Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document And Entity Information Abstract | |||
Entity Registrant Name | Enviva Partners, LP | ||
Entity Central Index Key | 1,592,057 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Small Business | false | ||
Entity Public Float | $ 423.9 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 26,572,679 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 2,460 | $ 524 |
Accounts receivable | 54,794 | 79,185 |
Insurance receivables | 5,140 | 0 |
Related-party receivables | 1,392 | 5,412 |
Inventories | 31,490 | 23,536 |
Prepaid expenses and other current assets | 2,235 | 1,006 |
Total current assets | 97,511 | 109,663 |
Property, plant and equipment, net | 557,028 | 562,330 |
Goodwill | 85,615 | 85,615 |
Other long-term assets | 8,616 | 2,503 |
Total assets | 748,770 | 760,111 |
Current liabilities: | ||
Accounts payable | 15,551 | 7,554 |
Related-party payables | 28,225 | 26,398 |
Deferred consideration for Wilmington Drop-Down due to related-party | 74,000 | 0 |
Accrued and other current liabilities | 41,400 | 29,363 |
Current portion of interest payable | 5,434 | 5,029 |
Current portion of long-term debt and capital lease obligations | 2,722 | 6,186 |
Total current liabilities | 167,332 | 74,530 |
Long-term debt and capital lease obligations | 429,933 | 394,831 |
Deferred consideration for Wilmington Drop-Down due to related-party | 0 | 74,000 |
Long-term interest payable | 1,010 | 890 |
Other long-term liabilities | 3,779 | 5,491 |
Total liabilities | 602,054 | 549,742 |
Commitments and contingencies | ||
Limited partners: | ||
Common unitholders—public (14,573,452 and 13,073,439 units issued and outstanding at December 31, 2018 and December 31, 2017, respectively) | 207,612 | 224,027 |
Common unitholder—sponsor (11,905,138 and 1,347,161 units issued and outstanding at December 31, 2018 and December 31, 2017, respectively) | 72,352 | 16,050 |
Subordinated unitholder—sponsor ( no units issued and outstanding at December 31, 2018 and 11,905,138 units issued and outstanding at December 31, 2017) | 0 | 101,901 |
General partner (no outstanding units) | (133,687) | (128,569) |
Accumulated other comprehensive income (loss) | 439 | (3,040) |
Total Enviva Partners, LP partners’ capital | 146,716 | 210,369 |
Total liabilities and partners’ capital | $ 748,770 | $ 760,111 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 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 | ||
Limited partner units issued | 0 | 11,905,138 |
Limited partner units outstanding | 0 | 11,905,138 |
General Partner Interest | ||
General partner units outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net revenue | $ 573,741 | $ 543,221 | $ 464,276 | |
Cost of goods sold, excluding depreciation and amortization | [1] | 461,735 | 419,616 | 357,418 |
Loss on disposal of assets | 2,386 | 4,899 | 2,386 | |
Depreciation and amortization | 40,179 | 39,904 | 27,700 | |
Total cost of goods sold | 504,300 | 464,419 | 387,504 | |
Gross margin | 69,441 | 78,802 | 76,772 | |
General and administrative expenses | [1] | 27,641 | 30,107 | 33,098 |
Disposal and impairment of assets held for sale | 0 | 827 | 9,991 | |
Total general and administrative expenses | 27,641 | 30,934 | 43,089 | |
Income from operations | 41,800 | 47,868 | 33,683 | |
Other income (expense): | ||||
Interest expense | (36,471) | (31,744) | (15,643) | |
Related-party interest expense | 0 | 0 | (578) | |
Early retirement of debt obligation | (751) | 0 | (4,438) | |
Other income (expense) | 2,374 | (1,751) | 439 | |
Total other expense, net | (34,848) | (33,495) | (20,220) | |
Net income | 6,952 | 14,373 | 13,463 | |
Less net loss attributable to noncontrolling partners’ interests | 0 | 3,140 | 5,804 | |
Net income attributable to partners | $ 6,952 | $ 17,513 | $ 19,267 | |
Net income per limited partner common unit: | ||||
Common - basic (in dollars per unit) | $ 0.04 | $ 0.65 | $ 0.95 | |
Common - diluted (in dollars per unit) | 0.04 | 0.61 | 0.91 | |
Net income per limited partner subordinated unit: | ||||
Subordinated - basic (in dollars per unit) | 0.04 | 0.65 | 0.93 | |
Subordinated - diluted (in dollars per unit) | $ 0.04 | $ 0.65 | $ 0.93 | |
Weighted-average number of limited partner units outstanding: | ||||
Common - basic (in units) | 21,533 | 14,403 | 13,002 | |
Common - diluted (in units) | 22,553 | 15,351 | 13,559 | |
Subordinated - basic and diluted (in units) | 4,893 | 11,905 | 11,905 | |
General Partner Interest | ||||
Other income (expense): | ||||
Net income | $ 5,326 | $ (418) | $ (4,625) | |
Limited Partners’ Capital | ||||
Other income (expense): | ||||
Net income attributable to partners | 6,952 | 20,562 | 24,608 | |
Sampson, LLC Drop-Down | ||||
Other income (expense): | ||||
Net income | (3,300) | |||
Sampson, LLC Drop-Down | General Partner Interest | ||||
Other income (expense): | ||||
Net income attributable to partners | 0 | 0 | (3,231) | |
Wilmington, LLC Drop-Down | ||||
Other income (expense): | ||||
Net income | (3,100) | (2,200) | ||
Wilmington, LLC Drop-Down | General Partner Interest | ||||
Other income (expense): | ||||
Net income attributable to partners | 0 | (3,049) | (2,110) | |
Product sales | ||||
Net revenue | 564,010 | 522,250 | 444,489 | |
Cost of goods sold, excluding depreciation and amortization | 504,300 | |||
Gross margin | 69,441 | |||
Other revenue | ||||
Net revenue | [1] | $ 9,731 | $ 20,971 | $ 19,787 |
[1] | See Note 13, Related-Party Transactions |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 6,952 | $ 14,373 | $ 13,463 |
Other comprehensive income (loss): | |||
Net unrealized gains (losses) on cash flow hedges | 5,655 | (5,463) | (246) |
Reclassification of net (gains) losses on cash flow hedges realized into net income | (2,178) | 1,828 | 0 |
Currency translation adjustment | 2 | 0 | 0 |
Total other comprehensive income (loss) | 3,479 | (3,635) | (246) |
Total comprehensive income | 10,431 | 10,738 | 13,217 |
Comprehensive loss attributable to noncontrolling partners’ interests | 0 | 3,140 | 5,804 |
Comprehensive income attributable to Enviva Partners, LP partners | 10,431 | 16,927 | 24,362 |
Sampson, LLC Drop-Down | |||
Net income | (3,300) | ||
Wilmington, LLC Drop-Down | |||
Net income | (3,100) | (2,200) | |
General Partner Interest | |||
Net income | 5,326 | (418) | (4,625) |
Other comprehensive income (loss): | |||
Total comprehensive income | 10,431 | 13,787 | 18,558 |
General Partner Interest | Sampson, LLC Drop-Down | |||
Other comprehensive income (loss): | |||
Total comprehensive income | 0 | 0 | 3,231 |
General Partner Interest | Wilmington, LLC Drop-Down | |||
Other comprehensive income (loss): | |||
Total comprehensive income | $ 0 | $ 3,049 | $ 2,110 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Enviva Pellets Sampson, LLC | Enviva Port of Wilmington, LLC | Accumulated Other Comprehensive Income (loss) | General Partner Interest | General Partner InterestEnviva Pellets Sampson, LLC | General Partner InterestEnviva Port of Wilmington, LLC | Common Units— Public | Common Units— Sponsor | Subordinated Units— Sponsor | Non- controlling Interests | Non- controlling InterestsEnviva Pellets Sampson, LLC | Non- controlling InterestsEnviva Port of Wilmington, LLC |
Balance at the beginning of the period at Dec. 31, 2015 | $ 421,670 | $ 0 | $ 3,644 | $ 210,488 | $ 19,619 | $ 133,427 | $ 54,492 | ||||||
Balance at the beginning of the period (in units) at Dec. 31, 2015 | 11,503,000 | 1,347,000 | 11,905,000 | ||||||||||
Changes in Partners’ Capital | |||||||||||||
Cash Distributions | (52,331) | (716) | $ (24,779) | $ (2,729) | $ (24,107) | ||||||||
Issuance of units associated with Enviva Pellets Sampson, LLC Drop-Down | 30,000 | $ 30,000 | |||||||||||
Issuance of units associated with Enviva Pellets Sampson, LLC Drop-Down (in units) | 1,098,000 | ||||||||||||
Issuance of units through Long-Term Incentive Plan | 411 | $ 411 | |||||||||||
Issuance of units through Long-Term Incentive Plan (in units) | 21,000 | ||||||||||||
Issuance of common units, net | 8,929 | $ 8,929 | |||||||||||
Issuance of common units, net (in units) | 359,000 | ||||||||||||
Non-cash Management Services Agreement expenses | 3,820 | $ 3,820 | |||||||||||
Contributions | $ 61,632 | $ 45,712 | $ 95,391 | $ 22,632 | $ (33,759) | $ 23,080 | |||||||
Other comprehensive income | 595 | 595 | |||||||||||
Other comprehensive income | (246) | ||||||||||||
Distribution to sponsor | (138,505) | (138,505) | |||||||||||
Excess consideration over net assets | (18,534) | (18,534) | |||||||||||
Net income | 13,463 | (4,625) | 11,033 | 1,307 | 11,552 | (5,804) | |||||||
Balance at the end of the period at Dec. 31, 2016 | 376,862 | 595 | (40,713) | $ 239,902 | $ 18,197 | $ 120,872 | 38,009 | ||||||
Balance at the end of the period (in units) at Dec. 31, 2016 | 12,981,000 | 1,347,000 | 11,905,000 | ||||||||||
Changes in Partners’ Capital | |||||||||||||
Issuance of units associated with Enviva Pellets Sampson, LLC Drop-Down | (73,335) | (73,335) | |||||||||||
Issuance of units through Long-Term Incentive Plan | 503 | $ 503 | |||||||||||
Issuance of units through Long-Term Incentive Plan (in units) | 21,000 | ||||||||||||
Issuance of common units, net | 1,744 | $ 1,744 | |||||||||||
Issuance of common units, net (in units) | 71,000 | ||||||||||||
Distributions to unitholders, distribution equivalent and incentive distribution rights | (64,312) | (2,630) | $ (31,533) | $ (3,065) | $ (27,084) | ||||||||
Non-cash Management Services Agreement expenses | 4,952 | 441 | 4,511 | ||||||||||
Other comprehensive income | (3,635) | (3,635) | |||||||||||
Excess consideration over net assets | $ (744) | (40,683) | $ (744) | (40,683) | |||||||||
Contribution of Enviva Port of Wilmington, LLC Drop-Down | $ (2,757) | $ 29,513 | $ (32,270) | ||||||||||
Dissolution | (2,599) | (2,599) | |||||||||||
Net income | 14,373 | (418) | 8,900 | 918 | 8,113 | (3,140) | |||||||
Balance at the end of the period at Dec. 31, 2017 | 210,369 | (3,040) | (128,569) | $ 224,027 | $ 16,050 | $ 101,901 | 0 | ||||||
Balance at the end of the period (in units) at Dec. 31, 2017 | 13,073,439 | 1,347,161 | 11,905,138 | ||||||||||
Changes in Partners’ Capital | |||||||||||||
Issuance of units through Long-Term Incentive Plan | (6,465) | $ 511 | $ (1,301) | ||||||||||
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) | |||||||||||
Distributions to unitholders, distribution equivalent and incentive distribution rights | (74,234) | $ (5,326) | $ (38,241) | $ (15,845) | $ (14,822) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | (5,675,000) | ||||||||||||
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 expenses | 6,374 | $ 557 | 5,817 | ||||||||||
Other comprehensive income | 3,479 | 3,479 | |||||||||||
Net income | 6,952 | 5,326 | 1,922 | $ 8,279 | $ (8,575) | 0 | |||||||
Balance at the end of the period at Dec. 31, 2018 | $ 146,716 | $ 439 | $ (133,687) | $ 207,612 | $ 72,352 | $ 0 | $ 0 | ||||||
Balance at the end of the period (in units) at Dec. 31, 2018 | 14,573,452 | 11,905,138 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 6,952 | $ 14,373 | $ 13,463 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 40,745 | 40,361 | 27,735 |
Amortization of debt issuance costs, debt premium and original issue discounts | 1,093 | 1,448 | 1,893 |
Impairment of assets held for sale and inventory | 0 | 0 | 10,881 |
General and administrative expense incurred by the First Hancock JV prior to Enviva Port of Wilmington, LLC and Enviva Pellets Sampson, LLC Drop-Downs | 0 | 1,343 | 4,087 |
Early retirement of debt obligation | 751 | 0 | 4,438 |
Loss on disposal of assets and assets held for sale | 2,386 | 5,726 | 2,386 |
Unit-based compensation | 6,229 | 5,014 | 4,230 |
De-designation of foreign currency forwards and options | (1,947) | 1,593 | 0 |
Unrealized loss on foreign currency transactions | 23 | (3) | 0 |
Fair value changes in derivatives | (7,464) | 0 | 0 |
Change in operating assets and liabilities: | |||
Accounts receivable, net | 19,230 | (1,317) | (39,218) |
Related-party receivables | 2,720 | 1,577 | 237 |
Prepaid expenses, assets held for sale and other current and long-term assets | (182) | (138) | 7,466 |
Inventories | (7,843) | 5,758 | (8,411) |
Derivatives | 4,907 | (1,720) | (1,284) |
Accounts payable, accrued liabilities and other current liabilities | 14,916 | (2,331) | 19,379 |
Related-party payables | 173 | 15,733 | 3,625 |
Accrued interest | 367 | (1,330) | 4,433 |
Other long-term liabilities | 997 | 1,008 | 464 |
Net cash provided by operating activities | 84,053 | 87,095 | 55,804 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (27,132) | (28,744) | (112,887) |
Insurance proceeds from property loss | 1,130 | 0 | 0 |
Proceeds from the sale of property, plant and equipment | 0 | 143 | 1,763 |
Net cash used in investing activities | (26,002) | (28,601) | (111,124) |
Cash flows from financing activities: | |||
Principal payments on debt and capital lease obligations | (272,716) | (82,954) | (204,216) |
Principal payments on related-party debt | 0 | 0 | (3,391) |
Cash paid related to debt issuance costs and deferred offering costs | (2,495) | (735) | (7,099) |
Distributions, proceeds from contributions and contributions associated with Enviva Pellets Sampson, LLC and Enviva Port of Wilmington, LLC Drop-Downs from the sponsor and First Hancock JV | 0 | (44,312) | (39,060) |
Proceeds from common unit issuance under the At-the-Market Offering Program, net | 241 | 1,938 | 9,300 |
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder | (73,518) | (64,325) | (51,376) |
Proceeds from debt issuance | 299,250 | 131,952 | 349,500 |
Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting | (2,341) | 0 | 0 |
Payment for withholding tax associated with Long-Term Incentive Plan vesting | (4,536) | 0 | 0 |
Net cash (used in) provided by financing activities | (56,115) | (58,436) | 53,658 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,936 | 58 | (1,662) |
Cash, cash equivalents and restricted cash, beginning of period | 524 | 466 | 2,128 |
Cash, cash equivalents and restricted cash, end of period | 2,460 | 524 | 466 |
Non-cash investing and financing activities: | |||
Property, plant and equipment acquired included in accounts payable and accrued liabilities | 8,939 | 2,653 | 14,255 |
Property, plant and equipment acquired under capital leases | 3,512 | 1,956 | 1,753 |
Property, plant and equipment transferred from inventories | 2 | 226 | 926 |
Property, plant and equipment capitalized interest | 158 | 0 | 0 |
Transfer of Enviva Pellets Wiggins, LLC assets to assets held for sale | 0 | 0 | 13,035 |
Related-party long-term debt transferred to third-party long-term debt | 0 | 0 | 14,757 |
Third-party long-term debt transferred to related-party long-term debt | 0 | 0 | 3,316 |
Deferred consideration to sponsor included in related-party payable | 0 | 74,000 | 0 |
Retained matters from the First Hancock JV included in related-party receivables | 0 | 585 | 0 |
Distributions included in liabilities | 1,659 | 741 | 955 |
Conversion of subordinated units to common units | 78,504 | 0 | 0 |
Application of short-term deposit to fixed assets | 0 | 258 | 0 |
Transfer of Enviva Port of Wilmington, LLC Drop-Down consideration to short-term | 74,000 | 0 | 0 |
Debt issuance costs included in accrued liabilities | 103 | 0 | 139 |
Depreciation capitalized to inventories | 567 | (427) | 344 |
Due from the First Hancock JV for Enviva Pellets Sampson, LLC Drop-Down | 0 | 0 | 1,652 |
Non-cash capital contributions from the First Hancock JV prior to Enviva Pellets Sampson, LLC and Enviva Port of Wilmington, LLC Drop-Downs | 0 | 0 | 8,623 |
Supplemental information: | |||
Interest paid | $ 35,222 | $ 31,513 | $ 11,191 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Enviva Partners, LP (together with its subsidiaries, “we,” “us,” “our,” or the “Partnership”) is a Delaware limited partnership formed on November 12, 2013 as a wholly owned subsidiary of Enviva Holdings, LP (together with its wholly owned subsidiaries Enviva MLP Holdco, LLC and Enviva Development Holdings, LLC, where applicable, the “sponsor”). Enviva Partners GP, LLC, a wholly owned subsidiary of Enviva Holdings, LP, is the General Partner (the “General Partner”) of the Partnership. 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 primarily to our principally European customers under long-term, take-or-pay contracts. 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 deep-water marine terminals 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 Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Our consolidated financial statements include all accounts of the Partnership and its wholly owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated. We operate and manage our business as one operating segment. Reclassification Prior period amounts related to intangible assets as of December 31, 2017 have been reclassified to other long-term assets on the consolidated balance sheets to conform to current period presentation. Enviva Pellets Sampson, LLC In December 2016, we acquired from Enviva Wilmington Holdings, LLC (the “First Hancock JV”), a joint venture between the sponsor and John Hancock Life Insurance Company (U.S.A.) and certain of its affiliates (“John Hancock”), all of the issued and outstanding limited liability company interests in Enviva Pellets Sampson, LLC (“Sampson”), which owns a wood pellet production plant in Sampson County, North Carolina (the “Sampson plant”). The $175.0 million purchase price for Sampson included the payment of $139.6 million in cash, net of a purchase price adjustment of $5.4 million , to the First Hancock JV, the issuance of 1,098,415 unregistered common units at a value of $27.31 per unit, or $30.0 million of common units, to affiliates of John Hancock, and the elimination of $1.2 million of net related-party receivables and payables included in the net assets on the date of acquisition. The acquisition (the “Sampson Drop-Down”) included the Sampson plant, an approximate 10 -year, 420,000 MTPY take-or-pay off-take contract with Ørsted Bioenergy & Thermal Power A/S (formerly “DONG Energy Thermal Power A/S”), an approximate 15 -year, 95,000 metric tons per year (“MTPY”) off-take contract with the First Hancock JV and related third-party shipping contracts. We accounted for the Sampson Drop-Down as a combination of entities under common control at historical cost in a manner similar to a pooling of interests. Accordingly, the consolidated financial statements for the periods prior to December 14, 2016 were retrospectively recast to reflect the Sampson Drop-Down as if it had occurred on May 15, 2013, the date Sampson was originally organized. Enviva Port of Wilmington, LLC In October 2017, we acquired from the First Hancock JV all of the issued and outstanding limited liability company interests in Enviva Port of Wilmington, LLC (“Wilmington”), which owns the Wilmington terminal assets (the “Wilmington terminal”). The $130.0 million purchase price for Wilmington 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 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 the sponsor and John Hancock and certain of its affiliates. Greenwood owns a wood pellet production plant in Greenwood, South Carolina (the “Greenwood plant”). See Note 13, 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 consolidated financial statements for the periods prior to October 2, 2017, were retrospectively recast to reflect the acquisition of the First Hancock JV’s interests in Wilmington as if it had occurred on May 15, 2013, the date Wilmington was originally organized. Enviva Pellets Wiggins, LLC Prior to December 2017, we held a controlling interest in Enviva Pellets Wiggins, LLC (“Wiggins”), which owned a wood pellet plant in Stone County, Mississippi (the “Wiggins plant”). In December 2017, we sold the Wiggins plant and Wiggins was dissolved. See Note 11, Assets Held for Sale and Dissolution. Subsidiaries As of December 31, 2018 , the Partnership has 100% ownership of the following: • Enviva Partners Finance Corp. (“Enviva Finance Corp.”), a wholly owned subsidiary of the Partnership formed on October 3, 2016 for the purpose of being a co-issuer of some of the Partnership’s indebtedness • Enviva GP, LLC The Partnership has 99.999% ownership of Enviva, LP Enviva GP, LLC has 0.001% ownership of Enviva, LP Enviva, LP has 100% ownership of the following: • Enviva Pellets Amory, LLC (“Amory”) • Enviva Pellets Ahoskie, LLC • Enviva Port of Chesapeake, LLC • Enviva Pellets Northampton, LLC • Enviva Pellets Southampton, LLC (“Southampton”) • Enviva Pellets Cottondale, LLC (“Cottondale”) • Enviva Energy Services, LLC • Enviva Pellets Sampson, LLC (“Sampson”) • Enviva Port of Wilmington, LLC (“Wilmington”) • Enviva Port of Panama City, LLC • Enviva MLP International Holdings, LLC Enviva, LP has 99.99% ownership of the following: • Enviva Energy Services Coöperatief, U.A. Enviva MLP International Holdings has 100% ownership of the following: • Enviva Energy Services (Jersey), Limited Enviva MLP International Holdings has 0.01% ownership of the following: • Enviva Energy Services Coöperatief, U.A. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies 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 consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Common Control Transactions Assets and businesses acquired from our sponsor and its controlled subsidiaries are accounted for as common control transactions whereby the net assets acquired are combined at their historical costs and our consolidated financial statements are adjusted retrospectively to reflect the transaction as if it had occurred on the earliest date during which the entities were under common control. If any recognized consideration transferred in such a transaction exceeds the carrying value of the net assets acquired, the excess is treated as a capital distribution to the General Partner. If the carrying value of the net assets acquired exceeds any recognized consideration transferred including, if applicable, the fair value of any limited partner units issued, then that excess is treated as a capital contribution from the General Partner. To the extent that such transactions require prior periods to be recast, historical net equity amounts prior to the transaction date are attributed to the General Partner and any noncontrolling partner interest at the historical amount. 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 under GAAP are included in comprehensive income (loss) but excluded from net income (loss). Other comprehensive income consists of net unrealized gains and losses related to derivative instruments accounted for as cash flow hedges and foreign currency translation adjustments. Cash and Cash Equivalents Cash and cash equivalents consist of short-term, highly liquid investments readily convertible into cash with an original maturity of three months or less. Accounts Receivable Accounts receivable represent amounts billed and billable under our contracts and are recorded at the invoiced amount and do not bear interest. As of December 31, 2018 and 2017, we had no amounts in allowance for doubtful accounts given the lack of historical losses. Inventories Inventories consist of raw materials, work-in-progress, consumable tooling and finished goods. Fixed production overhead, including related depreciation expense, is allocated to inventory based on the normal production capacity of the facilities. To the extent we do not achieve normal production levels, we charge such under-absorption of fixed overhead to cost of goods sold in the period incurred. Consumable tooling consists of spare parts and tooling to be consumed in the production process. Spare parts are expected to be used within a year and are expensed as used. Tooling items are amortized to expense over an estimated service life generally less than one year. Inventories are stated at the lower of cost or market using the first-in, first-out method (“FIFO”) for all inventories, which requires the use of judgment and estimates. 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. 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, are 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 recognize revenue on a gross basis in product sales when we determine that we act as a principal by having control of the wood pellets before they are transferred to the customer. Indicators of control have included being primarily responsible for fulfilling the promise to provide the wood pellets (such as by contracting to sell wood pellets before contracting to buy them), having inventory risk, or having discretion in establishing the sales price for the wood pellets. The decision as to whether to recognize revenue on a gross or net basis requires significant judgment. 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 in satisfaction of the related performance obligation. 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 services above the minimum are generally billed based on a per-ton rate as variable consideration and recognized as services performed. Any deficiency payments receivable and probable of being collected from a customer not meeting quarterly minimum throughput requirements are recognized during the related quarter in satisfaction of the related performance obligation. 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 that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. 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. Distribution costs associated with shipping wood pellets to customers and amortization of favorable acquired customer contracts are expensed as incurred. 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. Derivative Instruments Derivative instruments are classified as either assets or liabilities on a gross basis and carried at fair value and included in prepaid expenses and other current assets, other long-term assets, accrued and other current liabilities, and other long-term liabilities on the consolidated balance sheets. Changes in fair value are either recognized as unrealized gains and losses in accumulated other comprehensive income in partners’ capital or earnings depending on the nature of the underlying exposure, whether the derivative is formally designated as a hedge, and, if designated, the extent to which the hedge is effective. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. As of December 31, 2018, we only apply hedge accounting treatment to interest rate swaps. The effective portion of foreign currency forward and option contracts designated as cash flow hedges was reported as a component of accumulated other comprehensive income in partners’ capital and reclassified into revenue in the same period or periods during which the hedged revenue affected earnings. During August 2018, we discontinued hedge accounting for all designated foreign currency cash flow hedges. The effective portion of interest rate swaps designated as cash flow hedges is reported as a component of accumulated other comprehensive income in partners’ capital and reclassified into interest expense in the same period or periods during which the hedged interest expense affects earnings. The ineffective portion of cash flow hedges, if any, is recognized in earnings in the current period. We link derivative instruments that are designated as cash flow hedges to specific assets and liabilities on the consolidated balance sheets or to specific forecasted transactions. We link interest rate swap derivative instruments designated as a hedge using the first payment technique to link the forecasted transaction which is the first LIBOR-based payments on any borrowing. To qualify for hedge accounting, the item to be hedged must cause an exposure risk and we must have an expectation that the related hedging instrument will be effective at reducing or mitigating that exposure. In accordance with the hedging requirements, we document all hedging relationships at inception and include a description of the risk management objective and strategy for undertaking the hedge, identification of the hedging instrument, the hedged item, the nature of the risk being hedged, the method for assessing effectiveness of the hedging instrument in offsetting the hedged risk and the method of measuring any ineffectiveness. When an event or transaction occurs or the derivative contract expires or the forecasted transaction is no longer probable of occurring, hedge accounting is discontinued. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments are highly effective in offsetting changes in cash flows of hedged items. If it is determined that a derivative instrument has ceased to be a highly effective hedge, hedge accounting is discontinued prospectively. Hedge effectiveness for foreign exchange forward contracts designated as cash flow hedges is assessed by comparing the change in the fair value of the hedge contract with the change in the fair value of the forecasted cash flows of the hedged item. For foreign exchange option contracts, hedge effectiveness is assessed based on the hedging instrument’s entire change in fair value. Hedge effectiveness for interest rate swaps is assessed by comparing the change in fair value of the swap with the change in the fair value of the hedged item due to changes in the benchmark interest rate. Derivative instruments that do not qualify, or no longer qualify, as hedges are adjusted to fair value through earnings in the current period. Property, Plant and Equipment Property, plant and equipment are recorded at cost, which includes the fair values of assets acquired. Equipment under capital leases is stated at the present value of minimum lease payments. Useful lives of assets are based on historical experience and other relevant information. The useful lives of assets are adjusted when changes in the expected physical life of the asset, its planned use, technological advances, or other factors show that a different life would be more appropriate. Changes in useful lives are recognized prospectively. Depreciation is calculated using the straight-line method based on the estimated useful lives of the related assets. Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Construction in progress primarily represents expenditures for the development and expansion of facilities. Capitalized interest cost and all direct costs, which include equipment and engineering costs related to the development and expansion of facilities, are capitalized as construction in progress. Depreciation is not recognized for amounts in construction in progress. Normal repairs and maintenance costs are expensed as incurred. Amounts incurred that extend an asset’s useful life, increase its productivity or add production capacity are capitalized. Direct costs, such as outside labor, materials, internal payroll and benefit costs, incurred during the construction of a new plant are capitalized; indirect costs are not capitalized. The principal useful lives are as follows: Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years Costs and accumulated depreciation applicable to assets retired or sold are removed from the accounts, and any resulting gain or loss is included in the consolidated statements of income. Long-lived assets, such as property, plant and equipment and amortizable intangible assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset asset may not be recoverable. There were no such indicators or tests performed during the years ended December 31, 2018 and 2017. Debt Issuance Costs and Original Issue Discounts and Premiums Debt issuance costs and original issue discounts and premiums incurred with debt financing are capitalized and amortized over the life of the debt using the straight-line method, which approximates the effective interest method. Amortization expense is included in interest expense. If a debt instrument is retired before its scheduled maturity date, any related unamortized debt issuance costs and original issue discounts are written-off as gain or loss on debt extinguishment in the same period. Unamortized debt issuance costs and original issue discounts related to a recognized debt liability are recognized as a direct deduction from the carrying amount of the related long-term debt. Unamortized debt issuance costs related to our revolving credit commitments are recognized as an asset. Goodwill Goodwill represents the purchase price paid for acquired businesses in excess of the identifiable acquired assets and assumed liabilities. Goodwill is not amortized, but is tested for impairment annually and whenever an event occurs or circumstances change such that it is more likely than not that the fair value of the reporting unit is less than its carrying amounts. At December 31, 2018 and 2017 , we identified the Partnership as having one reporting unit that corresponded to our one reportable segment. We have selected December 1 to perform our annual goodwill impairment test. For the years ended December 31, 2018 and 2017 , we performed a qualitative assessment and determined it was more likely than not that the estimated fair value of the reporting unit substantially exceeded the related carrying value of our reporting unit. Accordingly, we were not required to perform any quantitative or additional testing. We did not record any goodwill impairment for the years ended December 31, 2018 and 2017 (see Note 10, Goodwill and Other Intangible Assets ). Unit-Based Compensation Employees, consultants and directors of the General Partner and any of its affiliates are eligible to receive equity awards and other forms of compensation under the Enviva Partners, LP Long-Term Incentive Plan (the “LTIP”). Phantom units issued in tandem with corresponding distribution equivalent rights (“DERs”) are granted to employees of Enviva Management Company, LLC (“Enviva Management”), a wholly owned subsidiary of the sponsor, who provide services to us and to certain non-employee directors of the General Partner. Phantom unit awards vest subject to the satisfaction of service requirements and/or the achievement of certain performance goals following which common units in the Partnership will be delivered to the holder of the phantom units. For accounting purposes, units granted to employees of our affiliates (excluding the General Partner, the Partnership, and subsidiaries of the Partnership) are treated as if they were distributed by the Partnership. Such affiliates recognize compensation expense for the phantom units awarded to their employees, a portion of which is allocated to us under the MSA (see Note 13, Related-Party Transactions-Management Services Agreement and Note 16, Equity-Based Awards ). We also recognize compensation expense for phantom units awarded to non-employee directors. Our outstanding phantom unit awards under the LTIP do not have a cash option and are classified as equity on our balance sheets. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Fair Value Measurements We apply authoritative accounting guidance for fair value measurements of financial and nonfinancial assets and liabilities. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We determine fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted, quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“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 Accounting Standard Codification (“ASC”) Topic ASC 606, revenue derived from our off-take contracts will continue to be classified as product sales. Revenue is recognized when control of the wood pellets passes to the customer which occurs 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 product sales when we determine that we act as a principal and control the wood pellets before they are transferred to the customer. 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. Other revenue includes fees associated with customer requests to cancel, defer or accelerate shipments in satisfaction of the related performance obligation and third- and related-party terminal services fees. 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: Year Ended December 31, 2018 As Reported Adoption of ASC 606 Without Adoption of ASC 606 Product sales $ 564,010 $ (23,159 ) $ 540,851 Other revenue 9,731 1,723 11,454 Cost of goods sold 504,300 (21,436 ) 482,864 Gross margin $ 69,441 $ — $ 69,441 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 two of the current goodwill impairment test. Step two 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 early adopted this ASU in connection with our December 2018 annual impairment test. Recently Issued Accounting Standards not yet Adopted In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (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. For example, ineffectiveness related to designated and qualifying cash flow hedges no longer needs to be measured so it would be recorded to accumulated other comprehensive income, as opposed to being recorded to earnings under the previous guidance. 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 adopting the standard on January 1, 2019. We do not expect the adoption of ASU 2017-12 will have a material impact on our consolidated financial statements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which established a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term of longer than 12 months. Leases will be classified as either finance or operating leases, with affects the pattern and classification of expense recognition in the income statement. We are adopting this new standard on January 1, 2019. A modified retrospective transition approach was required, whereby the new standard is to be applied to all leases existing at the date of initial application. We elected to use the effective date as its date of initial application, as opposed to the beginning of the earliest comparative period presented in the financial statements. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The standard will have a material impact on our consolidated balance sheets, but will not have a material impact on our consolidated income statements. The new standard provided a number of optional practical expedients in transition. We elected the “package of practical expedients,” which permitted us not to reassess our prior conclusions under the previous guidance concerning lease identification, lease classification and initial direct leasing costs. We elected the practical expedient pertaining to land easements. We did not elect the practical expedient pertaining to the use of hindsight. The most significant impact will be the recognition of ROU assets and corresponding lease liabilities related to real estate, machinery, equipment and other operating leases, while our accounting for capital leases will remain substantially unchanged. On adoption, we currently expect to recognize additional ROU assets in the range of $27.0 million to $35.0 million and additional corresponding operating liabilities in the range of $29.0 million to $37.0 million . These amounts are based on the present value of the remaining minimum rental payments under previous leasing standards for existing operating leases, except the ROU asset is less to reflect approximately $2.0 million of deferred rent assets already recorded as of December 31, 2018. We do not expect a significant change to our activities, results of operations, or cash flows from the new standard. We are currently finalizing our analysis of the inventory of leases and the schedule of the remaining minimum rental payments as of the adoption date of the incremental borrowing rates as of the adoption date applied to the operating leases, the implementation of the lease accounting system, the controls executed for adoption, and of the design and implementation of controls to be applied after the adoption. On June 20, 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , aligning the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date, which would reduce volatility in our general and administrative expense by no longer having to remeasure the fair value of phantom unit awards under the LTIP to employees of the Provider. Entities will apply the new guidance to equity-classified nonemployee awards for which a measurement date has not been established and liability-classified nonemployee awards that have not been settled as of the date of adoption by recognizing a cumulative-effect adjustment to retained earnings as of the beginning of the annual period of adoption. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are adopting ASU 2018-07 on January 1, 2019. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Variable Consideration Variable consideration from off-take contracts arises from several pricing features 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 year December 31, 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 year ended December 31, 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 December 31, 2018 and December 31, 2017 were $51.3 million and $78.0 million , respectively. Of these amounts, $46.0 million and $56.3 million , as of December 31, 2018 and 2017 respectively, related to amounts that were not yet billable under our contracts with customers pending finalization of prerequisite billing documentation. The amounts that have not been billed are expected to be billed within two months. As of December 31, 2018 , we had $0.3 million of short-term deferred revenue for a service related performance obligation to be satisfied in the first quarter of 2019 and no deferred revenue as of December 31, 2017 for future performance obligations under contracts with our customers. Performance Obligations As of December 31, 2018, the aggregated amount from contracts with customers allocated to the performance obligations that were unsatisfied or partially satisfied was approximately $7.2 billion . This amount excludes forward prices related to variable consideration including inflation, foreign currency and commodity prices. Also, this amount excludes the effects of the related foreign currency derivative contracts as they do not represent contracts with customers. We expect to recognize approximately 9.2% of our remaining performance obligations as revenue in 2019, an additional 10.8% by 2021 and the balance thereafter. In addition, as of December 31, 2018, we were party to a contract that included performance obligations of $0.6 billion , subject to conditions precedent for the benefit of our customer. During February 2019, the conditions precedent were satisfied. Our off-take contracts expire at various times through 2037 and our terminal services contracts extend into 2026. |
Significant Risks and Uncertain
Significant Risks and Uncertainties, Including Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties, Including Business and Credit Concentrations | 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 for each of the years ended December 31 are as follows: 2018 2017 2016 Customer A 46 % 66 % 75 % Customer B 11 % 12 % 15 % Customer C 16 % 2 % — % Customer D 17 % 15 % — % |
Inventory Impairment and Asset
Inventory Impairment and Asset Disposal | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Impairment and Asset Disposal | 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 or income resulting from business interruption insurance is recorded until all contingencies related to the insurance claim have been resolved. To meet our contractual obligations to our customers, we incurred incremental costs to commission temporary wood pellet storage and handling and ship loading operations (collectively, “business continuity activities”) at nearby locations. The wood pellets from our production plants in the Mid-Atlantic region were delivered to such temporary locations as well as to the Wilmington terminal, which increased our distribution costs. We incurred $60.3 million in costs related to asset impairment, inventory write-off and disposal costs, emergency response costs, asset repair costs and business continuity activities as a result of the Chesapeake Incident. During the year ended December 31, 2018, we recognized recoveries of $62.1 million related to the Chesapeake Incident, which included $25.5 million of business continuity insurance recoveries, recorded in cost of goods sold, and $1.8 million of business interruption insurance recoveries, recorded in other income, for lost profits from both damaged wood pellets and the subsequent reduction in the production of wood pellets. At December 31, 2018, $3.8 million of probable insurance recoveries were included in insurance receivables and subsequently received in February 2019. Inventories Inventories consisted of the following at December 31 : 2018 2017 Raw materials and work-in-process $ 4,936 $ 4,516 Consumable tooling 17,561 14,447 Finished goods 8,993 4,573 Total inventories $ 31,490 $ 23,536 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 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 or income resulting from business interruption insurance is recorded until all contingencies related to the insurance claim have been resolved. To meet our contractual obligations to our customers, we incurred incremental costs to commission temporary wood pellet storage and handling and ship loading operations (collectively, “business continuity activities”) at nearby locations. The wood pellets from our production plants in the Mid-Atlantic region were delivered to such temporary locations as well as to the Wilmington terminal, which increased our distribution costs. We incurred $60.3 million in costs related to asset impairment, inventory write-off and disposal costs, emergency response costs, asset repair costs and business continuity activities as a result of the Chesapeake Incident. During the year ended December 31, 2018, we recognized recoveries of $62.1 million related to the Chesapeake Incident, which included $25.5 million of business continuity insurance recoveries, recorded in cost of goods sold, and $1.8 million of business interruption insurance recoveries, recorded in other income, for lost profits from both damaged wood pellets and the subsequent reduction in the production of wood pellets. At December 31, 2018, $3.8 million of probable insurance recoveries were included in insurance receivables and subsequently received in February 2019. Inventories Inventories consisted of the following at December 31 : 2018 2017 Raw materials and work-in-process $ 4,936 $ 4,516 Consumable tooling 17,561 14,447 Finished goods 8,993 4,573 Total inventories $ 31,490 $ 23,536 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net consisted of the following at December 31 : 2018 2017 Land $ 13,492 $ 13,492 Land improvements 44,990 42,962 Buildings 196,574 196,153 Machinery and equipment 434,776 413,349 Vehicles 635 635 Furniture and office equipment 6,148 5,970 Leasehold improvements 987 987 697,602 673,548 Less accumulated depreciation (154,967 ) (117,067 ) 542,635 556,481 Construction in progress 14,393 5,849 Total property, plant and equipment, net $ 557,028 $ 562,330 Total depreciation expense was $40.6 million , $39.1 million and $25.7 million for the years ended December 31, 2018 and 2017 and 2016 , respectively. Total interest capitalized related to construction in progress was $0.2 million for the year ended December 31, 2018. We did not capitalize interest to construction in progress during the year ended December 31, 2017. At December 31, 2018 , we had assets under capital leases with a cost and related accumulated depreciation of $7.8 million and $3.0 million , respectively. At December 31, 2017 , we had assets under capital leases with a cost and related accumulated depreciation of $4.7 million and $1.2 million , respectively. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instrument Detail [Abstract] | |
Derivative Instruments | 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 expected future cash flows and interest rate swaps to offset some of the interest rate risk on expected future cash flows on certain borrowings. Our derivative instruments expose us to credit risk to the extent that 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 does not enter into derivative instruments for speculative or trading purposes. During the year ended December 31, 2018, we recorded a gain of $8.6 million related to changes in the fair value of foreign currency derivatives, of which $8.4 million was included in product sales and $0.2 million is included in cost of goods sold. During the year ended December 31, 2018, we recognized $4.6 million on realized gains related to derivatives settled during the period. 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, had 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. Due to recent market changes, increases in demand for wood pellets and requests from customers to accommodate the acceleration or deferral of contracted deliveries, we determined that it was no longer probable that the timing of the forecasted revenues associated with the hedged transactions would occur as originally scheduled. As a result, in August 2018, we discontinued hedge accounting for all designated foreign currency cash flow hedges and recognized the full amount of unrealized net gains included in accumulated other comprehensive income of $1.9 million in earnings. As of December 31, 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 on-going changes in the fair value of foreign currency derivatives as product sales or cost of sales depending on the nature of the item being hedged. During December 2017 , we determined that certain transactions were no longer probable of occurring within the forecasted time period, including the relevant cure period, due to unforeseen circumstances experienced by the customers to which the hedge transactions related. As a result, we discontinued hedge accounting for these transactions and recognized $1.6 million of unrealized losses that were reclassified from accumulated other comprehensive income to earnings. Our outstanding foreign currency derivative instruments at December 31, 2018 expire on dates between 2020 and 2023 . Interest Rate Risk We are exposed to fluctuations in interest rates on borrowings under our revolving credit commitments. We entered into a pay-fixed, receive-variable interest rate swap to hedge a portion of the interest rate risk associated with our variable rate borrowings under our prior senior secured credit facilities. We discontinued hedge accounting in 2016 following the repayment of a portion of our outstanding indebtedness under our prior senior secured credit facilities, and subsequently re-designated the interest rate swap for the remaining portion of the indebtedness. Our interest rate swap expires in April 2020. Interest expense for the year ended December 31, 2017 included the reclassification of an insignificant amount representing the effective portion reported as a component of accumulated other comprehensive income. The fair value of derivative instruments as of December 31, 2018 was as follows: Balance Sheet Location Asset Derivatives Liability Derivatives Derivatives designated as cash flow hedging instruments: Interest rate swaps: Interest rate swap Other current assets $ 508 $ — Interest rate swap Other long-term assets 118 — Total derivatives designated as cash flow hedging instruments $ 626 $ — Derivatives not designated as cash flow hedging instruments: Forward contracts: Foreign currency exchange forward contracts Prepaid and other current assets $ 794 $ — Foreign currency exchange forward contracts Other long-term assets 1,810 — Foreign currency exchange forward contracts Accrued and other current liabilities — 68 Foreign currency exchange forward contracts Other long-term liabilities — 179 Purchased options: Foreign currency purchased option contracts Prepaid and other current assets 22 — Foreign currency purchased option contracts Other long-term assets 3,348 — Total derivatives not designated as cash flow hedging instruments $ 5,974 $ 247 Net gains included in product sales and cost of goods sold related to the change of fair market value of derivative instruments not designated as hedging instruments during the year ended December 31, 2018 were $8.4 million and $0.2 million , respectively. The fair value of derivative instruments as of December 31, 2017 were as follows: Balance Sheet Location Asset Derivatives Liability Derivatives Derivatives designated as cash flow 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 cash flow hedging instruments $ 1,651 $ 2,118 Derivatives not designated as cash flow 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 liabilities 45 — Total derivatives not designated as cash flow 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 during the year ended December 31, 2017 were $0.2 million . The effects of instruments designated as cash flow hedges and the related changes in accumulated other comprehensive income and the gains and losses recognized in earnings for the year ended December 31, 2018 were as follows: Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency exchange forward contracts $ 4,532 Product sales $ — Product sales $ 2,413 Foreign currency exchange purchased option contracts 749 Other revenue — Product sales (470 ) Interest rate swap 374 Other income (expense) 231 Other income (expense) (13 ) The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive income and the gains and losses recognized in earnings for the year ended December 31, 2017 were as follows: Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency exchange forward contracts $ (4,126 ) Product sales $ (15 ) Other income (expense) $ (1,237 ) Foreign currency exchange forward contracts (1,411 ) Other revenue — Other income (expense) (368 ) Interest rate swap 74 Other income (expense) (221 ) Other income (expense) 13 We enter into master netting arrangements designed to permit net settlement of derivative transactions among the respective counterparties. If we had settled all transactions with our respective counterparties at December 31, 2018 , we would have made a net settlement termination payment of $6.4 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 as of December 31, 2018 were as follows: 2018 2017 Foreign exchange forward contracts in GBP £ 42,170 £ 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 $ 39,829 $ 44,756 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The amounts reported in the consolidated balance sheets as cash and cash equivalents, accounts receivable, related-party receivables, prepaid expenses and other current assets, accounts payable, related-party payables, deferred consideration due to related-party 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 12, Long-Term Debt and Capital Lease Obligations – Senior Notes ) 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 the usage of market prices not quoted on active markets and other observable market data. The fair value of the long-term debt and capital lease obligations are based upon rates currently available for debt and capital lease obligations with similar terms and remaining maturities. The carrying amount of derivative instruments approximates fair value. The carrying amount and estimated fair value of long-term debt and capital lease obligations as of December 31, 2018 and December 31, 2017 was as follows: December 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Senior notes $ 352,843 $ 359,943 $ 352,224 $ 374,624 Other long-term debt and capital lease obligations 79,812 79,812 48,793 48,793 Total long-term debt and capital lease obligations $ 432,655 $ 439,755 $ 401,017 $ 423,417 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible Assets Intangible assets consisted of the following at: Amortization Period December 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Favorable customer contracts 3 years $ 8,700 $ (8,700 ) $ — $ 8,700 $ (8,591 ) $ 109 Wood pellet contract 6 years 1,750 (1,750 ) — 1,750 (1,750 ) — Total intangible assets $ 10,450 $ (10,450 ) $ — $ 10,450 $ (10,341 ) $ 109 Intangible assets included favorable customer contracts acquired in connection with our purchase of Cottondale in January 2015. We also recorded payments made to acquire a six -year wood pellet off-take contract with a European utility in 2010 as an intangible asset. These costs were recoverable through and were closely related to the future revenue streams generated from the associated contract. We amortized the customer contract intangible assets as deliveries were completed during the respective contract terms. During the years ended December 31, 2018 , 2017 and 2016 , of $0.1 million , $1.3 million and $2.0 million , respectively, of amortization was included in cost of goods sold in the accompanying consolidated statements of income. As of December 31, 2018, our intangible assets were fully amortized. Goodwill Goodwill includes $80.7 million associated with the acquisition of Cottondale by the sponsor and its contribution to us in 2015 and $4.9 million from acquisitions in 2010. |
Assets Held for Sale and Dissol
Assets Held for Sale and Dissolution | 12 Months Ended |
Dec. 31, 2018 | |
Assets Held-for-sale, Not Part of Disposal Group, Current [Abstract] | |
Assets Held for Sale and Dissolution | Assets Held for Sale and Dissolution We formerly held a controlling interest in Wiggins. In December 2016, we initiated a plan to sell the Wiggins plant, which triggered an evaluation of a potential asset impairment. We reclassified the Wiggins plant assets to current assets held for sale and ceased depreciation. The carrying amount of the assets held for sale exceeded the estimated fair value which resulted in a $10.0 million non-cash charge to earnings, which is included in impairment of assets held for sale on the consolidated statements of income. In December 2017 , we sold the Wiggins plant to a third-party buyer for a purchase price of $0.4 million and recorded a loss on the sale of $0.8 million , net, upon deconsolidation, consisting of a loss on the sale of $3.4 million and a $2.6 million gain upon deconsolidation, which is included in general and administrative expenses on the consolidated statements of income. In December 2017 , Wiggins was dissolved. |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long–Term Debt and Capital Lease Obligations | Long-Term Debt and Capital Lease Obligations Long-term debt and capital lease obligations at carrying value consisted of the following at December 31 : 2018 2017 Senior Notes, net of unamortized discount, premium and debt issuance of $2.2 million as of December 31, 2018 and $2.8 million as of December 31, 2017 $ 352,843 $ 352,224 Senior Secured Credit Facilities, Tranche A-1 Advances, net of unamortized discount and debt issuance costs of $0 as of December 31, 2018 and $1.0 million as of December 31, 2017 — 39,263 Senior Secured Credit Facilities, Tranche A-3 Advances, net of unamortized discount and debt issuance costs of $0 as of December 31, 2018 and $0.1 million as of December 31, 2017 — 4,372 Senior Secured Credit Facilities, revolving credit commitments 73,000 — Other loans 2,015 2,023 Capital leases 4,797 3,135 Total long-term debt and capital lease obligations 432,655 401,017 Less current portion of long-term debt and capital lease obligations (2,722 ) (6,186 ) Long-term debt and capital lease obligations, excluding current installments $ 429,933 $ 394,831 Senior Notes Due 2021 In November 2016, we and Enviva Partners Finance Corp. entered into an indenture, as amended or supplemented (the “Indenture”), pursuant to which we issued $300.0 million in aggregate principal amount of 8.5% senior unsecured notes due November 1, 2021 (the “Senior Notes”) to eligible purchasers in a private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”). Interest payments are due semi-annually in arrears on May 1 and November 1. In August 2017, holders of 100 % of the Senior Notes tendered such notes in exchange for newly issued registered notes with terms substantially identical in all material respects to the Senior Notes (except that the registered notes are not subject to restrictions on transfer). We recorded $6.4 million in issue discounts and costs associated with the issuance of the Senior Notes, which have been recorded as a deduction to long-term debt and capital lease obligations. We used $139.6 million of the net proceeds from the Senior Notes, together with cash on hand, to pay a portion of the purchase price for the Sampson Drop-Down and $159.8 million to repay borrowings, including accrued interest, under the senior secured credit facilities. In October 2017, we issued an additional $55.0 million in aggregate principal amount of Senior Notes at 106.25% of par value. The additional Senior Notes have the same terms as the Senior Notes. We received proceeds of approximately $60.0 million , which were used to repay borrowings under our revolving credit commitments under the senior secured credit facilities, which were used to fund the Wilmington Drop-Down, and for general partnership purposes. In December 2017, the holder tendered such notes in exchange for newly issued registered notes with terms substantially identical in all material respects to the Senior Notes (except that the registered notes are not subject to restrictions on transfer). Such additional notes will be treated together with the Senior Notes as a single class for all purposes under the Indenture. We recorded $0.9 million in original issue discounts and costs and $3.4 million in premiums associated with the issuance of the additional Senior Notes, which have been recorded as a net addition to long-term debt and capital lease obligations. We may redeem all or a portion of the Senior Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, on the Senior Notes redeemed to the applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the redemption date), if redeemed during the twelve-month period beginning November 1 on the years indicated below: Year: Percentages 2019 102.125 % 2020 100.000 % 2021 and thereafter 100.000 % The Senior Notes contain certain non-financial covenants applicable to us including, but not limited to (1) restricted payments, (2) incurrence of indebtedness and issuance of preferred securities, (3) liens, (4) dividend and other payment restrictions affecting subsidiaries, (5) merger, consolidation or sale of assets, (6) transactions with affiliates, (7) designation of restricted and unrestricted subsidiaries, (8) additional subsidiary guarantees, (9) business activities and (10) reporting obligations. As of December 31, 2018 and 2017 , we were in compliance with all covenants and restrictions associated with, and no events of default existed under, the Indenture. Our obligations under the Indenture are guaranteed by certain of our subsidiaries and secured by liens on substantially all of our assets. Senior Secured Credit Facilities During 2015, we entered into credit agreements providing for $236.0 million aggregate principal amount of senior secured credit facilities. In addition, in 2015, Enviva FiberCo, LLC (“FiberCo”), a wholly owned subsidiary of our sponsor, purchased $15.0 million aggregate principal amount of borrowings thereunder, net of a 1.0% lender fee. In June 2016, FiberCo assigned all of its rights and obligations in its capacity as a lender to a third party. We recorded $0.4 million as related-party interest expense to this indebtedness during the year ended December 31, 2016. In October 2016, we entered into an amendment to our credit agreement providing for an increase from $25.0 million to $100.0 million of the revolving credit commitments under the senior secured credit facilities effective upon the acquisition of Sampson. In December 2016, proceeds from the Senior Notes were used to repay outstanding indebtedness, including accrued interest of $159.9 million under the senior secured credit facilities. For the year ended December 31, 2016, we recorded a $4.4 million loss on early retirement of debt obligation related to the repayments. The senior secured credit facilities originally matured in April 2020. Borrowings under the senior secured credit facilities bore interest, at our option, at either a base rate plus an applicable margin or at a Eurodollar rate (with a 1.00% floor for term loan borrowings) plus an applicable margin. Principal and interest were payable quarterly. A commitment fee was payable on undrawn revolving credit facility commitments of 0.50% per annum (subject to a stepdown of 0.375% per annum if the Total Leverage Ratio was less than or equal to 2.00 : 1.00 ). Letters of credit issued under the senior secured credit facilities were subject to a fee calculated at the applicable margin for revolving credit facility Eurodollar rate borrowings. We had a $4.0 million letter of credit outstanding under our senior secured credit facilities as of December 31, 2017. The letter of credit was issued in connection with a contract between us and a third party, in the ordinary course of business. In January 2018, the letter of credit was canceled as it was no longer contractually required. We amended our credit agreement 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 4.00 :1.00 and was scheduled to decrease to 3.75 :1.00 beginning with the quarter ending December 31, 2018 through maturity. In October 2018, we amended our credit agreement to increase the revolving credit commitments under our senior secured credit facilities from $100.0 million to $350.0 million and extend the maturity from April 2020 to October 2023. We used $41.2 million of the new revolving credit commitments to fully repay our outstanding term loan borrowings under the senior secured credit facilities. We recorded a $0.8 million loss on early retirement of debt obligation related to such repayment for the year ended December 31, 2018. The credit agreement matures on the earlier to occur of (1) October 18, 2023 or (2) such date where the sum of our cash and cash equivalents and borrowing capacity under the revolving credit commitments under the senior secured credit facilities is less than the sum of the amount of the Senior Notes then outstanding and $50.0 million during the 91-day period prior to and including November 1, 2021 (the maturity date of the Senior Notes), the first day of that period on which such liquidity deficiency occurs. Borrowings under the revolving credit commitments bear interest, at our option, at either a Eurodollar rate or at a base rate, in each case, plus an applicable margin. The applicable margin will fluctuate between 1.75% per annum and 3.00% per annum, in the case of Eurodollar rate borrowings, or between 0.75% per annum and 2.00% per annum, in the case of base rate loans, in each case, based upon our Total Leverage Ratio at such time, with 25 basis point increases or decreases for each 0.50 increase or decrease in the Total Leverage Ratio from 2.75 :1:00 to 4.75 :1:00. We are required to pay a commitment fee on the daily unused amount under the revolving credit commitments at a rate between 0.25% and 0.50% per annum. Amounts paid were not material. As of December 31, 2018 , we had $73.0 million in revolving borrowings under our senior secured credit facilities. We did not have any revolving borrowings thereunder as of December 31, 2017. The credit agreement contains certain covenants, restrictions and events of default including, but not limited to, a change of control restriction and limitations on our ability to (1) incur indebtedness, (2) pay dividends or make other distributions, (3) prepay, redeem or repurchase certain debt, (4) make loans and investments, (5) sell assets, (6) incur liens, (7) enter into transactions with affiliates, (8) consolidate or merge, and (9) assign certain material contracts to third parties or unrestricted subsidiaries. Moreover, the credit agreement requires us to maintain (i) a maximum Total Leverage Ratio at or below 4.75 to 1.00 (or 5.00 to 1.00 during a Material Transaction Period, as defined in the credit agreement) and (2) a minimum Interest Coverage Ratio, (each as defined in the credit agreement), of not less than 2.25 to 1.00. As of December 31, 2018 and 2017 , we were in compliance with all covenants and restrictions associated with, and no events of defaults existed under, our credit agreement. 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 Notes Payable In January 2016, a non-controlling interest holder in Wiggins became the holder of a $3.3 million construction loan and working capital line. Related-party interest expense associated with the related-party notes payable was insignificant during the year ended December 31, 2016. The outstanding principal of the construction loan and working capital line of $3.1 million and an insignificant amount of accrued interest were repaid in full by Wiggins at maturity in October 2016. Debt Issuance Costs and Original Issue Discounts and Premium Unamortized debt issuance costs, original issue discounts and premium included in long-term debt at December 31, 2018 and 2017 , were $2.2 million and $3.9 million , respectively. Unamortized debt issuance costs associated with revolving credit facilities included in long-term assets was $ 2.5 million at December 31, 2018. There were no unamortized debt issuance costs associated with revolving credit facilities included in long-term assets at December 31, 2017. Amortization expense included in interest expense for the years ended December 31, 2018, 2017 and 2016 was $ 1.1 million , $ 1.4 million and $ 1.9 million , respectively. Debt Maturities The aggregate maturities of long-term debt and capital lease obligations, net of unamortized discount and debt issuance costs, are as follows: Year Ended December 31, 2019 $ 2,098 2020 2,766 2021 354,788 2022 3 2023 73,000 Total long-term debt and capital lease obligations $ 432,655 Depreciation expense relating to assets held under capital lease obligations was $1.8 million , $0.7 million and $0.2 million for each of the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Related-party amounts included on the consolidated statements of income were the following for each of the years ended December 31 : 2018 2017 2016 Other revenue $ 3,545 $ 5,912 $ — Cost of goods sold 84,148 69,445 41,467 General and administrative expenses 17,096 15,132 17,236 Management Services Agreement We are party to a Management Services Agreement (the “MSA”) with Enviva Management (the “Provider”), which expires in April 2020. Under the MSA, the Provider provides us with operations, general administrative, management and other services (the “Services”). Under the MSA, 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, including, without limitation: (1) the portion of the salary and benefits of the employees engaged in providing the Services reasonably allocable to us; (2) the charges and expenses of any third party retained to provide any portion of the Services; (3) office rent and expenses and other overhead costs incurred in connection with, or reasonably allocable to, providing the Services; (4) amounts related to the payment of taxes related to the business of the Service Recipients; and (5) costs and expenses incurred in connection with the formation, capitalization, business or other activities of the Provider pursuant to the MSA. We believe the Provider’s assumptions and allocations have been made on a reasonable basis and are the best estimate of the costs that we would have incurred on a stand-alone basis. Direct or indirect internal or third-party expenses incurred are either directly identifiable or allocated to us by the Provider. The Provider estimates the percentage of salary, benefits, third-party costs, office rent and expenses and any other overhead costs incurred by the Provider associated with the Services to be provided to us. Each month, the Provider allocates the actual costs incurred using these estimates. The Provider also charges us for any directly identifiable costs such as goods or services provided at the Partnership’s request. During the year ended December 31, 2018 , $52.3 million , related to the MSA was included in cost of goods sold and $17.1 million was included in general and administrative expenses on the consolidated statements of income. At December 31, 2018 , $1.2 million incurred under the MSA is included in finished goods inventory. During the year ended December 31, 2017 , $49.9 million , related to the MSA is included in cost of goods sold and $15.1 million was included in general and administrative expenses on the consolidated statements of income. At December 31, 2017 , $0.5 million incurred under the MSA is included in finished goods inventory. During the year ended December 31, 2016 , $37.9 million , related to the MSA was included in cost of goods sold and $17.2 million was included in general and administrative expenses on the consolidated statements of income. As of December 31, 2018 and 2017, we had $19.0 million and $19.6 million , respectively, included in related-party payables related to the MSA. Common Control Transactions Sampson Drop-Down On December 14, 2016, the First Hancock JV contributed to Enviva, LP all of the issued and outstanding limited liability company interests in Sampson for total consideration of $175.0 million (see Note 1, Description of Business and Basis of Presentation ). Wilmington Drop-Down In October 2017, we purchased all of the issued and outstanding limited liability company interests in Wilmington for total consideration of $130.0 million (the “Wilmington Drop-Down”) (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 and is included as deferred consideration for Wilmington Drop-Down due to related-party on the consolidated balance sheet as of December 31, 2018. Pursuant to the Wilmington Drop-Down agreement, 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 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 December 31, 2018, the $74.0 million was included in related-party payables and at December 31, 2017, was included in related-party long-term payable, on the consolidated balance sheets. Related-Party Indemnification 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 we acquired. We recorded a related-party receivable from the First Hancock JV of $6.4 million for reimbursement of indemnifiable amounts related to the Sampson Drop-Down. At December 31, 2018 and December 31, 2017, the related-party receivable associated with such amounts was $0.3 million and $3.0 million , respectively. We recorded a related-party receivable from the First Hancock JV of $1.8 million for reimbursement of indemnifiable amounts related to the Wilmington Drop-Down. At December 31, 2018, the related-party receivable associated with such amounts was insignificant. As of 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 December 31, 2018, $2.9 million has been received and no further amounts are outstanding. 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 (the “Greenwood contract”) and subject to Greenwood’s option to increase or decrease the volume by 10% each contract year. During the year ended December 31, 2018 , we purchased $26.7 million , net of $0.7 million cost to cover deficiency fees, of wood pellets from Greenwood, of which $26.2 million is included in cost of goods sold and $0.5 million is included in finished goods inventory. As of December 31, 2018 , $7.9 million is included in related-party payables related to our wood pellet purchases from Greenwood. We did no t purchase wood pellets from Greenwood during the years ended December 31, 2017 and 2016 . 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 years ended December 31, 2018 and 2017, we recorded $0.8 million and $2.8 million , respectively, as terminal services revenue from the sponsor, which is included in other revenue. The Partnership had no terminal services revenue under the Holdings TSA during the year ended 2016 . 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 year ended December 31, 2018 , we recorded $2.2 million of deficiency fees from Greenwood, which is included in other revenue. We did no t have any deficiency fees from Greenwood for the years ended December 31, 2017 and 2016 . 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 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 during the year ended December 31, 2018. Enviva FiberCo, LLC We purchase raw materials from Enviva FiberCo, LLC, a wholly owned subsidiary of our sponsor. Such raw material purchases during the years ended December 31, 2018 , 2017 and 2016 were $7.1 million , $8.5 million and $3.7 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. On June 23, 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, as amended, 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. During the years ended December 31, 2018 and 2017, Enviva, LP purchased $ 1.7 million and $ 11.1 million , respectively, of wood pellets from the sponsor. We did no t purchase wood pellets from the sponsor during the year ended December 31, 2016. 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 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. Long-Term Incentive Plan Vesting During the year ended December 31, 2018 , we paid $6.9 million to the General Partner for the purchase of common units from the sponsor, and the satisfaction of related tax withholding obligations of the Provider for which we are responsible under the MSA, in connection with the vesting and settlement of performance-based phantom unit awards granted under the LTIP. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Partnership and its operating subsidiaries 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 partners and 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 consolidated financial statements and have been included in other income (expense) as incurred. For calendar year 2018 , the only periods subject to examination for federal and state income tax returns are 2016 through 2018 . We believe our income tax filing positions, including our status as a pass-through entity, would be sustained on audit and we do not anticipate any adjustments that would result in a material change to our consolidated balance sheet. Therefore, no reserves for uncertain tax positions, nor interest and penalties, have been recorded. For the years ended December 31, 2018 and 2017 , no provision for federal or state income taxes has been recorded in the consolidated financial statements. Our consolidated financial statements include Enviva Finance Corp., which is a wholly owned C-corporation that was formed for the purpose of being the co-issuer of our Senior Notes. There were no activities generated by Enviva Finance Corp. during 2018 and 2017 , as a result, no provision for federal or state income taxes has been recorded in the consolidated financial statements. |
Partners' Capital
Partners' Capital | 12 Months Ended |
Dec. 31, 2018 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital | Partners’ Capital Common and Subordinated Units - Sponsor In January 2018, the sponsor sold to the General Partner 81,708 common units, which were used to satisfy our obligation to settle vested performance-based phantom unit awards granted under the LTIP. 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. All of our subordinated units, which were previously held by the sponsor, converted into common units on a one -for-one basis at the end of the subordination period on May 30, 2018. As of December 31, 2018, 11,905,138 common units were held by the sponsor. Allocations of Net Income (Loss) Net income (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 paid 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 year ended December 31, 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 year ended December 31, 2017 , we sold 71,368 common units under the ATM Program for net proceeds of $1.9 million , net of $0.1 million of commissions. Accounting and other fees of approximately $0.2 million were offset against the proceeds during the year ended December 31, 2017. We had no accounting and other fees associated with the ATM Program during the year ended December 31, 2018. Net proceeds from sales under the ATM Program were used for general partnership purposes. Sampson Drop-Down As partial consideration for the Sampson Drop-Down, we issued 1,098,415 unregistered common units at a price of $27.31 per unit, or $30.0 million of common units, to John Hancock and certain of its affiliates. Cash Distributions to Unitholders The partnership agreement sets forth the calculation to be used to determine the amount of cash distributions that our unitholders and the sponsor will receive. 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): Quarter Ended Declaration Date Record Date Payment Date Distribution Per Unit Total Cash Distribution Total Payment to General Partner for Incentive Distribution Rights March 31, 2017 May 3, 2017 May 18, 2017 May 30, 2017 $ 0.5550 $ 14.6 $ 0.5 June 30, 2017 August 2, 2017 August 15, 2017 August 29, 2017 $ 0.5700 $ 15.0 $ 0.7 September 30, 2017 November 2, 2017 November 15, 2017 November 29, 2017 $ 0.6150 $ 16.2 $ 1.1 December 31, 2017 January 31, 2018 February 15, 2018 February 28, 2018 $ 0.6200 $ 16.3 $ 1.1 March 31, 2018 May 3, 2018 May 15, 2018 May 29, 2018 $ 0.6250 $ 16.5 $ 1.3 June 30, 2018 August 1, 2018 August 15, 2018 August 29, 2018 $ 0.6300 $ 16.7 $ 1.4 September 30, 2018 October 31, 2018 November 15, 2018 November 29, 2018 $ 0.6350 $ 16.8 $ 1.5 December 31, 2018 January 29, 2019 February 15, 2019 February 28, 2019 $ 0.6400 $ 17.0 $ 1.7 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 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 outstanding 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). The following table presents the changes in accumulated other comprehensive income: Unrealized Losses on Derivative Instruments Balance at December 31, 2016 $ 595 Net unrealized losses (5,463 ) Reclassification of net losses realized into net income 1,828 Accumulated other comprehensive income at December 31, 2017 (3,040 ) Net unrealized losses 5,655 Reclassification of net gains on cash flow hedges realized into net income (2,178 ) Currency translation adjustment 2 Accumulated other comprehensive loss at December 31, 2018 $ 439 Noncontrolling Interests—Enviva Pellets Wiggins, LLC Prior to December 2017, we held a 67% controlling interest in Wiggins. In December 2017 , we sold the Wiggins plant to a third-party buyer for a purchase price of $0.4 million and recorded a loss on the sale of $0.8 million , net, which is included in general and administrative expenses. In December 2017, Wiggins was dissolved. Upon dissolution, no amounts were distributed to the non-controlling interest holders and all intercompany balances were forgiven (see Note 11, Assets Held for Sale ). Noncontrolling Interests—First Hancock JV Sampson and Wilmington were wholly owned subsidiaries of the First Hancock JV prior to the consummation of the Sampson Drop-Down and the Wilmington Drop-Down. Our consolidated financial statements have been recast to include the financial results of Sampson and Wilmington as if the consummation of the Sampson Drop-Down and Wilmington Drop-Down had occurred on May 15, 2013, the date Sampson and Wilmington were originally organized. The interests of the First Hancock JV’s third-party investors in Sampson and Wilmington for periods prior to the related drop-down transactions have been reflected as a non-controlling interest in our financial statements. Our consolidated statements of income for the years ended December 31, 2018 and 2017 had no non-controlling interests in Sampson, and for the year ended December 31, 2016 included net losses of $3.3 million attributable to the non-controlling interests in Sampson. Our consolidated statements of income for the years ended December 31, 2017 , and 2016 included net losses of $3.1 million and $2.2 million , respectively, attributable to the non-controlling interests in Wilmington. We had no non-controlling interests in Wilmington for the year ended December 31, 2018. |
Equity-Based Awards
Equity-Based Awards | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Awards | Equity-Based Awards Long-Term Incentive Plan The General Partner maintains the LTIP, which provides for the grant, from time to time, at the discretion of the board of directors of the General Partner or a committee thereof, of unit options, unit appreciation rights, restricted units, phantom units, DERs unit awards, and other awards. The LTIP limits the number of common units that may be delivered pursuant to awards under the plan to 2,738,182 common units. If equity awards granted under the LTIP are forfeited, canceled, exercised, paid, or otherwise terminate or expire without the actual delivery of the underlying common units, the corresponding number of such common units will remain available for delivery pursuant to other awards under the LTIP. The common units issuable pursuant to the LTIP will consist, in whole or in part, of common units acquired in the open market or from any affiliate or any other person, newly issued common units or any combination of the foregoing as determined by the board of directors of the General Partner or a committee thereof. During 2018 , 2017 and 2016 , the board of directors of the General Partner granted phantom units in tandem with corresponding DERs to employees of the Provider who provide services to us (the “Affiliate Grants”), and phantom units in tandem with corresponding DERs to certain non-employee directors of the General Partner (the “Director Grants”). The phantom units and corresponding DERs are subject to certain vesting and forfeiture provisions. Award recipients do not have all the rights of a unitholder with respect to the phantom units until the phantom units have vested and been settled. Awards of the phantom units are settled in common units within 60 days after the applicable vesting date. If a phantom unit award recipient experiences a termination of service under certain circumstances set forth in the applicable award agreement, the unvested phantom units and corresponding DERs are forfeited. Forfeitures are recognized when the actual forfeiture occurs. Affiliate Grants A summary of the Affiliate Grants for the years ended December 31, 2018 , 2017 and 2016 is as follows: Time-Based Phantom Units Performance-Based Total Affiliate Grant Units Weighted- Units Weighted- Units Weighted- Nonvested December 31, 2016 346,153 $ 19.32 235,355 $ 19.46 581,508 $ 19.37 Granted 301,400 $ 25.67 111,104 $ 25.51 412,504 $ 25.63 Forfeitures (51,687 ) $ 21.77 (95,545 ) $ 18.36 (147,232 ) $ 18.36 Vested — $ — (139,810 ) $ 20.20 (139,810 ) $ 20.20 Nonvested December 31, 2017 595,866 $ 22.32 111,104 $ 25.52 706,970 $ 22.82 Granted 398,729 $ 29.15 171,104 $ 28.92 569,833 $ 29.08 Adjusted — $ — 19,832 $ 18.19 19,832 $ 18.19 Forfeitures (89,119 ) $ 25.59 (17,469 ) $ 25.76 (106,588 ) $ 25.62 Vested (181,536 ) $ 21.42 (45,059 ) $ 23.80 (226,595 ) $ 21.89 Nonvested December 31, 2018 723,940 $ 25.91 239,512 $ 27.65 963,452 $ 26.34 ____________________________________________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. Time-based Affiliate Grants vest on the third anniversary of the grant date and performance-based Affiliate Grants vest in three years upon achievement of specific performance milestones. We account for the delivery of common units upon the settlement of vested Affiliate Grants as if such common units were distributed by us. The fair value of the Affiliate Grants granted during 2018 was $16.6 million based on the market price per unit on the applicable date of grant. The grant date fair value of performance-based Affiliate Grants is reported based on the probable outcome of the performance conditions on the grant date. The fair value of the Affiliate Grants is remeasured by the Provider at each reporting period until the award is settled, as these are liability classified from the perspective of the Provider. Compensation cost recorded each period will vary based on the change in the fair value of the awards. For awards with performance goals, the expense is accrued only if the performance goals are considered to be probable of occurring. The Provider recognizes unit-based compensation expense for the units awarded and a portion of that expense is allocated to us under the MSA in the same manner as other corporate expenses. Our portion of the unit-based compensation expense is included in general and administrative expenses. We recognized $4.7 million , $3.4 million and $3.1 million of general and administrative expense associated with the Affiliate Grants during the years ended December 31, 2018 , 2017 and 2016 , respectively. During the fourth quarter of 2017 , $1.6 million of unit-based compensation was reversed as performance goals were not met. We paid $2.9 million to the Provider to satisfy the withholding tax requirements associated with 181,536 time-based phantom unit awards and 45,059 performance-based phantom unit awards that vested under the LTIP during the year ended December 31, 2018. In December 2017, 139,810 performance-based phantom unit awards vested and, in connection with the settlement of such awards in January 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 for delivery to the recipients under the LTIP. We also paid $1.7 million to the Provider to satisfy the withholding tax requirements associated with such units under the MSA. 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 A summary of the Director Grant unit awards subject to vesting for the years ended December 31, 2018 , 2017 and 2016, is as follows: Time-Based Phantom Units Performance-Based Phantom Units Total Director Grant Phantom Units Units Weighted- Average Grant Date Fair Value (per unit)(1) Units Weighted- Average Grant Date Fair Value (per unit)(1) Units Weighted- Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 2016 17,724 $ 22.57 — $ — 17,724 $ 22.57 Granted 15,840 $ 25.25 — $ — 15,840 $ 25.25 Forfeitures — $ — — $ — — $ — Vested (17,724 ) $ 22.57 — $ — (17,724 ) $ 22.57 Nonvested December 31, 2017 15,840 $ 25.25 — $ — 15,840 $ 25.25 Granted 13,964 $ 28.65 — $ — 13,964 $ 28.65 Forfeitures — $ — — $ — — $ — Vested (15,840 ) $ 25.25 — $ — (15,840 ) $ 25.25 Nonvested December 31, 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 2019. In February 2019, the Director Grants that were nonvested at December 31, 2018 vested and common units were issued in respect thereof. In addition, 420 common units were granted and issued to non-employee directors of the General Partner as compensation for services performed on the General Partner’s board of directors during the year ended December 31, 2018 . For the years ended December 31, 2018 and 2017 we recorded $0.4 million and $0.5 million , respectively, of compensation expense with respect to the Director Grants. For the year ended December 31, 2016 , an insignificant amount of compensation expense with respect to the Director Grants was recorded. DERs associated with the Affiliate Grants and the Director Grants subject to time-based vesting entitle the recipients to receive payments in respect thereof in a per-unit amount that is equal to any distributions made by us to the holders of common units within 60 days following the record date for such distributions. The DERs associated with the Affiliate Grants subject to performance-based vesting will remain outstanding and unpaid from the grant date until the earlier of the settlement or forfeiture of the related performance-based phantom units. Unpaid DER amounts related to the performance-based Affiliate Grants at December 31, 2018 were $0.7 million . Unpaid DER amounts of $0.4 million are included in accrued liabilities and $0.3 million are included in other long-term liabilities on the 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 on the consolidated balance sheets. DER distributions related to time- and performance-based Affiliate Grants were $1.8 million and $1.0 million for the years ended December 31, 2018 and 2017 , respectively, and were insignificant for the year ended December 31, 2016 . At December 31, 2018 and 2017 , $0.9 million and $0 , respectively, of DER distributions are included in related-party accrued liabilities. |
Net Income (Loss) per Limited P
Net Income (Loss) per Limited Partner Unit | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Limited Partner Unit | Net Income (Loss) per Limited Partner Unit Net income (loss) per unit applicable to limited partners is computed by dividing limited partners’ interest in net income (loss), after deducting any incentive distributions, by the weighted-average number of outstanding 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 units, we have also identified the IDRs and phantom units as participating securities and uses the two-class method when calculating the net income (loss) per unit applicable to limited partners, which is based on the weighted-average number of common units 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 that previously was applicable to subordinated limited partners was the same because there were no potentially dilutive subordinated units outstanding. The computation of net income (loss) per limited partner unit is a follows for the years ended December 31 : 2018 2017 2016 Net income $ 6,952 $ 14,373 $ 13,463 Less net loss attributable to noncontrolling partners’ interests — 3,140 5,804 Net income attributable to Enviva Partners, LP $ 6,952 $ 17,513 $ 19,267 Less: Pre-acquisition income from inception to December 13, 2016 from operations of Enviva Pellets Sampson, LLC Drop-Down allocated to General Partner — — (3,231 ) Less: Pre-acquisition income from inception to October 1, 2017 from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — (3,049 ) (2,110 ) Enviva Partners, LP limited partners’ interest in net income $ 6,952 $ 20,562 $ 24,608 Less: Distributions declared on: Common units $ 54,604 $ 34,033 $ 26,933 Subordinated units through end of subordination period 12,407 28,096 24,167 IDRs 5,867 3,398 1,077 Total distributions declared 72,878 65,527 52,177 Earnings less than distributions $ (65,926 ) $ (44,965 ) $ (27,569 ) Basic and diluted net income per limited partner unit is follows: Year Ended December 31, 2018 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 21,533 4,893 — Effect of nonvested phantom units 1,020 — — Weighted-average common units outstanding—diluted 22,553 4,893 — Year Ended December 31, 2018 Common Units Subordinated Units General Partner Total Distributions declared $ 54,604 $ 12,407 $ 5,867 $ 72,878 Earnings less than distributions (53,720 ) (12,206 ) — (65,926 ) Net income attributable to partners $ 884 $ 201 $ 5,867 $ 6,952 Weighted-average units outstanding—basic 21,533 4,893 Weighted-average units outstanding—diluted 22,553 4,893 Net income per limited partner unit—basic $ 0.04 $ 0.04 Net income per limited partner unit—diluted $ 0.04 $ 0.04 Year Ended December 31, 2017 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 14,403 11,905 — Effect of nonvested phantom units 948 — — Weighted-average common units outstanding—diluted 15,351 11,905 — Year Ended December 31, 2017 Common Units Subordinated Units General Partner Total Distributions declared $ 34,033 $ 28,096 $ 3,398 $ 65,527 Earnings less than distributions (24,631 ) (20,334 ) — (44,965 ) Net income attributable to partners $ 9,402 $ 7,762 $ 3,398 $ 20,562 Weighted-average units outstanding—basic 14,403 11,905 Weighted-average units outstanding—diluted 15,351 11,905 Net income per limited partner unit—basic $ 0.65 $ 0.65 Net income per limited partner unit—diluted $ 0.61 $ 0.65 Year Ended December 31, 2016 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 13,002 11,905 — Effect of nonvested phantom units 557 — — Weighted-average common units outstanding—diluted 13,559 11,905 — Year Ended December 31, 2016 Common Units Subordinated Units General Partner Total Distributions declared $ 26,933 $ 24,167 $ 1,077 $ 52,177 Earnings less than distributions (14,531 ) (13,038 ) — (27,569 ) Net income attributable to partners $ 12,402 $ 11,129 $ 1,077 $ 24,608 Weighted-average units outstanding—basic 13,002 11,905 Weighted-average units outstanding—diluted 13,559 11,905 Net income per limited partner unit—basic $ 0.95 $ 0.93 Net income per limited partner unit—diluted $ 0.91 $ 0.93 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Shipping Event 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 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 $11.5 million (calculated using exchange rates as of December 31, 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. In February 2019, the parties to the arbitration settled the Claims at no incremental cost to us. As of December 31, 2018, $1.0 million is recorded in insurance receivables related to recovery of legal costs incurred. Operating Leases The MSA fee charged by Enviva Holdings, LP to us includes rent related amounts for non-cancelable operating leases for office space in Maryland and North Carolina held by Enviva Holdings, LP. Other rent expense for non-cancelable operating leases was approximately $4.4 million for the year ended December 31, 2018 and insignificant for the years ended December 31, 2017 and 2016 . In February, 2015, Wilmington entered into a Deed of Lease Agreement (the “Lease”) with North Carolina State Ports Authority (“NCSPA”) to lease certain real property at NCSPA’s Wilmington, North Carolina marine terminal for the Wilmington terminal. The Lease has a twenty-one year term, with two five -year renewal options, with annual base rent of $0.2 million that is payable monthly or annually, subject to an annual increase in the producer’s price index for industrial commodities less fuel. No payments are due until September 2021. The total estimated base rent payments over the life of the lease are estimated at $4.7 million . In May 2016, the Lease was amended to include a minimum annual throughput ton fee, subject to an annual increase in producer’s price index up to 1% . The total estimated minimum annual throughput ton fee is $1.9 million for 1.0 million tons annually, where the ultimate fee would increase for throughput above 1.0 million tons annually. Total estimated payments over the life of the agreement are estimated at $71.7 million . During the year ended December 31, 2018, rent expense related to the NCSPA lease was $2.3 million . Future minimum lease payments, excluding those charged under the MSA, for non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2018 are as follows: 2019 $ 3,491 2020 3,088 2021 2,793 2022 2,578 2023 2,563 Thereafter 59,320 Total future minimum lease payments $ 73,833 Commitments We have entered into throughput agreements expiring between 2022 through 2023 to receive terminal and stevedoring services at certain of our terminals. The agreements specify a minimum cargo throughput requirement at a fixed price per ton or a fixed fee, subject to an adjustment based on the consumer price index or the producer prices index, for a defined period of time, ranging from monthly to annually. At December 31, 2018 , we had approximately $16.3 million related to firm commitments under such terminal and stevedoring services agreements. For the years ended December 31, 2018 , 2017 and 2016 , terminal and stevedoring services expenses were $9.8 million , $10.6 million , and $10.3 million , respectively. We have entered into long-term arrangements to secure transportation from our plants to our export terminals. Under certain of these agreements, which expire between 2020 through 2023, we committed to various annual minimum volumes under multi-year fixed-cost contracts with third-party logistics providers for trucking and rail transportation, subject to increases in the consumer price index and certain fuel price adjustments. For the years ended December 31, 2018 , 2017 and 2016 , transportation expenses were $29.8 million , $23.8 million and $21.7 million , respectively. We have entered into long-term supply arrangements, expiring between 2020 through 2024 , to secure the supply of wood pellets from third-party vendors and related parties. The minimum annual purchase volumes are at a fixed price per MT adjusted for volume, pellet quality and certain shipping-related charges. The supply agreements for the purchase of 1,620,000 MT of wood pellets from British Columbia are fully offset by an agreement to sell 1,620,000 MT of wood pellets to the same counterparty from our terminal locations. Under long-term supply arrangements, we purchased approximately $29.5 million and $3.5 million amounts for the years ended December 31, 2018 and December 31, 2017 , respectively. No amounts were incurred related to these agreements for the year ended December 31, 2016 . Fixed and determinable portions of the minimum aggregate future payments under these firm terminal and stevedoring services, transportation, and supply agreements for the next five years are as follows: 2019 $ 94,578 2020 173,993 2021 189,073 2022 48,809 2023 29,811 Thereafter 23,138 Total $ 559,402 In order to mitigate volatility in our shipping costs, we have entered into fixed-price shipping contracts with reputable shippers matching the terms and volumes of certain of our off-take contracts for which we are responsible for arranging shipping. Contracts with shippers, expiring between 2019 through 2034, include provisions as to the minimum amount of MTPY to be shipped and may also stipulate the number of shipments. Pursuant to these contracts, the terms of which extend up to fifteen years , charges are based on a fixed-price per MT and, in some cases, there are adjustment provisions for increases in the price of fuel or for other distribution-related costs. The charge per MT varies depending on the loading and discharge port. For the years ended December 31, 2018 , 2017 and 2016 , shipping expenses were approximately $64.1 million , $52.2 million , and $41.5 million , respectively, and were included in cost of sales. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Long-Term Incentive Plan In January 2019, the Board granted 13,264 Director Grants and 542,940 Affiliate Grants. The Director Grants vest on the first anniversary of the grant date. Of the total Affiliate Grants, 335,433 time-based phantom units vest on the third anniversary of the grant date and 207,507 performance-based phantom units vest based on the satisfaction of time-based vesting conditions and the achievement performance metrics related to gross distributable cash flow over a three -year performance period. The fair value of the Director Grants and Affiliate Grants was $16.8 million based on the market price per unit on the date of the grant. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table presents our unaudited quarterly financial data. The quarterly results of operations for these periods are not necessarily indicative of future results of operations. Certain amounts related to the change in the fair value of derivatives have been reclassified to product sales from other income for the first and second quarters of 2018 to conform to current period presentation. Basic and diluted earnings per unit are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per unit information may not equal annual basic and diluted earnings per unit. For the Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 125,324 $ 135,596 $ 144,148 $ 168,673 $ 573,741 Gross margin (5,018 ) 19,811 30,119 24,529 69,441 Net (loss) income (19,335 ) 3,544 13,356 9,387 6,952 Enviva Partners, LP limited partners’ interest in net (loss) income (19,335 ) 3,544 13,356 9,387 6,952 Basic (loss) income per limited partner common unit $ (0.78 ) $ 0.08 $ 0.45 $ 0.29 $ 0.04 Diluted (loss) income per limited partner common unit $ (0.78 ) $ 0.08 $ 0.43 $ 0.28 $ 0.04 Basic (loss) income per limited partner subordinated unit $ (0.78 ) $ 0.08 $ — $ — $ 0.04 Diluted (loss) income per limited partner subordinated unit $ (0.78 ) $ 0.08 $ — $ — $ 0.04 For the Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 122,443 $ 127,547 $ 132,223 $ 161,008 $ 543,221 Gross margin 16,368 16,331 20,382 25,721 78,802 Net (loss) income (45 ) 1,497 5,023 7,898 14,373 Enviva Partners, LP limited partners’ interest in net income 2,535 3,862 6,339 7,826 20,562 Basic income per limited partner common unit $ 0.08 $ 0.12 $ 0.20 $ 0.25 $ 0.65 Diluted income per limited partner common unit $ 0.07 $ 0.11 $ 0.19 $ 0.24 $ 0.61 Basic income per limited partner subordinated unit $ 0.08 $ 0.12 $ 0.20 $ 0.25 $ 0.65 Diluted income per limited partner subordinated unit $ 0.08 $ 0.12 $ 0.20 $ 0.25 $ 0.65 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees [Abstract] | |
Supplemental Guarantor Information | Supplemental Guarantor Information The Partnership and its wholly owned finance subsidiary, Enviva Partners Finance Corp., are the co-issuers of the Senior Notes on a joint and several basis. The Partnership has no material independent assets or operations. The Senior Notes are guaranteed on a senior unsecured basis by certain of the Partnership’s direct and indirect wholly owned subsidiaries (excluding Enviva Partners Finance Corp. and certain recently formed immaterial subsidiaries) and will be guaranteed by the Partnership’s future restricted subsidiaries that guarantee certain of its 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 the Senior Notes. Other than certain restrictions arising under the Credit Agreement and the Indenture (see Note 12 , Long-Term Debt and Capital Lease Obligations ), there are no significant restrictions on the ability of any restricted subsidiary to (i) pay dividends or make any other distributions to the Partnership or any of its restricted subsidiaries or (ii) make loans or advances to the Partnership or any of its restricted subsidiaries. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Our consolidated financial statements include all accounts of the Partnership and its wholly owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated. We operate and manage our business as one operating segment. |
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 consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Common Control Transactions | Common Control Transactions Assets and businesses acquired from our sponsor and its controlled subsidiaries are accounted for as common control transactions whereby the net assets acquired are combined at their historical costs and our consolidated financial statements are adjusted retrospectively to reflect the transaction as if it had occurred on the earliest date during which the entities were under common control. If any recognized consideration transferred in such a transaction exceeds the carrying value of the net assets acquired, the excess is treated as a capital distribution to the General Partner. If the carrying value of the net assets acquired exceeds any recognized consideration transferred including, if applicable, the fair value of any limited partner units issued, then that excess is treated as a capital contribution from the General Partner. To the extent that such transactions require prior periods to be recast, historical net equity amounts prior to the transaction date are attributed to the General Partner and any noncontrolling partner interest at the historical amount. |
Other Comprehensive Income (Loss) | 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 under GAAP are included in comprehensive income (loss) but excluded from net income (loss). Other comprehensive income consists of net unrealized gains and losses related to derivative instruments accounted for as cash flow hedges and foreign currency translation adjustments. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of short-term, highly liquid investments readily convertible into cash with an original maturity of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable represent amounts billed and billable under our contracts and are recorded at the invoiced amount and do not bear interest. |
Inventories | Inventories Inventories consist of raw materials, work-in-progress, consumable tooling and finished goods. Fixed production overhead, including related depreciation expense, is allocated to inventory based on the normal production capacity of the facilities. To the extent we do not achieve normal production levels, we charge such under-absorption of fixed overhead to cost of goods sold in the period incurred. Consumable tooling consists of spare parts and tooling to be consumed in the production process. Spare parts are expected to be used within a year and are expensed as used. Tooling items are amortized to expense over an estimated service life generally less than one year. Inventories are stated at the lower of cost or market using the first-in, first-out method (“FIFO”) for all inventories, which requires the use of judgment and estimates. 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. |
Revenue Recognition and Cost of Goods Sold | 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, are 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 recognize revenue on a gross basis in product sales when we determine that we act as a principal by having control of the wood pellets before they are transferred to the customer. Indicators of control have included being primarily responsible for fulfilling the promise to provide the wood pellets (such as by contracting to sell wood pellets before contracting to buy them), having inventory risk, or having discretion in establishing the sales price for the wood pellets. The decision as to whether to recognize revenue on a gross or net basis requires significant judgment. 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 in satisfaction of the related performance obligation. 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 services above the minimum are generally billed based on a per-ton rate as variable consideration and recognized as services performed. Any deficiency payments receivable and probable of being collected from a customer not meeting quarterly minimum throughput requirements are recognized during the related quarter in satisfaction of the related performance obligation. 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 that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. 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. Distribution costs associated with shipping wood pellets to customers and amortization of favorable acquired customer contracts are expensed as incurred. 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. |
Derivative Instruments | Derivative Instruments Derivative instruments are classified as either assets or liabilities on a gross basis and carried at fair value and included in prepaid expenses and other current assets, other long-term assets, accrued and other current liabilities, and other long-term liabilities on the consolidated balance sheets. Changes in fair value are either recognized as unrealized gains and losses in accumulated other comprehensive income in partners’ capital or earnings depending on the nature of the underlying exposure, whether the derivative is formally designated as a hedge, and, if designated, the extent to which the hedge is effective. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. As of December 31, 2018, we only apply hedge accounting treatment to interest rate swaps. The effective portion of foreign currency forward and option contracts designated as cash flow hedges was reported as a component of accumulated other comprehensive income in partners’ capital and reclassified into revenue in the same period or periods during which the hedged revenue affected earnings. During August 2018, we discontinued hedge accounting for all designated foreign currency cash flow hedges. The effective portion of interest rate swaps designated as cash flow hedges is reported as a component of accumulated other comprehensive income in partners’ capital and reclassified into interest expense in the same period or periods during which the hedged interest expense affects earnings. The ineffective portion of cash flow hedges, if any, is recognized in earnings in the current period. We link derivative instruments that are designated as cash flow hedges to specific assets and liabilities on the consolidated balance sheets or to specific forecasted transactions. We link interest rate swap derivative instruments designated as a hedge using the first payment technique to link the forecasted transaction which is the first LIBOR-based payments on any borrowing. To qualify for hedge accounting, the item to be hedged must cause an exposure risk and we must have an expectation that the related hedging instrument will be effective at reducing or mitigating that exposure. In accordance with the hedging requirements, we document all hedging relationships at inception and include a description of the risk management objective and strategy for undertaking the hedge, identification of the hedging instrument, the hedged item, the nature of the risk being hedged, the method for assessing effectiveness of the hedging instrument in offsetting the hedged risk and the method of measuring any ineffectiveness. When an event or transaction occurs or the derivative contract expires or the forecasted transaction is no longer probable of occurring, hedge accounting is discontinued. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments are highly effective in offsetting changes in cash flows of hedged items. If it is determined that a derivative instrument has ceased to be a highly effective hedge, hedge accounting is discontinued prospectively. Hedge effectiveness for foreign exchange forward contracts designated as cash flow hedges is assessed by comparing the change in the fair value of the hedge contract with the change in the fair value of the forecasted cash flows of the hedged item. For foreign exchange option contracts, hedge effectiveness is assessed based on the hedging instrument’s entire change in fair value. Hedge effectiveness for interest rate swaps is assessed by comparing the change in fair value of the swap with the change in the fair value of the hedged item due to changes in the benchmark interest rate. Derivative instruments that do not qualify, or no longer qualify, as hedges are adjusted to fair value through earnings in the current period. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, which includes the fair values of assets acquired. Equipment under capital leases is stated at the present value of minimum lease payments. Useful lives of assets are based on historical experience and other relevant information. The useful lives of assets are adjusted when changes in the expected physical life of the asset, its planned use, technological advances, or other factors show that a different life would be more appropriate. Changes in useful lives are recognized prospectively. Depreciation is calculated using the straight-line method based on the estimated useful lives of the related assets. Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Construction in progress primarily represents expenditures for the development and expansion of facilities. Capitalized interest cost and all direct costs, which include equipment and engineering costs related to the development and expansion of facilities, are capitalized as construction in progress. Depreciation is not recognized for amounts in construction in progress. Normal repairs and maintenance costs are expensed as incurred. Amounts incurred that extend an asset’s useful life, increase its productivity or add production capacity are capitalized. Direct costs, such as outside labor, materials, internal payroll and benefit costs, incurred during the construction of a new plant are capitalized; indirect costs are not capitalized. The principal useful lives are as follows: Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years Costs and accumulated depreciation applicable to assets retired or sold are removed from the accounts, and any resulting gain or loss is included in the consolidated statements of income. Long-lived assets, such as property, plant and equipment and amortizable intangible assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset asset may not be recoverable. |
Debt Issuance Costs and Original Issue Discounts and Premiums | Debt Issuance Costs and Original Issue Discounts and Premiums Debt issuance costs and original issue discounts and premiums incurred with debt financing are capitalized and amortized over the life of the debt using the straight-line method, which approximates the effective interest method. Amortization expense is included in interest expense. If a debt instrument is retired before its scheduled maturity date, any related unamortized debt issuance costs and original issue discounts are written-off as gain or loss on debt extinguishment in the same period. Unamortized debt issuance costs and original issue discounts related to a recognized debt liability are recognized as a direct deduction from the carrying amount of the related long-term debt. Unamortized debt issuance costs related to our revolving credit commitments are recognized as an asset. |
Goodwill | Goodwill Goodwill represents the purchase price paid for acquired businesses in excess of the identifiable acquired assets and assumed liabilities. Goodwill is not amortized, but is tested for impairment annually and whenever an event occurs or circumstances change such that it is more likely than not that the fair value of the reporting unit is less than its carrying amounts. At December 31, 2018 and 2017 , we identified the Partnership as having one reporting unit that corresponded to our one reportable segment. We have selected December 1 to perform our annual goodwill impairment test. For the years ended December 31, 2018 and 2017 , we performed a qualitative assessment and determined it was more likely than not that the estimated fair value of the reporting unit substantially exceeded the related carrying value of our reporting unit. Accordingly, we were not required to perform any quantitative or additional testing. We did not record any goodwill impairment for the years ended December 31, 2018 and 2017 (see Note 10, Goodwill and Other Intangible Assets ). |
Unit-Based Compensation | Unit-Based Compensation Employees, consultants and directors of the General Partner and any of its affiliates are eligible to receive equity awards and other forms of compensation under the Enviva Partners, LP Long-Term Incentive Plan (the “LTIP”). Phantom units issued in tandem with corresponding distribution equivalent rights (“DERs”) are granted to employees of Enviva Management Company, LLC (“Enviva Management”), a wholly owned subsidiary of the sponsor, who provide services to us and to certain non-employee directors of the General Partner. Phantom unit awards vest subject to the satisfaction of service requirements and/or the achievement of certain performance goals following which common units in the Partnership will be delivered to the holder of the phantom units. For accounting purposes, units granted to employees of our affiliates (excluding the General Partner, the Partnership, and subsidiaries of the Partnership) are treated as if they were distributed by the Partnership. Such affiliates recognize compensation expense for the phantom units awarded to their employees, a portion of which is allocated to us under the MSA (see Note 13, Related-Party Transactions-Management Services Agreement and Note 16, Equity-Based Awards ). We also recognize compensation expense for phantom units awarded to non-employee directors. Our outstanding phantom unit awards under the LTIP do not have a cash option and are classified as equity on our balance sheets. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Fair Value Measurements | Fair Value Measurements We apply authoritative accounting guidance for fair value measurements of financial and nonfinancial assets and liabilities. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We determine fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted, quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
Recently Adopted and Recently Issued not yet Adopted Accounting Standards | Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“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 Accounting Standard Codification (“ASC”) Topic ASC 606, revenue derived from our off-take contracts will continue to be classified as product sales. Revenue is recognized when control of the wood pellets passes to the customer which occurs 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 product sales when we determine that we act as a principal and control the wood pellets before they are transferred to the customer. 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. Other revenue includes fees associated with customer requests to cancel, defer or accelerate shipments in satisfaction of the related performance obligation and third- and related-party terminal services fees. 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: Year Ended December 31, 2018 As Reported Adoption of ASC 606 Without Adoption of ASC 606 Product sales $ 564,010 $ (23,159 ) $ 540,851 Other revenue 9,731 1,723 11,454 Cost of goods sold 504,300 (21,436 ) 482,864 Gross margin $ 69,441 $ — $ 69,441 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 two of the current goodwill impairment test. Step two 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 early adopted this ASU in connection with our December 2018 annual impairment test. Recently Issued Accounting Standards not yet Adopted In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (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. For example, ineffectiveness related to designated and qualifying cash flow hedges no longer needs to be measured so it would be recorded to accumulated other comprehensive income, as opposed to being recorded to earnings under the previous guidance. 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 adopting the standard on January 1, 2019. We do not expect the adoption of ASU 2017-12 will have a material impact on our consolidated financial statements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which established a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term of longer than 12 months. Leases will be classified as either finance or operating leases, with affects the pattern and classification of expense recognition in the income statement. We are adopting this new standard on January 1, 2019. A modified retrospective transition approach was required, whereby the new standard is to be applied to all leases existing at the date of initial application. We elected to use the effective date as its date of initial application, as opposed to the beginning of the earliest comparative period presented in the financial statements. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The standard will have a material impact on our consolidated balance sheets, but will not have a material impact on our consolidated income statements. The new standard provided a number of optional practical expedients in transition. We elected the “package of practical expedients,” which permitted us not to reassess our prior conclusions under the previous guidance concerning lease identification, lease classification and initial direct leasing costs. We elected the practical expedient pertaining to land easements. We did not elect the practical expedient pertaining to the use of hindsight. The most significant impact will be the recognition of ROU assets and corresponding lease liabilities related to real estate, machinery, equipment and other operating leases, while our accounting for capital leases will remain substantially unchanged. On adoption, we currently expect to recognize additional ROU assets in the range of $27.0 million to $35.0 million and additional corresponding operating liabilities in the range of $29.0 million to $37.0 million . These amounts are based on the present value of the remaining minimum rental payments under previous leasing standards for existing operating leases, except the ROU asset is less to reflect approximately $2.0 million of deferred rent assets already recorded as of December 31, 2018. We do not expect a significant change to our activities, results of operations, or cash flows from the new standard. We are currently finalizing our analysis of the inventory of leases and the schedule of the remaining minimum rental payments as of the adoption date of the incremental borrowing rates as of the adoption date applied to the operating leases, the implementation of the lease accounting system, the controls executed for adoption, and of the design and implementation of controls to be applied after the adoption. On June 20, 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , aligning the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date, which would reduce volatility in our general and administrative expense by no longer having to remeasure the fair value of phantom unit awards under the LTIP to employees of the Provider. Entities will apply the new guidance to equity-classified nonemployee awards for which a measurement date has not been established and liability-classified nonemployee awards that have not been settled as of the date of adoption by recognizing a cumulative-effect adjustment to retained earnings as of the beginning of the annual period of adoption. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are adopting ASU 2018-07 on January 1, 2019. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of useful lives | The principal useful lives are as follows: Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years Property, plant and equipment, net consisted of the following at December 31 : 2018 2017 Land $ 13,492 $ 13,492 Land improvements 44,990 42,962 Buildings 196,574 196,153 Machinery and equipment 434,776 413,349 Vehicles 635 635 Furniture and office equipment 6,148 5,970 Leasehold improvements 987 987 697,602 673,548 Less accumulated depreciation (154,967 ) (117,067 ) 542,635 556,481 Construction in progress 14,393 5,849 Total property, plant and equipment, net $ 557,028 $ 562,330 |
Schedule of impact of the adoption of ASC 606 | The table below indicates the impact of the adoption of ASC 606 on revenue and cost of goods sold: Year Ended December 31, 2018 As Reported Adoption of ASC 606 Without Adoption of ASC 606 Product sales $ 564,010 $ (23,159 ) $ 540,851 Other revenue 9,731 1,723 11,454 Cost of goods sold 504,300 (21,436 ) 482,864 Gross margin $ 69,441 $ — $ 69,441 |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties, Including Business and Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of revenue from major customers | Product sales to third-party customers that accounted for 10% or a greater share of consolidated product sales for each of the years ended December 31 are as follows: 2018 2017 2016 Customer A 46 % 66 % 75 % Customer B 11 % 12 % 15 % Customer C 16 % 2 % — % Customer D 17 % 15 % — % |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following at December 31 : 2018 2017 Raw materials and work-in-process $ 4,936 $ 4,516 Consumable tooling 17,561 14,447 Finished goods 8,993 4,573 Total inventories $ 31,490 $ 23,536 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | The principal useful lives are as follows: Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years Property, plant and equipment, net consisted of the following at December 31 : 2018 2017 Land $ 13,492 $ 13,492 Land improvements 44,990 42,962 Buildings 196,574 196,153 Machinery and equipment 434,776 413,349 Vehicles 635 635 Furniture and office equipment 6,148 5,970 Leasehold improvements 987 987 697,602 673,548 Less accumulated depreciation (154,967 ) (117,067 ) 542,635 556,481 Construction in progress 14,393 5,849 Total property, plant and equipment, net $ 557,028 $ 562,330 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instrument Detail [Abstract] | |
Schedule of fair values of the derivative financial instruments included in the consolidated balance sheets | The fair value of derivative instruments as of December 31, 2018 was as follows: Balance Sheet Location Asset Derivatives Liability Derivatives Derivatives designated as cash flow hedging instruments: Interest rate swaps: Interest rate swap Other current assets $ 508 $ — Interest rate swap Other long-term assets 118 — Total derivatives designated as cash flow hedging instruments $ 626 $ — Derivatives not designated as cash flow hedging instruments: Forward contracts: Foreign currency exchange forward contracts Prepaid and other current assets $ 794 $ — Foreign currency exchange forward contracts Other long-term assets 1,810 — Foreign currency exchange forward contracts Accrued and other current liabilities — 68 Foreign currency exchange forward contracts Other long-term liabilities — 179 Purchased options: Foreign currency purchased option contracts Prepaid and other current assets 22 — Foreign currency purchased option contracts Other long-term assets 3,348 — Total derivatives not designated as cash flow hedging instruments $ 5,974 $ 247 Net gains included in product sales and cost of goods sold related to the change of fair market value of derivative instruments not designated as hedging instruments during the year ended December 31, 2018 were $8.4 million and $0.2 million , respectively. The fair value of derivative instruments as of December 31, 2017 were as follows: Balance Sheet Location Asset Derivatives Liability Derivatives Derivatives designated as cash flow 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 cash flow hedging instruments $ 1,651 $ 2,118 Derivatives not designated as cash flow 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 liabilities 45 — Total derivatives not designated as cash flow 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 designated as cash flow hedges and the related changes in accumulated other comprehensive income and the gains and losses recognized in earnings for the year ended December 31, 2018 were as follows: Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency exchange forward contracts $ 4,532 Product sales $ — Product sales $ 2,413 Foreign currency exchange purchased option contracts 749 Other revenue — Product sales (470 ) Interest rate swap 374 Other income (expense) 231 Other income (expense) (13 ) The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive income and the gains and losses recognized in earnings for the year ended December 31, 2017 were as follows: Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency exchange forward contracts $ (4,126 ) Product sales $ (15 ) Other income (expense) $ (1,237 ) Foreign currency exchange forward contracts (1,411 ) Other revenue — Other income (expense) (368 ) Interest rate swap 74 Other income (expense) (221 ) Other income (expense) 13 |
Schedule of notional amounts of outstanding derivative instruments designated as cash flow hedges associated with outstanding or unsettled derivative instruments | The notional amounts of outstanding derivative instruments associated with outstanding or unsettled derivative instruments as of December 31, 2018 were as follows: 2018 2017 Foreign exchange forward contracts in GBP £ 42,170 £ 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 $ 39,829 $ 44,756 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value of long-term debt and capital lease obligations | The carrying amount and estimated fair value of long-term debt and capital lease obligations as of December 31, 2018 and December 31, 2017 was as follows: December 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Senior notes $ 352,843 $ 359,943 $ 352,224 $ 374,624 Other long-term debt and capital lease obligations 79,812 79,812 48,793 48,793 Total long-term debt and capital lease obligations $ 432,655 $ 439,755 $ 401,017 $ 423,417 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets consisted of the following at: Amortization Period December 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Favorable customer contracts 3 years $ 8,700 $ (8,700 ) $ — $ 8,700 $ (8,591 ) $ 109 Wood pellet contract 6 years 1,750 (1,750 ) — 1,750 (1,750 ) — Total intangible assets $ 10,450 $ (10,450 ) $ — $ 10,450 $ (10,341 ) $ 109 |
Long-Term Debt and Capital Le_2
Long-Term Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt and capital lease obligations | Long-term debt and capital lease obligations at carrying value consisted of the following at December 31 : 2018 2017 Senior Notes, net of unamortized discount, premium and debt issuance of $2.2 million as of December 31, 2018 and $2.8 million as of December 31, 2017 $ 352,843 $ 352,224 Senior Secured Credit Facilities, Tranche A-1 Advances, net of unamortized discount and debt issuance costs of $0 as of December 31, 2018 and $1.0 million as of December 31, 2017 — 39,263 Senior Secured Credit Facilities, Tranche A-3 Advances, net of unamortized discount and debt issuance costs of $0 as of December 31, 2018 and $0.1 million as of December 31, 2017 — 4,372 Senior Secured Credit Facilities, revolving credit commitments 73,000 — Other loans 2,015 2,023 Capital leases 4,797 3,135 Total long-term debt and capital lease obligations 432,655 401,017 Less current portion of long-term debt and capital lease obligations (2,722 ) (6,186 ) Long-term debt and capital lease obligations, excluding current installments $ 429,933 $ 394,831 |
Schedule of senior note redemption prices as a percentage of principle amount | We may redeem all or a portion of the Senior Notes at redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, on the Senior Notes redeemed to the applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the redemption date), if redeemed during the twelve-month period beginning November 1 on the years indicated below: Year: Percentages 2019 102.125 % 2020 100.000 % 2021 and thereafter 100.000 % |
Schedule of debt maturities | The aggregate maturities of long-term debt and capital lease obligations, net of unamortized discount and debt issuance costs, are as follows: Year Ended December 31, 2019 $ 2,098 2020 2,766 2021 354,788 2022 3 2023 73,000 Total long-term debt and capital lease obligations $ 432,655 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party amounts included on the consolidated statements of income | Related-party amounts included on the consolidated statements of income were the following for each of the years ended December 31 : 2018 2017 2016 Other revenue $ 3,545 $ 5,912 $ — Cost of goods sold 84,148 69,445 41,467 General and administrative expenses 17,096 15,132 17,236 |
Partners' Capital (Tables)
Partners' Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Partners' Capital Notes [Abstract] | |
Schedule of cash distribution paid or declared | The following table details the cash distribution paid or declared (in millions, except per unit amounts): Quarter Ended Declaration Date Record Date Payment Date Distribution Per Unit Total Cash Distribution Total Payment to General Partner for Incentive Distribution Rights March 31, 2017 May 3, 2017 May 18, 2017 May 30, 2017 $ 0.5550 $ 14.6 $ 0.5 June 30, 2017 August 2, 2017 August 15, 2017 August 29, 2017 $ 0.5700 $ 15.0 $ 0.7 September 30, 2017 November 2, 2017 November 15, 2017 November 29, 2017 $ 0.6150 $ 16.2 $ 1.1 December 31, 2017 January 31, 2018 February 15, 2018 February 28, 2018 $ 0.6200 $ 16.3 $ 1.1 March 31, 2018 May 3, 2018 May 15, 2018 May 29, 2018 $ 0.6250 $ 16.5 $ 1.3 June 30, 2018 August 1, 2018 August 15, 2018 August 29, 2018 $ 0.6300 $ 16.7 $ 1.4 September 30, 2018 October 31, 2018 November 15, 2018 November 29, 2018 $ 0.6350 $ 16.8 $ 1.5 December 31, 2018 January 29, 2019 February 15, 2019 February 28, 2019 $ 0.6400 $ 17.0 $ 1.7 |
Schedule of changes in accumulated other comprehensive income | The following table presents the changes in accumulated other comprehensive income: Unrealized Losses on Derivative Instruments Balance at December 31, 2016 $ 595 Net unrealized losses (5,463 ) Reclassification of net losses realized into net income 1,828 Accumulated other comprehensive income at December 31, 2017 (3,040 ) Net unrealized losses 5,655 Reclassification of net gains on cash flow hedges realized into net income (2,178 ) Currency translation adjustment 2 Accumulated other comprehensive loss at December 31, 2018 $ 439 |
Equity-Based Awards (Tables)
Equity-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Affiliate Grants | |
Equity-Based Awards | |
Schedule of phantom unit awards | A summary of the Affiliate Grants for the years ended December 31, 2018 , 2017 and 2016 is as follows: Time-Based Phantom Units Performance-Based Total Affiliate Grant Units Weighted- Units Weighted- Units Weighted- Nonvested December 31, 2016 346,153 $ 19.32 235,355 $ 19.46 581,508 $ 19.37 Granted 301,400 $ 25.67 111,104 $ 25.51 412,504 $ 25.63 Forfeitures (51,687 ) $ 21.77 (95,545 ) $ 18.36 (147,232 ) $ 18.36 Vested — $ — (139,810 ) $ 20.20 (139,810 ) $ 20.20 Nonvested December 31, 2017 595,866 $ 22.32 111,104 $ 25.52 706,970 $ 22.82 Granted 398,729 $ 29.15 171,104 $ 28.92 569,833 $ 29.08 Adjusted — $ — 19,832 $ 18.19 19,832 $ 18.19 Forfeitures (89,119 ) $ 25.59 (17,469 ) $ 25.76 (106,588 ) $ 25.62 Vested (181,536 ) $ 21.42 (45,059 ) $ 23.80 (226,595 ) $ 21.89 Nonvested December 31, 2018 723,940 $ 25.91 239,512 $ 27.65 963,452 $ 26.34 ____________________________________________ (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 | A summary of the Director Grant unit awards subject to vesting for the years ended December 31, 2018 , 2017 and 2016, is as follows: Time-Based Phantom Units Performance-Based Phantom Units Total Director Grant Phantom Units Units Weighted- Average Grant Date Fair Value (per unit)(1) Units Weighted- Average Grant Date Fair Value (per unit)(1) Units Weighted- Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 2016 17,724 $ 22.57 — $ — 17,724 $ 22.57 Granted 15,840 $ 25.25 — $ — 15,840 $ 25.25 Forfeitures — $ — — $ — — $ — Vested (17,724 ) $ 22.57 — $ — (17,724 ) $ 22.57 Nonvested December 31, 2017 15,840 $ 25.25 — $ — 15,840 $ 25.25 Granted 13,964 $ 28.65 — $ — 13,964 $ 28.65 Forfeitures — $ — — $ — — $ — Vested (15,840 ) $ 25.25 — $ — (15,840 ) $ 25.25 Nonvested December 31, 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) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of net income (loss) per limited partner unit | The computation of net income (loss) per limited partner unit is a follows for the years ended December 31 : 2018 2017 2016 Net income $ 6,952 $ 14,373 $ 13,463 Less net loss attributable to noncontrolling partners’ interests — 3,140 5,804 Net income attributable to Enviva Partners, LP $ 6,952 $ 17,513 $ 19,267 Less: Pre-acquisition income from inception to December 13, 2016 from operations of Enviva Pellets Sampson, LLC Drop-Down allocated to General Partner — — (3,231 ) Less: Pre-acquisition income from inception to October 1, 2017 from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — (3,049 ) (2,110 ) Enviva Partners, LP limited partners’ interest in net income $ 6,952 $ 20,562 $ 24,608 Less: Distributions declared on: Common units $ 54,604 $ 34,033 $ 26,933 Subordinated units through end of subordination period 12,407 28,096 24,167 IDRs 5,867 3,398 1,077 Total distributions declared 72,878 65,527 52,177 Earnings less than distributions $ (65,926 ) $ (44,965 ) $ (27,569 ) |
Schedule of weighted average common units outstanding | Year Ended December 31, 2016 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 13,002 11,905 — Effect of nonvested phantom units 557 — — Weighted-average common units outstanding—diluted 13,559 11,905 — Year Ended December 31, 2017 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 14,403 11,905 — Effect of nonvested phantom units 948 — — Weighted-average common units outstanding—diluted 15,351 11,905 — Basic and diluted net income per limited partner unit is follows: Year Ended December 31, 2018 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 21,533 4,893 — Effect of nonvested phantom units 1,020 — — Weighted-average common units outstanding—diluted 22,553 4,893 — |
Schedule of basic earnings (loss) per common, subordinated and general partner units | Year Ended December 31, 2016 Common Units Subordinated Units General Partner Total Distributions declared $ 26,933 $ 24,167 $ 1,077 $ 52,177 Earnings less than distributions (14,531 ) (13,038 ) — (27,569 ) Net income attributable to partners $ 12,402 $ 11,129 $ 1,077 $ 24,608 Weighted-average units outstanding—basic 13,002 11,905 Weighted-average units outstanding—diluted 13,559 11,905 Net income per limited partner unit—basic $ 0.95 $ 0.93 Net income per limited partner unit—diluted $ 0.91 $ 0.93 Year Ended December 31, 2017 Common Units Subordinated Units General Partner Total Distributions declared $ 34,033 $ 28,096 $ 3,398 $ 65,527 Earnings less than distributions (24,631 ) (20,334 ) — (44,965 ) Net income attributable to partners $ 9,402 $ 7,762 $ 3,398 $ 20,562 Weighted-average units outstanding—basic 14,403 11,905 Weighted-average units outstanding—diluted 15,351 11,905 Net income per limited partner unit—basic $ 0.65 $ 0.65 Net income per limited partner unit—diluted $ 0.61 $ 0.65 Year Ended December 31, 2018 Common Units Subordinated Units General Partner Total Distributions declared $ 54,604 $ 12,407 $ 5,867 $ 72,878 Earnings less than distributions (53,720 ) (12,206 ) — (65,926 ) Net income attributable to partners $ 884 $ 201 $ 5,867 $ 6,952 Weighted-average units outstanding—basic 21,533 4,893 Weighted-average units outstanding—diluted 22,553 4,893 Net income per limited partner unit—basic $ 0.04 $ 0.04 Net income per limited partner unit—diluted $ 0.04 $ 0.04 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under noncancelable operating leases | Future minimum lease payments, excluding those charged under the MSA, for non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2018 are as follows: 2019 $ 3,491 2020 3,088 2021 2,793 2022 2,578 2023 2,563 Thereafter 59,320 Total future minimum lease payments $ 73,833 |
Schedule of future minimum firm terminal services payments | Fixed and determinable portions of the minimum aggregate future payments under these firm terminal and stevedoring services, transportation, and supply agreements for the next five years are as follows: 2019 $ 94,578 2020 173,993 2021 189,073 2022 48,809 2023 29,811 Thereafter 23,138 Total $ 559,402 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of the Partnership's unaudited quarterly financial data | The following table presents our unaudited quarterly financial data. The quarterly results of operations for these periods are not necessarily indicative of future results of operations. Certain amounts related to the change in the fair value of derivatives have been reclassified to product sales from other income for the first and second quarters of 2018 to conform to current period presentation. Basic and diluted earnings per unit are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per unit information may not equal annual basic and diluted earnings per unit. For the Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 125,324 $ 135,596 $ 144,148 $ 168,673 $ 573,741 Gross margin (5,018 ) 19,811 30,119 24,529 69,441 Net (loss) income (19,335 ) 3,544 13,356 9,387 6,952 Enviva Partners, LP limited partners’ interest in net (loss) income (19,335 ) 3,544 13,356 9,387 6,952 Basic (loss) income per limited partner common unit $ (0.78 ) $ 0.08 $ 0.45 $ 0.29 $ 0.04 Diluted (loss) income per limited partner common unit $ (0.78 ) $ 0.08 $ 0.43 $ 0.28 $ 0.04 Basic (loss) income per limited partner subordinated unit $ (0.78 ) $ 0.08 $ — $ — $ 0.04 Diluted (loss) income per limited partner subordinated unit $ (0.78 ) $ 0.08 $ — $ — $ 0.04 For the Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 122,443 $ 127,547 $ 132,223 $ 161,008 $ 543,221 Gross margin 16,368 16,331 20,382 25,721 78,802 Net (loss) income (45 ) 1,497 5,023 7,898 14,373 Enviva Partners, LP limited partners’ interest in net income 2,535 3,862 6,339 7,826 20,562 Basic income per limited partner common unit $ 0.08 $ 0.12 $ 0.20 $ 0.25 $ 0.65 Diluted income per limited partner common unit $ 0.07 $ 0.11 $ 0.19 $ 0.24 $ 0.61 Basic income per limited partner subordinated unit $ 0.08 $ 0.12 $ 0.20 $ 0.25 $ 0.65 Diluted income per limited partner subordinated unit $ 0.08 $ 0.12 $ 0.20 $ 0.25 $ 0.65 |
Description of Business and B_2
Description of Business and Basis of Presentation - (Details) $ / shares in Units, T in Thousands, $ in Millions | Dec. 27, 2017USD ($) | Dec. 14, 2016USD ($)$ / sharesshares | Oct. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2018segmentPlant | Dec. 31, 2016USD ($)T$ / shares | Jan. 31, 2018$ / shares |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Number of industrial-scale production wood pellet production plants in operation | Plant | 6 | ||||||
Number of operating segments | segment | 1 | ||||||
Share price (in dollars per share) | $ / shares | $ 28.65 | ||||||
Enviva Pellets Sampson | DONG Energy Thermal Power A/S | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Take-or-pay off-take contract period | 10 years | ||||||
Annual volume of take-or-pay off-take contract | T | 420 | ||||||
Enviva Pellets Sampson | First Hancock JV | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Off-take contract period | 15 years | ||||||
Annual volume of the off-take contract | T | 95 | ||||||
Sampson, LLC Drop-Down | First Hancock JV | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Issuance of common units (in units) | shares | 1,098,415 | ||||||
Share price (in dollars per share) | $ / shares | $ 27.31 | ||||||
Issuance of common units value | $ 30 | ||||||
Sampson, LLC Drop-Down | Enviva Pellets Sampson | First Hancock JV | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Total consideration | $ 139.6 | ||||||
Purchase price adjustment | $ 5.4 | ||||||
Issuance of common units (in units) | shares | 1,098,415 | ||||||
Share price (in dollars per share) | $ / shares | $ 27.31 | $ 27.31 | |||||
Issuance of common units value | $ 30 | ||||||
Related party receivables and payables, eliminated | 1.2 | $ 1.2 | |||||
Wilmington, LLC Drop-Down | First Hancock JV | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Total consideration | $ 130 | ||||||
Purchase price adjustment | 1.4 | ||||||
Total cash consideration | 54.6 | ||||||
Deferred consideration paid to Hancock JV | $ 74 | ||||||
Enviva Pellets Wiggins, LLC | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Loss (gain) on disposal of assets | $ 0.8 | ||||||
Enviva Partners Finance Corp. | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva GP, LLC | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 99.999% | ||||||
Enviva, LP | Enviva GP, LLC | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 0.001% | ||||||
Enviva Pellets Amory, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Ahoskie, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Port Of Chesapeake, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Northampton, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Southampton, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Cottondale, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Energy Services, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Pellets Sampson, LLC | First Hancock JV | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Total consideration | $ 175 | ||||||
Enviva Pellets Sampson, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Port of Wilmington, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Port of Panama City, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva MLP International Holdings, LLC | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% | ||||||
Enviva Energy Services Cooperatief, U.A. | Enviva, LP | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 99.00% | ||||||
Enviva Energy Services Cooperatief, U.A. | Enviva MLP International Holdings | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 1.00% | ||||||
Enviva Energy Services (Jersey), Limited | Enviva MLP International Holdings | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Percentage of interest in subsidiaries | 100.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Accounts Receivable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 17 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 6 years |
Furniture and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Furniture and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Significant Accounting Polici_6
Significant Accounting Policies - Goodwill and Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2018segmentreporting_unit | |
Accounting Policies [Abstract] | |
Number of reporting units for goodwill analysis | reporting_unit | 1 |
Number of operating segments | segment | 1 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Impact of the Adoption of ASC 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Net revenue | $ 168,673 | $ 144,148 | $ 135,596 | $ 125,324 | $ 161,008 | $ 132,223 | $ 127,547 | $ 122,443 | $ 573,741 | $ 543,221 | $ 464,276 | |
Cost of goods sold | [1] | 461,735 | 419,616 | 357,418 | ||||||||
Gross margin | $ 24,529 | $ 30,119 | $ 19,811 | $ (5,018) | $ 25,721 | $ 20,382 | $ 16,331 | $ 16,368 | 69,441 | 78,802 | 76,772 | |
Product sales | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Net revenue | 564,010 | $ 522,250 | $ 444,489 | |||||||||
Cost of goods sold | 504,300 | |||||||||||
Gross margin | 69,441 | |||||||||||
Other revenue | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Net revenue | 9,731 | |||||||||||
Without Adoption of ASC 606 | Product sales | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Net revenue | 540,851 | |||||||||||
Cost of goods sold | 482,864 | |||||||||||
Gross margin | 69,441 | |||||||||||
Without Adoption of ASC 606 | Other revenue | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Net revenue | 11,454 | |||||||||||
Adoption of ASC 606 | Difference between revenue guidance before and after ASC 606 | Product sales | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Net revenue | (23,159) | |||||||||||
Cost of goods sold | (21,436) | |||||||||||
Gross margin | 0 | |||||||||||
Adoption of ASC 606 | Difference between revenue guidance before and after ASC 606 | Other revenue | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Net revenue | $ 1,723 | |||||||||||
[1] | See Note 13, Related-Party Transactions |
Significant Accounting Polici_8
Significant Accounting Policies - Recently Issued Accounting Standards not yet Adopted (Details) - USD ($) | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | |||
Restricted Cash | $ 0 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid Rent | $ 2,000,000 | ||
Forecast | ASU 2016-02 | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU assets | $ 27,000,000 | ||
ROU liability | 29,000,000 | ||
Forecast | ASU 2016-02 | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU assets | 35,000,000 | ||
ROU liability | $ 37,000,000 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable related to product sales | $ 51,300,000 | $ 78,000,000 |
Deferred revenue related to off-take contracts | 300,000 | 0 |
Remaining performance obligation subject to conditions precedent | 600,000,000 | |
Unbilled | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable related to product sales | $ 46,000,000 | $ 56,300,000 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) $ in Billions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected remaining performance obligation | 1 year |
Remaining performance obligation, percentage | 9.20% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected remaining performance obligation | |
Remaining performance obligation, percentage | 10.80% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 7.2 |
Significant Risks and Uncerta_3
Significant Risks and Uncertainties, Including Business and Credit Concentrations (Details) - Product sales - Percentage of sales | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Customer A | |||
Concentration Risk | |||
Concentration risk (as a percent) | 46.00% | 66.00% | 75.00% |
Customer B | |||
Concentration Risk | |||
Concentration risk (as a percent) | 11.00% | 12.00% | 15.00% |
Customer C | |||
Concentration Risk | |||
Concentration risk (as a percent) | 16.00% | 2.00% | 0.00% |
Customer D | |||
Concentration Risk | |||
Concentration risk (as a percent) | 17.00% | 15.00% | 0.00% |
Inventory Impairment and Asse_2
Inventory Impairment and Asset Disposal (Details) MT in Thousands, $ in Thousands | Feb. 27, 2018MT | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Inventory Disclosure [Abstract] | |||
Wood pellets damaged, MT | MT | 43 | ||
Asset impairment, inventory write-off and disposal costs, emergency response costs, asset repair costs and business continuity activities | $ 60,300 | ||
Insurance recovery | 62,100 | ||
Loss Contingencies [Line Items] | |||
Insurance receivables | 5,140 | $ 0 | |
Insurance recoveries | |||
Loss Contingencies [Line Items] | |||
Insurance receivables | 3,800 | ||
Cost of goods sold | |||
Loss Contingencies [Line Items] | |||
Insurance proceeds | 25,500 | ||
Other income | |||
Loss Contingencies [Line Items] | |||
Insurance proceeds | $ 1,800 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-process | $ 4,936 | $ 4,516 |
Consumable tooling | 17,561 | 14,447 |
Finished goods | 8,993 | 4,573 |
Total inventories | $ 31,490 | $ 23,536 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 697,602 | $ 673,548 | |
Less accumulated depreciation | (154,967) | (117,067) | |
Property, plant and equipment excluding construction in progress | 542,635 | 556,481 | |
Construction in progress | 14,393 | 5,849 | |
Total property, plant and equipment, net | 557,028 | 562,330 | |
Total depreciation expense | 40,600 | 39,100 | $ 25,700 |
Interest capitalized related to construction in progress | 200 | ||
Capital leases, cost | 7,800 | 4,700 | |
Capital leases, accumulated depreciation | 3,000 | 1,200 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 13,492 | 13,492 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 44,990 | 42,962 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 196,574 | 196,153 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 434,776 | 413,349 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 635 | 635 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 6,148 | 5,970 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 987 | $ 987 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net gains included in accumulated other comprehensive income | $ 1,900 | $ 1,600 | |
Unrealized net gains on derivative instruments | 8,600 | ||
Unrealized net gains on derivative instruments | (4,907) | 1,720 | $ 1,284 |
Realized gains on derivatives | 4,600 | ||
Net derivative settlement termination payment amount | 6,400 | ||
Product sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net gains on derivative instruments | 8,400 | ||
Cost of goods sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net gains on derivative instruments | $ 200 | ||
Other income (expense) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net gains on derivative instruments | $ 200 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives designated as cash flow hedging instruments | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | $ 626 | $ 1,651 |
Liability Derivatives | 0 | 2,118 |
Derivatives designated as cash flow hedging instruments | Other current assets | Interest rate swap | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 508 | |
Liability Derivatives | 0 | |
Derivatives designated as cash flow hedging instruments | Other long-term assets | Interest rate swap | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 118 | 407 |
Liability Derivatives | 0 | 0 |
Derivatives designated as cash flow hedging instruments | Prepaid and other current assets | Interest rate swap | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 220 | |
Liability Derivatives | 0 | |
Derivatives designated as cash flow hedging instruments | Prepaid and other current assets | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 1,024 | |
Liability Derivatives | 0 | |
Derivatives designated as cash flow hedging instruments | Other long-term liabilities | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 0 | |
Liability Derivatives | 2,118 | |
Derivatives not designated as cash flow hedging instruments | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 5,974 | 172 |
Liability Derivatives | 247 | 1,334 |
Derivatives not designated as cash flow hedging instruments | Other long-term assets | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 1,810 | |
Liability Derivatives | 0 | |
Derivatives not designated as cash flow hedging instruments | Other long-term assets | Foreign currency purchased option contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 3,348 | |
Liability Derivatives | 0 | |
Derivatives not designated as cash flow hedging instruments | Prepaid and other current assets | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 794 | 124 |
Liability Derivatives | 0 | 0 |
Derivatives not designated as cash flow hedging instruments | Prepaid and other current assets | Foreign currency purchased option contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 22 | 3 |
Liability Derivatives | 0 | 0 |
Derivatives not designated as cash flow hedging instruments | Accrued and other current liabilities | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | 68 | 806 |
Derivatives not designated as cash flow hedging instruments | Other long-term liabilities | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | $ 179 | 528 |
Derivatives not designated as cash flow hedging instruments | Other long-term liabilities | Foreign currency purchased option contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 45 | |
Liability Derivatives | $ 0 |
Derivative Instruments - Change
Derivative Instruments - Changes In Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency exchange forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | $ 4,532 | $ (4,126) |
Foreign currency exchange forward contracts | Product sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | 0 | 15 |
Foreign currency exchange forward contracts | Other revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2,413 | |
Foreign currency exchange forward contracts | Other expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (1,237) | |
Foreign currency purchased option contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | 749 | (1,411) |
Foreign currency purchased option contracts | Other revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | 0 | 0 |
Foreign currency purchased option contracts | Other expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (470) | (368) |
Interest rate swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | 374 | 74 |
Interest rate swap | Other revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | (231) | |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (13) | 13 |
Interest rate swap | Other expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | $ 221 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts (Details) € in Thousands, £ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) |
Foreign currency exchange forward contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Notional amount | £ 42,170 | € 14,300 | £ 46,465 | € 5,350 | ||
Foreign currency purchased option contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Notional amount | £ 39,365 | € 1,675 | £ 34,050 | € 0 | ||
Interest rate swap | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Notional amount | $ 39,829 | $ 44,756 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total long-term debt and capital lease obligations | $ 432,655 | $ 401,017 |
Recurring | Level 2 | Carrying Amount | ||
Senior notes | 352,843 | 352,224 |
Other long-term debt and capital lease obligations | 79,812 | 48,793 |
Total long-term debt and capital lease obligations | 432,655 | 401,017 |
Recurring | Level 2 | Fair Value | ||
Senior notes | 359,943 | 374,624 |
Other long-term debt and capital lease obligations | 79,812 | 48,793 |
Total long-term debt and capital lease obligations | $ 439,755 | $ 423,417 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,450 | $ 10,450 |
Accumulated Amortization | (10,450) | (10,341) |
Net Carrying Amount | $ 0 | 109 |
Favorable customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | |
Gross Carrying Amount | $ 8,700 | 8,700 |
Accumulated Amortization | (8,700) | (8,591) |
Net Carrying Amount | $ 0 | 109 |
Wood pellet contract | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 6 years | |
Gross Carrying Amount | $ 1,750 | 1,750 |
Accumulated Amortization | (1,750) | (1,750) |
Net Carrying Amount | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2010 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Period of wood pellet contract | 6 years | ||||
Amortization expense | $ 0.1 | $ 1.3 | $ 2 | ||
Enviva Pellets Cottondale, LLC | |||||
Acquired Intangible Assets | |||||
Goodwill acquired | $ 80.7 | ||||
IN Group Companies and Enviva Pellets Amory | |||||
Acquired Intangible Assets | |||||
Goodwill acquired | $ 4.9 |
Assets Held for Sale and Diss_2
Assets Held for Sale and Dissolution - (Details) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disposed of by Sale | ||
Assets held for sale | ||
Purchase price of assets sold | $ 0.4 | |
Loss on deconsolidation | 0.8 | |
Loss (gain) on disposal of assets | 3.4 | |
Disposed of by Sale | Administrative Expenses | ||
Assets held for sale | ||
Loss (gain) on disposal of assets | $ (2.6) | |
Enviva Pellets Wiggins, LLC | ||
Assets held for sale | ||
Non-cash charge to earnings | $ 10 |
Long-Term Debt and Capital Le_3
Long-Term Debt and Capital Lease Obligations - Capital Lease Obligation Table (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
Capital Lease Obligations | $ 4,797 | $ 3,135 |
Total long-term debt and capital lease obligations | 432,655 | 401,017 |
Less current portion of long-term debt and capital lease obligations | (2,722) | (6,186) |
Long-term debt and capital lease obligations | 429,933 | 394,831 |
Unamortized discount, premium and debt issuance | 2,200 | 3,900 |
Other loans | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
Long term debt | 2,015 | 2,023 |
Senior Notes | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
Long term debt | 352,843 | 352,224 |
Unamortized discount, premium and debt issuance | 2,200 | 2,800 |
Senior Secured Credit Facilities | Tranche A-1 Advances | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
Long term debt | 0 | 39,263 |
Unamortized discount, premium and debt issuance | 0 | 1,000 |
Senior Secured Credit Facilities | Tranche A-3 Advances | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
Long term debt | 0 | 4,372 |
Unamortized discount, premium and debt issuance | 0 | 100 |
Senior Secured Credit Facilities | Revolving credit commitments | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities [Abstract] | ||
Long term debt | $ 73,000 | $ 0 |
Long-Term Debt and Capital Le_4
Long-Term Debt and Capital Lease Obligations - Senior Notes Due 2021 (Details) | Nov. 01, 2016USD ($) | Oct. 31, 2017USD ($) | Aug. 31, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||||
Proceeds from debt issuance | $ 299,250,000 | $ 131,952,000 | $ 349,500,000 | |||
Sampson, LLC Drop-Down | ||||||
Debt Instrument [Line Items] | ||||||
Debt proceeds used to finance acquisition | $ 139,600,000 | |||||
Senior Secured Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of debt | 159,800,000 | |||||
Senior Notes Due 2021 | Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal | $ 300,000,000 | |||||
Interest rate (as a percent) | 8.50% | |||||
Percentage of ownership of notes that were tendered | 100 | |||||
Debt issuance costs | $ 6,400,000 | |||||
$55.0 Million senior unsecured notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal | $ 55,000,000 | |||||
Debt instrument redemption price percentage | 106.25% | |||||
Proceeds from debt issuance | $ 60,000,000 | |||||
Unamortized discount | 900,000 | |||||
Unamortized premium | $ 3,400,000 |
Long-Term Debt and Capital Le_5
Long-Term Debt and Capital Lease Obligations - Schedule of Senior Note Redemption Prices as a Percentage of Principle Amount (Details) - Senior Notes Due 2021 - Senior Notes Due 2021 | 12 Months Ended |
Dec. 31, 2018 | |
2,019 | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument redemption price percentage | 102.125% |
2,020 | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument redemption price percentage | 100.00% |
2021 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument redemption price percentage | 100.00% |
Long-Term Debt and Capital Le_6
Long-Term Debt and Capital Lease Obligations - Senior Secured Credit Facilities (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 31, 2018USD ($) | Sep. 30, 2018 | Aug. 31, 2018 | Oct. 31, 2016USD ($) | Sep. 30, 2016USD ($) | |
Line of Credit Facility [Line Items] | |||||||||||
Interest expense | $ 36,471,000 | $ 31,744,000 | $ 15,643,000 | ||||||||
Early retirement of debt obligation | $ 751,000 | 0 | 4,438,000 | ||||||||
Total Leverage Ratio | 4.75 | 4.75 | |||||||||
Maturity threshold above senior notes outstanding in a 91 day period | $ 50,000,000 | $ 50,000,000 | |||||||||
Basis point change | 0.0025 | 0.0025 | |||||||||
Leverage ratio during material transaction period | 5 | 5 | |||||||||
Interest coverage ratio | 2.25 | 2.25 | |||||||||
Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage | 0.25% | ||||||||||
Minimum | Eurodollar rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Margin rate | 1.75% | ||||||||||
Minimum | Base rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Margin rate | 0.75% | ||||||||||
Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage | 0.50% | ||||||||||
Maximum | Eurodollar rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Margin rate | 3.00% | ||||||||||
Maximum | Base rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Margin rate | 2.00% | ||||||||||
Senior Secured Credit Facilities | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Repayment of credit facilities | $ 159,900,000 | 159,900,000 | |||||||||
Early retirement of debt obligation | $ 4,400,000 | ||||||||||
Floor rate for Eurodollar term loan borrowings | 1.00% | ||||||||||
Senior Secured Credit Facilities | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Total Leverage Ratio | 4.75 | 4 | |||||||||
Senior Secured Credit Facilities | Maximum | Scheduled | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Total Leverage Ratio | 3.75 | 3.75 | |||||||||
Senior Secured Credit Facilities | Revolving credit commitments | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Revolving credit commitments | $ 100,000,000 | $ 25,000,000 | |||||||||
Commitment fee payable on undrawn commitments (as a percent) | 0.50% | ||||||||||
Commitment fee payable subject to a step down | 0.375% | ||||||||||
Letters of credit outstanding | 4,000,000 | ||||||||||
Long term debt | $ 73,000,000 | $ 73,000,000 | $ 0 | ||||||||
Senior Secured Credit Facilities | Revolving credit commitments | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Total Leverage Ratio | 200.00% | ||||||||||
Senior Secured Credit Facilities | Senior secured credit facilities | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Revolving credit commitments | $ 236,000,000 | ||||||||||
Amended and restated credit agreement | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Total Leverage Ratio | 2.75 | 2.75 | |||||||||
Amended and restated credit agreement | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Total Leverage Ratio | 4.75 | 4.75 | |||||||||
Amended and restated credit agreement | Revolving credit commitments | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Revolving credit commitments | $ 350,000,000 | ||||||||||
Term loan borrowings | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Repayment of credit facilities | $ 41,200,000 | ||||||||||
Early retirement of debt obligation | $ 800,000 | ||||||||||
First Incremental Term Loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest expense | $ 400,000 | ||||||||||
First Incremental Term Loan | Enviva FiberCo. LLC | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Unamortized discount rate (as a percent) | 1.00% | ||||||||||
Wholly owned subsidiary of sponsor | First Incremental Term Loan | Enviva FiberCo. LLC | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Aggregate principal | $ 15,000,000 |
Long-Term Debt and Capital Le_7
Long-Term Debt and Capital Lease Obligations - Related-Party Notes Payable (Details) - Non-controlling interest holder - Enviva Pellets Wiggins construction loan and working capital line - USD ($) $ in Millions | 1 Months Ended | |
Oct. 31, 2016 | Jan. 31, 2016 | |
Debt Instrument [Line Items] | ||
Long term debt | $ 3.3 | |
Related-party notes payable repaid | $ 3.1 |
Long-Term Debt and Capital Le_8
Long-Term Debt and Capital Lease Obligations - Debt Issuance Costs and Original Issue Discounts and Premium (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Unamortized discount, premium and debt issuance | $ 2,200,000 | $ 3,900,000 | |
Debt issuance costs | 2,500,000 | 0 | |
Amortization expense included in interest expense | $ 1,093,000 | $ 1,448,000 | $ 1,893,000 |
Long-Term Debt and Capital Le_9
Long-Term Debt and Capital Lease Obligations - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
2,019 | $ 2,098 | ||
2,020 | 2,766 | ||
2,021 | 354,788 | ||
2,022 | 3 | ||
2,023 | 73,000 | ||
Total long-term debt and capital lease obligations | 432,655 | $ 401,017 | |
Debt Instrument [Line Items] | |||
Depreciation expense | 40,600 | 39,100 | $ 25,700 |
Capital lease obligations | |||
Debt Instrument [Line Items] | |||
Depreciation expense | $ 1,800 | $ 700 | $ 200 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Related Party Amounts Included on the Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other revenue | |||
Related Party Transaction [Line Items] | |||
Related party revenue | $ 3,545 | $ 5,912 | $ 0 |
Cost of goods sold | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 84,148 | 69,445 | 41,467 |
General and administrative expenses | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 17,096 | $ 15,132 | $ 17,236 |
Related-Party Transactions - Ma
Related-Party Transactions - Management Services Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Amount due to related-party | $ 28,225 | $ 26,398 | |
Inventory finished goods | New MSA | |||
Related Party Transaction [Line Items] | |||
MSA related costs included in finished goods inventory | 1,200 | 500 | |
Related-party payable | New MSA | |||
Related Party Transaction [Line Items] | |||
Amount due to related-party | 19,000 | 19,600 | |
Cost of goods sold | New MSA | |||
Related Party Transaction [Line Items] | |||
MSA related expenses incurred | 52,300 | 49,900 | $ 37,900 |
General and administrative expenses | New MSA | |||
Related Party Transaction [Line Items] | |||
MSA related expenses incurred | $ 17,100 | $ 15,100 | $ 17,200 |
Related-Party Transactions - Co
Related-Party Transactions - Common Control Transactions (Details) - USD ($) $ in Millions | Dec. 14, 2016 | Oct. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Sampson, LLC Drop-Down | First Hancock JV | ||||
Related Party Transaction [Line Items] | ||||
Total consideration | $ 175 | |||
Wilmington Drop-Down | ||||
Related Party Transaction [Line Items] | ||||
Total consideration | $ 130 | |||
Deferred consideration | $ 74 | |||
Related-party payables | Wilmington Drop-Down | ||||
Related Party Transaction [Line Items] | ||||
Deferred consideration | $ 74 | |||
Related-party payables, long-term | Wilmington Drop-Down | ||||
Related Party Transaction [Line Items] | ||||
Deferred consideration | $ 74 |
Related-Party Transactions - Re
Related-Party Transactions - Related-Party Indemnification (Details) - First Hancock JV - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | Dec. 31, 2016 |
Sampson, LLC Drop-Down | ||||
Related Party Transaction [Line Items] | ||||
Receivable for reimbursable indemnifiable amounts | $ 0.3 | $ 3 | $ 6.4 | |
Wilmington, LLC Drop-Down | ||||
Related Party Transaction [Line Items] | ||||
Receivable for reimbursable indemnifiable amounts | $ 1.3 | $ 1.8 |
Related-Party Transactions - Sa
Related-Party Transactions - Sampson Construction Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
First Hancock JV | Payment Agreements | |
Related Party Transaction [Line Items] | |
Payment agreement | $ 2.9 |
Related-Party Transactions - Ho
Related-Party Transactions - Holdings TSA (Details) MT in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)MT | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
TSA | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 500,000 | ||
TSA | Wilmington, LLC Drop-Down | Cost of goods sold | |||
Related Party Transaction [Line Items] | |||
Terminal service fees | $ 800,000 | $ 2,800,000 | $ 0 |
TSA | Wilmington, LLC Drop-Down | First Hancock JV | Minimum | |||
Related Party Transaction [Line Items] | |||
Quarterly amounts of pellets to be delivered | MT | 125 | ||
Greenwood contract | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 1,300,000 | $ 0 | $ 0 |
Greenwood contract | Other revenue | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | 2,200,000 | ||
TSA and Greenwood | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 1,800,000 |
Related-Party Transactions - En
Related-Party Transactions - Enviva FiberCo, LLC (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Enviva FiberCo. LLC | |||
Related Party Transaction [Line Items] | |||
Purchase of raw materials | $ 7.1 | $ 8.5 | $ 3.7 |
Related-Party Transactions - Bi
Related-Party Transactions - Biomass Agreements (Details) - Biomass Option Agreement T in Thousands, $ in Millions | Jun. 23, 2017USD ($) | Sep. 07, 2016T | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Enviva Holdings, LP. | |||||
Related Party Transaction [Line Items] | |||||
Wood pellets purchased | $ 1.7 | $ 11.1 | $ 0 | ||
Sampson, LLC Drop-Down | |||||
Related Party Transaction [Line Items] | |||||
Annual volume of wood pellets to be purchased | T | 60 | ||||
Revenue earned from wood pellets sold | $ 2.7 |
Related-Party Transactions - EV
Related-Party Transactions - EVA-MGT Contracts (Details) - First Hancock JV - MT MT in Thousands | Dec. 14, 2016 | Jan. 31, 2016 |
Related Party Transaction [Line Items] | ||
Annual volume of wood pellets to be sold | 375 | |
Secondary Supply Agreement | ||
Related Party Transaction [Line Items] | ||
Annual volume of wood pellets to be sold | 95 |
Related-Party Transactions - Gr
Related-Party Transactions - Greenwood Contract (Details) - Greenwood contract MT in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018MT | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | ||||
Annual volume of wood pellets to be purchased | MT | 550 | |||
Option to increase or decrease volume percent | 10.00% | |||
Wood pellets purchased | $ 26,700,000 | $ 0 | $ 0 | |
Deficiency fees | 700,000 | |||
Inventory finished goods | ||||
Related Party Transaction [Line Items] | ||||
Wood pellets purchased | 500,000 | |||
Related-party payable | ||||
Related Party Transaction [Line Items] | ||||
Wood pellets purchased | 7,900,000 | |||
Cost of goods sold | ||||
Related Party Transaction [Line Items] | ||||
Wood pellets purchased | $ 26,200,000 |
Related-Party Transactions - Lo
Related-Party Transactions - Long-Term Incentive Plan Vesting (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Sponsor | Purchase of common units | |
Related Party Transaction [Line Items] | |
Purchase of common units and satisfaction of related tax withholding obligations | $ 6.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Reserves for uncertain tax position | $ 0 | |
Provision for income tax | 0 | $ 0 |
Enviva Partners Finance Corp. | ||
Provision for income tax | $ 0 | $ 0 |
Partners' Capital - Common and
Partners' Capital - Common and Subordinated Units - Sponsor and Allocations of Net Income (Loss) (Details) - shares | May 30, 2018 | May 09, 2018 | Jan. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Partners' Capital and Distribution | |||||
Conversion of common units ratio (per unit) | 1 | ||||
Allocations to partners (as a percent) | 100.00% | ||||
General Partner | |||||
Partners' Capital and Distribution | |||||
Common units sold (in units) | 81,708 | ||||
Third parties | |||||
Partners' Capital and Distribution | |||||
Common units sold (in units) | 1,265,453 | ||||
Subordinated Units | |||||
Partners' Capital and Distribution | |||||
Limited partner units outstanding | 0 | 11,905,138 | |||
Sponsor | |||||
Partners' Capital and Distribution | |||||
Limited partner units outstanding | 11,905,138 |
Partners' Capital - Incentive D
Partners' Capital - Incentive Distribution Rights (Details) - General Partner Interest | 12 Months Ended |
Dec. 31, 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 (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 08, 2016 | |
Partners' Capital and Distribution | ||||
Proceeds from sale of common units, net of commissions | $ 241,000 | $ 1,938,000 | $ 9,300,000 | |
Common Units | ||||
Partners' Capital and Distribution | ||||
Issuance of common units, net (in units) | 8,408 | 71,368 | ||
Proceeds from sale of common units, net of commissions | $ 200,000 | $ 1,900,000 | ||
Commissions on sale of common units | 100,000 | |||
Deferred issuance costs | $ 200,000 | |||
Common Units | Maximum | ||||
Partners' Capital and Distribution | ||||
Stated value of common units authorized for sale | $ 100,000,000 |
Partners' Capital - Sampson Dro
Partners' Capital - Sampson Drop-Down (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 14, 2016 | Jan. 31, 2018 |
Business Acquisition [Line Items] | ||
Share price (in dollars per share) | $ 28.65 | |
Sampson, LLC Drop-Down | First Hancock JV | ||
Business Acquisition [Line Items] | ||
Issuance of common units (in units) | 1,098,415 | |
Share price (in dollars per share) | $ 27.31 | |
Issuance of common units value | $ 30 |
Partners' Capital - Cash Distri
Partners' Capital - Cash Distributions to Unitholders (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 29, 2019 | Oct. 31, 2018 | Aug. 01, 2018 | May 30, 2018 | May 03, 2018 | Jan. 31, 2018 | Aug. 02, 2017 | May 03, 2017 | Nov. 02, 2016 |
Incentive Distribution Rights | |||||||||
Cash distribution declared (in dollars per unit) | $ 0.635 | $ 0.63 | $ 0.625 | $ 0.6200 | $ 0.5700 | $ 0.5550 | $ 0.6150 | ||
Cash distribution declared | $ 16.8 | $ 16.7 | $ 16.5 | $ 16.3 | $ 15 | $ 14.6 | $ 16.2 | ||
Incentive distribution paid | $ 1.5 | $ 1.4 | $ 1.3 | $ 1.1 | $ 0.7 | $ 0.5 | $ 1.1 | ||
Conversion of common units ratio (per unit) | 1 | ||||||||
Subsequent event | |||||||||
Incentive Distribution Rights | |||||||||
Cash distribution declared (in dollars per unit) | $ 0.64 | ||||||||
Cash distribution declared | $ 17 | ||||||||
Incentive distribution paid | $ 1.7 |
Partners' Capital - Accumulated
Partners' Capital - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in accumulated other comprehensive income | |||
Net unrealized losses | $ 5,655 | $ (5,463) | $ (246) |
Currency translation adjustment | 2 | 0 | 0 |
Accumulated Other Comprehensive Income | |||
Changes in accumulated other comprehensive income | |||
Beginning of period | (3,040) | 595 | |
Net unrealized losses | 5,655 | (5,463) | |
Reclassification of net gains (losses) realized into net income | 2,178 | (1,828) | |
Currency translation adjustment | 2 | ||
End of period | $ 439 | $ (3,040) | $ 595 |
Partners' Capital - Noncontroll
Partners' Capital - Noncontrolling Interest (Details) - USD ($) $ in Thousands | Dec. 27, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Noncontrolling Interest | ||||||||||||
Net loss | $ (9,387) | $ (13,356) | $ (3,544) | $ 19,335 | $ (7,898) | $ (5,023) | $ (1,497) | $ 45 | $ (6,952) | $ (14,373) | $ (13,463) | |
Sampson, LLC Drop-Down | ||||||||||||
Noncontrolling Interest | ||||||||||||
Net loss | 3,300 | |||||||||||
Wilmington, LLC Drop-Down | ||||||||||||
Noncontrolling Interest | ||||||||||||
Net loss | $ 3,100 | $ 2,200 | ||||||||||
Enviva Pellets Wiggins, LLC | ||||||||||||
Noncontrolling Interest | ||||||||||||
Purchase price of assets sold | $ 400 | |||||||||||
Loss on disposal of assets | $ 800 | |||||||||||
Enviva Holdings, LP | Series B | ||||||||||||
Noncontrolling Interest | ||||||||||||
Percentage of interest in subsidiaries | 67.00% |
Equity-Based Awards - Narrative
Equity-Based Awards - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity-Based Awards | |||||||
General and administrative expenses | $ 27,641,000 | $ 30,934,000 | $ 43,089,000 | ||||
Payment for withholding tax | $ 4,536,000 | 0 | 0 | ||||
Share price (in dollars per share) | $ 28.65 | ||||||
Time-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Period in which distribution related to DERs are required to be paid | 60 days | ||||||
Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 139,810 | ||||||
Distribution Equivalent Rights | |||||||
Equity-Based Awards | |||||||
Distributions paid related to DERs | $ 1,800,000 | 1,000,000 | |||||
Distribution Equivalent Rights | Related-party payables | |||||||
Equity-Based Awards | |||||||
Distributions paid related to DERs | $ 900,000 | $ 400,000 | |||||
LTIP | |||||||
Equity-Based Awards | |||||||
Number of common units to be awarded under the plan | 2,738,182 | 2,738,182 | |||||
Affiliate Grants | |||||||
Equity-Based Awards | |||||||
Vesting period | 3 years | ||||||
Grant date fair value | $ 16,600,000 | ||||||
Vested (in units) | 226,595,000 | 139,810,000 | |||||
Granted (in units) | 569,833,000 | 412,504,000 | |||||
Affiliate Grants | General and administrative expenses | |||||||
Equity-Based Awards | |||||||
General and administrative expenses | $ 4,700,000 | $ 3,400,000 | $ 3,100,000 | ||||
Affiliate Grants | Time-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Period in which distribution related to DERs are required to be paid | 60 days | ||||||
Compensation expense | $ 1,600,000 | ||||||
Vested (in units) | 181,536,000 | 0 | |||||
Granted (in units) | 398,729,000 | 301,400,000 | |||||
Affiliate Grants | Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 45,059,000 | 139,810,000 | |||||
Granted (in units) | 171,104,000 | 111,104,000 | |||||
Unpaid DER amounts | $ 900,000 | 700,000 | $ 700,000 | $ 900,000 | |||
Affiliate Grants | Performance-Based Phantom Units | Accrued liabilities | |||||||
Equity-Based Awards | |||||||
Unpaid DER amounts | 700,000 | 400,000 | 400,000 | 700,000 | |||
Affiliate Grants | Performance-Based Phantom Units | Other long-term liabilities | |||||||
Equity-Based Awards | |||||||
Unpaid DER amounts | $ 200,000 | $ 300,000 | $ 300,000 | $ 200,000 | |||
Non Employee Directors | |||||||
Equity-Based Awards | |||||||
Granted (in units) | 420 | ||||||
Director Grants | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 15,840,000 | 17,724,000 | |||||
Granted (in units) | 13,964,000 | 15,840,000 | |||||
Director Grants | Time-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Compensation expense | $ 400,000 | $ 500,000 | |||||
Vested (in units) | 15,840,000 | 17,724,000 | |||||
Fair value of units granted | $ 400,000 | ||||||
Granted (in units) | 13,964,000 | 15,840,000 | |||||
Director Grants | Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 0 | 0 | |||||
Granted (in units) | 0 | 0 | |||||
General Partner | |||||||
Equity-Based Awards | |||||||
Units acquired | 81,708 | ||||||
Share-based compensation | LTIP | Time-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 181,536 | ||||||
Payment for withholding tax | $ 2,900,000 | ||||||
Share-based compensation | LTIP | Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 45,059 | ||||||
Share-based compensation | General Partner | Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Payment for withholding tax | $ 2,300,000 | ||||||
Share-based compensation | Provider | |||||||
Equity-Based Awards | |||||||
Payment for withholding tax | 1,700,000 | ||||||
Change in fair value | $ 100,000 |
Equity-Based Awards - Schedule
Equity-Based Awards - Schedule of Phantom Unit Awards (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance-Based Phantom Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Vested (in units) | (139,810) | ||
Affiliate Grants | |||
Equity-Based Awards | |||
Vesting period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 706,970,000 | 581,508,000 | |
Granted (in units) | 569,833,000 | 412,504,000 | |
Adjusted (in units) | 19,832,000 | ||
Forfeitures (in units) | (106,588,000) | (147,232,000) | |
Vested (in units) | (226,595,000) | (139,810,000) | |
Nonvested at the end of the period (in units) | 706,970,000 | 963,452,000 | 706,970,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 22.82 | $ 19.37 | |
Granted (in dollars per unit) | 29.08 | 25.63 | |
Adjusted (in dollars per unit) | 18.19 | ||
Forfeitures (in dollar per unit) | 25.62 | 18.36 | |
Vested (in dollars per unit) | 21.89 | 20.20 | |
Nonvested at the end of the period (in dollars per unit) | $ 22.82 | $ 26.34 | $ 22.82 |
Affiliate Grants | Time-Based Phantom Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 595,866,000 | 346,153,000 | |
Granted (in units) | 398,729,000 | 301,400,000 | |
Adjusted (in units) | 0 | ||
Forfeitures (in units) | (89,119,000) | (51,687,000) | |
Vested (in units) | (181,536,000) | 0 | |
Nonvested at the end of the period (in units) | 595,866,000 | 723,940,000 | 595,866,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 22.32 | $ 19.32 | |
Granted (in dollars per unit) | 29.15 | 25.67 | |
Adjusted (in dollars per unit) | 0 | ||
Forfeitures (in dollar per unit) | 25.59 | 21.77 | |
Vested (in dollars per unit) | 21.42 | 0 | |
Nonvested at the end of the period (in dollars per unit) | $ 22.32 | $ 25.91 | $ 22.32 |
Affiliate Grants | Performance-Based Phantom Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 111,104,000 | 235,355,000 | |
Granted (in units) | 171,104,000 | 111,104,000 | |
Adjusted (in units) | 19,832,000 | ||
Forfeitures (in units) | (17,469,000) | (95,545,000) | |
Vested (in units) | (45,059,000) | (139,810,000) | |
Nonvested at the end of the period (in units) | 111,104,000 | 239,512,000 | 111,104,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 25.52 | $ 19.46 | |
Granted (in dollars per unit) | 28.92 | 25.51 | |
Adjusted (in dollars per unit) | 18.19 | ||
Forfeitures (in dollar per unit) | 25.76 | 18.36 | |
Vested (in dollars per unit) | 23.80 | 20.20 | |
Nonvested at the end of the period (in dollars per unit) | $ 25.52 | $ 27.65 | $ 25.52 |
Director Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 15,840,000 | 17,724,000 | |
Granted (in units) | 13,964,000 | 15,840,000 | |
Forfeitures (in units) | 0 | 0 | |
Vested (in units) | (15,840,000) | (17,724,000) | |
Nonvested at the end of the period (in units) | 15,840,000 | 13,964,000 | 15,840,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 25.25 | $ 22.57 | |
Granted (in dollars per unit) | 28.65 | 25.25 | |
Forfeitures (in dollar per unit) | 0 | 0 | |
Vested (in dollars per unit) | 25.25 | 22.57 | |
Nonvested at the end of the period (in dollars per unit) | $ 25.25 | $ 28.65 | $ 25.25 |
Director Grants | Time-Based Phantom Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 15,840,000 | 17,724,000 | |
Granted (in units) | 13,964,000 | 15,840,000 | |
Forfeitures (in units) | 0 | 0 | |
Vested (in units) | (15,840,000) | (17,724,000) | |
Nonvested at the end of the period (in units) | 15,840,000 | 13,964,000 | 15,840,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 25.25 | $ 22.57 | |
Granted (in dollars per unit) | 28.65 | 25.25 | |
Forfeitures (in dollar per unit) | 0 | 0 | |
Vested (in dollars per unit) | 25.25 | 22.57 | |
Nonvested at the end of the period (in dollars per unit) | $ 25.25 | $ 28.65 | $ 25.25 |
Director Grants | Performance-Based Phantom Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 0 | 0 | |
Granted (in units) | 0 | 0 | |
Forfeitures (in units) | 0 | 0 | |
Vested (in units) | 0 | 0 | |
Nonvested at the end of the period (in units) | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 0 | $ 0 | |
Granted (in dollars per unit) | 0 | 0 | |
Forfeitures (in dollar per unit) | 0 | 0 | |
Vested (in dollars per unit) | 0 | 0 | |
Nonvested at the end of the period (in dollars per unit) | $ 0 | $ 0 | $ 0 |
Net Income (Loss) per Limited_3
Net Income (Loss) per Limited Partner Unit - Narrative (Details) | May 30, 2018shares | Dec. 31, 2018shares |
Unit conversion ratio per unit | 1 | |
Subordinated Units | ||
Potentially dilutive subordinated units outstanding | 0 | |
Subordinated Units— Sponsor | ||
Conversion of subordinated units to common units (in units) | 11,905,138 | (11,905,000) |
Net Income (Loss) per Limited_4
Net Income (Loss) per Limited Partner Unit - Computation of Net Income (Loss) Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income per Limited Partner Unit | ||||||||||||
Net income | $ 9,387 | $ 13,356 | $ 3,544 | $ (19,335) | $ 7,898 | $ 5,023 | $ 1,497 | $ (45) | $ 6,952 | $ 14,373 | $ 13,463 | |
Net loss attributable to noncontrolling partners' interests | 0 | 3,140 | 5,804 | |||||||||
Net income attributable to Enviva Partners, LP | 6,952 | 17,513 | 19,267 | |||||||||
Less: Distributions declared on: | ||||||||||||
Distributions declared | 72,878 | 65,527 | 52,177 | |||||||||
Undistributed earnings: | ||||||||||||
Earnings less than distributions | (65,926) | (44,965) | (27,569) | |||||||||
Common Units | ||||||||||||
Net Income per Limited Partner Unit | ||||||||||||
Net income attributable to Enviva Partners, LP | 884 | 9,402 | 12,402 | |||||||||
Less: Distributions declared on: | ||||||||||||
Distributions declared | 54,604 | 34,033 | 26,933 | |||||||||
Undistributed earnings: | ||||||||||||
Earnings less than distributions | (53,720) | (24,631) | (14,531) | |||||||||
Subordinated Units | ||||||||||||
Net Income per Limited Partner Unit | ||||||||||||
Net income attributable to Enviva Partners, LP | 201 | 7,762 | 11,129 | |||||||||
Less: Distributions declared on: | ||||||||||||
Distributions declared | 12,407 | 28,096 | 24,167 | |||||||||
Undistributed earnings: | ||||||||||||
Earnings less than distributions | (12,206) | (20,334) | (13,038) | |||||||||
IDRs | ||||||||||||
Less: Distributions declared on: | ||||||||||||
Distributions declared | 5,867 | 3,398 | 1,077 | |||||||||
General Partner | ||||||||||||
Net Income per Limited Partner Unit | ||||||||||||
Net income | 5,326 | (418) | (4,625) | |||||||||
Limited Partners’ Capital | ||||||||||||
Net Income per Limited Partner Unit | ||||||||||||
Net income attributable to Enviva Partners, LP | $ 9,387 | $ 13,356 | $ 3,544 | $ (19,335) | $ 7,826 | $ 6,339 | $ 3,862 | $ 2,535 | 6,952 | 20,562 | 24,608 | |
Less: Distributions declared on: | ||||||||||||
Distributions declared | 65,527 | 52,177 | ||||||||||
Undistributed earnings: | ||||||||||||
Earnings less than distributions | (44,965) | (27,569) | ||||||||||
Sampson, LLC Drop-Down | ||||||||||||
Net Income per Limited Partner Unit | ||||||||||||
Net income | (3,300) | |||||||||||
Sampson, LLC Drop-Down | General Partner | ||||||||||||
Net Income per Limited Partner Unit | ||||||||||||
Net income attributable to Enviva Partners, LP | 0 | 0 | (3,231) | |||||||||
Wilmington, LLC Drop-Down | ||||||||||||
Net Income per Limited Partner Unit | ||||||||||||
Net income | (3,100) | (2,200) | ||||||||||
Wilmington, LLC Drop-Down | General Partner | ||||||||||||
Net Income per Limited Partner Unit | ||||||||||||
Net income attributable to Enviva Partners, LP | $ (3,049) | $ 0 | $ (3,049) | $ (2,110) |
Net Income (Loss) per Limited_5
Net Income (Loss) per Limited Partner Unit - Basic and Diluted Table (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Common Units | |||
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—basic | 21,533 | 14,403 | 13,002 |
Effect of nonvested phantom units | 1,020 | 948 | 557 |
Weighted-average common units outstanding—diluted | 22,553 | 15,351 | 13,559 |
Subordinated Units | |||
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—basic | 4,893 | 11,905 | 11,905 |
Effect of nonvested phantom units | 0 | 0 | 0 |
Weighted-average common units outstanding—diluted | 4,893 | 11,905 | 11,905 |
General Partner | |||
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—basic | 0 | 0 | 0 |
Effect of nonvested phantom units | 0 | 0 | 0 |
Weighted-average common units outstanding—diluted | 0 | 0 | 0 |
Net Income (Loss) per Limited_6
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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | $ 72,878 | $ 65,527 | $ 52,177 | ||||||||
Earnings less than distributions | (65,926) | (44,965) | (27,569) | ||||||||
Net income attributable to partners | 6,952 | 17,513 | 19,267 | ||||||||
Common Units | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | 54,604 | 34,033 | 26,933 | ||||||||
Earnings less than distributions | (53,720) | (24,631) | (14,531) | ||||||||
Net income attributable to partners | $ 884 | $ 9,402 | $ 12,402 | ||||||||
Weighted-average units outstanding - basic (in units) | 21,533 | 14,403 | 13,002 | ||||||||
Weighted-average units outstanding - diluted (in units) | 22,553 | 15,351 | 13,559 | ||||||||
Net income per limited partner unit - basic (in dollars per unit) | $ 0.04 | $ 0.65 | $ 0.95 | ||||||||
Net income per limited partner unit - diluted (in dollars per unit) | $ 0.04 | $ 0.61 | $ 0.91 | ||||||||
Subordinated Units | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | $ 12,407 | $ 28,096 | $ 24,167 | ||||||||
Earnings less than distributions | (12,206) | (20,334) | (13,038) | ||||||||
Net income attributable to partners | $ 201 | $ 7,762 | $ 11,129 | ||||||||
Weighted-average units outstanding - basic (in units) | 4,893 | 11,905 | 11,905 | ||||||||
Weighted-average units outstanding - diluted (in units) | 4,893 | 11,905 | 11,905 | ||||||||
Net income per limited partner unit - basic (in dollars per unit) | $ 0.04 | $ 0.65 | $ 0.93 | ||||||||
Net income per limited partner unit - diluted (in dollars per unit) | $ 0.04 | $ 0.65 | $ 0.93 | ||||||||
General Partner | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | $ 5,867 | $ 3,398 | $ 1,077 | ||||||||
Earnings less than distributions | 0 | 0 | 0 | ||||||||
Net income attributable to partners | $ 5,867 | $ 3,398 | $ 1,077 | ||||||||
Weighted-average units outstanding - basic (in units) | 0 | 0 | 0 | ||||||||
Weighted-average units outstanding - diluted (in units) | 0 | 0 | 0 | ||||||||
Limited Partners’ Capital | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | $ 65,527 | $ 52,177 | |||||||||
Earnings less than distributions | (44,965) | (27,569) | |||||||||
Net income attributable to partners | $ 9,387 | $ 13,356 | $ 3,544 | $ (19,335) | $ 7,826 | $ 6,339 | $ 3,862 | $ 2,535 | $ 6,952 | $ 20,562 | $ 24,608 |
Commitments and Contingencies -
Commitments and Contingencies - Shipping Event (Details) - Pending litigation $ in Millions | Jun. 08, 2017USD ($) | Dec. 31, 2016cargo_holdcustomer |
Loss Contingencies [Line Items] | ||
Number of customers | customer | 1 | |
Number of cargo holds damaged | cargo_hold | 1 | |
Value of claims submitted against Cottondale | $ | $ 11.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases (Details) $ in Millions | 1 Months Ended | 12 Months Ended | 37 Months Ended | |
May 31, 2016USD ($)T | Dec. 31, 2018USD ($) | Feb. 28, 2018USD ($)renewal_option | Feb. 28, 2015 | |
Lessee, Lease, Description [Line Items] | ||||
Rent expense | $ 4.4 | |||
Lease term | 21 years | |||
Number of renewal options | renewal_option | 2 | |||
Duration of each renewal option | 5 years | |||
Annual base rent amount | $ 0.2 | |||
Total base rent amount | $ 4.7 | |||
Throughput ton fee | 2.3 | |||
Total estimated payments | $ 71.7 | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Annual increase in producers price index | 1.00% | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Throughput ton fee | $ 1.9 | |||
Throughput ton | T | 1,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 3,491 |
2,020 | 3,088 |
2,021 | 2,793 |
2,022 | 2,578 |
2,023 | 2,563 |
Thereafter | 59,320 |
Total future minimum lease payments | $ 73,833 |
Commitments and Contingencies_4
Commitments and Contingencies - Commitments (Details) MT in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)MT | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 28, 2015 | |
Commitments and Contingencies | ||||
Purchase obligation | $ 559,402,000 | |||
Lease term | 21 years | |||
Total cost of goods sold | 504,300,000 | $ 464,419,000 | $ 387,504,000 | |
Terminal Services Agreement | ||||
Commitments and Contingencies | ||||
Purchase obligation | 16,300,000 | |||
Transportation expense | 9,800,000 | 10,600,000 | 10,300,000 | |
Transportation Agreement | ||||
Commitments and Contingencies | ||||
Transportation expense | $ 29,800,000 | 23,800,000 | 21,700,000 | |
Long-term supply agreement | ||||
Commitments and Contingencies | ||||
Purchase commitment for wood pellets | MT | 1,620 | |||
Sale commitment for wood pellets | MT | 1,620 | |||
Purchase amount | $ 29,500,000 | 3,500,000 | 0 | |
Long-term shipping agreement | ||||
Commitments and Contingencies | ||||
Lease term | 15 years | |||
Long-term shipping agreement | Shipping expenses | ||||
Commitments and Contingencies | ||||
Total cost of goods sold | $ 64,100,000 | $ 52,200,000 | $ 41,500,000 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Future Minimum Firm Terminal Services Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 94,578 |
2,020 | 173,993 |
2,021 | 189,073 |
2,022 | 48,809 |
2,023 | 29,811 |
Thereafter | 23,138 |
Total | $ 559,402 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Director Grants | |||
Subsequent Events | |||
Granted (in units) | 13,964,000 | 15,840,000 | |
Affiliate Grants | |||
Subsequent Events | |||
Granted (in units) | 569,833,000 | 412,504,000 | |
Vesting period | 3 years | ||
Subsequent event | Director Grants | Distribution Equivalent Rights | |||
Subsequent Events | |||
Granted (in units) | 13,264 | ||
Vesting period | 3 years | ||
Subsequent event | Affiliate Grants | Distribution Equivalent Rights | |||
Subsequent Events | |||
Granted (in units) | 542,940 | ||
Subsequent event | Affiliate Grants | Distribution Equivalent Rights | Vest on the third anniversary of the grant date | |||
Subsequent Events | |||
Granted (in units) | 335,433 | ||
Subsequent event | Affiliate Grants | Distribution Equivalent Rights | Vest on the performance of specific milestones | |||
Subsequent Events | |||
Granted (in units) | 207,507 | ||
Subsequent event | LTIP | |||
Subsequent Events | |||
Fair value of units granted | $ 16.8 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net revenue | $ 168,673 | $ 144,148 | $ 135,596 | $ 125,324 | $ 161,008 | $ 132,223 | $ 127,547 | $ 122,443 | $ 573,741 | $ 543,221 | $ 464,276 |
Gross margin | 24,529 | 30,119 | 19,811 | (5,018) | 25,721 | 20,382 | 16,331 | 16,368 | 69,441 | 78,802 | 76,772 |
Net (loss) income | $ 9,387 | $ 13,356 | $ 3,544 | $ (19,335) | $ 7,898 | $ 5,023 | $ 1,497 | $ (45) | 6,952 | 14,373 | 13,463 |
Enviva Partners, LP limited partners’ interest in net (loss) income | $ 6,952 | $ 17,513 | $ 19,267 | ||||||||
Basic income (loss) per limited partner common unit (in dollars per unit) | $ 0.29 | $ 0.45 | $ 0.08 | $ (0.78) | $ 0.25 | $ 0.20 | $ 0.12 | $ 0.08 | $ 0.04 | $ 0.65 | $ 0.95 |
Diluted income (loss) per limited partner common unit (in dollars per unit) | 0.28 | 0.43 | 0.08 | (0.78) | 0.24 | 0.19 | 0.11 | 0.07 | 0.04 | 0.61 | 0.91 |
Basic (loss) income per limited partner subordinated unit (in dollars per unit) | 0 | 0 | 0.08 | (0.78) | 0.25 | 0.20 | 0.12 | 0.08 | 0.04 | 0.65 | 0.93 |
Diluted (loss) income per limited partner subordinated unit (in dollars per unit) | $ 0 | $ 0 | $ 0.08 | $ (0.78) | $ 0.25 | $ 0.20 | $ 0.12 | $ 0.08 | $ 0.04 | $ 0.65 | $ 0.93 |
Limited Partners’ Capital | |||||||||||
Enviva Partners, LP limited partners’ interest in net (loss) income | $ 9,387 | $ 13,356 | $ 3,544 | $ (19,335) | $ 7,826 | $ 6,339 | $ 3,862 | $ 2,535 | $ 6,952 | $ 20,562 | $ 24,608 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Details) | Dec. 31, 2018 |
Guarantees [Abstract] | |
Ownership interest in each of the subsidiary guarantors (as a percent) | 100.00% |