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EVA

Enviva

$26.80

0.35 (1.32%)

16:37
10/17/16
10/17
16:37
10/17/16
16:37

Enviva Partners receives offer to acquire Sampson plant for about $170M-$180M

Enviva Partners, LP announced that Enviva Wilmington Holdings, a JV between an affiliate of Enviva Holdings, LP and affiliates of John Hancock Life Insurance Company, has offered to sell the entity which owns the wood pellet production plant in Sampson County, North Carolina, along with a 10-year, 420,000 metric ton per year off-take contract with an affiliate of DONG Energy, to the Partnership. The transaction also includes a 15-year, 95,000 MTPY off-take contract with the Hancock JV and a third-party shipping contract. As previously announced, the board of directors of the Partnership's general partner has formed a Conflicts Committee comprised solely of independent directors to evaluate the offer. The final purchase price and other terms are subject to negotiation with, and approval of, the Conflicts Committee, but the Partnership currently expects the final purchase price to be between $170M-$180M. Assuming terms of the acquisition are agreed upon, the Partnership expects the transaction to close on or about January 3, 2017. Construction of the Sampson plant is complete and the plant is producing wood pellets for sale. The Sampson plant is expected to produce approximately 500,000 MTPY of wood pellets in 2017 and to reach its full production capacity of approximately 600,000 MTPY in 2019. The Sampson plant is expected to generate incremental Adjusted EBITDA of approximately $22M for 2017, increasing to approximately $27M once full production capacity is achieved. Assuming completion of the drop-down acquisition, the weighted average remaining term of the Partnership's off-take contracts would extend to 9.7 years and our contracted revenue backlog would increase to $5.7B as of January 1, 2017.

  • 03

    Nov

EVA Enviva
$26.80

0.35 (1.32%)

07/14/16
RAJA
07/14/16
DOWNGRADE
Target $24
RAJA
Outperform
Enviva downgraded to Outperform from Strong Buy at Raymond James
Raymond James analyst Pavel Molchanov downgraded Enviva to Outperform citing year to date share performance of +26% and maintained his price target of $24 per share.
07/19/16
DADA
07/19/16
INITIATION
Target $28
DADA
Buy
Enviva initiated with a Buy at DA Davidson
DA Davidson analyst Poe Fratt initiated Enviva with a Buy and $28 price target based on its leading position in the wood/pellet/biomass market, stable cash flow, a solid balance sheet, above average distribution growth, and attractive growth prospects.
08/26/16
SBSH
08/26/16
INITIATION
SBSH
Neutral
Enviva initiated with a Neutral at Citi
Citi analyst Ryan Levine initiated Enviva with a Neutral rating, saying its strong visibility for near-term growth is offset by its exposure to long-term trends that favor other renewables over biomass.
09/22/16
GSCO
09/22/16
INITIATION
Target $27
GSCO
Neutral
Enviva initiated with a Neutral at Goldman
Goldman analyst Brian Maguire initiated Enviva with a Neutral and a $27 price target.

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