 1,607 — — 1,607 Net revenue 144,148 — — 144,148 Cost of goods sold 103,695 — — 103,695 Loss on disposal of assets 656 — — 656 Depreciation and amortization 9,678 — — 9,678 Total cost of goods sold 114,029 — — 114,029 Gross margin 30,119 — — 30,119 General and administrative expenses 7,287 28 — 7,315 Income (loss) from operations 22,832 (28) — 22,804 Other (expense) income: Interest expense (9,445) — — (9,445) Other (expense) income: (12) 9 — (3) Total other (expense) income, net (9,457) 9 — (9,448) Net income (loss) 13,375 (19) — 13,356 Less net loss attributable to noncontrolling partners’ interests — — — — Net income (loss) attributable to Enviva Partners, LP $ 13,375 $ (19) $ — $ 13,356 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — — — Enviva Partners, LP limited partners’ interest in net income (loss) $ 13,375 $ (19) $ — $ 13,356 Condensed Consolidated Statement of Operations For the Three Months Ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Product sales $ 125,422 $ — $ — $ 125,422 Other revenue 6,801 — — 6,801 Net revenue 132,223 — — 132,223 Cost of goods sold 101,102 (205) — 100,897 Loss on disposal of assets 1,237 — — 1,237 Depreciation and amortization 9,707 — — 9,707 Total cost of goods sold 112,046 (205) — 111,841 Gross margin 20,177 205 — 20,382 General and administrative expenses 7,493 211 — 7,704 Income (loss) from operations 12,684 (6) — 12,678 Other expense: Interest expense (7,653) — — (7,653) Other expense (2) — — (2) Total other expense, net (7,655) — — (7,655) Net income (loss) 5,029 (6) — 5,023 Less net loss attributable to noncontrolling partners’ interests 660 5 — 665 Net income (loss) attributable to Enviva Partners, LP $ 5,689 $ (1) $ — $ 5,688 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner (651) — — (651) Enviva Partners, LP limited partners’ interest in net income (loss) $ 6,340 $ (1) $ — $ 6,339 Condensed Consolidated Statement of Operations For the Nine Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Product sales $ 398,031 $ — $ — $ 398,031 Other revenue 7,037 — — 7,037 Net revenue 405,068 — — 405,068 Cost of goods sold 330,456 — — 330,456 Loss on disposal of assets 900 — — 900 Depreciation and amortization 28,800 — — 28,800 Total cost of goods sold 360,156 — — 360,156 Gross margin 44,912 — — 44,912 General and administrative expenses 21,358 48 — 21,406 Income (loss) from operations 23,554 (48) — 23,506 Other income (expense): Interest expense (27,137) — — (27,137) Other income (expense) 1,281 (85) — 1,196 Total other expense, net (25,856) (85) — (25,941) Net loss (2,302) (133) — (2,435) Less net loss attributable to noncontrolling partners’ interests — — — — Net loss attributable to Enviva Partners, LP $ (2,302) $ (133) $ — $ (2,435) Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — — — Enviva Partners, LP limited partners’ interest in net loss $ (2,302) $ (133) $ — $ (2,435) Condensed Consolidated Statement of Operations For the Nine Months Ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Product sales $ 363,689 $ 2,453 $ — $ 366,142 Other revenue 16,071 — — 16,071 Net revenue 379,760 2,453 — 382,213 Cost of goods sold 294,542 2,244 — 296,786 Loss on disposal of assets 3,242 — — 3,242 Depreciation and amortization 29,104 — — 29,104 Total cost of goods sold 326,888 2,244 — 329,132 Gross margin 52,872 209 — 53,081 General and administrative expenses 21,666 1,671 — 23,337 Income (loss) from operations 31,206 (1,462) — 29,744 Other expense: Interest expense (23,070) — — (23,070) Other expense (199) — — (199) Total other expense, net (23,269) — — (23,269) Net income (loss) 7,937 (1,462) — 6,475 Less net loss attributable to noncontrolling partners’ interests 3,139 41 — 3,180 Net income (loss) attributable to Enviva Partners, LP $ 11,076 $ (1,421) $ — $ 9,655 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner (3,081) — — (3,081) Enviva Partners, LP limited partners’ interest in net income (loss) $ 14,157 $ (1,421) $ — $ 12,736 Condensed Consolidated Statement of Comprehensive Income For the Three Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 13,375 $ (19) $ — $ 13,356 Other comprehensive income (loss): Net unrealized gains on cash flow hedges 2,713 — — 2,713 Reclassification of net gains realized into net income (loss) (2,013) — — (2,013) Currency translation adjustment — 1 — 1 Total other comprehensive income 700 1 — 701 Total comprehensive income (loss) 14,075 (18) — 14,057 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — — — Total comprehensive income (loss) subsequent to Enviva Port of Wilmington, LLC Drop-Down 14,075 (18) — 14,057 Less: Comprehensive loss attributable to noncontrolling partners’ interests — — — — Comprehensive income (loss) attributable to Enviva Partners, LP partners $ 14,075 $ (18) $ — $ 14,057 Condensed Consolidated Statement of Comprehensive Income For the Three Months Ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 5,029 $ (6) $ — $ 5,023 Other comprehensive income (loss): Net unrealized losses on cash flow hedges (1,788) — — (1,788) Reclassification of net gains realized into net income 55 — — 55 Total other comprehensive loss (1,733) — — (1,733) Total comprehensive income (loss) 3,296 (6) — 3,290 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner (651) — — (651) Total comprehensive income (loss) subsequent to Enviva Port of Wilmington, LLC Drop-Down 3,947 (6) — 3,941 Less: Comprehensive loss attributable to noncontrolling partners’ interests (660) (5) — (665) Comprehensive income (loss) attributable to Enviva Partners, LP partners $ 4,607 $ (1) $ — $ 4,606 Condensed Consolidated Statement of Comprehensive Income For the Nine Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net loss $ (2,302) $ (133) $ — $ (2,435) Other comprehensive income (loss): Net unrealized gains on cash flow hedges 5,750 — — 5,750 Reclassification of net gains realized into net income (2,076) — — (2,076) Currency translation adjustment — 1 — 1 Total other comprehensive income 3,674 1 — 3,675 Total comprehensive income (loss) 1,372 (132) — 1,240 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — — — Total comprehensive income (loss) subsequent to Enviva Port of Wilmington, LLC Drop-Down 1,372 (132) — 1,240 Less: Comprehensive loss attributable to noncontrolling partners’ interests — — — — Comprehensive income (loss) attributable to Enviva Partners, LP partners $ 1,372 $ (132) $ — $ 1,240 Condensed Consolidated Statement of Comprehensive Income For the Nine Months Ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 7,937 $ (1,462) $ — $ 6,475 Other comprehensive income (loss): Net unrealized losses on cash flow hedges (4,641) — — (4,641) Reclassification of net gains realized into net income 161 — — 161 Total other comprehensive loss (4,480) — — (4,480) Total comprehensive income (loss) 3,457 (1,462) — 1,995 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner (3,081) — — (3,081) Total comprehensive income (loss) subsequent to Enviva Port of Wilmington, LLC Drop-Down 6,538 (1,462) — 5,076 Less: Comprehensive loss attributable to noncontrolling partners’ interests (3,139) (41) — (3,180) Comprehensive income (loss) attributable to Enviva Partners, LP partners $ 9,677 $ (1,421) $ — $ 8,256 Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net loss $ (2,302) $ (133) $ — $ (2,435) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 29,240 — — 29,240 Amortization of debt issuance costs, debt premium and original issue discounts 828 — — 828 Loss on disposal of assets 900 — — 900 Unit-based compensation 5,604 — — 5,604 De-designation of foreign currency forwards and options — — De-designation of foreign currency forwards and options (1,947) — — (1,947) Fair value changes in derivatives (4,465) — — (4,465) Unrealized loss on foreign currency transactions 31 1 — 32 Change in operating assets and liabilities: Accounts receivable, net 30,004 — — 30,004 Related-party receivables (4,943) (4,611) 9,431 (123) Prepaid expenses and other assets (160) — — (160) Inventories (9,735) — — (9,735) Derivatives 5,080 — — 5,080 Accounts payable, accrued liabilities and other current liabilities 5,475 — — 5,475 Related-party payables and accrued liabilities 7,928 4,820 (9,431) 3,317 Accrued interest 7,634 — — 7,634 Other current liabilities 234 — — 234 Other long-term liabilities 648 — — 648 Net cash provided by operating activities 70,054 77 — 70,131 Cash flows from investing activities: Purchases of property, plant and equipment (16,034) — — (16,034) Insurance proceeds from property loss 1,130 — — 1,130 Net cash used in investing activities (14,904) — — (14,904) Cash flows from financing activities: Principal payments on debt and capital lease obligations (4,745) — — (4,745) Proceeds from common unit issuance under the At-the-Market Offering Program, net 241 — — 241 Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder (55,163) — — (55,163) Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting (2,341) — — (2,341) Payment for withholding tax associated with Long-Term Incentive Plan vesting (4,380) — — (4,380) Proceeds and payments on revolving credit commitments 11,500 — — 11,500 Net cash used in financing activities (54,888) — — (54,888) Net increase in cash, cash equivalents and restricted cash 262 77 — 339 Cash, cash equivalents and restricted cash, beginning of period 524 — — 524 Cash, cash equivalents and restricted cash, end of period $ 786 $ 77 $ — $ 863 Condensed Consolidated Statement of Cash Flows For the nine months ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ 7,937 $ (1,462) $ — $ 6,475 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 28,927 188 — 29,115 Amortization of debt issuance costs, debt premium and original issue discounts 1,161 — — 1,161 General and administrative expense incurred by the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down 1,338 — — 1,338 Loss on disposal of assets 3,242 — — 3,242 Unit-based compensation 5,113 — — 5,113 Fair value changes in derivatives (13) — — (13) Change in operating assets and liabilities: Accounts receivable, net 28,026 — — 28,026 Related-party receivables (3,312) — — (3,312) Prepaid expenses and other assets 76 — — 76 Assets held for sale — (310) — (310) Inventories (6,245) 1,812 — (4,433) Other long-term assets 86 — — 86 Derivatives (1,442) — — (1,442) Accounts payable, accrued liabilities and other current liabilities (6,845) — — (6,845) Related-party payables and accrued liabilities 9,147 (315) — 8,832 Accrued interest 6,301 — — 6,301 Other long-term liabilities 621 — — 621 Net cash provided by operating activities 74,118 (87) — 74,031 Cash flows from investing activities: — Purchases of property, plant and equipment (21,916) — — (21,916) Net cash used in investing activities (21,916) — — (21,916) Cash flows from financing activities: Principal payments on debt and capital lease obligations (3,428) — — (3,428) Cash paid related to debt issuance costs (209) — — (209) Proceeds from common unit issuance under the At-the-Market Offering Program, net 1,715 — — 1,715 Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder (46,323) — — (46,323) Proceeds and payments on revolving credit commitments (6,500) — — (6,500) Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down 1,652 — — 1,652 Proceeds from contributions from the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down 9,965 — — 9,965 Net cash used in financing activities (43,128) — — (43,128) Net increase in cash, cash equivalents and restricted cash 9,074 (87) — 8,987 Cash, cash equivalents and restricted cash, beginning of period 362 104 — 466 Cash, cash equivalents and restricted cash, end of period $ 9,436 $ 17 $ — $ 9,453 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events | |
Subsequent Event | (19) Subsequent Event In October 2018, we amended and restated the revolving credit commitments under the senior secured credit facilities, increasing the revolving commitments from $100.0 million to $350.0 million and extending the maturity from April 2020 to October 2023. We used $41.2 million of the revolving credit commitments to fully repay the outstanding amounts on the Tranche A-1 and A-3 borrowings under the senior secured credit facilities. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Significant Accounting Policies | |
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 our unaudited financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition We primarily earn revenue by supplying wood pellets to customers under off-take contracts, the majority of the commitments under which are long-term in nature. We refer to the structure of our off-take contracts as “take-or-pay” because they include a firm obligation of the customer to take a fixed quantity of product at a stated price and provisions that ensure we will be compensated in the case of a customer’s failure to accept all or a part of the contracted volumes or termination of a contract. Our long-term off-take contracts define the annual volume of wood pellets that a customer is required to purchase and we are required to sell, the fixed price per metric ton (“MT”) for product satisfying a base net calorific value and other technical specifications. The prices are fixed for the entire term, and are subject to adjustments which may include annual inflation-based adjustments or price escalators, price adjustments for product specifications, as well as, in some instances, price adjustments due to changes in underlying indices. In addition to sales of our product under these long-term off-take contracts, we routinely sell wood pellets under shorter-term contracts, which range in volume and tenor and, in some cases, may include only one specific shipment. Because each of our off-take contracts is a bilaterally negotiated agreement, our revenue over the duration of such contracts does not generally follow observable current market pricing trends. Our performance obligations under these contracts, which we aggregate into metric tons, include the delivery of wood pellets. We account for each MT as a single performance obligation. Our revenue from the sales of wood pellets we produce is recognized as product sales upon satisfaction of our performance obligation when control transfers to the customer at the time of loading wood pellets onto a ship. Depending on the specific off‑take contract, shipping terms are either Cost, Insurance and Freight (“CIF”), Cost and Freight (“CFR”) or Free on Board (“FOB”). Under a CIF contract, we procure and pay for shipping costs, which include insurance and all other charges, up to the port of destination for the customer. Under a CFR contract, we procure and pay for shipping costs, which include insurance (excluding marine cargo insurance) and all other charges, up to the port of destination for the customer. Shipping under CIF and CFR contracts after control has passed to the customer is considered a fulfillment activity rather than a performance obligation and associated expenses are included in the price to the customer. Under FOB contracts, the customer is directly responsible for shipping costs. In some cases, we may purchase shipments of product from third-party suppliers and resell them in back-to-back transactions (“purchase and sale transactions”). We determined that we are the principal in such transactions because we control the pellets prior to transferring them to the customer and therefore we recognize the related revenue on a gross basis in product sales. In instances in which a customer requests the cancellation, deferral or acceleration of a shipment, the customer may pay a fee, which is included in other revenue. We recognize third- and related-party terminal services revenue ratably over the related contract term, which is included in other revenue. Terminal services are performance obligations that are satisfied over time, as customers simultaneously receive and consume the benefits of the terminal services we perform. The consideration is generally fixed for minimum quantities and any above the minimum are generally billed based on a per-ton rate. Variable consideration from off-take contracts arises from several pricing features outlined in our off-take contracts, pursuant to which such contract pricing may be adjusted in respect of particular shipments to reflect differences between certain contractual quality specifications of the wood pellets as measured both when the wood pellets are loaded onto ships and unloaded at the discharge port as well as certain other contractual adjustments. Variable consideration from terminal services contracts arises from price increases based on agreed inflation indices and from above-minimum throughput quantities or services. We allocate variable consideration under our off-take and terminal services contracts entirely to each performance obligation to which variable consideration relates. The estimate of variable consideration represents the amount that is probable of not being reversed. Under our off-take contracts, customers are obligated to pay the majority of the purchase price prior to the arrival of the ship at the customers’ discharge port. The remaining portion is paid after the wood pellets are unloaded at the discharge port. We generally recognize revenue prior to the issuance of an invoice to the customer. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold includes the cost to produce and deliver wood pellets to customers, reimbursable shipping-related costs associated with specific off-take contracts with CIF and CFR shipping terms and costs associated with purchase and sale transactions. Raw material, production and distribution costs associated with delivering wood pellets to marine terminals and third‑ and related-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 our production plants. These costs are reflected in cost of goods sold when inventory is sold. Distribution costs associated with shipping wood pellets to customers and amortization of favorable acquired customer contracts are expensed as incurred. Inventory is recorded using the first-in, first-out method (“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. |
Recent and Pending Accounting Standards | Recently Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which subsequently was issued as ASC 606. ASC 606 requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We recognize revenue under ASC 606 and related amendments, which we adopted as of January 1, 2018, using the modified retrospective transition method. We determined that, upon adoption of ASC 606, our off-take contracts will continue to be classified as product sales. Revenue is recognized at the point in time at which control of the wood pellets passes to the customer as the wood pellets are loaded onto shipping vessels, which is consistent with the timing of revenue recognition under our legacy accounting policy. However, the adoption of ASC 606 impacted the basis of presentation for purchase and sale transactions. Prior to the adoption of ASC 606, we reported revenue from purchase and sale transactions net of costs paid to third-party suppliers, which was classified as other revenue. Subsequent to the adoption of ASC 606, we recognize revenue on a gross basis in products sales when we determine that we act as a principal and control the wood pellets before they are transferred to the customer. The decision as to whether to recognize revenue on a gross or net basis requires significant judgment. Recoveries from customers for certain costs we incurred at the discharge port under our off-take contracts were reported in product sales prior to the adoption of ASC 606. Under ASC 606, these recoveries are not considered a part of the transaction price, and therefore are excluded from product sales and included as an offset to cost of goods sold. We disaggregate our revenue into two categories: product sales and other revenue. These categories best reflect the nature, amount, timing and uncertainty of our revenue and cash flows. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, whereas prior comparative reporting periods have not been adjusted and continue to be reported under the accounting standards in effect for such periods. We did not have a transition adjustment as a result of adopting ASC 606. The table below indicates the impact of the adoption of ASC 606 on revenue and cost of goods sold: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Adoption of ASC 606 Without Adoption of ASC 606 As Reported Adoption of ASC 606 Without Adoption of ASC 606 Product sales $ 142,541 $ (571) $ 141,970 $ 398,031 $ (6,178) $ 391,853 Other revenue 1,607 351 1,958 7,037 337 7,374 Cost of goods sold 114,029 (220) 113,809 360,156 (5,841) 354,315 Gross margin $ 30,119 $ — $ 30,119 $ 44,912 $ — $ 44,912 In January 2017, the FASB issued ASU 2017‑01, Business Combinations (Topic 805): Clarifying the Definition of a Business , to provide guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the assets acquired (or disposed of) are not considered a business. We adopted ASU 2017-01 as of January 1, 2018 and will apply the ASU prospectively. In November 2016, the FASB issued ASU 2016‑18, Statement of Cash Flows (Topic 230)—Restricted Cash: A Consensus of the FASB Emerging Issues Task Force , which requires changes in restricted cash that result from transfers between cash, cash equivalents and restricted cash to not be presented as cash flow activities in the statements of cash flows. We adopted ASU 2016-18 as of January 1, 2018. As of September 30, 2018 and 2017, we had no amounts held as restricted cash. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows (Topic 230)—Classification of Certain Cash Receipts and Cash Payments , which reduces diversity in practice of how certain cash receipts and cash payments are classified in the statement of cash flows. The ASU includes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. We adopted ASU 2016-15 as of January 1, 2018, which had no material effect on how we present and classify cash receipts and cash payments in the condensed consolidated statements of cash flows. Recently Issued Accounting Standards not yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)-Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates, modifies and adds disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted, and is to be applied on a modified retrospective basis. We do not anticipate the adoption of ASU 2018-13 will have a material impact on our presentation of disclosures included in our consolidated statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815)-Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. ASU 2017-12 requires a modified retrospective transition method which requires the recognition of the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are in the process of evaluating the impact of the adoption of ASU 2017-12 on our consolidated statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other . ASU 2017-04 simplifies the testing for goodwill impairment by eliminating Step 2 of the current goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and will recognize an impairment charge equal to the amount by which the carrying amount exceeds the reporting unit’s fair value. The new guidance should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. We will early adopt this ASU in connection with our December 2018 annual impairment test. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires an entity that leases assets to recognize on the balance sheet a right-of-use asset and a lease liability for the rights and obligations created by those leases with terms of greater than twelve months. Leases will be classified as either financing or operating, similar to current accounting requirements, with such classification determining the pattern of expense recognition in the statement of operations. ASU 2016-02, as amended by subsequent ASUs, replaces the current definition of a lease and requires that an arrangement be recognized as a lease when a customer has the right to obtain substantially all of the economic benefits from the use of an asset, as well as the right to direct the use of the asset. The guidance also requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, with early adoption permitted. We will adopt the ASU on January 1, 2019 using a modified retrospective approach as of the beginning of the period, which will require us to recognize and measure all leases within the scope of the ASU. We are continuing to evaluate the impact of the ASU and expect to recognize right-of-use assets and liabilities related to real estate, machinery, equipment and other operating leases, which could have a material impact on our consolidated balance sheet. We are assessing whether other business supply arrangements contain leases under the new standard. In addition to additional assets and liabilities, the interest component of financial leases may be accelerated. We do not expect a significant change in leasing activity prior to adoption of the ASU. The status of our implementation is as follows: · We have formed an implementation team that meets to discuss implementation challenges, technical interpretations and project status. · We continue to gather data and review contracts in order to finalize the inventory of leases. We have purchased system software and are in the process of system implementation. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Standards Update 2014-09 | |
Recently Adopted Accounting Standards | |
Schedule of impact of adoption of ASC 606 | Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Adoption of ASC 606 Without Adoption of ASC 606 As Reported Adoption of ASC 606 Without Adoption of ASC 606 Product sales $ 142,541 $ (571) $ 141,970 $ 398,031 $ (6,178) $ 391,853 Other revenue 1,607 351 1,958 7,037 337 7,374 Cost of goods sold 114,029 (220) 113,809 360,156 (5,841) 354,315 Gross margin $ 30,119 $ — $ 30,119 $ 44,912 $ — $ 44,912 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue | |
Schedule of remaining performance obligations | Period from October 1, 2018 to December 31, 2018 2019 Thereafter Total Product sales $ 165,859 $ 651,725 $ 6,505,876 $ 7,323,460 Other revenue 177 708 1,180 2,065 Total revenue $ 166,036 $ 652,433 $ 6,507,056 $ 7,325,525 |
Transactions Between Entities_2
Transactions Between Entities Under Common Control (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Transactions Between Entities Under Common Control | |
Schedule of changes to previously reported amounts of the Entity's condensed consolidated balance sheets | As of September 30, 2017 As Enviva Port of Reported Wilmington, LLC Total (Recast) Cash and cash equivalents $ 9,453 $ — $ 9,453 Accounts receivable, net 49,855 — 49,855 Related-party receivables 7,748 968 8,716 Inventories 34,477 96 34,573 Prepaid expenses and other current assets 4,540 42 4,582 Total current assets 106,073 1,106 107,179 Property, plant and equipment, net of accumulated depreciation 495,366 75,485 570,851 Goodwill 85,615 — 85,615 Other long-term assets 2,180 52 2,232 Total assets $ 689,234 $ 76,643 $ 765,877 Accounts payable $ 3,122 $ 188 $ 3,310 Related-party payables 19,948 (615) 19,333 Accrued and other current liabilities 46,715 2,834 49,549 Total current liabilities 69,785 2,407 72,192 Long-term debt and capital lease obligations 338,115 187 338,302 Other long-term liabilities 4,134 1,622 5,756 Total liabilities 412,034 4,216 416,250 Total partners’ capital 277,200 72,427 349,627 Total liabilities and partners’ capital $ 689,234 $ 76,643 $ 765,877 |
Schedule of changes to previously reported amounts of the Entity's condensed consolidated statements of income | Three Months Ended September 30, 2017 As Enviva Port of Total Reported Wilmington (Recast) Net revenue $ 131,458 $ 765 $ 132,223 Total cost of goods sold 110,340 1,501 111,841 Gross margin 21,118 (736) 20,382 Net income (loss) 6,334 (1,311) 5,023 Less net loss attributable to noncontrolling partners’ interests 5 660 665 Net income (loss) attributable to Enviva Partners, LP 6,339 (651) 5,688 Net loss attributable to general partner — (651) (651) Net income attributable to Enviva Partners, LP limited partners’ interest in net income 6,339 — 6,339 Nine Months Ended September 30, 2017 As Enviva Port of Total Reported Wilmington (Recast) Net revenue $ 380,529 $ 1,684 $ 382,213 Total cost of goods sold 322,748 6,384 329,132 Gross margin 57,781 (4,700) 53,081 Net income (loss) 12,695 (6,220) 6,475 Less net income attributable to noncontrolling partners’ interests 41 3,139 3,180 Net income (loss) attributable to Enviva Partners, LP 12,736 (3,081) 9,655 Net loss attributable to general partner — (3,081) (3,081) Net income attributable to Enviva Partners, LP limited partners’ interest in net income 12,736 — 12,736 |
Schedule of changes to previously reported amounts of the Entity's condensed consolidated cash flow statements | Nine Months Ended September 30, 2017 As Enviva Port of Total Reported Wilmington (Recast) Net cash provided by (used in) operating activities $ 76,327 $ (2,296) $ 74,031 Net cash used in investing activities (14,289) (7,627) (21,916) Net cash (used in) provided by financing activities (53,051) 9,923 (43,128) Net increase in cash, cash equivalents and restricted cash $ 8,987 $ — $ 8,987 |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties Including Business and Credit Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Significant Risks and Uncertainties Including Business and Credit Concentrations | |
Schedule of revenue from major customers | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 (Recast) 2018 2017 (Recast) Customer A 52 % 73 % 53 % 68 % Customer B 10 % 14 % 10 % 15 % Customer C 24 % 4 % 15 % 1 % Customer D 9 % 9 % 14 % 12 % |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventories | |
Schedule of inventories | September 30, December 31, 2018 2017 Raw materials and work-in-process $ 3,896 $ 4,516 Consumable tooling 16,304 14,447 Finished goods 14,122 4,573 Total inventories $ 34,322 $ 23,536 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | September 30, December 31, 2018 2017 Land $ 13,492 $ 13,492 Land improvements 44,675 42,962 Buildings 196,696 196,153 Machinery and equipment 419,181 413,349 Vehicles 635 635 Furniture and office equipment 6,083 5,970 Leasehold improvements 987 987 681,749 673,548 Less accumulated depreciation (145,297) (117,067) 536,452 556,481 Construction in progress 16,004 5,849 Total property, plant and equipment, net $ 552,456 $ 562,330 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments | |
Schedule of fair values of the derivative financial instruments included in the consolidated balance sheets | The fair values of cash flow hedging instruments as of September 30, 2018 were as follows: Asset Liability Balance Sheet Location Derivatives Derivatives Derivatives designated as hedging instruments: Forward contracts: Interest rate swap Other current assets $ 532 $ — Interest rate swap Other long-term assets 314 — Total derivatives designated as hedging instruments $ 846 $ — Derivatives not designated as hedging instruments: Forward contracts: Foreign currency exchange forward contracts Prepaid and other current assets $ 255 $ — Foreign currency exchange forward contracts Other long-term assets 1,030 Foreign currency exchange forward contracts Accrued and other current liabilities — 263 Foreign currency exchange forward contracts Other long-term liabilities — 902 Purchased options: Foreign currency purchased option contracts Other long-term assets 2,410 — Total derivatives not designated as hedging instruments $ 3,695 $ 1,165 Net gains included in product sales related to the change of fair market value of derivative instruments not designated as hedging instruments during the three and nine months ended September 30, 2018 were $0.4 million and $3.5 million, respectively. The fair values of cash flow hedging instruments as of December 31, 2017 were as follows: Asset Liability Balance Sheet Location Derivatives Derivatives Derivatives designated as hedging instruments: Forward contracts: Foreign currency exchange forward contracts Other long-term liabilities $ — $ 2,118 Purchased options: Foreign currency purchased option contracts Prepaid and other current assets 1,024 — Interest rate swap: Interest rate swap Prepaid and other current assets 220 — Interest rate swap Other long-term assets 407 — Total derivatives designated as hedging instruments $ 1,651 $ 2,118 Derivatives not designated as hedging instruments: Forward contracts: Foreign currency exchange forward contracts Prepaid and other current assets $ 124 $ — Foreign currency exchange forward contracts Accrued and other current liabilities — 806 Foreign currency exchange forward contracts Other long-term liabilities — 528 Purchased options: Foreign currency purchased option contracts Prepaid and other current assets 3 — Foreign currency purchased option contracts Other long-term assets 45 — Total derivatives not designated as hedging instruments $ 172 $ 1,334 |
Schedule of instruments designated as cash flow hedges and the related changes in other accumulated comprehensive income and the gains and losses in income | The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive loss and the gains and losses recognized in earnings for the three months ended September 30, 2018 were as follows: Amount of Location of Gain (Loss) Location of Gain Amount of Gain Amount of Gain Gain (Loss) Reclassified from (Loss) Recognized in (Loss) Recognized in (Loss) in Other Reclassified from Accumulated Other Earnings on Derivative Earnings on Derivative Comprehensive Accumulated Other Comprehensive (Ineffective Portion (Ineffective Portion (Loss) income on Comprehensive (Loss) Income and Amount and Amount Derivative (Loss) Income into Earnings Excluded from Excluded from (Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) Foreign currency exchange forward contracts $ 1,907 Product sales $ — Product sales $ 2,418 Foreign currency exchange purchased option contracts 765 Product sales — Product sales (470) Interest rate swap 41 Other income (expense) — Other income (expense) 67 The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive loss and the gains and losses recognized in earnings for the nine months ended September 30, 2018 were as follows: Amount of Location of Gain (Loss) Location of Gain Amount of Gain Amount of Gain Gain (Loss) Reclassified from (Loss) Recognized in (Loss) Recognized in (Loss) in Other Reclassified from Accumulated Other Earnings on Derivative Earnings on Derivative Comprehensive Accumulated Other Comprehensive (Ineffective Portion (Ineffective Portion (Loss) income on Comprehensive (Loss) Income and Amount and Amount Derivative (Loss) Income into Earnings Excluded from Excluded from (Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) Foreign currency exchange forward contracts $ 4,532 Product sales $ — Product sales $ 2,413 Foreign currency exchange purchased option contracts 749 Product sales — Product sales (470) Interest rate swap 469 Other income (expense) — Other income (expense) 131 The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive loss and the gains and losses recognized in earnings for the three months ended September 30, 2017 were as follows: Amount of Location of Gain (Loss) Location of Gain Location of Gain Amount of Gain Gain (Loss) Reclassified from (Loss) Recognized in (Loss) Recognized in (Loss) in Other Reclassified from Accumulated Other Income on Derivative Income on Derivative Comprehensive Accumulated Other Comprehensive (Ineffective Portion (Ineffective Portion Income on Comprehensive Income and Amount and Amount Derivative Income into Income Excluded from Excluded from (Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) Foreign currency exchange forward contracts $ (1,484) Product sales $ 26 Product sales $ (1) Foreign currency exchange forward contracts (22) Other revenue (30) Other revenue — Foreign currency exchange purchased option contracts (294) Product sales — Product sales — Interest rate swap 12 Other income (expense) (51) Other income (expense) 13 The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive loss and the gains and losses recognized in earnings for the nine months ended September 30, 2017 were as follows: Amount of Location of Gain (Loss) Location of Gain Location of Gain Amount of Gain Gain (Loss) Reclassified from (Loss) Recognized in (Loss) Recognized in (Loss) in Other Reclassified from Accumulated Other Earnings on Derivative Earnings on Derivative Comprehensive Accumulated Other Comprehensive (Ineffective Portion (Ineffective Portion Income on Comprehensive Income and Amount and Amount Derivative Income into Earnings Excluded from Excluded from (Effective Portion) (Effective Portion) (Effective Portion) Effectiveness Testing) Effectiveness Testing) Foreign currency exchange forward contracts $ (3,445) Product sales $ 26 Product sales $ (1) Foreign currency exchange forward contracts (11) Other revenue (11) Other revenue — Foreign currency exchange purchased option contracts (1,047) Product sales — Product sales — Interest rate swap (138) Other income (expense) (176) Other income (expense) 13 |
Schedule of notional amounts of outstanding derivative instruments designated as cash flow hedges associated with outstanding or unsettled derivative instruments | September 30, December 31, 2018 2017 Foreign exchange forward contracts in GBP £ 45,630 £ 46,465 Foreign exchange purchased option contracts in GBP £ 39,365 £ 34,050 Foreign exchange forward contracts in EUR € 14,300 € 5,350 Foreign exchange purchased option contracts in EUR € 1,675 € — Interest rate swap $ 41,198 $ 44,756 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Schedule of carrying amount and estimated fair value of long-term debt and capital lease obligations | September 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Senior notes $ 352,682 $ 366,420 $ 352,224 $ 374,624 Other long-term debt and capital lease obligations 56,835 56,835 48,793 48,793 Total long-term debt and capital lease obligations $ 409,517 $ 423,255 $ 401,017 $ 423,417 |
Long-Term Debt and Capital Le_2
Long-Term Debt and Capital Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Long-Term Debt and Capital Lease Obligations | |
Schedule of long-term debt and capital lease obligations | September 30, December 31, 2018 2017 Senior notes, net of unamortized discount, premium and debt issuance of $2.3 million as of September 30, 2018 and $2.8 million as of December 31, 2017 $ 352,682 $ 352,224 Senior secured credit facilities, Tranche A-1 Advances, net of unamortized discount and debt issuance costs of $0.7 million as of September 30, 2018 and $1.0 million as of December 31, 2017 36,365 39,263 Senior secured credit facilities, Tranche A-3 Advances, net of unamortized discount and debt issuance costs of $0.1 million as of September 30, 2018 and December 31, 2017 4,081 4,372 Senior secured credit facilities, revolving credit commitments 11,500 — Other loans 2,017 2,023 Capital leases 2,872 3,135 Total long-term debt and capital lease obligations 409,517 401,017 Less current portion of long-term debt and capital lease obligations (7,070) (6,186) Long-term debt and capital lease obligations, excluding current installments $ 402,447 $ 394,831 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related-Party Transactions | |
Schedule of related party amounts included on the consolidated statements of income | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (Recast) 2018 2017 (Recast) Other revenue $ 1,042 $ 765 $ 3,346 $ 4,390 Cost of goods sold 20,133 17,044 56,184 47,222 General and administrative expenses 4,113 3,735 11,628 9,908 |
Partners' Capital (Tables)
Partners' Capital (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Partners' Capital | |
Schedule of cash distributions paid or declared | The following table details the cash distribution paid or declared (in millions, except per-unit amounts): Total Payment to General Partner for Incentive Declaration Record Payment Distribution Total Cash Distribution Quarter Ended Date Date Date Per Unit Distribution Rights March 31, 2017 May 3, 2017 May 18, 2017 May 30, 2017 $ 0.5550 $ 14.6 $ June 30, 2017 August 2, 2017 August 15, 2017 August 29, 2017 $ 0.5700 $ 15.0 $ September 30, 2017 November 2, 2017 November 15, 2017 November 29, 2017 $ 0.6150 $ 16.2 $ December 31, 2017 January 31, 2018 February 15, 2018 February 28, 2018 $ 0.6200 $ 16.3 $ March 31, 2018 May 3, 2018 May 15, 2018 May 29, 2018 $ 0.6250 $ 16.5 $ June 30, 2018 August 1, 2018 August 15, 2018 August 29, 2018 $ 0.6300 $ 16.7 $ September 30, 2018 October 31, 2018 November 15, 2018 November 29, 2018 $ 0.6350 $ 16.8 $ |
Schedule of changes in accumulated other comprehensive income | The following table presents the changes in accumulated other comprehensive income for the nine months ended September 30, 2018: Balance at December 31, 2017 $ (3,040) Net unrealized gains on derivative instruments 5,750 Reclassification of net gains on derivative instruments realized into earnings (2,076) Currency translation adjustment 1 Accumulated other comprehensive income at September 30, 2018 $ 635 The following table presents the changes in accumulated other comprehensive loss for the nine months ended September 30, 2017: Balance at December 31, 2016 $ 595 Net unrealized losses on derivative instruments (4,641) Reclassification of net losses on derivative instruments realized into earnings 161 Accumulated other comprehensive loss at September 30, 2017 $ (3,885) |
Equity-Based Awards (Tables)
Equity-Based Awards (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Affiliate Grants | |
Equity-Based Awards | |
Schedule of phantom unit awards | Time-Based Performance-Based Total Affiliate Grant Phantom Units Phantom Units Phantom Units Weighted- Weighted- Weighted- Average Average Average Grant Date Grant Date Grant Date Fair Value Fair Value Fair Value Units (per unit)(1) Units (per unit)(1) Units (per unit)(1) Nonvested December 31, 2017 595,866 $ 22.32 111,104 $ 25.52 706,970 $ 22.82 Granted 386,978 $ 29.12 159,353 $ 28.83 546,331 $ 29.04 Adjusted — $ — 19,832 $ 18.19 19,832 $ 18.19 Forfeitures (83,629) $ 25.48 (17,469) $ 25.76 (101,098) $ 25.53 Vested (181,536) $ 21.42 (45,059) $ 23.80 (226,595) $ 21.89 Nonvested September 30, 2018 717,679 $ 25.85 227,761 $ 27.52 945,440 $ 26.25 (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. |
Director Grants | |
Equity-Based Awards | |
Schedule of phantom unit awards | Time-Based Performance-Based Total Director Grant Phantom Units Phantom Units Phantom Units Weighted- Weighted- Weighted- Average Average Average Grant Date Grant Date Grant Date Fair Value Fair Value Fair Value Units (per unit)(1) Units (per unit)(1) Units (per unit)(1) Nonvested December 31, 2017 15,840 $ 25.25 — $ — 15,840 $ 25.25 Granted 13,964 $ 28.65 — $ — 13,964 $ 28.65 Vested (15,840) $ 25.25 — $ — (15,840) $ 25.25 Nonvested September 30, 2018 13,964 $ 28.65 — $ — 13,964 $ 28.65 (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. |
Net Income (Loss) per Limited_2
Net Income (Loss) per Limited Partner Unit (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Net Income (Loss) per Limited Partner Unit | |
Schedule of weighted average common units outstanding | Three Months Ended September 30, 2018 Common Subordinated General Units Units Partner Weighted-average common units outstanding—basic 26,477 — — Effect of nonvested phantom units 1,001 — — Weighted-average common units outstanding—diluted 27,478 — — Nine Months Ended September 30, 2018 Common Subordinated General Units Units Partner Weighted-average common units outstanding—basic 19,866 6,541 — Effect of nonvested phantom units — — — Weighted-average common units outstanding—diluted 19,866 6,541 — Three Months Ended September 30, 2017 Common Subordinated General Units Units Partner Weighted-average common units outstanding—basic 14,412 11,905 — Effect of nonvested phantom units 973 — — Weighted-average common units outstanding—diluted 15,385 11,905 — Nine Months Ended September 30, 2017 Common Subordinated General Units Units Partner Weighted-average common units outstanding—basic 14,400 11,905 — Effect of nonvested phantom units 943 — — Weighted-average common units outstanding—diluted 15,343 11,905 — |
Schedule of basic earnings (loss) per common, subordinated and general partner units | Three Months Ended September 30, 2018 Common Subordinated General Units Units Partner Total Distributions declared $ 16,814 $ — $ 1,532 $ 18,346 Earnings less than distributions (4,990) — — (4,990) Net income attributable to partners $ 11,824 $ — $ 1,532 $ 13,356 Weighted-average units outstanding—basic 26,477 — Weighted-average units outstanding—diluted 27,478 — Net income per limited partner unit—basic $ 0.45 $ — Net income per limited partner unit—diluted $ 0.43 $ — Nine Months Ended September 30, 2018 Common Subordinated General Units Units Partner Total Distributions declared $ 37,618 $ 12,386 $ 4,197 $ 54,201 Earnings less than distributions (42,607) (14,029) — (56,636) Net (loss) income attributable to partners $ (4,989) $ (1,643) $ 4,197 $ (2,435) Weighted-average units outstanding—basic and diluted 19,866 6,541 Net loss per limited partner unit—basic and diluted $ (0.25) $ (0.25) Three Months Ended September 30, 2017 Common Subordinated General Units Units Partner Total Distributions declared $ 8,863 $ 7,322 $ 1,063 $ 17,248 Earnings less than distributions (5,974) (4,935) — (10,909) Net income attributable to partners $ 2,889 $ 2,387 $ 1,063 $ 6,339 Weighted-average units outstanding—basic 14,412 11,905 Weighted-average units outstanding—diluted 15,385 11,905 Net income per limited partner unit—basic $ 0.20 $ 0.20 Net income per limited partner unit—diluted $ 0.19 $ 0.20 Nine Months Ended September 30, 2017 Common Subordinated General Units Units Partner Total Distributions declared $ 25,077 $ 20,715 $ 2,269 $ 48,061 Earnings less than distributions (19,345) (15,980) — (35,325) Net income attributable to partners $ 5,732 $ 4,735 $ 2,269 $ 12,736 Weighted-average units outstanding—basic 14,400 11,905 Weighted-average units outstanding—diluted 15,343 11,905 Net income per limited partner unit—basic $ 0.40 $ 0.40 Net income per limited partner unit—diluted $ 0.37 $ 0.40 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Guarantor Information | |
Schedule of condensed consolidated balance sheet | Condensed Consolidated Balance Sheet September 30, 2018 Guarantor Non-Guarantor Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 786 $ 77 $ — $ 863 Accounts receivable, net 49,152 — — 49,152 Related-party receivables 10,355 4,611 (9,431) 5,535 Inventories 34,322 — — 34,322 Prepaid expenses and other current assets 1,643 — — 1,643 Total current assets 96,258 4,688 (9,431) 91,515 Property, plant and equipment, net 552,456 — — 552,456 Intangible assets, net — — — — Goodwill 85,615 — — 85,615 Other long-term assets 4,783 — — 4,783 Total assets $ 739,112 $ 4,688 $ (9,431) $ 734,369 Liabilities and Partners’ Capital Current liabilities: Accounts payable $ 10,730 $ — $ — $ 10,730 Related-party payables and accrued liabilities 34,900 4,820 (9,431) 30,289 Accrued and other current liabilities 35,849 — — 35,849 Current portion of interest payable 12,573 — — 12,573 Current portion of long-term debt and capital lease obligations 7,070 — — 7,070 Total current liabilities 101,122 4,820 (9,431) 96,511 Long-term debt and capital lease obligations 402,447 — — 402,447 Related-party long-term payable 74,000 — — 74,000 Long-term interest payable 980 — — 980 Other long-term liabilities 4,687 — — 4,687 Total liabilities 583,236 4,820 (9,431) 578,625 Total Enviva Partners, LP partners’ capital 155,876 (132) — 155,744 Total liabilities and partners’ capital $ 739,112 $ 4,688 $ (9,431) $ 734,369 Condensed Consolidated Balance Sheet December 31, 2017 Guarantor Non-Guarantor Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 524 $ — $ — $ 524 Accounts receivable, net 79,185 — — 79,185 Related-party receivables 5,412 — — 5,412 Inventories 23,536 — — 23,536 Prepaid expenses and other current assets 1,006 — — 1,006 Total current assets 109,663 — — 109,663 Property, plant and equipment, net 562,330 — — 562,330 Intangible assets, net 109 — — 109 Goodwill 85,615 — — 85,615 Other long-term assets 2,394 — — 2,394 Total assets $ 760,111 $ — $ — $ 760,111 Liabilities and Partners’ Capital Current liabilities: Accounts payable $ 7,554 $ — $ — $ 7,554 Related-party payables and accrued liabilities 26,398 — — 26,398 Accrued and other current liabilities 29,363 — — 29,363 Current portion of interest payable 5,029 — — 5,029 Current portion of long-term debt and capital lease obligations 6,186 — — 6,186 Total current liabilities 74,530 — — 74,530 Long-term debt and capital lease obligations 394,831 — — 394,831 Related-party long-term payable 74,000 — — 74,000 Long-term interest payable 890 — — 890 Other long-term liabilities 5,491 — — 5,491 Total liabilities 549,742 — — 549,742 Total Enviva Partners, LP partners’ capital 210,369 — — 210,369 Total liabilities and partners’ capital $ 760,111 $ — $ — $ 760,111 |
Schedule of condensed consolidated statement of operations | Condensed Consolidated Statement of Operations For the Three Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Product sales $ 142,541 $ — $ — $ 142,541 Other revenue 1,607 — — 1,607 Net revenue 144,148 — — 144,148 Cost of goods sold 103,695 — — 103,695 Loss on disposal of assets 656 — — 656 Depreciation and amortization 9,678 — — 9,678 Total cost of goods sold 114,029 — — 114,029 Gross margin 30,119 — — 30,119 General and administrative expenses 7,287 28 — 7,315 Income (loss) from operations 22,832 (28) — 22,804 Other (expense) income: Interest expense (9,445) — — (9,445) Other (expense) income: (12) 9 — (3) Total other (expense) income, net (9,457) 9 — (9,448) Net income (loss) 13,375 (19) — 13,356 Less net loss attributable to noncontrolling partners’ interests — — — — Net income (loss) attributable to Enviva Partners, LP $ 13,375 $ (19) $ — $ 13,356 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — — — Enviva Partners, LP limited partners’ interest in net income (loss) $ 13,375 $ (19) $ — $ 13,356 Condensed Consolidated Statement of Operations For the Three Months Ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Product sales $ 125,422 $ — $ — $ 125,422 Other revenue 6,801 — — 6,801 Net revenue 132,223 — — 132,223 Cost of goods sold 101,102 (205) — 100,897 Loss on disposal of assets 1,237 — — 1,237 Depreciation and amortization 9,707 — — 9,707 Total cost of goods sold 112,046 (205) — 111,841 Gross margin 20,177 205 — 20,382 General and administrative expenses 7,493 211 — 7,704 Income (loss) from operations 12,684 (6) — 12,678 Other expense: Interest expense (7,653) — — (7,653) Other expense (2) — — (2) Total other expense, net (7,655) — — (7,655) Net income (loss) 5,029 (6) — 5,023 Less net loss attributable to noncontrolling partners’ interests 660 5 — 665 Net income (loss) attributable to Enviva Partners, LP $ 5,689 $ (1) $ — $ 5,688 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner (651) — — (651) Enviva Partners, LP limited partners’ interest in net income (loss) $ 6,340 $ (1) $ — $ 6,339 Condensed Consolidated Statement of Operations For the Nine Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Product sales $ 398,031 $ — $ — $ 398,031 Other revenue 7,037 — — 7,037 Net revenue 405,068 — — 405,068 Cost of goods sold 330,456 — — 330,456 Loss on disposal of assets 900 — — 900 Depreciation and amortization 28,800 — — 28,800 Total cost of goods sold 360,156 — — 360,156 Gross margin 44,912 — — 44,912 General and administrative expenses 21,358 48 — 21,406 Income (loss) from operations 23,554 (48) — 23,506 Other income (expense): Interest expense (27,137) — — (27,137) Other income (expense) 1,281 (85) — 1,196 Total other expense, net (25,856) (85) — (25,941) Net loss (2,302) (133) — (2,435) Less net loss attributable to noncontrolling partners’ interests — — — — Net loss attributable to Enviva Partners, LP $ (2,302) $ (133) $ — $ (2,435) Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — — — Enviva Partners, LP limited partners’ interest in net loss $ (2,302) $ (133) $ — $ (2,435) Condensed Consolidated Statement of Operations For the Nine Months Ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Product sales $ 363,689 $ 2,453 $ — $ 366,142 Other revenue 16,071 — — 16,071 Net revenue 379,760 2,453 — 382,213 Cost of goods sold 294,542 2,244 — 296,786 Loss on disposal of assets 3,242 — — 3,242 Depreciation and amortization 29,104 — — 29,104 Total cost of goods sold 326,888 2,244 — 329,132 Gross margin 52,872 209 — 53,081 General and administrative expenses 21,666 1,671 — 23,337 Income (loss) from operations 31,206 (1,462) — 29,744 Other expense: Interest expense (23,070) — — (23,070) Other expense (199) — — (199) Total other expense, net (23,269) — — (23,269) Net income (loss) 7,937 (1,462) — 6,475 Less net loss attributable to noncontrolling partners’ interests 3,139 41 — 3,180 Net income (loss) attributable to Enviva Partners, LP $ 11,076 $ (1,421) $ — $ 9,655 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner (3,081) — — (3,081) Enviva Partners, LP limited partners’ interest in net income (loss) $ 14,157 $ (1,421) $ — $ 12,736 |
Schedule of condensed consolidated statement of comprehensive income | Condensed Consolidated Statement of Comprehensive Income For the Three Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 13,375 $ (19) $ — $ 13,356 Other comprehensive income (loss): Net unrealized gains on cash flow hedges 2,713 — — 2,713 Reclassification of net gains realized into net income (loss) (2,013) — — (2,013) Currency translation adjustment — 1 — 1 Total other comprehensive income 700 1 — 701 Total comprehensive income (loss) 14,075 (18) — 14,057 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — — — Total comprehensive income (loss) subsequent to Enviva Port of Wilmington, LLC Drop-Down 14,075 (18) — 14,057 Less: Comprehensive loss attributable to noncontrolling partners’ interests — — — — Comprehensive income (loss) attributable to Enviva Partners, LP partners $ 14,075 $ (18) $ — $ 14,057 Condensed Consolidated Statement of Comprehensive Income For the Three Months Ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 5,029 $ (6) $ — $ 5,023 Other comprehensive income (loss): Net unrealized losses on cash flow hedges (1,788) — — (1,788) Reclassification of net gains realized into net income 55 — — 55 Total other comprehensive loss (1,733) — — (1,733) Total comprehensive income (loss) 3,296 (6) — 3,290 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner (651) — — (651) Total comprehensive income (loss) subsequent to Enviva Port of Wilmington, LLC Drop-Down 3,947 (6) — 3,941 Less: Comprehensive loss attributable to noncontrolling partners’ interests (660) (5) — (665) Comprehensive income (loss) attributable to Enviva Partners, LP partners $ 4,607 $ (1) $ — $ 4,606 Condensed Consolidated Statement of Comprehensive Income For the Nine Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net loss $ (2,302) $ (133) $ — $ (2,435) Other comprehensive income (loss): Net unrealized gains on cash flow hedges 5,750 — — 5,750 Reclassification of net gains realized into net income (2,076) — — (2,076) Currency translation adjustment — 1 — 1 Total other comprehensive income 3,674 1 — 3,675 Total comprehensive income (loss) 1,372 (132) — 1,240 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — — — Total comprehensive income (loss) subsequent to Enviva Port of Wilmington, LLC Drop-Down 1,372 (132) — 1,240 Less: Comprehensive loss attributable to noncontrolling partners’ interests — — — — Comprehensive income (loss) attributable to Enviva Partners, LP partners $ 1,372 $ (132) $ — $ 1,240 Condensed Consolidated Statement of Comprehensive Income For the Nine Months Ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 7,937 $ (1,462) $ — $ 6,475 Other comprehensive income (loss): Net unrealized losses on cash flow hedges (4,641) — — (4,641) Reclassification of net gains realized into net income 161 — — 161 Total other comprehensive loss (4,480) — — (4,480) Total comprehensive income (loss) 3,457 (1,462) — 1,995 Less: Pre-acquisition loss from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner (3,081) — — (3,081) Total comprehensive income (loss) subsequent to Enviva Port of Wilmington, LLC Drop-Down 6,538 (1,462) — 5,076 Less: Comprehensive loss attributable to noncontrolling partners’ interests (3,139) (41) — (3,180) Comprehensive income (loss) attributable to Enviva Partners, LP partners $ 9,677 $ (1,421) $ — $ 8,256 |
Schedule of condensed consolidated statement of cash flows | Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2018 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net loss $ (2,302) $ (133) $ — $ (2,435) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 29,240 — — 29,240 Amortization of debt issuance costs, debt premium and original issue discounts 828 — — 828 Loss on disposal of assets 900 — — 900 Unit-based compensation 5,604 — — 5,604 De-designation of foreign currency forwards and options — — De-designation of foreign currency forwards and options (1,947) — — (1,947) Fair value changes in derivatives (4,465) — — (4,465) Unrealized loss on foreign currency transactions 31 1 — 32 Change in operating assets and liabilities: Accounts receivable, net 30,004 — — 30,004 Related-party receivables (4,943) (4,611) 9,431 (123) Prepaid expenses and other assets (160) — — (160) Inventories (9,735) — — (9,735) Derivatives 5,080 — — 5,080 Accounts payable, accrued liabilities and other current liabilities 5,475 — — 5,475 Related-party payables and accrued liabilities 7,928 4,820 (9,431) 3,317 Accrued interest 7,634 — — 7,634 Other current liabilities 234 — — 234 Other long-term liabilities 648 — — 648 Net cash provided by operating activities 70,054 77 — 70,131 Cash flows from investing activities: Purchases of property, plant and equipment (16,034) — — (16,034) Insurance proceeds from property loss 1,130 — — 1,130 Net cash used in investing activities (14,904) — — (14,904) Cash flows from financing activities: Principal payments on debt and capital lease obligations (4,745) — — (4,745) Proceeds from common unit issuance under the At-the-Market Offering Program, net 241 — — 241 Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder (55,163) — — (55,163) Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting (2,341) — — (2,341) Payment for withholding tax associated with Long-Term Incentive Plan vesting (4,380) — — (4,380) Proceeds and payments on revolving credit commitments 11,500 — — 11,500 Net cash used in financing activities (54,888) — — (54,888) Net increase in cash, cash equivalents and restricted cash 262 77 — 339 Cash, cash equivalents and restricted cash, beginning of period 524 — — 524 Cash, cash equivalents and restricted cash, end of period $ 786 $ 77 $ — $ 863 Condensed Consolidated Statement of Cash Flows For the nine months ended September 30, 2017 Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ 7,937 $ (1,462) $ — $ 6,475 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 28,927 188 — 29,115 Amortization of debt issuance costs, debt premium and original issue discounts 1,161 — — 1,161 General and administrative expense incurred by the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down 1,338 — — 1,338 Loss on disposal of assets 3,242 — — 3,242 Unit-based compensation 5,113 — — 5,113 Fair value changes in derivatives (13) — — (13) Change in operating assets and liabilities: Accounts receivable, net 28,026 — — 28,026 Related-party receivables (3,312) — — (3,312) Prepaid expenses and other assets 76 — — 76 Assets held for sale — (310) — (310) Inventories (6,245) 1,812 — (4,433) Other long-term assets 86 — — 86 Derivatives (1,442) — — (1,442) Accounts payable, accrued liabilities and other current liabilities (6,845) — — (6,845) Related-party payables and accrued liabilities 9,147 (315) — 8,832 Accrued interest 6,301 — — 6,301 Other long-term liabilities 621 — — 621 Net cash provided by operating activities 74,118 (87) — 74,031 Cash flows from investing activities: — Purchases of property, plant and equipment (21,916) — — (21,916) Net cash used in investing activities (21,916) — — (21,916) Cash flows from financing activities: Principal payments on debt and capital lease obligations (3,428) — — (3,428) Cash paid related to debt issuance costs (209) — — (209) Proceeds from common unit issuance under the At-the-Market Offering Program, net 1,715 — — 1,715 Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder (46,323) — — (46,323) Proceeds and payments on revolving credit commitments (6,500) — — (6,500) Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down 1,652 — — 1,652 Proceeds from contributions from the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down 9,965 — — 9,965 Net cash used in financing activities (43,128) — — (43,128) Net increase in cash, cash equivalents and restricted cash 9,074 (87) — 8,987 Cash, cash equivalents and restricted cash, beginning of period 362 104 — 466 Cash, cash equivalents and restricted cash, end of period $ 9,436 $ 17 $ — $ 9,453 |
Description of Business and B_2
Description of Business and Basis of Presentation - (Details) $ in Millions | Oct. 02, 2017USD ($) | Sep. 30, 2018USD ($)item |
Number of industrial-scale production wood pellet production plants in operation | item | 6 | |
Wilmington, LLC Drop-Down | First Hancock JV | ||
Total consideration | $ 130 | |
Total cash consideration | 54.6 | |
Purchase price adjustment | $ 1.4 | |
Wilmington, LLC Drop-Down | First Hancock JV | ||
Deferred consideration payable | $ 74 |
Significant Accounting Polici_4
Significant Accounting Policies - Impact of Adoption of ASC 606 (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)item | Sep. 30, 2017USD ($) | |
Recently Adopted Accounting Standards | ||||
Cost of goods sold | $ 114,029 | $ 111,841 | $ 360,156 | $ 329,132 |
Gross margin | 30,119 | $ 20,382 | $ 44,912 | $ 53,081 |
Accounting Standards Update 2014-09 | ||||
Recently Adopted Accounting Standards | ||||
Number of revenue categories | item | 2 | |||
Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Recently Adopted Accounting Standards | ||||
Cost of goods sold | 113,809 | $ 354,315 | ||
Gross margin | 30,119 | 44,912 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Recently Adopted Accounting Standards | ||||
Cost of goods sold | (220) | (5,841) | ||
Product sales | ||||
Recently Adopted Accounting Standards | ||||
Revenue | 142,541 | 398,031 | ||
Product sales | Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Recently Adopted Accounting Standards | ||||
Revenue | 141,970 | 391,853 | ||
Product sales | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Recently Adopted Accounting Standards | ||||
Revenue | (571) | (6,178) | ||
Other revenue | ||||
Recently Adopted Accounting Standards | ||||
Revenue | 1,607 | 7,037 | ||
Other revenue | Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Recently Adopted Accounting Standards | ||||
Revenue | 1,958 | 7,374 | ||
Other revenue | Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Recently Adopted Accounting Standards | ||||
Revenue | $ 351 | $ 337 |
Significant Accounting Polici_5
Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Significant Accounting Policies | ||
Amount of restricted cash | $ 0 | $ 0 |
Revenue - Revenue Performance O
Revenue - Revenue Performance Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Performance Obligations | |
Remaining performance obligations | $ 7,325,525 |
Expected weighted average timing of the performance obligations | 9 years 4 months 24 days |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Performance Obligations | |
Remaining performance obligations | $ 166,036 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Performance Obligations | |
Remaining performance obligations | $ 652,433 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Performance Obligations | |
Remaining performance obligations | $ 6,507,056 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 204 months |
Product sales | |
Performance Obligations | |
Remaining performance obligations | $ 7,323,460 |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Performance Obligations | |
Remaining performance obligations | $ 165,859 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Performance Obligations | |
Remaining performance obligations | $ 651,725 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Performance Obligations | |
Remaining performance obligations | $ 6,505,876 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 204 months |
Other revenue | |
Performance Obligations | |
Remaining performance obligations | $ 2,065 |
Other revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Performance Obligations | |
Remaining performance obligations | $ 177 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Other revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Performance Obligations | |
Remaining performance obligations | $ 708 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Other revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Performance Obligations | |
Remaining performance obligations | $ 1,180 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 204 months |
Revenue - Revenue Recognition (
Revenue - Revenue Recognition (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue | ||
Accounts receivable primarily related to product sales | $ 47.1 | $ 78 |
Deferred revenue related to off-take contracts | $ 0 |
Transactions Between Entities_3
Transactions Between Entities Under Common Control (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Transactions Between Entities Under Common Control | |||||
Cash and cash equivalents | $ 9,453 | $ 9,453 | |||
Accounts receivable, net | $ 49,152 | 49,855 | $ 49,152 | 49,855 | $ 79,185 |
Related-party receivables | 5,535 | 8,716 | 5,535 | 8,716 | 5,412 |
Inventories | 34,322 | 34,573 | 34,322 | 34,573 | 23,536 |
Prepaid expenses and other current assets | 1,643 | 4,582 | 1,643 | 4,582 | 1,006 |
Total current assets | 91,515 | 107,179 | 91,515 | 107,179 | 109,663 |
Property, plant and equipment, net of accumulated depreciation | 552,456 | 570,851 | 552,456 | 570,851 | 562,330 |
Goodwill | 85,615 | 85,615 | 85,615 | 85,615 | 85,615 |
Other long-term assets | 4,783 | 2,232 | 4,783 | 2,232 | 2,394 |
Total assets | 734,369 | 765,877 | 734,369 | 765,877 | 760,111 |
Accounts payable | 10,730 | 3,310 | 10,730 | 3,310 | 7,554 |
Related-party payables and accrued liabilities | 30,289 | 19,333 | 30,289 | 19,333 | 26,398 |
Accrued and other current liabilities | 35,849 | 49,549 | 35,849 | 49,549 | 29,363 |
Total current liabilities | 96,511 | 72,192 | 96,511 | 72,192 | 74,530 |
Long-term debt and capital lease obligations | 402,447 | 338,302 | 402,447 | 338,302 | 394,831 |
Other long-term liabilities | 4,687 | 5,756 | 4,687 | 5,756 | 5,491 |
Total liabilities | 578,625 | 416,250 | 578,625 | 416,250 | 549,742 |
Total partners' capital | 155,744 | 349,627 | 155,744 | 349,627 | 210,369 |
Total liabilities and partners' capital | 734,369 | 765,877 | 734,369 | 765,877 | 760,111 |
Revenues | 144,148 | 132,223 | 405,068 | 382,213 | |
Total cost of goods sold | 114,029 | 111,841 | 360,156 | 329,132 | |
Gross margin | 30,119 | 20,382 | 44,912 | 53,081 | |
Net income (loss) | 13,356 | 5,023 | (2,435) | 6,475 | |
Less net loss attributable to noncontrolling partners’ interests | 665 | 3,180 | |||
Net income (loss) attributable to Enviva Partners, LP | 13,356 | 5,688 | (2,435) | 9,655 | |
Net cash provided by operating activities | 70,131 | 74,031 | |||
Net cash used in investing activities | (14,904) | (21,916) | |||
Net cash used in financing activities | (54,888) | (43,128) | |||
Net increase in cash, cash equivalents and restricted cash | 339 | 8,987 | |||
General Partner | |||||
Transactions Between Entities Under Common Control | |||||
Total partners' capital | (133,810) | (133,810) | $ (128,569) | ||
Net income (loss) | 3,794 | ||||
Net income (loss) attributable to Enviva Partners, LP | 1,532 | 1,063 | 4,197 | 2,269 | |
General Partner | Enviva Port of Wilmington, LLC Drop-Down | |||||
Transactions Between Entities Under Common Control | |||||
Net income (loss) attributable to Enviva Partners, LP | (651) | (3,081) | |||
Limited Partners | |||||
Transactions Between Entities Under Common Control | |||||
Net income (loss) attributable to Enviva Partners, LP | $ 13,356 | 6,339 | $ (2,435) | 12,736 | |
As Previously Reported | |||||
Transactions Between Entities Under Common Control | |||||
Cash and cash equivalents | 9,453 | 9,453 | |||
Accounts receivable, net | 49,855 | 49,855 | |||
Related-party receivables | 7,748 | 7,748 | |||
Inventories | 34,477 | 34,477 | |||
Prepaid expenses and other current assets | 4,540 | 4,540 | |||
Total current assets | 106,073 | 106,073 | |||
Property, plant and equipment, net of accumulated depreciation | 495,366 | 495,366 | |||
Goodwill | 85,615 | 85,615 | |||
Other long-term assets | 2,180 | 2,180 | |||
Total assets | 689,234 | 689,234 | |||
Accounts payable | 3,122 | 3,122 | |||
Related-party payables and accrued liabilities | 19,948 | 19,948 | |||
Accrued and other current liabilities | 46,715 | 46,715 | |||
Total current liabilities | 69,785 | 69,785 | |||
Long-term debt and capital lease obligations | 338,115 | 338,115 | |||
Other long-term liabilities | 4,134 | 4,134 | |||
Total liabilities | 412,034 | 412,034 | |||
Total partners' capital | 277,200 | 277,200 | |||
Total liabilities and partners' capital | 689,234 | 689,234 | |||
Revenues | 131,458 | 380,529 | |||
Total cost of goods sold | 110,340 | 322,748 | |||
Gross margin | 21,118 | 57,781 | |||
Net income (loss) | 6,334 | 12,695 | |||
Less net loss attributable to noncontrolling partners’ interests | 5 | 41 | |||
Net income (loss) attributable to Enviva Partners, LP | 6,339 | 12,736 | |||
Net cash provided by operating activities | 76,327 | ||||
Net cash used in investing activities | (14,289) | ||||
Net cash used in financing activities | (53,051) | ||||
Net increase in cash, cash equivalents and restricted cash | 8,987 | ||||
As Previously Reported | Limited Partners | |||||
Transactions Between Entities Under Common Control | |||||
Net income (loss) attributable to Enviva Partners, LP | 6,339 | 12,736 | |||
Recast Adjustment | Enviva Port of Wilmington, LLC Drop-Down | |||||
Transactions Between Entities Under Common Control | |||||
Related-party receivables | 968 | 968 | |||
Inventories | 96 | 96 | |||
Prepaid expenses and other current assets | 42 | 42 | |||
Total current assets | 1,106 | 1,106 | |||
Property, plant and equipment, net of accumulated depreciation | 75,485 | 75,485 | |||
Other long-term assets | 52 | 52 | |||
Total assets | 76,643 | 76,643 | |||
Accounts payable | 188 | 188 | |||
Related-party payables and accrued liabilities | (615) | (615) | |||
Accrued and other current liabilities | 2,834 | 2,834 | |||
Total current liabilities | 2,407 | 2,407 | |||
Long-term debt and capital lease obligations | 187 | 187 | |||
Other long-term liabilities | 1,622 | 1,622 | |||
Total liabilities | 4,216 | 4,216 | |||
Total partners' capital | 72,427 | 72,427 | |||
Total liabilities and partners' capital | 76,643 | 76,643 | |||
Revenues | 765 | 1,684 | |||
Total cost of goods sold | 1,501 | 6,384 | |||
Gross margin | (736) | (4,700) | |||
Net income (loss) | (1,311) | (6,220) | |||
Less net loss attributable to noncontrolling partners’ interests | 660 | 3,139 | |||
Net income (loss) attributable to Enviva Partners, LP | (651) | (3,081) | |||
Net cash provided by operating activities | (2,296) | ||||
Net cash used in investing activities | (7,627) | ||||
Net cash used in financing activities | 9,923 | ||||
Recast Adjustment | General Partner | Enviva Port of Wilmington, LLC Drop-Down | |||||
Transactions Between Entities Under Common Control | |||||
Net income (loss) attributable to Enviva Partners, LP | (651) | (3,081) | |||
Wilmington, LLC Drop-Down | |||||
Transactions Between Entities Under Common Control | |||||
Net income (loss) | $ (700) | $ (3,100) |
Significant Risks and Uncerta_3
Significant Risks and Uncertainties Including Business and Credit Concentrations (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Customer A | ||||
Concentration Risk | ||||
Concentration risk (as a percent) | 52.00% | 73.00% | 53.00% | 68.00% |
Customer B | ||||
Concentration Risk | ||||
Concentration risk (as a percent) | 10.00% | 14.00% | 10.00% | 15.00% |
Customer C | ||||
Concentration Risk | ||||
Concentration risk (as a percent) | 24.00% | 4.00% | 15.00% | 1.00% |
Customer D | ||||
Concentration Risk | ||||
Concentration risk (as a percent) | 9.00% | 9.00% | 14.00% | 12.00% |
Inventory Impairment and Asse_2
Inventory Impairment and Asset Disposal - (Details) $ in Millions | Feb. 27, 2018MT | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) |
Assets held for sale | |||
Volume of inventory damaged in fire | MT | 43,000 | ||
Impairment of terminal assets | $ 0 | $ 1.1 | |
Inventory write-off, inclusive of disposal costs | 0 | 10.7 | |
Additional emergency response and temporary storage, handling and shiploading operations caused by the fire | 9.7 | 46.6 | |
Proceeds received from insurance recoveries | 47.5 | ||
Insurance recoveries in account receivable | 1.7 | 1.7 | |
Business interruption recoveries | 11.4 | 24.4 | |
Cost of goods sold. | |||
Assets held for sale | |||
Insurance recoveries | 21.8 | 48.1 | |
Other income | |||
Assets held for sale | |||
Insurance recoveries | $ 0 | $ 1.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Inventories | |||
Raw materials and work-in-progress | $ 3,896 | $ 4,516 | |
Consumable tooling | 16,304 | 14,447 | |
Finished goods | 14,122 | 4,573 | |
Total inventories | $ 34,322 | $ 23,536 | $ 34,573 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Components of Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 681,749 | $ 681,749 | $ 673,548 | ||
Less accumulated depreciation | (145,297) | (145,297) | (117,067) | ||
Property, plant and equipment excluding construction in progress | 536,452 | 536,452 | 556,481 | ||
Construction in progress | 16,004 | 16,004 | 5,849 | ||
Total property, plant and equipment, net | 552,456 | $ 570,851 | 552,456 | $ 570,851 | 562,330 |
Total depreciation expense | 9,800 | $ 9,000 | 29,100 | 27,900 | |
Property, plant and equipment and construction in progress | 7,539 | $ 6,649 | |||
Land | |||||
Components of Property, plant and equipment | |||||
Property, plant and equipment, gross | 13,492 | 13,492 | 13,492 | ||
Land improvements | |||||
Components of Property, plant and equipment | |||||
Property, plant and equipment, gross | 44,675 | 44,675 | 42,962 | ||
Buildings | |||||
Components of Property, plant and equipment | |||||
Property, plant and equipment, gross | 196,696 | 196,696 | 196,153 | ||
Machinery and equipment | |||||
Components of Property, plant and equipment | |||||
Property, plant and equipment, gross | 419,181 | 419,181 | 413,349 | ||
Vehicles | |||||
Components of Property, plant and equipment | |||||
Property, plant and equipment, gross | 635 | 635 | 635 | ||
Furniture and office equipment | |||||
Components of Property, plant and equipment | |||||
Property, plant and equipment, gross | 6,083 | 6,083 | 5,970 | ||
Leasehold improvements. | |||||
Components of Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 987 | 987 | 987 | ||
Accrued liabilities and other liabilities | |||||
Components of Property, plant and equipment | |||||
Property, plant and equipment and construction in progress | $ 5,700 | $ 2,300 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair value of cash flow hedges | |||||
Unrealized net gains reclassified to earnings | $ 1,900 | ||||
Unrealized net gains on derivative instruments | $ (5,080) | $ 1,442 | |||
Realized gains on settled derivatives | 4,300 | ||||
Gains included in Other income (expense) related to the change in fair market value | 400 | $ 100 | 3,500 | $ 300 | |
Product sales. | |||||
Fair value of cash flow hedges | |||||
Unrealized net gains reclassified to earnings | 1,900 | 1,900 | |||
Unrealized net gains on derivative instruments | 2,300 | 5,400 | |||
Cash flow hedges | Derivatives designated as hedging instruments | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 846 | 846 | $ 1,651 | ||
Total liability derivative | 2,118 | ||||
Cash flow hedges | Derivatives designated as hedging instruments | Prepaid and other current assets | Foreign currency exchange purchased option contracts | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 1,024 | ||||
Cash flow hedges | Derivatives designated as hedging instruments | Prepaid and other current assets | Interest rate swap contracts | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 220 | ||||
Cash flow hedges | Derivatives designated as hedging instruments | Other current assets | Interest rate swap contracts | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 532 | 532 | |||
Cash flow hedges | Derivatives designated as hedging instruments | Other long-term assets | Interest rate swap contracts | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 314 | 314 | 407 | ||
Cash flow hedges | Derivatives designated as hedging instruments | Other long-term liabilities | Foreign currency exchange forward contracts | |||||
Fair value of cash flow hedges | |||||
Total liability derivative | 2,118 | ||||
Cash flow hedges | Derivatives not designated as hedging instruments | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 3,695 | 3,695 | 172 | ||
Total liability derivative | 1,165 | 1,165 | 1,334 | ||
Cash flow hedges | Derivatives not designated as hedging instruments | Prepaid and other current assets | Foreign currency exchange forward contracts | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 255 | 255 | 124 | ||
Cash flow hedges | Derivatives not designated as hedging instruments | Prepaid and other current assets | Foreign currency exchange purchased option contracts | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 3 | ||||
Cash flow hedges | Derivatives not designated as hedging instruments | Accrued and other current liabilities | Foreign currency exchange forward contracts | |||||
Fair value of cash flow hedges | |||||
Total liability derivative | 263 | 263 | 806 | ||
Cash flow hedges | Derivatives not designated as hedging instruments | Other long-term assets | Foreign currency exchange forward contracts | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 1,030 | 1,030 | |||
Cash flow hedges | Derivatives not designated as hedging instruments | Other long-term assets | Foreign currency exchange purchased option contracts | |||||
Fair value of cash flow hedges | |||||
Total asset derivative | 2,410 | 2,410 | 45 | ||
Cash flow hedges | Derivatives not designated as hedging instruments | Other long-term liabilities | Foreign currency exchange forward contracts | |||||
Fair value of cash flow hedges | |||||
Total liability derivative | $ 902 | $ 902 | $ 528 |
Derivative Instruments - Change
Derivative Instruments - Changes In Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Gains (losses) of derivative instruments designated as cash flow hedges in other comprehensive income | ||||
Net derivative settlement termination payment amount | $ 3,400 | $ 3,400 | ||
Cash flow hedges | Derivatives designated as hedging instruments | Foreign currency exchange forward contracts | Product sales. | ||||
Gains (losses) of derivative instruments designated as cash flow hedges in other comprehensive income | ||||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | 1,907 | $ (1,484) | 4,532 | $ (3,445) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 26 | 26 | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2,418 | (1) | 2,413 | (1) |
Cash flow hedges | Derivatives designated as hedging instruments | Foreign currency exchange forward contracts | Other revenue | ||||
Gains (losses) of derivative instruments designated as cash flow hedges in other comprehensive income | ||||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | (22) | (11) | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (30) | (11) | ||
Cash flow hedges | Derivatives designated as hedging instruments | Foreign currency exchange purchased option contracts | Product sales. | ||||
Gains (losses) of derivative instruments designated as cash flow hedges in other comprehensive income | ||||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | 765 | (294) | 749 | (1,047) |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (470) | (470) | ||
Cash flow hedges | Derivatives designated as hedging instruments | Interest rate swap contracts | Other income | ||||
Gains (losses) of derivative instruments designated as cash flow hedges in other comprehensive income | ||||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | 41 | 469 | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 67 | $ 131 | ||
Cash flow hedges | Derivatives designated as hedging instruments | Interest rate swap contracts | Other expense | ||||
Gains (losses) of derivative instruments designated as cash flow hedges in other comprehensive income | ||||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | 12 | (138) | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (51) | (176) | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 13 | $ 13 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts (Details) - Derivatives designated as hedging instruments - Cash flow hedges € in Thousands, £ in Thousands, $ in Thousands | Sep. 30, 2018GBP (£) | Sep. 30, 2018EUR (€) | Sep. 30, 2018USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) |
Foreign currency exchange forward contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Notional amount | £ 45,630 | € 14,300 | £ 46,465 | € 5,350 | ||
Foreign currency exchange purchased option contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Notional amount | £ 39,365 | € 1,675 | £ 34,050 | |||
Interest rate swap contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Notional amount | $ 41,198 | $ 44,756 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - Level 2 - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Senior Notes | $ 352,682 | $ 352,224 |
Other long-term debt and capital lease obligation | 56,835 | 48,793 |
Total long-term debit and capital obligations | 409,517 | 401,017 |
Fair Value | ||
Senior Notes | 366,420 | 374,624 |
Other long-term debt and capital lease obligation | 56,835 | 48,793 |
Total long-term debit and capital obligations | $ 423,255 | $ 423,417 |
Long-Term Debt and Capital Le_3
Long-Term Debt and Capital Lease Obligations - Capital Lease Obligation Table (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Long term debt | ||
Total long-term debt and capital lease obligations | $ 409,517 | $ 401,017 |
less current portion of long-term debt and capital lease obligations | (7,070) | (6,186) |
Long-term debt and capital lease obligations, excluding current installments | 402,447 | 394,831 |
Other loans | ||
Long term debt | ||
Long-term debt | 2,017 | 2,023 |
Capital Lease Obligations. | ||
Long term debt | ||
Capital leases | 2,872 | 3,135 |
Senior Notes | ||
Long term debt | ||
Long-term debt | 352,682 | 352,224 |
Unamortized discount and debt issuance costs | 2,300 | 2,800 |
Senior Secured Credit Facilities | Tranche A-1 advances | ||
Long term debt | ||
Long-term debt | 36,365 | 39,263 |
Unamortized discount and debt issuance costs | 700 | 1,000 |
Senior Secured Credit Facilities | Tranche A-3 advances | ||
Long term debt | ||
Long-term debt | 4,081 | 4,372 |
Unamortized discount and debt issuance costs | 100 | $ 100 |
Senior Secured Credit Facilities | Revolving credit commitments | ||
Long term debt | ||
Long-term debt | $ 11,500 |
Long-Term Debt and Capital Le_4
Long-Term Debt and Capital Lease Obligations - Note Disclosure (Details) $ in Millions | Oct. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 31, 2018 | Dec. 31, 2017USD ($) |
Senior Secured Credit Facilities | ||||
Senior Secured Credit Facilities | ||||
Aggregate principal amount | $ 100 | |||
Leverage Ratio | 400 | |||
Step down in Leverage Ratio | 375 | |||
Senior Secured Credit Facilities | Revolving credit commitments | ||||
Senior Secured Credit Facilities | ||||
Letters of credit outstanding | $ 0 | $ 4 | ||
Line of credit amount outstanding | $ 11.5 | $ 0 | ||
Senior Secured Credit Facilities | Subsequent Event | ||||
Senior Secured Credit Facilities | ||||
Aggregate principal amount | $ 350 | |||
Senior Secured Credit Facilities | Minimum | ||||
Senior Secured Credit Facilities | ||||
Leverage Ratio | 475 | |||
Senior Notes Due 2021 | ||||
Long term debt and capital lease obligations | ||||
Interest rate (as a percent) | 8.50% | 8.50% |
Related-Party Transactions (Det
Related-Party Transactions (Details) $ in Thousands | Feb. 16, 2018MT | Oct. 02, 2017USD ($) | Jun. 23, 2017USD ($) | Dec. 14, 2016MT | Sep. 07, 2016MT | Sep. 30, 2018USD ($) | Jan. 31, 2016MT | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)MT | Dec. 31, 2016USD ($) |
Related-Party Transaction | |||||||||||||
Related-party receivables | $ 5,535 | $ 5,535 | $ 8,716 | $ 5,535 | $ 8,716 | $ 5,412 | |||||||
Amount due to related-party | 30,289 | 30,289 | 19,333 | 30,289 | 19,333 | 26,398 | |||||||
Cash paid to general partner for settlement of performance based phantom unit awards | 2,700 | 6,700 | |||||||||||
First Hancock JV | |||||||||||||
Related-Party Transaction | |||||||||||||
Annual volume of wood pellets to be sold | MT | 375,000 | ||||||||||||
Other revenue | |||||||||||||
Related-Party Transaction | |||||||||||||
Related party revenue | 1,042 | 765 | 3,346 | 4,390 | |||||||||
Cost of goods sold. | |||||||||||||
Related-Party Transaction | |||||||||||||
Related party expenses | 20,133 | 17,044 | 56,184 | 47,222 | |||||||||
General and administrative expenses | |||||||||||||
Related-Party Transaction | |||||||||||||
Related party expenses | 4,113 | 3,735 | 11,628 | 9,908 | |||||||||
Enviva FiberCo. LLC | |||||||||||||
Related-Party Transaction | |||||||||||||
Purchase of raw materials | 1,800 | 5,300 | |||||||||||
New MSA | Inventory finished goods | |||||||||||||
Related-Party Transaction | |||||||||||||
Costs included in finished goods inventory | 2,700 | 2,700 | 2,700 | ||||||||||
New MSA | Related-party payable | |||||||||||||
Related-Party Transaction | |||||||||||||
Amount due to related-party | 18,700 | 18,700 | 18,700 | 19,600 | |||||||||
New MSA | Cost of goods sold. | |||||||||||||
Related-Party Transaction | |||||||||||||
MSA related expenses incurred | 13,400 | 9,700 | 35,900 | 32,900 | |||||||||
New MSA | General and administrative expenses | |||||||||||||
Related-Party Transaction | |||||||||||||
MSA related expenses incurred | 4,100 | 3,700 | 11,600 | 9,900 | |||||||||
Secondary Supply Agreement | First Hancock JV | |||||||||||||
Related-Party Transaction | |||||||||||||
Annual volume of wood pellets to be sold | MT | 95,000 | ||||||||||||
Biomass Option Agreement | Enviva Holdings, LP. | |||||||||||||
Related-Party Transaction | |||||||||||||
Wood pellets purchased | 0 | 5,200 | 1,700 | 8,100 | |||||||||
Greenwood Contract | |||||||||||||
Related-Party Transaction | |||||||||||||
Annual volume of wood pellets to be purchased | MT | 550,000 | ||||||||||||
Wood pellets purchased | 8,500 | 16,800 | |||||||||||
Greenwood Contract | Inventory finished goods | |||||||||||||
Related-Party Transaction | |||||||||||||
Costs included in finished goods inventory | 2,300 | 2,300 | 2,300 | ||||||||||
Greenwood Contract | Related-party payable | |||||||||||||
Related-Party Transaction | |||||||||||||
Amount due to related-party | 10,800 | 10,800 | 10,800 | ||||||||||
Greenwood Contract | Cost of goods sold. | |||||||||||||
Related-Party Transaction | |||||||||||||
Wood pellets purchased | 6,200 | 14,500 | |||||||||||
Payment Agreements | First Hancock JV | |||||||||||||
Related-Party Transaction | |||||||||||||
Reimbursable expenses incurred | 2,900 | ||||||||||||
Proceeds received | 2,900 | ||||||||||||
Enviva FiberCo. LLC | |||||||||||||
Related-Party Transaction | |||||||||||||
Purchase of raw materials | 2,200 | 6,300 | |||||||||||
Sampson, LLC Drop-Down | First Hancock JV | |||||||||||||
Related-Party Transaction | |||||||||||||
Amount due to related-party | 2,000 | 2,000 | 2,000 | 3,000 | |||||||||
Related-party receivable | $ 6,400 | ||||||||||||
Sampson, LLC Drop-Down | Biomass Purchase Agreement | |||||||||||||
Related-Party Transaction | |||||||||||||
Annual volume of wood pellets to be purchased | MT | 60,000 | ||||||||||||
Sampson, LLC Drop-Down | Biomass Purchase Agreement | Other revenue | |||||||||||||
Related-Party Transaction | |||||||||||||
Revenue earned from wood pellets sold | $ 2,700 | ||||||||||||
Wilmington, LLC Drop-Down | |||||||||||||
Related-Party Transaction | |||||||||||||
Deficiency fees | 1,800 | ||||||||||||
Wilmington, LLC Drop-Down | First Hancock JV | |||||||||||||
Related-Party Transaction | |||||||||||||
Deferred consideration payable | 74,000 | 74,000 | 74,000 | ||||||||||
Wilmington, LLC Drop-Down | First Hancock JV | |||||||||||||
Related-Party Transaction | |||||||||||||
Reimbursable expenses incurred | $ 1,800 | ||||||||||||
Amount due to related-party | 1,300 | 1,300 | 1,300 | $ 1,300 | |||||||||
Wilmington, LLC Drop-Down | Terminal Services Agreement | Other revenue | |||||||||||||
Related-Party Transaction | |||||||||||||
Terminal service fees | 0 | $ 600 | 800 | $ 1,300 | |||||||||
Deficiency fees | 500 | 500 | 2,000 | ||||||||||
Wilmington, LLC Drop-Down | Terminal Services Agreement | First Hancock JV | Minimum | |||||||||||||
Related-Party Transaction | |||||||||||||
Quarterly amounts of pellets to be delivered | MT | 125,000 | ||||||||||||
Wilmington, LLC Drop-Down | Greenwood Contract | Cost of goods sold. | |||||||||||||
Related-Party Transaction | |||||||||||||
Deficiency fees | 1,300 | ||||||||||||
Enviva Port of Wilmington, LLC | First Hancock JV | |||||||||||||
Related-Party Transaction | |||||||||||||
Total consideration | $ 130,000 | ||||||||||||
Deferred consideration payable | $ 74,000 | $ 74,000 | $ 74,000 | $ 74,000 |
Partners' Capital - Ownership a
Partners' Capital - Ownership and Shares (Details) | May 09, 2018USD ($) | Sep. 30, 2018shares | May 30, 2018shares | Dec. 31, 2017shares |
Common Units-Sponsor | ||||
Partners' Capital and Distribution | ||||
Units sold | $ | $ 1,265,453 | |||
Common units | 11,905,138 | 1,347,161 | ||
Subordinated Units | ||||
Partners' Capital and Distribution | ||||
Number of outstanding subordinated units converted into common units (in units) | 11,905,138 | |||
The ratio of outstanding subordinated units converted into common units (as a percent) | 100 |
Partners' Capital - Incentive D
Partners' Capital - Incentive Distribution Rights (Details) - General Partner | 9 Months Ended |
Sep. 30, 2018 | |
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 - At-the-Mark
Partners' Capital - At-the-Market Offering Program and Sampson Drop-Down (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Aug. 31, 2016 | |
At-the-Market Offering Program | |||||
Proceeds from sale of common units, net of commissions | $ 241 | $ 1,715 | |||
Common Units | |||||
At-the-Market Offering Program | |||||
Issuance of common units, net (in units) | 0 | 0 | 8,408 | 63,577 | |
Proceeds from sale of common units, net of commissions | $ 200 | $ 1,700 | |||
Common Units | Maximum | |||||
At-the-Market Offering Program | |||||
Stated value of common units covered in the Equity Distribution Agreement | $ 100,000 |
Partners' Capital - Cash Distri
Partners' Capital - Cash Distributions to Unitholders (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 31, 2018 | Aug. 01, 2018 | May 03, 2018 | Jan. 31, 2018 | Nov. 02, 2017 | Aug. 02, 2017 | May 03, 2017 |
Partners' Capital | |||||||
Cash distribution declared | $ 16.8 | $ 16.7 | $ 16.5 | $ 16.3 | $ 16.2 | $ 15 | $ 14.6 |
Cash distribution declared (in dollars per unit) | $ 0.6350 | $ 0.6300 | $ 0.6250 | $ 0.6200 | $ 0.6150 | $ 0.5700 | $ 0.5550 |
Incentive distribution paid | $ 1.5 | $ 1.4 | $ 1.3 | $ 1.1 | $ 1.1 | $ 0.7 | $ 0.5 |
Partners' Capital - Accumulated
Partners' Capital - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Other comprehensive income (loss) | $ 701 | $ (1,733) | $ 3,675 | $ (4,480) |
Changes in accumulated other comprehensive income | ||||
Net unrealized gains (losses) | 2,713 | (1,788) | 5,750 | (4,641) |
Currency translation adjustment | 1 | 1 | ||
Accumulated Other Comprehensive Income. | ||||
Changes in accumulated other comprehensive income | ||||
Beginning of period | (3,040) | 595 | ||
Net unrealized gains (losses) | 5,750 | (4,641) | ||
Reclassification of net losses realized into net income | (2,076) | 161 | ||
Currency translation adjustment | 1 | |||
End of period | $ 635 | $ (3,885) | $ 635 | $ (3,885) |
Partners' Capital - Noncontroll
Partners' Capital - Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noncontrolling Interest | ||||
Net loss | $ (13,356) | $ (5,023) | $ 2,435 | $ (6,475) |
Wilmington, LLC Drop-Down | ||||
Noncontrolling Interest | ||||
Net loss | $ 700 | $ 3,100 |
Equity-Based Awards (Details)
Equity-Based Awards (Details) - USD ($) | Jan. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Weighted Average Grant Date Fair Value per Unit | |||||||||
Cash payments for tax-withholding requirements on unit awards | $ 2,700,000 | ||||||||
General and administrative expenses | [1] | $ 7,315,000 | $ 7,704,000 | 21,406,000 | $ 23,337,000 | ||||
Distribution Equivalent Rights | Related party accrued liabilities | |||||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Distributions paid related to DERs | $ 600,000 | $ 1,800,000 | |||||||
LTIP | |||||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Additional expense from change in fair value of unit awards | $ 100,000 | ||||||||
LTIP | General Partner | |||||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Cash payments for tax-withholding requirements on unit awards | $ 1,700,000 | ||||||||
Units issued by the Company | 81,708 | ||||||||
Grant date fair value | $ 28.65 | ||||||||
LTIP | Phantom units | |||||||||
Number of Units | |||||||||
Vested (in units) | (11,037,000) | (170,499) | |||||||
LTIP | Phantom units | Related party accrued liabilities | |||||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Related parties payable to Provider for withholding taxes | $ 200,000 | $ 200,000 | |||||||
LTIP | Performance Based Phantom units | |||||||||
Number of Units | |||||||||
Vested (in units) | (45,059) | (139,810) | |||||||
LTIP | Performance Based Phantom units | General Partner | |||||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Cash distributions paid | $ 2,300,000 | ||||||||
Affiliate Grants | |||||||||
Number of Units | |||||||||
Nonvested at the beginning of the period (in units) | 706,970 | 706,970 | |||||||
Granted (in units) | 546,331 | ||||||||
Adjusted (in units) | 19,832 | ||||||||
Forfeitures (in units) | (101,098) | ||||||||
Vested (in units) | (226,595) | ||||||||
Nonvested at the end of the period (in units) | 945,440 | 945,440 | 706,970 | ||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Nonvested at the beginning of the period (in dollars per unit) | $ 22.82 | $ 22.82 | |||||||
Granted (in dollars per unit) | 29.04 | ||||||||
Adjusted (in dollar per unit) | 18.19 | ||||||||
Forfeitures (in dollar per unit) | 25.53 | ||||||||
Vested (in dollars per unit) | 21.89 | ||||||||
Nonvested at the end of the period (in dollars per unit) | $ 26.25 | $ 26.25 | $ 22.82 | ||||||
Affiliate Grants | Phantom units | |||||||||
Number of Units | |||||||||
Nonvested at the beginning of the period (in units) | 595,866 | 595,866 | |||||||
Granted (in units) | 386,978 | ||||||||
Forfeitures (in units) | (83,629) | ||||||||
Vested (in units) | (181,536) | ||||||||
Nonvested at the end of the period (in units) | 717,679 | 717,679 | 595,866 | ||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Nonvested at the beginning of the period (in dollars per unit) | $ 22.32 | $ 22.32 | |||||||
Granted (in dollars per unit) | 29.12 | ||||||||
Forfeitures (in dollar per unit) | 25.48 | ||||||||
Vested (in dollars per unit) | 21.42 | ||||||||
Nonvested at the end of the period (in dollars per unit) | $ 25.85 | $ 25.85 | $ 22.32 | ||||||
Affiliate Grants | Performance Based Phantom units | |||||||||
Number of Units | |||||||||
Nonvested at the beginning of the period (in units) | 111,104 | 111,104 | |||||||
Granted (in units) | 159,353 | ||||||||
Adjusted (in units) | 19,832 | ||||||||
Forfeitures (in units) | (17,469) | ||||||||
Vested (in units) | (45,059) | ||||||||
Nonvested at the end of the period (in units) | 227,761 | 227,761 | 111,104 | ||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Nonvested at the beginning of the period (in dollars per unit) | $ 25.52 | $ 25.52 | |||||||
Granted (in dollars per unit) | 28.83 | ||||||||
Adjusted (in dollar per unit) | 18.19 | ||||||||
Forfeitures (in dollar per unit) | 25.76 | ||||||||
Vested (in dollars per unit) | 23.80 | ||||||||
Nonvested at the end of the period (in dollars per unit) | $ 27.52 | $ 27.52 | $ 25.52 | ||||||
Unpaid DER amounts | $ 1,000,000 | $ 1,000,000 | $ 900,000 | ||||||
Affiliate Grants | Performance Based Phantom units | Accrued liabilities | |||||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Unpaid DER amounts | 400,000 | 400,000 | 700,000 | ||||||
Affiliate Grants | Performance Based Phantom units | Other long-term liabilities | |||||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Unpaid DER amounts | $ 600,000 | $ 600,000 | $ 200,000 | ||||||
Director Grants | |||||||||
Number of Units | |||||||||
Nonvested at the beginning of the period (in units) | 15,840 | 15,840 | |||||||
Granted (in units) | 13,964 | ||||||||
Vested (in units) | (15,840) | ||||||||
Nonvested at the end of the period (in units) | 13,964 | 13,964 | 15,840 | ||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Nonvested at the beginning of the period (in dollars per unit) | $ 25.25 | $ 25.25 | |||||||
Granted (in dollars per unit) | 28.65 | ||||||||
Vested (in dollars per unit) | 25.25 | ||||||||
Nonvested at the end of the period (in dollars per unit) | $ 28.65 | $ 28.65 | $ 25.25 | ||||||
Director Grants | Phantom units | |||||||||
Number of Units | |||||||||
Nonvested at the beginning of the period (in units) | 15,840 | 15,840 | |||||||
Granted (in units) | 13,964 | ||||||||
Vested (in units) | (15,840) | ||||||||
Nonvested at the end of the period (in units) | 13,964 | 13,964 | 15,840 | ||||||
Weighted Average Grant Date Fair Value per Unit | |||||||||
Nonvested at the beginning of the period (in dollars per unit) | $ 25.25 | $ 25.25 | |||||||
Granted (in dollars per unit) | 28.65 | ||||||||
Vested (in dollars per unit) | 25.25 | ||||||||
Nonvested at the end of the period (in dollars per unit) | $ 28.65 | $ 28.65 | $ 25.25 | ||||||
Fair value of units granted | $ 400,000 | ||||||||
[1] | See Note 12, Related-Party Transactions |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes | |||||
Reserves for uncertain tax position | $ 0 | $ 0 | $ 0 | ||
Reserves for interest and penalties | $ 0 | ||||
Provision for income tax | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Pending litigation $ in Millions | Jun. 08, 2017USD ($) | Dec. 31, 2016item |
Commitments and Contingencies | ||
Number of cargo holds of vessel damaged | 1 | |
Total number of cargo holds of vessel | 5 | |
Value of claims submitted against Cottondale | $ | $ 11.8 |
Net Income (Loss) per Limited_3
Net Income (Loss) per Limited Partner Unit - Dilutive Units (Details) - Subordinated Units | 9 Months Ended | |
Sep. 30, 2018 | May 30, 2018shares | |
Number of outstanding subordinated units converted into common units (in units) | 11,905,138 | |
The ratio of outstanding subordinated units converted into common units (as a percent) | 100 | |
Potentially dilutive subordinated units outstanding | 0 |
Net Income (Loss) per Limited_4
Net Income (Loss) per Limited Partner Unit - Basic and Diluted Table (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Common Units | ||||
Weighted average number of units outstanding | ||||
Weighted-average common units outstanding - basic | 26,477 | 14,412 | 19,866 | 14,400 |
Effect of nonvested phantom units | 1,001 | 973 | 943 | |
Weighted-average common units outstanding —diluted | 27,478 | 15,385 | 19,866 | 15,343 |
Subordinated Units-Sponsor | ||||
Weighted average number of units outstanding | ||||
Weighted-average common units outstanding - basic | 11,905 | 6,541 | 11,905 | |
Weighted-average common units outstanding —diluted | 11,905 | 6,541 | 11,905 |
Net Income (Loss) per Limited_5
Net Income (Loss) per Limited Partner Unit - Net Income Per Unit Table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Income (Loss) per Limited Partner Unit | ||||
Net (loss) income attributable to partners | $ 13,356 | $ 5,688 | $ (2,435) | $ 9,655 |
Common Units | ||||
Net Income (Loss) per Limited Partner Unit | ||||
Distributions declared | 16,814 | 8,863 | 37,618 | 25,077 |
Earnings less than distributions | (4,990) | (5,974) | (42,607) | (19,345) |
Net (loss) income attributable to partners | $ 11,824 | $ 2,889 | $ (4,989) | $ 5,732 |
Weighted-average units outstanding - basic | 26,477 | 14,412 | 19,866 | 14,400 |
Weighted-average units outstanding - diluted | 27,478 | 15,385 | 19,866 | 15,343 |
Net (loss) income per limited partner unit - basic | $ 0.45 | $ 0.20 | $ (0.25) | $ 0.40 |
Net (loss) income per limited partner unit - diluted | $ 0.43 | $ 0.19 | $ (0.25) | $ 0.37 |
Subordinated Units-Sponsor | ||||
Net Income (Loss) per Limited Partner Unit | ||||
Distributions declared | $ 7,322 | $ 12,386 | $ 20,715 | |
Earnings less than distributions | (4,935) | (14,029) | (15,980) | |
Net (loss) income attributable to partners | $ 2,387 | $ (1,643) | $ 4,735 | |
Weighted-average units outstanding - basic | 11,905 | 6,541 | 11,905 | |
Weighted-average units outstanding - diluted | 11,905 | 6,541 | 11,905 | |
Net (loss) income per limited partner unit - basic | $ 0.20 | $ (0.25) | $ 0.40 | |
Net (loss) income per limited partner unit - diluted | $ 0.20 | $ (0.25) | $ 0.40 | |
General Partner | ||||
Net Income (Loss) per Limited Partner Unit | ||||
Distributions declared | $ 1,532 | $ 1,063 | $ 4,197 | $ 2,269 |
Net (loss) income attributable to partners | 1,532 | 1,063 | 4,197 | 2,269 |
Limited Partners | ||||
Net Income (Loss) per Limited Partner Unit | ||||
Distributions declared | 18,346 | 17,248 | 54,201 | 48,061 |
Earnings less than distributions | (4,990) | (10,909) | (56,636) | (35,325) |
Net (loss) income attributable to partners | $ 13,356 | $ 6,339 | $ (2,435) | $ 12,736 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information (Details) | Sep. 30, 2018USD ($) |
Supplemental Guarantor Information | |
Independent assets | $ 0 |
Independent operations | $ 0 |
Ownership interest in each of the subsidiary guarantors (as a percent) | 100.00% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 863 | $ 524 | $ 9,453 | $ 466 |
Accounts receivable, net | 49,152 | 79,185 | 49,855 | |
Related-party receivables | 5,535 | 5,412 | 8,716 | |
Inventories | 34,322 | 23,536 | 34,573 | |
Prepaid expenses and other current assets | 1,643 | 1,006 | 4,582 | |
Total current assets | 91,515 | 109,663 | 107,179 | |
Property, plant and equipment, net | 552,456 | 562,330 | 570,851 | |
Intangible assets, net | 109 | |||
Goodwill | 85,615 | 85,615 | 85,615 | |
Other long-term assets | 4,783 | 2,394 | 2,232 | |
Total assets | 734,369 | 760,111 | 765,877 | |
Current liabilities: | ||||
Accounts payable | 10,730 | 7,554 | 3,310 | |
Related-party payables and accrued liabilities | 30,289 | 26,398 | 19,333 | |
Accrued and other current liabilities | 35,849 | 29,363 | 49,549 | |
Current portion of interest payable | 12,573 | 5,029 | ||
Current portion of long-term debt and capital lease obligations | 7,070 | 6,186 | ||
Total current liabilities | 96,511 | 74,530 | 72,192 | |
Long-term debt and capital lease obligations | 402,447 | 394,831 | 338,302 | |
Related-party long-term payable | 74,000 | 74,000 | ||
Long-term interest payable | 980 | 890 | ||
Other long-term liabilities | 4,687 | 5,491 | 5,756 | |
Total liabilities | 578,625 | 549,742 | 416,250 | |
Partners’ capital: | ||||
Total Enviva Partners, LP partners' capital | 155,744 | 210,369 | 349,627 | |
Total liabilities and partners' capital | 734,369 | 760,111 | 765,877 | |
Eliminations | ||||
Current assets: | ||||
Related-party receivables | (9,431) | |||
Total current assets | (9,431) | |||
Total assets | (9,431) | |||
Current liabilities: | ||||
Related-party payables and accrued liabilities | (9,431) | |||
Total current liabilities | (9,431) | |||
Total liabilities | (9,431) | |||
Partners’ capital: | ||||
Total liabilities and partners' capital | (9,431) | |||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 786 | 524 | 9,436 | 362 |
Accounts receivable, net | 49,152 | 79,185 | ||
Related-party receivables | 10,355 | 5,412 | ||
Inventories | 34,322 | 23,536 | ||
Prepaid expenses and other current assets | 1,643 | 1,006 | ||
Total current assets | 96,258 | 109,663 | ||
Property, plant and equipment, net | 552,456 | 562,330 | ||
Intangible assets, net | 109 | |||
Goodwill | 85,615 | 85,615 | ||
Other long-term assets | 4,783 | 2,394 | ||
Total assets | 739,112 | 760,111 | ||
Current liabilities: | ||||
Accounts payable | 10,730 | 7,554 | ||
Related-party payables and accrued liabilities | 34,900 | 26,398 | ||
Accrued and other current liabilities | 35,849 | 29,363 | ||
Current portion of interest payable | 12,573 | 5,029 | ||
Current portion of long-term debt and capital lease obligations | 7,070 | 6,186 | ||
Total current liabilities | 101,122 | 74,530 | ||
Long-term debt and capital lease obligations | 402,447 | 394,831 | ||
Related-party long-term payable | 74,000 | 74,000 | ||
Long-term interest payable | 980 | 890 | ||
Other long-term liabilities | 4,687 | 5,491 | ||
Total liabilities | 583,236 | 549,742 | ||
Partners’ capital: | ||||
Total Enviva Partners, LP partners' capital | 155,876 | 210,369 | ||
Total liabilities and partners' capital | 739,112 | $ 760,111 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 77 | $ 17 | $ 104 | |
Related-party receivables | 4,611 | |||
Total current assets | 4,688 | |||
Total assets | 4,688 | |||
Current liabilities: | ||||
Related-party payables and accrued liabilities | 4,820 | |||
Total current liabilities | 4,820 | |||
Total liabilities | 4,820 | |||
Partners’ capital: | ||||
Total Enviva Partners, LP partners' capital | (132) | |||
Total liabilities and partners' capital | $ 4,688 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Condensed Consolidated Statement of Operations | |||||
Net revenue | $ 144,148 | $ 132,223 | $ 405,068 | $ 382,213 | |
Cost of goods sold | [1] | 103,695 | 100,897 | 330,456 | 296,786 |
Loss on disposal of assets | 656 | 1,237 | 900 | 3,242 | |
Depreciation and amortization | 9,678 | 9,707 | 28,800 | 29,104 | |
Total cost of goods sold | 114,029 | 111,841 | 360,156 | 329,132 | |
Gross margin | 30,119 | 20,382 | 44,912 | 53,081 | |
General and administrative expenses | [1] | 7,315 | 7,704 | 21,406 | 23,337 |
Income from operations | 22,804 | 12,678 | 23,506 | 29,744 | |
Other income (expense): | |||||
Interest expense | (9,445) | (7,653) | (27,137) | (23,070) | |
Other income (expense) | (3) | (2) | 1,196 | (199) | |
Total other expense, net | (9,448) | (7,655) | (25,941) | (23,269) | |
Net income (loss) | 13,356 | 5,023 | (2,435) | 6,475 | |
Less net loss attributable to noncontrolling partners’ interests | 665 | 3,180 | |||
Net income (loss) attributable to Enviva Partners, LP | 13,356 | 5,688 | (2,435) | 9,655 | |
Guarantor Subsidiaries | |||||
Condensed Consolidated Statement of Operations | |||||
Net revenue | 144,148 | 132,223 | 405,068 | 379,760 | |
Cost of goods sold | 103,695 | 101,102 | 330,456 | 294,542 | |
Loss on disposal of assets | 656 | 1,237 | 900 | 3,242 | |
Depreciation and amortization | 9,678 | 9,707 | 28,800 | 29,104 | |
Total cost of goods sold | 114,029 | 112,046 | 360,156 | 326,888 | |
Gross margin | 30,119 | 20,177 | 44,912 | 52,872 | |
General and administrative expenses | 7,287 | 7,493 | 21,358 | 21,666 | |
Income from operations | 22,832 | 12,684 | 23,554 | 31,206 | |
Other income (expense): | |||||
Interest expense | (9,445) | (7,653) | (27,137) | (23,070) | |
Other income (expense) | (12) | (2) | 1,281 | (199) | |
Total other expense, net | (9,457) | (7,655) | (25,856) | (23,269) | |
Net income (loss) | 13,375 | 5,029 | (2,302) | 7,937 | |
Less net loss attributable to noncontrolling partners’ interests | 660 | 3,139 | |||
Net income (loss) attributable to Enviva Partners, LP | 13,375 | 5,689 | (2,302) | 11,076 | |
Non-Guarantor Subsidiaries | |||||
Condensed Consolidated Statement of Operations | |||||
Net revenue | 2,453 | ||||
Cost of goods sold | (205) | 2,244 | |||
Total cost of goods sold | (205) | 2,244 | |||
Gross margin | 205 | 209 | |||
General and administrative expenses | 28 | 211 | 48 | 1,671 | |
Income from operations | (28) | (6) | (48) | (1,462) | |
Other income (expense): | |||||
Other income (expense) | 9 | (85) | |||
Total other expense, net | 9 | (85) | |||
Net income (loss) | (19) | (6) | (133) | (1,462) | |
Less net loss attributable to noncontrolling partners’ interests | 5 | 41 | |||
Net income (loss) attributable to Enviva Partners, LP | (19) | (1) | (133) | (1,421) | |
General Partner | |||||
Other income (expense): | |||||
Net income (loss) | 3,794 | ||||
Net income (loss) attributable to Enviva Partners, LP | 1,532 | 1,063 | 4,197 | 2,269 | |
Product sales | |||||
Condensed Consolidated Statement of Operations | |||||
Net revenue | 142,541 | 125,422 | 398,031 | 366,142 | |
Product sales | Guarantor Subsidiaries | |||||
Condensed Consolidated Statement of Operations | |||||
Net revenue | 142,541 | 125,422 | 398,031 | 363,689 | |
Product sales | Non-Guarantor Subsidiaries | |||||
Condensed Consolidated Statement of Operations | |||||
Net revenue | 2,453 | ||||
Other revenue | |||||
Condensed Consolidated Statement of Operations | |||||
Net revenue | [1] | 1,607 | 6,801 | 7,037 | 16,071 |
Other revenue | Guarantor Subsidiaries | |||||
Condensed Consolidated Statement of Operations | |||||
Net revenue | 1,607 | 6,801 | 7,037 | 16,071 | |
Enviva Port of Wilmington, LLC Drop-Down | General Partner | |||||
Other income (expense): | |||||
Net income (loss) attributable to Enviva Partners, LP | (651) | (3,081) | |||
Enviva Port of Wilmington, LLC Drop-Down | General Partner | Guarantor Subsidiaries | |||||
Other income (expense): | |||||
Net income (loss) attributable to Enviva Partners, LP | (651) | (3,081) | |||
Enviva Partners LP excluding Enviva Port of Wilmington, LLC Drop-Down | |||||
Other income (expense): | |||||
Net income (loss) attributable to Enviva Partners, LP | 13,356 | 6,339 | (2,435) | 12,736 | |
Enviva Partners LP excluding Enviva Port of Wilmington, LLC Drop-Down | Guarantor Subsidiaries | |||||
Other income (expense): | |||||
Net income (loss) attributable to Enviva Partners, LP | 13,375 | 6,340 | (2,302) | 14,157 | |
Enviva Partners LP excluding Enviva Port of Wilmington, LLC Drop-Down | Non-Guarantor Subsidiaries | |||||
Other income (expense): | |||||
Net income (loss) attributable to Enviva Partners, LP | $ (19) | $ (1) | $ (133) | $ (1,421) | |
[1] | See Note 12, Related-Party Transactions |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information - Condensed Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | $ 13,356 | $ 5,023 | $ (2,435) | $ 6,475 |
Other comprehensive income (loss): | ||||
Net unrealized gains (losses) on cash flow hedges | 2,713 | (1,788) | 5,750 | (4,641) |
Reclassification of net gains realized into net income (loss) | (2,013) | 55 | (2,076) | 161 |
Currency translation adjustment | 1 | 1 | ||
Total other comprehensive income | 701 | (1,733) | 3,675 | (4,480) |
Total comprehensive income | 14,057 | 3,290 | 1,240 | 1,995 |
Guarantor Subsidiaries | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | 13,375 | 5,029 | (2,302) | 7,937 |
Other comprehensive income (loss): | ||||
Net unrealized gains (losses) on cash flow hedges | 2,713 | (1,788) | 5,750 | (4,641) |
Reclassification of net gains realized into net income (loss) | (2,013) | 55 | (2,076) | 161 |
Total other comprehensive income | 700 | (1,733) | 3,674 | (4,480) |
Total comprehensive income | 14,075 | 3,296 | 1,372 | 3,457 |
Non-Guarantor Subsidiaries | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | (19) | (6) | (133) | (1,462) |
Other comprehensive income (loss): | ||||
Currency translation adjustment | 1 | 1 | ||
Total other comprehensive income | 1 | 1 | ||
Total comprehensive income | (18) | (6) | (132) | (1,462) |
General Partner | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | 3,794 | |||
General Partner | Enviva Port of Wilmington, LLC Drop-Down | ||||
Other comprehensive income (loss): | ||||
Total comprehensive income | (651) | (3,081) | ||
General Partner | Enviva Port of Wilmington, LLC Drop-Down | Guarantor Subsidiaries | ||||
Other comprehensive income (loss): | ||||
Total comprehensive income | (651) | (3,081) | ||
Enviva Partners LP excluding Enviva Port of Wilmington, LLC Drop-Down | ||||
Other comprehensive income (loss): | ||||
Total comprehensive income | 14,057 | 3,941 | 1,240 | 5,076 |
Comprehensive loss attributable to noncontrolling partners' interests | (665) | (3,180) | ||
Comprehensive income attributable to Enviva Partners, LP partners | 14,057 | 4,606 | 1,240 | 8,256 |
Enviva Partners LP excluding Enviva Port of Wilmington, LLC Drop-Down | Guarantor Subsidiaries | ||||
Other comprehensive income (loss): | ||||
Total comprehensive income | 14,075 | 3,947 | 1,372 | 6,538 |
Comprehensive loss attributable to noncontrolling partners' interests | (660) | (3,139) | ||
Comprehensive income attributable to Enviva Partners, LP partners | 14,075 | 4,607 | 1,372 | 9,677 |
Enviva Partners LP excluding Enviva Port of Wilmington, LLC Drop-Down | Non-Guarantor Subsidiaries | ||||
Other comprehensive income (loss): | ||||
Total comprehensive income | (18) | (6) | (132) | (1,462) |
Comprehensive loss attributable to noncontrolling partners' interests | (5) | (41) | ||
Comprehensive income attributable to Enviva Partners, LP partners | $ (18) | $ (1) | $ (132) | $ (1,421) |
Supplemental Guarantor Inform_7
Supplemental Guarantor Information - Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||||
Net (loss) income | $ 13,356 | $ 5,023 | $ (2,435) | $ 6,475 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation and amortization | 29,240 | 29,115 | ||
Amortization of debt issuance costs, debt premium and original issue discounts | 828 | 1,161 | ||
General and administrative expense incurred by the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down | 1,338 | |||
Loss on disposal of assets | 656 | 1,237 | 900 | 3,242 |
Unit-based compensation | 5,604 | 5,113 | ||
De-designation of foreign currency forwards and options | (1,947) | |||
Fair value changes in derivatives | (4,465) | (13) | ||
Unrealized loss on foreign currency transactions | 32 | |||
Change in operating assets and liabilities: | ||||
Accounts receivable, net | 30,004 | 28,026 | ||
Related-party receivables | (123) | (3,312) | ||
Prepaid expenses and other assets | (160) | 76 | ||
Assets held for sale | (310) | |||
Inventories | (9,735) | (4,433) | ||
Other long-term assets | 86 | |||
Derivatives | 5,080 | (1,442) | ||
Accounts payable, accrued liabilities and other current liabilities | 5,475 | (6,845) | ||
Related-party payables and accrued liabilities | 3,317 | 8,832 | ||
Accrued interest | 7,634 | 6,301 | ||
Other current liabilities | 234 | |||
Other long-term liabilities | 648 | 621 | ||
Net cash provided by operating activities | 70,131 | 74,031 | ||
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (16,034) | (21,916) | ||
Insurance proceeds from property loss | 1,130 | |||
Net cash used in investing activities | (14,904) | (21,916) | ||
Cash flows from financing activities: | ||||
Principal payments on debt and capital lease obligations | (4,745) | (3,428) | ||
Cash paid related to debt issuance costs | (209) | |||
Proceeds from common unit issuance under the At-the-Market Offering Program, net | 241 | 1,715 | ||
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder | (55,163) | (46,323) | ||
Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting | (2,341) | |||
Payment for withholding tax associated with Long-Term Incentive Plan vesting | (4,380) | |||
Proceeds and payments on revolving credit commitments, net | 11,500 | (6,500) | ||
Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down | 1,652 | |||
Proceeds from contributions from the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down | 9,965 | |||
Net cash used in financing activities | (54,888) | (43,128) | ||
Net increase in cash, cash equivalents and restricted cash | 339 | 8,987 | ||
Cash, cash equivalents and restricted cash, beginning of period | 524 | 466 | ||
Cash, cash equivalents and restricted cash, end of period | 863 | 9,453 | 863 | 9,453 |
Eliminations | ||||
Change in operating assets and liabilities: | ||||
Related-party receivables | 9,431 | |||
Related-party payables and accrued liabilities | (9,431) | |||
Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net (loss) income | 13,375 | 5,029 | (2,302) | 7,937 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation and amortization | 29,240 | 28,927 | ||
Amortization of debt issuance costs, debt premium and original issue discounts | 828 | 1,161 | ||
General and administrative expense incurred by the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down | 1,338 | |||
Loss on disposal of assets | 656 | 1,237 | 900 | 3,242 |
Unit-based compensation | 5,604 | 5,113 | ||
De-designation of foreign currency forwards and options | (1,947) | |||
Fair value changes in derivatives | (4,465) | (13) | ||
Unrealized loss on foreign currency transactions | 31 | |||
Change in operating assets and liabilities: | ||||
Accounts receivable, net | 30,004 | 28,026 | ||
Related-party receivables | (4,943) | (3,312) | ||
Prepaid expenses and other assets | (160) | 76 | ||
Inventories | (9,735) | (6,245) | ||
Other long-term assets | 86 | |||
Derivatives | 5,080 | (1,442) | ||
Accounts payable, accrued liabilities and other current liabilities | 5,475 | (6,845) | ||
Related-party payables and accrued liabilities | 7,928 | 9,147 | ||
Accrued interest | 7,634 | 6,301 | ||
Other current liabilities | 234 | |||
Other long-term liabilities | 648 | 621 | ||
Net cash provided by operating activities | 70,054 | 74,118 | ||
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (16,034) | (21,916) | ||
Insurance proceeds from property loss | 1,130 | |||
Net cash used in investing activities | (14,904) | (21,916) | ||
Cash flows from financing activities: | ||||
Principal payments on debt and capital lease obligations | (4,745) | (3,428) | ||
Cash paid related to debt issuance costs | (209) | |||
Proceeds from common unit issuance under the At-the-Market Offering Program, net | 241 | 1,715 | ||
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder | (55,163) | (46,323) | ||
Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting | (2,341) | |||
Payment for withholding tax associated with Long-Term Incentive Plan vesting | (4,380) | |||
Proceeds and payments on revolving credit commitments, net | 11,500 | (6,500) | ||
Contributions from sponsor related to Enviva Pellets Sampson, LLC Drop-Down | 1,652 | |||
Proceeds from contributions from the First Hancock JV prior to Enviva Port of Wilmington, LLC Drop-Down | 9,965 | |||
Net cash used in financing activities | (54,888) | (43,128) | ||
Net increase in cash, cash equivalents and restricted cash | 262 | 9,074 | ||
Cash, cash equivalents and restricted cash, beginning of period | 524 | 362 | ||
Cash, cash equivalents and restricted cash, end of period | 786 | 9,436 | 786 | 9,436 |
Non-Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net (loss) income | (19) | (6) | (133) | (1,462) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation and amortization | 188 | |||
Unrealized loss on foreign currency transactions | 1 | |||
Change in operating assets and liabilities: | ||||
Related-party receivables | (4,611) | |||
Assets held for sale | (310) | |||
Inventories | 1,812 | |||
Related-party payables and accrued liabilities | 4,820 | (315) | ||
Net cash provided by operating activities | 77 | (87) | ||
Cash flows from financing activities: | ||||
Net increase in cash, cash equivalents and restricted cash | 77 | (87) | ||
Cash, cash equivalents and restricted cash, beginning of period | 104 | |||
Cash, cash equivalents and restricted cash, end of period | $ 77 | $ 17 | $ 77 | $ 17 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Oct. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Subsequent Events | |||
Repayment of revolving credit commitments | $ 4,745 | $ 3,428 | |
Subsequent Event | |||
Subsequent Events | |||
Repayment of revolving credit commitments | $ 41,200 | ||
Senior Secured Credit Facilities | |||
Subsequent Events | |||
Maximum aggregate borrowing capacity | $ 100,000 | ||
Senior Secured Credit Facilities | Subsequent Event | |||
Subsequent Events | |||
Maximum aggregate borrowing capacity | $ 350,000 |