Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 15, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Enviva Partners, LP | ||
Entity Central Index Key | 0001592057 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Annual Report | true | ||
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 | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 943.5 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Units, Units Outstanding | 40,023,105 | ||
Entity Interactive Data Current | Yes | ||
Document Transition Report | false | ||
Entity File Number | 001-37363 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4097730 | ||
Title of 12(b) Security | Common Units Representing Limited Partner Interests | ||
Trading Symbol | EVA | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | None | ||
Entity Address, Address Line One | 7200 Wisconsin Ave. | ||
Entity Address, Address Line Two | Suite 1000 | ||
Entity Address, City or Town | Bethesda, | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 20814 | ||
City Area Code | (301) | ||
Local Phone Number | 657-5560 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 10,004 | $ 9,053 |
Accounts receivable | 124,212 | 72,421 |
Related-party receivable, net | 2,414 | 0 |
Inventories | 42,364 | 32,998 |
Prepaid expenses and other current assets | 16,457 | 5,617 |
Total current assets | 195,451 | 120,089 |
Property, plant and equipment, net | 1,071,819 | 751,780 |
Operating lease right-of-use assets | 51,434 | 32,830 |
Goodwill | 99,660 | 85,615 |
Other long-term assets | 11,248 | 4,504 |
Total assets | 1,429,612 | 994,818 |
Current liabilities: | ||
Accounts payable | 15,208 | 18,985 |
Due to Related Parties, Current, Net | 0 | 304 |
Deferred consideration for drop-downs due to related-party | 0 | 40,000 |
Accrued and other current liabilities | 108,976 | 59,066 |
Current portion of interest payable | 24,642 | 3,427 |
Current portion of long-term debt and finance lease obligations | 13,328 | 6,590 |
Total current liabilities | 162,154 | 128,372 |
Long-term debt and finance lease obligations | 912,721 | 596,430 |
Long-term operating lease liabilities | 50,074 | 33,469 |
Deferred tax liabilities, net | 13,217 | 0 |
Other long-term liabilities | 15,419 | 3,971 |
Total liabilities | 1,153,585 | 762,242 |
Commitments and contingencies | ||
Limited partners: | ||
Common unitholders—public | 424,825 | 300,184 |
Common unitholder—sponsor | 41,816 | 82,300 |
Common unitholders—public | 424,825 | 300,184 |
Common unitholder—sponsor | 41,816 | 82,300 |
General partner (no outstanding units) | (142,404) | (101,739) |
Accumulated other comprehensive income | (18) | 23 |
Total Enviva Partners, LP partners’ capital | 324,219 | 280,768 |
Noncontrolling interest | (48,192) | (48,192) |
Total partners' capital | 276,027 | 232,576 |
Total liabilities and partners’ capital | 1,429,612 | 994,818 |
Common Units— Public | ||
Limited partners: | ||
Total partners' capital | $ 424,825 | $ 300,184 |
Limited partner units outstanding | 26,209,862 | 19,870,436 |
Limited Partners' Capital Account, Units Issued | 26,209,862 | 19,870,436 |
Common Units— Sponsor | ||
Limited partners: | ||
Total partners' capital | $ 41,816 | $ 82,300 |
Limited partner units outstanding | 13,586,375 | |
Limited Partners' Capital Account, Units Issued | 13,586,375 | 13,586,000 |
General Partner Interest | ||
Limited partners: | ||
Total partners' capital | $ (142,404) | $ (101,739) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenue | $ 875,079 | $ 684,393 | $ 573,741 |
Cost of goods sold, excluding depreciation and amortization | 684,863 | 549,701 | 461,735 |
Loss on disposal of assets | 6,978 | 3,103 | 2,386 |
Depreciation and amortization | 76,115 | 50,521 | 40,179 |
Total cost of goods sold | 767,956 | 603,325 | 504,300 |
Gross margin | 107,123 | 81,068 | 69,441 |
General and administrative expenses | 12,800 | 6,932 | 5,879 |
Related-party management services agreement fee | 32,545 | 29,457 | 21,762 |
Total general and administrative expenses | 45,345 | 36,389 | 27,641 |
Income from operations | 61,778 | 44,679 | 41,800 |
Other income (expense): | |||
Interest expense | (44,902) | (39,344) | (36,471) |
Early retirement of debt obligation | 0 | (9,042) | (751) |
Other income (expense) | 273 | 764 | 2,374 |
Total other expense, net | (44,629) | (47,622) | (34,848) |
Net income (loss) before income tax expense | 17,149 | (2,943) | 6,952 |
Income tax expense | 69 | 0 | 0 |
Net (loss) income | $ 17,080 | $ (2,943) | $ 6,952 |
Net (loss) income per limited partner common unit: | |||
Common - basic (in dollars per unit) | $ (0.36) | $ (0.54) | $ 0.04 |
Net income per limited partner subordinated unit: | |||
Subordinated - basic (in dollars per unit) | $ 0 | $ 0 | $ 0.04 |
Weighted-average number of limited partner units outstanding: | |||
Common - basic (in units) | 36,813 | 31,791 | 21,533 |
Common - diluted (in units) | 36,813 | 31,791 | 22,553 |
Subordinated - basic and diluted (in units) | 0 | 0 | 4,893 |
Distributions declared per limited partner unit | $ 3 | $ 2.6500 | $ 2.5300 |
General Partner Interest | |||
Other income (expense): | |||
Net (loss) income | $ 22,092 | $ 9,821 | $ 5,326 |
Product sales | |||
Net revenue | 830,528 | 674,251 | 564,010 |
Other revenue | |||
Net revenue | $ 44,551 | $ 10,142 | $ 9,731 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net (loss) income | $ 17,080 | $ (2,943) | $ 6,952 |
Other comprehensive (loss) income: | |||
Net unrealized (losses) gains on cash flow hedges | 0 | (146) | 5,655 |
Reclassification of net (gains) losses on cash flow hedges realized into net (loss) income | (22) | (288) | (2,178) |
Currency translation adjustment | (19) | 0 | 2 |
Total other comprehensive (loss) income | (41) | (434) | 3,479 |
Total comprehensive (loss) income | 17,039 | (3,377) | 10,431 |
General Partner Interest | |||
Net (loss) income | $ 22,092 | $ 9,821 | $ 5,326 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Enviva Wilmington Holdings, LLC | Greenwood Holdings II, LLC | Accumulated Other Comprehensive Income (loss) | General Partner Interest | General Partner InterestEnviva Wilmington Holdings, LLC | General Partner InterestGreenwood Holdings II, LLC | Common Units— Public | Common Units— Sponsor | Subordinated Units— Sponsor | Non- controlling Interests | Non- controlling InterestsEnviva Wilmington Holdings, LLC |
Balance at the beginning of the period at Dec. 31, 2017 | $ 210,369 | $ (3,040) | $ (128,569) | $ 224,027 | $ 16,050 | $ 101,901 | $ 0 | |||||
Balance at the beginning of the period (in units) at Dec. 31, 2017 | 13,073,000 | 1,347,000 | 11,905,000 | |||||||||
Changes in Partners’ Capital | ||||||||||||
Distributions to unitholders, distribution equivalent and incentive distribution rights | (74,234) | (5,326) | $ (38,241) | $ (15,845) | $ (14,822) | |||||||
Issuance of units through Long-Term Incentive Plan | 6,465 | (5,675) | $ 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) | ||||||||||
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 (loss) income | 3,479 | 3,479 | ||||||||||
Net (loss) income | 6,952 | 5,326 | 1,922 | $ 8,279 | $ (8,575) | |||||||
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 | 14,573,000 | 11,905,000 | 0 | |||||||||
Changes in Partners’ Capital | ||||||||||||
Distributions to unitholders, distribution equivalent and incentive distribution rights | (96,179) | (9,821) | $ (51,906) | $ (34,452) | ||||||||
Issuance of units associated with the Hamlet JV Drop-Down | (50,000) | $ 50,000 | ||||||||||
Issuance of units associated with the Hamlet JV Drop-Down (in units) | 1,681,000 | |||||||||||
Issuance of units through Long-Term Incentive Plan | 1,810 | (1,882) | $ 72 | |||||||||
Issuance of units through Long-Term Incentive Plan (in units) | 97,000 | |||||||||||
Issuance of common units, net | 146,278 | $ 146,278 | ||||||||||
Issuance of common units, net (in units) | 5,200,000 | |||||||||||
Cumulative effect of accounting change - derivative instruments | 18 | 18 | ||||||||||
Cumulative effect of accounting change - derivative instruments | $ (10) | $ (8) | ||||||||||
Non-cash Management Services Agreement expenses | 28,997 | 23,687 | 5,310 | |||||||||
Other comprehensive (loss) income | (434) | (434) | ||||||||||
Excess consideration over net assets | $ 42,770 | $ 5,422 | $ 48,192 | |||||||||
Reimburseable amounts under Make-Whole Agreement | 4,721 | 4,721 | ||||||||||
Net (loss) income | (2,943) | 9,821 | (7,172) | (5,592) | ||||||||
Balance at the end of the period at Dec. 31, 2019 | 232,576 | 23 | (101,739) | $ 300,184 | $ 82,300 | $ 0 | (48,192) | |||||
Balance at the end of the period (in units) at Dec. 31, 2019 | 19,870,436 | 13,586,000 | 0 | |||||||||
Changes in Partners’ Capital | ||||||||||||
Distributions to unitholders, distribution equivalent and incentive distribution rights | (135,678) | (22,092) | $ (74,252) | $ (39,334) | ||||||||
Issuance of units through Long-Term Incentive Plan | 4,946 | (4,374) | $ (572) | |||||||||
Issuance of units through Long-Term Incentive Plan (in units) | 186,000 | |||||||||||
Issuance of common units, net | 190,529 | $ 190,529 | ||||||||||
Issuance of common units, net (in units) | 6,154,000 | |||||||||||
Non-cash Management Services Agreement expenses | 38,337 | 25,539 | $ 12,798 | |||||||||
Other comprehensive (loss) income | (41) | (41) | ||||||||||
Excess consideration over net assets | $ 61,830 | $ (61,830) | ||||||||||
Net (loss) income | 17,080 | 22,092 | (3,862) | (1,150) | ||||||||
Balance at the end of the period at Dec. 31, 2020 | $ 276,027 | $ (18) | $ (142,404) | $ 424,825 | $ 41,816 | $ 0 | $ (48,192) | |||||
Balance at the end of the period (in units) at Dec. 31, 2020 | 26,209,862 | 13,586,375 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ 17,080 | $ (2,943) | $ 6,952 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 77,471 | 51,581 | 40,745 |
Fees waived under Management Services Agreement | 23,400 | 22,600 | 0 |
Amortization of debt issuance costs, debt premium and original issue discounts | 1,905 | 1,243 | 1,093 |
Early retirement of debt obligation | 0 | 9,042 | 751 |
Gain (Loss) on Disposition of Assets | 6,978 | 3,103 | 2,386 |
Unit-based compensation | 12,848 | 5,410 | 6,229 |
De-designation of foreign currency forwards and options | 0 | 0 | (1,947) |
Unrealized loss on foreign currency transactions, net | (5,294) | (3,701) | (7,464) |
Fair value changes in derivatives | 54 | 177 | 23 |
Change in operating assets and liabilities: | |||
Accounts and insurance receivables | (60,235) | (16,330) | 19,230 |
Related-party receivables | 2,722 | 1,392 | 2,720 |
Prepaid expenses, assets held for sale and other current and long-term assets | (13,819) | (358) | (182) |
Inventories | 825 | (1,889) | (7,843) |
Derivatives | (249) | 1,770 | 4,907 |
Accounts payable, accrued liabilities and other current liabilities | 35,189 | 9,287 | 14,916 |
Related-party payables and accrued liabilities | 0 | (27,933) | 173 |
Deferred revenue | 780 | 3,887 | 0 |
Accrued interest | 15,343 | (5,148) | 367 |
Increase (decrease) in operating lease liabilities | (5,828) | (4,826) | 0 |
Other long-term liabilities | (423) | 94 | 997 |
Net cash provided by operating activities | 119,335 | 53,860 | 84,053 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (100,106) | (111,269) | (27,132) |
Payments in relation to the Greenwood Drop-Down, net of cash acquired | (129,631) | 0 | 0 |
Payments in relation to the Georgia Biomass Acquisition, net of cash acquired | (163,299) | 0 | 0 |
Payment in relation to the Hamlet Drop-Down | 0 | (74,700) | 0 |
Insurance proceeds from property loss | 0 | 0 | 1,130 |
Other | (3,769) | 8,486 | 0 |
Net cash used in investing activities | (396,805) | (177,483) | (26,002) |
Cash flows from financing activities: | |||
Proceeds from senior secured revolving credit facility | 755,500 | 453,000 | 299,250 |
Principal payments on senior secured revolving credit facility | (635,500) | (526,000) | (226,250) |
Principal payments on other long-term debt and finance lease obligations | (5,571) | (358,311) | (46,466) |
Cash paid related to debt issuance costs and deferred offering costs | (3,949) | (7,560) | (2,495) |
Proceeds from common unit issuances, net | 190,529 | 96,822 | 241 |
Payment of deferred consideration for Wilmington Drop-Down | 0 | (24,300) | 0 |
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder | (133,217) | (95,659) | (73,518) |
Proceeds from debt issuance | 155,625 | 601,777 | 0 |
Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting | 0 | 0 | (2,341) |
Payment for withholding tax associated with Long-Term Incentive Plan vesting | (4,996) | (1,910) | (4,536) |
Payments in relation to the Hamlet JV Drop-Down | (40,000) | (99) | 0 |
Cash paid for redemption premium from early retirement of debt | 0 | (7,544) | 0 |
Net cash provided by (used in) financing activities | 278,421 | 130,216 | (56,115) |
Net increase in cash, cash equivalents and restricted cash | 951 | 6,593 | 1,936 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Capital Expenditures Incurred but Not yet Paid | 16,197 | 3,421 | 8,939 |
Lease Obligation Incurred | 12,487 | 6,493 | 3,512 |
Non Cash Investing And Financing Activities Deferred Consideration To Sponsor Included In Long Term Related Party Payable | 0 | 40,000 | 0 |
Conversion of Stock, Amount Converted | 0 | 0 | 78,504 |
Distributions Due To Sponsor | 0 | 0 | 74,000 |
Payments to Acquire Interest in Subsidiaries and Affiliates | 129,631 | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | 163,299 | 0 | 0 |
Payment of deferred consideration for Wilmington Drop-Down | 0 | (24,300) | 0 |
Payment for withholding tax | 4,996 | 1,910 | 4,536 |
Cash, cash equivalents and restricted cash, beginning of period | 9,053 | 2,460 | 524 |
Cash, cash equivalents and restricted cash, end of period | 10,004 | 9,053 | 2,460 |
Supplemental information: | |||
Interest paid, net of capitalized interest | 22,150 | 41,190 | 35,222 |
Wilmington, LLC Drop-Down | |||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Issuance of common units value | 0 | 49,700 | 0 |
Hamlet JV | |||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Issuance of common units value | $ 0 | $ 50,000 | $ 0 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Purchase Price Allocation The Georgia Biomass Acquisition closed on July 31, 2020 and was accounted for as a business combination using the acquisition method of accounting. The following table summarizes the purchase price and the fair values of the amounts recorded for identifiable assets acquired and liabilities assumed at the acquisition date of July 31, 2020. Purchase price: Cash paid by the Partnership at closing $ 168,338 Reimbursement to the Partnership of certain acquisition-related costs, net 161 Settlement of payable from the Partnership to Georgia Biomass (3,684) Payment in relation to the Georgia Biomass Acquisition 164,815 Receivable from purchase price adjustment (850) $ 163,965 Identified net assets acquired: Cash $ 1,516 Accounts receivable 124 Inventories 5,774 Prepaid expenses and other current assets 792 Intangible assets 5,700 Property, plant and equipment 170,603 Operating lease right-of-use assets 14,716 Accounts payable (390) Accrued and other current liabilities (9,472) Current portion of long-term finance lease obligations (926) Long-term finance lease obligations (3,733) Long-term operating lease liabilities (13,356) Deferred tax liability, net (13,148) Intangible liabilities (7,400) Other long-term liabilities (880) Identifiable net assets acquired 149,920 Goodwill 14,045 Total purchase price $ 163,965 The opening balance sheet from July 31, 2020 has changed since what had been preliminarily included in our consolidated balance sheet as of September 30, 2020. As a result, goodwill decreased by $1.6 million, mainly driven by the change in certain intangible liabilities of $2.5 million resulting from updated information received offset by the impact on deferred taxes. The measurement period has now ended as the purchase price and the purchase price allocation have been finalized. The net assets of Georgia Biomass were recorded at their estimated fair values. Significant inputs used to estimate the fair values of certain net assets acquired included estimates of the: (1) replacement cost for property, plant and equipment as if each asset was new as of the acquisition date, which was then adjusted for the depreciation and any obsolescence since the date Georgia Biomass originally acquired that asset; (2) market prices for finished goods inventory and for customer and shipping contracts; (3) incremental borrowing rates as of the acquisition date for leases acquired; and (4) appropriate discount rates. Goodwill is calculated as the excess of the fair value of the consideration transferred over the fair value of the net assets recognized and represents the future economic benefits arising from other net assets acquired that could not be individually identified and separately recognized. We believe that the primary items that generated goodwill include both (1) the value of the synergies created between the acquired assets and our pre-existing assets and long-term, take-or-pay off-take contracts and (2) our expected ability to grow the combined business by leveraging the combined business experience and the expanded footprint. None of the goodwill is expected to be deductible for tax purposes. In connection with the Georgia Biomass Acquisition, acquisition-related costs through December 31, 2020 are approximately $3.9 million and are included within general and administrative expenses on the consolidated statements of operations. These acquisition-related costs do not include integration costs. Post-acquisition and pro forma financial information The consolidated statements of operations for the year ended December 31, 2020 include $45.8 million of revenue and $9.7 million of net loss from the Georgia Biomass Acquisition since July 31, 2020. The unaudited pro forma combined revenue and net income presented below have been prepared as if the Georgia Biomass Acquisition had occurred on January 1, 2019. The unaudited pro forma financial information has been derived from the consolidated statements of operations of the Partnership for the below periods and from the consolidated abbreviated statements of revenues and direct expenses of Georgia Biomass for the six months ended June 30, 2020 and the year ended December 31, 2019. The abbreviated statements of revenues and direct expenses of Georgia Biomass were prepared for the purposes of complying with the requirements of Rule 3-05 of Regulation S-X as no separate financial statements of Georgia Biomass had previously been prepared. The abbreviated statements of revenues and direct expenses of Georgia Biomass include the revenues and direct expenses directly attributable to manufacturing and distributing wood pellets to customers in the United Kingdom and Europe by Georgia Biomass. The unaudited pro forma financial information reflects the effects of applying certain purchase price accounting adjustments to the historical financial information based on the fair value of the identified net assets acquired as of July 31, 2020. The historical financial information has been adjusted in the unaudited pro forma information to give effect to pro forma events that are (1) directly attributable to the Georgia Biomass Acquisition, (2) factually supportable and (3) expected to have a continuing impact on our results of operations following the Georgia Biomass Acquisition. The unaudited pro forma financial information does not include non-recurring items such as transaction costs related to the acquisition. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the Georgia Biomass Acquisition had taken place on January 1, 2019. The unaudited pro forma combined revenue and net income for the years ended December 31, 2020 and 2019 are as follows: 2020 2019 Revenue $ 957,537 $ 845,340 Net income 16,407 9,540 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
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 under long-term, take-or-pay off-take contracts to our customers principally in the United Kingdom (the “U.K.”) and Europe and increasingly Japan. We own and operate nine industrial-scale wood pellet production plants located in the Southeastern United States. In addition to the volumes from our plants, we also procure wood pellets from third parties. Wood pellets are exported from our wholly owned deep-water marine terminals at the Port of Chesapeake, Virginia (the “Chesapeake terminal”) and terminal assets at the Port of Wilmington, North Carolina (the “Wilmington terminal”) and from third-party deep-water marine terminals in Mobile, Alabama, Panama City, Florida and Savannah, Georgia under a short-term contract, a long-term contract and a lease and associated terminal services agreement, 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 Certain prior year amounts have been reclassified from general and administrative expenses to related-party management services agreement (“MSA”) fees to conform to current period presentation on the consolidated statements of operations. Enviva Pellets Greenwood On July 1, 2020, we acquired from our sponsor all of the limited liability company interests in Enviva Pellets Greenwood Holdings II, LLC, the indirect owner of Enviva Pellets Greenwood, LLC (“Greenwood”), which owns a wood pellet production plant located in Greenwood, South Carolina (the “Greenwood plant”), for a purchase price of $132.0 million, subject to certain adjustments (such transaction, the “Greenwood Drop-Down”). On the date of and in connection with the Greenwood Drop-Down, our sponsor assigned five biomass off-take contracts to us (collectively, the “Associated Off-Take Contracts”). The Associated Off-Take Contracts call for aggregate annual deliveries of 1.4 million metric tons per year (“MTPY”) and mature between 2031 and 2041. Our sponsor also assigned two fixed-rate shipping contracts and partially assigned two additional fixed-rate shipping contracts to us. The Greenwood Drop-Down was an asset acquisition between entities under common control and accounted for on the carryover basis of accounting. Accordingly, the consolidated financial statements for the period beginning July 1, 2020 reflect the acquisition. See Note 3, Transactions Between Entities Under Common Control . On the date of the Greenwood Drop-Down: • We entered into an agreement with our sponsor, pursuant to which our sponsor agreed to reimburse us for any construction costs incurred for the planned expansion of the Greenwood plant in excess of $28.0 million (the “Greenwood Make-Whole Agreement”). • We entered into an agreement with Enviva Management Company, LLC, a Delaware limited liability company and wholly owned subsidiary of our sponsor (together with its affiliates that provide services to us, as applicable, “Enviva Management Company”), pursuant to which (1) Enviva Management Company waived our obligation to pay an aggregate of approximately $37.0 million in management services and other fees payable under our management services agreement with Enviva Management Company for the period from July 1, 2020 through the fourth quarter of 2021 and (2) Enviva Management Company will waive our obligation to pay certain management services and other fees during 2022 unless and until the Greenwood plant’s production volumes equal or exceed 50,000 metric tons (“MT”) in any calendar month, in each case, to provide cash flow support to us during the planned expansion of the Greenwood plant (the “Third EVA MSA Fee Waiver”). Georgia Biomass Holding LLC On July 31, 2020, Enviva Pellets Waycross Holdings, LLC, a wholly owned subsidiary of the Partnership, acquired all of the limited liability company interests in Georgia Biomass Holding LLC, a Georgia limited liability company (“Georgia Biomass”), and the indirect owner of a wood pellet production plant located in Waycross, Georgia (the “Waycross plant”), for a purchase price of $175.0 million, subject to certain adjustments (the “Georgia Biomass Acquisition”). In August 2020, Georgia Biomass converted to a limited liability company organized under the laws of the State of Delaware under the name Enviva Pellets Waycross Holdings Sub, LLC. The Georgia Biomass Acquisition was recorded as a business combination and accounted for using the acquisition method. Assets acquired and liabilities assumed were recognized at fair value on the acquisition date of July 31, 2020, and the difference between the consideration transferred, excluding acquisition-related costs, and the fair values of the assets acquired and liabilities assumed was recognized as goodwill. See Note 4, Acquisition . Enviva Wilmington Holdings, LLC On April 2, 2019, we acquired (the “Hamlet Drop-Down”) from our sponsor all of the issued and outstanding Class B Units in Enviva Wilmington Holdings, LLC (the “Hamlet JV”), a limited liability company owned by our sponsor and John Hancock Life Insurance Company (U.S.A.) and certain of its affiliates (collectively, as applicable, “John Hancock”). On the date of acquisition, we began to consolidate the Hamlet JV as a variable interest entity of which we are the primary beneficiary. As managing member, we have the sole power to direct the activities that most impact the economics of the Hamlet JV. Additionally, as the Class B Units represent a controlling interest in the Hamlet JV, we account for the Hamlet JV as a consolidated subsidiary, not as a joint venture. The Hamlet JV owns a wood pellet production plant in Hamlet, North Carolina (the “Hamlet plant”) and a firm, 15-year take-or-pay off-take contract with a customer for the delivery of nearly 1.0 million MTPY of wood pellets, following a ramp period. The Hamlet Drop-Down was an asset acquisition between entities under common control and accounted for on the carryover basis of accounting. Accordingly, the consolidated financial statements for the period beginning April 2019 reflect the acquisition. See Note 3, Transactions Between Entities Under Common Control . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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. Business Combinations Since the required adoption of Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), on January 1, 2018, determining whether an entity has acquired a business or an asset (or a group of assets) is critical because the accounting for a business combination differs significantly from that of an asset acquisition. For transfers between entities under common control, the transfer of a business would represent a change in reporting entity requiring a retrospective adjustment of the combined financial statements. Conversely, a common control transaction involving the transfer of net assets that does not constitute a business is not accounted for as a change in reporting entity and is, therefore, accounted for prospectively. For an acquisition of a business from an entity not under common control, the overall principle is that, when an entity (the acquirer) takes control of another entity (the target), the fair value of the underlying exchange transaction is used to establish a new accounting basis for the acquired entity where the acquirer recognizes and measures the assets acquired and liabilities assumed at their full fair values as of the date control is obtained. For an acquisition of an asset from an entity not under common control, a cost accumulation and allocation model is used under which the cost of the acquisition is allocated to the assets acquired and liabilities assumed. We must first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. Gross assets acquired should exclude cash and cash equivalents, deferred tax assets and goodwill resulting from the effects of deferred tax liabilities. However, the gross assets acquired should include any consideration transferred (plus the fair value of any noncontrolling interest and previously held interest, if any) in excess of the fair value of net identifiable assets acquired. A tangible asset that is attached to and cannot be physically removed and used separately from another tangible asset (or an intangible asset representing the right to use a tangible asset) without incurring significant cost or significant diminution in utility or fair value to either asset (for example, land and building) should be considered a single asset. In that context, we consider a wood pellet production facility to be a single identifiable asset. We need to apply judgment to determine what is considered “substantially all” because ASU 2017-01 does not provide a bright line for making this assessment. If the “substantially all” threshold is met, the acquired set of assets and activities is not a business. If that threshold is not met, we must evaluate whether the set meets the definition of a business, which consists of inputs and at least one substantive process applied to those inputs that have the ability to contribute to the creation of outputs. If that threshold is not met but the set does not meet the definition of a business, the acquisition would be an asset acquisition. A business combination is an acquisition of a business from an entity not under common control and is accounted for using the acquisition method. Identifiable assets acquired and liabilities assumed are recognized at fair value on the acquisition date. Goodwill is calculated as the excess of the fair value of the consideration transferred, which excludes acquisition-related costs that are expensed, over the fair value of the net assets recognized and represents the future economic benefits arising from other net assets acquired that could not be individually identified and separately recognized. Fair value measurements may require us to make significant estimates and assumptions. A measurement period, which could be up to one year from the date of acquisition, exists to identify and measure the assets acquired and the liabilities assumed. During the measurement period, provisional amounts may be recognized and those amounts may subsequently be prospectively adjusted to reflect any new information about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of these amounts. At the end of the measurement period, any subsequent changes would not be recognized under the acquisition method but would instead follow other accounting principles, which would then generally impact earnings. Common Control Transactions Assets and businesses acquired from our sponsor and its controlled subsidiaries are accounted for as common control transactions. For assets acquired in a common control transaction, net assets acquired are accounted for on the carryover basis of accounting and consolidated prospectively as of the transaction date. For businesses acquired in a common control transaction, the net assets acquired are combined at their historical costs and prior periods are recast with historical net equity amounts prior to the transaction date are attributed to the General Partner and any noncontrolling partner interest at carryover basis. 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. 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 (loss) 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 that are recorded at the invoiced amount and billable under our contracts that are pending finalization of prerequisite billing documentation and do not bear interest. As of December 31, 2020 and 2019, we had no amounts in allowance for doubtful accounts given the lack of historical credit losses and no current expectations of credit 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 net realizable value using the first-in, first-out method (“FIFO”) for all inventories. 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. These costs and the finished production overhead allocated to inventory are reflected in cost of goods sold when inventory is sold. Intangibles Intangibles primarily consist of favorable or unfavorable customer contracts and an unfavorable shipping contact that were acquired in the Georgia Biomass Acquisition. Intangibles with definite lives are amortized based on the pattern of economic benefit over their estimated useful lives, which are reviewed annually. The intangibles acquired in the Georgia Biomass Acquisition are being amortized on a straight-line basis, as MT of wood pellets to be sold or shipped under each contract are constant through the end of such contracts. See Note 13, Goodwill and Other Intangibles . 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. Our off-take contracts are considered “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 require that we 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 by a customer. Each of 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 MT for product satisfying a base net calorific value and other technical specifications. These prices are generally fixed for the entire term, however, some may be 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 are the delivery of wood pellets, which we aggregate into MT. 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 to other parties 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. 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-MT rate as variable consideration and recognized as services are 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. In instances where we have contracts to exchange wood pellets held for sale in the ordinary course of business for similar wood pellets to be sold in the same line of business to facilitate sales to customers other than the parties to the exchange, we account for these exchanges as nonmonetary transactions at the carrying amount of the wood pellets transferred, with no impact to revenue and with no net impact to cost of goods sold once an equal amount of wood pellets have been exchanged. For the sale of the wood pellets received to customers not parties to the exchange, we recognize product sales revenue as described above for off-take contracts. To the extent that these exchanges also include compensation to us for shipping wood pellets, we recognize it as product sales revenue as those wood pellets are loaded and we recognize the shipping costs in cost of goods sold. Cost of Goods Sold Cost of goods sold includes the cost to produce and deliver wood pellets to customers, reimbursable shipping-related costs associated with specific off-take contracts with CIF and CFR shipping terms and costs associated with purchase and sale transactions. Distribution costs associated with shipping wood pellets to customers 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. Accrued and other current liabilities Accrued and other current liabilities primarily includes liabilities related to construction in progress, amounts related cost of goods sold such as utility costs at our production facilities, distribution costs associated with shipping wood pellets to customers, and costs associated with the purchase of wood fiber and wood pellets not yet invoiced. 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. Since August 2018 and March 2020, we have no longer applied hedge accounting treatment to any foreign currency and interest rate derivatives, respectively. Derivative instruments that did not or ceased to qualify, or are no longer designated, as accounting hedges are adjusted to fair value through earnings in the current period. To the extent hedge accounting had previously been applied, it was applied to qualifying cash flow hedges with unrealized changes in their fair value recognized as accumulated other comprehensive income in partners’ capital to the extent they could be considered effective in accordance with the accounting standards on derivatives and hedging applicable during those periods. The effective portion of qualifying foreign currency hedges was reclassified into revenue in the same period or periods during which the hedged revenue affected earnings. The effective portion of qualifying interest rate swaps was reclassified into interest expense in the same period or periods during which the hedged interest expense affects earnings. Property, Plant and Equipment Property, plant and equipment are recorded at cost, which includes the fair values of assets acquired. Equipment under finance 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 finance 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 operations. 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 may not be recoverable. There were no such indicators that would require impairment testing to be performed during the periods presented. Leases We have operating and finance leases related to real estate, machinery, equipment and other assets where we are the lessee. Operating leases with an initial term of 12 months or less are not recorded on the balance sheet but are recognized as lease expense on a straight-line basis over the applicable lease terms. Operating and finance leases with an initial term longer than 12 months are recorded on the balance sheet and classified as either operating or finance. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our leases do not contain any material residual value guarantees, restrictive covenants or subleases. In addition to fixed lease payments, we have contracts that incur variable lease expense related to usage (e.g. throughput fees, maintenance and repair and machine hours), which are expensed as incurred. Our leases have remaining terms of one improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. An incremental borrowing rate is applied to our leases for balance sheet measurement. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for a collateralized borrowing over a similar term of the lease payments as of the commencement date. We adopted ASU 2016-02, Leases , on and as of January 1, 2019 using the modified retrospective transition method, which we applied to all leases existing at the date of initial application of the ASU. We elected to use the effective date as the date of initial application, as opposed to the beginning of the earliest comparative period presented in the financial statements; consequently, financial information and disclosures are not presented under the new standard for periods prior to January 1, 2019. We elected the package of three practical expedients under the transition guidance within the new standard, which permitted us to not reassess our prior conclusions under the previous guidance concerning lease identification, lease classification and initial direct leasing costs. We elected the practical expedient to not evaluate existing or expired land easements that were not accounted for as leases under previous guidance. We did not, however, elect the separate practical expedient pertaining to the use of hindsight in determining the lease term for existing leases. For contracts that contain lease and nonlease components, nonlease components are separated and accounted for under other, relevant accounting standards. We made an accounting policy election to not separate nonlease components from lease components for heavy machinery and equipment. Operating leases are included in operating lease ROU assets, accrued and other current liabilities and long-term operating lease liabilities on our consolidated balance sheets. Finance leases are included in property, plant and equipment, the current portion of long-term debt and finance lease obligations and long-term debt and finance lease obligations on our consolidated balance sheets. Changes in ROU assets and operating lease liabilities are included net in change in operating lease liabilities on the consolidated statement of cash flows. 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. 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 and premiums are written-off as gain or loss on debt extinguishment in the same period. Unamortized debt issuance costs and original issue discounts and premiums related to a recognized debt liability are recognized as a direct deduction from the carrying amount of the related long-term debt and are amortized using the effective interest method. Unamortized debt issuance costs related to our revolving credit commitments are recognized as an asset and are amortized using the straight-line method. 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, 2020 and 2019, 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, 2020 and 2019, we performed a quantitative assessment using the market approach and determined the fair value of the reporting unit exceeded its carrying amount. For the year ended December 31, 2018, we performed a qualitative assessment and determined that 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. There have been no impairments to the carrying value of the Partnership’s goodwill during the periods presented. See Note 13, Goodwill and Other Intangibles . 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 that provide services to us and to independent directors of the General Partner. Phantom unit awards vest subject to the satisfaction of service requirements and/or the achievement of certain performance goals. Once these conditions have been met, 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 MSAs (see Note 15, Related-Party Transactions-Management Services Agreements and Note 18, Equity-Based Awards ). We also recognize compensation expense for phantom units awarded to independent directors. As of December 31, 2020, we have the ability to settle certain of our outstanding phantom unit awards under the LTIP in either cash or common units at our election. As we have the ability to settle the awards in common units as of December 31, 2020 and as we reasonably expect to be able to deliver common units at the settlement date, we have classified all of our outstanding phantom unit awards as equity on our balance sheets. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, 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. Income taxes Substantially all of our operating subsidiaries are organized as limited partnerships and entities that are disregarded entities for U.S. federal and applicable state income tax purposes. As a result, those entities disregarded for U.S. federal and state income tax purposes are not subject to U.S. federal and most state income taxes. Our partners and unitholders 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. One of our subsidiaries formed in connection with the Georgia Biomass Acquisition, Enviva Pellets Waycross Holdings, LLC, is an entity taxable as a corporation and is subject to U.S. federal income tax and accounts for income tax under the liability method. Deferred taxes are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of any tax rate change on deferred taxes is recognized in the period that includes the enactment date of the tax rate change. Realization of deferred tax assets is assessed on an annual basis and, unless a deferred tax asset is more likely than not to be utilized, a valuation allowance is recorded to write down the deferred tax assets to their net realizable value. Recently Adopted Accounting Standards On January 1, 2020, we adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which changes how entities measure credit losses for most financial assets. The adoption did not have a material impact on the financial statements. Recently Issued Accounting Standards not yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12- Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Transactions Between Entities U
Transactions Between Entities Under Common Control | 12 Months Ended |
Dec. 31, 2020 | |
Transactions Between Entities Under Common Control | |
Equity Method Investments and Joint Ventures Disclosure | Transactions Between Entities Under Common Control Enviva Pellets Greenwood Holdings II, LLC The $132.0 million purchase price for the Greenwood Drop-Down consisted of a cash payment of $129.7 million, net of a purchase price adjustment of $2.3 million. The change in net assets on July 1, 2020 from the Greenwood Drop-Down included $67.8 million of net assets acquired. The following table outlines the changes in consolidated net assets resulting from the Greenwood Drop-Down on July 1, 2020. Assets: Cash and cash equivalents $ 29 Accounts receivable, net 25 Inventories 5,165 Prepaid expenses and other current assets 21 Property, plant and equipment, net 104,662 Operating lease right-of-use assets 7,850 Intangible asset, net 845 Other long-term assets 71 Total assets 118,668 Liabilities: Accounts payable 1,951 Accrued and other current liabilities 4,303 Interest payable 366 Seller Note 36,880 Finance lease obligations 699 Long-term operating lease liabilities 6,649 Total liabilities 50,848 Net assets contributed to Partnership $ 67,820 The unaudited pro forma combined revenue and net income presented below have been prepared as if the Greenwood Drop-Down had occurred on January 1, 2019. The unaudited pro forma financial information has been derived from the consolidated statements of operations of the Partnership and Greenwood for the below periods. The historical financial information has been adjusted in the unaudited combined pro forma information to give effect to pro forma events that are (1) directly attributable to the Greenwood Drop-Down, (2) factually supportable and (3) expected to have a continuing impact on our results of operations following the Greenwood Drop-Down. The unaudited pro forma financial information does not include non-recurring items such as transaction costs related to the acquisition. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the Greenwood Drop-Down had taken place on January 1, 2019. The unaudited pro forma combined revenue and net loss for the years ended December 31, 2020 and 2019 are as follows: 2020 2019 Revenue $ 873,815 $ 682,604 Net loss (4,687) (46,323) Enviva Wilmington Holdings, LLC The $165.0 million purchase price for the Hamlet Drop-Down consisted of (1) an initial cash payment of $24.7 million, net of a purchase price adjustment of $0.3 million, on April 2, 2019, (2) the issuance of 1,681,237 unregistered common units at a value of $29.74 per unit, or $50.0 million of common units, on April 2, 2019, (3) $50.0 million in cash, paid on June 28, 2019 and (4) a third and final cash payment of $40.0 million paid on January 2, 2020. The changes in net assets at carryover basis on April 2, 2019 included $120.9 million net assets of the Hamlet JV, net of the elimination of $3.0 million of net related-party receivables and payables. The following table outlines the addition of net assets resulting from the Hamlet Drop-Down on April 2, 2019. Assets: Cash and cash equivalents $ 3,426 Related-party receivables 241 Prepaid expenses and other current assets 22 Property, plant and equipment, net 140,446 Other long-term assets 8 Total assets 144,143 Liabilities: Accounts payable 6,395 Related-party payables 1,923 Accrued and other current liabilities 14,965 Finance lease obligations 3 Total liabilities 23,286 Net assets contributed to Partnership $ 120,857 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We disaggregate our revenue into two categories: product sales and other revenue. Product sales includes sales of wood pellets. 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. Other revenue also includes fees received for other services, including for sales and marketing, scheduling, sustainability, consultation, shipping and risk management services, where the revenue is recognized when we have satisfied the performance obligation and have a right to the corresponding fee. These categories best reflect the nature, amount, timing and uncertainty of our revenue and cash flows. Performance Obligations As of December 31, 2020, the aggregate amount of consideration from contracts with customers allocated to the performance obligations that were unsatisfied or partially satisfied was approximately $14.3 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 7.0% of our remaining performance obligations as revenue in 2021, an additional 9.0% by 2022 and the balance thereafter. Our off-take contracts expire at various times through 2043 and our terminal services contract expires in 2021. 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 our terminal services contract, which was insignificant for the years ended December 31, 2020, 2019, and 2018, arises from price increases based on agreed inflation indices and from above-minimum throughput quantities or services. For the year ended December 31, 2020, we recognized $0.1 million of product sales revenue related to performance obligations satisfied in previous periods. For the year ended December 31, 2019, product sales revenue was reduced by $0.1 million related to performance obligations satisfied in previous periods. 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, 2020 and 2019 were $108.5 million and $67.7 million, respectively. Of these amounts, $95.0 million and $64.7 million, as of December 31, 2020 and 2019 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, 2020 and December 31, 2019, we had $4.9 million and $4.1 million, respectively of deferred revenue for future performance obligations under contracts associated with off-take contracts. Other Accrued and other current liabilities included approximately $50.6 million and $19.8 million at December 31, 2020 and, 2019, respectively, for amounts associated with our product sales. |
Significant Risks and Uncertain
Significant Risks and Uncertainties, Including Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
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 U.K., European Union (“EU”) as well as its member states and Japan. If the U.K., the EU or its member states or Japan significantly modify such legislation or regulations, then our ability to enter into new contracts as our existing contracts expire may be materially affected. Our current product sales are primarily to industrial customers located in the U.K., Denmark, Belgium and the Netherlands. 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: 2020 2019 2018 Customer A 40% 48% 46% Customer B 9% 10% 11% Customer C 23% 20% 16% Customer D 11% 15% 17% |
Inventory Impairment and Asset
Inventory Impairment and Asset Disposal | 12 Months Ended |
Dec. 31, 2020 | |
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 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; we received the $3.8 million in probable insurance recoveries in February 2019 plus an additional $0.5 million recognized as other income in 2019. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following at December 31: 2020 2019 Raw materials and work-in-process $ 12,500 $ 9,795 Consumable tooling 21,855 20,485 Finished goods 8,009 2,718 Total inventories $ 42,364 $ 32,998 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 Land $ 22,611 $ 15,226 Land improvements 60,110 56,637 Buildings 316,706 217,167 Machinery and equipment 799,881 588,447 Vehicles 3,105 635 Furniture and office equipment 8,202 6,822 Leasehold improvements 1,029 1,029 Property, plant and equipment 1,211,644 885,963 Less accumulated depreciation (295,921) (203,695) Property, plant and equipment, net 915,723 682,268 Construction in progress 156,096 69,512 Total property, plant and equipment, net $ 1,071,819 $ 751,780 Accrued amounts for property, plant and equipment and construction in progress included in accrued and other current liabilities were $10.8 million and $9.4 million at December 31, 2020 and 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Operating lease ROU assets and liabilities and finance leases were as follows as of December 31, 2020 and 2019: 2020 2019 Operating leases: Operating lease right-of-use assets $ 51,434 $ 32,830 Current portion of operating lease liabilities $ 3,450 $ 1,439 Long-term operating lease liabilities 50,074 33,469 Total operating lease liabilities $ 53,524 $ 34,908 Finance leases: Property plant and equipment, net $ 24,246 $ 7,398 Current portion of long-term finance lease obligations $ 8,828 $ 4,584 Long-term finance lease obligations 10,775 2,954 Total finance lease liabilities $ 19,603 $ 7,538 Operating and finance lease costs were as follows for the years ended December 31, 2020 and 2019: Lease Cost Classification 2020 2019 Operating lease cost: Fixed lease cost Cost of goods sold $ 5,806 $ 4,814 Variable lease cost Cost of goods sold 28 16 Short-term lease cost Cost of goods sold 8,421 7,309 Total operating lease costs $ 14,255 $ 12,139 Finance lease cost: Amortization of leased assets Depreciation and amortization 7,498 4,159 Variable lease cost Cost of goods sold 254 9 Interest on lease liabilities Interest expense 490 292 Total finance lease costs $ 8,242 $ 4,460 Total lease costs $ 22,497 $ 16,599 We are party to a lease agreement 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 21-year term, two five Depreciation expense relating to assets held under finance lease obligations was $1.8 million for the year ended December 31, 2018. Operating and finance lease cash flow information was as follows for the years ended December 31, 2020 and 2019: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,828 $ 4,826 Operating cash flows from finance leases 490 292 Financing cash flows from finance leases 5,571 3,304 Assets obtained in exchange for lease obligations: Operating leases $ 21,561 $ 7,465 Finance leases 12,487 6,493 The future minimum lease payments and the aggregate maturities of operating and finance lease liabilities are as follows as of December 31, 2020: Years Ending December 31, Operating Finance Total 2021 $ 6,726 $ 9,232 $ 15,958 2022 6,466 5,084 11,550 2023 6,365 2,304 8,669 2024 6,190 896 7,086 2025 6,184 608 6,792 Thereafter 66,570 2,529 69,099 Total lease payments 98,501 20,653 119,154 Less: imputed interest (44,977) (1,050) (46,027) Total present value of lease liabilities $ 53,524 $ 19,603 $ 73,127 The weighted-average remaining lease terms and discount rates for our operating and finance leases were weighted using the undiscounted future minimum lease payments and are as follows as of December 31, 2020: Weighted average remaining lease term (years): Operating leases 17 Finance leases 4 Weighted average discount rate: Operating leases 7% Finance leases 3% |
Leases | Leases Operating lease ROU assets and liabilities and finance leases were as follows as of December 31, 2020 and 2019: 2020 2019 Operating leases: Operating lease right-of-use assets $ 51,434 $ 32,830 Current portion of operating lease liabilities $ 3,450 $ 1,439 Long-term operating lease liabilities 50,074 33,469 Total operating lease liabilities $ 53,524 $ 34,908 Finance leases: Property plant and equipment, net $ 24,246 $ 7,398 Current portion of long-term finance lease obligations $ 8,828 $ 4,584 Long-term finance lease obligations 10,775 2,954 Total finance lease liabilities $ 19,603 $ 7,538 Operating and finance lease costs were as follows for the years ended December 31, 2020 and 2019: Lease Cost Classification 2020 2019 Operating lease cost: Fixed lease cost Cost of goods sold $ 5,806 $ 4,814 Variable lease cost Cost of goods sold 28 16 Short-term lease cost Cost of goods sold 8,421 7,309 Total operating lease costs $ 14,255 $ 12,139 Finance lease cost: Amortization of leased assets Depreciation and amortization 7,498 4,159 Variable lease cost Cost of goods sold 254 9 Interest on lease liabilities Interest expense 490 292 Total finance lease costs $ 8,242 $ 4,460 Total lease costs $ 22,497 $ 16,599 We are party to a lease agreement 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 21-year term, two five Depreciation expense relating to assets held under finance lease obligations was $1.8 million for the year ended December 31, 2018. Operating and finance lease cash flow information was as follows for the years ended December 31, 2020 and 2019: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,828 $ 4,826 Operating cash flows from finance leases 490 292 Financing cash flows from finance leases 5,571 3,304 Assets obtained in exchange for lease obligations: Operating leases $ 21,561 $ 7,465 Finance leases 12,487 6,493 The future minimum lease payments and the aggregate maturities of operating and finance lease liabilities are as follows as of December 31, 2020: Years Ending December 31, Operating Finance Total 2021 $ 6,726 $ 9,232 $ 15,958 2022 6,466 5,084 11,550 2023 6,365 2,304 8,669 2024 6,190 896 7,086 2025 6,184 608 6,792 Thereafter 66,570 2,529 69,099 Total lease payments 98,501 20,653 119,154 Less: imputed interest (44,977) (1,050) (46,027) Total present value of lease liabilities $ 53,524 $ 19,603 $ 73,127 The weighted-average remaining lease terms and discount rates for our operating and finance leases were weighted using the undiscounted future minimum lease payments and are as follows as of December 31, 2020: Weighted average remaining lease term (years): Operating leases 17 Finance leases 4 Weighted average discount rate: Operating leases 7% Finance leases 3% |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Derivative Instruments | Derivative InstrumentsWe 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. The preponderance of our off-take contracts are U.S. Dollar-denominated. We are primarily exposed to fluctuations in foreign currency exchange rates related to a minority of our off-take contracts that require future deliveries of wood pellets to be settled in British Pound Sterling (“GBP”) and Euro (“EUR”). 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 do not enter into derivative instruments for speculative or trading purposes. 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. In August 2018, due to 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 not probable that the timing of the forecasted revenues associated with the hedged transactions would occur as originally scheduled. As a result, 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. Since August 2018, none of our foreign currency derivative instruments have been 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 goods sold depending on the nature of the item being hedged. During the year ended December 31, 2020, we entered into pay-fixed, receive-variable interest rate swaps that expire in September 2021 and October 2021 to hedge interest rate risk associated with our variable rate borrowings under our senior secured revolving credit facility that are not designated and accounted for as cash flow hedges. Derivative instruments are classified as Level 2 assets or liabilities based on inputs such as spot and forward benchmark interest rates (such as LIBOR) and foreign exchange rates. The fair value of derivative instruments as of December 31, 2020 and 2019 was as follows: Asset (Liability) Balance Sheet Classification 2020 2019 Designated as hedging instruments: Interest rate swap Prepaid and other current assets $ — $ 56 Total derivatives designated as hedging instruments $ — $ 56 Not designated as hedging instruments: Interest rate swaps Accrued and other current liabilities $ (119) $ — Foreign currency exchange contracts: Prepaid and other current assets $ 308 $ 408 Other long-term assets 924 1,774 Accrued and other current liabilities (2,224) (735) Other long-term liabilities (3,508) (1,055) Total derivatives not designated as hedging instruments $ (4,619) $ 392 Unrealized losses related to the change in fair market value of interest rate swaps are recorded in interest expense and were $0.2 million for the year ended December 31, 2020. Our interest rate swap outstanding during the year ended December 31, 2019 was designated as a hedging instrument. Net unrealized losses related to the change of fair market value of foreign currency derivative instruments not designated as hedging instruments were $4.3 million and $4.6 million during the years ended December 31, 2020 and 2019, respectively and are included in product sales on the consolidated statements of operations. During the year ended December 31, 2018, we recorded a net unrealized gain of $8.6 million related to changes in the fair value of foreign currency instruments not designated as hedging instruments, of which $8.4 million was included in product sales and $0.2 million was included in cost of goods sold on the consolidated statements of operations. Included in the unrealized net gains for the year ended December 31, 2018 was $1.9 million related to the reclassification of unrealized net gains previously included in accumulated other comprehensive income as described above. Realized gains related to foreign currency derivatives settled were $0.3 million, $1.7 million and $4.6 million, respectively, during the years ended December 31, 2020, 2019 and 2018 and are included in product sales on the consolidated statements of operations. 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, 2019 were as follows: Amount of Gain Location of Amount of Interest rate swap $ (146) Interest expense $ 288 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, 2020, we would have received a net settlement termination payment of $4.8 million, which differs by $0.2 million 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, 2020 and 2019 were as follows: 2020 2019 Foreign exchange forward contracts in GBP £ 143,565 £ 50,575 Foreign exchange purchased option contracts in GBP £ 51,601 £ 43,415 Foreign exchange forward contracts in EUR € 12,968 € — Foreign exchange purchased option contracts in EUR € — € 1,200 Interest rate swaps $ 70,000 $ 34,354 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
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, prepaid expenses and other current assets, related-party receivables, net, accounts payable, related-party payables, net, 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 including the current portion are classified as Level 2 instruments. Derivatives are classified as Level 2 as they are fair valued using inputs that are observable in active markets such as benchmark interest rates and foreign exchange rates (see Note 11, Derivative Instruments ). The fair value of our 2026 Notes (see Note 14, Long-Term Debt and Finance Lease Obligations ) was determined based on observable market prices in an active market and was categorized as Level 2 in the fair value hierarchy. The fair value of the Seller Note is classified as Level 2 and is estimated on discounted cash flow analyses based on observable inputs in active markets for debt with similar terms and remaining maturities. The carrying amount of other long-term debt, which is primarily comprised of the senior secured revolving credit facility that resets based on a market rate, approximates fair value. The carrying amount and estimated fair value of long-term debt as of December 31, 2020 and 2019 was as follows: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair 2026 Notes $ 746,875 $ 796,875 $ 593,476 $ 644,250 Seller Note 37,571 40,405 — — Other long-term debt 122,000 122,000 2,006 2,006 Total long-term debt $ 906,446 $ 959,280 $ 595,482 $ 646,256 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill Goodwill was $99.7 million and $85.6 million at December 31, 2020 and 2019, respectively. Goodwill includes $14.0 million recorded associated with the Georgia Biomass Acquisition on July 31, 2020, see Note 4, Acquisition . Goodwill includes $80.7 million associated with the acquisition of Cottondale by our sponsor and its contribution of Cottondale to us in 2015 and $4.9 million from acquisitions in 2010. We did not record any impairment losses during the years ended December 31, 2020, 2019 or 2018. Intangibles Intangible assets (liabilities) consisted of the following at December 31, 2020: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Favorable customer contracts $ 6,200 $ (5,566) $ 634 Assembled workforce 1,856 (1,249) 607 Unfavorable customer contract (600) 57 (543) Unfavorable shipping contract (6,300) 485 (5,815) Total intangible liabilities, net $ 1,156 $ (6,273) $ (5,117) The Greenwood Drop-Down included an intangible asset of assembled workforce. As a result of the Georgia Biomass Acquisition, we recorded intangible assets and liabilities related to favorable off-take contracts that expired in 2020 or expire in December 2024, an unfavorable customer contract that expires in December 2024 and an unfavorable shipping contract that expires in December 2025. During the year ended December 31, 2020, $5.3 million of net amortization expense was included in depreciation and amortization on the consolidated statements of operations. The estimated aggregate net reduction of amortization expense for the next five years is as follows: Year Ended December 31, 2021 $ 664 2022 1,010 2023 1,140 2024 1,140 2025 1,163 Total $ 5,117 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long–Term Debt and Capital Lease Obligations | Long-Term Debt and Finance Lease Obligations Long-term debt and finance lease obligations at carrying value consisted of the following at December 31: 2020 2019 2026 Notes, net of unamortized discount, premium and debt issuance of $3.1 million and $6.5 million as of December 31, 2020 and 2019, respectively $ 746,875 $ 593,476 Senior secured revolving credit facility 120,000 — Seller Note, net of unamortized discount of $2.4 million 37,571 — Other loans 2,000 2,006 Finance leases 19,603 7,538 Total long-term debt and finance lease obligations 926,049 603,020 Less current portion of long-term debt and finance lease obligations (13,328) (6,590) Long-term debt and finance lease obligations, excluding current installments $ 912,721 $ 596,430 2026 Notes In December 2019, we issued $600.0 million in principal amount of 6.5% senior unsecured notes due January 15, 2026 (the “2026 Notes). We received gross proceeds of approximately $601.8 million from the 2026 Notes and net proceeds of approximately $595.8 million after deducting commissions and expenses. We used the net proceeds from the 2026 Notes to (1) redeem our existing $355.0 million principal amount of 8.5% senior unsecured notes due 2021 (the “2021 Notes”), including payment of the related redemption premium, (2) repay borrowings under our senior secured revolving credit facility, including payment of the related accrued interest and (3) for general partnership purposes. In July 2020, we issued an additional $150.0 million aggregate principal amount of the 2026 Notes at an offering price of 103.75% of the principal amount (the “Additional Notes”). We received net proceeds of approximately $153.6 million from the Additional Notes offering after deducting discounts and commissions. We used the net proceeds from the Additional Notes offering to fund a portion of the cash consideration for the Greenwood Drop-Down and Georgia Biomass Acquisition, to repay borrowings under our revolving credit facility and for general partnership purposes. Interest payments are due semi-annually in arrears on January 15 and July 15 of each year, commencing July 15, 2020. During 2020, we recorded $2.7 million of premium offset by debt issuance costs associated with the Additional Notes. During 2019, we recorded $6.6 million of debt issuance costs, offset by premium associated with the issuance of the 2026 Notes, which have been recorded as a deduction to long-term debt and finance lease obligations. We may redeem all or a portion of the 2026 Notes at any time at the applicable redemption price, plus accrued and unpaid interest, if any, (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) and, in some cases, plus a make-whole premium. As of December 31, 2020 and 2019, we were in compliance with the covenants and restrictions associated with, and no events of default existed under, the indenture dated as of December 9, 2019 governing the 2026 Notes. The 2026 Notes are guaranteed jointly and severally on a senior unsecured basis by our existing subsidiaries (excluding Enviva Partners Finance Corp.) that guarantee certain of our indebtedness and may be guaranteed by certain future restricted subsidiaries. 2021 Notes In December 2019, we redeemed all $355.0 million of aggregate principal amount of 2021 Notes and recognized a $9.0 million loss on the early retirement of debt obligation consisting of a $7.5 million debt redemption premium and $1.5 million for the write-off of unamortized debt issuance costs, original issue discount and premium. The amounts were amortized over the term of the 2021 Notes and were expensed in December 2019 when we repaid $355.0 million of aggregate principal amount of the 2021 Notes. The 2021 Notes early redemption was funded from the issuance of the 2026 Notes. Senior Secured Revolving Credit Facility We have a $350.0 million senior secured revolving credit facility that matures on October 18, 2023. Borrowings under the revolving credit commitments thereunder 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 on our Total Leverage Ratio (as defined in our credit agreement) at such time, with 25 basis point increases or decreases for each 0.50 increase or decrease in our 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. During the years ended December 31, 2020, 2019 and 2018, commitment fees were $0.9 million, $0.8 million and $0.5 million, respectively. At December 31, 2020, we had $120.0 million in outstanding borrowings under our senior secured revolving credit facility. At December 31, 2019, we had no outstanding borrowings under our senior secured revolving credit facility. We had a letter of credit outstanding under our senior secured revolving credit facility of $0.3 million at December 31, 2020 and none at December 31, 2019. The credit agreement contains certain covenants, restrictions and events of default. We are required to maintain (1) a maximum Total Leverage Ratio at or below 4.75 to 1.00 (or 5.00 to 1.00 during a Material Transaction Period) and (2) a minimum Interest Coverage Ratio (as defined in our credit agreement) of not less than 2.25 to 1.00. As of December 31, 2020 and 2019, we were in compliance with all covenants and restrictions associated with, and no events of default existed under, our senior secured revolving credit facility. Our obligations under the senior secured revolving credit facility are guaranteed by certain of our subsidiaries and secured by liens on substantially all of our assets; however, the senior secured revolving credit facility is not guaranteed by the Hamlet JV or secured by liens on its assets. Seller Note In connection with the Greenwood Drop-Down, we became a party to, and a guarantor of, a promissory note (the “Seller Note”) with a remaining principal balance of $40.0 million, which was initially recorded at its carrying value of $36.9 million. The Seller Note matures in February 2023 and has an interest rate of 2.5% per annum. Principal and related interest payments are due annually through February 2022 and quarterly thereafter. Debt Issuance Costs and Premium Unamortized debt issuance costs and premium included in long-term debt at December 31, 2020 and 2019 were $5.5 million and $6.5 million, respectively. Unamortized debt issuance costs associated with the revolving credit facility included in long-term assets was $1.5 million and $2.0 million at December 31, 2020 and 2019, respectively. Amortization expense included in interest expense for the years ended December 31, 2020, 2019 and 2018 was $1.9 million, $1.2 million and $1.1 million, respectively. Debt Maturities Our long-term debt matures through 2026 and our finance lease obligations have maturity dates of between 2021 and 2031. The aggregate maturities of long-term debt and finance lease obligations as of December 31, 2020 are as follows: Year Ending December 31: 2021 $ 13,328 2022 33,623 2023 130,920 2024 808 2025 and thereafter 752,924 Long-term debt and finance lease obligations 931,603 Unamortized premium and debt issuance costs (5,554) Total long-term debt and finance lease obligations $ 926,049 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Related-party amounts included on the consolidated statements of operations were as follows: For the Year Ended December 31, 2020 2019 2018 Other revenue $ 1,264 $ 1,789 $ 3,545 Cost of goods sold 125,284 111,491 84,148 General and administrative expenses (1) 32,545 29,457 21,762 (1) Includes $10.3 million, $5.0 million and $4.7 million of expense related to Affiliate Grants Management Services Agreements Enviva Partners, LP and the Hamlet JV are parties to MSAs with Enviva Management Company. Enviva Management Company provides us with operations, general administrative, management and other services. We reimburse Enviva Management Company for all direct or indirect internal or third-party expenses it incurs in connection with the provision of such services. The MSAs include rent-related amounts for noncancelable operating leases for office space in Maryland and North Carolina held by our sponsor. We believe the costs allocated to us 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. Under the Hamlet JV’s MSA (the “Hamlet JV MSA”), the Hamlet JV pays an annual management fee to Enviva Management Company; to the extent allocated costs exceed the annual management fee, the additional costs are recorded with an increase to partners’ capital. In connection with the Hamlet Drop-Down, Enviva Management Company waived the Hamlet JV’s obligation to pay approximately $2.7 million of management fees payable to Enviva Management Company from the date thereof until July 1, 2020 (the “Hamlet JV MSA Fee Waiver”). Related-party amounts included on the consolidated balance sheets under our MSAs were as follows: As of December 31, 2020 2019 Finished goods inventory $ 907 $ 419 Related-party payables 8,650 18,703 Related-party amounts included on the consolidated statements of operations under our MSAs were as follows: For the Year Ended December 31, 2020 2019 2018 Cost of goods sold $ 74,475 $ 63,377 $ 52,280 General and administrative expenses 32,545 29,457 21,762 During the years ended December 31, 2020 and 2019, $1.9 million and $2.6 million, respectively, of fees expensed under the Hamlet JV MSA were waived and recorded as an increase to partners’ capital. Drop-Down Agreements Greenwood Drop-Down Pursuant to the Third EVA MSA Fee Waiver, during the year ended December 31, 2020, $18.0 million was recorded as an increase to partners’ capital consisting of expenses waived under the agreement. Hamlet Drop-Down On the date of the Hamlet Drop-Down: • We entered into an agreement with our sponsor, pursuant to which (1) our sponsor agreed to guarantee certain cash flows from the Hamlet plant until June 30, 2020, (2) our sponsor agreed to reimburse us for construction cost overruns in excess of budgeted capital expenditures for the Hamlet plant, subject to certain exceptions, (3) we agreed to pay to our sponsor quarterly incentive payments for any wood pellets produced by the Hamlet plant in excess of forecast production levels through June 30, 2020 and (4) our sponsor agreed to retain liability for certain claims payable, if any, by the Hamlet JV (the “Hamlet Make-Whole Agreement”). • We entered into an agreement with Enviva Management Company to waive our obligation to pay an aggregate of approximately $13.0 million in fees payable under our MSA with Enviva Management Company (the “EVA MSA”) with respect to the period from the date of the Hamlet Drop-Down through the second quarter of 2020 (the “First EVA MSA Fee Waiver”). • The Hamlet JV entered into an interim services agreement (the “ISA”) with Enviva Hamlet Operator, LLC, a wholly owned subsidiary of our sponsor (“Hamlet Operator”), pursuant to which Hamlet Operator, as an independent contractor, agreed to manage, operate, maintain and repair the Hamlet plant and provide other services to the Hamlet JV for the period from July 1, 2019 through June 30, 2020 in exchange for a fixed fee per MT of wood pellets produced by the Hamlet plant during such period and delivered at place to the Wilmington terminal. Under and during the term of the ISA, Hamlet Operator agreed to (1) pay all operating and maintenance expenses at the Hamlet plant, (2) cover all reimbursable general and administrative expenses associated with the Hamlet plant and (3) pay other costs and expenses incurred by the Hamlet plant to produce and sell the wood pellets delivered to the Wilmington terminal from the Hamlet plant. Our sponsor guaranteed all obligations of Hamlet Operator under the ISA. During the year ended December 31, 2020, $3.5 million was recorded as an increase to partners’ capital consisting of expenses waived under the First EVA MSA Fee Waiver. Cost of goods sold included $25.2 million net of a cost of cover deficiency fee from our sponsor pursuant to the Hamlet Make-Whole Agreement as a result of Hamlet Operator’s failure to meet specified production levels, offset by the agreed-upon price due to Hamlet Operator for the wood pellets produced by the Hamlet plant that we sold. As of December 31, 2020, included in related-party receivables, net are $12.3 million related to the ISA. The Hamlet Make-Whole Agreement, First EVA MSA Waiver and ISA expired pursuant to their terms on June 30, 2020. During the year ended December 31, 2019, $19.7 million was recorded as an increase to partners’ capital and $7.7 million was recorded in cost of goods sold pursuant to the agreements we entered into on the date of acquisition of the Hamlet JV. The increases to partners’ capital are comprised of expenses waived under the First EVA MSA Fee Waiver and the Hamlet JV MSA Fee Waiver and reimbursement of construction cost overruns in excess of budgeted capital expenditures for the Hamlet plant. The net reduction in cost of goods sold comprises our receipt of a cost of cover deficiency fee from our sponsor pursuant to the Make-Whole Agreement as a result of Hamlet Operator’s failure to meet specified production levels, offset by the agreed-upon price due to Hamlet Operator for the pellets produced by the Hamlet plant that we have sold. Hamlet JV Revolver Our sponsor assigned to us all of its rights and obligations under the amended and restated credit agreement, dated as of June 30, 2018, between the Hamlet JV, as borrower, and our sponsor, as lender. On April 2, 2019, we amended and restated the Hamlet JV Revolver to extend the maturity date of the revolving loans made to the Hamlet JV and increase our commitment as lender to fund increases in the amount of such loans from $30.0 million to $60.0 million in order to fund capital expenditures and working capital at the Hamlet plant. As of December 31, 2020 and 2019, the outstanding balance of the Hamlet JV Revolver was $41.7 million and $52.2 million, respectively, due from the Hamlet JV to Enviva, LP, both of which are eliminated upon consolidation. Second EVA MSA Fee Waiver In June 2019, we entered into an additional agreement with Enviva Management Company (the “Second EVA MSA Fee Waiver”) pursuant to which we received a $5.0 million waiver of fees under the EVA MSA through September 30, 2019 as consideration for an assignment of two shipping contracts to our sponsor to rebalance our and our sponsor’s respective shipping obligations under our existing off-take contracts. During the year ended December 31, 2019, $5.0 million of fees expensed under the EVA MSA were waived and recorded as an increase to partners’ capital pursuant to the Second EVA MSA Fee Waiver. Wilmington Drop-Down - Second Payment In October 2017, we purchased all of the issued and outstanding limited liability company interests in Enviva Port of Wilmington, LLC (“Wilmington”) for total consideration of $130.0 million (the “Wilmington Drop-Down”). On April 1, 2019, we made the second and final payment of $74.0 million, which consisted of $24.3 million in cash, of which $22.8 million was distributed to John Hancock, and the issuance of 1,691,627 common units, or approximately $49.7 million in common units, which were distributed to John Hancock. Greenwood Contract We were party to a contract with Greenwood to purchase wood pellets produced by the Greenwood plant through March 2022 (the “Greenwood Contract”) and had a take-or-pay obligation with respect to 550,000 MTPY of wood pellets from July 2019 through March 2022 subject to Greenwood’s option to increase or decrease the volume by 10% each contract year. Pursuant to an amendment to the Greenwood Contract, our take-or-pay obligation with respect to 550,000 MTPY of wood pellets was deferred to 2021. The Greenwood Contract was terminated on the date of the Greenwood Drop-Down. During the years ended December 31, 2020, 2019 and 2018, we purchased $18.8 million, $46.2 million and $27.4 million, respectively, of wood pellets from Greenwood and recorded a cost of cover deficiency fee of approximately $0.3 million, $5.0 million and $0.7 million, respectively, as Greenwood was unable to satisfy certain commitments. As of December 31, 2020, the net purchased amount of $18.1 million related to the Greenwood contract was included in cost of goods sold and there was no finished good inventory. As of December 31, 2019 and 2018, of the net $41.2 million and $26.7 million, $40.9 million and $26.2 million is included in cost of goods sold, and $0.3 million and $0.5 million is included in finished goods inventory, respectively. As of December 31, 2020, there were no related-party payables related to our wood pellet purchases from Greenwood. As of December 31, 2019, $1.3 million is included in related-party payables related to our wood pellet purchases from Greenwood. Holdings TSA Prior to its termination on the date of the Greenwood Drop-Down, we were party to a long-term terminal services agreement with our sponsor (the “Holdings TSA”). Pursuant to the Holdings TSA, our 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. During the years ended December 31, 2020 and 2019, we recorded no terminal services revenue from our sponsor. During the year ended December 31, 2018, we recorded $0.8 million as terminal services revenue from our sponsor, which is included in other revenue. In 2018, the Holdings TSA was amended and assigned to Greenwood and provided for deficiency payments to Wilmington if quarterly minimum throughput requirements were not met. During the years ended December 31, 2020, 2019 and 2018, we recorded $1.3 million, $1.8 million and $2.2 million, respectively, of deficiency fees from Greenwood, which is included in other revenue. Additionally, in 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 (“FiberCo”), a wholly owned subsidiary of our sponsor, including through a wood supply agreement that provided for deficiency fees in the event FiberCo did not satisfy certain volume commitments. Purchased raw materials net of cost of cover deficiency fees are included in cost of goods sold. Raw materials purchased during the year ended December 31, 2020 were $7.5 million. No cost of cover deficiency fees were recognized during the year ended December 31, 2020. During the year ended December 31, 2019, cost of cover deficiency fees net of raw material purchases were $0.5 million. During the year ended December 31, 2018, raw material purchases were $7.1 million. There were no cost of cover deficiency fees during the year ended December 31, 2018. As of December 31, 2020, $0.3 million is included in related-party payables related to raw materials purchased from FiberCo. There was no amount in related-party payables related to raw materials purchased from FiberCo as of December 31, 2019. Equipment Transfer In April 2020, Enviva Pellets Northampton, LLC sold certain equipment to the sponsor for approximately $4.1 million. Biomass Option Agreement – Enviva Holdings, LP In February 2017, Enviva, LP entered into an agreement and a confirmation thereunder with our sponsor (together, as amended, the “Option Contract”). During the year ended December 31, 2018, Enviva, LP purchased $1.7 million of wood pellets from our sponsor. The Option Contract terminated in accordance with its terms in March 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our consolidated statement of operations for the year ended December 31, 2020 included income tax expense of $0.1 million. For the years ended December 31, 2019 and 2018, no provision for income tax was recorded in the consolidated financial statements. Components of the income tax provision applicable to our federal and state taxes are as follows: 2020 Deferred income tax expense: U.S. Federal $ 69 Total deferred $ 69 Total income tax expense related to continuing operations $ 69 The effective income tax rate from continuing operations varies from the U.S. Federal statutory rate principally due to the following: 2020 Income taxes at statutory federal income tax rate $ 3,601 Increase (decrease) in income taxes resulting from: Partnership earnings not subject to tax (3,671) Other 139 Total income tax expense $ 69 Deferred tax assets and liabilities result from the following: 2020 Deferred tax assets: Net operating loss carryforward $ 3,611 Total deferred tax assets $ 3,611 Deferred tax liabilities: Investment in affiliates $ (16,828) Total deferred tax liabilities $ (16,828) Net deferred tax assets (liabilities) $ (13,217) As of December 31, 2020, we have federal net operating loss carryforwards of approximately $17.2 million expiring in years 2033 to 2036. For calendar year 2020, the only periods subject to examination for U.S. federal and state income tax returns are 2017 through 2019. We believe our income tax filing positions, including our status as a pass-through entity, would be sustained on audit and do not anticipate any adjustments that would result in a material change to our consolidated balance sheet. Therefore, no reserves for uncertain tax positions or interest and penalties have been recorded during the years ended December 31, 2020, 2019 and 2018. |
Partners' Capital
Partners' Capital | 12 Months Ended |
Dec. 31, 2020 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital | Partners’ Capital Common Units - Issuance In June 2020, we issued 6,153,846 common units in a private placement at a price of $32.50 per common unit for gross proceeds of $200.0 million. We received proceeds of $190.5 million, net of $9.5 million of issuance costs. In March 2019, we issued 3,508,778 common units in a registered direct offering for net proceeds of approximately $97.0 million, net of $3.0 million of issuance costs. On April 1, 2019, in connection with the Second Payment for the Wilmington Drop-Down, we issued 1,691,627 common units, or $49.7 million in common units, to the Hamlet JV, which common units were distributed to John Hancock. Common Units - Sponsor In January 2018, our sponsor sold to our 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, our sponsor sold to third parties all of the 1,265,453 common units held by our sponsor on such date. All of our subordinated units, which at the time were held by our 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 our sponsor. On April 2, 2019, in connection with the Hamlet Drop-Down, we issued 1,681,237 common units, or $50.0 million in common units, to our sponsor. Shelf Registration - Equity Interests in the Partnership We filed a shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (the “SEC”) on June 21, 2019 to allow us, from time to time, in one or more offerings, to offer and sell (1) common units representing limited partner interests in Enviva Partners, LP and (2) preferred units representing equity interests in Enviva Partners, LP. The aggregate initial offering price of all securities sold by us under the effective shelf registration statement may not exceed $500.0 million. On April 1, 2019, in connection with the Second Payment for the Wilmington Drop-Down, we issued 1,691,627 common units, or $49.7 million in common units, to the Hamlet JV, which common units were distributed to John Hancock. On April 2, 2019, in connection with the Hamlet Drop-Down, we issued 1,681,237 common units, or $50.0 million in common units, to our sponsor. In accordance with our registration rights agreements with John Hancock, we registered the common units issued for the Wilmington-Drop Down and the Hamlet Drop-Down for resale, subject to certain limitations, pursuant to the effective shelf registration statement. In connection with the closing of our private placement of common units in June 2020, we entered into a registration rights agreement with investors, pursuant to which we agreed to file and maintain a registration statement with respect to the resale of the common units on the terms set forth therein. On July 10, 2020, we filed the registration statement and on July 20, 2020, the registration statement was declared effective. 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 years ended December 31, 2020 and 2019, we did not sell common units under the ATM Program. Allocations of Net Income (Loss) The Partnership’s partnership agreement contains provisions for the allocation of net income and loss to our unitholders and the General Partner, a wholly owned subsidiary of our sponsor. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners of the Partnership in accordance with their respective percentage ownership interest. Such allocations are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions, which are allocated 100% to the General Partner. Prior to the Hamlet Drop-Down, John Hancock had received all of its capital contributions and substantially all of its preference amount and the historical net losses of the Hamlet JV had been allocated to the members of the Hamlet JV in proportion to their unreturned capital contributions; consequently, the balance of members’ capital attributable to John Hancock was negative at the time of the Hamlet Drop-Down. We have not received full repayment of revolving borrowings from the Hamlet JV pursuant to the Hamlet JV Revolver or its capital contributions and full preference amount as of December 31, 2020; as a result, none of the earnings of the Hamlet JV have been allocated to John Hancock following the Hamlet Drop-Down and no change has been recognized to the negative noncontrolling interest balance attributable to John Hancock that we acquired. 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 we achieve distributions in amounts exceeding specified target distribution levels. Our sponsor currently holds the IDRs but may transfer them at any time. 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 our 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 Record Payment Distribution Total Cash Total Payment to holder of Incentive Distribution Rights June 30, 2019 July 31, 2019 August 15, 2019 August 29, 2019 $ 0.6600 $ 22.1 $ 2.8 September 30, 2019 October 30, 2019 November 15, 2019 November 29, 2019 $ 0.6700 $ 22.4 $ 3.1 December 31, 2019 January 29, 2020 February 14, 2020 February 28, 2020 $ 0.6750 $ 22.7 $ 3.3 March 31, 2020 April 29, 2020 May 15, 2020 May 29, 2020 $ 0.6800 $ 22.9 $ 3.5 June 30, 2020 August 5, 2020 August 14, 2020 August 28, 2020 $ 0.7650 $ 30.4 $ 7.5 September 30, 2020 October 30, 2020 November 13, 2020 November 27, 2020 $ 0.7750 $ 30.8 $ 7.9 December 31, 2020 January 29, 2021 February 15, 2021 February 26, 2021 $ 0.7800 $ 31.2 $ 8.1 For purposes of calculating our earnings per unit under the two-class method, common units are treated as participating preferred units. 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. 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 (loss): Accumulated other comprehensive income at December 31, 2018 $ 439 Cumulative effect of accounting change - derivative instruments 18 Net unrealized losses on cash flow hedges (146) Reclassification of net gains on cash flow hedges realized into net loss (288) Accumulated other comprehensive income at December 31, 2019 23 Reclassification of net gains on cash flow hedges realized into net loss (22) Currency translation adjustment (19) Accumulated other comprehensive loss at December 31, 2020 $ (18) Hamlet JV The capital of the Hamlet JV is divided into two classifications: (1) Class A Units and (2) Class B Units, issued at a price of $1.00 per unit for each class. Class A Units - Noncontrolling Interests Class A Units were issued to John Hancock in exchange for capital contributions at a price of $1.00 for each Class A Unit. John Hancock had a total capital commitment of $235.2 million and, as of December 31, 2020, John Hancock held 227.0 million Class A Units with a remaining capital commitment amount of $8.2 million. Class B Units - Controlling Interests Class B Units were issued to the Partnership in exchange for capital contributions at a price of $1.00 for each Class B Unit. The Partnership had a total capital commitment of $232.2 million and, as of December 31, 2020, the Partnership held 224.0 million Class B Units with a remaining commitment amount of $8.2 million. Pursuant to the limited liability company agreement of the Hamlet JV (the “Hamlet JV LLCA”), we are the managing member of the Hamlet JV and have the authority to manage the business and affairs of the Hamlet JV and take actions on its behalf, including adopting annual budgets, entering into agreements, effecting asset sales or biomass purchase agreements, making capital calls, incurring debt and taking other actions, subject to consent of John Hancock in certain circumstances. The Hamlet JV LLCA also sets forth the capital commitments and limitations thereon from each of the members and provides for the allocation of sale proceeds and distributions among the holders of outstanding Class A Units and Class B Units. We included all accounts of the Hamlet JV in our consolidated results as of April 2, 2019 as the Class B Units represent a controlling interest in the Hamlet JV. Distribution Rights Distributions to John Hancock and to the Partnership are made in the reasonable discretion of the Partnership as managing member and are governed by the waterfall provisions of the Hamlet JV LLCA, which provides that distributions, after repayment of revolving borrowings under the Hamlet JV Revolver, are to be made as follows: • First: To the members in proportion to their relative unreturned capital contributions, then to the members in proportion to their relative unpaid preference amount. • Thereafter: 25% to John Hancock and 75% to the Partnership. Wilmington Drop-Down Wilmington was a wholly owned subsidiary of the Hamlet JV prior to the consummation of the Wilmington Drop-Down. Our consolidated financial statements for the periods prior to October 2, 2017, were retrospectively recast to include the financial results of Wilmington as if the consummation of the Wilmington Drop-Down had occurred on May 15, 2013, the date Wilmington was originally organized. The interests of the Hamlet JV’s third-party investors in 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 operations for the years ended December 31, 2020, 2019 and 2018 contained no noncontrolling interests in Wilmington. |
Equity-Based Awards
Equity-Based Awards | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [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 and other awards. The LTIP limits the number of common units that may be delivered pursuant to awards under the plan to 3,450,000 common units in accordance with the second amendment to the LTIP, which became effective on January 27, 2021. If equity awards granted under the LTIP are forfeited, canceled, exercised, paid in cash 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 2020, 2019 and 2018, the board of directors of the General Partner granted phantom units in tandem with corresponding DERs to employees of Enviva Management Company who provide services to us (the “Affiliate Grants”) and phantom units in tandem with corresponding DERs to independent 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 of the rights of a common unitholder with respect to the phantom units until the phantom units have vested and been settled. Awards of the phantom units settled in common units are settled 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 (in the case of performance-based Affiliate Grants) are forfeited. Forfeitures are recognized when the actual forfeiture occurs. Affiliate Grants A summary of the Affiliate Grants for the years ended December 31, 2020, 2019 and 2018 is as follows: Time-Based Phantom Units Performance-Based Phantom Units Total Affiliate Grant Phantom Units Units Weighted-Average Grant Date Fair Value (per unit)(1) Units Weighted-Average Grant Date Fair Value (per unit)(1) Units Weighted-Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 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 Granted 395,851 $ 30.41 219,943 $ 30.28 615,794 $ 30.36 Forfeitures (99,999) $ 28.56 (24,185) $ 29.82 (124,184) $ 28.80 Vested (145,506) $ 18.30 — $ — (145,506) $ 18.30 Nonvested December 31, 2019 874,286 $ 28.90 435,270 $ 28.84 1,309,556 $ 28.88 Granted 552,988 $ 37.98 387,060 $ 38.02 940,048 $ 38.00 Forfeitures (133,273) $ 33.15 (105,935) $ 30.89 (239,208) $ 32.15 Vested (232,116) $ 26.97 (67,881) $ 28.03 (299,997) $ 27.21 Nonvested December 31, 2020 1,061,885 $ 33.52 648,514 $ 34.07 1,710,399 $ 33.73 ____________________________________________ (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 or fourth anniversary of the grant date and performance-based Affiliate Grants vest in three , respectively, 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 expensed by Enviva Management Company at the grant date. Compensation expense is based on the grant date fair value. Changes in unit-based compensation expense due to passage of time, forfeitures, probability of meeting required performance conditions and final settlements are recorded as adjustments to unit-based compensation expense and partners’ capital. For performance-based Affiliate Grants, expense is accrued only to the extent that the performance goals are considered to be probable of occurring. Enviva Management Company recognizes unit-based compensation expense for the units awarded and a portion of that expense is allocated to us under the MSAs in the same manner as other corporate expenses. Our portion of the unit-based compensation expense is included in cost of goods sold and general and administrative expenses. We recognized $10.3 million, $5.0 million and $4.7 million of general and administrative expense associated with the Affiliate Grants during the years ended December 31, 2020, 2019 and 2018, respectively. As performance goals were met during 2018, no unit-based compensation with respect to performance-based Affiliate Grants expense was adjusted. We paid $5.0 million to Enviva Management Company to satisfy the withholding tax requirements associated with 232,116 time-based Affiliate Grants and 67,881 performance-based Affiliate Grants that vested under the LTIP during the year ended December 31, 2020. We paid $1.9 million to Enviva Management Company to satisfy the withholding tax requirements associated with 145,506 time-based Affiliate Grants that vested under the LTIP during the year ended December 31, 2019. No performance-based Affiliate Grants vested under the LTIP during the year ended December 31, 2019. The unrecognized estimated unit-based compensation cost relating to outstanding Affiliate Grants at December 31, 2020 was $14.1 million, which will be recognized over the remaining vesting period. Director Grants A summary of the Director Grant unit awards subject to vesting for the years ended December 31, 2020, 2019 and 2018, is as follows: Time-Based Phantom Units Units Weighted-Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 2017 15,840 $ 25.25 Granted 13,964 $ 28.65 Vested (15,840) $ 25.25 Nonvested December 31, 2018 13,964 $ 28.65 Granted 13,264 $ 30.16 Vested (13,964) $ 28.65 Nonvested December 31, 2019 13,264 $ 30.16 Granted 14,987 $ 38.37 Vested (13,264) $ 30.16 Nonvested December 31, 2020 14,987 $ 38.37 ____________________________________________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. In January and August 2020, Director Grants valued at $0.5 million and $0.1 million were granted, which vest on the first anniversary of the grant dates, in January and August 2021, respectively. In January 2019, Director Grants valued at $0.4 million were granted. which vested on the first anniversary of the grant date in January 2020. In January 2021, the Director Grants that were unvested at December 31, 2020 vested and common units were issued in respect thereof. During the year ended December 31, 2018, 420 common units were granted and issued to independent directors of the General Partner as compensation for services performed on the General Partner’s board of directors. No common units were granted during the years ended December 31, 2020 and 2019. For the year ended December 31, 2020, we recorded $0.5 million of unit-based compensation expense with respect to the Director Grants. For each of the years ended December 31, 2019 and 2018, we recorded $0.4 million of unit-based compensation expense with respect to the Director Grants. The unrecognized estimated unit-based compensation cost relating to outstanding Director Grants at December 31, 2020 is $0.1 million and will be recognized over the remaining vesting period. Distribution Equivalent Rights 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. DER distributions paid related to time-based Affiliate Grants were $3.9 million, $2.7 million and $1.8 million, respectively, for the years ended December 31, 2020, 2019 and 2018. At December 31, 2020, there were no DER distributions unpaid related to time-based Affiliate Grants. At December 31, 2019, $0.6 million of DER distributions unpaid related to time-based Affiliate Grants were included in related-party payables. DER distributions unpaid related to the performance-based Affiliate Grants were as follows as of December 31: 2020 2019 Accrued liabilities $ 1,697 $ 397 Other long-term liabilities 2,942 1,193 Total unpaid DERs related to performance-based Affiliate Grants $ 4,639 $ 1,590 |
Net Income (Loss) per Limited P
Net Income (Loss) per Limited Partner Unit | 12 Months Ended |
Dec. 31, 2020 | |
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 identified the IDRs and phantom units as participating securities and apply 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) available per limited partner unit is as follows for the years ended December 31: 2020 2019 2018 Enviva Partners, LP limited partners’ interest in net income (loss) $ 13,624 $ (5,822) $ 6,952 Less: Distributions declared on: Common units $ 115,318 $ 88,761 $ 54,604 Subordinated units through end of subordination period — — 12,407 IDRs 26,917 11,439 5,867 Total distributions declared 142,235 100,200 72,878 Earnings less than distributions $ (128,611) $ (106,022) $ (65,926) Basic and diluted net (loss) income per limited partner unit is as follows: Year Ended December 31, 2020 Common General Weighted-average common units outstanding—basic 36,813 — Effect of nonvested phantom units — — Weighted-average common units outstanding—diluted 36,813 — Year Ended December 31, 2020 Common General Total Distributions declared $ 115,318 $ 26,917 $ 142,235 Earnings less than distributions (128,611) — (128,611) Net (loss) income available to partners $ (13,293) $ 26,917 $ 13,624 Weighted-average units outstanding—basic and diluted 36,813 Net loss per limited partner unit—basic and diluted $ (0.36) Year Ended December 31, 2019 Common General Weighted-average common units outstanding—basic 31,791 — Effect of nonvested phantom units — — Weighted-average common units outstanding—diluted 31,791 — Year Ended December 31, 2019 Common General Total Distributions declared $ 88,761 $ 11,439 $ 100,200 Earnings less than distributions (106,022) — (106,022) Net (loss) income available to partners $ (17,261) $ 11,439 $ (5,822) Weighted-average units outstanding—basic and diluted 31,791 Net loss per limited partner unit—basic and diluted $ (0.54) Year Ended December 31, 2018 Common Subordinated General 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 Subordinated General Total Distributions declared $ 54,604 $ 12,407 $ 5,867 $ 72,878 Earnings less than distributions (53,720) (12,206) — (65,926) Net income available to partners $ 884 $ 201 $ 5,867 $ 6,952 Weighted-average units outstanding—basic and diluted 21,533 4,893 Net income per limited partner unit—basic and diluted $ 0.04 $ 0.04 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments We have entered into throughput agreements expiring between 2023 and 2028 to receive terminal and stevedoring services at certain of our terminals, some of which include options to extend for up to 5 years. 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 price index, for a defined period of time, ranging from monthly to annually. At December 31, 2020, we had approximately $22.8 million related to firm commitments under such terminal and stevedoring services agreements. For the years ended December 31, 2020, 2019 and 2018, terminal and stevedoring services expenses were $9.7 million, $11.3 million and $9.8 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 2023 through 2026, we are 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, 2020, 2019 and 2018, ground transportation expenses were $30.7 million, $25.5 million and $29.8 million, respectively. We have entered into long-term supply arrangements, expiring between 2021 through 2026, 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 1,080,000 MT of wood pellets from British Columbia are fully offset by an agreement to sell 1,080,000 MT of wood pellets to the same counterparty from our terminal locations, where $237.5 million remains to be sold as of December 31, 2020. Under long-term supply arrangements, we purchased approximately $43.2 million, $51.6 million and $29.5 million of wood pellets for the years ended December 31, 2020, 2019 and 2018, respectively. Fixed and determinable portions of the minimum aggregate future payments under these firm terminal and stevedoring services, ground transportation and wood pellet supply agreements for the next five years are as follows: 2021 $ 142,383 2022 119,881 2023 112,633 2024 83,182 2025 41,673 Total $ 499,752 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 2021 through 2039, 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 seventeen 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. Shipping expenses included in cost of goods sold was $75.0 million for the year ended December 31, 2020 and $64.1 million for each of the years ended December 31, 2019 and 2018. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [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. |
Reclassification | Reclassification Certain prior year amounts have been reclassified from general and administrative expenses to related-party management services agreement (“MSA”) fees to conform to current period presentation on the consolidated statements of operations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
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. |
Business Combinations | A business combination is an acquisition of a business from an entity not under common control and is accounted for using the acquisition method. Identifiable assets acquired and liabilities assumed are recognized at fair value on the acquisition date. Goodwill is calculated as the excess of the fair value of the consideration transferred, which excludes acquisition-related costs that are expensed, over the fair value of the net assets recognized and represents the future economic benefits arising from other net assets acquired that could not be individually identified and separately recognized. Fair value measurements may require us to make significant estimates and assumptions. A measurement period, which could be up to one year from the date of acquisition, exists to identify and measure the assets acquired and the liabilities assumed. During the measurement period, provisional amounts may be recognized and those amounts may subsequently be prospectively adjusted to reflect any new information about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of these amounts. At the end of the measurement period, any subsequent changes would not be recognized under the acquisition method but would instead follow other accounting principles, which would then generally impact earnings. |
Common Control Transactions | Common Control Transactions Assets and businesses acquired from our sponsor and its controlled subsidiaries are accounted for as common control transactions. For assets acquired in a common control transaction, net assets acquired are accounted for on the carryover basis of accounting and consolidated prospectively as of the transaction date. For businesses acquired in a common control transaction, the net assets acquired are combined at their historical costs and prior periods are recast with historical net equity amounts prior to the transaction date are attributed to the General Partner and any noncontrolling partner interest at carryover basis. 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. |
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 (loss) 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 that are recorded at the invoiced amount and billable under our contracts that are pending finalization of prerequisite billing documentation and do not bear interest. As of December 31, 2020 and 2019, we had no amounts in allowance for doubtful accounts given the lack of historical credit losses and no current expectations of credit losses. |
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 net realizable value using the first-in, first-out method (“FIFO”) for all inventories. 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. These costs and the finished production overhead allocated to inventory are reflected in cost of goods sold when inventory is sold. |
Intangibles | IntangiblesIntangibles primarily consist of favorable or unfavorable customer contracts and an unfavorable shipping contact that were acquired in the Georgia Biomass Acquisition. Intangibles with definite lives are amortized based on the pattern of economic benefit over their estimated useful lives, which are reviewed annually. The intangibles acquired in the Georgia Biomass Acquisition are being amortized on a straight-line basis, as MT of wood pellets to be sold or shipped under each contract are constant through the end of such contracts. |
Revenue Recognition | Revenue Recognition We primarily earn revenue by supplying wood pellets to customers under off-take contracts, the majority of the commitments under which are long-term in nature. Our off-take contracts are considered “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 require that we 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 by a customer. Each of 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 MT for product satisfying a base net calorific value and other technical specifications. These prices are generally fixed for the entire term, however, some may be 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 are the delivery of wood pellets, which we aggregate into MT. 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 to other parties 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. 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-MT rate as variable consideration and recognized as services are 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. In instances where we have contracts to exchange wood pellets held for sale in the ordinary course of business for similar wood pellets to be sold in the same line of business to facilitate sales to customers other than the parties to the exchange, we account for these exchanges as nonmonetary transactions at the carrying amount of the wood pellets transferred, with no impact to revenue and with no net impact to cost of goods sold once an equal amount of wood pellets have been exchanged. For the sale of the wood pellets received to customers not parties to the exchange, we recognize product sales revenue as described above for off-take contracts. To the extent that these exchanges also include compensation to us for shipping wood pellets, we recognize it as product sales revenue as those wood pellets are loaded and we recognize the shipping costs in cost of goods sold. |
Cost of Goods Sold | Cost of Goods SoldCost 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 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. |
Accrued and other current liabilities | Accrued and other current liabilities Accrued and other current liabilities primarily includes liabilities related to construction in progress, amounts related cost of goods sold such as utility costs at our production facilities, distribution costs associated with shipping wood pellets to customers, and costs associated with the purchase of wood fiber and wood pellets not yet invoiced. |
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. Since August 2018 and March 2020, we have no longer applied hedge accounting treatment to any foreign currency and interest rate derivatives, respectively. Derivative instruments that did not or ceased to qualify, or are no longer designated, as accounting hedges are adjusted to fair value through earnings in the current period. To the extent hedge accounting had previously been applied, it was applied to qualifying cash flow hedges with unrealized changes in their fair value recognized as accumulated other comprehensive income in partners’ capital to the extent they could be considered effective in accordance with the accounting standards on derivatives and hedging applicable during those periods. |
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 finance 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 finance 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 operations. 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 may not be recoverable. There were no such indicators that would require impairment testing to be performed during the periods presented. |
Leases | Leases We have operating and finance leases related to real estate, machinery, equipment and other assets where we are the lessee. Operating leases with an initial term of 12 months or less are not recorded on the balance sheet but are recognized as lease expense on a straight-line basis over the applicable lease terms. Operating and finance leases with an initial term longer than 12 months are recorded on the balance sheet and classified as either operating or finance. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Our leases do not contain any material residual value guarantees, restrictive covenants or subleases. In addition to fixed lease payments, we have contracts that incur variable lease expense related to usage (e.g. throughput fees, maintenance and repair and machine hours), which are expensed as incurred. Our leases have remaining terms of one improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. An incremental borrowing rate is applied to our leases for balance sheet measurement. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for a collateralized borrowing over a similar term of the lease payments as of the commencement date. We adopted ASU 2016-02, Leases , on and as of January 1, 2019 using the modified retrospective transition method, which we applied to all leases existing at the date of initial application of the ASU. We elected to use the effective date as the date of initial application, as opposed to the beginning of the earliest comparative period presented in the financial statements; consequently, financial information and disclosures are not presented under the new standard for periods prior to January 1, 2019. We elected the package of three practical expedients under the transition guidance within the new standard, which permitted us to not reassess our prior conclusions under the previous guidance concerning lease identification, lease classification and initial direct leasing costs. We elected the practical expedient to not evaluate existing or expired land easements that were not accounted for as leases under previous guidance. We did not, however, elect the separate practical expedient pertaining to the use of hindsight in determining the lease term for existing leases. For contracts that contain lease and nonlease components, nonlease components are separated and accounted for under other, relevant accounting standards. We made an accounting policy election to not separate nonlease components from lease components for heavy machinery and equipment. Operating leases are included in operating lease ROU assets, accrued and other current liabilities and long-term operating lease liabilities on our consolidated balance sheets. Finance leases are included in property, plant and equipment, the current portion of long-term debt and finance lease obligations and long-term debt and finance lease obligations on our consolidated balance sheets. Changes in ROU assets and operating lease liabilities are included net in change in operating lease liabilities on the consolidated statement of cash flows. |
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. 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 and premiums are written-off as gain or loss on debt extinguishment in the same period. Unamortized debt issuance costs and original issue discounts and premiums related to a recognized debt liability are recognized as a direct deduction from the carrying amount of the related long-term debt and are amortized using the effective interest method. Unamortized debt issuance costs related to our revolving credit commitments are recognized as an asset and are amortized using the straight-line method. |
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, 2020 and 2019, 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. |
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 that provide services to us and to independent directors of the General Partner. Phantom unit awards vest subject to the satisfaction of service requirements and/or the achievement of certain performance goals. Once these conditions have been met, 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 MSAs (see Note 15, Related-Party Transactions-Management Services Agreements and Note 18, Equity-Based Awards ). We also recognize compensation expense for phantom units awarded to independent directors. As of December 31, 2020, we have the ability to settle certain of our outstanding phantom unit awards under the LTIP in either cash or common units at our election. As we have the ability to settle the awards in common units as of December 31, 2020 and as we reasonably expect to be able to deliver common units at the settlement date, we have classified all of our outstanding phantom unit awards as equity on our balance sheets. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, 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. |
Income Taxes | Income taxes Substantially all of our operating subsidiaries are organized as limited partnerships and entities that are disregarded entities for U.S. federal and applicable state income tax purposes. As a result, those entities disregarded for U.S. federal and state income tax purposes are not subject to U.S. federal and most state income taxes. Our partners and unitholders 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. One of our subsidiaries formed in connection with the Georgia Biomass Acquisition, Enviva Pellets Waycross Holdings, LLC, is an entity taxable as a corporation and is subject to U.S. federal income tax and accounts for income tax under the liability method. Deferred taxes are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of any tax rate change on deferred taxes is recognized in the period that includes the enactment date of the tax rate change. Realization of deferred tax assets is assessed on an annual basis and, unless a deferred tax asset is more likely than not to be utilized, a valuation allowance is recorded to write down the deferred tax assets to their net realizable value. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On January 1, 2020, we adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which changes how entities measure credit losses for most financial assets. The adoption did not have a material impact on the financial statements. Recently Issued Accounting Standards not yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12- Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the purchase price and the fair values of the amounts recorded for identifiable assets acquired and liabilities assumed at the acquisition date of July 31, 2020. Purchase price: Cash paid by the Partnership at closing $ 168,338 Reimbursement to the Partnership of certain acquisition-related costs, net 161 Settlement of payable from the Partnership to Georgia Biomass (3,684) Payment in relation to the Georgia Biomass Acquisition 164,815 Receivable from purchase price adjustment (850) $ 163,965 Identified net assets acquired: Cash $ 1,516 Accounts receivable 124 Inventories 5,774 Prepaid expenses and other current assets 792 Intangible assets 5,700 Property, plant and equipment 170,603 Operating lease right-of-use assets 14,716 Accounts payable (390) Accrued and other current liabilities (9,472) Current portion of long-term finance lease obligations (926) Long-term finance lease obligations (3,733) Long-term operating lease liabilities (13,356) Deferred tax liability, net (13,148) Intangible liabilities (7,400) Other long-term liabilities (880) Identifiable net assets acquired 149,920 Goodwill 14,045 Total purchase price $ 163,965 |
Business Acquisition, Pro Forma Information | The unaudited pro forma combined revenue and net income for the years ended December 31, 2020 and 2019 are as follows: 2020 2019 Revenue $ 957,537 $ 845,340 Net income 16,407 9,540 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 |
Transactions Between Entities_2
Transactions Between Entities Under Common Control (Tables) | Jul. 01, 2020 | Apr. 02, 2019 | Dec. 31, 2020 |
Transactions Between Entities Under Common Control | |||
Schedule of Changes in Consolidated Net Assets | The following table outlines the changes in consolidated net assets resulting from the Greenwood Drop-Down on July 1, 2020. Assets: Cash and cash equivalents $ 29 Accounts receivable, net 25 Inventories 5,165 Prepaid expenses and other current assets 21 Property, plant and equipment, net 104,662 Operating lease right-of-use assets 7,850 Intangible asset, net 845 Other long-term assets 71 Total assets 118,668 Liabilities: Accounts payable 1,951 Accrued and other current liabilities 4,303 Interest payable 366 Seller Note 36,880 Finance lease obligations 699 Long-term operating lease liabilities 6,649 Total liabilities 50,848 Net assets contributed to Partnership $ 67,820 | The following table outlines the addition of net assets resulting from the Hamlet Drop-Down on April 2, 2019. Assets: Cash and cash equivalents $ 3,426 Related-party receivables 241 Prepaid expenses and other current assets 22 Property, plant and equipment, net 140,446 Other long-term assets 8 Total assets 144,143 Liabilities: Accounts payable 6,395 Related-party payables 1,923 Accrued and other current liabilities 14,965 Finance lease obligations 3 Total liabilities 23,286 Net assets contributed to Partnership $ 120,857 | |
Common Control Transaction, Pro Forma Information | The unaudited pro forma combined revenue and net loss for the years ended December 31, 2020 and 2019 are as follows: 2020 2019 Revenue $ 873,815 $ 682,604 Net loss (4,687) (46,323) |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties, Including Business and Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 2018 Customer A 40% 48% 46% Customer B 9% 10% 11% Customer C 23% 20% 16% Customer D 11% 15% 17% |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following at December 31: 2020 2019 Raw materials and work-in-process $ 12,500 $ 9,795 Consumable tooling 21,855 20,485 Finished goods 8,009 2,718 Total inventories $ 42,364 $ 32,998 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment, net consisted of the following at December 31: 2020 2019 Land $ 22,611 $ 15,226 Land improvements 60,110 56,637 Buildings 316,706 217,167 Machinery and equipment 799,881 588,447 Vehicles 3,105 635 Furniture and office equipment 8,202 6,822 Leasehold improvements 1,029 1,029 Property, plant and equipment 1,211,644 885,963 Less accumulated depreciation (295,921) (203,695) Property, plant and equipment, net 915,723 682,268 Construction in progress 156,096 69,512 Total property, plant and equipment, net $ 1,071,819 $ 751,780 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating lease ROU assets and liabilities and finance leases | Operating lease ROU assets and liabilities and finance leases were as follows as of December 31, 2020 and 2019: 2020 2019 Operating leases: Operating lease right-of-use assets $ 51,434 $ 32,830 Current portion of operating lease liabilities $ 3,450 $ 1,439 Long-term operating lease liabilities 50,074 33,469 Total operating lease liabilities $ 53,524 $ 34,908 Finance leases: Property plant and equipment, net $ 24,246 $ 7,398 Current portion of long-term finance lease obligations $ 8,828 $ 4,584 Long-term finance lease obligations 10,775 2,954 Total finance lease liabilities $ 19,603 $ 7,538 |
Operating and finance lease costs | Operating and finance lease costs were as follows for the years ended December 31, 2020 and 2019: Lease Cost Classification 2020 2019 Operating lease cost: Fixed lease cost Cost of goods sold $ 5,806 $ 4,814 Variable lease cost Cost of goods sold 28 16 Short-term lease cost Cost of goods sold 8,421 7,309 Total operating lease costs $ 14,255 $ 12,139 Finance lease cost: Amortization of leased assets Depreciation and amortization 7,498 4,159 Variable lease cost Cost of goods sold 254 9 Interest on lease liabilities Interest expense 490 292 Total finance lease costs $ 8,242 $ 4,460 Total lease costs $ 22,497 $ 16,599 The weighted-average remaining lease terms and discount rates for our operating and finance leases were weighted using the undiscounted future minimum lease payments and are as follows as of December 31, 2020: Weighted average remaining lease term (years): Operating leases 17 Finance leases 4 Weighted average discount rate: Operating leases 7% Finance leases 3% |
Operating and finance lease cash flow information | Operating and finance lease cash flow information was as follows for the years ended December 31, 2020 and 2019: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,828 $ 4,826 Operating cash flows from finance leases 490 292 Financing cash flows from finance leases 5,571 3,304 Assets obtained in exchange for lease obligations: Operating leases $ 21,561 $ 7,465 Finance leases 12,487 6,493 |
Aggregate maturities of operating lease liabilities | The future minimum lease payments and the aggregate maturities of operating and finance lease liabilities are as follows as of December 31, 2020: Years Ending December 31, Operating Finance Total 2021 $ 6,726 $ 9,232 $ 15,958 2022 6,466 5,084 11,550 2023 6,365 2,304 8,669 2024 6,190 896 7,086 2025 6,184 608 6,792 Thereafter 66,570 2,529 69,099 Total lease payments 98,501 20,653 119,154 Less: imputed interest (44,977) (1,050) (46,027) Total present value of lease liabilities $ 53,524 $ 19,603 $ 73,127 |
Aggregate maturities of finance lease liabilities | The future minimum lease payments and the aggregate maturities of operating and finance lease liabilities are as follows as of December 31, 2020: Years Ending December 31, Operating Finance Total 2021 $ 6,726 $ 9,232 $ 15,958 2022 6,466 5,084 11,550 2023 6,365 2,304 8,669 2024 6,190 896 7,086 2025 6,184 608 6,792 Thereafter 66,570 2,529 69,099 Total lease payments 98,501 20,653 119,154 Less: imputed interest (44,977) (1,050) (46,027) Total present value of lease liabilities $ 53,524 $ 19,603 $ 73,127 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 was as follows: Asset (Liability) Balance Sheet Classification 2020 2019 Designated as hedging instruments: Interest rate swap Prepaid and other current assets $ — $ 56 Total derivatives designated as hedging instruments $ — $ 56 Not designated as hedging instruments: Interest rate swaps Accrued and other current liabilities $ (119) $ — Foreign currency exchange contracts: Prepaid and other current assets $ 308 $ 408 Other long-term assets 924 1,774 Accrued and other current liabilities (2,224) (735) Other long-term liabilities (3,508) (1,055) Total derivatives not designated as hedging instruments $ (4,619) $ 392 |
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, 2019 were as follows: Amount of Gain Location of Amount of Interest rate swap $ (146) Interest expense $ 288 |
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, 2020 and 2019 were as follows: 2020 2019 Foreign exchange forward contracts in GBP £ 143,565 £ 50,575 Foreign exchange purchased option contracts in GBP £ 51,601 £ 43,415 Foreign exchange forward contracts in EUR € 12,968 € — Foreign exchange purchased option contracts in EUR € — € 1,200 Interest rate swaps $ 70,000 $ 34,354 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 as of December 31, 2020 and 2019 was as follows: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair 2026 Notes $ 746,875 $ 796,875 $ 593,476 $ 644,250 Seller Note 37,571 40,405 — — Other long-term debt 122,000 122,000 2,006 2,006 Total long-term debt $ 906,446 $ 959,280 $ 595,482 $ 646,256 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets (liabilities) consisted of the following at December 31, 2020: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Favorable customer contracts $ 6,200 $ (5,566) $ 634 Assembled workforce 1,856 (1,249) 607 Unfavorable customer contract (600) 57 (543) Unfavorable shipping contract (6,300) 485 (5,815) Total intangible liabilities, net $ 1,156 $ (6,273) $ (5,117) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate net reduction of amortization expense for the next five years is as follows: Year Ended December 31, 2021 $ 664 2022 1,010 2023 1,140 2024 1,140 2025 1,163 Total $ 5,117 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt and capital lease obligations | Long-term debt and finance lease obligations at carrying value consisted of the following at December 31: 2020 2019 2026 Notes, net of unamortized discount, premium and debt issuance of $3.1 million and $6.5 million as of December 31, 2020 and 2019, respectively $ 746,875 $ 593,476 Senior secured revolving credit facility 120,000 — Seller Note, net of unamortized discount of $2.4 million 37,571 — Other loans 2,000 2,006 Finance leases 19,603 7,538 Total long-term debt and finance lease obligations 926,049 603,020 Less current portion of long-term debt and finance lease obligations (13,328) (6,590) Long-term debt and finance lease obligations, excluding current installments $ 912,721 $ 596,430 |
Schedule of debt maturities | The aggregate maturities of long-term debt and finance lease obligations as of December 31, 2020 are as follows: Year Ending December 31: 2021 $ 13,328 2022 33,623 2023 130,920 2024 808 2025 and thereafter 752,924 Long-term debt and finance lease obligations 931,603 Unamortized premium and debt issuance costs (5,554) Total long-term debt and finance lease obligations $ 926,049 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended | |
Dec. 31, 2020 | ||
Related Party Transactions [Abstract] | ||
Schedule of related party amounts included on the consolidated statements of income | For the Year Ended December 31, 2020 2019 2018 Other revenue $ 1,264 $ 1,789 $ 3,545 Cost of goods sold 125,284 111,491 84,148 General and administrative expenses (1) 32,545 29,457 21,762 (1) Includes $10.3 million, $5.0 million and $4.7 million of expense related to Affiliate Grants | [1] |
Schedule of balance sheet location of related-party management services agreements costs | Related-party amounts included on the consolidated balance sheets under our MSAs were as follows: As of December 31, 2020 2019 Finished goods inventory $ 907 $ 419 Related-party payables 8,650 18,703 | |
Schedule of income statement location of related-party management services agreements costs | Related-party amounts included on the consolidated statements of operations under our MSAs were as follows: For the Year Ended December 31, 2020 2019 2018 Cost of goods sold $ 74,475 $ 63,377 $ 52,280 General and administrative expenses 32,545 29,457 21,762 | |
[1] | Includes $10.3 million, $5.0 million and $4.7 million of expense related to Affiliate Grants |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Components of the income tax provision applicable to our federal and state taxes are as follows: 2020 Deferred income tax expense: U.S. Federal $ 69 Total deferred $ 69 Total income tax expense related to continuing operations $ 69 |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate from continuing operations varies from the U.S. Federal statutory rate principally due to the following: 2020 Income taxes at statutory federal income tax rate $ 3,601 Increase (decrease) in income taxes resulting from: Partnership earnings not subject to tax (3,671) Other 139 Total income tax expense $ 69 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities result from the following: 2020 Deferred tax assets: Net operating loss carryforward $ 3,611 Total deferred tax assets $ 3,611 Deferred tax liabilities: Investment in affiliates $ (16,828) Total deferred tax liabilities $ (16,828) Net deferred tax assets (liabilities) $ (13,217) |
Partners' Capital (Tables)
Partners' Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Record Payment Distribution Total Cash Total Payment to holder of Incentive Distribution Rights June 30, 2019 July 31, 2019 August 15, 2019 August 29, 2019 $ 0.6600 $ 22.1 $ 2.8 September 30, 2019 October 30, 2019 November 15, 2019 November 29, 2019 $ 0.6700 $ 22.4 $ 3.1 December 31, 2019 January 29, 2020 February 14, 2020 February 28, 2020 $ 0.6750 $ 22.7 $ 3.3 March 31, 2020 April 29, 2020 May 15, 2020 May 29, 2020 $ 0.6800 $ 22.9 $ 3.5 June 30, 2020 August 5, 2020 August 14, 2020 August 28, 2020 $ 0.7650 $ 30.4 $ 7.5 September 30, 2020 October 30, 2020 November 13, 2020 November 27, 2020 $ 0.7750 $ 30.8 $ 7.9 December 31, 2020 January 29, 2021 February 15, 2021 February 26, 2021 $ 0.7800 $ 31.2 $ 8.1 |
Schedule of changes in accumulated other comprehensive income | The following table presents the changes in accumulated other comprehensive income (loss): Accumulated other comprehensive income at December 31, 2018 $ 439 Cumulative effect of accounting change - derivative instruments 18 Net unrealized losses on cash flow hedges (146) Reclassification of net gains on cash flow hedges realized into net loss (288) Accumulated other comprehensive income at December 31, 2019 23 Reclassification of net gains on cash flow hedges realized into net loss (22) Currency translation adjustment (19) Accumulated other comprehensive loss at December 31, 2020 $ (18) |
Equity-Based Awards (Tables)
Equity-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Distribution Equivalent Rights | |
Equity-Based Awards | |
Schedule of phantom unit awards | DER distributions unpaid related to the performance-based Affiliate Grants were as follows as of December 31: 2020 2019 Accrued liabilities $ 1,697 $ 397 Other long-term liabilities 2,942 1,193 Total unpaid DERs related to performance-based Affiliate Grants $ 4,639 $ 1,590 |
Affiliate Grants | |
Equity-Based Awards | |
Schedule of phantom unit awards | A summary of the Affiliate Grants for the years ended December 31, 2020, 2019 and 2018 is as follows: Time-Based Phantom Units Performance-Based Phantom Units Total Affiliate Grant Phantom Units Units Weighted-Average Grant Date Fair Value (per unit)(1) Units Weighted-Average Grant Date Fair Value (per unit)(1) Units Weighted-Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 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 Granted 395,851 $ 30.41 219,943 $ 30.28 615,794 $ 30.36 Forfeitures (99,999) $ 28.56 (24,185) $ 29.82 (124,184) $ 28.80 Vested (145,506) $ 18.30 — $ — (145,506) $ 18.30 Nonvested December 31, 2019 874,286 $ 28.90 435,270 $ 28.84 1,309,556 $ 28.88 Granted 552,988 $ 37.98 387,060 $ 38.02 940,048 $ 38.00 Forfeitures (133,273) $ 33.15 (105,935) $ 30.89 (239,208) $ 32.15 Vested (232,116) $ 26.97 (67,881) $ 28.03 (299,997) $ 27.21 Nonvested December 31, 2020 1,061,885 $ 33.52 648,514 $ 34.07 1,710,399 $ 33.73 |
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, 2020, 2019 and 2018, is as follows: Time-Based Phantom Units Units Weighted-Average Grant Date Fair Value (per unit)(1) Nonvested December 31, 2017 15,840 $ 25.25 Granted 13,964 $ 28.65 Vested (15,840) $ 25.25 Nonvested December 31, 2018 13,964 $ 28.65 Granted 13,264 $ 30.16 Vested (13,964) $ 28.65 Nonvested December 31, 2019 13,264 $ 30.16 Granted 14,987 $ 38.37 Vested (13,264) $ 30.16 Nonvested December 31, 2020 14,987 $ 38.37 |
Net Income (Loss) per Limited_2
Net Income (Loss) per Limited Partner Unit (Tables) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Computation of net income (loss) per limited partner unit | The computation of net income (loss) available per limited partner unit is as follows for the years ended December 31: 2020 2019 2018 Enviva Partners, LP limited partners’ interest in net income (loss) $ 13,624 $ (5,822) $ 6,952 Less: Distributions declared on: Common units $ 115,318 $ 88,761 $ 54,604 Subordinated units through end of subordination period — — 12,407 IDRs 26,917 11,439 5,867 Total distributions declared 142,235 100,200 72,878 Earnings less than distributions $ (128,611) $ (106,022) $ (65,926) | ||
Schedule of weighted average common units outstanding | Basic and diluted net (loss) income per limited partner unit is as follows: Year Ended December 31, 2020 Common General Weighted-average common units outstanding—basic 36,813 — Effect of nonvested phantom units — — Weighted-average common units outstanding—diluted 36,813 — | Year Ended December 31, 2019 Common General Weighted-average common units outstanding—basic 31,791 — Effect of nonvested phantom units — — Weighted-average common units outstanding—diluted 31,791 — | Year Ended December 31, 2018 Common Subordinated General 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, 2020 Common General Total Distributions declared $ 115,318 $ 26,917 $ 142,235 Earnings less than distributions (128,611) — (128,611) Net (loss) income available to partners $ (13,293) $ 26,917 $ 13,624 Weighted-average units outstanding—basic and diluted 36,813 Net loss per limited partner unit—basic and diluted $ (0.36) | Year Ended December 31, 2019 Common General Total Distributions declared $ 88,761 $ 11,439 $ 100,200 Earnings less than distributions (106,022) — (106,022) Net (loss) income available to partners $ (17,261) $ 11,439 $ (5,822) Weighted-average units outstanding—basic and diluted 31,791 Net loss per limited partner unit—basic and diluted $ (0.54) | Year Ended December 31, 2018 Common Subordinated General Total Distributions declared $ 54,604 $ 12,407 $ 5,867 $ 72,878 Earnings less than distributions (53,720) (12,206) — (65,926) Net income available to partners $ 884 $ 201 $ 5,867 $ 6,952 Weighted-average units outstanding—basic and diluted 21,533 4,893 Net income per limited partner unit—basic and diluted $ 0.04 $ 0.04 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, ground transportation and wood pellet supply agreements for the next five years are as follows: 2021 $ 142,383 2022 119,881 2023 112,633 2024 83,182 2025 41,673 Total $ 499,752 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) | Jul. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
General and administrative expenses | $ 45,345,000 | $ 36,389,000 | $ 27,641,000 | |||
Revenue | 875,079,000 | 684,393,000 | 573,741,000 | |||
Net income attributable to Enviva Partners, LP | 13,624,000 | (5,822,000) | $ 6,952,000 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Goodwill | $ (99,660,000) | $ (99,660,000) | (99,660,000) | (85,615,000) | ||
Georgia Biomass | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 163,965,000 | |||||
Cash payment | 168,338,000 | |||||
Business Acquisition, Acquisition Costs | 3,900,000 | 3,900,000 | 3,900,000 | |||
Revenue | 45,800,000 | |||||
Net income attributable to Enviva Partners, LP | $ 9,700,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Reimbursement to the Partnership of certain acquisition-related costs, net | 161,000 | |||||
Settlement of payable from the Partnership to Georgia Biomass | (3,684,000) | |||||
Receivable from purchase price adjustment | (850,000) | |||||
Purchase Price | 163,965,000 | |||||
Cash | 1,516,000 | |||||
Accounts receivable | 124,000 | |||||
Inventories | 5,774,000 | |||||
Prepaid expenses and other current assets | 792,000 | |||||
Intangible assets | 5,700,000 | |||||
Property, plant and equipment | 170,603,000 | |||||
Operating lease right-of-use assets | 14,716,000 | |||||
Accounts payable | (390,000) | |||||
Accrued and other current liabilities | (9,472,000) | |||||
Deferred tax liability, net | (13,148,000) | |||||
Intangible liabilities | (7,400,000) | |||||
Other long-term liabilities | (880,000) | |||||
Identifiable net assets acquired | 149,920,000 | |||||
Goodwill | (14,045,000) | |||||
Revenue | 957,537,000 | 845,340,000 | ||||
Net loss | $ 16,407,000 | $ 9,540,000 | ||||
Goodwill, Period Increase (Decrease) | 1.6 | |||||
Intangible liabilities period increases (decrease) | $ 2.5 | |||||
Georgia Biomass | Finance lease - Current | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Lease Obligation | (926,000) | |||||
Georgia Biomass | Finance lease - Long-term | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Lease Obligation | (3,733,000) | |||||
Georgia Biomass | Operating lease | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Lease Obligation | (13,356,000) | |||||
Purchase Price Reconciliation | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | ||||||
Payment in relation to the Georgia Biomass Acquisition | $ 164,815,000 |
Description of Business and B_2
Description of Business and Basis of Presentation - (Details) | Jul. 31, 2020USD ($) | Jul. 01, 2020USD ($)MT | Apr. 02, 2019MT | Dec. 31, 2020USD ($)plantsegments | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||
Number of industrial-scale production wood pellet production plants in operation | plant | 9 | |||||
MSA Fee Waivers | $ 23,400,000 | $ 22,600,000 | $ 0 | |||
Number of operating segments | segments | 1 | |||||
Hamlet JV | ||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||
Off-take contract period | 15 years | |||||
Plant Production Capacity (MTPY) | MT | 1 | |||||
Greenwood Drop-Down | Greenwood, SC [Member] | ||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||
Total consideration | $ 132 | |||||
Annual volume of the off-take contracts (metric tons per year) | MT | 1.4 | |||||
Georgia Biomass Holding LLC [Member] | Waycross, GA [Member] | ||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||
Total cash consideration | $ 175 | |||||
Make-Whole agreement [Member] | Greenwood Drop-Down | Greenwood, SC [Member] | ||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||
Construction cost incurred maximum | $ 28 | |||||
Third EVA MSA Fee Waiver | Greenwood Drop-Down | Greenwood, SC [Member] | ||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||
MSA Fee Waivers | $ 37 | |||||
Plant Production Volumes (MT) | MT | (50,000) |
Significant Accounting Polici_4
Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
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, 2020 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 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 (Details) | 12 Months Ended |
Dec. 31, 2020reporting_unitsegments | |
Accounting Policies [Abstract] | |
Number of reporting units for goodwill analysis | reporting_unit | 1 |
Number of operating segments | segments | 1 |
Significant Accounting Polici_7
Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Option to extend the lease terms | 5 years |
Minimum | |
Remaining lease terms | 1 year |
Maximum | |
Remaining lease terms | 27 years |
Transactions Between Entities_3
Transactions Between Entities Under Common Control - Narrative (Details) - USD ($) | Jul. 01, 2020 | Jan. 02, 2020 | Jun. 28, 2019 | Apr. 02, 2019 |
Greenwood Drop-Down | ||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | ||||
Total consideration | $ 132 | |||
Cash payment | 129.7 | |||
Net purchase price adjustment | 2.3 | |||
Purchase price adjustment | 2.3 | |||
Net assets contributed to Partnership | 67,820,000 | |||
Hamlet Drop-Down | ||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | ||||
Total consideration | $ 165 | |||
Cash payment | $ 40 | $ 50 | 24.7 | |
Net purchase price adjustment | 0.3 | |||
Purchase price adjustment | $ 0.3 | |||
Issuance of common units (in units) | 1,681,237 | |||
Issuance of common units (usd per unit) | $ 29.74 | |||
Issuance of common units value | $ 50 | |||
Elimination of related-party receivables | 3 | |||
Affiliated Entiity | Greenwood Drop-Down | ||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | ||||
Net assets contributed to Partnership | $ 67.8 | |||
Affiliated Entiity | Hamlet Drop-Down | ||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | ||||
Net assets contributed to Partnership | $ 120.9 |
Transactions Between Entities_4
Transactions Between Entities Under Common Control - Schedule of Changes in Consolidated Net Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jul. 01, 2020 | Dec. 31, 2019 | Apr. 02, 2019 |
Assets: | ||||
Cash and cash equivalents | $ 10,004 | $ 9,053 | ||
Due from Related Party, Current, Net | 2,414 | 0 | ||
Inventories | 42,364 | 32,998 | ||
Prepaid expenses and other current assets | 16,457 | 5,617 | ||
Property, plant and equipment, net | 1,071,819 | 751,780 | ||
Operating lease right-of-use assets | 51,434 | 32,830 | ||
Other long-term assets | 11,248 | 4,504 | ||
Total assets | 1,429,612 | 994,818 | ||
Liabilities: | ||||
Accounts payable | 15,208 | 18,985 | ||
Accrued and other current liabilities | 108,976 | 59,066 | ||
Finance lease obligations | 912,721 | 596,430 | ||
Long-term operating lease liabilities | 50,074 | 33,469 | ||
Total liabilities | $ 1,153,585 | $ 762,242 | ||
Greenwood Drop-Down | ||||
Assets: | ||||
Cash and cash equivalents | $ 29 | |||
Due from Related Party, Current, Net | 25 | |||
Inventories | 5,165 | |||
Prepaid expenses and other current assets | 21 | |||
Property, plant and equipment, net | 104,662 | |||
Operating lease right-of-use assets | 7,850 | |||
Intangible asset, net | 845 | |||
Other long-term assets | 71 | |||
Total assets | 118,668 | |||
Liabilities: | ||||
Accounts payable | 1,951 | |||
Accrued and other current liabilities | 4,303 | |||
Interest Payable | 366 | |||
Seller Note | 36,880 | |||
Finance lease obligations | 699 | |||
Long-term operating lease liabilities | 6,649 | |||
Total liabilities | 50,848 | |||
Net assets contributed to Partnership | $ 67,820 | |||
Hamlet Drop-Down | ||||
Assets: | ||||
Cash and cash equivalents | $ 3,426 | |||
Related-party receivables | 241 | |||
Prepaid expenses and other current assets | 22 | |||
Property, plant and equipment, net | 140,446 | |||
Other long-term assets | 8 | |||
Total assets | 144,143 | |||
Liabilities: | ||||
Accounts payable | 6,395 | |||
Related-party payables | 1,923 | |||
Accrued and other current liabilities | 14,965 | |||
Finance lease obligations | 3 | |||
Total liabilities | 23,286 | |||
Net assets contributed to Partnership | $ 120,857 |
Transactions Between Entities_5
Transactions Between Entities Under Common Control-Schedule of Unaudited ProForma Information (Details) - Greenwood Drop-Down - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Transactions Between Entities Under Common Control [Line Items] | ||
Revenue | $ 873,815 | $ 682,604 |
Net loss | $ (4,687) | $ (46,323) |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 14,300,000,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-31 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognized related to performance obligation satisfied in previous periods | $ 100,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognized related to performance obligation satisfied in previous periods | $ 100,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 7.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, percentage | 9.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable related to product sales | $ 108.5 | $ 67.7 |
Deferred revenue related to off-take contracts | 4.9 | 4.1 |
Not yet billable pending finalization of prerequisite billing documentation | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable related to product sales | $ 95 | $ 64.7 |
Revenue - Other (Details)
Revenue - Other (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Purchased Shipments From Third Party Suppliers Resold In Back To Back Transactions | ||
Accrued Liabilities and Other Liabilities | $ 50.6 | $ 19.8 |
Significant Risks and Uncerta_3
Significant Risks and Uncertainties, Including Business and Credit Concentrations (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A | |||
Concentration Risk | |||
Concentration risk (as a percent) | 40.00% | 48.00% | 46.00% |
Customer B | |||
Concentration Risk | |||
Concentration risk (as a percent) | 9.00% | 10.00% | 11.00% |
Customer C | |||
Concentration Risk | |||
Concentration risk (as a percent) | 23.00% | 20.00% | 16.00% |
Customer D | |||
Concentration Risk | |||
Concentration risk (as a percent) | 11.00% | 15.00% | 17.00% |
Product sales | Percentage of sales | |||
Concentration Risk | |||
Concentration risk (as a percent) | 10.00% |
Inventory Impairment and Asse_2
Inventory Impairment and Asset Disposal Inventory Impairment and Asset Disposals (Details) MT in Thousands, $ in Millions | Feb. 28, 2019USD ($) | Feb. 27, 2018MT | Dec. 31, 2018USD ($) |
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 | $ 60.3 | ||
Loss Contingencies [Line Items] | |||
Insurance recovery | 62.1 | ||
Insurance recoveries | |||
Loss Contingencies [Line Items] | |||
Insurance receivables | 3.8 | ||
Insurance recovery | $ 3.8 | ||
Cost of goods sold | |||
Loss Contingencies [Line Items] | |||
Insurance recovery | 25.5 | ||
Other income | |||
Loss Contingencies [Line Items] | |||
Insurance recovery | $ 0.5 | $ 1.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-process | $ 12,500 | $ 9,795 |
Consumable tooling | 21,855 | 20,485 |
Finished goods | 8,009 | 2,718 |
Total inventories | $ 42,364 | $ 32,998 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,211,644 | $ 885,963 | |
Less accumulated depreciation | (295,921) | (203,695) | |
Property, plant and equipment, net | 915,723 | 682,268 | |
Construction in progress | 156,096 | 69,512 | |
Total property, plant and equipment, net | 1,071,819 | 751,780 | |
Interest capitalized related to construction in progress | 6,100 | 2,100 | $ 200 |
Total depreciation expense | 72,200 | 51,600 | 40,600 |
Loss on disposal of assets | 6,978 | 3,103 | $ 2,386 |
Accrued and other current liabilities | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment and construction in progress | 10,800 | 9,400 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 22,611 | 15,226 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 60,110 | 56,637 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 316,706 | 217,167 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 799,881 | 588,447 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,105 | 635 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8,202 | 6,822 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,029 | $ 1,029 |
Lessee - Leases Narrative (Deta
Lessee - Leases Narrative (Details) | May 31, 2016USD ($)MT | Feb. 28, 2015USD ($)renewal_option | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Lessee, Lease, Description [Line Items] | |||||
Option to extend the lease terms | 5 years | ||||
Depreciation expense | $ 72,200,000 | $ 51,600,000 | $ 40,600,000 | ||
Capital Lease Obligations | |||||
Lessee, Lease, Description [Line Items] | |||||
Depreciation expense | 1.8 | ||||
North Carolina State Ports Authority | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating leases, future minimum payments | $ 71.7 | ||||
Noncancelable operating lease cost | $ 2.3 | $ 2.3 | |||
NCSPA operating lease, lease term | 21 years | ||||
Operating lease, number of renewal options | renewal_option | 2 | ||||
Duration of each renewal option | 5 years | ||||
Operating lease, annual base rent | $ 0.2 | ||||
Annual increase in producers price index | 100.00% | ||||
Operating lease, annual throughput ton fee | $ 1.9 | ||||
Operating lease, annual throughput ton | MT | 1 | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease terms | 1 year | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease terms | 27 years |
Leases Operating lease ROU Asse
Leases Operating lease ROU Assets and Liabilities and Finance Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating lease right-of-use assets | $ 51,434 | $ 32,830 |
Long-term operating lease liabilities | 50,074 | 33,469 |
Total operating lease liabilities | 53,524 | 34,908 |
Property plant and equipment, net | 24,246 | 7,398 |
Current portion of long-term finance lease obligations | 8,828 | 4,584 |
Long-term finance lease obligations | 10,775 | 2,954 |
Total finance lease liabilities | 19,603 | 7,538 |
Other Current Liabilities | ||
Current portion of operating lease liabilities | $ 3,450 | $ 1,439 |
Leases Operating and Finance Le
Leases Operating and Finance Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease cost: | ||
Total operating lease costs | $ 14,255 | $ 12,139 |
Finance lease cost: | ||
Total finance lease costs | 8,242 | 4,460 |
Total lease costs | 22,497 | 16,599 |
Cost of goods sold | ||
Operating lease cost: | ||
Fixed lease cost | 5,806 | 4,814 |
Variable lease cost | 28 | 16 |
Short-term lease costs | 8,421 | 7,309 |
Finance lease cost: | ||
Variable lease cost | 254 | 9 |
Depreciation and amortization | ||
Finance lease cost: | ||
Amortization of leased assets | 7,498 | 4,159 |
Interest Expense | ||
Finance lease cost: | ||
Interest on lease liabilities | $ 490 | $ 292 |
Leases Operating and Finance _2
Leases Operating and Finance lease Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 5,828 | $ 4,826 |
Operating cash flows from finance leases | 490 | 292 |
Financing cash flows from finance leases | 5,571 | 3,304 |
Assets obtained in exchange for lease obligations: | ||
Operating leases | 21,561 | 7,465 |
Finance leases | $ 12,487 | $ 6,493 |
Leases Future Minimum Payments
Leases Future Minimum Payments and Aggregate maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 6,726 | |
2022 | 6,466 | |
2023 | 6,365 | |
2024 | 6,190 | |
2025 | 6,184 | |
Thereafter | 66,570 | |
Total lease payments | 98,501 | |
Less: imputed interest | (44,977) | |
Total present value of lease liabilities | 53,524 | $ 34,908 |
Finance Leases | ||
2021 | 9,232 | |
2022 | 5,084 | |
2023 | 2,304 | |
2024 | 896 | |
2025 | 608 | |
Thereafter | 2,529 | |
Total lease payments | 20,653 | |
Less: imputed interest | (1,050) | |
Total present value of lease liabilities | 19,603 | $ 7,538 |
2021 | 15,958 | |
2022 | 11,550 | |
2023 | 8,669 | |
2024 | 7,086 | |
2025 | 6,792 | |
Thereafter | 69,099 | |
Total lease payments | 119,154 | |
Less: imputed interest | (46,027) | |
Total present value of lease liabilities | $ 73,127 |
Leases Weighted-average remaini
Leases Weighted-average remaining operating and finance lease terms and discount rate (Details) | Dec. 31, 2020 |
Weighted average remaining lease term (years): | |
Operating leases | 17 years |
Finance leases | 4 years |
Weighted average discount rate: | |
Operating leases | 7.00% |
Finance leases | 3.00% |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net gains included in accumulated other comprehensive income | $ (1.9) | ||
Unrealized net (loss) gain on derivative instruments | $ 249,000 | $ (1,770,000) | (4,907,000) |
Net derivative settlement termination payment received amount | 4,800,000 | ||
Increase (Decrease) From Recorded Fair Value Of Net Derivative Settlement Termination Payment Amoun | 0.2 | ||
Product sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gains on derivatives | 0.3 | 1.7 | 4.6 |
Other income (expense) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivative settlement termination payment received amount | 1.9 | ||
Not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net (loss) gain on derivative instruments | (8.6) | ||
Not designated as hedging instruments | Product sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net (loss) gain on derivative instruments | 4,300,000 | $ 4,600,000 | (8.4) |
Not designated as hedging instruments | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net (loss) gain on derivative instruments | $ (0.2) | ||
Interest rate swap | Other income (expense) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net (loss) gain on derivative instruments | $ 200,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Designated as hedging instruments: | ||
Derivatives designated as cash flow hedging instruments: | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 0 | $ 56 |
Designated as hedging instruments: | Prepaid and other current assets | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 0 | 56 |
Not designated as hedging instruments: | ||
Derivatives designated as cash flow hedging instruments: | ||
Derivative Assets (Liabilities), at Fair Value, Net | (4,619) | 392 |
Not designated as hedging instruments: | Prepaid and other current assets | Foreign Exchange Contract | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 308 | 408 |
Not designated as hedging instruments: | Other long-term assets | Foreign Exchange Contract | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 924 | 1,774 |
Not designated as hedging instruments: | Accrued and Other Current Liabilities | Interest rate swap | ||
Derivatives designated as cash flow hedging instruments: | ||
Liability Derivatives | (119) | 0 |
Not designated as hedging instruments: | Accrued and Other Current Liabilities | Foreign Exchange Contract | ||
Derivatives designated as cash flow hedging instruments: | ||
Liability Derivatives | (2,224) | (735) |
Not designated as hedging instruments: | Other long-term liabilities | Foreign Exchange Contract | ||
Derivatives designated as cash flow hedging instruments: | ||
Liability Derivatives | $ (3,508) | $ (1,055) |
Derivative Instruments - Change
Derivative Instruments - Changes In Accumulated Comprehensive Income (Details) - Interest rate swap $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | $ (146) |
Interest Expense | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | $ (288) |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts (Details) € in Thousands, £ in Thousands, $ in Thousands | Dec. 31, 2020GBP (£) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) |
Foreign currency exchange forward contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Derivative, Notional Amount | £ 143,565 | € 12,968 | £ 50,575 | € 0 | ||
Foreign currency purchased option contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Derivative, Notional Amount | £ 51,601 | € 0 | £ 43,415 | € 1,200 | ||
Interest rate swap | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Derivative, Notional Amount | $ 70,000 | $ 34,354 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying value | ||
Long term debt | $ 746,875 | $ 593,476 |
Seller Note | 37,571 | 0 |
Other long-term debt and finance lease obligations | 122,000 | 2,006 |
Total long-term debt and finance lease obligations | 906,446 | 595,482 |
Long term debt | 0 | |
Total long-term debt and finance lease obligations | 926,049 | 603,020 |
Recurring | Level 2 | Estimate of Fair Value Measurement [Member] | ||
Long term debt | 796,875 | 644,250 |
Seller Note | 40,405 | 0 |
Other long-term debt and finance lease obligations | 122,000 | 2,006 |
Total long-term debt and finance lease obligations | $ 959,280 | $ 646,256 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) | Jul. 31, 2020 | Jan. 01, 2010 | Dec. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill | |||||
Goodwill | $ 99,660,000 | $ 85,615,000 | |||
Georgia Biomass | |||||
Goodwill | |||||
Goodwill | $ 14,045,000 | ||||
Acquired Goodwill | $ 14,000,000 | ||||
Enviva Pellets Cottondale, LLC | |||||
Goodwill | |||||
Acquired Goodwill | $ 80.7 | ||||
IN Group Companies and Enviva Pellets Amory | |||||
Goodwill | |||||
Acquired Goodwill | $ 4.9 |
Intangibles - (Details)
Intangibles - (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Total Finite Lived Intangible Assets (Liabilities), Gross | $ (1,156) |
Total Finite Lived Intangible Assets (Liabilities), Accumulated Amortization | (6,273) |
Total Finite Lived Assets (Liabilities), Net | 5,117 |
Cost, Depreciation and Amortization | 5,300 |
Finite Lived Intangible Assets (Liabilities), Expected Amortization, Year One | 664 |
Finite Lived Intangible Assets (Liabilities), Expected Amortization, Year Two | 1,010 |
Finite Lived Intangible Assets (Liabilities), Expected Amortization, Year Three | 1,140 |
Finite Lived Intangible Assets (Liabilities), Expected Amortization, Year Four | 1,140 |
Finite Lived Intangible Assets (Liabilities), Expected Amortization, Year Five | 1,163 |
Favorable customer contracts | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Gross | 6,200 |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,566) |
Finite-Lived Intangible Assets, Net | 634 |
Assembled workforce | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Gross | 1,856 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,249) |
Finite-Lived Intangible Assets, Net | 607 |
Unfavorable customer contract | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Liabilities, Gross | (600) |
Finite Lived Intangible Liabilities, Accumulated Amortization | 57 |
Finite-Lived Intangible Liabilities, Net | (543) |
Unfavorable shipping contract | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Liabilities, Gross | (6,300) |
Finite Lived Intangible Liabilities, Accumulated Amortization | 485 |
Finite-Lived Intangible Liabilities, Net | $ (5,815) |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Finance Lease Obligation Table (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Long term debt | $ 0 | |
Unamortized discount, premium and debt issuance | $ (5,554) | |
Total present value of lease liabilities | 19,603 | 7,538 |
Total long-term debt and finance lease obligations | 926,049 | 603,020 |
Less current portion of long-term debt and finance lease obligations | (13,328) | (6,590) |
Long-term debt and finance lease obligations | 912,721 | 596,430 |
Seller Note | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Long term debt | 37,571 | |
Other loans | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Long term debt | 2,000 | 2,006 |
Finance leases | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Total present value of lease liabilities | 19,603 | 7,538 |
2026 notes | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Long term debt | 746,875 | 593,476 |
Unamortized discount, premium and debt issuance | 3,100 | 6,500 |
Revolving credit commitments | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Outstanding Borrowings | 120,000 | $ 0 |
Seller Note | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Unamortized Discount | $ 2,400 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Senior Notes (Details) - USD ($) | Jul. 15, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Gross proceeds from debt issuance | $ 155,625,000 | $ 601,777,000 | $ 0 | |
Gain (Loss) on Extinguishment of Debt | 0 | 9,042,000 | 751,000 | |
Debt redemption premium | 0 | 7,544,000 | $ 0 | |
Senior Notes | 2026 notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal | $ 150 | $ 600 | ||
Interest rate (as a percent) | 650.00% | |||
Debt issuance costs, original issue discount and premium | $ 2,700,000 | $ 6,600,000 | ||
Gross proceeds from debt issuance | 601.8 | |||
Net proceeds debt issuance | $ 153.6 | 595.8 | ||
Debt Instrument, Redemption Price, Percentage | 103.75% | |||
Senior Notes | 2021 notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal | $ 355 | |||
Interest rate (as a percent) | 850.00% | |||
Gain (Loss) on Extinguishment of Debt | $ 9 | |||
Debt redemption premium | 7.5 | |||
Debt issuance costs write off | 1.5 | |||
Repayments of Debt | $ 355 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Senior Secured Credit Facilities (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding | $ 0.3 | ||
Long term debt | $ 0 | ||
Revolving credit commitments | Minimum | |||
Line of Credit Facility [Line Items] | |||
Interest coverage ratio | 2.25 | ||
Revolving credit commitments | Maximum | |||
Line of Credit Facility [Line Items] | |||
Total Leverage Ratio | 4.75 | ||
Leverage ratio during material transaction period | 5 | ||
Senior secured revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Senior secured revolving credit facility | $ 350 | ||
Letters of credit outstanding | 0 | ||
Maturity date | Oct. 18, 2023 | ||
Basis point change | 25 | ||
Line of Credit Facility, Commitment Fee Amount | $ 0.9 | 0.8 | $ 0.5 |
Outstanding Borrowings | $ 120,000,000 | $ 0 | |
Senior secured revolving credit facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Total Leverage Ratio | 2.75 | ||
Commitment fee percentage | 25.00% | ||
Senior secured revolving credit facility | Minimum | Eurodollar rate | |||
Line of Credit Facility [Line Items] | |||
Margin rate | 175.00% | ||
Senior secured revolving credit facility | Minimum | Base rate | |||
Line of Credit Facility [Line Items] | |||
Margin rate | 75.00% | ||
Senior secured revolving credit facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Total Leverage Ratio | 4.75 | ||
Commitment fee percentage | 50.00% | ||
Senior secured revolving credit facility | Maximum | Eurodollar rate | |||
Line of Credit Facility [Line Items] | |||
Margin rate | 300.00% | ||
Senior secured revolving credit facility | Maximum | Base rate | |||
Line of Credit Facility [Line Items] | |||
Margin rate | 200.00% |
Long-Term Debt and Finance Le_6
Long-Term Debt and Finance Lease Obligations - Seller Note (Details) - Seller Note - USD ($) | Dec. 31, 2020 | Jul. 01, 2020 |
Line of Credit Facility [Line Items] | ||
Promissory note remaining principal balance | $ 40 | |
Notes Payable to Bank | $ 36.9 | |
Interest rate (as a percent) | 250.00% |
Long-Term Debt and Finance Le_7
Long-Term Debt and Finance Lease Obligations - Debt Issuance Costs and Original Issue Discounts and Premium (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Unamortized discount, premium and debt issuance | $ (5,554) | ||
Unamortized debt issuance costs | (5,554) | ||
Amortization expense included in interest expense | 1,905 | $ 1,243 | $ 1,093 |
Interest Expense | |||
Debt Instrument [Line Items] | |||
Amortization expense included in interest expense | 1,900 | 1,200 | $ 1,100 |
Long-term debt | |||
Debt Instrument [Line Items] | |||
Unamortized discount, premium and debt issuance | 5,500 | 6,500 | |
Unamortized debt issuance costs | 5,500 | 6,500 | |
Revolving credit facility | Long-term assets | |||
Debt Instrument [Line Items] | |||
Unamortized discount, premium and debt issuance | 1,500 | 2,000 | |
Unamortized debt issuance costs | $ 1,500 | $ 2,000 |
Long-Term Debt and Finance Le_8
Long-Term Debt and Finance Lease Obligations - Schedule of Debt Maturities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
2021 | $ 13,328,000 | ||
2022 | 33,623,000 | ||
2023 | 130,920,000 | ||
2024 | 808,000 | ||
2025 and thereafter | 752,924,000 | ||
Long-term debt and finance lease obligations | 931,603,000 | ||
Unamortized discount, premium and debt issuance | (5,554,000) | ||
Total long-term debt and finance lease obligations | 926,049,000 | $ 603,020,000 | |
Debt Instrument [Line Items] | |||
Depreciation expense | $ 72,200,000 | $ 51,600,000 | $ 40,600,000 |
Finance leases | |||
Debt Instrument [Line Items] | |||
Depreciation expense | $ 1.8 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Related Party Amounts Included on the Consolidated Statements of Operations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other revenue | |||
Related Party Transaction [Line Items] | |||
Related party revenue | $ 1,264,000 | $ 1,789,000 | $ 3,545,000 |
Cost of goods sold | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 125,284,000 | 111,491,000 | 84,148,000 |
General and administrative expenses | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 32,545,000 | 29,457,000 | 21,762,000 |
General and administrative expenses | Affiliate Grants | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 10.3 | $ 5 | $ 4.7 |
Related-Party Transactions - Ma
Related-Party Transactions - Management Services Agreement (Details) - USD ($) | Apr. 02, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||||
Finished good inventory | $ 42,364,000 | $ 32,998,000 | |||
Cost of goods sold | 767,956,000 | 603,325,000 | $ 504,300,000 | ||
General and administrative expenses | 32,545,000 | 29,457,000 | 21,762,000 | ||
Fees waived under Management Services Agreement | 23,400,000 | 22,600,000 | 0 | ||
increase to Partners' capital accounts | (50,000,000) | ||||
Management services agreements | |||||
Related Party Transaction [Line Items] | |||||
Finished good inventory | 907,000 | 419,000 | |||
Related-party payables | 8,650,000 | 18,703,000 | |||
Cost of goods sold | 74,475,000 | 63,377,000 | 52,280,000 | ||
General and administrative expenses | 32,545,000 | 29,457,000 | $ 21,762,000 | ||
Hamlet Drop-Down Agreements | |||||
Related Party Transaction [Line Items] | |||||
Cost of goods sold | 7,700,000 | ||||
Second EVA MSA Fee Waiver | Enviva Management Company | |||||
Related Party Transaction [Line Items] | |||||
Fees waived under Management Services Agreement | $ 5 | ||||
EVA MSA | Enviva, LP | |||||
Related Party Transaction [Line Items] | |||||
Fees waived under Management Services Agreement | $ 13 | ||||
Partners' Capital | Hamlet JV Master Service Agreement | Enviva, LP | |||||
Related Party Transaction [Line Items] | |||||
Management Expense Fee Waived | $ 1,900,000 | 2,600,000 | |||
Partners' Capital | Hamlet JV Master Service Agreement | Enviva Management Company | |||||
Related Party Transaction [Line Items] | |||||
Fees waived under Management Services Agreement | $ 2.7 | ||||
Partners' Capital | Second EVA MSA Fee Waiver | |||||
Related Party Transaction [Line Items] | |||||
Management Expense Fee Waived | 5,000,000 | ||||
Partners' Capital | MSA fee waivers and reimbursement of construction cost overruns | |||||
Related Party Transaction [Line Items] | |||||
Management Expense Fee Waived | $ 19,700,000 |
Related-Party Transactions - Co
Related-Party Transactions - Common Control Transactions (Details) - USD ($) | Apr. 01, 2019 | Oct. 02, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||||
Second cash payment | $ 0 | $ 24,300,000 | $ 0 | ||
Wilmington Drop-Down | |||||
Related Party Transaction [Line Items] | |||||
Total consideration | $ 130 | ||||
Second and final payment | $ 74 | ||||
Second cash payment | $ 24.3 | ||||
Wilmington Drop-Down | John Hancock | |||||
Related Party Transaction [Line Items] | |||||
Issuance of common units (in units) | 1,691,627 | ||||
Issuance of common units value | $ 49.7 | ||||
Second cash payment | $ 22.8 |
Related-Party Transactions - Ho
Related-Party Transactions - Holdings TSA (Details) MT in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)MT | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 0 | ||
Holdings TSA | |||
Related Party Transaction [Line Items] | |||
Quarterly amounts of pellets to be delivered | MT | 125 | ||
Holdings TSA | Our Sponsor | |||
Related Party Transaction [Line Items] | |||
Terminal services revenue | $ 0 | $ 0 | 800 |
Holdings TSA | Other revenue | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | 500 | ||
Holdings TSA | Other revenue | Greenwood | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | 1,300 | 1,800 | 2,200 |
Greenwood contract | |||
Related Party Transaction [Line Items] | |||
Wood pellets purchased | $ 18,800 | $ 46,200 | 27,400 |
Greenwood contract | Cost of goods sold | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | 1,300 | ||
TSA and Greenwood Contract | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 1,800 |
Related-Party Transactions - En
Related-Party Transactions - Enviva FiberCo, LLC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 0 | ||
Due to Related Parties | $ 0 | ||
Enviva FiberCo. LLC | |||
Related Party Transaction [Line Items] | |||
Purchase Of Wood Pellets and Deficiency Fee Costs Net | $ 500 | ||
Purchase of raw materials | $ 7,500 | $ 7,100 | |
Deficiency fees | 0 | ||
Due to Related Parties | $ 300 |
Related-Party Transactions - Bi
Related-Party Transactions - Biomass Agreements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Biomass Option Agreement | |
Related Party Transaction [Line Items] | |
Wood pellets purchased | $ 1,700 |
Related-Party Transactions - Gr
Related-Party Transactions - Greenwood Contract (Details) MT in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020MT | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||||
Deficiency fees | $ 0 | |||
Greenwood contract | ||||
Related Party Transaction [Line Items] | ||||
Annual volume of wood pellets to be purchased | MT | 550 | |||
Wood pellets purchased | $ 18,800 | $ 46,200 | 27,400 | |
Deficiency fees | 300 | 5,000 | 700 | |
Purchase of wood pellets and deficiency fee costs net | 18,100 | 41,200 | 26,700 | |
Inventory finished goods | Greenwood contract | ||||
Related Party Transaction [Line Items] | ||||
Purchase of wood pellets and deficiency fee costs net | 300 | 500 | ||
Related-party payable | Greenwood contract | ||||
Related Party Transaction [Line Items] | ||||
Wood pellets purchased | 0 | 1,300 | ||
Cost of goods sold | Greenwood contract | ||||
Related Party Transaction [Line Items] | ||||
Purchase of wood pellets and deficiency fee costs net | 40,900 | 26,200 | ||
Deficiency fees | $ 1,300 | |||
Enviva FiberCo. LLC | ||||
Related Party Transaction [Line Items] | ||||
Purchase of wood pellets and deficiency fee costs net | $ 500 | |||
Deficiency fees | $ 0 |
Related-Party Transactions - Dr
Related-Party Transactions - Drop-Down Agreements (Details) - USD ($) | Apr. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2019 |
Related Party Transaction [Line Items] | |||||
MSA Fee Waivers | $ 23,400,000 | $ 22,600,000 | $ 0 | ||
Cost of goods sold | 767,956,000 | 603,325,000 | $ 504,300,000 | ||
EVA MSA | Enviva, LP | |||||
Related Party Transaction [Line Items] | |||||
MSA Fee Waivers | $ 13 | ||||
Hamlet Make-Whole Agreement | Our Sponsor | |||||
Related Party Transaction [Line Items] | |||||
Cost of goods sold | 25,200,000 | ||||
Interim Service Agreement | Enviva Hamlet Operator, LLC | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Due from (to) Related Party, Current | 12,300,000 | ||||
Hamlet JV Revolver | Hamlet JV | |||||
Related Party Transaction [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60 | $ 30 | |||
Notes Payable, Related Parties | 41.7 | 52,200,000 | |||
Partners' Capital | Hamlet JV Master Service Agreement | Enviva, LP | |||||
Related Party Transaction [Line Items] | |||||
Management Expense Fee Waived | 1,900,000 | $ 2,600,000 | |||
Partners' Capital | Third EVA MSA Fee Waiver | Enviva, LP | |||||
Related Party Transaction [Line Items] | |||||
Management Expense Fee Waived | 18,000,000 | ||||
Partners' Capital | First EVA MSA Fee Waiver | |||||
Related Party Transaction [Line Items] | |||||
Management Expense Fee Waived | $ 3,500,000 |
Related-Party Transactions - Eq
Related-Party Transactions - Equipment Transfer (Details) $ in Thousands | 1 Months Ended |
Apr. 30, 2020USD ($) | |
Our Sponsor | |
Related Party Transaction [Line Items] | |
Proceeds from Sale of Machinery and Equipment | $ 4,100 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Provision for income tax | $ 0 | $ 0 | |
Income tax expense | $ 69 | 0 | 0 |
Reserves for uncertain tax position | 0 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense | 69 | 0 | $ 0 |
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Deferred tax liabilities, net | (13,217) | $ 0 | |
Enviva Pellets Waycross Holdings, LLC | |||
Income tax expense | 69 | ||
Operating Loss Carryforwards | 17,200 | ||
Deferred Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||
U.S. Federal | 69 | ||
Total deferred | 69 | ||
Total income tax expense related to continuing operations | 69 | ||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income taxes at statutory federal income tax rate | 3,601 | ||
Partnership earnings not subject to tax | (3,671) | ||
Other | 139 | ||
Income tax expense | 69 | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Net operating loss carryforward | 3,611 | ||
Total deferred tax assets | 3,611 | ||
Investment in affiliates | (16,828) | ||
Total deferred tax liabilities | (16,828) | ||
Deferred tax liabilities, net | $ (13,217) |
Partners' Capital - Common Unit
Partners' Capital - Common Units Issuance, Sponsor and Hamlet JV (Details) - USD ($) | Jun. 23, 2020 | Apr. 02, 2019 | Apr. 01, 2019 | Mar. 20, 2019 | May 30, 2018 | May 09, 2018 | Jan. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 18, 2020 |
Distribution rights [Abstract] | |||||||||||
Issue units in registered direct offering (in $) | $ 97 | ||||||||||
Hamlet JV | |||||||||||
Distribution rights [Abstract] | |||||||||||
Distribution to holders of outstanding Class B Units | 7500.00% | ||||||||||
Issue units in registered direct offering (in $) | $ 1 | ||||||||||
Wilmington, LLC Drop-Down | |||||||||||
Distribution rights [Abstract] | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 0 | $ 0 | $ 0 | ||||||||
John Hancock | Hamlet JV | |||||||||||
Partners' Capital and Distribution | |||||||||||
Issuance of common units, net (in units) | 1,691,627 | ||||||||||
Distribution rights [Abstract] | |||||||||||
Distribution to holders of outstanding Class A Units | 2500.00% | ||||||||||
Our Sponsor | Hamlet Drop-Down | |||||||||||
Partners' Capital and Distribution | |||||||||||
Issuance of common units, net (in units) | 1,681,237 | ||||||||||
Class A Units | John Hancock | Hamlet JV | |||||||||||
Partners' Capital and Distribution | |||||||||||
Total capital commitment | $ 235,200,000 | ||||||||||
Limited partner units outstanding | 227 | ||||||||||
Remaining capital commitment | $ 8,200,000 | ||||||||||
Distribution rights [Abstract] | |||||||||||
Issue units in registered direct offering (in $) | 1 | ||||||||||
Class B Units | Hamlet JV | |||||||||||
Partners' Capital and Distribution | |||||||||||
Total capital commitment | $ 232,200,000 | ||||||||||
Limited partner units outstanding | 224 | ||||||||||
Remaining capital commitment | $ 8,200,000 | ||||||||||
Distribution rights [Abstract] | |||||||||||
Issue units in registered direct offering (in $) | 1 | ||||||||||
Private Placement | |||||||||||
Partners' Capital and Distribution | |||||||||||
Issuance of common units, net (in units) | 6,153,846 | ||||||||||
Gross proceeds | $ 200 | ||||||||||
Net proceeds | 190.5 | ||||||||||
Issuance of common units (usd per unit) | $ 32.50 | ||||||||||
Distribution rights [Abstract] | |||||||||||
Issuance costs | $ 9.5 | ||||||||||
Registered offering member | |||||||||||
Partners' Capital and Distribution | |||||||||||
Issuance of common units, net (in units) | 3,508,778 | ||||||||||
Distribution rights [Abstract] | |||||||||||
Issuance costs | $ 3 | ||||||||||
Common Units | Hamlet JV | |||||||||||
Partners' Capital and Distribution | |||||||||||
Issuance of common units value | $ 49.7 | ||||||||||
Common Units | Our Sponsor | |||||||||||
Partners' Capital and Distribution | |||||||||||
Limited partner units outstanding | 11,905,138 | ||||||||||
Common Units | Our Sponsor | Hamlet Drop-Down | |||||||||||
Partners' Capital and Distribution | |||||||||||
Issuance of common units value | $ 50 | ||||||||||
Third parties | Our Sponsor | |||||||||||
Partners' Capital and Distribution | |||||||||||
Sale of common units (in units) | 1,265,453 | ||||||||||
General Partner | Our Sponsor | |||||||||||
Partners' Capital and Distribution | |||||||||||
Sale of common units (in units) | 81,708 | ||||||||||
Subordinated Units | |||||||||||
Distribution rights [Abstract] | |||||||||||
Conversion of common units ratio (per unit) | 1 |
Partners' Capital - Shelf Regis
Partners' Capital - Shelf Registration - Equity Interests in the Partnership (Details) - USD ($) | Jun. 21, 2019 | Apr. 02, 2019 | Apr. 01, 2019 |
Shelf registration | |||
Partners' Capital and Distribution | |||
Maximum aggregate initial offering price of all securities sold | $ 500 | ||
Hamlet JV | Common Units | |||
Partners' Capital and Distribution | |||
Issuance of common units value | $ 49.7 | ||
Hamlet JV | Common Units | Shelf registration | |||
Partners' Capital and Distribution | |||
Issuance of common units (in units) | 1,691,627 | ||
Issuance of common units value | $ 49.7 | ||
John Hancock | Hamlet JV | |||
Partners' Capital and Distribution | |||
Issuance of common units, net (in units) | 1,691,627 | ||
Our Sponsor | Hamlet Drop-Down | |||
Partners' Capital and Distribution | |||
Issuance of common units, net (in units) | 1,681,237 | ||
Our Sponsor | Hamlet Drop-Down | Shelf registration | |||
Partners' Capital and Distribution | |||
Issuance of common units value | $ 50 | ||
Issuance of common units, net (in units) | 1,681,237 | ||
Our Sponsor | Hamlet Drop-Down | Common Units | |||
Partners' Capital and Distribution | |||
Issuance of common units value | $ 50 |
Partners' Capital - Allocation
Partners' Capital - Allocation of Net Income (Loss) and Incentive Distribution Rights (Details) - General Partner Interest | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 08, 2016 | |
Partners' Capital and Distribution | ||||
Proceeds from sale of common units, net of commissions | $ 190,529,000 | $ 96,822,000 | $ 241,000 | |
Common Units | Maximum | At-the-market offering | ||||
Partners' Capital and Distribution | ||||
Stated value of common units authorized for sale | $ 100 |
Partners' Capital - Cash Distri
Partners' Capital - Cash Distributions to Unitholders (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 29, 2021 | Oct. 30, 2020 | Aug. 05, 2020 | Apr. 29, 2020 | Jan. 29, 2020 | Oct. 30, 2019 | Jul. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Incentive Distribution Rights | ||||||||||
Cash distribution declared (in dollars per unit) | $ 0.7750 | $ 0.7650 | $ 0.6800 | $ 0.6750 | $ 0.6700 | $ 0.6600 | $ 3 | $ 2.6500 | $ 2.5300 | |
Cash distribution declared | $ 30.8 | $ 30.4 | $ 22.9 | $ 22.7 | $ 22.4 | $ 22.1 | ||||
Incentive distribution paid | $ 7.9 | $ 7.5 | $ 3.5 | $ 3.3 | $ 3.1 | $ 2.8 | ||||
Subsequent Event - LTIP units | ||||||||||
Incentive Distribution Rights | ||||||||||
Cash distribution declared (in dollars per unit) | $ 0.7800 | |||||||||
Cash distribution declared | $ 31.2 | |||||||||
Incentive distribution paid | $ 8.1 |
Partners' Capital Partners' Cap
Partners' Capital Partners' Capital - Allocations of Net Income (Loss) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Partners' Capital and Distribution | |
Distribution Made To General Partner Cash Distributions Allocations Of Net Income | 100.00% |
Partners' Capital - Common Un_2
Partners' Capital - Common Units - Sponsor and Allocations of Net Income (Loss) (Details) - USD ($) | Apr. 02, 2019 | Apr. 01, 2019 | Mar. 20, 2019 | May 09, 2018 | Jan. 30, 2018 |
Partners' Capital and Distribution | |||||
Issue units in registered direct offering (in $) | $ 97 | ||||
Hamlet JV | |||||
Partners' Capital and Distribution | |||||
Issue units in registered direct offering (in $) | $ 1 | ||||
Common Units | Hamlet JV | |||||
Partners' Capital and Distribution | |||||
Issuance of common units value | $ 49.7 | ||||
Our Sponsor | General Partner | |||||
Partners' Capital and Distribution | |||||
Common units sold (in units) | 81,708 | ||||
Our Sponsor | Third parties | |||||
Partners' Capital and Distribution | |||||
Common units sold (in units) | 1,265,453 |
Partners' Capital - Accumulated
Partners' Capital - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in accumulated other comprehensive income | |||
Beginning of period | $ 23 | $ 439 | |
Net unrealized gains on cash flow hedges | 0 | (146) | $ 5,655 |
Reclassification of net gains (losses) realized into net income | 22 | 288 | |
Currency translation adjustment | (19) | 0 | 2 |
End of period | $ (18) | 23 | $ 439 |
Cumulative effect of accounting change - derivative instruments | $ 18 |
Equity-Based Awards Equity-Base
Equity-Based Awards Equity-Based Awards Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2020 | Jan. 31, 2020 | Jan. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 27, 2021 | |
Equity-Based Awards | |||||||
General and administrative expenses | $ 45,345,000 | $ 36,389,000 | $ 27,641,000 | ||||
Payment for withholding tax | $ 4,996,000 | 1,910,000 | 4,536,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | Time-based Affiliate Grants vest on the third or fourth anniversary of the grant date | ||||||
Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Compensation expense | $ 0 | ||||||
Performance-Based Phantom Units | Minimum | |||||||
Equity-Based Awards | |||||||
Vesting period | 3 years | ||||||
Performance-Based Phantom Units | Maximum | |||||||
Equity-Based Awards | |||||||
Vesting period | 4 years | ||||||
LTIP | |||||||
Equity-Based Awards | |||||||
Vesting period | 60 days | ||||||
Affiliate Grants | |||||||
Equity-Based Awards | |||||||
Grant date fair value | $ 35,700,000 | $ 18,700,000 | |||||
Vested (in units) | 299,997 | 145,506 | 226,595 | ||||
Granted (in units) | 940,048 | 615,794 | 569,833 | ||||
Unrecognized estimated compensation cost | $ 14,100,000 | ||||||
Affiliate Grants | Enviva Management Company | |||||||
Equity-Based Awards | |||||||
Payment for withholding tax | 5,000,000 | $ 1,900,000 | |||||
Affiliate Grants | General and administrative expenses | |||||||
Equity-Based Awards | |||||||
General and administrative expenses | $ 10,300,000 | $ 5,000,000 | $ 4,700,000 | ||||
Affiliate Grants | Time-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 232,116 | 145,506 | 181,536 | ||||
Granted (in units) | 552,988 | 395,851 | 398,729 | ||||
Affiliate Grants | Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 67,881 | 0 | 45,059 | ||||
Granted (in units) | 387,060 | 219,943 | 171,104 | ||||
Non Employee Directors | |||||||
Equity-Based Awards | |||||||
Granted (in units) | 0 | 0 | 420 | ||||
Director Grants | |||||||
Equity-Based Awards | |||||||
Grant date fair value | $ 0.1 | $ 0.5 | $ 400,000 | ||||
Compensation expense | $ 500,000 | $ 400,000 | $ 400,000 | ||||
Vested (in units) | 13,264 | 13,964 | 15,840 | ||||
Granted (in units) | 14,987 | 13,264 | 13,964 | ||||
Unrecognized estimated compensation cost | $ 0.1 | ||||||
Subsequent Event - LTIP units | LTIP | |||||||
Equity-Based Awards | |||||||
Number of common units to be awarded under the plan | 3,450,000 |
Equity-Based Awards Equity-Ba_2
Equity-Based Awards Equity-Based Awards Schedule of Phantom Unit Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Affiliate Grants | |||
Equity-Based Awards-Schedule of Phantom Unit Awards [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 1,309,556 | 963,452 | 706,970 |
Granted (in units) | 940,048 | 615,794 | 569,833 |
Forfeitures (in units) | (239,208) | (124,184) | (106,588) |
Adjusted (in units) | 19,832 | ||
Vested (in units) | (299,997) | (145,506) | (226,595) |
Nonvested at the end of the period (in units) | 1,710,399 | 1,309,556 | 963,452 |
Equity-Based Awards-Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 28.88 | $ 26.34 | $ 22.82 |
Granted (in dollars per unit) | 38 | 30.36 | 29.08 |
Adjusted (in dollars per unit) | 18.19 | ||
Forfeitures (in dollar per unit) | 32.15 | 28.80 | 25.62 |
Vested (in dollars per unit) | 27.21 | 18.30 | 21.89 |
Nonvested at the end of the period (in dollars per unit) | $ 33.73 | $ 28.88 | $ 26.34 |
Affiliate Grants | Time-Based Phantom Units | |||
Equity-Based Awards-Schedule of Phantom Unit Awards [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 874,286 | 723,940 | 595,866 |
Granted (in units) | 552,988 | 395,851 | 398,729 |
Forfeitures (in units) | (133,273) | (99,999) | (89,119) |
Adjusted (in units) | 0 | ||
Vested (in units) | (232,116) | (145,506) | (181,536) |
Nonvested at the end of the period (in units) | 1,061,885 | 874,286 | 723,940 |
Equity-Based Awards-Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 28.90 | $ 25.91 | $ 22.32 |
Granted (in dollars per unit) | 37.98 | 30.41 | 29.15 |
Adjusted (in dollars per unit) | 0 | ||
Forfeitures (in dollar per unit) | 33.15 | 28.56 | 25.59 |
Vested (in dollars per unit) | 26.97 | 18.30 | 21.42 |
Nonvested at the end of the period (in dollars per unit) | $ 33.52 | $ 28.90 | $ 25.91 |
Affiliate Grants | Performance-Based Phantom Units | |||
Equity-Based Awards-Schedule of Phantom Unit Awards [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 435,270 | 239,512 | 111,104 |
Granted (in units) | 387,060 | 219,943 | 171,104 |
Forfeitures (in units) | (105,935) | (24,185) | (17,469) |
Adjusted (in units) | 19,832 | ||
Vested (in units) | (67,881) | 0 | (45,059) |
Nonvested at the end of the period (in units) | 648,514 | 435,270 | 239,512 |
Equity-Based Awards-Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 28.84 | $ 27.65 | $ 25.52 |
Granted (in dollars per unit) | 38.02 | 30.28 | 28.92 |
Adjusted (in dollars per unit) | 18.19 | ||
Forfeitures (in dollar per unit) | 30.89 | 29.82 | 25.76 |
Vested (in dollars per unit) | 28.03 | 0 | 23.80 |
Nonvested at the end of the period (in dollars per unit) | $ 34.07 | $ 28.84 | $ 27.65 |
Director Grants | |||
Equity-Based Awards-Schedule of Phantom Unit Awards [Roll Forward] | |||
Nonvested at the beginning of the period (in units) | 13,264 | 13,964 | 15,840 |
Granted (in units) | 14,987 | 13,264 | 13,964 |
Vested (in units) | (13,264) | (13,964) | (15,840) |
Nonvested at the end of the period (in units) | 14,987 | 13,264 | 13,964 |
Equity-Based Awards-Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested at the beginning of the period (in dollars per unit) | $ 30.16 | $ 28.65 | $ 25.25 |
Granted (in dollars per unit) | 38.37 | 30.16 | 28.65 |
Vested (in dollars per unit) | 30.16 | 28.65 | 25.25 |
Nonvested at the end of the period (in dollars per unit) | $ 38.37 | $ 30.16 | $ 28.65 |
Non Employee Directors | |||
Equity-Based Awards-Schedule of Phantom Unit Awards [Roll Forward] | |||
Granted (in units) | 0 | 0 | 420 |
Equity-Based Awards Distributio
Equity-Based Awards Distribution Equivalent Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Performance-Based Phantom Units | |||
Class of Stock [Line Items] | |||
Unpaid DER | $ 4,639 | $ 1,590 | |
Time-Based Phantom Units | |||
Class of Stock [Line Items] | |||
Unpaid DER | 0 | ||
Time-Based Phantom Units | Affiliate Grants | |||
Class of Stock [Line Items] | |||
Distributions Paid Related To Distribution Equivalent Rights | $ 3,900 | 2,700 | $ 1,800 |
Distribution Equivalent Rights | |||
Class of Stock [Line Items] | |||
Period In Which Distributions Related To Distribution Equivalent Rights Are Required To Be Paid | 60 days | ||
Related-party payables | Time-Based Phantom Units | Affiliate Grants | |||
Class of Stock [Line Items] | |||
Unpaid DER | 600 | ||
Accrued liabilities | Performance-Based Phantom Units | |||
Class of Stock [Line Items] | |||
Unpaid DER | $ 1,697 | 397 | |
Other long-term liabilities | Performance-Based Phantom Units | |||
Class of Stock [Line Items] | |||
Unpaid DER | $ 2,942 | $ 1,193 |
Net Income (Loss) per Limited_3
Net Income (Loss) per Limited Partner Unit - Narrative (Details) | May 30, 2018shares | Dec. 31, 2020shares | Dec. 31, 2018shares |
Potentially dilutive subordinated units outstanding | 0 | ||
Subordinated Units | |||
Conversion of subordinated units to common units (in units) | 11,905,138 | ||
Unit conversion ratio per unit | 1 | ||
Subordinated Units— Sponsor | |||
Conversion of subordinated units to common units (in units) | 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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income per Limited Partner Unit | |||
Net (loss) income | $ 17,080 | $ (2,943) | $ 6,952 |
Net income attributable to Enviva Partners, LP | 13,624 | (5,822) | 6,952 |
Less: Distributions declared on: | |||
Distributions declared | 142,235 | 100,200 | 72,878 |
Undistributed earnings: | |||
Earnings less than distributions | 128,611 | 106,022 | 65,926 |
Common Units | |||
Net Income per Limited Partner Unit | |||
Net income attributable to Enviva Partners, LP | (13,293) | (17,261) | 884 |
Less: Distributions declared on: | |||
Distributions declared | 115,318 | 88,761 | 54,604 |
Undistributed earnings: | |||
Earnings less than distributions | 128,611 | 106,022 | 53,720 |
Subordinated Units | |||
Net Income per Limited Partner Unit | |||
Net income attributable to Enviva Partners, LP | 201 | ||
Less: Distributions declared on: | |||
Distributions declared | 0 | 0 | 12,407 |
Undistributed earnings: | |||
Earnings less than distributions | 12,206 | ||
IDRs | |||
Net Income per Limited Partner Unit | |||
Net income attributable to Enviva Partners, LP | 26,917 | 11,439 | 5,867 |
Less: Distributions declared on: | |||
Distributions declared | 26,917 | 11,439 | 5,867 |
Limited Partners’ Capital | |||
Net Income per Limited Partner Unit | |||
Net (loss) income available to partners | $ 13,624 | $ (5,822) | $ 6,952 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—diluted | 36,813 | ||
Common Units | |||
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—basic | 36,813 | 31,791 | 21,533 |
Effect of nonvested phantom units | 1,020 | ||
Weighted-average common units outstanding—diluted | 36,813 | 31,791 | 22,553 |
Subordinated Units | |||
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—basic | 4,893 | ||
Effect of nonvested phantom units | 0 | ||
Weighted-average common units outstanding—diluted | 4,893 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income per Limited Partner Unit | |||
Distributions declared | $ 142,235 | $ 100,200 | $ 72,878 |
Earnings less than distributions | 128,611 | 106,022 | 65,926 |
Net (loss) income available to partners | $ 13,624 | (5,822) | 6,952 |
Weighted-average units outstanding - diluted (in units) | 36,813 | ||
Net income per limited partner unit - diluted (in dollars per unit) | $ (0.36) | ||
Common Units | |||
Net Income per Limited Partner Unit | |||
Distributions declared | $ 115,318 | 88,761 | 54,604 |
Earnings less than distributions | 128,611 | 106,022 | 53,720 |
Net (loss) income available to partners | $ (13,293) | $ (17,261) | $ 884 |
Weighted-average units outstanding - basic (in units) | 36,813 | 31,791 | 21,533 |
Weighted-average units outstanding - diluted (in units) | 36,813 | 31,791 | 22,553 |
Net income per limited partner unit - basic (in dollars per unit) | $ (0.36) | $ (0.54) | $ 0.04 |
Net income per limited partner unit - diluted (in dollars per unit) | $ (0.54) | ||
Subordinated Units | |||
Net Income per Limited Partner Unit | |||
Distributions declared | $ 0 | $ 0 | $ 12,407 |
Earnings less than distributions | 12,206 | ||
Net (loss) income available to partners | $ 201 | ||
Weighted-average units outstanding - basic (in units) | 4,893 | ||
Weighted-average units outstanding - diluted (in units) | 4,893 | ||
IDRs | |||
Net Income per Limited Partner Unit | |||
Distributions declared | 26,917 | 11,439 | $ 5,867 |
Net (loss) income available to partners | $ 26,917 | $ 11,439 | $ 5,867 |
Subordinated Units | |||
Net Income per Limited Partner Unit | |||
Net income per limited partner unit - basic (in dollars per unit) | $ 0.04 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) MT in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)MT | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Commitments and Contingencies | |||
Firm commitments | $ 499,752,000 | ||
Cost of goods sold | 767,956,000 | $ 603,325,000 | $ 504,300,000 |
Shipping expenses | |||
Commitments and Contingencies | |||
Cost of goods sold | 75,000,000 | 64,100,000 | 64,100,000 |
Terminal and stevedoring services agreements | |||
Commitments and Contingencies | |||
Firm commitments | 22,800,000 | ||
Services expenses | 9,700,000 | 11,300,000 | 9,800,000 |
Transportation Agreement | |||
Commitments and Contingencies | |||
Transportation expense | $ 30,700,000 | 25,500,000 | 29,800,000 |
Long-term supply agreement | |||
Commitments and Contingencies | |||
Purchase commitment for wood pellets | MT | 1,080 | ||
Sale commitment for wood pellets | MT | 1,080 | ||
Wood pellet purchases | $ 43,200,000 | $ 51,600,000 | $ 29,500,000 |
Remaining amount of wood pellets to be sold | $ 237.5 | ||
Long-term shipping agreement | Maximum | |||
Commitments and Contingencies | |||
Lease term | 17 years |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies - Schedule of Future Minimum Firm Commitments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 142,383 |
2022 | 119,881 |
2023 | 112,633 |
2024 | 83,182 |
2025 | 41,673 |
Total | $ 499,752 |