Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Document And Entity Information Abstract | |||
Entity Registrant Name | Enviva Partners, LP | ||
Entity Central Index Key | 0001592057 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
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 | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Small Business | false | ||
Entity Public Float | $ 624.3 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Units, Units Outstanding | 33,605,138 | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 9,053 | $ 2,460 |
Accounts receivable | 72,421 | 54,794 |
Insurance receivables | 275 | 5,140 |
Related-party receivables | 0 | 1,392 |
Inventories | 32,998 | 31,490 |
Prepaid expenses and other current assets | 5,342 | 2,235 |
Total current assets | 120,089 | 97,511 |
Property, plant and equipment, net | 682,268 | 542,635 |
Property, plant and equipment, net | 751,780 | 557,028 |
Operating lease right-of-use assets | 32,830 | 0 |
Goodwill | 85,615 | 85,615 |
Other long-term assets | 4,504 | 8,616 |
Total assets | 994,818 | 748,770 |
Current liabilities: | ||
Accounts payable | 18,985 | 15,551 |
Related-party payables, net | 304 | 28,225 |
Deferred consideration for drop-downs due to related-party | 40,000 | 74,000 |
Accrued and other current liabilities | 59,066 | 41,400 |
Current portion of interest payable | 3,427 | 5,434 |
Current portion of long-term debt and finance lease obligations | 6,590 | 2,722 |
Total current liabilities | 128,372 | 167,332 |
Long-term debt and finance lease obligations | 596,430 | 429,933 |
Long-term operating lease liabilities | 33,469 | 0 |
Long-term interest payable | 0 | 1,010 |
Other long-term liabilities | 3,971 | 3,779 |
Total liabilities | 762,242 | 602,054 |
Commitments and contingencies | ||
Limited partners: | ||
Common unitholders—public (19,870,436 and 14,573,452 units issued and outstanding at December 31, 2019 and 2018, respectively) | 300,184 | 207,612 |
Common unitholder—sponsor (13,586,375 and 11,905,138 units issued and outstanding at December 31, 2019 and 2018, respectively) | 82,300 | 72,352 |
General partner (no outstanding units) | (101,739) | (133,687) |
Accumulated other comprehensive income | 23 | 439 |
Total Enviva Partners, LP partners’ capital | 280,768 | 146,716 |
Noncontrolling interest | (48,192) | 0 |
Total partners' capital | 232,576 | 146,716 |
Total liabilities and partners’ capital | $ 994,818 | $ 748,770 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Common Units— Public | ||
Limited partner units issued | 19,870,436 | 14,573,452 |
Limited partner units outstanding | 19,870,436 | 14,573,452 |
Common Units— Sponsor | ||
Limited partner units issued | 13,586,375 | 11,905,138 |
Limited partner units outstanding | 13,586,375 | 11,905,138 |
Subordinated Units | ||
Limited partner units issued | 0 | 0 |
Limited partner units outstanding | 0 | 0 |
General Partner Interest | ||
General partner units outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net revenue | $ 684,393,000 | $ 573,741,000 | $ 543,221,000 | |
Cost of goods sold, excluding depreciation and amortization | [1] | 549,701,000 | 461,735,000 | 419,616,000 |
Loss on disposal of assets | 3,103,000 | 2,386,000 | 4,899,000 | |
Depreciation and amortization | 50,521,000 | 40,179,000 | 39,904,000 | |
Total cost of goods sold | 603,325,000 | 504,300,000 | 464,419,000 | |
Gross margin | 81,068,000 | 69,441,000 | 78,802,000 | |
General and administrative expenses | 11,897,000 | 10,545,000 | 14,975,000 | |
Related-party management services agreement fee | 24,492,000 | 17,096,000 | 15,132,000 | |
Disposal of assets held for sale | 0 | 0 | 827,000 | |
Total general and administrative expenses | 36,389,000 | 27,641,000 | 30,934,000 | |
Income from operations | 44,679,000 | 41,800,000 | 47,868,000 | |
Other income (expense): | ||||
Interest expense | (39,344,000) | (36,471,000) | (31,744,000) | |
Early retirement of debt obligation | (9,042,000) | (751,000) | 0 | |
Other income (expense) | 764,000 | 2,374,000 | (1,751,000) | |
Total other expense, net | (47,622,000) | (34,848,000) | (33,495,000) | |
Net (loss) income | (2,943,000) | 6,952,000 | 14,373,000 | |
Less net loss attributable to noncontrolling partners’ interests | 0 | 0 | 3,140,000 | |
Net (loss) income available to partners | $ (2,943,000) | $ 6,952,000 | $ 17,513,000 | |
Net (loss) income per limited partner common unit: | ||||
Common - basic (in dollars per unit) | $ (0.54) | $ 0.04 | $ 0.65 | |
Common - diluted (in dollars per unit) | (0.54) | 0.04 | 0.61 | |
Net income per limited partner subordinated unit: | ||||
Subordinated - basic (in dollars per unit) | 0 | 0.04 | 0.65 | |
Subordinated - diluted (in dollars per unit) | $ 0 | $ 0.04 | $ 0.65 | |
Weighted-average number of limited partner units outstanding: | ||||
Common - basic (in units) | 31,791 | 21,533 | 14,403 | |
Common - diluted (in units) | 31,791 | 22,553 | 15,351 | |
Subordinated - basic and diluted (in units) | 0 | 4,893 | 11,905 | |
General Partner Interest | ||||
Other income (expense): | ||||
Net (loss) income | $ 9,821,000 | $ 5,326,000 | $ (418,000) | |
Limited Partners’ Capital | ||||
Other income (expense): | ||||
Net (loss) income | (5,822,000) | 6,952,000 | 17,513,000 | |
Net (loss) income available to partners | (2,943,000) | 6,952,000 | 20,562,000 | |
Wilmington, LLC Drop-Down | ||||
Other income (expense): | ||||
Less net loss attributable to noncontrolling partners’ interests | 0 | 3,100,000 | ||
Wilmington, LLC Drop-Down | General Partner Interest | ||||
Other income (expense): | ||||
Net (loss) income available to partners | 0 | 0 | (3,049,000) | |
Product sales | ||||
Net revenue | 674,251,000 | 564,010,000 | 522,250,000 | |
Other revenue | ||||
Net revenue | [1] | $ 10,142,000 | $ 9,731,000 | $ 20,971,000 |
[1] | See Note 13, Related-Party Transactions |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net (loss) income | $ (2,943) | $ 6,952 | $ 14,373 |
Other comprehensive (loss) income: | |||
Net unrealized (losses) gains on cash flow hedges | (146) | 5,655 | (5,463) |
Reclassification of net (gains) losses on cash flow hedges realized into net (loss) income | (288) | (2,178) | 1,828 |
Currency translation adjustment | 0 | 2 | 0 |
Total other comprehensive (loss) income | (434) | 3,479 | (3,635) |
Total comprehensive (loss) income | (3,377) | 10,431 | 10,738 |
Comprehensive loss attributable to noncontrolling partners’ interests | 0 | 0 | |
Comprehensive (loss) income attributable to Enviva Partners, LP partners | (3,377) | 10,431 | |
Enviva Partners LP excluding predecessor Wilmington, LLC Drop-Down | |||
Other comprehensive (loss) income: | |||
Total comprehensive (loss) income | 13,787 | ||
Comprehensive loss attributable to noncontrolling partners’ interests | (3,140) | ||
Comprehensive (loss) income attributable to Enviva Partners, LP partners | 16,927 | ||
Wilmington, LLC Drop-Down | |||
Other comprehensive (loss) income: | |||
Total comprehensive (loss) income | 0 | 0 | (3,049) |
General Partner Interest | |||
Net (loss) income | $ 9,821 | $ 5,326 | $ (418) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Enviva Pellets Sampson, LLC | Enviva Port of Wilmington, LLC | Enviva Wilmington Holdings, LLC | Accumulated Other Comprehensive Income (loss) | General Partner Interest | General Partner InterestEnviva Pellets Sampson, LLC | General Partner InterestEnviva Port of Wilmington, LLC | General Partner InterestEnviva Wilmington Holdings, LLC | Limited Partners’ Capital | Common Units— Public | Common Units— Sponsor | Subordinated Units— Sponsor | Non- controlling Interests | Non- controlling InterestsEnviva Port of Wilmington, LLC | Non- controlling InterestsEnviva Wilmington Holdings, LLC |
Balance at the beginning of the period at Dec. 31, 2016 | $ 376,862 | $ 595 | $ (40,713) | $ 239,902 | $ 18,197 | $ 120,872 | $ 38,009 | |||||||||
Balance at the beginning of the period (in units) at Dec. 31, 2016 | 12,981,000 | 1,347,000 | 11,905,000 | |||||||||||||
Changes in Partners’ Capital | ||||||||||||||||
Distributions to unitholders, distribution equivalent and incentive distribution rights | (64,312) | (2,630) | $ (31,533) | $ (3,065) | $ (27,084) | |||||||||||
Enviva Port of Wilmington, LLC, net assets | $ (73,335) | $ (73,335) | ||||||||||||||
Issuance of units through Long-Term Incentive Plan | 503 | $ 503 | ||||||||||||||
Issuance of units through Long-Term Incentive Plan (in units) | 21,000 | |||||||||||||||
Issuance of common units, net | 1,744 | $ 1,744 | ||||||||||||||
Issuance of common units, net (in units) | 71,000 | |||||||||||||||
Non-cash Management Services Agreement expenses | 4,952 | 441 | $ 4,511 | |||||||||||||
Other comprehensive (loss) income | (3,635) | (3,635) | ||||||||||||||
Excess consideration over net assets | $ (744) | (40,683) | $ (744) | (40,683) | ||||||||||||
Contribution of Enviva Port of Wilmington, LLC Drop-Down | $ (2,757) | $ 29,513 | $ (32,270) | |||||||||||||
Enviva Pellets Willgins, LLC dissolution | (2,599) | (2,599) | ||||||||||||||
Net (loss) income | 14,373 | (418) | $ 17,513 | 8,900 | 918 | 8,113 | (3,140) | |||||||||
Balance at the end of the period at Dec. 31, 2017 | 210,369 | (3,040) | (128,569) | $ 224,027 | $ 16,050 | $ 101,901 | 0 | |||||||||
Balance at the end of the period (in units) at Dec. 31, 2017 | 13,073,000 | 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 | 6,952 | 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 | 14,573,452 | 11,905,138 | 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 | |||||||||||||||
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 | $ (5,822) | (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 | 13,586,375 | 0 | |||||||||||||
Changes in Partners’ Capital | ||||||||||||||||
Cumulative effect of accounting change - derivative instruments | $ 18 | $ (10) | $ (8) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (2,943) | $ 6,952 | $ 14,373 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 51,581 | 40,745 | 40,361 |
MSA Fee Waivers | 22,600 | 0 | 0 |
Amortization of debt issuance costs, debt premium and original issue discounts | 1,243 | 1,093 | 1,448 |
General and administrative expense incurred by the Hamlet JV prior to Enviva Port of Wilmington, LLC and Enviva Pellets Sampson, LLC Drop-Downs | 0 | 0 | 1,343 |
Early retirement of debt obligation | 9,042 | 751 | 0 |
Loss on disposal of assets and assets held for sale | 3,103 | 2,386 | 5,726 |
Unit-based compensation | 5,410 | 6,229 | 5,014 |
De-designation of foreign currency forwards and options | 0 | (1,947) | 1,593 |
Unrealized loss on foreign currency transactions, net | 3,701 | (7,464) | 0 |
Fair value changes in derivatives | 177 | 23 | (3) |
Change in operating assets and liabilities: | |||
Accounts and insurance receivables | (16,330) | 19,230 | (1,317) |
Related-party receivables | 1,392 | 2,720 | 1,577 |
Prepaid expenses, assets held for sale and other current and long-term assets | (358) | (182) | (138) |
Inventories | (1,889) | (7,843) | 5,758 |
Derivatives | 1,770 | 4,907 | (1,720) |
Accounts payable, accrued liabilities and other current liabilities | 9,287 | 14,916 | (2,331) |
Related-party payables and accrued liabilities | (27,933) | 173 | 15,733 |
Deferred revenue | 3,887 | 0 | 0 |
Accrued interest | (5,148) | 367 | (1,330) |
Operating lease liabilities | (4,826) | 0 | 0 |
Other long-term liabilities | 94 | 997 | 1,008 |
Net cash provided by operating activities | 53,860 | 84,053 | 87,095 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (111,269) | (27,132) | (28,744) |
Payment in relation to the Hamlet Drop-Down | (74,700) | 0 | 0 |
Insurance proceeds from property loss | 0 | 1,130 | 0 |
Proceeds from the sale of property, plant and equipment | 0 | 0 | 143 |
Other | 8,486 | 0 | 0 |
Net cash used in investing activities | (177,483) | (26,002) | (28,601) |
Cash flows from financing activities: | |||
Proceeds from senior secured revolving credit facility | 453,000 | 299,250 | 131,952 |
Principal payments on senior secured revolving credit facility | (526,000) | (226,250) | (81,000) |
Principal payments on other long-term debt and finance lease obligations | (358,311) | (46,466) | (1,954) |
Cash paid related to debt issuance costs and deferred offering costs | (7,560) | (2,495) | (735) |
Distributions, proceeds from contributions and contributions associated with Enviva Pellets Sampson, LLC and Enviva Port of Wilmington, LLC Drop-Downs from our sponsor and Hamlet JV | 0 | 0 | (44,312) |
Proceeds from common unit issuances, net | 96,822 | 241 | 1,938 |
Payment of deferred consideration for Wilmington Drop-Down | (24,300) | 0 | 0 |
Distributions to unitholders, distribution equivalent rights and incentive distribution rights holder | (95,659) | (73,518) | (64,325) |
Proceeds from debt issuance | 601,777 | 0 | 0 |
Payment to General Partner to purchase affiliate common units for Long-Term Incentive Plan vesting | 0 | (2,341) | 0 |
Payment for withholding tax associated with Long-Term Incentive Plan vesting | (1,910) | (4,536) | 0 |
Payments in relation to the Hamlet JV Drop-Down | (99) | 0 | 0 |
Cash paid for redemption premium from early retirement of debt | (7,544) | 0 | 0 |
Net cash provided by (used in) financing activities | 130,216 | (56,115) | (58,436) |
Net increase in cash, cash equivalents and restricted cash | 6,593 | 1,936 | 58 |
Cash, cash equivalents and restricted cash, beginning of period | 2,460 | 524 | 466 |
Cash, cash equivalents and restricted cash, end of period | 9,053 | 2,460 | 524 |
Non-cash investing and financing activities: | |||
Property, plant and equipment acquired included in accounts payable and accrued liabilities | 3,421 | 8,939 | 2,653 |
Property, plant and equipment acquired under finance leases | 6,493 | 3,512 | 1,956 |
Property, plant and equipment transferred from inventories | 0 | 2 | 226 |
Property, plant and equipment capitalized interest | 2,104 | 158 | 0 |
Deferred consideration to sponsor included in related-party payable | 40,000 | 0 | 74,000 |
Retained matters from the Hamlet JV included in related-party receivables | 0 | 0 | 585 |
Distributions included in liabilities | 2,180 | 1,659 | 741 |
Conversion of subordinated units to common units | 0 | 78,504 | 0 |
Application of short-term deposit to fixed assets | 0 | 0 | 258 |
Transfer of Enviva Port of Wilmington, LLC Drop-Down consideration to short-term | 0 | 74,000 | 0 |
Debt issuance costs included in accrued liabilities | 779 | 103 | 0 |
Depreciation capitalized to inventories | 186 | 567 | (427) |
Supplemental information: | |||
Interest paid, net of capitalized interest | 41,190 | 35,222 | 31,513 |
Enviva Wilmington Holdings LLC | |||
Non-cash investing and financing activities: | |||
Common unit issuance for Drop-Downs | 49,700 | 0 | 0 |
Hamlet JV | |||
Non-cash investing and financing activities: | |||
Common unit issuance for Drop-Downs | $ 50,000 | $ 0 | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
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.”), Europe and increasingly Japan. We own and operate seven industrial-scale wood pellet production plants located in the Mid-Atlantic and Gulf Coast regions of the United States. In addition to the volumes from our plants, we also procure wood pellets from third parties and Enviva Pellets Greenwood, LLC (“Greenwood”), which was acquired by the Sponsor JV in the first quarter of 2018. Greenwood owns a wood pellet production plant in Greenwood, South Carolina (the “Greenwood plant”). 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 and Panama City, Florida, under a short-term and a long-term contract, respectively. Basis of Presentation Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Our consolidated financial statements include all accounts of the Partnership and its wholly owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated. We operate and manage our business as one operating segment. We entered into an agreement with our sponsor effective as of September 30, 2019 pursuant to which the parties agreed to the right of set off of related-party receivables and payables; consequently, we intend to set off related-party receivables and payables, which are reflected net in related-party receivables or payables, in accordance with the agreement. As of December 31, 2018, related-party accounts receivable and accounts payable were not intended to be set off and were reflected separately in current assets and current liabilities. Reclassification Certain amounts have been reclassified from proceeds and payments on revolving credit commitments, net, to proceeds from senior secured revolving credit facility and payments on senior secured revolving credit facility to conform to current period presentation on the consolidated statements of cash flows. Enviva Wilmington Holdings, LLC In April 2019, we acquired 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 (together with its affiliates, as applicable, “John Hancock”). As of April 2, 2019, 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 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 metric tons per year (“MTPY”) of wood pellets, following a ramp period. On the date of our acquisition of our sponsor’s Class B Units in the Hamlet JV (collectively, the “Hamlet Drop-Down”): • We commenced an associated terminal services agreement to handle contracted volumes from the Hamlet plant. • We entered into an agreement with our sponsor, pursuant to which (1) our sponsor will guarantee certain cash flows from the Hamlet plant until June 30, 2020, (2) our sponsor will reimburse us for construction cost overruns in excess of budgeted capital expenditures for the Hamlet plant, subject to certain exceptions, (3) we will 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 will retain liability for certain claims payable, if any, by the Hamlet JV (the “Make-Whole Agreement”). • The Hamlet JV 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”), to waive the obligation to pay an aggregate of approximately $ 2.7 million of management fees payable to Enviva Management under the management services agreement (the “Hamlet JV MSA”) between the Hamlet JV and Enviva Management with respect to the period from the date of acquisition of the Hamlet plant until July 1, 2020 (the “Hamlet JV MSA Fee Waiver”). Pursuant to the Hamlet JV MSA, Enviva Management provides services to the Hamlet JV, including those necessary or incidental to the operation and management of the Hamlet JV. • We entered into an agreement with Enviva Management to waive our obligation to pay an aggregate of approximately $ 13.0 million in fees payable under our management services agreement with Enviva Management (the “EVA MSA,” and together with the Hamlet JV MSA, the “MSAs”) 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”). • Our sponsor assigned to the Partnership all of its rights and obligations under a credit agreement between the Hamlet JV, as borrower and our sponsor, as lender (the “Hamlet JV Revolver”). On the date of the Hamlet Drop-Down, $ 4.1 million was outstanding from the Hamlet JV to our sponsor. • 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 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 metric ton (“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 will (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 guarantees all obligations of Hamlet Operator under the ISA. Fees paid to Enviva Management through the MSAs are expensed as incurred and, to the extent any amount is associated with the MSAs, the related amount is recorded as an increase to the General Partner in partners’ capital. Amounts under the Make-Whole Agreement are expensed or capitalized and the related amount is recorded as an increase to the General Partner in partners’ capital. The $ 165.0 million purchase price for the Hamlet Drop-Down consisted of (1) a cash payment of $ 24.7 million , net of a purchase price adjustment of $ 0.3 million , (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, (3) $ 50.0 million in cash paid on June 28, 2019, (4) a third and final cash payment of $ 40.0 million paid on January 2, 2020 and (5) the elimination of $ 3.0 million of net related-party receivables and payables included in the net assets of the Hamlet JV on the date of acquisition. We became a member of the Hamlet JV when we acquired the Class B Units on the date of the Hamlet Drop-Down. During the year ended December 31, 2019 , we incurred and expensed $ 1.3 million in acquisition costs to acquire the Hamlet JV which were recognized as general and administrative expenses. We are responsible for managing the activities of the Hamlet JV, including the development, construction and operation of the Hamlet plant and are the primary beneficiary of the Hamlet JV. 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 and we are generally unrestricted in managing the assets and cash flows of the Hamlet JV; however, certain decisions, such as those relating to the issuance and redemption of equity interests in the Hamlet JV, guarantees of indebtedness and fundamental changes, including mergers and acquisitions, asset sales and liquidation and dissolution of the Hamlet JV, require the approval of the members of the Hamlet JV. The Hamlet Drop-Down was an asset acquisition of entities under common control and accounted for on the carryover basis of accounting. Enviva Port of Wilmington, LLC In October 2017, we acquired from the Hamlet JV all of the issued and outstanding limited liability company interests in Enviva Port of Wilmington, LLC (“Wilmington”), which owns the Wilmington terminal. We made an initial payment of $54.6 million , net of an approximate purchase price adjustment of $1.4 million to the Hamlet JV as partial payment of the $ 130.0 million purchase price for the Wilmington terminal in October 2017 (the “Wilmington Drop-Down”). On April 1, 2019, we made a 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 (“Second Payment”). The Wilmington Drop-Down included the Wilmington terminal and a long-term terminal services agreement with our sponsor (the “Holdings TSA”) to handle throughput volumes sourced by our sponsor from the Greenwood plant. See Note 15, Related-Party Transactions . The Wilmington Drop-Down was accounted for as a combination of entities under common control at carryover basis in a manner similar to a pooling of interests. Accordingly, the consolidated financial statements for the periods prior to October 2, 2017, were retrospectively recast to reflect our acquisition of the Hamlet JV’s interests in Wilmington as if it had occurred on May 15, 2013, the date Wilmington was originally organized. Enviva Pellets Wiggins, LLC In 2016, we held a controlling interest in Enviva Pellets Wiggins, LLC (“Wiggins”), which owned a wood pellet plant in Stone County, Mississippi (the “Wiggins plant”). In December 2017, we sold the Wiggins plant to a third-party buyer for a purchase price of $ 0.4 million and recorded a loss on the sale of $ 0.8 million , net, upon deconsolidation, consisting of a loss on the sale of $ 3.4 million and a $ 2.6 million gain upon deconsolidation, which is included in general and administrative expenses on the consolidated statements of operations. In December 2017, Wiggins was dissolved. Subsidiaries As of December 31, 2019 , the Partnership has 100% ownership of the following: • Enviva Partners Finance Corp. (“Enviva Finance Corp.”), a wholly owned subsidiary of the Partnership formed on October 3, 2016 for the purpose of being a co-issuer of some of the Partnership’s indebtedness • Enviva GP, LLC The Partnership has 99.999% ownership of Enviva, LP Enviva GP, LLC has 0.001% ownership of Enviva, LP Enviva, LP has 100% ownership of the following: • Enviva Pellets Amory, LLC (“Amory”) • Enviva Pellets Ahoskie, LLC • Enviva Port of Chesapeake, LLC • Enviva Pellets Northampton, LLC • Enviva Pellets Southampton, LLC (“Southampton”) • Enviva Pellets Cottondale, LLC (“Cottondale”) • Enviva Energy Services, LLC • Enviva Pellets Sampson, LLC (“Sampson”) • Enviva Port of Wilmington, LLC (“Wilmington”) • Enviva Port of Panama City, LLC • Enviva MLP International Holdings, LLC Enviva, LP has 99.99% ownership of the following: • Enviva Energy Services Coöperatief, U.A. Enviva MLP International Holdings has 100% ownership of the following: • Enviva Energy Services (Jersey), Limited Enviva MLP International Holdings has 0.01% ownership of the following: • Enviva Energy Services Coöperatief, U.A. Enviva, LP has 100% ownership of the Class B Units of Enviva Wilmington Holdings, LLC (the “Hamlet JV”) John Hancock Life Insurance Company (U.S.A.) and certain of its affiliates has 100% ownership of the Class A Units of the Hamlet JV Enviva Wilmington Holdings, LLC has 100% ownership of the Hamlet plant |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Common Control Transactions Assets and businesses acquired from our sponsor and its controlled subsidiaries are accounted for as common control transactions. 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 to the extent that such transactions require prior periods to be recast, historical net equity amounts prior to the transaction date are attributed to the General Partner and any noncontrolling partner interest at the historical amount. 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 and billable under our contracts and are recorded at the invoiced amount pending finalization of prerequisite billing documentation and do not bear interest. As of December 31, 2019 and 2018 , we had no amounts in allowance for doubtful accounts given the lack of historical losses. Inventories Inventories consist of raw materials, work-in-progress, consumable tooling and finished goods. Fixed production overhead, including related depreciation expense, is allocated to inventory based on the normal production capacity of the facilities. To the extent we do not achieve normal production levels, we charge such under-absorption of fixed overhead to cost of goods sold in the period incurred. Consumable tooling consists of spare parts and tooling to be consumed in the production process. Spare parts are expected to be used within a year and are expensed as used. Tooling items are amortized to expense over an estimated service life generally less than one year. Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method (“FIFO”) for all inventories, which requires the use of judgment and estimates. Raw material, production and distribution costs associated with delivering wood pellets to marine terminals and third- and related-party wood pellet purchase costs are capitalized as a component of inventory. Fixed production overhead, including the related depreciation expense, is allocated to inventory based on the normal capacity of our production plants. These costs are reflected in cost of goods sold when inventory is sold. Revenue Recognition We primarily earn revenue by supplying wood pellets to customers under off-take contracts, the majority of the commitments under which are long-term in nature. 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 fixed for the entire term and are subject to adjustments which may include annual inflation-based adjustments or price escalators, price adjustments for product specifications, as well as, in some instances, price adjustments due to changes in underlying indices. In addition to sales of our product under these long-term, off-take contracts, we routinely sell wood pellets under shorter-term contracts, which range in volume and tenor and, in some cases, may include only one specific shipment. Because each of our off-take contracts is a bilaterally negotiated agreement, our revenue over the duration of such contracts does not generally follow observable current market pricing trends. Our performance obligations under these contracts 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 in back-to-back transactions (“purchase and sale transactions”). We recognize revenue on a gross basis in product sales when we determine that we act as a principal by having control of the wood pellets before they are transferred to the customer. Indicators of control have included being primarily responsible for fulfilling the promise to provide the wood pellets (such as by contracting to sell wood pellets before contracting to buy them), having inventory risk, or having discretion in establishing the sales price for the wood pellets. The decision as to whether to recognize revenue on a gross or net basis requires significant judgment. In instances in which a customer requests the cancellation, deferral or acceleration of a shipment, the customer may pay a fee, which is included in other revenue. 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 performed. Any deficiency payments receivable and probable of being collected from a customer not meeting quarterly minimum throughput requirements are recognized during the related quarter in satisfaction of the related performance obligation. Variable consideration from off-take contracts arises from several pricing features outlined in our off-take contracts, pursuant to which such contract pricing may be adjusted in respect of particular shipments to reflect differences between certain contractual quality specifications of the wood pellets as measured both when the wood pellets are loaded onto ships and unloaded at the discharge port as well as certain other contractual adjustments. Variable consideration from terminal services contracts arises from price increases based on agreed inflation indices and from above-minimum throughput quantities or services. We allocate variable consideration under our off-take and terminal services contracts entirely to each performance obligation to which variable consideration relates. The estimate of variable consideration represents the amount that is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Under our off-take contracts, customers are obligated to pay the majority of the purchase price prior to the arrival of the ship at the customers’ discharge port. The remaining portion is paid after the wood pellets are unloaded at the discharge port. We generally recognize revenue prior to the issuance of an invoice to the customer. Cost of Goods Sold Cost of goods sold includes the cost to produce and deliver wood pellets to customers, reimbursable shipping-related costs associated with specific off-take contracts with CIF and CFR shipping terms and costs associated with purchase and sale transactions. Distribution costs associated with shipping wood pellets to customers 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 amounts 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. Derivative Instruments On and as of January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities as issued by the Financial Accounting Standards Board (“FASB”). Upon adoption of ASU 2017-12 on January 1, 2019, we no longer measure and recognize ineffectiveness related to designated and qualifying cash flow hedges in earnings; as a result, any ineffectiveness is now included in accumulated other comprehensive income. See Recently Adopted Accounting Standards—Derivative Instruments below. Prior to adoption, we measured and recognized any ineffectiveness in earnings. Derivative instruments are classified as either assets or liabilities on a gross basis and carried at fair value and included in prepaid expenses and other current assets, other long-term assets, accrued and other current liabilities and other long-term liabilities on the consolidated balance sheets. Changes in fair value are either recognized as unrealized gains and losses in accumulated other comprehensive income in partners’ capital or earnings depending on the nature of the underlying exposure, whether or not the derivative is formally designated as a hedge. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. As of December 31, 2019 and 2018, we only apply hedge accounting treatment to interest rate swaps. The effective portion of foreign currency forward and option contracts designated as cash flow hedges was reported as a component of accumulated other comprehensive income in partners’ capital and reclassified into revenue in the same period or periods during which the hedged revenue affected earnings. During August 2018, we discontinued hedge accounting for all designated foreign currency cash flow hedges. The interest rate swaps designated as cash flow hedges is reported as a component of accumulated other comprehensive income in partners’ capital and reclassified into interest expense in the same period or periods during which the hedged interest expense affects earnings. We link interest rate swap derivative instruments designated as a hedge using the first payment technique to link the forecasted transaction which is the first London Inter-bank Offered Rate (“LIBOR”)-based payments on any borrowing. To qualify for hedge accounting, the item to be hedged must cause an exposure risk and we must have an expectation that the related hedging instrument will be effective at reducing or mitigating that exposure. In accordance with the hedging requirements, we document all hedging relationships at inception and include a description of the risk management objective and strategy for undertaking the hedge, identification of the hedging instrument, the hedged item, the nature of the risk being hedged, the method for assessing effectiveness of the hedging instrument in offsetting the hedged risk and the method of measuring any ineffectiveness. When an event or transaction occurs or the derivative contract expires or the forecasted transaction is no longer probable of occurring, hedge accounting is discontinued. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments are highly effective in offsetting changes in cash flows of hedged items. If it is determined that a derivative instrument has ceased to be a highly effective hedge, hedge accounting is discontinued prospectively. Hedge effectiveness for foreign exchange forward contracts designated as cash flow hedges was assessed by comparing the change in the fair value of the hedge contract with the change in the fair value of the forecasted cash flows of the hedged item. For foreign exchange option contracts, hedge effectiveness was assessed based on the hedging instrument’s entire change in fair value. Hedge effectiveness for interest rate swaps is assessed by comparing the change in fair value of the swap with the change in the fair value of the hedged item due to changes in the benchmark interest rate. Derivative instruments that do not qualify, or no longer qualify, as hedges are adjusted to fair value through earnings in the current period. Property, Plant and Equipment Property, plant and equipment are recorded at cost, which includes the fair values of assets acquired. Equipment under 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 years ended December 31, 2019 and 2018 . 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 to 28 years, some of which include options to extend the leases by up to 5 years. Our leases are generally noncancelable. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold 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. 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, and the current portion of long-term debt and finance lease obligations and long-term debt and finance lease obligations are included in 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, 2019 and 2018 , 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 year ended December 31, 2019, we performed a quantitative assessment using the market approach and determined the fair value of the reporting unit exceeded its carrying amount. The fair value was determined based on our market capitalization, which is considered a Level 1 Input. For the year ended December 31, 2018, we performed a qualitative assessment and determined it was more likely than not that the estimated fair value of the reporting unit substantially exceeded the related carrying value of our reporting unit. There have been no impairments to the carrying value of the Partnership’s goodwill during the periods presented (see Note 12, Goodwill ). 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 that provide services to us and to certain non-employee directors of the General Partner. Phantom unit awards vest subject to the satisfaction of service requirements and/or the achievement of certain performance goals following which common units in the Partnership will be delivered to the holder of the phantom units. For accounting purposes, units granted to employees of our affiliates (excluding the General Partner, the Partnership and subsidiaries of the Partnership) are treated as if they were distributed by the Partnership. Such affiliates recognize compensation expense for the phantom units awarded to their employees, a portion of which is allocated to us under the MSAs (see Note 15, Related-Party Transactions-Management Services Agreement and Note 18, Equity-Based Awards ). We also recognize compensation expense for phantom units awarded to non-employee directors. As of December 31, 2019 our outstanding phantom unit awards under the LTIP did not have a cash option and were classified 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. Recently Adopted Accounting Standards Revenue Recognition As of January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers , which subsequently was issued as Accounting Standards Codification (“ASC”) 606. ASC 606 requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We recognize revenue under ASC 606 and related amendments, which we adopted as of January 1, 2018, using the modified retrospective transition method. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, whereas prior comparative reporting periods have not been adjusted and continue to be reported under the accounting standards in effect for such periods. We did not have a transition adjustment as a result of adopting ASC 606. We determined that, upon adoption of ASC 606, revenue derived from our off-take contracts will continue to be classified as product sales. Revenue is recognized when control of the wood pellets passes to the customer which occurs as the wood pellets are loaded onto shipping vessels, which is consistent with the timing of revenue recognition under our legacy accounting policy. However, the adoption of ASC 606 impacted the basis of presentation for purchase and sale transactions. Prior to the adoption of ASC 606, we reported revenue from purchase and sale transactions net of costs paid to third-party suppliers, which was classified as other revenue. Subsequent to the adoption of ASC 606, we recognize revenue on a gross basis in product sales when we determine that we act as a principal and control the wood pellets before they are transferred to the customer. Recoveries from customers for certain costs we incurred at the discharge port under our off-take contracts were reported in product sales prior to the adoption of ASC 606. Under ASC 606, these recoveries are not considered a part of the transaction price, and therefore are excluded from product sales and included as an offset to cost of goods sold. Leases In February 2016, the FASB issued ASU 2016-02, Leases , which established a ROU model that requires lessees to recognize a ROU asset and corresponding lease liability on the balance sheet for all leases with a term of longer than 12 months and classify leases as operating or finance. Operating lease expense is recorded in a single financial statement line item on a straight-line basis over the lease term. We adopted ASU 2016-02 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. We made an accounting policy election to not separate nonlease components from lease components for heavy machinery and equipment. We have a significant contract containing both lease and nonlease components, which are accounted for separately. As this contract has fixed payments, the allocation of lease and nonlease components is based on relative standalone price. The adoption of the new standard as of January 1, 2019 resulted in the recognition of operating lease ROU assets of $ 27.4 million , net of $ 2.1 million of deferred rent liabilities existing as of December 31, 2018, and operating lease liabilities of $ 29.5 million for operating leases related to real estate, machinery and equipment and other operating leases with terms of longer than 12 months. The classification of a lease affects the pattern and classification of expense recognition in the income statement, which is unchanged from under the previous accounting method. The adoption of the new standard did not change our accounting for finance leases (which were described as “capital leases” under the previous standard) or impact our results of operations and cash flows. See Note 9, Leases . Derivative Instruments We adopted ASU 2017-12 on and as of January 1, 2019 using the modified retrospective method, which requires the recognition of the cumulative effect of the change on the opening balance of each affected component of equity in the statement of changes in partner’s capital as of the date of adoption of the new standard. Upon adoption of ASU 2017-12, we no longer measure and recognize ineffectiveness related to designated and qualifying cash flow hedges in earnings; as a result, any ineffectiveness is included in accumulated other comprehensive income. On January 1, 2019, we recorded a nominal cumulative effect adjustment to accumulated other comprehensive income and common units in partners’ capital. See Note 10, Derivative Instruments. Recently Issued Accounting Standards not yet Adopted Currently, there are no recently issued accounting standards not yet adopted by us that we expect to be reasonably likely to materially impact the financial position, results of operations or cash flows of the Partnership. |
Transactions Between Entities U
Transactions Between Entities Under Common Control | 12 Months Ended |
Dec. 31, 2019 | |
Transactions Between Entities Under Common Control | |
Transactions Between Entities Under Common Control | Transactions Between Entities Under Common Control The Hamlet Drop-Down was an asset acquisition of entities under common control and accounted for on the carryover basis of accounting. Accordingly, the consolidated financial statements for the period beginning April 2, 2019 reflect the acquisition. 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, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We disaggregate our revenue into two categories: product sales and other revenue. Other revenue includes fees associated with customer requests to cancel, defer or accelerate shipments in satisfaction of the related performance obligation and third- and related-party terminal services fees. These categories best reflect the nature, amount, timing and uncertainty of our revenue and cash flows. Performance Obligations As of December 31, 2019 , the aggregated amount from off-take contracts with customers allocated to the performance obligations that were unsatisfied or partially satisfied was approximately $9.2 billion . This amount excludes forward prices related to variable consideration including inflation, foreign currency and commodity prices. Also, this amount excludes the effects of the related foreign currency derivative contracts as they do not represent contracts with customers. We expect to recognize approximately 9.0% of our remaining performance obligations as revenue in 2020, an additional 11.4% by 2021 and the balance thereafter. Our off-take contracts expire at various times through 2040 and our terminal services contracts extend into 2026. Variable Consideration Variable consideration from off-take contracts arises from several pricing features in our off-take contracts, pursuant to which such contract pricing may be adjusted in respect of particular shipments to reflect differences between certain contractual quality specifications of the wood pellets as measured both when the wood pellets are loaded onto ships and unloaded at the discharge port as well as certain other contractual adjustments. Variable consideration from terminal services contracts, which was not material for the years ended December 31, 2019 and 2018 , arises from price increases based on agreed inflation indices and from above-minimum throughput quantities or services. We allocate variable consideration under our off-take and terminal services contracts entirely to each performance obligation to which variable consideration relates. The estimate of variable consideration represents the amount that is not more likely than not to be reversed. For the year ended December 31, 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, 2019 and 2018 were $67.7 million and $51.3 million , respectively. Of these amounts, $64.7 million and $46.0 million , as of December 31, 2019 and 2018 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, 2019 and December 31, 2018 , we had $4.1 million and $0.3 million , respectively, for future performance obligations under contracts associated with off-take contracts. |
Significant Risks and Uncertain
Significant Risks and Uncertainties, Including Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
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 and Belgium. Product sales to third-party customers that accounted for 10% or a greater share of consolidated product sales for each of the years ended December 31 are as follows: 2019 2018 2017 Customer A 48% 46% 66% Customer B 10% 11% 12% Customer C 20% 16% 2% Customer D 15% 17% 15% |
Inventory Impairment and Asset
Inventory Impairment and Asset Disposal | 12 Months Ended |
Dec. 31, 2019 | |
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 consisted of the following at December 31 : 2019 2018 Raw materials and work-in-process $ 9,795 $ 4,936 Consumable tooling 20,485 17,561 Finished goods 2,718 8,993 Total inventories $ 32,998 $ 31,490 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventory Impairment and Asset Disposal On February 27, 2018, a fire occurred at the Chesapeake terminal, causing damage to equipment and approximately 43,000 MT of wood pellets (the “Chesapeake Incident”). As part of our risk management process, we maintain certain insurance policies, which are subject to deductibles and sublimits for each covered event. When recovery of all or a portion of property damage loss or other covered expenses through insurance proceeds is probable, a receivable is recorded and the loss or expense is reduced up to the amount of the total loss or expense. No gain or income resulting from business interruption insurance is recorded until all contingencies related to the insurance claim have been resolved. To meet our contractual obligations to our customers, we incurred incremental costs to commission temporary wood pellet storage and handling and ship loading operations (collectively, “business continuity activities”) at nearby locations. The wood pellets from our production plants in the Mid-Atlantic region were delivered to such temporary locations as well as to the Wilmington terminal, which increased our distribution costs. We incurred $ 60.3 million 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 consisted of the following at December 31 : 2019 2018 Raw materials and work-in-process $ 9,795 $ 4,936 Consumable tooling 20,485 17,561 Finished goods 2,718 8,993 Total inventories $ 32,998 $ 31,490 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
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 : 2019 2018 Land $ 15,226 $ 13,492 Land improvements 56,637 44,990 Buildings 217,167 196,574 Machinery and equipment 588,447 434,776 Vehicles 635 635 Furniture and office equipment 6,822 6,148 Leasehold improvements 1,029 987 Property, plant and equipment 885,963 697,602 Less accumulated depreciation (203,695 ) (154,967 ) Property, plant and equipment, net 682,268 542,635 Construction in progress 69,512 14,393 Total property, plant and equipment, net $ 751,780 $ 557,028 At December 31, 2019 and 2018 we had assets under finance leases with a cost and related accumulated depreciation of $14.6 million and $7.2 million and $7.8 million and $3.0 million , respectively. Accrued amounts for property, plant and equipment and construction in progress included in accrued and other current liabilities were $ 9.4 million and $ 6.3 million at December 31, 2019 and 2018 . Total depreciation expense was $51.6 million , $40.6 million and $39.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Total interest capitalized related to construction in progress was $2.1 million and $0.2 million for the years ended December 31, 2019 and 2018 , respectively. We did not capitalize interest to construction in progress during the year ended December 31, 2017. We recorded loss on disposal of assets of $3.1 million , $2.4 million and $4.9 million for the years ended December 31, 2019, 2018 and 2017, respectively, primarily attributable to the disposal of assets replaced in connection with maintenance capital expenditures. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating and finance leases related to real estate, machinery, equipment and other assets where we are the lessee. 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. Leases with an initial term of 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 to 28 years , some of which include options to extend the leases for up to 5 years . Our leases are generally noncancelable. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold 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 at the commencement date. 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, 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. The management services fee charged by Enviva Holdings, LP to us under the EVA MSA includes rent-related amounts for noncancelable operating leases for office space in Maryland and North Carolina held by Enviva Holdings, LP. Operating lease ROU assets and liabilities and finance leases were as follows as of December 31, 2019 : Operating leases: Operating lease right-of-use assets $ 32,830 Current portion of operating lease liabilities $ 1,439 Long-term operating lease liabilities 33,469 Total operating lease liabilities $ 34,908 Finance leases: Property plant and equipment, net $ 7,398 Current portion of long-term finance lease obligations $ 4,584 Long-term finance lease obligations 2,954 Total finance lease liabilities $ 7,538 Operating and finance lease costs were as follows for the year ended December 31, 2019 : Lease Cost Classification 2019 Operating lease cost: Fixed lease cost Cost of goods sold $ 4,814 Variable lease cost Cost of goods sold 16 Short-term lease costs Cost of goods sold 7,309 Total operating lease costs $ 12,139 Finance lease cost: Amortization of leased assets Depreciation and amortization 4,159 Variable lease cost Cost of goods sold 9 Interest on lease liabilities Interest expense 292 Total finance lease costs $ 4,460 Total lease costs $ 16,599 Noncancelable operating lease costs were approximately $ 4.4 million for the year ended December 31, 2018 and insignificant for the year ended December 31, 2017. In February 2015, Wilmington entered into a Deed of 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 -year renewal options and annual base rent of $ 0.2 million that is payable monthly or annually, subject to an annual increase in the producer’s price index for industrial commodities less fuel. No payments are due until September 2021. The total base rent payments over the life of the lease are estimated at $ 4.7 million . In May 2016, the lease was amended to include a minimum annual throughput ton fee, subject to an annual increase in producer’s price index up to 1% . The total estimated minimum annual throughput ton fee is $ 1.9 million for 1.0 million tons annually, where the ultimate fee would increase for throughput above 1.0 million tons annually. Total estimated payments over the life of the lease are approximately $ 71.7 million . Operating lease expense related to the lease and included in noncancelable operating leases was $ 2.3 million for each of the years ended December 31, 2019 and December 31, 2018. Operating and finance lease cash flow information was as follows for the year ended December 31, 2019 : 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,826 Operating cash flows from finance leases 292 Financing cash flows from finance leases 3,304 Assets obtained in exchange for lease obligations: Operating leases $ 7,465 Finance leases 6,493 The future minimum lease payments and the aggregate maturities of operating and finance lease liabilities are as follows as of December 31, 2019 : Years Ending December 31, Operating Finance Total 2020 $ 4,140 $ 4,906 $ 9,046 2021 3,890 2,388 6,278 2022 3,719 332 4,051 2023 3,710 305 4,015 2024 3,581 92 3,673 Thereafter 61,530 — 61,530 Total lease payments 80,570 8,023 88,593 Less: imputed interest (45,662 ) (485 ) (46,147 ) Total present value of lease liabilities $ 34,908 $ 7,538 $ 42,446 The future minimum lease payments as of December 31, 2018 for operating and finance lease liabilities were $ 73.8 million and $ 4.8 million , respectively. 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, 2019 : Weighted average remaining lease term (years): Operating leases 22 Finance leases 2 Weighted average discount rate: Operating leases 8 % Finance leases 6 % |
Leases | Leases We have operating and finance leases related to real estate, machinery, equipment and other assets where we are the lessee. 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. Leases with an initial term of 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 to 28 years , some of which include options to extend the leases for up to 5 years . Our leases are generally noncancelable. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold 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 at the commencement date. 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, 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. The management services fee charged by Enviva Holdings, LP to us under the EVA MSA includes rent-related amounts for noncancelable operating leases for office space in Maryland and North Carolina held by Enviva Holdings, LP. Operating lease ROU assets and liabilities and finance leases were as follows as of December 31, 2019 : Operating leases: Operating lease right-of-use assets $ 32,830 Current portion of operating lease liabilities $ 1,439 Long-term operating lease liabilities 33,469 Total operating lease liabilities $ 34,908 Finance leases: Property plant and equipment, net $ 7,398 Current portion of long-term finance lease obligations $ 4,584 Long-term finance lease obligations 2,954 Total finance lease liabilities $ 7,538 Operating and finance lease costs were as follows for the year ended December 31, 2019 : Lease Cost Classification 2019 Operating lease cost: Fixed lease cost Cost of goods sold $ 4,814 Variable lease cost Cost of goods sold 16 Short-term lease costs Cost of goods sold 7,309 Total operating lease costs $ 12,139 Finance lease cost: Amortization of leased assets Depreciation and amortization 4,159 Variable lease cost Cost of goods sold 9 Interest on lease liabilities Interest expense 292 Total finance lease costs $ 4,460 Total lease costs $ 16,599 Noncancelable operating lease costs were approximately $ 4.4 million for the year ended December 31, 2018 and insignificant for the year ended December 31, 2017. In February 2015, Wilmington entered into a Deed of 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 -year renewal options and annual base rent of $ 0.2 million that is payable monthly or annually, subject to an annual increase in the producer’s price index for industrial commodities less fuel. No payments are due until September 2021. The total base rent payments over the life of the lease are estimated at $ 4.7 million . In May 2016, the lease was amended to include a minimum annual throughput ton fee, subject to an annual increase in producer’s price index up to 1% . The total estimated minimum annual throughput ton fee is $ 1.9 million for 1.0 million tons annually, where the ultimate fee would increase for throughput above 1.0 million tons annually. Total estimated payments over the life of the lease are approximately $ 71.7 million . Operating lease expense related to the lease and included in noncancelable operating leases was $ 2.3 million for each of the years ended December 31, 2019 and December 31, 2018. Operating and finance lease cash flow information was as follows for the year ended December 31, 2019 : 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,826 Operating cash flows from finance leases 292 Financing cash flows from finance leases 3,304 Assets obtained in exchange for lease obligations: Operating leases $ 7,465 Finance leases 6,493 The future minimum lease payments and the aggregate maturities of operating and finance lease liabilities are as follows as of December 31, 2019 : Years Ending December 31, Operating Finance Total 2020 $ 4,140 $ 4,906 $ 9,046 2021 3,890 2,388 6,278 2022 3,719 332 4,051 2023 3,710 305 4,015 2024 3,581 92 3,673 Thereafter 61,530 — 61,530 Total lease payments 80,570 8,023 88,593 Less: imputed interest (45,662 ) (485 ) (46,147 ) Total present value of lease liabilities $ 34,908 $ 7,538 $ 42,446 The future minimum lease payments as of December 31, 2018 for operating and finance lease liabilities were $ 73.8 million and $ 4.8 million , respectively. 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, 2019 : Weighted average remaining lease term (years): Operating leases 22 Finance leases 2 Weighted average discount rate: Operating leases 8 % Finance leases 6 % |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instrument Detail [Abstract] | |
Derivative Instruments | Derivative Instruments We use derivative instruments to partially offset our business exposure to foreign currency exchange and interest rate risk. We may enter into foreign currency forward and option contracts to offset some of the foreign currency exchange risk on expected future cash flows and interest rate swaps to offset some of the interest rate risk on expected future cash flows on certain borrowings. Our derivative instruments expose us to credit risk to the extent that hedge counterparties may be unable to meet the terms of the applicable derivative instrument. We seek to mitigate such risks by limiting our counterparties to major financial institutions. In addition, we monitor the potential risk of loss with any one counterparty resulting from credit risk. Management does not expect material losses as a result of defaults by counterparties. We use derivative instruments to manage cash flow and do not enter into derivative instruments for speculative or trading purposes. Cash Flow Hedges For qualifying cash flow hedges, the effective portion of the gain or loss on the change in fair value is initially reported as a component of accumulated other comprehensive income in partners’ capital and subsequently reclassified into earnings when the hedged exposure affects earnings. Prior to January 1, 2019 and the adoption of ASU 2017-12 (see Note 2, Significant Accounting Policies ), the ineffective portion of the gain or loss, if any, was reported in earnings in the current period. We considered our cash flow hedges to be highly effective at inception. Changes in fair value for derivative instruments not designated as hedging instruments are recognized in earnings. Foreign Currency Exchange Risk We are primarily exposed to fluctuations in foreign currency exchange rates related to off-take contracts that require future deliveries of wood pellets to be settled in British Pound Sterling (“GBP”) and Euro (“EUR”). We have entered and may continue to enter into foreign currency forward contracts, purchased option contracts or other instruments to partially manage this risk and, prior to August 2018, had designated certain of these instruments as cash flow hedges. 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. As of December 31, 2018, none of our foreign currency derivative instruments were designated as cash flow hedging instruments. In connection with the discontinuation of cash flow hedge accounting, we have recorded the on-going changes in the fair value of foreign currency derivatives as product sales or cost of sales depending on the nature of the item being hedged. During December 2017, we determined that certain transactions were probable of not occurring within the forecasted time period, including the relevant cure period, due to unforeseen circumstances experienced by the customers to which the hedged transactions related. As a result, we discontinued hedge accounting for these transactions and recognized $ 1.6 million of unrealized losses that were reclassified from accumulated other comprehensive income to earnings. Our outstanding foreign currency derivative instruments at December 31, 2019 expire on dates between 2020 and 2024. Interest Rate Risk We are exposed to fluctuations in interest rates on borrowings under our senior secured revolving credit facility. We have entered into a pay-fixed, receive-variable interest rate swap that expires in April 2020 to hedge interest rate risk associated with our variable rate borrowings under our senior secured revolving credit facilities. The interest rate swap is designated and qualifies as a cash flow hedge. 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, 2019 and 2018 was as follows: Asset (Liability) Balance Sheet Classification 2019 2018 Designated as hedging instruments: Interest rate swap Other current assets $ 56 $ 508 Other long-term assets — 118 Total derivatives designated as hedging instruments $ 56 $ 626 Not designated as hedging instruments: Foreign currency exchange forward contracts: Other current assets $ 277 $ 794 Other long-term assets 331 1,810 Other current liabilities (735 ) (68 ) Other long-term liabilities (1,055 ) (179 ) Foreign currency purchased option contracts: Other current assets 131 22 Other long-term assets 1,443 3,348 Total derivatives not designated as hedging instruments $ 392 $ 5,727 Net unrealized losses related to the change of fair market value of derivative instruments not designated as hedging instruments were $4.6 million during the year ended December 31, 2019 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 is 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. Net unrealized gains included in other income (expense) related to the change of fair market value of derivative instruments not designated as hedging instruments during the year ended December 31, 2017 were $ 0.2 million . Realized gains related to derivatives settled were $1.7 million and $4.6 million , respectively, during the years ended December 31, 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 (Loss) in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Interest rate swap (146 ) Interest expense 288 The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive income and the gains and losses recognized in earnings for the year ended December 31, 2018 were as follows: Amount of Gain Location of Amount of Location of Gain Amount of Gain Foreign currency exchange forward contracts $ 4,532 Product sales $ — Product sales $ 2,413 Foreign currency exchange purchased option contracts 749 Product sales — Product sales (470 ) Interest rate swap 374 Interest expense 231 Interest expense (13 ) We enter into master netting arrangements designed to permit net settlement of derivative transactions among the respective counterparties. If we had settled all transactions with our respective counterparties at December 31, 2019 , we would have received a net settlement termination payment of $0.4 million , which differs insignificantly from the recorded fair value of the derivatives. We present our derivative assets and liabilities at their gross fair values. The notional amounts of outstanding derivative instruments associated with outstanding or unsettled derivative instruments as of December 31, 2019 and 2018 were as follows: 2019 2018 Foreign exchange forward contracts in GBP £ 50,575 £ 42,170 Foreign exchange purchased option contracts in GBP £ 43,415 £ 39,365 Foreign exchange forward contracts in EUR € — € 14,300 Foreign exchange purchased option contracts in EUR € 1,200 € 1,675 Interest rate swap $ 34,354 $ 39,829 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The amounts reported in the consolidated balance sheets as cash and cash equivalents, accounts receivable, related-party receivables, prepaid expenses and other current assets, accounts payable, related-party payables, deferred consideration due to related-party and accrued and other current liabilities approximate fair value because of the short-term nature of these instruments. Derivative instruments and long-term debt and finance lease obligations including the current portion are classified as Level 2 instruments. The fair value of our senior notes (see Note 14, Long-Term Debt and Finance Lease Obligations ) was determined based on observable market prices in a less active market and was categorized as Level 2 in the fair value hierarchy. The fair value of other long-term debt and finance lease obligations classified as Level 2 was determined based on the usage of market prices not quoted on active markets and other observable market data. The fair value of the long-term debt and finance lease obligations are based upon rates currently available for debt and finance lease obligations with similar terms and remaining maturities. The carrying amount of derivative instruments approximates fair value. The carrying amount and estimated fair value of long-term debt and finance lease obligations as of December 31, 2019 and 2018 was as follows: December 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value 2026 Notes $ 593,476 $ 644,250 $ — $ — 2021 Notes (1) — — 352,843 359,943 Other long-term debt and finance lease obligations 9,544 9,544 79,812 79,812 Total long-term debt and finance lease obligations $ 603,020 $ 653,794 $ 432,655 $ 439,755 (1) Notes were redeemed in December 2019 from proceeds from the issuance of the 2026 Notes. For more information, see Note 14, Long-Term Debt and Finance Lease Obligations. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill includes $80.7 million associated with the acquisition of Cottondale by our sponsor and its contribution to us in 2015 and $4.9 million from acquisitions in 2010. |
Assets Held for Sale and Dissol
Assets Held for Sale and Dissolution | 12 Months Ended |
Dec. 31, 2019 | |
Assets Held-for-sale, Not Part of Disposal Group, Current [Abstract] | |
Assets Held for Sale and Dissolution | Assets Held for Sale and Dissolution In December 2017, we sold the Wiggins plant to a third-party buyer for a purchase price of $0.4 million and recorded a loss on the sale of $0.8 million , net, upon deconsolidation, consisting of a loss on the sale of $3.4 million and a $2.6 million gain upon deconsolidation, which is included in general and administrative expenses on the consolidated statements of operations. In December 2017, Wiggins was dissolved. |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
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 : 2019 2018 2026 Notes, net of unamortized discount, premium and debt issuance of $6.5 million as of December 31, 2019 $ 593,476 $ — 2021 Notes, net of unamortized discount, premium and debt issuance of $2.2 million as of December 31, 2018 — 352,843 Senior secured revolving credit facility — 73,000 Other loans 2,006 2,015 Finance leases 7,538 4,797 Total long-term debt and finance lease obligations 603,020 432,655 Less current portion of long-term debt and finance lease obligations (6,590 ) (2,722 ) Long-term debt and finance lease obligations, excluding current installments $ 596,430 $ 429,933 2026 Notes On December 9 and December 12, 2019, Enviva Partners, LP, with its wholly owned subsidiary Enviva Partners Finance Corp., issued $ 550.0 million and $ 50.0 million , respectively, in aggregate principal amount of 6.5% senior unsecured notes due January 15, 2026 in private placements under Rule 144A and Regulation S of the Securities Act of 1933, as amended, for a total combined aggregate principal amount outstanding of $ 600.0 million . 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. Interest payments are due semi-annually in arrears on January 15 and July 15 of each year, commencing July 15, 2020. We recorded $ 6.6 million of debt issuance costs. original issue discount and 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. 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 as of December 31, 2019 . 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 On December 9, 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 upon 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. As of December 31, 2019 and 2018 , amounts paid were not material. At December 31, 2019 , we had no revolving borrowings under our senior secured revolving credit facility. At December 31, 2018, we had $ 73.0 million in revolving borrowings under our senior secured revolving credit facility. 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, 2019 and 2018 , 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. Debt Issuance Costs and Original Issue Discounts and Premium Unamortized debt issuance costs, original issue discounts and premium included in long-term debt at December 31, 2019 and 2018 were $6.5 million and $2.2 million , respectively. Unamortized debt issuance costs associated with the revolving credit facility included in long-term assets was $2.0 million and $2.5 million at December 31, 2019 and 2018 , respectively. Amortization expense included in interest expense for the years ended December 31, 2019 , 2018 and 2017 was $1.2 million , $1.1 million and $1.4 million , respectively. Debt Maturities Our long-term debt matures in 2026 and our finance lease obligations have maturity dates of between 2020 and 2024. The aggregate maturities of long-term debt and finance lease obligations as of December 31, 2019 are as follows: Year Ending December 31: 2020 $ 6,590 2021 2,278 2022 295 2023 291 2024 and thereafter 600,090 Long-term debt and finance lease obligations 609,544 Unamortized premium 1,735 Unamortized debt issuance costs (8,259 ) Total long-term debt and finance lease obligations $ 603,020 Depreciation expense relating to assets held under finance lease obligations was $4.2 million , $1.8 million and $0.7 million for each of the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Related-party amounts included on the consolidated statements of operations were the following for each of the years ended December 31 : 2019 2018 2017 Other revenue $ 1,789 $ 3,545 $ 5,912 Cost of goods sold 111,491 84,148 69,445 General and administrative expenses 24,492 17,096 15,132 Management Services Agreements Pursuant to the MSAs, Enviva Management provides us with operations, general administrative, management and other services. We are required to reimburse Enviva Management for the amount of all direct or indirect internal or third-party expenses incurred by Enviva Management 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. Under the Hamlet JV MSA, to the extent allocated costs exceed the annual management fee, the additional costs are recorded with an increase to partners’ capital. Related-party amounts included on the consolidated balance sheets and the consolidated statements of operations under our MSAs were as follows: As of December 31, 2019 2018 Finished goods inventory $ 419 $ 1,244 Related-party payables 18,703 19,015 For the Year Ended December 31, 2019 2018 2017 Cost of goods sold $ 63,377 $ 52,280 $ 49,875 General and administrative expenses 24,492 17,096 15,132 During the year ended December 31, 2019 , $ 2.6 million of fees expensed under the Hamlet JV MSA were waived and recorded as an increase to partners’ capital. Hamlet Drop-Down Agreements 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 In connection with the Hamlet Drop-Down, on April 2, 2019, 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, 2019, the outstanding balance of the Hamlet JV Revolver was $ 52.2 million 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 (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. During the year ended December 31, 2018 , no fees were waived under the EVA MSA pursuant to the Second EVA MSA Fee Waiver. Wilmington Drop-Down - Second Payment We completed the Wilmington Drop-Down in October 2017 for total consideration of $130.0 million , subject to certain conditions. 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 (the “Second Payment”). The Second Payment was reflected in deferred consideration for drop-downs due to related-party on the consolidated balance sheets as of December 31, 2018. Related-Party Indemnification In December 2016, we acquired from the Hamlet JV all of the issued and outstanding limited liability company interests in Sampson (the “Sampson Drop-Down”), which owns a wood pellet production plant in Sampson County, North Carolina (the “Sampson plant”). In connection with the Sampson Drop-Down and the Wilmington Drop-Down, the Hamlet JV agreed to indemnify us, our affiliates and our respective officers, directors, managers, counsel, agents and representatives from all costs and losses arising from certain vendor liabilities and claims related to the construction of the Sampson plant and the Wilmington terminal that were included in the net assets we acquired. We recorded a related-party receivable from the Hamlet JV of $6.4 million for reimbursement of indemnifiable amounts related to the Sampson Drop-Down. At December 31, 2018, the related-party receivable associated with such amounts was $ 0.3 million . As of December 31, 2019, any reimbursement of indemnifiable amounts were eliminated upon consolidation. We recorded a related-party receivable from the Hamlet JV of $1.8 million for reimbursement of indemnifiable amounts related to the Wilmington Drop-Down. As of December 31, 2019, no further amounts are outstanding. At December 31, 2018, the related-party receivable associated with such amounts was insignificant. Sampson Construction Payments Pursuant to payment agreements between us and the Hamlet JV, the Hamlet JV agreed to pay an aggregate amount of $2.9 million to us in consideration for costs incurred by us to repair or replace certain equipment at the Sampson plant following the consummation of the Sampson Drop-Down. As of December 31, 2018, $2.9 million was received and no further amounts are outstanding. Greenwood Contract In February 2018, we entered into a contract with Greenwood to purchase wood pellets produced by the Greenwood plant through March 2022 (the “Greenwood Contract”) and have a take-or-pay obligation with respect to 550,000 MTPY of wood pellets from July 2019 through March 2022. 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 and made subject to Greenwood’s option to increase or decrease the volume by 10% each contract year. During the years ended December 31, 2019 and 2018 , we purchased $46.2 million and $27.4 million of wood pellets from Greenwood and recorded a cost of cover deficiency fee of approximately $5.0 million and $0.7 million as Greenwood was unable to satisfy certain commitments. We did not purchase wood pellets from Greenwood during the year ended December 31, 2017 . 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, 2019 and 2018 , $1.3 million and $7.9 million , respectively, is included in related-party payables related to our wood pellet purchases from Greenwood. Holdings TSA The Wilmington Drop-Down included the Holdings TSA, pursuant to which 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. The Holdings TSA remains in effect until September 1, 2026. During the year ended December 31, 2019 , there was no terminal services revenue from our sponsor. During the years ended December 31, 2018 and 2017 , we recorded $0.8 million and $2.8 million , respectively, as terminal services revenue from our sponsor, which is included in other revenue. In February 2018, our sponsor amended and assigned the Holdings TSA to Greenwood. Deficiency payments are due to Wilmington if quarterly minimum throughput requirements are not met. During the years ended December 31, 2019 and 2018 , we recorded $1.8 million and $2.2 million , respectively, of deficiency fees from Greenwood, which is included in other revenue. We did no t have any deficiency fees from Greenwood for the year ended December 31, 2017 . In September 2018, Hurricane Florence impacted the rail line on which wood pellets are typically transported from the Greenwood plant to the Wilmington terminal. As a result, Greenwood was unable to satisfy certain commitments under the Holdings TSA and the Greenwood Contract and agreed to pay $1.8 million to us as deficiency fees in consideration of these commitments. Consideration of $0.5 million related to the Holdings TSA was included in other revenue and $1.3 million related to the Greenwood contract was included as a reduction of cost of goods sold during the year ended December 31, 2018. Enviva FiberCo, LLC We purchase raw materials from Enviva FiberCo, LLC, a wholly owned subsidiary of our sponsor (“FiberCo”). During the year ended December 31, 2019 , cost of cover deficiency fees net of raw material purchases was $ 0.5 million . During 2018 and 2017 raw material purchases were $7.1 million and $8.5 million , respectively. There were no cost of cover deficiency fees from FiberCo recorded during the years ended December 31, 2018 and 2017. Biomass Purchase Agreement - Hamlet JV In September 2016, Sampson entered into a confirmation under a master biomass purchase and sale agreement between us and the Hamlet JV pursuant to which Sampson agreed to sell to our sponsor 60,000 MT of wood pellets through August 31, 2017. On June 23, 2017, our sponsor satisfied its take-or-pay obligation under the agreement with a $ 2.7 million payment to us, which is included in other revenue. Biomass Option Agreement – Enviva Holdings, LP In February 2017, Enviva, LP entered into an agreement and a confirmation thereunder with our sponsor (together, as amended, the “Option Contract” During the years ended December 31, 2018 and 2017 , Enviva, LP purchased $1.7 million and $11.1 million , respectively, of wood pellets from our sponsor. The Option Contract terminated in accordance with its terms in March 2018. Long-Term Incentive Plan Vesting During the year ended December 31, 2018 , we paid $6.9 million to the General Partner for the purchase of common units from our sponsor, and the satisfaction of related tax withholding obligations of the Provider for which we are responsible under the MSA, in connection with the vesting and settlement of performance-based phantom unit awards granted under the LTIP. During the year ended December 31, 2019 , no common units were purchased from our sponsor in connection with the vesting and settlement of performance-based phantom unit awards granted under the LTIP. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Partnership and its operating subsidiaries are organized as limited partnerships and entities that are disregarded entities for federal and state income tax purposes. As a result, we are not subject to U.S. federal and most state income taxes. The partners and unitholders of the Partnership are liable for these income taxes on their share of our taxable income. Some states impose franchise and capital taxes on the Partnership. Such taxes are not material to the consolidated financial statements and have been included in other income (expense) as incurred. For calendar year 2019 , the only periods subject to examination for federal and state income tax returns are 2016 through 2018. We believe our income tax filing positions, including our status as a pass-through entity, would be sustained on audit and we do not anticipate any adjustments that would result in a material change to our consolidated balance sheet. Therefore, no reserves for uncertain tax positions, nor interest and penalties, have been recorded. For the years ended December 31, 2019 , 2018 and 2017 , no provision for federal or state income taxes has been recorded in the consolidated financial statements. Our consolidated financial statements include Enviva Finance Corp., which is a wholly owned C-corporation that was formed for the purpose of being the co-issuer of our senior unsecured notes. There were no activities generated by Enviva Finance Corp. during 2019 and 2018 ; as a result, no provision for federal or state income taxes has been recorded in the consolidated financial statements. |
Partners' Capital
Partners' Capital | 12 Months Ended |
Dec. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital | Partners’ Capital Common and Subordinated Units - Sponsor In January 2018, our sponsor sold to the General Partner 81,708 common units, which were used to satisfy our obligation to settle vested performance-based phantom unit awards granted under the LTIP. On May 9, 2018, 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. Common Units - Issuance During 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. 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. At-the-Market Offering Program Pursuant to an equity distribution agreement dated August 8, 2016, we may offer and sell common units from time to time through a group of managers, subject to the terms and conditions set forth in such agreement, of up to an aggregate sales amount of $100.0 million (the “ATM Program”). During the year ended December 31, 2019 , we did not sell common units under the ATM Program. During the year ended December 31, 2018, we sold 8,408 common units under the ATM Program for net proceeds of $0.2 million , net of an insignificant amount of commissions. We had no accounting or other fees associated with the ATM Program during the year ended December 31, 2018. Net proceeds from sales under the ATM Program were used for general partnership purposes. Allocations of Net Income (Loss) The Partnership’s partnership agreement contains provisions for the allocation of net income and loss to the unitholders of the Partnership and the General Partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners 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. Incentive Distribution Rights Incentive distribution rights (“IDRs”) represent the right to receive increasing percentages (from 15.0% to 50.0% ) of quarterly distributions from operating surplus after distributions in amounts exceeding specified target distribution levels have been achieved by the Partnership. The General Partner currently holds the IDRs but may transfer these rights at any time. 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 Date Record Date Payment Date Distribution Per Unit Total Cash Distribution Total Payment to General Partner for Incentive Distribution Rights June 30, 2018 August 1, 2018 August 15, 2018 August 29, 2018 $ 0.6300 $ 16.7 $ 1.4 September 30, 2018 October 31, 2018 November 15, 2018 November 29, 2018 $ 0.6350 $ 16.8 $ 1.5 December 31, 2018 January 29, 2019 February 15, 2019 February 28, 2019 $ 0.6400 $ 17.0 $ 1.7 March 31, 2019 May 2, 2019 May 20, 2019 May 29, 2019 $ 0.6450 $ 21.6 $ 2.3 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 For purposes of calculating our earnings per unit under the two-class method, common units are treated as participating preferred units, and the subordinated units were treated as the residual equity interest, or common equity. IDRs are treated as participating securities. Distributions made in future periods based on the current period calculation of cash available for distribution are allocated to each class of equity that will receive the distribution. Any unpaid cumulative distributions are allocated to the appropriate class of equity. We determine the amount of cash available for distribution for each quarter in accordance with our partnership agreement. The amount to be distributed to unitholders and IDR holders is based on the distribution waterfall set forth in our partnership agreement. Net earnings for the quarter are allocated to each class of partnership interest based on the distributions to be made. On May 30, 2018, the subordination period ended in accordance with our partnership agreement and all of our subordinated units converted into common units on a one -for-one basis (see Note 19, Net Income (Loss) per Limited Partner Unit ). Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses and gains and losses that pursuant to GAAP are included in comprehensive income (loss) but excluded from net income (loss). The following table presents the changes in accumulated other comprehensive income: Balance at December 31, 2017 $ (3,040 ) Net unrealized gains on cash flow hedges 5,655 Reclassification of net gains on cash flow hedges realized into net income (2,178 ) Currency translation adjustment 2 Accumulated other comprehensive income at December 31, 2018 439 Net unrealized losses on cash flow hedges (146 ) Reclassification of net gains on cash flow hedges realized into net loss (288 ) Cumulative effect of accounting change - derivative instruments 18 Accumulated other comprehensive income at December 31, 2019 $ 23 Noncontrolling Interests—Enviva Pellets Wiggins, LLC Prior to December 2017, we held a 67% controlling interest in Wiggins. In December 2017, we sold the Wiggins plant to a third-party buyer for a purchase price of $0.4 million and recorded a loss on the sale of $0.8 million , net, which is included in general and administrative expenses. In December 2017, Wiggins was dissolved. Upon dissolution, no amounts were distributed to the non-controlling interest holders and all intercompany balances were forgiven (see Note 13, Assets Held for Sale and Dissolution ). 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, 2019 , 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, 2019 , 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 borrowings, 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. 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. The Partnership has not received repayment of revolving borrowings from the Hamlet JV pursuant to the Hamlet JV Revolver or its capital contributions and preference amount as of December 31, 2019 ; as a result, none of the net loss of the Hamlet JV has 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 was acquired by 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 year ended December 31, 2017 included net losses of $3.1 million attributable to the non-controlling interests in Wilmington. We had no non-controlling interests in Wilmington for the years ended December 31, 2019 and 2018 . |
Equity-Based Awards
Equity-Based Awards | 12 Months Ended |
Dec. 31, 2019 | |
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 2,450,000 common units in accordance with the first amendment to the LTIP, which became effective on January 29, 2020. 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 2019 , 2018 and 2017 , the board of directors of the General Partner granted phantom units in tandem with corresponding DERs to employees of Enviva Management who provide services to us (the “Affiliate Grants”) and phantom units in tandem with corresponding DERs to certain non-employee directors of the General Partner (the “Director Grants”). The phantom units and corresponding DERs are subject to certain vesting and forfeiture provisions. Award recipients do not have all 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 were settled in common units within 60 days after the applicable vesting date. If a phantom unit award recipient experiences a termination of service under certain circumstances set forth in the applicable award agreement, the unvested phantom units and corresponding DERs (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, 2019 , 2018 and 2017 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 ____________________________________________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. Time-based Affiliate Grants vest on the third anniversary of the grant date and performance-based Affiliate Grants vest in three years upon achievement of specific performance milestones. We account for the delivery of common units upon the settlement of vested Affiliate Grants as if such common units were distributed by us. The fair value of the Affiliate Grants granted during 2019 and 2018 was $18.7 million and $16.6 million , 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 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 if the performance goals are considered to be probable of occurring. Enviva Management recognizes unit-based compensation expense for the units awarded and a portion of that expense is allocated to us under the MSA in the same manner as other corporate expenses. Our portion of the unit-based compensation expense is included in general and administrative expenses. We recognized $5.0 million , $4.7 million and $3.4 million of general and administrative expense associated with the Affiliate Grants during the years ended December 31, 2019 , 2018 and 2017 , respectively. During the third quarter of 2019, $0.4 million of unit-based compensation with respect to performance-based Affiliate Grants was reversed as the related performance goals were not met and during the fourth quarter of 2017, $1.6 million of unit-based compensation with respect to performance-based Affiliate Grants was reversed as the related performance goals were not met. As performance goals were met during 2018, no unit-based compensation with respect to performance-based Affiliate Grants expense was adjusted. We paid $ 1.9 million to Enviva Management 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. We paid $2.9 million to Enviva Management to satisfy the withholding tax requirements associated with 181,536 time-based Affiliate Grants and 45,059 performance-based Affiliate Grants that vested under the LTIP during the year ended December 31, 2018. The unrecognized estimated unit-based compensation cost relating to outstanding Affiliate Grants at December 31, 2019 was $ 8.7 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, 2019 , 2018 and 2017, 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 ____________________________________________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. In February 2019, Director Grants valued at $0.4 million were granted and vest on the first anniversary of the grant date in February 2020. In February 2020, the Director Grants that were unvested at December 31, 2019 vested and common units were issued in respect thereof. In addition, 420 common units were granted and issued to non-employee directors of the General Partner as compensation for services performed on the General Partner’s board of directors during the year ended December 31, 2018 and no units were granted during the year ended December 31, 2019. For the years ended December 31, 2019 , 2018 and 2017 we recorded $0.4 million , $0.4 million and $0.5 million , respectively, 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, 2019 is insignificant 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 $2.7 million , $1.8 million and $1.0 million , respectively, for the years ended December 31, 2019 , 2018 and 2017 . At December 31, 2019 and 2018 , $0.6 million and $0.9 million , respectively, of DER distributions unpaid related to time-based Affiliate Grants are included in related-party payables. DER distributions unpaid related to the performance-based Affiliate Grants were as follows as of December 31 : 2019 2018 Accrued liabilities $ 397 $ 419 Other long-term liabilities 1,193 312 Total unpaid DERs $ 1,590 $ 731 |
Net Income (Loss) per Limited P
Net Income (Loss) per Limited Partner Unit | 12 Months Ended |
Dec. 31, 2019 | |
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 (loss) income available per limited partner unit is as follows for the years ended December 31 : 2019 2018 2017 Net (loss) income available to partners $ (5,822 ) $ 6,952 $ 14,373 Less net loss attributable to noncontrolling partners’ interests — — 3,140 Net (loss) income available to Enviva Partners, LP $ (5,822 ) $ 6,952 $ 17,513 Less: Pre-acquisition income from inception to October 1, 2017 from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — (3,049 ) Enviva Partners, LP limited partners’ interest in net (loss) income $ (5,822 ) $ 6,952 $ 20,562 Less: Distributions declared on: Common units $ 88,761 $ 54,604 $ 34,033 Subordinated units through end of subordination period — 12,407 28,096 IDRs 11,439 5,867 3,398 Total distributions declared 100,200 72,878 65,527 Earnings less than distributions $ (106,022 ) $ (65,926 ) $ (44,965 ) Basic and diluted net (loss) income per limited partner unit is as follows: Year Ended December 31, 2019 Common Units General Partner 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 Units General Partner 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 Units Subordinated Units General Partner Weighted-average common units outstanding—basic 21,533 4,893 — Effect of nonvested phantom units 1,020 — — Weighted-average common units outstanding—diluted 22,553 4,893 — Year Ended December 31, 2018 Common Units Subordinated Units General Partner Total Distributions declared $ 54,604 $ 12,407 $ 5,867 $ 72,878 Earnings less than distributions (53,720 ) (12,206 ) — (65,926 ) Net income 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 Year Ended December 31, 2017 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 14,403 11,905 — Effect of nonvested phantom units 948 — — Weighted-average common units outstanding—diluted 15,351 11,905 — Year Ended December 31, 2017 Common Units Subordinated Units General Partner Total Distributions declared $ 34,033 $ 28,096 $ 3,398 $ 65,527 Earnings less than distributions (24,631 ) (20,334 ) — (44,965 ) Net income available to partners $ 9,402 $ 7,762 $ 3,398 $ 20,562 Weighted-average units outstanding—basic 14,403 11,905 Weighted-average units outstanding—diluted 15,351 11,905 Net income per limited partner unit—basic $ 0.65 $ 0.65 Net income per limited partner unit—diluted $ 0.61 $ 0.65 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments We have entered into throughput agreements expiring in 2023 to receive terminal and stevedoring services at certain of our terminals. The agreements specify a minimum cargo throughput requirement at a fixed price per ton or a fixed fee, subject to an adjustment based on the consumer price index or the producer prices index, for a defined period of time, ranging from monthly to annually. At December 31, 2019 , we had approximately $12.2 million related to firm commitments under such terminal and stevedoring services agreements. For the years ended December 31, 2019 , 2018 and 2017 , terminal and stevedoring services expenses were $11.3 million , $9.8 million and $10.6 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 2021 through 2023, we committed to various annual minimum volumes under multi-year fixed-cost contracts with third-party logistics providers for trucking and rail transportation, subject to increases in the consumer price index and certain fuel price adjustments. For the years ended December 31, 2019 , 2018 and 2017 , transportation expenses were $25.5 million , $29.8 million and $23.8 million , respectively. We have entered into long-term supply arrangements, expiring between 2020 through 2024 , to secure the supply of wood pellets from third-party vendors and related parties. The minimum annual purchase volumes are at a fixed price per MT adjusted for volume, pellet quality and certain shipping-related charges. The supply agreements for the purchase of 1,620,000 MT of wood pellets from British Columbia are fully offset by an agreement to sell 1,620,000 MT of wood pellets to the same counterparty from our terminal locations. Under long-term supply arrangements, we purchased approximately $51.6 million , $29.5 million and $3.5 million of wood pellets for the years ended December 31, 2019 , 2018 and 2017 , respectively. Fixed and determinable portions of the minimum aggregate future payments under these firm terminal and stevedoring services, transportation and supply agreements for the next five years are as follows: 2020 $ 220,632 2021 211,073 2022 75,350 2023 55,265 2024 50,644 Total $ 612,964 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 fifteen years , charges are based on a fixed-price per MT and, in some cases, there are adjustment provisions for increases in the price of fuel or for other distribution-related costs. The charge per MT varies depending on the loading and discharge port. Shipping expenses included in cost of sales were $64.1 million for each of the years ended December 31, 2019 and 2018 and $52.2 million for the year ended December 31, 2017 . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following tables presents our unaudited quarterly financial data. The quarterly results of operations for these periods are not necessarily indicative of future results of operations. Certain amounts related to the change in the fair value of derivatives have been reclassified to product sales from other income for the first and second quarters of 2018 to conform to current period presentation. Basic and diluted earnings per unit are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per unit information may not equal annual basic and diluted earnings per unit. For the Year Ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 158,369 $ 168,079 $ 157,405 $ 200,540 $ 684,393 Gross margin 9,907 16,507 26,466 28,188 81,068 Net (loss) income (8,923 ) (3,801 ) 8,852 929 (2,943 ) Enviva Partners, LP limited partners’ interest in net (loss) income (8,923 ) (3,801 ) 8,852 929 (2,943 ) Basic (loss) income per limited partner common unit $ (0.42 ) $ (0.20 ) $ 0.15 $ (0.10 ) $ (0.54 ) Diluted (loss) income per limited partner common unit $ (0.42 ) $ (0.20 ) $ 0.15 $ (0.10 ) $ (0.54 ) For the Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 125,324 $ 135,596 $ 144,148 $ 168,673 $ 573,741 Gross margin (5,018 ) 19,811 30,119 24,529 69,441 Net (loss) income (19,335 ) 3,544 13,356 9,387 6,952 Enviva Partners, LP limited partners’ interest in net (loss) income (19,335 ) 3,544 13,356 9,387 6,952 Basic (loss) income per limited partner common unit $ (0.78 ) $ 0.08 $ 0.45 $ 0.29 $ 0.04 Diluted (loss) income per limited partner common unit $ (0.78 ) $ 0.08 $ 0.43 $ 0.28 $ 0.04 Basic (loss) income per limited partner subordinated unit $ (0.78 ) $ 0.08 $ — $ — $ 0.04 Diluted (loss) income per limited partner subordinated unit $ (0.78 ) $ 0.08 $ — $ — $ 0.04 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Our consolidated financial statements include all accounts of the Partnership and its wholly owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated. We operate and manage our business as one operating segment. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Common Control Transactions | Common Control Transactions Assets and businesses acquired from our sponsor and its controlled subsidiaries are accounted for as common control transactions. 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 to the extent that such transactions require prior periods to be recast, historical net equity amounts prior to the transaction date are attributed to the General Partner and any noncontrolling partner interest at the historical amount. 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 and billable under our contracts and are recorded at the invoiced amount pending finalization of prerequisite billing documentation and do not bear interest. |
Inventories | Inventories Inventories consist of raw materials, work-in-progress, consumable tooling and finished goods. Fixed production overhead, including related depreciation expense, is allocated to inventory based on the normal production capacity of the facilities. To the extent we do not achieve normal production levels, we charge such under-absorption of fixed overhead to cost of goods sold in the period incurred. Consumable tooling consists of spare parts and tooling to be consumed in the production process. Spare parts are expected to be used within a year and are expensed as used. Tooling items are amortized to expense over an estimated service life generally less than one year. Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method (“FIFO”) for all inventories, which requires the use of judgment and estimates. Raw material, production and distribution costs associated with delivering wood pellets to marine terminals and third- and related-party wood pellet purchase costs are capitalized as a component of inventory. Fixed production overhead, including the related depreciation expense, is allocated to inventory based on the normal capacity of our production plants. These costs are reflected in cost of goods sold when inventory is sold. |
Revenue Recognition | 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 fixed for the entire term and are subject to adjustments which may include annual inflation-based adjustments or price escalators, price adjustments for product specifications, as well as, in some instances, price adjustments due to changes in underlying indices. In addition to sales of our product under these long-term, off-take contracts, we routinely sell wood pellets under shorter-term contracts, which range in volume and tenor and, in some cases, may include only one specific shipment. Because each of our off-take contracts is a bilaterally negotiated agreement, our revenue over the duration of such contracts does not generally follow observable current market pricing trends. Our performance obligations under these contracts 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 in back-to-back transactions (“purchase and sale transactions”). We recognize revenue on a gross basis in product sales when we determine that we act as a principal by having control of the wood pellets before they are transferred to the customer. Indicators of control have included being primarily responsible for fulfilling the promise to provide the wood pellets (such as by contracting to sell wood pellets before contracting to buy them), having inventory risk, or having discretion in establishing the sales price for the wood pellets. The decision as to whether to recognize revenue on a gross or net basis requires significant judgment. In instances in which a customer requests the cancellation, deferral or acceleration of a shipment, the customer may pay a fee, which is included in other revenue. 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 performed. Any deficiency payments receivable and probable of being collected from a customer not meeting quarterly minimum throughput requirements are recognized during the related quarter in satisfaction of the related performance obligation. Variable consideration from off-take contracts arises from several pricing features outlined in our off-take contracts, pursuant to which such contract pricing may be adjusted in respect of particular shipments to reflect differences between certain contractual quality specifications of the wood pellets as measured both when the wood pellets are loaded onto ships and unloaded at the discharge port as well as certain other contractual adjustments. Variable consideration from terminal services contracts arises from price increases based on agreed inflation indices and from above-minimum throughput quantities or services. We allocate variable consideration under our off-take and terminal services contracts entirely to each performance obligation to which variable consideration relates. The estimate of variable consideration represents the amount that is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Under our off-take contracts, customers are obligated to pay the majority of the purchase price prior to the arrival of the ship at the customers’ discharge port. The remaining portion is paid after the wood pellets are unloaded at the discharge port. We generally recognize revenue prior to the issuance of an invoice to the customer. |
Cost of Goods Sold | Cost of Goods Sold 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. |
Accruals and other current liabilities | Accrued and other current liabilities Accrued and other current liabilities primarily includes amounts 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. |
Derivative Instruments | Derivative Instruments On and as of January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities as issued by the Financial Accounting Standards Board (“FASB”). Upon adoption of ASU 2017-12 on January 1, 2019, we no longer measure and recognize ineffectiveness related to designated and qualifying cash flow hedges in earnings; as a result, any ineffectiveness is now included in accumulated other comprehensive income. See Recently Adopted Accounting Standards—Derivative Instruments below. Prior to adoption, we measured and recognized any ineffectiveness in earnings. Derivative instruments are classified as either assets or liabilities on a gross basis and carried at fair value and included in prepaid expenses and other current assets, other long-term assets, accrued and other current liabilities and other long-term liabilities on the consolidated balance sheets. Changes in fair value are either recognized as unrealized gains and losses in accumulated other comprehensive income in partners’ capital or earnings depending on the nature of the underlying exposure, whether or not the derivative is formally designated as a hedge. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. As of December 31, 2019 and 2018, we only apply hedge accounting treatment to interest rate swaps. The effective portion of foreign currency forward and option contracts designated as cash flow hedges was reported as a component of accumulated other comprehensive income in partners’ capital and reclassified into revenue in the same period or periods during which the hedged revenue affected earnings. During August 2018, we discontinued hedge accounting for all designated foreign currency cash flow hedges. The interest rate swaps designated as cash flow hedges is reported as a component of accumulated other comprehensive income in partners’ capital and reclassified into interest expense in the same period or periods during which the hedged interest expense affects earnings. We link interest rate swap derivative instruments designated as a hedge using the first payment technique to link the forecasted transaction which is the first London Inter-bank Offered Rate (“LIBOR”)-based payments on any borrowing. To qualify for hedge accounting, the item to be hedged must cause an exposure risk and we must have an expectation that the related hedging instrument will be effective at reducing or mitigating that exposure. In accordance with the hedging requirements, we document all hedging relationships at inception and include a description of the risk management objective and strategy for undertaking the hedge, identification of the hedging instrument, the hedged item, the nature of the risk being hedged, the method for assessing effectiveness of the hedging instrument in offsetting the hedged risk and the method of measuring any ineffectiveness. When an event or transaction occurs or the derivative contract expires or the forecasted transaction is no longer probable of occurring, hedge accounting is discontinued. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments are highly effective in offsetting changes in cash flows of hedged items. If it is determined that a derivative instrument has ceased to be a highly effective hedge, hedge accounting is discontinued prospectively. Hedge effectiveness for foreign exchange forward contracts designated as cash flow hedges was assessed by comparing the change in the fair value of the hedge contract with the change in the fair value of the forecasted cash flows of the hedged item. For foreign exchange option contracts, hedge effectiveness was assessed based on the hedging instrument’s entire change in fair value. Hedge effectiveness for interest rate swaps is assessed by comparing the change in fair value of the swap with the change in the fair value of the hedged item due to changes in the benchmark interest rate. Derivative instruments that do not qualify, or no longer qualify, as hedges are adjusted to fair value through earnings in the current period. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, which includes the fair values of assets acquired. Equipment under 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. |
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 to 28 years, some of which include options to extend the leases by up to 5 years. Our leases are generally noncancelable. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold 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. 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, and the current portion of long-term debt and finance lease obligations and long-term debt and finance lease obligations are included in 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, 2019 and 2018 , 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 year ended December 31, 2019, we performed a quantitative assessment using the market approach and determined the fair value of the reporting unit exceeded its carrying amount. The fair value was determined based on our market capitalization, which is considered a Level 1 Input. For the year ended December 31, 2018, we performed a qualitative assessment and determined it was more likely than not that the estimated fair value of the reporting unit substantially exceeded the related carrying value of our reporting unit. |
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 that provide services to us and to certain non-employee directors of the General Partner. Phantom unit awards vest subject to the satisfaction of service requirements and/or the achievement of certain performance goals following which common units in the Partnership will be delivered to the holder of the phantom units. For accounting purposes, units granted to employees of our affiliates (excluding the General Partner, the Partnership and subsidiaries of the Partnership) are treated as if they were distributed by the Partnership. Such affiliates recognize compensation expense for the phantom units awarded to their employees, a portion of which is allocated to us under the MSAs (see Note 15, Related-Party Transactions-Management Services Agreement and Note 18, Equity-Based Awards ). We also recognize compensation expense for phantom units awarded to non-employee directors. As of December 31, 2019 our outstanding phantom unit awards under the LTIP did not have a cash option and were classified 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. |
Recently Adopted and Recently Issued not yet Adopted Accounting Standards | Recently Adopted Accounting Standards Revenue Recognition As of January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers , which subsequently was issued as Accounting Standards Codification (“ASC”) 606. ASC 606 requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We recognize revenue under ASC 606 and related amendments, which we adopted as of January 1, 2018, using the modified retrospective transition method. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, whereas prior comparative reporting periods have not been adjusted and continue to be reported under the accounting standards in effect for such periods. We did not have a transition adjustment as a result of adopting ASC 606. We determined that, upon adoption of ASC 606, revenue derived from our off-take contracts will continue to be classified as product sales. Revenue is recognized when control of the wood pellets passes to the customer which occurs as the wood pellets are loaded onto shipping vessels, which is consistent with the timing of revenue recognition under our legacy accounting policy. However, the adoption of ASC 606 impacted the basis of presentation for purchase and sale transactions. Prior to the adoption of ASC 606, we reported revenue from purchase and sale transactions net of costs paid to third-party suppliers, which was classified as other revenue. Subsequent to the adoption of ASC 606, we recognize revenue on a gross basis in product sales when we determine that we act as a principal and control the wood pellets before they are transferred to the customer. Recoveries from customers for certain costs we incurred at the discharge port under our off-take contracts were reported in product sales prior to the adoption of ASC 606. Under ASC 606, these recoveries are not considered a part of the transaction price, and therefore are excluded from product sales and included as an offset to cost of goods sold. Leases In February 2016, the FASB issued ASU 2016-02, Leases , which established a ROU model that requires lessees to recognize a ROU asset and corresponding lease liability on the balance sheet for all leases with a term of longer than 12 months and classify leases as operating or finance. Operating lease expense is recorded in a single financial statement line item on a straight-line basis over the lease term. We adopted ASU 2016-02 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. We made an accounting policy election to not separate nonlease components from lease components for heavy machinery and equipment. We have a significant contract containing both lease and nonlease components, which are accounted for separately. As this contract has fixed payments, the allocation of lease and nonlease components is based on relative standalone price. The adoption of the new standard as of January 1, 2019 resulted in the recognition of operating lease ROU assets of $ 27.4 million , net of $ 2.1 million of deferred rent liabilities existing as of December 31, 2018, and operating lease liabilities of $ 29.5 million for operating leases related to real estate, machinery and equipment and other operating leases with terms of longer than 12 months. The classification of a lease affects the pattern and classification of expense recognition in the income statement, which is unchanged from under the previous accounting method. The adoption of the new standard did not change our accounting for finance leases (which were described as “capital leases” under the previous standard) or impact our results of operations and cash flows. See Note 9, Leases . Derivative Instruments We adopted ASU 2017-12 on and as of January 1, 2019 using the modified retrospective method, which requires the recognition of the cumulative effect of the change on the opening balance of each affected component of equity in the statement of changes in partner’s capital as of the date of adoption of the new standard. Upon adoption of ASU 2017-12, we no longer measure and recognize ineffectiveness related to designated and qualifying cash flow hedges in earnings; as a result, any ineffectiveness is included in accumulated other comprehensive income. On January 1, 2019, we recorded a nominal cumulative effect adjustment to accumulated other comprehensive income and common units in partners’ capital. See Note 10, Derivative Instruments. Recently Issued Accounting Standards not yet Adopted Currently, there are no recently issued accounting standards not yet adopted by us that we expect to be reasonably likely to materially impact the financial position, results of operations or cash flows of the Partnership. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of useful lives | The principal useful lives are as follows: Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years Property, plant and equipment, net consisted of the following at December 31 : 2019 2018 Land $ 15,226 $ 13,492 Land improvements 56,637 44,990 Buildings 217,167 196,574 Machinery and equipment 588,447 434,776 Vehicles 635 635 Furniture and office equipment 6,822 6,148 Leasehold improvements 1,029 987 Property, plant and equipment 885,963 697,602 Less accumulated depreciation (203,695 ) (154,967 ) Property, plant and equipment, net 682,268 542,635 Construction in progress 69,512 14,393 Total property, plant and equipment, net $ 751,780 $ 557,028 |
Transactions Between Entities_2
Transactions Between Entities Under Common Control (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transactions Between Entities Under Common Control | |
Schedule of net assets-asset acquisition | 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 |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties, Including Business and Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 2017 Customer A 48% 46% 66% Customer B 10% 11% 12% Customer C 20% 16% 2% Customer D 15% 17% 15% |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following at December 31 : 2019 2018 Raw materials and work-in-process $ 9,795 $ 4,936 Consumable tooling 20,485 17,561 Finished goods 2,718 8,993 Total inventories $ 32,998 $ 31,490 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | The principal useful lives are as follows: Asset Estimated useful life Land improvements 15 to 17 years Buildings 5 to 40 years Machinery and equipment 2 to 25 years Vehicles 5 to 6 years Furniture and office equipment 2 to 10 years Leasehold improvements Shorter of estimated useful life or lease term, generally 10 years Property, plant and equipment, net consisted of the following at December 31 : 2019 2018 Land $ 15,226 $ 13,492 Land improvements 56,637 44,990 Buildings 217,167 196,574 Machinery and equipment 588,447 434,776 Vehicles 635 635 Furniture and office equipment 6,822 6,148 Leasehold improvements 1,029 987 Property, plant and equipment 885,963 697,602 Less accumulated depreciation (203,695 ) (154,967 ) Property, plant and equipment, net 682,268 542,635 Construction in progress 69,512 14,393 Total property, plant and equipment, net $ 751,780 $ 557,028 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 : Operating leases: Operating lease right-of-use assets $ 32,830 Current portion of operating lease liabilities $ 1,439 Long-term operating lease liabilities 33,469 Total operating lease liabilities $ 34,908 Finance leases: Property plant and equipment, net $ 7,398 Current portion of long-term finance lease obligations $ 4,584 Long-term finance lease obligations 2,954 Total finance lease liabilities $ 7,538 |
Operating and finance lease costs | 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, 2019 : Weighted average remaining lease term (years): Operating leases 22 Finance leases 2 Weighted average discount rate: Operating leases 8 % Finance leases 6 % Operating and finance lease costs were as follows for the year ended December 31, 2019 : Lease Cost Classification 2019 Operating lease cost: Fixed lease cost Cost of goods sold $ 4,814 Variable lease cost Cost of goods sold 16 Short-term lease costs Cost of goods sold 7,309 Total operating lease costs $ 12,139 Finance lease cost: Amortization of leased assets Depreciation and amortization 4,159 Variable lease cost Cost of goods sold 9 Interest on lease liabilities Interest expense 292 Total finance lease costs $ 4,460 Total lease costs $ 16,599 |
Operating and finance lease cash flow information | Operating and finance lease cash flow information was as follows for the year ended December 31, 2019 : 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,826 Operating cash flows from finance leases 292 Financing cash flows from finance leases 3,304 Assets obtained in exchange for lease obligations: Operating leases $ 7,465 Finance leases 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, 2019 : Years Ending December 31, Operating Finance Total 2020 $ 4,140 $ 4,906 $ 9,046 2021 3,890 2,388 6,278 2022 3,719 332 4,051 2023 3,710 305 4,015 2024 3,581 92 3,673 Thereafter 61,530 — 61,530 Total lease payments 80,570 8,023 88,593 Less: imputed interest (45,662 ) (485 ) (46,147 ) Total present value of lease liabilities $ 34,908 $ 7,538 $ 42,446 |
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, 2019 : Years Ending December 31, Operating Finance Total 2020 $ 4,140 $ 4,906 $ 9,046 2021 3,890 2,388 6,278 2022 3,719 332 4,051 2023 3,710 305 4,015 2024 3,581 92 3,673 Thereafter 61,530 — 61,530 Total lease payments 80,570 8,023 88,593 Less: imputed interest (45,662 ) (485 ) (46,147 ) Total present value of lease liabilities $ 34,908 $ 7,538 $ 42,446 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 was as follows: Asset (Liability) Balance Sheet Classification 2019 2018 Designated as hedging instruments: Interest rate swap Other current assets $ 56 $ 508 Other long-term assets — 118 Total derivatives designated as hedging instruments $ 56 $ 626 Not designated as hedging instruments: Foreign currency exchange forward contracts: Other current assets $ 277 $ 794 Other long-term assets 331 1,810 Other current liabilities (735 ) (68 ) Other long-term liabilities (1,055 ) (179 ) Foreign currency purchased option contracts: Other current assets 131 22 Other long-term assets 1,443 3,348 Total derivatives not designated as hedging instruments $ 392 $ 5,727 |
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 (Loss) in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Interest rate swap (146 ) Interest expense 288 The effects of instruments that were designated as cash flow hedges and the related changes in accumulated other comprehensive income and the gains and losses recognized in earnings for the year ended December 31, 2018 were as follows: Amount of Gain Location of Amount of Location of Gain Amount of Gain Foreign currency exchange forward contracts $ 4,532 Product sales $ — Product sales $ 2,413 Foreign currency exchange purchased option contracts 749 Product sales — Product sales (470 ) Interest rate swap 374 Interest expense 231 Interest expense (13 ) |
Schedule of notional amounts of outstanding derivative instruments designated as cash flow hedges associated with outstanding or unsettled derivative instruments | The notional amounts of outstanding derivative instruments associated with outstanding or unsettled derivative instruments as of December 31, 2019 and 2018 were as follows: 2019 2018 Foreign exchange forward contracts in GBP £ 50,575 £ 42,170 Foreign exchange purchased option contracts in GBP £ 43,415 £ 39,365 Foreign exchange forward contracts in EUR € — € 14,300 Foreign exchange purchased option contracts in EUR € 1,200 € 1,675 Interest rate swap $ 34,354 $ 39,829 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value of long-term debt and capital lease obligations | The carrying amount and estimated fair value of long-term debt and finance lease obligations as of December 31, 2019 and 2018 was as follows: December 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value 2026 Notes $ 593,476 $ 644,250 $ — $ — 2021 Notes (1) — — 352,843 359,943 Other long-term debt and finance lease obligations 9,544 9,544 79,812 79,812 Total long-term debt and finance lease obligations $ 603,020 $ 653,794 $ 432,655 $ 439,755 (1) Notes were redeemed in December 2019 from proceeds from the issuance of the 2026 Notes. For more information, see Note 14, Long-Term Debt and Finance Lease Obligations. |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 : 2019 2018 2026 Notes, net of unamortized discount, premium and debt issuance of $6.5 million as of December 31, 2019 $ 593,476 $ — 2021 Notes, net of unamortized discount, premium and debt issuance of $2.2 million as of December 31, 2018 — 352,843 Senior secured revolving credit facility — 73,000 Other loans 2,006 2,015 Finance leases 7,538 4,797 Total long-term debt and finance lease obligations 603,020 432,655 Less current portion of long-term debt and finance lease obligations (6,590 ) (2,722 ) Long-term debt and finance lease obligations, excluding current installments $ 596,430 $ 429,933 |
Schedule of debt maturities | The aggregate maturities of long-term debt and finance lease obligations as of December 31, 2019 are as follows: Year Ending December 31: 2020 $ 6,590 2021 2,278 2022 295 2023 291 2024 and thereafter 600,090 Long-term debt and finance lease obligations 609,544 Unamortized premium 1,735 Unamortized debt issuance costs (8,259 ) Total long-term debt and finance lease obligations $ 603,020 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party amounts included on the consolidated statements of income | Related-party amounts included on the consolidated statements of operations were the following for each of the years ended December 31 : 2019 2018 2017 Other revenue $ 1,789 $ 3,545 $ 5,912 Cost of goods sold 111,491 84,148 69,445 General and administrative expenses 24,492 17,096 15,132 |
Schedule of balance sheet location of related-party management services agreements costs | balance sheets and the consolidated statements of operations under our MSAs were as follows: As of December 31, 2019 2018 Finished goods inventory $ 419 $ 1,244 Related-party payables 18,703 19,015 |
Schedule of income statement location of related-party management services agreements costs | For the Year Ended December 31, 2019 2018 2017 Cost of goods sold $ 63,377 $ 52,280 $ 49,875 General and administrative expenses 24,492 17,096 15,132 |
Partners' Capital (Tables)
Partners' Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
Schedule of cash distribution paid or declared | The following table details the cash distribution paid or declared (in millions, except per unit amounts): Quarter Ended Declaration Date Record Date Payment Date Distribution Per Unit Total Cash Distribution Total Payment to General Partner for Incentive Distribution Rights June 30, 2018 August 1, 2018 August 15, 2018 August 29, 2018 $ 0.6300 $ 16.7 $ 1.4 September 30, 2018 October 31, 2018 November 15, 2018 November 29, 2018 $ 0.6350 $ 16.8 $ 1.5 December 31, 2018 January 29, 2019 February 15, 2019 February 28, 2019 $ 0.6400 $ 17.0 $ 1.7 March 31, 2019 May 2, 2019 May 20, 2019 May 29, 2019 $ 0.6450 $ 21.6 $ 2.3 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 |
Schedule of changes in accumulated other comprehensive income | The following table presents the changes in accumulated other comprehensive income: Balance at December 31, 2017 $ (3,040 ) Net unrealized gains on cash flow hedges 5,655 Reclassification of net gains on cash flow hedges realized into net income (2,178 ) Currency translation adjustment 2 Accumulated other comprehensive income at December 31, 2018 439 Net unrealized losses on cash flow hedges (146 ) Reclassification of net gains on cash flow hedges realized into net loss (288 ) Cumulative effect of accounting change - derivative instruments 18 Accumulated other comprehensive income at December 31, 2019 $ 23 |
Equity-Based Awards (Tables)
Equity-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Affiliate Grants | |
Equity-Based Awards | |
Schedule of phantom unit awards | A summary of the Affiliate Grants for the years ended December 31, 2019 , 2018 and 2017 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 ____________________________________________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. |
Director Grants | |
Equity-Based Awards | |
Schedule of phantom unit awards | A summary of the Director Grant unit awards subject to vesting for the years ended December 31, 2019 , 2018 and 2017, 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 ____________________________________________ (1) Determined by dividing the aggregate grant date fair value of awards by the number of awards issued. |
Net Income (Loss) per Limited_2
Net Income (Loss) per Limited Partner Unit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of net income (loss) per limited partner unit | The computation of net (loss) income available per limited partner unit is as follows for the years ended December 31 : 2019 2018 2017 Net (loss) income available to partners $ (5,822 ) $ 6,952 $ 14,373 Less net loss attributable to noncontrolling partners’ interests — — 3,140 Net (loss) income available to Enviva Partners, LP $ (5,822 ) $ 6,952 $ 17,513 Less: Pre-acquisition income from inception to October 1, 2017 from operations of Enviva Port of Wilmington, LLC Drop-Down allocated to General Partner — — (3,049 ) Enviva Partners, LP limited partners’ interest in net (loss) income $ (5,822 ) $ 6,952 $ 20,562 Less: Distributions declared on: Common units $ 88,761 $ 54,604 $ 34,033 Subordinated units through end of subordination period — 12,407 28,096 IDRs 11,439 5,867 3,398 Total distributions declared 100,200 72,878 65,527 Earnings less than distributions $ (106,022 ) $ (65,926 ) $ (44,965 ) |
Schedule of weighted average common units outstanding | Year Ended December 31, 2017 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 14,403 11,905 — Effect of nonvested phantom units 948 — — Weighted-average common units outstanding—diluted 15,351 11,905 — Year Ended December 31, 2018 Common Units Subordinated Units General Partner Weighted-average common units outstanding—basic 21,533 4,893 — Effect of nonvested phantom units 1,020 — — Weighted-average common units outstanding—diluted 22,553 4,893 — Basic and diluted net (loss) income per limited partner unit is as follows: Year Ended December 31, 2019 Common Units General Partner Weighted-average common units outstanding—basic 31,791 — Effect of nonvested phantom units — — Weighted-average common units outstanding—diluted 31,791 — |
Schedule of basic earnings (loss) per common, subordinated and general partner units | Year Ended December 31, 2017 Common Units Subordinated Units General Partner Total Distributions declared $ 34,033 $ 28,096 $ 3,398 $ 65,527 Earnings less than distributions (24,631 ) (20,334 ) — (44,965 ) Net income available to partners $ 9,402 $ 7,762 $ 3,398 $ 20,562 Weighted-average units outstanding—basic 14,403 11,905 Weighted-average units outstanding—diluted 15,351 11,905 Net income per limited partner unit—basic $ 0.65 $ 0.65 Net income per limited partner unit—diluted $ 0.61 $ 0.65 Year Ended December 31, 2018 Common Units Subordinated Units General Partner Total Distributions declared $ 54,604 $ 12,407 $ 5,867 $ 72,878 Earnings less than distributions (53,720 ) (12,206 ) — (65,926 ) Net income 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 Year Ended December 31, 2019 Common Units General Partner 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 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, transportation and supply agreements for the next five years are as follows: 2020 $ 220,632 2021 211,073 2022 75,350 2023 55,265 2024 50,644 Total $ 612,964 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of the Partnership's unaudited quarterly financial data | The following tables presents our unaudited quarterly financial data. The quarterly results of operations for these periods are not necessarily indicative of future results of operations. Certain amounts related to the change in the fair value of derivatives have been reclassified to product sales from other income for the first and second quarters of 2018 to conform to current period presentation. Basic and diluted earnings per unit are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per unit information may not equal annual basic and diluted earnings per unit. For the Year Ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 158,369 $ 168,079 $ 157,405 $ 200,540 $ 684,393 Gross margin 9,907 16,507 26,466 28,188 81,068 Net (loss) income (8,923 ) (3,801 ) 8,852 929 (2,943 ) Enviva Partners, LP limited partners’ interest in net (loss) income (8,923 ) (3,801 ) 8,852 929 (2,943 ) Basic (loss) income per limited partner common unit $ (0.42 ) $ (0.20 ) $ 0.15 $ (0.10 ) $ (0.54 ) Diluted (loss) income per limited partner common unit $ (0.42 ) $ (0.20 ) $ 0.15 $ (0.10 ) $ (0.54 ) For the Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net revenue $ 125,324 $ 135,596 $ 144,148 $ 168,673 $ 573,741 Gross margin (5,018 ) 19,811 30,119 24,529 69,441 Net (loss) income (19,335 ) 3,544 13,356 9,387 6,952 Enviva Partners, LP limited partners’ interest in net (loss) income (19,335 ) 3,544 13,356 9,387 6,952 Basic (loss) income per limited partner common unit $ (0.78 ) $ 0.08 $ 0.45 $ 0.29 $ 0.04 Diluted (loss) income per limited partner common unit $ (0.78 ) $ 0.08 $ 0.43 $ 0.28 $ 0.04 Basic (loss) income per limited partner subordinated unit $ (0.78 ) $ 0.08 $ — $ — $ 0.04 Diluted (loss) income per limited partner subordinated unit $ (0.78 ) $ 0.08 $ — $ — $ 0.04 |
Description of Business and B_2
Description of Business and Basis of Presentation - (Details) $ / shares in Units, $ in Thousands, T in Millions | Jan. 02, 2020USD ($) | Jun. 28, 2019USD ($) | Apr. 01, 2019USD ($)shares | Dec. 27, 2017USD ($) | Apr. 30, 2019USD ($)T$ / sharesshares | Oct. 31, 2017USD ($) | Dec. 31, 2019USD ($)segmentplant$ / shares | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Number of industrial-scale production wood pellet production plants in operation | plant | 7 | ||||||||
Number of operating segments | segment | 1 | 1 | |||||||
Issuance of common units (usd per unit) | $ / shares | $ 1 | ||||||||
MSA Fee Waivers | $ (22,600) | $ 0 | $ 0 | ||||||
Hamlet JV | Enviva Management | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
MSA Fee Waivers | $ 13,000 | ||||||||
Enviva Port of Wilmington, LLC | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Total consideration | $ 130,000 | ||||||||
Purchase price adjustment | 1,400 | ||||||||
Payment for Contingent Consideration Liability, Cash | $ 24,300 | ||||||||
Total cash consideration | $ 54,600 | ||||||||
Deferred consideration paid to Hancock JV | $ 74,000 | ||||||||
Enviva Port of Wilmington, LLC | John Hancock | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Issuance of common units (in units) | shares | 1,691,627 | ||||||||
Payment for Contingent Consideration Liability, Cash | $ 22,800 | ||||||||
Issuance of common units value | $ 49,700 | ||||||||
Affiliated Entiity | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Total consideration | $ 165,000 | ||||||||
Issuance of common units (in units) | shares | 1,681,237 | ||||||||
Affiliated Entiity | Hamlet JV | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Issuance of common units (usd per unit) | $ / shares | $ 29.74 | ||||||||
Elimination of related-party receivables | $ 3,000 | ||||||||
Issuance of common units value | $ 50,000 | ||||||||
Off-take contract period | 15 years | ||||||||
Annual volume of the off-take contract | T | 1 | ||||||||
Affiliated Entiity | Hamlet JV | General and administrative expenses | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Cost to acquire - General and administrative expenses | $ 1,300 | ||||||||
Affiliated Entiity | Hamlet JV | Deferred consideration payment | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Payment for Contingent Consideration Liability, Cash | $ 40,000 | ||||||||
Affiliated Entiity | Enviva Wilmington Holdings, LLC | Hamlet JV | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
MSA Fee Waivers | $ 2,700 | ||||||||
Enviva Partners Finance Corp. | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva GP, LLC | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 99.999% | ||||||||
Enviva, LP | Enviva GP, LLC | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 0.001% | ||||||||
Enviva Pellets Amory, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Pellets Ahoskie, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Port Of Chesapeake, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Pellets Northampton, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Pellets Southampton, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Pellets Cottondale, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Energy Services, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Pellets Sampson, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Port of Wilmington, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Pellets Wiggins, LLC | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Purchase price of assets sold | $ 400 | 400 | |||||||
Loss (gain) on disposal of assets | $ 800 | ||||||||
Enviva Pellets Wiggins, LLC | General and administrative expenses | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Loss (gain) on disposal of assets, net | (800) | ||||||||
Loss (gain) on disposal of assets | (3,400) | ||||||||
Deconsolidation, Gain (Loss), Amount | $ 2,600 | ||||||||
Enviva Port of Panama City, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva MLP International Holdings, LLC | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Energy Services Cooperatief, U.A. | Enviva, LP | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 99.99% | ||||||||
Enviva Energy Services Cooperatief, U.A. | Enviva MLP International Holdings | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 0.01% | ||||||||
Enviva Energy Services (Jersey), Limited | Enviva MLP International Holdings | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Enviva Pellets Hamlet LLC | Enviva Wilmington Holdings LLC | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% | ||||||||
Our Sponsor | Hamlet JV | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Due to Related Parties | $ 4,100 | ||||||||
Paid at Closing | Affiliated Entiity | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 300 | ||||||||
Paid at Closing | Affiliated Entiity | Hamlet JV | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Payment for Contingent Consideration Liability, Cash | $ 24,700 | ||||||||
Paid on commencement of commercial operations | Affiliated Entiity | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Payment for Contingent Consideration Liability, Cash | $ 50,000 | ||||||||
Class B Units | Enviva Wilmington Holdings, LLC | John Hancock | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||||
Percentage of interest in subsidiaries | 100.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Accounts Receivable (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
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, 2019 | |
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, 2019segmentreporting_unit | Dec. 31, 2018segmentreporting_unit | |
Accounting Policies [Abstract] | ||
Number of reporting units for goodwill analysis | reporting_unit | 1 | 1 |
Number of operating segments | segment | 1 | 1 |
Significant Accounting Polici_7
Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Option to extend the lease terms | 5 years |
Minimum | |
Remaining lease terms | 1 year |
Maximum | |
Remaining lease terms | 28 years |
Significant Accounting Polici_8
Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 32,830 | $ 0 | |
Deferred Rents Excluded From Right Of Use Assets | $ 2,100 | ||
Operating Lease, Liability | $ 34,908 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 27,400 | ||
Operating Lease, Liability | $ 29,500 |
Transactions Between Entities_3
Transactions Between Entities Under Common Control - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 02, 2020 | Jun. 28, 2019 | Apr. 02, 2019 | Apr. 30, 2019 | Dec. 31, 2019 |
Schedule of Transactions Between Entities Under Common Control [Line Items] | |||||
Issuance of common units (usd per unit) | $ 1 | ||||
Hamlet Drop-Down | |||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | |||||
Net assets contributed to Partnership | $ 120,857 | ||||
Affiliated Entiity | |||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | |||||
Total consideration | $ 165,000 | ||||
Issuance of common units (in units) | 1,681,237 | ||||
Affiliated Entiity | Hamlet Drop-Down | |||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | |||||
Total consideration | 165,000 | ||||
Cash payment | $ 50,000 | ||||
Purchase price adjustment | $ 300 | ||||
Issuance of common units (in units) | 1,681,237 | ||||
Issuance of common units (usd per unit) | $ 29.74 | ||||
Issuance of common units value | $ 50,000 | ||||
Elimination of related-party receivables | 3,000 | ||||
Net assets contributed to Partnership | 120,900 | ||||
Initial cash payment | Affiliated Entiity | |||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | |||||
Cash payment | $ 50,000 | ||||
Initial cash payment | Affiliated Entiity | Hamlet Drop-Down | |||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | |||||
Cash payment | $ 24,700 | ||||
Paid at Closing | Affiliated Entiity | |||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | |||||
Purchase price adjustment | $ 300 | ||||
Deferred consideration payment | Affiliated Entiity | Hamlet Drop-Down | |||||
Schedule of Transactions Between Entities Under Common Control [Line Items] | |||||
Cash payment | $ 40,000 |
Transactions Between Entities_4
Transactions Between Entities Under Common Control Transactions Between Entities Under Common Control - Schedule of Changes in Consolidated Net Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 02, 2019 | Dec. 31, 2018 |
Assets: | |||
Cash and cash equivalents | $ 9,053 | $ 2,460 | |
Related-party receivables | 0 | 1,392 | |
Prepaid expenses and other current assets | 5,342 | 2,235 | |
Property, plant and equipment, net | 751,780 | 557,028 | |
Other long-term assets | 4,504 | 8,616 | |
Total assets | 994,818 | 748,770 | |
Liabilities: | |||
Accounts payable | 18,985 | 15,551 | |
Related-party payables | 304 | 28,225 | |
Accrued and other current liabilities | 59,066 | 41,400 | |
Finance lease obligations | 596,430 | 429,933 | |
Total liabilities | $ 762,242 | $ 602,054 | |
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 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable related to product sales | $ 67.7 | $ 51.3 |
Deferred revenue related to off-take contracts | 4.1 | 0.3 |
Not yet billable pending finalization of prerequisite billing documentation | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable related to product sales | $ 64.7 | $ 46 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
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 | $ 0.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 9.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 11.40% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 9,200 |
Significant Risks and Uncerta_3
Significant Risks and Uncertainties, Including Business and Credit Concentrations (Details) - Product sales - Percentage of sales | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | |||
Concentration Risk | |||
Concentration risk (as a percent) | 48.00% | 46.00% | 66.00% |
Customer B | |||
Concentration Risk | |||
Concentration risk (as a percent) | 10.00% | 11.00% | 12.00% |
Customer C | |||
Concentration Risk | |||
Concentration risk (as a percent) | 20.00% | 16.00% | 2.00% |
Customer D | |||
Concentration Risk | |||
Concentration risk (as a percent) | 15.00% | 17.00% | 15.00% |
Inventory Impairment and Asse_2
Inventory Impairment and Asset Disposal Inventory Impairment and Asset Disposals (Details) MT in Thousands, $ in Thousands | Feb. 27, 2018MT | Feb. 28, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) |
Inventory Disclosure [Abstract] | ||||
Wood pellets damaged, MT | MT | 43 | |||
Asset impairment, inventory write-off and disposal costs, emergency response costs, asset repair costs and business continuity activities | $ 60,300 | |||
Loss Contingencies [Line Items] | ||||
Insurance receivables | 5,140 | $ 275 | ||
Insurance recovery | 62,100 | |||
Insurance recoveries | ||||
Loss Contingencies [Line Items] | ||||
Insurance receivables | 3,800 | |||
Insurance recovery | $ 3,800 | |||
Cost of goods sold | Insurance recoveries | ||||
Loss Contingencies [Line Items] | ||||
Insurance recovery | 25,500 | |||
Other income | Insurance recoveries | ||||
Loss Contingencies [Line Items] | ||||
Insurance recovery | $ 500 | $ 1,800 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-process | $ 9,795 | $ 4,936 |
Consumable tooling | 20,485 | 17,561 |
Finished goods | 2,718 | 8,993 |
Total inventories | $ 32,998 | $ 31,490 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 885,963 | $ 697,602 | |
Less accumulated depreciation | (203,695) | (154,967) | |
Property, plant and equipment, net | 682,268 | 542,635 | |
Construction in progress | 69,512 | 14,393 | |
Total property, plant and equipment, net | 751,780 | 557,028 | |
Interest capitalized related to construction in progress | 2,100 | 200 | $ 0 |
Capital leases, cost | 14,600 | 7,800 | |
Capital leases, accumulated depreciation | 7,200 | 3,000 | |
Total depreciation expense | 51,600 | 40,600 | 39,100 |
Loss on disposal of assets | 3,103 | 2,386 | $ 4,899 |
Accrued and other current liabilities | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment and construction in progress | 9,400 | 6,300 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 15,226 | 13,492 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 56,637 | 44,990 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 217,167 | 196,574 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 588,447 | 434,776 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 635 | 635 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 6,822 | 6,148 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,029 | $ 987 |
Leases Leases Narrative (Detail
Leases Leases Narrative (Details) T in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2016USD ($)T | Feb. 28, 2015USD ($)renewal_option | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Option to extend the lease terms | 5 years | |||
Operating leases, future minimum payments | $ 73.8 | |||
Finance leases, future minimum payments | 4.8 | |||
Noncancelable operating lease cost | 4.4 | |||
North Carolina State Ports Authority | ||||
Lessee, Lease, Description [Line Items] | ||||
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 | |||
Operating lease, total base rent amount | $ 4.7 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 year | |||
Minimum | North Carolina State Ports Authority | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, annual throughput ton fee | $ 1.9 | |||
Operating lease, annual throughput ton | T | 1 | |||
Operating lease, total annual throughput ton fees | $ 71.7 | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 28 years | |||
Maximum | North Carolina State Ports Authority | ||||
Lessee, Lease, Description [Line Items] | ||||
Annual increase in producers price index | 1.00% |
Leases Operating lease ROU Asse
Leases Operating lease ROU Assets and Liabilities and Finance Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 32,830 | $ 0 |
Current portion of operating lease liabilities | 1,439 | |
Long-term operating lease liabilities | 33,469 | |
Total operating lease liabilities | 34,908 | |
Property plant and equipment, net | 7,398 | |
Current portion of long-term finance lease obligations | 4,584 | |
Long-term finance lease obligations | 2,954 | |
Total finance lease liabilities | $ 7,538 |
Leases Operating and Finance Le
Leases Operating and Finance Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating lease cost: | |
Fixed lease cost | $ 4,814 |
Variable lease cost | 16 |
Short-term lease costs | 7,309 |
Total operating lease costs | 12,139 |
Finance lease cost: | |
Amortization of leased assets | 4,159 |
Variable lease cost | 9 |
Interest on lease liabilities | 292 |
Total finance lease costs | 4,460 |
Total lease costs | $ 16,599 |
Leases Operating and Finance _2
Leases Operating and Finance lease Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 4,826 | $ 0 | $ 0 |
Operating cash flows from finance leases | 292 | ||
Financing cash flows from finance leases | 3,304 | ||
Assets obtained in exchange for lease obligations: | |||
Operating leases | 7,465 | ||
Finance leases | $ 6,493 |
Leases Future Minimum Payments
Leases Future Minimum Payments and Aggregate maturities of Operating and Finance Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 4,140 |
2021 | 3,890 |
2022 | 3,719 |
2023 | 3,710 |
2024 | 3,581 |
Thereafter | 61,530 |
Total lease payments | 80,570 |
Less: imputed interest | 45,662 |
Total present value of lease liabilities | 34,908 |
Finance Leases | |
2020 | 4,906 |
2021 | 2,388 |
2022 | 332 |
2023 | 305 |
2024 | 92 |
Thereafter | 0 |
Total lease payments | 8,023 |
Less: imputed interest | 485 |
Total present value of lease liabilities | 7,538 |
2020 | 9,046 |
2021 | 6,278 |
2022 | 4,051 |
2023 | 4,015 |
2024 | 3,673 |
Thereafter | 61,530 |
Total lease payments | 88,593 |
Less: imputed interest | 46,147 |
Total present value of lease liabilities | $ 42,446 |
Leases Weighted-average remaini
Leases Weighted-average remaining operating and finance lease terms and discount rate (Details) | Dec. 31, 2019 |
Weighted average remaining lease term (years): | |
Operating leases | 22 years |
Finance leases | 2 years |
Weighted average discount rate: | |
Weighted average discount rate: | 8.00% |
Finance leases | 6.00% |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments Narrative (Details) - USD ($) $ in Thousands | Aug. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized net gains included in accumulated other comprehensive income | $ 1,900 | $ 1,600 | ||
Unrealized net (loss) gain on derivative instruments | $ 1,770 | $ 4,907 | (1,720) | |
Net derivative settlement termination payment received amount | 400 | |||
Product sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized net (loss) gain on derivative instruments | (4,600) | 8,400 | ||
Realized gains on derivatives | $ 1,700 | 4,600 | ||
Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized net (loss) gain on derivative instruments | 200 | |||
Other income (expense) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized net (loss) gain on derivative instruments | $ 200 | |||
Foreign currency instruments | Not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized net (loss) gain on derivative instruments | $ 8,600 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Designated as hedging instruments: | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | $ 56 | $ 626 |
Designated as hedging instruments: | Other current assets | Interest rate swap | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 56 | 508 |
Designated as hedging instruments: | Other long-term assets | Interest rate swap | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 0 | 118 |
Not designated as hedging instruments: | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 392 | 5,727 |
Not designated as hedging instruments: | Other current assets | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 277 | 794 |
Not designated as hedging instruments: | Other current assets | Foreign currency purchased option contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 131 | 22 |
Not designated as hedging instruments: | Other long-term assets | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 331 | 1,810 |
Not designated as hedging instruments: | Other long-term assets | Foreign currency purchased option contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Asset Derivatives | 1,443 | 3,348 |
Not designated as hedging instruments: | Other current liabilities | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Liability Derivatives | (735) | (68) |
Not designated as hedging instruments: | Other long-term liabilities | Foreign currency exchange forward contracts | ||
Derivatives designated as cash flow hedging instruments: | ||
Liability Derivatives | $ (1,055) | $ (179) |
Derivative Instruments - Change
Derivative Instruments - Changes In Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign currency exchange forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | $ 4,532 | |
Foreign currency exchange forward contracts | Product sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | 0 | |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2,413 | |
Foreign currency purchased option contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | 749 | |
Foreign currency purchased option contracts | Product sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | 0 | |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (470) | |
Interest rate swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) in Other Comprehensive Income on Derivative (Effective Portion) | $ (146) | 374 |
Interest rate swap | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | $ 288 | 231 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (13) |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts (Details) € in Thousands, £ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018EUR (€) |
Foreign currency exchange forward contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Derivative, Notional Amount | £ 50,575 | € 0 | £ 42,170 | € 14,300 | ||
Foreign currency purchased option contracts | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Derivative, Notional Amount | £ 43,415 | € 1,200 | £ 39,365 | € 1,675 | ||
Interest rate swap | ||||||
Notional amounts of outstanding derivatives instruments designated as cash flow hedges | ||||||
Derivative, Notional Amount | $ 34,354 | $ 39,829 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - Level 2 - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Other long-term debt and finance lease obligations | $ 9,544 | $ 79,812 |
Total long-term debt and finance lease obligations | 603,020 | 432,655 |
Carrying Amount | 2026 Notes | ||
Long term debt | 593,476 | 0 |
Carrying Amount | 2021 Notes | ||
Long term debt | 0 | 352,843 |
Fair Value | ||
Other long-term debt and finance lease obligations | 9,544 | 79,812 |
Total long-term debt and finance lease obligations | 653,794 | 439,755 |
Fair Value | 2026 Notes | ||
Long term debt | 644,250 | 0 |
Fair Value | 2021 Notes | ||
Long term debt | $ 0 | $ 359,943 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2010 | |
Enviva Pellets Cottondale, LLC | ||
Acquired Goodwill | ||
Acquired Goodwill | $ 80.7 | |
IN Group Companies and Enviva Pellets Amory | ||
Acquired Goodwill | ||
Acquired Goodwill | $ 4.9 |
Assets Held for Sale and Diss_2
Assets Held for Sale and Dissolution - (Details) - Enviva Pellets Wiggins, LLC - Disposed of by Sale $ in Millions | 1 Months Ended |
Dec. 31, 2017USD ($) | |
Assets held for sale | |
Purchase price of assets sold | $ 0.4 |
Loss on deconsolidation | 0.8 |
Loss (gain) on disposal of assets | 3.4 |
General and administrative expenses | |
Assets held for sale | |
Loss (gain) on disposal of assets | $ (2.6) |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Finance Lease Obligation Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Unamortized discount, premium and debt issuance | $ 6,500 | $ 2,200 |
Total long-term debt and finance lease obligations | 603,020 | 432,655 |
Less current portion of long-term debt and finance lease obligations | (6,590) | (2,722) |
Long-term debt and finance lease obligations | 596,430 | 429,933 |
Other loans | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Long term debt | 2,006 | 2,015 |
Finance leases | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Capital Lease Obligations | 7,538 | 4,797 |
2026 notes | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Long term debt | 593,476 | 0 |
Unamortized discount, premium and debt issuance | 6,500 | |
2021 notes | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Long term debt | 0 | 352,843 |
Unamortized discount, premium and debt issuance | 2,200 | |
Senior Secured Credit Facilities | Revolving credit commitments | ||
Long-term Debt and Lease Obligation, Including Current Maturities [Abstract] | ||
Long term debt | $ 0 | $ 73,000 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Senior Notes (Details) - USD ($) $ in Thousands | Dec. 12, 2019 | Dec. 09, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Gross proceeds from debt issuance | $ 601,777 | $ 0 | $ 0 | ||
Gain (Loss) on Extinguishment of Debt | 9,042 | 751 | 0 | ||
Debt redemption premium | 7,544 | $ 0 | $ 0 | ||
Senior Notes | 2026 notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal | $ 50,000 | $ 550,000 | 600,000 | ||
Interest rate (as a percent) | 6.50% | 6.50% | |||
Maturity date | Jan. 15, 2026 | ||||
Debt issuance costs, original issue discount and premium | $ 6,600 | ||||
Gross proceeds from debt issuance | $ 601,800 | ||||
Net proceeds debt issuance | $ 595,800 | ||||
Senior Notes | 2021 notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal | $ 355,000 | ||||
Interest rate (as a percent) | 8.50% | ||||
Repayment of debt | $ 355,000 | ||||
Gain (Loss) on Extinguishment of Debt | (9,000) | ||||
Debt redemption premium | 7,500 | ||||
Debt issuance costs write off | $ 1,500 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Senior Secured Credit Facilities (Details) - Senior secured revolving credit facility - Revolving credit commitments $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 350,000 | |
Maturity date | Oct. 18, 2023 | |
Total Leverage Ratio | 4.75 | |
Basis point change | 0.25 | |
Leverage ratio during material transaction period | 5 | |
Long term debt | $ 0 | $ 73,000 |
Interest coverage ratio | 2.25 | |
Minimum | ||
Line of Credit Facility [Line Items] | ||
Total Leverage Ratio | 2.75 | |
Commitment fee percentage | 0.25% | |
Minimum | Eurodollar rate | ||
Line of Credit Facility [Line Items] | ||
Margin rate | 1.75% | |
Minimum | Base rate | ||
Line of Credit Facility [Line Items] | ||
Margin rate | 0.75% | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Total Leverage Ratio | 4.75 | |
Commitment fee percentage | 0.50% | |
Maximum | Eurodollar rate | ||
Line of Credit Facility [Line Items] | ||
Margin rate | 3.00% | |
Maximum | Base rate | ||
Line of Credit Facility [Line Items] | ||
Margin rate | 2.00% |
Long-Term Debt and Finance Le_6
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs, original issue discounts and premium | $ 8,259 | ||
Unamortized discount, premium and debt issuance | 6,500 | $ 2,200 | |
Amortization expense included in interest expense | 1,243 | 1,093 | $ 1,448 |
Interest Expense | |||
Debt Instrument [Line Items] | |||
Amortization expense included in interest expense | 1,200 | 1,100 | $ 1,400 |
Revolving credit facility | Long-term assets | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs, original issue discounts and premium | $ 2,000 | $ 2,500 |
Long-Term Debt and Finance Le_7
Long-Term Debt and Finance Lease Obligations - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
2020 | $ 6,590 | ||
2021 | 2,278 | ||
2022 | 295 | ||
2023 | 291 | ||
2024 and thereafter | 600,090 | ||
Long-term debt and finance lease obligations | 609,544 | ||
Unamortized premium | 1,735 | ||
Unamortized debt issuance costs | (8,259) | ||
Total long-term debt and finance lease obligations | 603,020 | $ 432,655 | |
Debt Instrument [Line Items] | |||
Depreciation expense | 51,600 | 40,600 | $ 39,100 |
Finance leases | |||
Debt Instrument [Line Items] | |||
Depreciation expense | $ 4,200 | $ 1,800 | $ 700 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Related Party Amounts Included on the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other revenue | |||
Related Party Transaction [Line Items] | |||
Related party revenue | $ 1,789 | $ 3,545 | $ 5,912 |
Cost of goods sold | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 111,491 | 84,148 | 69,445 |
General and administrative expenses | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 24,492 | $ 17,096 | $ 15,132 |
Related-Party Transactions - Ma
Related-Party Transactions - Management Services Agreement (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 02, 2019 | Apr. 01, 2019 | |
Related Party Transaction [Line Items] | ||||||
Finished good inventory | $ 32,998 | $ 31,490 | ||||
Related-party payables | 304 | 28,225 | ||||
Cost of goods sold | 603,325 | 504,300 | $ 464,419 | |||
General and administrative expenses | 24,492 | 17,096 | 15,132 | |||
Fees waived under Management Services Agreement | (22,600) | 0 | 0 | |||
increase to Partners' capital accounts | 50,000 | |||||
Management services agreements | ||||||
Related Party Transaction [Line Items] | ||||||
Finished good inventory | 419 | 1,244 | ||||
Related-party payables | 18,703 | 19,015 | ||||
Cost of goods sold | 63,377 | 52,280 | 49,875 | |||
General and administrative expenses | 24,492 | 17,096 | $ 15,132 | |||
Hamlet Drop-Down Agreements | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of goods sold | 7,700 | |||||
increase to Partners' capital accounts | 19,700 | |||||
Hamlet JV Revolver | Enviva, LP | ||||||
Related Party Transaction [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000 | $ 30,000 | ||||
Notes Payable, Related Parties | 52,200 | |||||
Second EVA MSA Fee Waiver | Our Sponsor | ||||||
Related Party Transaction [Line Items] | ||||||
Fees waived under Management Services Agreement | $ 5,000 | |||||
Partners' Capital Accounts | Hamlet JV Master Service Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Fees waived under Management Services Agreement | 2,600 | |||||
Partners' Capital Accounts | Second EVA MSA Fee Waiver | ||||||
Related Party Transaction [Line Items] | ||||||
Fees waived under Management Services Agreement | $ 5,000 | $ 0 |
Related-Party Transactions - Co
Related-Party Transactions - Common Control Transactions (Details) - USD ($) $ in Millions | Apr. 01, 2019 | Oct. 31, 2017 |
Wilmington Drop-Down | ||
Related Party Transaction [Line Items] | ||
Second and final payment | $ 74 | |
Wilmington Drop-Down | ||
Related Party Transaction [Line Items] | ||
Total consideration | $ 130 | |
Payment for Contingent Consideration Liability, Cash | 24.3 | |
Wilmington Drop-Down | John Hancock | ||
Related Party Transaction [Line Items] | ||
Payment for Contingent Consideration Liability, Cash | $ 22.8 | |
Issuance of common units (in units) | 1,691,627 | |
Issuance of common units value | $ 49.7 |
Related-Party Transactions - Re
Related-Party Transactions - Related-Party Indemnification (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 |
Sampson, LLC Drop-Down | ||||
Related Party Transaction [Line Items] | ||||
Receivable for reimbursable indemnifiable amounts | $ 0.3 | $ 6.4 | ||
Wilmington, LLC Drop-Down | ||||
Related Party Transaction [Line Items] | ||||
Receivable for reimbursable indemnifiable amounts | $ 0 | $ 1.8 |
Related-Party Transactions - Sa
Related-Party Transactions - Sampson Construction Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Payment Agreements | |
Related Party Transaction [Line Items] | |
Payment agreement | $ 2.9 |
Related-Party Transactions - Ho
Related-Party Transactions - Holdings TSA (Details) MT in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)MT | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Holdings TSA | Other revenue | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 0.5 | ||
Holdings TSA | Wilmington, LLC Drop-Down | Our Sponsor | |||
Related Party Transaction [Line Items] | |||
Terminal services revenue | $ 0 | ||
Holdings TSA | Wilmington, LLC Drop-Down | Other revenue | Our Sponsor | |||
Related Party Transaction [Line Items] | |||
Terminal services revenue | 0.8 | $ 2.8 | |
Holdings TSA | Wilmington, LLC Drop-Down | Minimum | |||
Related Party Transaction [Line Items] | |||
Quarterly amounts of pellets to be delivered | MT | 125 | ||
Greenwood contract | |||
Related Party Transaction [Line Items] | |||
Wood pellets purchased | $ 46.2 | 27.4 | 0 |
Deficiency fees | 0 | ||
Greenwood contract | Cost of goods sold | |||
Related Party Transaction [Line Items] | |||
Wood pellets purchased | 40.9 | 26.2 | |
Deficiency fees | 1.3 | ||
Greenwood contract | Other revenue | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 1.8 | 2.2 | $ 0 |
TSA and Greenwood | |||
Related Party Transaction [Line Items] | |||
Deficiency fees | $ 1.8 |
Related-Party Transactions - En
Related-Party Transactions - Enviva FiberCo, LLC (Details) - Enviva FiberCo. LLC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Purchase Of Wood Pellets and Deficiency Fee Costs Net | $ 0.5 | ||
Purchase of raw materials | $ 7.1 | $ 8.5 | |
Deficiency fees | $ 0 | $ 0 |
Related-Party Transactions - Bi
Related-Party Transactions - Biomass Agreements (Details) - Our Sponsor - Biomass Option Agreement $ in Millions | Jun. 23, 2017USD ($) | Sep. 07, 2016MT | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | ||||
Annual volume of wood pellets to be purchased | MT | 60,000 | |||
Wood pellets purchased | $ 1.7 | $ 11.1 | ||
Other revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue earned from wood pellets sold | $ 2.7 |
Related-Party Transactions - Gr
Related-Party Transactions - Greenwood Contract (Details) MT in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018MT | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Greenwood contract | ||||
Related Party Transaction [Line Items] | ||||
Annual volume of wood pellets to be purchased | MT | 550 | |||
Option to increase or decrease volume percent | 10.00% | |||
Wood pellets purchased | $ 46.2 | $ 27.4 | $ 0 | |
Deficiency fees | 5 | 0.7 | ||
Purchase of wood pellets and deficiency fee costs net | 41.2 | 26.7 | ||
Deficiency fees | 0 | |||
Inventory finished goods | Greenwood contract | ||||
Related Party Transaction [Line Items] | ||||
Wood pellets purchased | 0.3 | 0.5 | ||
Related-party payable | Greenwood contract | ||||
Related Party Transaction [Line Items] | ||||
Wood pellets purchased | 1.3 | 7.9 | ||
Cost of goods sold | Greenwood contract | ||||
Related Party Transaction [Line Items] | ||||
Wood pellets purchased | 40.9 | 26.2 | ||
Deficiency fees | 1.3 | |||
Enviva FiberCo. LLC | ||||
Related Party Transaction [Line Items] | ||||
Purchase of wood pellets and deficiency fee costs net | $ 0.5 | |||
Deficiency fees | $ 0 | $ 0 |
Related-Party Transactions - Lo
Related-Party Transactions - Long-Term Incentive Plan Vesting (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Our Sponsor | Purchase of common units | Performance-Based Phantom Units | ||
Related Party Transaction [Line Items] | ||
Purchase of common units and satisfaction of related tax withholding obligations | $ 0 | $ 6.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reserves for uncertain tax position | $ 0 | $ 0 | |
Provision for income tax | 0 | $ 0 | |
Enviva Partners Finance Corp. | |||
Provision for income tax | $ 0 |
Partners' Capital - Common and
Partners' Capital - Common and Subordinated Units - Sponsor and Allocations of Net Income (Loss) (Details) - USD ($) $ in Millions | Apr. 02, 2019 | Apr. 01, 2019 | May 30, 2018 | May 09, 2018 | Mar. 31, 2019 | Jan. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Partners' Capital and Distribution | ||||||||
Issue units in registered direct offering (in $) | $ 97 | |||||||
Issuance costs | $ 3 | |||||||
Common Units | ||||||||
Partners' Capital and Distribution | ||||||||
Number of units issued in registered direct offering (in units) | 3,508,778 | |||||||
Subordinated Units | ||||||||
Partners' Capital and Distribution | ||||||||
Limited partner units outstanding | 0 | 0 | ||||||
Conversion of common units ratio (per unit) | 1 | |||||||
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 | |||||||
Our Sponsor | Common Units | ||||||||
Partners' Capital and Distribution | ||||||||
Limited partner units outstanding | 11,905,138 | |||||||
Our Sponsor | Common Units | Hamlet JV | ||||||||
Partners' Capital and Distribution | ||||||||
Issuance of common units (in units) | 1,681,237 | |||||||
Issuance of common units value | $ 50 | |||||||
John Hancock | Common Units | Wilmington, LLC Drop-Down | ||||||||
Partners' Capital and Distribution | ||||||||
Issuance of common units (in units) | 1,691,627 | |||||||
Issuance of common units value | $ 49.7 |
Partners' Capital - Incentive D
Partners' Capital - Incentive Distribution Rights (Details) - General Partner Interest | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 08, 2016 | |
Partners' Capital and Distribution | ||||
Proceeds from sale of common units, net of commissions | $ 96,822,000 | $ 241,000 | $ 1,938,000 | |
At-the-market offering | ||||
Partners' Capital and Distribution | ||||
Proceeds from sale of common units, net of commissions | 200,000 | |||
Accounting or other fees | $ 0 | |||
Common Units | At-the-market offering | ||||
Partners' Capital and Distribution | ||||
Issuance of common units, net (in units) | 0 | 8,408 | ||
Common Units | Maximum | At-the-market offering | ||||
Partners' Capital and Distribution | ||||
Stated value of common units authorized for sale | $ 100,000,000 |
Partners' Capital - Cash Distri
Partners' Capital - Cash Distributions to Unitholders (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 29, 2020 | Oct. 30, 2019 | Jul. 31, 2019 | May 02, 2019 | Jan. 29, 2019 | Oct. 31, 2018 | Aug. 01, 2018 | May 30, 2018 |
Incentive Distribution Rights | ||||||||
Cash distribution declared (in dollars per unit) | $ 0.6700 | $ 0.6600 | $ 0.6450 | $ 0.6400 | $ 0.6350 | $ 0.6300 | ||
Cash distribution declared | $ 22.4 | $ 22.1 | $ 21.6 | $ 17 | $ 16.8 | $ 16.7 | ||
Incentive distribution paid | $ 3.1 | $ 2.8 | $ 2.3 | $ 1.7 | $ 1.5 | $ 1.4 | ||
Subsequent Event - LTIP units | ||||||||
Incentive Distribution Rights | ||||||||
Cash distribution declared (in dollars per unit) | $ 0.6750 | |||||||
Cash distribution declared | $ 22.7 | |||||||
Incentive distribution paid | $ 3.3 | |||||||
Subordinated Units | ||||||||
Incentive Distribution Rights | ||||||||
Conversion of common units ratio (per unit) | 1 |
Partners' Capital - Accumulated
Partners' Capital - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in accumulated other comprehensive income | |||
Net unrealized gains on cash flow hedges | $ (146) | $ 5,655 | $ (5,463) |
Currency translation adjustment | 0 | 2 | 0 |
Accumulated Other Comprehensive Income | |||
Changes in accumulated other comprehensive income | |||
Beginning of period | 439 | (3,040) | |
Net unrealized gains on cash flow hedges | (146) | 5,655 | |
Reclassification of net gains (losses) realized into net income | (288) | (2,178) | |
Currency translation adjustment | 2 | ||
Cumulative effect of accounting change - derivative instruments | 18 | ||
End of period | $ 23 | $ 439 | $ (3,040) |
Partners' Capital - Noncontroll
Partners' Capital - Noncontrolling Interest (Details) - Enviva Pellets Wiggins, LLC - USD ($) $ in Millions | Dec. 27, 2017 | Dec. 31, 2017 |
Noncontrolling Interest | ||
Purchase price of assets sold | $ 0.4 | $ 0.4 |
Loss on disposal of assets | $ 0.8 | |
Enviva Holdings, LP | Series B | ||
Noncontrolling Interest | ||
Percentage of interest in subsidiaries | 67.00% |
Partners' Capital Partners' Cap
Partners' Capital Partners' Capital - Shelf Registration - Equity Interests in the Partnership (Details) - USD ($) $ in Millions | Jun. 21, 2019 | Apr. 02, 2019 | Apr. 01, 2019 |
Partners' Capital and Distribution | |||
Maximum aggregate initial offering price of all securities sold | $ 500 | ||
John Hancock | Wilmington, LLC Drop-Down | Common Units | |||
Partners' Capital and Distribution | |||
Issuance of common units (in units) | 1,691,627 | ||
Issuance of common units value | $ 49.7 | ||
John Hancock | Wilmington, LLC Drop-Down | Common Units | Shelf registration | |||
Partners' Capital and Distribution | |||
Issuance of common units (in units) | 1,691,627 | ||
Our Sponsor | Hamlet JV | Common Units | |||
Partners' Capital and Distribution | |||
Issuance of common units (in units) | 1,681,237 | ||
Issuance of common units value | $ 50 | ||
Our Sponsor | Hamlet JV | Common Units | Shelf registration | |||
Partners' Capital and Distribution | |||
Issuance of common units (in units) | 1,681,237 |
Partners' Capital Partners' C_2
Partners' Capital Partners' Capital - Hamlet JV (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Partners' Capital and Distribution | ||||
Issuance of common units (usd per unit) | $ 1 | $ 1 | ||
Distribution rights [Abstract] | ||||
Distribution to holders of outstanding Class B Units | 75.00% | |||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 0 | $ 0 | $ (3,140,000) | |
John Hancock | ||||
Distribution rights [Abstract] | ||||
Distribution to holders of outstanding Class A Units | 25.00% | |||
Class A Units | John Hancock | ||||
Partners' Capital and Distribution | ||||
Issuance of common units (usd per unit) | $ 1 | $ 1 | ||
Total capital commitment | $ 235,200,000 | $ 235,200,000 | ||
Limited partner units outstanding | 227,000,000 | 227,000,000 | ||
Remaining capital commitment | $ 8,200,000 | $ 8,200,000 | ||
Class B Units | ||||
Partners' Capital and Distribution | ||||
Issuance of common units (usd per unit) | $ 1 | $ 1 | ||
Total capital commitment | $ 232,200,000 | $ 232,200,000 | ||
Limited partner units outstanding | 224,000,000 | 224,000,000 | ||
Remaining capital commitment | $ 8,200,000 | $ 8,200,000 | ||
Wilmington, LLC Drop-Down | ||||
Distribution rights [Abstract] | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 0 | $ 0 | $ (3,100,000) | |
Common Units | At-the-market offering | ||||
Distribution rights [Abstract] | ||||
Issuance of common units, net (in units) | 0 | 8,408 |
Partners' Capital Partners' C_3
Partners' Capital Partners' Capital - Allocations of Net Income (Loss) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
General Partner | |
Partners' Capital and Distribution | |
Distribution Made To General Partner Cash Distributions Allocations Of Net Income | 100.00% |
Equity-Based Awards Equity-Base
Equity-Based Awards Equity-Based Awards Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2018 | Sep. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 29, 2020 | |
Equity-Based Awards | |||||||
General and administrative expenses | $ 36,389 | $ 27,641 | $ 30,934 | ||||
Payment for withholding tax | 1,910 | 4,536 | 0 | ||||
Affiliate Grants | |||||||
Equity-Based Awards | |||||||
Grant date fair value | $ 18,700 | $ 16,600 | |||||
Vested (in units) | 145,506 | 226,595 | |||||
Granted (in units) | 615,794 | 569,833 | |||||
Unrecognized estimated compensation cost | $ 8,700 | ||||||
Period In Which Distributions Related To Distribution Equivalent Rights Are Required To Be Paid | 60 days | ||||||
Affiliate Grants | General and administrative expenses | |||||||
Equity-Based Awards | |||||||
General and administrative expenses | $ 5,000 | $ 4,700 | 3,400 | ||||
Affiliate Grants | Time-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 145,506 | 181,536 | |||||
Payment for withholding tax | $ 1,900 | ||||||
Granted (in units) | 395,851 | 398,729 | |||||
Affiliate Grants | Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vesting period | 3 years | ||||||
Compensation expense reversed | $ 400 | $ 1,600 | $ 0 | ||||
Vested (in units) | 45,059 | ||||||
Granted (in units) | 219,943 | 171,104 | |||||
Non Employee Directors | |||||||
Equity-Based Awards | |||||||
Granted (in units) | 420 | ||||||
Non Employee Directors | Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 0 | ||||||
Director Grants | Time-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Compensation expense | $ 400 | $ 400 | $ 500 | ||||
Vested (in units) | 13,964 | 15,840 | |||||
Fair value of units granted | $ 400 | ||||||
Granted (in units) | 13,264 | 13,964 | |||||
Share-based compensation | Affiliate Grants | |||||||
Equity-Based Awards | |||||||
Payment for withholding tax | $ 2,900 | ||||||
Share-based compensation | Affiliate Grants | Time-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 181,536 | ||||||
Share-based compensation | Affiliate Grants | Performance-Based Phantom Units | |||||||
Equity-Based Awards | |||||||
Vested (in units) | 45,059 | ||||||
Subsequent Event - LTIP units | LTIP | |||||||
Equity-Based Awards | |||||||
Number of common units to be awarded under the plan | 2,450,000 |
Equity-Based Awards Equity-Ba_2
Equity-Based Awards Equity-Based Awards Schedule of Phantom Unit Awards (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 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) | 963,452 | 706,970 |
Granted (in units) | 615,794 | 569,833 |
Adjusted (in units) | 19,832 | |
Forfeitures (in units) | (124,184) | (106,588) |
Vested (in units) | (145,506) | (226,595) |
Nonvested at the end of the period (in units) | 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) | $ 26.34 | $ 22.82 |
Granted (in dollars per unit) | 30.36 | 29.08 |
Adjusted (in dollars per unit) | 18.19 | |
Forfeitures (in dollar per unit) | 28.80 | 25.62 |
Vested (in dollars per unit) | 18.30 | 21.89 |
Nonvested at the end of the period (in dollars per unit) | $ 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) | 723,940 | 595,866 |
Granted (in units) | 395,851 | 398,729 |
Adjusted (in units) | 0 | |
Forfeitures (in units) | (99,999) | (89,119) |
Vested (in units) | (145,506) | (181,536) |
Nonvested at the end of the period (in units) | 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) | $ 25.91 | $ 22.32 |
Granted (in dollars per unit) | 30.41 | 29.15 |
Adjusted (in dollars per unit) | 0 | |
Forfeitures (in dollar per unit) | 28.56 | 25.59 |
Vested (in dollars per unit) | 18.30 | 21.42 |
Nonvested at the end of the period (in dollars per unit) | $ 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) | 239,512 | 111,104 |
Granted (in units) | 219,943 | 171,104 |
Adjusted (in units) | 19,832 | |
Forfeitures (in units) | (24,185) | (17,469) |
Vested (in units) | (45,059) | |
Nonvested at the end of the period (in units) | 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) | $ 27.65 | $ 25.52 |
Granted (in dollars per unit) | 30.28 | 28.92 |
Adjusted (in dollars per unit) | 18.19 | |
Forfeitures (in dollar per unit) | 29.82 | 25.76 |
Vested (in dollars per unit) | 0 | 23.80 |
Nonvested at the end of the period (in dollars per unit) | $ 28.84 | $ 27.65 |
Director Grants | Time-Based Phantom Units | ||
Equity-Based Awards-Schedule of Phantom Unit Awards [Roll Forward] | ||
Nonvested at the beginning of the period (in units) | 13,964 | 15,840 |
Granted (in units) | 13,264 | 13,964 |
Vested (in units) | (13,964) | (15,840) |
Nonvested at the end of the period (in units) | 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) | $ 28.65 | $ 25.25 |
Granted (in dollars per unit) | 30.16 | 28.65 |
Vested (in dollars per unit) | 28.65 | 25.25 |
Nonvested at the end of the period (in dollars per unit) | $ 30.16 | $ 28.65 |
Equity-Based Awards Distributio
Equity-Based Awards Distribution Equivalent Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Affiliate Grants | |||
Class of Stock [Line Items] | |||
Period In Which Distributions Related To Distribution Equivalent Rights Are Required To Be Paid | 60 days | ||
Performance-Based Phantom Units | Affiliate Grants | |||
Class of Stock [Line Items] | |||
Unpaid DER | $ 1,590 | $ 731 | |
Time-Based Phantom Units | |||
Class of Stock [Line Items] | |||
Distributions Paid Related To Distribution Equivalent Rights | $ 2,700 | 1,800 | $ 1,000 |
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 | |||
Class of Stock [Line Items] | |||
Unpaid DER | $ 600 | 900 | |
Accrued liabilities | Performance-Based Phantom Units | Affiliate Grants | |||
Class of Stock [Line Items] | |||
Unpaid DER | 397 | 419 | |
Other long-term liabilities | Performance-Based Phantom Units | Affiliate Grants | |||
Class of Stock [Line Items] | |||
Unpaid DER | $ 1,193 | $ 312 |
Net Income (Loss) per Limited_3
Net Income (Loss) per Limited Partner Unit - Narrative (Details) | May 30, 2018shares | Dec. 31, 2019shares | Dec. 31, 2018shares |
Unit conversion ratio per unit | 1 | ||
Subordinated Units | |||
Potentially dilutive subordinated units outstanding | 0 | ||
Subordinated Units— Sponsor | |||
Conversion of subordinated units to common units (in units) | 11,905,138 | (11,905,000) |
Net Income (Loss) per Limited_4
Net Income (Loss) per Limited Partner Unit - Computation of Net Income (Loss) Table (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income per Limited Partner Unit | |||||||||||
Net (loss) income available to partners | $ (5,822,000) | $ 6,952,000 | $ 14,373,000 | ||||||||
Net loss attributable to noncontrolling partners' interests | 0 | 0 | 3,140,000 | ||||||||
Net (loss) income | $ 929,000 | $ 8,852,000 | $ (3,801,000) | $ (8,923,000) | $ 9,387,000 | $ 13,356,000 | $ 3,544,000 | $ (19,335,000) | (2,943,000) | 6,952,000 | 14,373,000 |
Net income attributable to Enviva Partners, LP | (2,943,000) | 6,952,000 | 17,513,000 | ||||||||
Less: Distributions declared on: | |||||||||||
Distributions declared | 100,200,000 | 72,878,000 | 65,527,000 | ||||||||
Undistributed earnings: | |||||||||||
Earnings less than distributions | (106,022,000) | (65,926,000) | (44,965,000) | ||||||||
Common Units | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Net income attributable to Enviva Partners, LP | 884,000 | 9,402,000 | |||||||||
Enviva Partners, LP limited partners’ interest in net (loss) income | (17,261,000) | ||||||||||
Less: Distributions declared on: | |||||||||||
Distributions declared | 88,761,000 | 54,604,000 | 34,033,000 | ||||||||
Undistributed earnings: | |||||||||||
Earnings less than distributions | (106,022,000) | (53,720,000) | (24,631,000) | ||||||||
Subordinated Units | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Net income attributable to Enviva Partners, LP | 201,000 | 7,762,000 | |||||||||
Less: Distributions declared on: | |||||||||||
Distributions declared | 0 | 12,407,000 | 28,096,000 | ||||||||
Undistributed earnings: | |||||||||||
Earnings less than distributions | (12,206,000) | (20,334,000) | |||||||||
IDRs | |||||||||||
Less: Distributions declared on: | |||||||||||
Distributions declared | 11,439,000 | 5,867,000 | 3,398,000 | ||||||||
General Partner | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Net (loss) income | 9,821,000 | 5,326,000 | (418,000) | ||||||||
Limited Partners’ Capital | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Net (loss) income | (5,822,000) | 6,952,000 | 17,513,000 | ||||||||
Net income attributable to Enviva Partners, LP | 929,000 | $ 8,852,000 | $ (3,801,000) | $ (8,923,000) | $ 9,387,000 | $ 13,356,000 | $ 3,544,000 | $ (19,335,000) | (2,943,000) | 6,952,000 | 20,562,000 |
Enviva Partners, LP limited partners’ interest in net (loss) income | (5,822,000) | 6,952,000 | 20,562,000 | ||||||||
Less: Distributions declared on: | |||||||||||
Distributions declared | 100,200,000 | 72,878,000 | 65,527,000 | ||||||||
Undistributed earnings: | |||||||||||
Earnings less than distributions | (106,022,000) | (65,926,000) | (44,965,000) | ||||||||
Wilmington, LLC Drop-Down | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Net loss attributable to noncontrolling partners' interests | $ 0 | 0 | 3,100,000 | ||||||||
Wilmington, LLC Drop-Down | General Partner | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Net income attributable to Enviva Partners, LP | $ 0 | $ 0 | $ (3,049,000) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Units | |||
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—basic | 31,791 | 21,533 | 14,403 |
Effect of nonvested phantom units | 0 | 1,020 | 948 |
Weighted-average common units outstanding—diluted | 31,791 | 22,553 | 15,351 |
Subordinated Units | |||
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—basic | 4,893 | 11,905 | |
Effect of nonvested phantom units | 0 | 0 | |
Weighted-average common units outstanding—diluted | 4,893 | 11,905 | |
General Partner | |||
Net Income per Limited Partner Unit | |||
Weighted-average common units outstanding—basic | 0 | 0 | 0 |
Effect of nonvested phantom units | 0 | 0 | 0 |
Weighted-average common units outstanding—diluted | 0 | 0 | 0 |
Net Income (Loss) per Limited_6
Net Income (Loss) per Limited Partner Unit - Net Income Per Unit Table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | $ 100,200 | $ 72,878 | $ 65,527 | ||||||||
Earnings less than distributions | (106,022) | (65,926) | (44,965) | ||||||||
Net (loss) income available to partners | (2,943) | 6,952 | 17,513 | ||||||||
Common Units | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | 88,761 | 54,604 | 34,033 | ||||||||
Earnings less than distributions | (106,022) | (53,720) | (24,631) | ||||||||
Net (loss) income available to partners | $ (17,261) | ||||||||||
Net (loss) income available to partners | $ 884 | $ 9,402 | |||||||||
Weighted-average units outstanding - basic (in units) | 31,791 | 21,533 | 14,403 | ||||||||
Weighted-average units outstanding - diluted (in units) | 31,791 | 22,553 | 15,351 | ||||||||
Net income per limited partner unit - basic (in dollars per unit) | $ (0.54) | $ 0.04 | $ 0.65 | ||||||||
Net income per limited partner unit - diluted (in dollars per unit) | $ 0.61 | ||||||||||
Subordinated Units | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | $ 0 | $ 12,407 | $ 28,096 | ||||||||
Earnings less than distributions | (12,206) | (20,334) | |||||||||
Net (loss) income available to partners | $ 201 | $ 7,762 | |||||||||
Weighted-average units outstanding - basic (in units) | 4,893 | 11,905 | |||||||||
Weighted-average units outstanding - diluted (in units) | 4,893 | 11,905 | |||||||||
Net income per limited partner unit - basic (in dollars per unit) | $ 0.04 | $ 0.65 | |||||||||
Net income per limited partner unit - diluted (in dollars per unit) | $ 0.65 | ||||||||||
General Partner | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | 11,439 | $ 5,867 | $ 3,398 | ||||||||
Earnings less than distributions | 0 | 0 | 0 | ||||||||
Net (loss) income available to partners | $ 11,439 | ||||||||||
Net (loss) income available to partners | $ 5,867 | $ 3,398 | |||||||||
Weighted-average units outstanding - basic (in units) | 0 | 0 | 0 | ||||||||
Weighted-average units outstanding - diluted (in units) | 0 | 0 | 0 | ||||||||
Limited Partners’ Capital | |||||||||||
Net Income per Limited Partner Unit | |||||||||||
Distributions declared | $ 100,200 | $ 72,878 | $ 65,527 | ||||||||
Earnings less than distributions | (106,022) | (65,926) | (44,965) | ||||||||
Net (loss) income available to partners | (5,822) | 6,952 | 20,562 | ||||||||
Net (loss) income available to partners | $ 929 | $ 8,852 | $ (3,801) | $ (8,923) | $ 9,387 | $ 13,356 | $ 3,544 | $ (19,335) | $ (2,943) | $ 6,952 | $ 20,562 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) MT in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)MT | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Commitments and Contingencies | |||
Firm commitments | $ 612,964 | ||
Cost of goods sold | 603,325 | $ 504,300 | $ 464,419 |
Terminal and stevedoring services agreements | |||
Commitments and Contingencies | |||
Firm commitments | 12,200 | ||
Services expenses | 11,300 | 9,800 | 10,600 |
Transportation Agreement | |||
Commitments and Contingencies | |||
Transportation expense | $ 25,500 | 29,800 | 23,800 |
Long-term supply agreement | |||
Commitments and Contingencies | |||
Purchase commitment for wood pellets | MT | 1,620 | ||
Sale commitment for wood pellets | MT | 1,620 | ||
Wood pellet purchases | $ 51,600 | 29,500 | 3,500 |
Long-term shipping agreement | Maximum | |||
Commitments and Contingencies | |||
Lease term | 15 years | ||
Long-term shipping agreement | Shipping expenses | |||
Commitments and Contingencies | |||
Cost of goods sold | $ 64,100 | $ 64,100 | $ 52,200 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies - Schedule of Future Minimum Firm Commitments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 220,632 |
2021 | 211,073 |
2022 | 75,350 |
2023 | 55,265 |
2024 | 50,644 |
Total | $ 612,964 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenue | $ 200,540 | $ 157,405 | $ 168,079 | $ 158,369 | $ 168,673 | $ 144,148 | $ 135,596 | $ 125,324 | $ 684,393 | $ 573,741 | $ 543,221 |
Gross margin | 28,188 | 26,466 | 16,507 | 9,907 | 24,529 | 30,119 | 19,811 | (5,018) | 81,068 | 69,441 | 78,802 |
Net (loss) income | $ 929 | $ 8,852 | $ (3,801) | $ (8,923) | $ 9,387 | $ 13,356 | $ 3,544 | $ (19,335) | (2,943) | 6,952 | 14,373 |
Enviva Partners, LP limited partners’ interest in net (loss) income | $ (2,943) | $ 6,952 | $ 17,513 | ||||||||
Basic income (loss) per limited partner common unit (in dollars per unit) | $ (0.10) | $ 0.15 | $ (0.20) | $ (0.42) | $ 0.29 | $ 0.45 | $ 0.08 | $ (0.78) | $ (0.54) | $ 0.04 | $ 0.65 |
Diluted income (loss) per limited partner common unit (in dollars per unit) | $ (0.10) | $ 0.15 | $ (0.20) | $ (0.42) | 0.28 | 0.43 | 0.08 | (0.78) | (0.54) | 0.04 | 0.61 |
Basic (loss) income per limited partner subordinated unit (in dollars per unit) | 0 | 0 | 0.08 | (0.78) | 0 | 0.04 | 0.65 | ||||
Diluted (loss) income per limited partner subordinated unit (in dollars per unit) | $ 0 | $ 0 | $ 0.08 | $ (0.78) | $ 0 | $ 0.04 | $ 0.65 | ||||
Limited Partners’ Capital | |||||||||||
Net (loss) income | $ (5,822) | $ 6,952 | $ 17,513 | ||||||||
Enviva Partners, LP limited partners’ interest in net (loss) income | $ 929 | $ 8,852 | $ (3,801) | $ (8,923) | $ 9,387 | $ 13,356 | $ 3,544 | $ (19,335) | $ (2,943) | $ 6,952 | $ 20,562 |