Enviva reports third quarter 2021 results, increases distribution, and announces first industrial contract | Business Wire China

2021-11-29 07:30:00 By : Mr. Andy Liu

Bethesda, Maryland--(BUSINESS WIRE)--Enviva Partners, LP (NYSE: EVA) ("Enviva", "us" or "our") today announced its third quarter financials In 2021, it announced the 25th consecutive quarter of increasing distribution and announced its first direct contract with industrial customers. European counterparties will process solid biomass into refined liquids, which will eventually become advanced renewable fuels, such as sustainable aviation. Fuel ("SAF") and biodiesel.

"In the third quarter of 2021, Enviva provided financial and operational performance. This is an important step for us. We are ready to provide incredible results for our company, our team, and our equity holders. The year comes to an end," said Chairman and CEO John Kepler. "Today, we are pleased to announce our first contract in the fast-growing industrial sector. Customers will process our solid biomass into refined liquids, which will eventually become advanced renewable fuels such as sustainable aviation fuel and biodiesel. We Hope this important milestone is only the first of many milestones, because we work with large industrial customers who can use our products to reduce greenhouse gas intensive and more sustainable industries that are difficult to decarbonize."

"Enviva's future has never been so bright. With our transformatively simplified transactions and conversions, as well as our expanding production capacity based on existing assets, ongoing factory expansion, and the commissioning of the Lucedale factory and Pascagoula terminal, we Entering 2022, the scale and scale will increase, significantly improving the cost of capital and expanding the customer base. Driven by the global commitment to "zero net worth", our products are expected to achieve exponential growth, and we will continue to build a company The company and a platform today provide real climate change benefits while consistently providing outstanding returns to our stakeholders."

On November 3, 2021, Enviva's board of directors announced a dividend of US$0.840 per ordinary unit for the third quarter of 2021, an increase of 8.4% over the same period in 2020. This dividend is the 25th consecutive increase in dividends since Enviva's IPO. The quarterly distribution will be paid on Friday, November 26, 2021 to unitholders of record as of the close of business on Monday, November 15, 2021.

Adjusted gross margin $/metric ton

Simplify transaction and company conversion details

As previously announced on October 15, 2021, Enviva completed the simplified transaction, that is, Enviva obtained 100% ownership interest in Holdings and cancelled all outstanding incentive distribution rights in exchange for 16 million ordinary units of EVA. Enviva did not assume or issue any debt for simplified transactions, nor did it generate any major withdrawals under its revolving credit line.

According to the terms of the transaction, the former owner of Holdings is now a direct investor in Enviva and agreed to reinvest all dividends related to 9 million of the 16 million new units in the distribution from the beginning of the third quarter of 2021 until Dividends for the fourth quarter of 2024.

Enviva expects the transition to take effect on December 31, 2021. As stated in the press release issued earlier today, the Board of Directors has set November 19, 2021 as the record date for the unitholders meeting to be held on December 17, 2021.

"After we successfully completed the simplified transaction, we are very excited about the upcoming transition to a traditional company," Keppler said. "By developing our equally outstanding business into a better corporate structure, we believe that we are creating a unique opportunity for global investors to participate in the tiered growth before us, whether through direct investment in Enviva Inc. or through our Passively invest in one of the many indexes eligible for inclusion."

The following table and description include Enviva's guidance for 2021 and 2022. Our guidance for the full year of 2021 is based on our independent actual performance from January 1, 2021 to October 14, 2021 (the cut-off date for simplified transactions), and our expected performance on a consolidated basis, including as Simplify the assets and operations acquired as part of the transaction, from the cut-off date to the balance of the year ending December 31, 2021. This 2021 full-year guidance does not, however, this reflects a potential rewrite of our historical results, which may need to be rewritten under GAAP due to simplified transactions. If recast, our performance will reflect the acquisition of our former sponsor during the three-year period beginning on January 1, 2019, even if the acquisition ends on October 14, 2021. We expect to increase the development-related costs of our former sponsors and cancel inter-company transactions, including MSA fee waivers and other forms of sponsor support, which will lead to our reformulation of the 2021 GAAP results and the 2021 guidelines described below. The difference is below the guideline. We believe that our 2021 guide provides investors with the best and most relevant information for assessing the company’s financial and operating performance because it reflects Enviva’s independent actual and historical reported performance and expected performance from the date of the end of the simplified transaction. Comprehensive basis from the deadline to the end of the year. We are currently unable to reconcile the 2021 guidelines listed below with the closest GAAP financial measures because we are neither prepared to reformulate nor come to the conclusion that it needs to be done; however, for comparability and transparency purposes , We plan to measure the results of 2021 on the basis of no readjustment based on the 2021 guidance we are reiterating.

Dividend per common unit/share

On October 15, 2021, Enviva updated its full-year guidelines for 2021 and 2022 due to simplified transactions and conversions. The 2021 full-year updated guidelines include expected post-closing results of assets and operations acquired as part of a simplified transaction, including approximately $15 million to $20 million in incremental sales, general and administrative expenses ("SG&A"). For the full year of 2022, Enviva expects that the SG&A related to the activities obtained in the simplified transaction will be between US$37 million and US$43 million.

The aforementioned SG&A includes the costs associated with the market and asset development activities previously carried out by our promoters, which are now borne by Enviva, which includes the creation and maintenance of our global customer contract pipeline and the development of potential new asset sites. In view of the quality and scale of our current customer contract pipelines, we believe that we will be able to support the addition of at least six new fully contracted wood pellet production plants and several highly value-added expansion projects, which will be approximately refurbished in about the next five years. Let’s take a look at our current production capacity. With the advantages of Enviva's current capabilities, resources and activities, we hope to build our new fully contracted wood pellet production plant with an adjusted EBITDA project investment multiple of approximately 5 times, while the historic decline in acquisition multiple is approximately 7.5X.

Due to the level of capitalization of development costs associated with new plant construction and expansion projects, the actual amount reported for SG&A may vary. Importantly, we expect that the SG&A generated by simplified transactions will decline over time, as we benefit from synergies and implement streamlining plans, and we expect that starting from 2023, we will reduce these costs on the basis of an annual operating rate. A reduction of approximately USD 5 million.

Regulators, policy makers, utilities, power generators, and industries that are difficult to decarbonize are making significant progress in achieving net zero emissions. This progress, coupled with favorable legislation and policy recommendations, supports the massive incremental use of sustainable sources of biomass, and continues to strengthen the growing long-term market opportunities for Enviva products on a global scale.

Today, Enviva announced the signing of a new 10-year out-of-take offtake contract to provide our first direct industrial customer with 60,000 MTPY of wood pellets for use in SAF and other renewable fuel refining processes such as biodiesel. The delivery of the initial phase of the contract is planned to begin in 2023, and by 2027, as customers build incremental production capacity, through a series of additional 10-year take-and-pay phases, production may increase to approximately 1.2 million metric tons. Enviva will be the only supplier for this customer's incremental wood pellet demand. The prerequisites for the initial payment are expected to be met in 2022.

As of October 1, 2021, including the initial 60,000 MTPY portion related to the recently announced industrial contract and the recently announced contract with Drax Group PLC and a large Japanese trading company, Enviva’s total weighted average remaining offtake term contract period is approximately For 14.5 years, the total contract revenue backlog exceeded 21 billion U.S. dollars.

The contract revenue backlog of more than $21 billion is complemented by a similarly large and growing customer channel, including our long-term offtake opportunities in traditional markets for biomass power and thermal energy from the UK to the EU (including emerging German and Polish markets). Opportunities), and from Asia (including Japan’s incremental demand, Taiwan’s emerging potential and South Korea’s mature opportunities) to global developing industrial sectors (including steel, cement, lime, chemicals, SAF, and biodiesel). In the next 12 months, we expect to advance negotiations and convert a large number of contract pipeline opportunities and previously signed exclusive memorandums of understanding into binding contracts.

Shaping a safe and sustainable energy future continues to be at the forefront of the global energy dialogue. In mid-October 2021, the International Energy Agency ("IEA") released a special edition of the "World Energy Outlook 2021" report to assist decision-making- Manufacturer at the United Nations Climate Change Conference ("COP26") in Glasgow, Scotland. The report warned that the current progress in clean energy is still "too slow to make global emissions continue to drop to net zero." In formulating a faster energy transition plan, the report pointed out: “Modern bioenergy plays a key role in achieving net-zero commitments.” To achieve net-zero carbon emissions by 2050, the report calls for a faster phasing out of coal In the global power sector, it is replaced by low-emission energy sources such as wind, solar, nuclear, and hydropower that complement each other. , And bioenergy. The report further pointed out: "In all cases, the role of alternative low-emission fuels such as modern bioenergy and hydrogen-based fuels is increasing...These play a key role in achieving the net zero goal..."

“The International Energy Agency’s report echoes the view of the United Nations Intergovernmental Panel on Climate Change report released a few months ago, that is, time is running out to take necessary measures to prevent further irreversible damage to our planet from climate change. "Kepler said. “Although there is no panacea for achieving net zero, sustainable wood bioenergy is a proven technology that can be massively expanded today to accelerate the energy transition. I’m very pleased to accept the invitation of COP26 next week to provide support to people from all over the world. The respected climate and energy authorities and policy makers introduced the important and recognized role of modern bioenergy as part of the global climate change solution."

Enviva is making significant progress towards the goal of achieving net zero greenhouse gas emissions in its operations by 2030, partly due to the use of 100% renewable energy in our facilities. Recently, we announced a supply contract with GreenGasUSA, an integrated renewable natural gas ("RNG") solution provider, which includes a 10-year RNG offtake agreement to decarbonize natural gas-related emissions in our operations . The methane captured and eliminated emissions under this contract is expected to offset 75% of Enviva’s current manufacturing operations’ direct emissions, or Scope 1 emissions, each year during the 10-year agreement, including an additional 10-year renewal option.

The construction of the Lucedale plant is nearing completion, and we expect commissioning to begin at the end of the fourth quarter of 2021. Once the factory is put into operation, our terminal in Pascagoula Port will continue to receive, store and load the Lucedale factory's production as planned.

The Northampton expansion project has been completed, and the Southampton expansion project continues its commissioning ramp. The construction of the Greenwood expansion project is also nearing completion. In addition, we have invested heavily in "multi-factory expansion", starting with Enviva's Sampson and Hamlet factories, followed by Cottondale.

As part of the simplified transaction, Enviva acquired projects in 15 plant sites, all of which are in different stages of evaluation and development. One of these acquired sites is the fully contracted Epes factory, currently under development. We expect to start construction in early 2022 and plan to put it into use in mid-2023. The Epes plant is designed and approved to produce more than one million tons of wood pellets, which will make it the largest wood pellet production plant in the world.

The potential production plant in Bond, Mississippi is the next most likely plant to be built, and is developing to produce 750,000 to more than 1 million MTPY wood pellets. The Bond factory is close to Pascagoula Port, allowing us to efficiently transport its production from the factory to our terminal in the port by truck. We expect that once the Epes plant is put into operation, the construction of the Bond plant will begin, but the construction time may be accelerated based on the timetable and delivery requirements of the additional off-take contract opportunities under negotiation and general market conditions.

Enviva will host a webcast and conference call on Thursday, November 4th at 10 a.m. Eastern Time to discuss the results of the third quarter of 2021. The conference call number in North America is 1 (877) 883-0383, and the international call is +1 (412) 902-6506. The password is 4195252. Alternatively, the phone can be accessed online through the webcast link provided on the Enviva event and demo website page at ir.envivabiomass.com.

Enviva (NYSE: EVA) aggregates a natural resource-wood fiber, and processes it into a transportable form-wood pellets. Enviva sells most of its wood pellets through long-term offtake or offtake contracts with reputable customers in the UK, EU and Japan. Enviva owns and operates 10 factories in Virginia, North Carolina, South Carolina, Georgia, Florida and Mississippi, with a total annual production capacity of approximately 6.2 million tons. In addition, Enviva uses its shipping terminals in Chesapeake, Virginia, Wilmington, North Carolina, and Pascagoula, Mississippi, and third-party shipping in Savannah, Georgia and Mobile, Alabama. The terminal exports wood pellets, and Panama City, Florida.

To learn more about Enviva, please visit our website: envivabiomass.com. Follow Enviva on social media @Enviva.

This press release is intended to be an eligibility notice under Section 1.1446-4(b)(4) of the Ministry of Finance Regulations. Brokers and nominees should treat the partnership's 100% distribution to non-US investors as attributable to income effectively related to US trade or business. Therefore, the distribution of partnerships to non-U.S. investors is subject to federal income tax at the highest applicable tax rate.

ENVIVA partners, LPs and subsidiaries

(In thousands, except for units)

Prepaid expenses and other liquid assets

Real estate, plant and equipment, net

Accrued liabilities and other current liabilities

Current portion of long-term debt and finance lease obligations

Long-term debt and financial lease obligations

Ordinary unitholders-the public (the issued and outstanding units on September 30, 2021 and December 31, 2020 are 31,430,928 and 26,209,862 units respectively)

Common unit holders-sponsors (13,586,375 units issued and outstanding on September 30, 2021 and December 31, 2020)

General partner (1) (no outstanding unit)

Cumulative other comprehensive income (loss)

Total Enviva Partners, LP partner's capital

Total liabilities and partner capital

ENVIVA partners, LPs and subsidiaries

Concise and comprehensive business report

(In thousands, except for the amount per unit)

Asset disposal loss

Total cost of goods sold

Related party management service agreement fee

Total general and administrative expenses

Net (loss) income before income tax concessions

Less net profit attributable to non-controlling interests

Net (loss) income attributable to Enviva Partners, LP

The net loss of each limited partner's common unit:

Weighted average number of ordinary units of limited partners in issue:

Distribution declared by the common unit of each limited partner

ENVIVA partners, LPs and subsidiaries

Concise consolidated cash flow statement

Cash flow from operating activities:

Adjust net income and net cash provided by operating activities:

Amortization of debt issuance costs, debt premiums, and original issuance discounts

Asset disposal loss

Changes in the fair value of derivatives

Unrealized (loss) gains from foreign currency transactions, net

Changes in operating assets and liabilities:

Prepaid expenses and other liquid and long-term assets

Accounts payable, accrued liabilities and other current liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Purchase property, plant and equipment

Payments related to Lucedale-Pascagoula Drop-Down, net of cash received

Payments related to Greenwood Drop-Down, deduct the cash received

Payments related to the Georgia Biomass acquisition, net of cash acquired

Net cash used for investment activities

Cash flow from financing activities:

Net senior secured revolving credit facilities

Principal payment of other long-term debts and financial lease obligations

Cash payments related to debt issuance costs and deferred issuance costs

General unit issuance income, net

Payments related to the Hamlet drop-down menu

Allocation to unit holders, allocation equivalence rights and incentive allocation rights holders

Pay withholding taxes related to the vesting of long-term incentive plans

Net cash provided by financing activities

Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of period

Cash, cash equivalents and restricted cash, at the end of the period

ENVIVA partners, LPs and subsidiaries

Concise consolidated cash flow statement (continued)

Non-cash investment and financing activities:

Real estate, plant and equipment purchased are included in accounts payable and accrued liabilities

Interest paid, minus capitalized interest

In addition to presenting our financial results in accordance with generally accepted accounting principles ("GAAP") in the United States, we also use adjusted net income, adjusted gross profit margin, adjusted gross profit margin per metric ton, adjusted EBITDA and distributable Cash flow measures our financial performance. In addition, we include here estimated financial performance for 2021 (the “2021 Guidelines”), which includes the expected post-closing performance of assets and businesses acquired as part of the simplified transaction, but does not reflect any renewal of our historical financial status. The adjustment is a result of simplifying the transaction. If GAAP requires that our historical financial data be reformulated to simplify transactions, the 2021 guidance will constitute a non-GAAP measure. Our management uses our 2021 guidelines as a supplementary measure to represent the financial results of publicly traded entities’ assets and operations.

We define adjusted net income as excluding those related to the fire at the Chesapeake Wharf in February 2018 ("Chesapeake Incident"), hurricanes Florence and Michael ("Hurricane Incident"), and early retirement. Incremental borrowing related interest expense net income debt, acquisition and integration, and other costs, based on the impact of certain sales and marketing, scheduling, sustainability, consulting, transportation, and risk management services (collectively referred to as "commercial services") Make adjustments, including simplified transactions, certain non-cash waivers for management service fees provided to us by our sponsors (collectively referred to as "MSA fee waivers"), and during the period after the simplified transaction, in accordance with the relevant support agreement Certain payments ("Support Payments"). We believe that adjusted net income enhances investors’ ability to compare the past financial performance of our underlying business with our current performance, and these gains or losses do not represent our ongoing business.

Adjusted gross profit margin and adjusted gross profit margin per metric ton

We define adjusted gross profit margin as excluding asset disposal losses, depreciation and amortization, changes in unrealized derivatives related to hedged items included in gross profit margin, non-cash unit compensation expenses, acquisition and integration costs, and Gross profit margin for other costs. This fee category is adjusted according to the impact of commercial services, including MSA fee waivers before simplified transactions and support payments after simplified transactions. We define the adjusted gross profit margin per metric ton as the adjusted gross profit margin of wood pellets sold per metric ton. We believe that the adjusted gross margin and the adjusted gross margin per metric ton are meaningful measures because they compare our revenue-generating activities with our operating costs to see the profitability based on total dollars and per metric ton And performance. The adjusted gross profit margin and the adjusted gross profit margin per metric ton will be mainly affected by our ability to meet the target output and to control and purchase and deliver wood fiber to our wood pellet production plant, as well as the direct and indirect costs related to our wood production and distribution. The impact of particles.

We define adjusted EBITDA as net income that does not include depreciation and amortization, interest expenses, income tax expenses (income), early debt refunds, non-cash unit compensation expenses, asset disposal losses, and unrealized derivatives related to the hedged item The changes are included in gross profit margin and other revenues and expenses, as well as acquisition and integration costs and other costs included in this expense category, adjusted according to the impact of business services, and include simplified MSA fee reduction before the transaction, and simplified transaction In the later period, payment is supported. Adjusted EBITDA is a supplementary measure used by our management and other users of our financial statements (such as investors, commercial banks, and research analysts) to evaluate the financial performance of our assets, regardless of financing method or capital structure .

We define distributable cash flow as adjusted EBITDA minus maintenance capital expenditures, cash income tax expenditures, and interest expenditures, deducting debt issuance costs, debt premiums, amortization of original issuance discounts, and related to Chesapeake events and hurricane events The impact of related incremental borrowings. We use distributable cash flow as a performance indicator to compare our cash generation performance in different periods, and compare the cash generation performance in a specific period with the cash distribution expected to be paid to our unitholders ( If any) to compare. We do not rely on distributable cash flow as a liquidity indicator.

Restrictions on non-GAAP financial measures

Adjusted net income, adjusted gross profit margin, adjusted gross profit margin per metric ton, adjusted EBITDA and distributable cash flow are not financial indicators presented in accordance with GAAP. We believe that the introduction of these non-GAAP financial indicators provides useful information for investors to evaluate our financial condition and operating performance. Our non-GAAP financial measures should not be considered as the most directly comparable alternative to GAAP financial measures. Each of these non-GAAP financial measures has important limitations as an analytical tool because they exclude some (but not all) items that affect the most directly comparable GAAP financial measures. You should not consider adjusted net income, adjusted gross margin, adjusted gross margin per metric ton, adjusted EBITDA or distributable cash flow separately or as a substitute for analysis based on the results of the GAAP report.

Our definition of these non-GAAP financial measures may not be comparable to similarly named measures of other companies, thereby reducing their utility.

After the simplified transaction, Enviva develops a new wood pellet plant. The estimated increase in production capacity can be expected. The adjusted EBITDA is based on internal financial analysis of the expected benefits of the incremental production capacity and cost savings we expect to achieve, and pull-down acquisitions. Such estimates are based on many assumptions, have inherent uncertainties, and are affected by major business, economic, financial, regulatory and competition risks, which may cause actual results and amounts to differ materially from such estimates. The new wood pellet production plant built by Enviva is not provided with the estimated incremental adjusted EBITDA and the closest GAAP financial indicators, net income reconciliation, because if there is no unreasonable effort, the expected net income cannot be Obtained, partly because it is currently unable to obtain the estimated amount of incremental interest expenses related to the financing and depreciation of such factories.

The following table lists the adjusted net income, adjusted gross profit margin, adjusted gross profit margin per metric ton, adjusted EBITDA and distributable cash flow for each indicated period and the reconciliation of the most directly comparable GAAP financial indicators (if applicable ).

Reconciliation of net (loss) income and adjusted net income:

Acquisition and integration costs and others

Interest expense on incremental borrowings related to the Chesapeake and hurricane events

(In thousands, except per metric ton)

Reconciliation of gross profit margin with adjusted gross profit margin and adjusted gross profit margin per metric ton:

Asset disposal loss

Changes in unrealised derivatives

Acquisition and integration costs and others

Adjusted gross profit margin per metric ton

Reconciliation of net (loss) income and adjusted EBITDA:

Asset disposal loss

Changes in unrealised derivatives

Acquisition and integration costs and others

Interest expense, deducting the amortization of debt issuance costs, debt premiums, original issuance discounts, and the impact of incremental borrowing related to the Chesapeake and hurricane events

Distributable cash flow attributable to Enviva Partners, LP

Less: Distributable cash flow attributable to incentive distribution rights

Distributable cash flow attributable to Enviva Partners and LP limited partners

Announced cash distribution attributable to Enviva Partners, LP limited partners

The distribution coverage ratio for the third quarter of 2021 is calculated on a cash basis, which means that the number of units includes 7 million units out of the 16 million units issued on October 14, 2021. These 7 million units are not part of the dividend reinvestment commitment and therefore receive quarterly cash distributions.

The following table provides the reconciliation (in millions) of Enviva's adjusted EBITDA and DCF estimated range and net income estimated range for the twelve months ended December 31, 2011:

Asset disposal loss

Changes in unrealised derivatives

MSA fee waivers and support payments

Amortization of interest expenses minus debt issuance costs, debt premiums, and original issuance discounts

The 2021 measures listed in the table include the expected post-delivery results of assets and businesses acquired as part of the simplified transaction, but do not reflect the potential readjustment of our historical operating results that the simplified transaction may lead to

The following table provides the reconciliation (in millions) of Enviva's adjusted EBITDA and DCF estimate range and net income estimate range for the twelve months ended December 31, 2022:

Asset disposal loss

Changes in unrealised derivatives

Amortization of interest expenses minus debt issuance costs, debt premiums, and original issuance discounts

This newsletter does not constitute any solicitation for voting or approval.

Regarding the conversion, Enviva filed a proxy statement with the U.S. Securities and Exchange Commission ("SEC"). Enviva also plans to submit other documents regarding the conversion to the SEC. After the SEC approves the proxy statement, the final proxy statement will be mailed to Enviva's unitholders. Enviva’s unitholders are urged to read the proxy statement (including all amendments and supplements) and other documents related to the conversion. These documents will be submitted to the US Securities and Exchange Commission after the conversion, and when they are all used. Once submitted to the SEC For such documents, unitholders will be able to obtain free copies of proxy statements and other documents containing important information through the SEC-maintained website http://www.sec.gov.

The directors and executive officers of Enviva and its general partners may be deemed to be involved in soliciting power of attorneys from Enviva's unitholders in relation to the proposed transaction. Information about such directors and executive officers is contained in Enviva's annual report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 25, 2021. Other information about the participants in the proxy solicitation and a description of their direct and indirect interests, holding shares or other methods, will be included in the proxy statement and other related materials so that they can be submitted to the SEC when they are available.

Note on forward-looking statements

The information contained herein and any oral statements related thereto include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to the current or historical fact statements contained herein, all statements regarding the conversion, Enviva’s ability to complete the conversion, the benefits of the conversion, and Enviva’s future financial performance after the conversion, as well as all statements about Enviva’s strategy, future operations, financial status, estimated revenue and Losses, estimated costs, prospects, plans and management objectives are forward-looking statements. When used in this article, including any oral statements related to this article, the words "may", "should", "will", "may", "believe", "anticipate", "intend", "estimate", " "Expect", "project", negative words of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current views on future events. Expectations and assumptions, and based on currently available information about the outcome and timing of future events. Unless otherwise required by applicable law, Enviva assumes no responsibility to modify or update any forward-looking statements, all of which are made clear by the statements in this section Limited to reflect events or circumstances after the date of this agreement. Enviva reminds you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict, many of which are beyond Enviva’s control. These risks include but are not limited to: (i) The quantity and quality of the products we can produce or purchase and sell, which may be adversely affected by factors such as operational or technical difficulties in our wood pellet production factories or deep-water marine terminals; (ii) we can sell our products Price; (iii) our ability to successfully negotiate, complete and integrate acquisitions (including related contracts) or realize the expected benefits of such acquisitions; (iv) our customers, suppliers and transportation partners have failed to pay us or perform their Contract obligations to us; (v) We were unable to successfully execute our project development, expansion and construction activities on time and within budget; (vi) The credibility of our contract counterparties; (vii) The low cost of our procurement and processing The amount of wood fiber, which may be adversely affected by (among others) supply interruptions or operational or financial difficulties suffered by our suppliers; (viii) changes in the price and availability of natural gas, coal or other energy sources; (ix) the current economy Changes in conditions; (x) unexpected ground, slope or water conditions; (xi) harsh or dangerous environmental conditions, including extreme precipitation, temperature and flooding; (xii) fire, explosion or other accidents; (xiii) domestic and foreign related Changes in laws and regulations (or interpretations) of renewable energy or low-carbon energy, forest products, international shipping, electricity, heat, or combined heat and power; (xiv) changes in the regulatory treatment of biomass in core and emerging markets; ( xv) We are unable to obtain or maintain the necessary licenses or rights for our production, transportation or terminal operations; (xvi) changes in transportation prices and availability; (xvii) changes in foreign currency exchange rates or interest rates, and our hedging arrangements are not effective Reduce the related risks we face; (xviii) risks related to our debt; (xix) our failure to maintain an effective quality control system in our wood pellet production plant and deep water marine terminal, which may cause our customers to reject us Products; (xx) changes in the quality specifications of our products requested by customers; (xxi) labor-management corrections Conflicts, unions or similar collective actions; (xxii) we are unable to hire, train or retain qualified personnel to manage and operate our business and newly acquired assets; (xxiii) the conversion may not occur, and even if it is completed, we may Unable to realize the expected benefits; (xxiv) the possibility of network and malware attacks; (xxv) we cannot borrow funds and enter the capital market; (xxvi) virus infection or epidemic diseases, such as COVID-19.

If one or more of the risks or uncertainties described herein and any oral statements related thereto occur, or if the underlying assumptions prove to be incorrect, actual results and plans may differ from those expressed in any forward-looking statements Very different. For more information about these and other factors that may affect Enviva's expectations and forecasts, please refer to Enviva's periodic filings with the U.S. Securities and Exchange Commission. The documents submitted by Enviva to the SEC are publicly available on the SEC website www.sec.gov.

Kate Walsh Vice President of Investor Relations ir@envivapartners.com

Kate Walsh Vice President of Investor Relations ir@envivapartners.com