Enviva Partners, LP (NYSE:EVA) (the “Partnership” or “we”) today
announced the execution of a new take-or-pay off-take contract for the
supply of wood pellets to the European market. Deliveries under this
U.S. Dollar denominated contract will commence in 2017, ramp to 450,000
metric tons per year in 2018, and continue until 2027. This transaction
significantly extends the weighted average remaining term of the
Partnership’s off-take contracts to 7.2 years.
“We have a strong track record of re-contracting our capacity,” said
John Keppler, Chairman and Chief Executive Officer. “This 10-year
contract diversifies our customer set and substantially extends our
contracted position, further strengthening the long-term, stable cash
flow profile of Enviva.”
About Enviva Partners, LP
Enviva Partners, LP (NYSE:EVA) is a publicly traded master limited
partnership that aggregates a natural resource, wood fiber, and
processes it into a transportable form, wood pellets. The Partnership
sells a significant majority of its wood pellets through long-term,
take-or-pay agreements with creditworthy customers in the United Kingdom
and Europe. The Partnership owns and operates five plants in Northampton
County and Ahoskie, North Carolina; Amory and Wiggins, Mississippi; and
Cottondale, Florida. We have a combined production capacity of
approximately 1.7 million metric tons of wood pellets per year. In
addition, the Partnership owns a deep-water marine terminal at the Port
of Chesapeake, Virginia, which is used to export wood pellets. Enviva
Partners also exports pellets through the ports of Mobile, Alabama and
Panama City, Florida.
To learn more about Enviva Partners, LP, please visit our website at www.envivabiomass.com.
Cautionary Note Concerning Forward-Looking Statements
Certain statements and information in this press release, including
those concerning our future results of operations, acquisition
opportunities, and distributions, may constitute “forward-looking
statements.” The words “believe,” “expect,” “anticipate,” “plan,”
“intend,” “foresee,” “should,” “would,” “could,” or other similar
expressions are intended to identify forward-looking statements, which
are generally not historical in nature. These forward-looking statements
are based on the Partnership’s current expectations and beliefs
concerning future developments and their potential effect on the
Partnership. Although management believes that these forward-looking
statements are reasonable when made, there can be no assurance that
future developments affecting the Partnership will be those that it
anticipates. The forward-looking statements involve significant risks
and uncertainties (some of which are beyond the Partnership’s control)
and assumptions that could cause actual results to differ materially
from the Partnership’s historical experience and its present
expectations or projections. Important factors that could cause actual
results to differ materially from forward-looking statements include,
but are not limited to: (i) the amount of products that the Partnership
is able to produce, which could be adversely affected by, among other
things, operating difficulties; (ii) the volume of products that the
Partnership is able to sell; (iii) the price at which the Partnership is
able to sell products; (iv) changes in the price and availability of
natural gas, coal, or other sources of energy; (v) changes in prevailing
economic conditions; (vi) the Partnership’s ability to complete
acquisitions, including acquisitions from its sponsor;
(vii) unanticipated ground, grade, or water conditions; (viii) inclement
or hazardous weather conditions, including extreme precipitation,
temperatures, and flooding; (ix) environmental hazards; (x) fires,
explosions, or other accidents; (xi) changes in domestic and foreign
laws and regulations (or the interpretation thereof) related to
renewable or low-carbon energy, the forestry products industry, or power
generators; (xii) inability to acquire or maintain necessary permits;
(xiii) inability to obtain necessary production equipment or replacement
parts; (xiv) technical difficulties or failures; (xv) labor disputes;
(xvi) late delivery of raw materials; (xvii) inability of the
Partnership’s customers to take delivery or their rejection of delivery
of products; (xviii) changes in the price and availability of
transportation; and (xix) the Partnership’s ability to borrow funds and
access capital markets.
For additional information regarding known material factors that could
cause the Partnership’s actual results to differ from projected results,
please read its filings with the Securities and Exchange Commission,
including the prospectus filed on April 29, 2015 in connection with the
IPO and the Quarterly Report on Form 10-Q for the quarter ended
September 30, 2015. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date thereof. The
Partnership undertakes no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as a
result of new information, future events, or otherwise.
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