8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): April 26, 2018

SUNCOKE ENERGY, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-35243	90-0640593
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1011 Warrenville Road, Suite 600 Lisle, Illinois		60532
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code: (630) 824-1000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition.

On April 26, 2018, SunCoke Energy, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter of 2018. A copy of this press release is attached as Exhibit 99.1 and is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure.

As noted above, on April 26, 2018, the Company issued a press release announcing its financial results for the first quarter of 2018. Additional information concerning the Company’s financial results for the first quarter of 2018 will be presented in a slide presentation to investors during a previously announced teleconference on April 26, 2018. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.

The information in this report, being furnished pursuant to Items 2.02, 7.01 and 9.01 of Form 8-K, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and is not incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Safe Harbor Statement

Statements contained in the exhibits to this report that state the Company’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Company’s actual results could differ materially from those projected in such forward-looking statements. Factors that could affect those results include those mentioned in the documents that the Company has filed with the Securities and Exchange Commission.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit     No.	Description
99.1	SunCoke Energy, Inc. Press Release, announcing earnings (April 26, 2018).
99.2	SunCoke Energy, Inc. Slide Presentation regarding earnings (April 26, 2018).

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SUNCOKE ENERGY, INC.
By:	/s/ Fay West
	Fay West
	Senior Vice President and
	Chief Financial Officer

Date: April 26, 2018

EX-99.1

Exhibit 99.1

Investors and Media:

Andy Kellogg & Kory Kutzke

(630) 824-1907

SUNCOKE ENERGY, INC. ANNOUNCES STRONG FIRST QUARTER 2018 RESULTS

• Net income attributable to SXC was $8.7 million, or $0.13 per share, in the current period compared to $1.0 million, or $0.02 per share, in the prior year period

• Operating cash flow was $57.3 million in the current period compared to $29.5 million in the prior year period

• Adjusted EBITDA for the quarter was $64.0 million, up $8.4 million or 15 percent, versus the prior year period driven by improved Domestic Coke performance

• Reaffirm full-year 2018 Consolidated Adjusted EBITDA guidance of $240 million to $255 million

LISLE, Ill. (April 26, 2018) - SunCoke Energy, Inc. (NYSE: SXC) today reported results for the first quarter 2018, which reflect strong operating performance and year-over-year improvement across all segments.

“We are pleased with our first quarter 2018 operating results. We continue to execute against our objectives and our strong first quarter performance is a testament to the progress we are making. We remain on pace to achieve our full-year Adjusted EBITDA guidance,” said Mike Rippey, President and Chief Executive Officer of SunCoke Energy, Inc.

Additionally, SunCoke Energy Partners, L.P. today announced its first quarter distribution of $0.40 per unit, which was a reduction from the $0.5940 per unit fourth quarter distribution.

Rippey continued, “While this will reduce the distributions SXC receives from our ownership interest in SXCP, this will allow SXCP, our largest and most significant asset, to pay down debt and strengthen its balance sheet, which will increase long-term value to shareholders. SXC maintains a solid balance sheet with significant liquidity, positive cash flows, and ability to continue to grow the business.”

FIRST QUARTER CONSOLIDATED RESULTS

	Three Months Ended March 31,
(Dollars in millions)	2018		2017		Increase
Revenues	$	350.5	$	309.7	$	40.8
Adjusted EBITDA(1)	$	64.0	$	55.6	$	8.4
Net income attributable to SXC	$	8.7	$	1.0	$	7.7

(1) See definition of Adjusted EBITDA and reconciliation elsewhere in this release.

Revenues during the first quarter 2018 increased $40.8 million compared to the prior year period, primarily reflecting the pass-through of higher coal prices and higher sales volumes in our Domestic Coke segment.

Adjusted EBITDA during the first quarter 2018 increased $8.4 million to $64.0 million, primarily due to improved Domestic Coke performance as well as the absence of certain Corporate and Other costs incurred in the same prior year period.

Net income attributable to SXC was $8.7 million, or $0.13 per share, for the first quarter 2018, which is $7.7 million favorable to first quarter 2017 income of $1.0 million, or $0.02 per share, driven primarily by the improved operating results described above partially offset by higher interest expense due to the 2017 debt refinancing activities.

FIRST QUARTER SEGMENT RESULTS

Domestic Coke

Domestic Coke consists of cokemaking facilities and heat recovery operations at our Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants.

	Three Months Ended March 31,
(Dollars in millions, except per ton amounts)	2018		2017		Increase
Revenues	$	318.1	$	278.7	$	39.4
Adjusted EBITDA(1)	$	54.3	$	49.7	$	4.6
Sales volumes (thousands of tons)		974		946		28
Adjusted EBITDA per ton(2)	$	55.75	$	52.54	$	3.21

(1) See definition of Adjusted EBITDA and reconciliation elsewhere in this release.

(2) Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.

• Revenues increased $39.4 million, primarily reflecting the pass-through of higher coal prices as well as higher sales volumes.

• Adjusted EBITDA increased $4.6 million, driven by improved operating performance of $8.9 million at our Indiana Harbor facility primarily due to higher sales volumes and favorable coal-to-coke yields from rebuilt ovens. This improvement was partially offset by $1.2 million of unfavorable coal cost recovery at our Jewell facility as well as the timing of planned outage and maintenance costs. Additionally, higher coal moisture from adverse weather and logistics conditions resulted in lower production and energy revenue at our Granite City facility.

2

Logistics

Logistics consists of the handling and mixing services of coal and other aggregates operated by SXCP at our Convent Marine Terminal (“CMT”), Lake Terminal and Kanawha River Terminals (“KRT”). Additionally, Dismal River Terminal (“DRT”) is operated by SXC.

	Three Months Ended March 31,
(Dollars in millions)	2018		2017		Increase (Decrease)
Revenues	$	22.3	$	20.2	$	2.1
Intersegment sales	$	5.4	$	5.1	$	0.3
Adjusted EBITDA(1)	$	13.6	$	13.1	$	0.5
Tons handled (thousands of tons)(2)		5,821		5,719		102
CMT take-or-pay shortfall tons (thousands of tons)(3)		172		544		(372	)

(1) See definition of Adjusted EBITDA and reconciliation elsewhere in this release.

(2) Reflects inbound tons handled during the period.

(3) Reflects tons billed under take-or-pay contracts where services have not yet been performed.

• Revenues and Adjusted EBITDA increased by $2.1 million and $0.5 million, respectively, driven primarily by record sales volumes at CMT as well as an increase in rate on CMT take-or-pay tons in the current year period. This benefit was mostly offset by increased costs at CMT and loss of business at KRT resulting from near historic water levels during the first quarter 2018.

Brazil Coke

Brazil Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for an affiliate of ArcelorMittal.

• Revenues and Adjusted EBITDA were $10.1 million and $4.7 million, respectively, and were reasonably consistent with the prior year period.

Corporate and Other

Corporate and other expenses, which include costs related to our legacy coal mining business, were $8.6 million in first quarter 2018, an improvement of $3.0 million versus first quarter 2017. This improvement was partially driven by the absence of the $1.5 million of costs in the prior year period associated with the termination of the proposal to acquire all of the Partnership’s common units. Additionally, the current period benefited from lower black lung expenses, associated with our legacy coal mining business.

3

2018 OUTLOOK

Our 2018 guidance is as follows:

• Domestic coke production is expected to be approximately 3.9 million tons

• Consolidated Adjusted EBITDA is expected to be between $240 million to $255 million

• Adjusted EBITDA attributable to SXC is expected to be between $160 million and $171 million, reflecting the impact of public ownership in SXCP

• Capital expenditures are projected to be approximately $95 million, including $25 to $30 million related to our Indiana Harbor oven rebuild project and approximately $35 million related to our Granite City gas sharing project

• Cash generated by operations is estimated to be between $150 million and $165 million

• Cash taxes are projected to be between $7 million and $14 million

RELATED COMMUNICATIONS

We will host our quarterly earnings call at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) today. The conference call will be webcast live and archived for replay in the Investors section of www.suncoke.com. Investors may participate in this call by dialing 1-833-236-5757 in the U.S. or 1-647-689-4185 if outside the U.S., confirmation code 2998448.

SUNCOKE ENERGY, INC.

SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to the integrated steel industry under long-term, take-or-pay contracts that pass through commodity and certain operating costs to customers. We utilize an innovative heat-recovery cokemaking technology that captures excess heat for steam or electrical power generation. We are the sponsor of SunCoke Energy Partners, L.P. (“Partnership”) (NYSE: SXCP), a publicly traded master limited partnership. At March 31, 2018, we owned the general partner of the Partnership, which consists of a 2.0 percent ownership interest and incentive distribution rights, and owned a 60.3 percent limited partner interest in the Partnership. Our cokemaking facilities are located in Illinois, Indiana, Ohio, Virginia, Brazil and India. To learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com.

DEFINITIONS

• Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, loss (gain) on extinguishment of debt and/or changes to our contingent consideration liability related to our acquisition of CMT. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and may not be comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure of the operating performance and liquidity of the Company’s net assets and its ability to incur and service debt, fund capital expenditures and make distributions. Adjusted EBITDA provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures and because it eliminates items that have less bearing on our operating performance and liquidity. EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered a substitute for net income, operating cash flow or any other measure of financial performance presented in accordance with GAAP.

• Adjusted EBITDA attributable to SXC represents Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling interests.

4

FORWARD-LOOKING STATEMENTS

Some of the statements included in this press release constitute “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements include all statements that are not historical facts and may be identified by the use of such words as “believe,” “expect,” “plan,” “project,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “will,” “should” or the negative of these terms or similar expressions. Forward-looking statements are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SXC) that could cause actual results to differ materially.

Such risks and uncertainties include, but are not limited to domestic and international economic, political, business, operational, competitive, regulatory and/or market factors affecting SXC, as well as uncertainties related to: pending or future litigation, legislation or regulatory actions; liability for remedial actions or assessments under existing or future environmental regulations; gains and losses related to acquisition, disposition or impairment of assets; recapitalizations; access to, and costs of, capital; the effects of changes in accounting rules applicable to SXC; and changes in tax, environmental and other laws and regulations applicable to SXC’s businesses.

Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SXC management, and upon assumptions by SXC concerning future conditions, any or all of which ultimately may prove to be inaccurate. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. SXC does not intend, and expressly disclaims any obligation, to update or alter its forward-looking statements (or associated cautionary language), whether as a result of new information, future events or otherwise after the date of this press release except as required by applicable law.

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, SXC has included in its filings with the Securities and Exchange Commission cautionary language identifying important factors (but not necessarily all the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by SXC. For information concerning these factors, see SXC’s Securities and Exchange Commission filings such as its annual and quarterly reports and current reports on Form 8-K, copies of which are available free of charge on SXC’s website at www.suncoke.com. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this release also could have material adverse effects on forward-looking statements.

###

5

SunCoke Energy, Inc.

Consolidated Statements of Income

(Unaudited)

	Three Months Ended March 31,
	2018		2017
	(Dollars and shares in millions, except per share amounts)
Revenues
Sales and other operating revenue	$	350.5	$	309.7
Costs and operating expenses
Cost of products sold and operating expenses		270.6		234.2
Selling, general and administrative expenses		15.9		19.6
Depreciation and amortization expense		32.9		33.3
Total costs and operating expenses		319.4		287.1
Operating income		31.1		22.6
Interest expense, net		15.8		14.0
Loss on extinguishment of debt		0.3		0.1
Income before income tax expense		15.0		8.5
Income tax expense		2.0		66.2
Net income (loss)		13.0		(57.7	)
Less: Net income (loss) attributable to noncontrolling interests		4.3		(58.7	)
Net income attributable to SunCoke Energy, Inc.	$	8.7	$	1.0
Earnings attributable to SunCoke Energy, Inc. per common share:
Basic	$	0.13	$	0.02
Diluted	$	0.13	$	0.02
Weighted average number of common shares outstanding:
Basic		64.6		64.3
Diluted		65.4		65.1

6

SunCoke Energy, Inc.

Consolidated Balance Sheets

	March 31, 2018			December 31, 2017
	(Unaudited)
	(Dollars in millions, except par value amounts)
Assets
Cash and cash equivalents	$	147.0		$	120.2
Receivables		75.3			68.5
Inventories		110.1			111.0
Income tax receivable		5.4			4.8
Other current assets		9.0			6.7
Total current assets		346.8			311.2
Properties, plants and equipment (net of accumulated depreciation of $762.8 and $733.2 million at March 31, 2018 and December 31, 2017, respectively)		1,488.2			1,501.3
Goodwill		76.9			76.9
Other intangible assets, net		165.1			167.9
Deferred charges and other assets		3.0			2.8
Total assets	$	2,080.0		$	2,060.1
Liabilities and Equity
Accounts payable	$	131.1		$	115.5
Accrued liabilities		44.3			53.2
Deferred revenue		3.6			1.7
Current portion of long-term debt and financing obligation		3.8			2.6
Interest payable		17.1			5.4
Total current liabilities		199.9			178.4
Long-term debt and financing obligation		860.2			861.1
Accrual for black lung benefits		45.4			44.9
Retirement benefit liabilities		27.7			28.2
Deferred income taxes		257.7			257.8
Asset retirement obligations		14.1			14.0
Other deferred credits and liabilities		15.5			16.1
Total liabilities		1,420.5			1,400.5
Equity
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at both March 31, 2018 and December 31, 2017		—			—
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 72,076,092 and 72,006,905 shares at March 31, 2018 and December 31, 2017, respectively		0.7			0.7
Treasury stock, 7,477,657 shares at both March 31, 2018 and December 31, 2017		(140.7	)		(140.7	)
Additional paid-in capital		486.0			486.2
Accumulated other comprehensive loss		(21.3	)		(21.2	)
Retained earnings		109.9			101.2
Total SunCoke Energy, Inc. stockholders’ equity		434.6			426.2
Noncontrolling interests		224.9			233.4
Total equity		659.5			659.6
Total liabilities and equity	$	2,080.0		$	2,060.1

7

SunCoke Energy, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
	2018			2017
	(Dollars in millions)
Cash Flows from Operating Activities:
Net income (loss)	$	13.0		$	(57.7	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense		32.9			33.3
Deferred income tax expense		0.2			65.8
Payments in excess of expense for postretirement plan benefits		(0.6	)		(0.7	)
Share-based compensation expense		0.8			1.6
Loss on extinguishment of debt		0.3			0.1
Changes in working capital pertaining to operating activities:
Receivables		(6.8	)		(1.5	)
Inventories		0.9			(18.6	)
Accounts payable		14.0			26.4
Accrued liabilities		(8.7	)		(8.9	)
Deferred revenue		1.9			3.1
Interest payable		11.7			(9.5	)
Income taxes		(0.6	)		(1.1	)
Other		(1.7	)		(2.8	)
Net cash provided by operating activities		57.3			29.5
Cash Flows from Investing Activities:
Capital expenditures		(15.4	)		(12.7	)
Return of Brazilian investment		—			20.5
Net cash (used in) provided by investing activities		(15.4	)		7.8
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		45.0			—
Repayment of long-term debt		(44.9	)		(0.3	)
Debt issuance costs		(0.5	)		(0.6	)
Proceeds from revolving credit facility		53.5			10.0
Repayment of revolving credit facility		(53.5	)		(10.0	)
Repayment of financing obligation		(0.6	)		(0.6	)
Acquisition of additional interest in the Partnership		(3.4	)		—
Cash distribution to noncontrolling interests		(10.6	)		(12.4	)
Other financing activities		(0.1	)		(0.3	)
Net cash used in financing activities		(15.1	)		(14.2	)
Net increase in cash, cash equivalents and restricted cash		26.8			23.1
Cash, cash equivalents and restricted cash at beginning of period		120.2			134.5
Cash, cash equivalents and restricted cash at end of period	$	147.0		$	157.6
Supplemental Disclosure of Cash Flow Information
Interest paid	$	3.5		$	22.6
Income taxes paid, net of refunds of zero and $0.1 million in the three months ended March 31, 2018 and 2017, respectively.	$	2.3		$	1.5

8

SunCoke Energy, Inc.

Segment Financial and Operating Data

The following tables set forth financial and operating data for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
	(Dollars in millions, except per ton amounts)
Sales and other operating revenues:
Domestic Coke	$	318.1		$	278.7
Brazil Coke		10.1			10.8
Logistics		22.3			20.2
Logistics intersegment sales		5.4			5.1
Elimination of intersegment sales		(5.4	)		(5.1	)
Total sales and other operating revenues	$	350.5		$	309.7
Adjusted EBITDA(1):
Domestic Coke	$	54.3		$	49.7
Brazil Coke		4.7			4.4
Logistics		13.6			13.1
Corporate and Other(2)		(8.6	)		(11.6	)
Total Adjusted EBITDA	$	64.0		$	55.6
Coke Operating Data:
Domestic Coke capacity utilization		92	%		91	%
Domestic Coke production volumes (thousands of tons)		962			948
Domestic Coke sales volumes (thousands of tons)		974			946
Domestic Coke Adjusted EBITDA per ton(3)	$	55.75		$	52.54
Brazilian Coke production—operated facility (thousands of tons)		441			435
Logistics Operating Data:
Tons handled (thousands of tons)(4)		5,821			5,719
CMT take-or-pay shortfall tons (thousands of tons)(5)		172			544

(1) See definition of Adjusted EBITDA and reconciliation to GAAP elsewhere in this release.

(2) Corporate and Other includes the activity from our legacy coal mining business, which incurred Adjusted EBITDA losses of $2.3 million and $3.5 million during the three months ended March 31, 2018 and 2017, respectively.

(3) Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.

(4) Reflects inbound tons handled during the period.

(5) Reflects tons billed under take-or-pay contracts where services have not yet been performed.

9

SunCoke Energy, Inc.

Reconciliations of Non-GAAP Information

Net Cash Provided by Operating Activities

to Net Income and Adjusted EBITDA

	Three Months Ended March 31,
	2018		2017
	(Dollars in millions)
Net cash provided by operating activities	$	57.3	$	29.5
Subtract:
Depreciation and amortization expense		32.9		33.3
Deferred income tax expense		0.2		65.8
Loss on extinguishment of debt		0.3		0.1
Changes in working capital and other		10.9		(12.0	)
Net income (loss)	$	13.0	$	(57.7	)
Add:
Depreciation and amortization expense	$	32.9	$	33.3
Interest expense, net(1)		15.8		13.7
Loss on extinguishment of debt		0.3		0.1
Income tax expense		2.0		66.2
Adjusted EBITDA		64.0		55.6
Subtract: Adjusted EBITDA attributable to noncontrolling interest(2)		19.0		21.6
Adjusted EBITDA attributable to SunCoke Energy, Inc.	$	45.0	$	34.0

(1) In conjunction with the adoption of ASU 2017-07, the non-service type expense associate with the postretirement benefit plans was excluded from operating income and recorded in interest expense, net on the Consolidated Statements of Income during the periods presented. Amounts in prior periods were immaterial and therefore were not reclassified in the reconciliation of Adjusted EBITDA to net income and net cash provided by operating activities.

(2) Reflects noncontrolling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders.

10

SunCoke Energy, Inc

Reconciliation of Non-GAAP Information

Estimated 2018 Net Cash Provided by Operating Activities to Estimated Net Income

and Estimated Consolidated Adjusted EBITDA

	2018
	Low			High
Net cash provided by operating activities	$	150		$	165
Subtract:
Depreciation and amortization expense		137			129
Changes in working capital and other		(22	)		(14	)
Net income	$	35		$	50
Add:
Depreciation and amortization expense		137			129
Interest expense, net		63			63
Income tax expense		5			13
Adjusted EBITDA	$	240		$	255
Subtract:
Adjusted EBITDA attributable to noncontrolling interests(1)		80			84
Adjusted EBITDA attributable to SunCoke Energy, Inc.	$	160		$	171

(1) Reflects non-controlling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders.

11

EX-99.2

SunCoke

Energy, Inc.

Q1 2018 Earnings

Conference Call

April 26, 2018

Exhibit 99.2

Forward-Looking Statements

2

SXC Q1 2018 Earnings Call

This slide presentation should be reviewed in conjunction with the First Quarter 2018 earnings release of SunCoke Energy, Inc. (SXC) and conference call held on

April 26, 2018 at 11:00 a.m. ET.

Except for statements of historical fact, information contained in this presentation constitutes “forward-looking statements” as defined in Section 27A of the

Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended.  Such forward-looking statements are based upon

information currently available, and express management’s opinions, expectations, beliefs, plans, objectives, assumptions or projections with respect to

anticipated future performance of SXC or SunCoke Energy Partners, L.P. (SXCP).  These statements are not guarantees of future performance and undue reliance

should not be placed on them.  Although management believes that its plans, intentions and expectations reflected in, or suggested by, the forward-looking

statements made in this presentation are reasonable, no assurance can be given that these plans, intentions or expectations will be achieved when anticipated

or at all.  

Forward-looking statements often may be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,”

“anticipate,” “contemplate,” “estimate,” “predict,” “guidance,” “forecast,” “potential,” “continue,” “may,” “will,” “could,” “should,” or the negative of these

terms or similar expressions.  Such statements are subject to a number of known and unknown risks, and uncertainties, many of which are beyond the control

of SXC and SXCP, or are difficult to predict, and may cause actual results to differ materially from those implied or expressed by the forward-looking statements.

Each of SXC and SXCP has included in its filings with the Securities and Exchange Commission (SEC) cautionary language identifying important factors (but not

necessarily all the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement.  Such factors

include, but are not limited to: changes in industry conditions; the ability to renew current customer, supplier and other material agreements; future liquidity,

working capital and capital requirements; the ability to successfully implement business strategies and potential growth opportunities; the impact of

indebtedness and financing plans, including sources and availability of third-party financing; possible or assumed future results of operations; the outcome of

pending and future litigation; potential operating performance improvements and the ability to achieve anticipated cost savings from strategic revenue and

efficiency initiatives.  For more information concerning these factors, see the SEC filings of SXC and SXCP.  All forward-looking statements included in this

presentation are expressly qualified in their entirety by the cautionary statements contained in such SEC filings.  

The forward-looking statements in this presentation speak only as of the date hereof.  Except as required by applicable law, SXC and SXCP do not have any

intention or obligation to revise or update publicly any forward-looking statement (or associated cautionary language) made herein, whether as a result of new

information, future events, or otherwise after the date of this presentation.

This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures.  Furthermore, the

non-GAAP financial measures presented herein may not be consistent with similar measures provided by other companies. Reconciliations of non-GAAP

financial measures to GAAP financial measures are provided in the Appendix at the end of the presentation.  Investors are urged to consider carefully the

comparable GAAP measures and the reconciliations to those measures provided in the Appendix.  These data should be read in conjunction with the periodic

reports of SXC and SXCP previously filed with the SEC.  

Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals indicated and percentages may not precisely reflect

the absolute figures for the same reason.

Industry and market data used in this presentation have been obtained from industry publications and sources as well as from research reports prepared for

other purposes.  SXC and SXCP have not independently verified the data obtained from these sources and cannot assure investors of either the accuracy or

completeness of such data.

Q1 2018 Highlights

Achieved strong safety and operating performance across

coke and logistics fleet in line with expectations

Strong Q1 ’18 Adj. EBITDA of $64.0M; ended quarter with

ample liquidity position of >$370M of liquidity

Began 2018 oven rebuild campaign at IHO; improved IHO

production due to sustained operating performance from

rebuilt ovens

Handled record coal export volumes at CMT; Increasing

2018 CMT total throughput expectations to 10.0Mt -

10.5Mt

Remain well positioned to achieve FY 2018 Adj. EBITDA

guidance of $240M to $255M

3

SXC Q1 2018 Earnings Call

Q1 2018 Financial Performance

(1)

For a definition and reconciliation of Adjusted EBITDA, please see appendix.

(2)

Coke Adjusted EBITDA includes Domestic Coke and Brazil Coke.

(3)

Corporate and Other includes the results of our former coal mining business, contributing Adjusted EBITDA losses of $2.3 million

and $3.5 million to Corporate and Other during the

three months ended March 31, 2018 and 2017, respectively.

Q1 ‘18 EPS of $0.13, up from $0.02 in

the prior year quarter

•

Strong cokemaking

operating

performance, partially offset by higher

interest expense

Consolidated Adj. EBITDA

(1)

of $64.0M

up $8.4M or 15%; represents strongest

first quarter since IPO

•

Coke operations up $4.9M, primarily

driven by strong operating performance at

Indiana Harbor

•

Improved throughput volume at CMT

•

Lower Corporate and Other costs

4

SXC Q1 2018 Earnings Call

($/share)

($ in millions)

Earnings per Share

(diluted)

Consolidated

Adj. EBITDA

(1)

$64.0

Q1 ‘18

Q1 ‘17

$55.6

Q1 2018 Earnings

Q1 ‘18

Q1 ‘17

$0.02

$0.13

($ in millions, except volumes)

Q1 '18

Q1 '17

Q1 '18 vs.

Q1 '17

Domestic Coke Sales Volumes

974

946

28

Logistics Volumes

5,821

5,719

102

Coke Adj. EBITDA

(2)

$59.0

$54.1

$4.9

Logistics Adj. EBITDA

$13.6

$13.1

$0.5

Corporate and Other Adj. EBITDA

(3)

($8.6)

($11.6)

$3.0

Adjusted EBITDA (Consolidated)

(1)

$64.0

$55.7

$8.4

Adjusted EBITDA

(1)

–

Q1 ‘17 to Q1 ‘18

$55.6

$64.0

$8.9

$0.5

$3.0

Logistics

Q1 2017

Adj. EBITDA

Indiana Harbor

($4.0)

Domestic & Brazil Coke

(excl. IHO)

Corporate and Other

Q1 2018

Adj. EBITDA

Q1 ‘18 performance driven by solid domestic coke production, strong

CMT volume, and lower corporate costs

(1)

For a definition and reconciliation of Adjusted EBITDA, please see appendix.

(2)

Corporate and Other includes the results of our former coal mining business, contributing Adjusted EBITDA losses of $2.3 million and $3.5 million to Corporate and Other during

the three months ended March 31, 2018 and 2017, respectively.

(1)

(1)

•

$1.5M –

Lapping of one-

time transaction costs

•

$1.2M –

Lower legacy

coal mining expenses

5

SXC Q1 2018 Earnings Call

•

$5.8M –

Strong volume and yield

from rebuilt ovens

•

$2.7M –

Benefit from increased

O&M recovery

•

$1.9M –

Higher throughput

volume at CMT

•

($0.7M) –

Impact of high

water conditions

•

($0.4M) –

Net lower volumes

at domestic terminals

•

($2.4M) –

Timing of planned outage and

maintenance costs

•

($1.2M) –

Jewell unfavorable coal cost recovery

•

($0.8M) –

Higher coal moisture from adverse

weather and logistics conditions resulted in lower

production and energy revenue at Granite City

($

in

millions)

(2)

Domestic Coke Business Summary

Solid Q1 ‘18 cokemaking

performance supports FY 2018 outlook

Domestic Cokemaking Performance

177

179

182

183

179

204

205

204

213

230

259

260

267

267

245

159

158

174

171

156

149

148

154

148

153

$56/ton

Q4 ‘17

982

962

950

$46/ton

Q1 ‘17

948

$53/ton

$41/ton

Q3 ‘17

981

$57/ton

Q2 ‘17

Q1 ‘18

Haverhill

Indiana Harbor

Jewell

Granite City

Middletown

Adjusted EBITDA/ton

946K

953K

975K

977K

Sales

Tons

(Production, Kt)

974K

Delivered Adj. EBITDA/ton

(1)

of

~$56 on 962K tons production

•

Strong yield performance; partially

offset by planned outage at Haverhill

Sustained operating performance

from rebuilt ovens at IHO

•

Rebuilt C & D batteries continue to

perform as expected; each battery

producing at >300k tons annual run-

rate

•

Significant improvement on both

production and yield

•

2018 A-battery rebuild campaign

underway

(1)

For a definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA per ton, please see appendix.

6

SXC Q1 2018 Earnings Call

(1)

Logistics Business Summary

Improved Q1 ‘18 performance driven primarily by

significant increase in CMT volumes

2,075

1,827

1,762

2,384

2,528

3,644

3,346

3,372

3,206

3,293

Q4 ‘17

5,821

Q1 ‘18

$13.6M

5,590

$35.1M

Q3 ‘17

5,134

$12.6M

Q2 ‘17

5,173

$10.0M

Q1 ‘17

5,719

$13.1M

CMT (coal & liquids)

Total Logistics Adj. EBITDA ($M)

Logistics (ex. CMT)

(Tons Handled, Kt)

Delivered Q1 ‘18 Adj. EBITDA of

$13.6M

•

Solid volumes due to continued

favorable coal export market dynamics

•

Increase CMT 2018 base take-or-pay

volumes

to

8.5Mt

-

9.0Mt

from

6.5Mt;

total

throughput

up

to

10.0Mt

-

10.5Mt

Convent contributed $12.0M to Q1

‘18 Adjusted EBITDA

•

Highest quarterly volume despite near-

historic water levels adversely

impacting operations

•

Adj. EBITDA does not include $1.2M of

deferred revenue in Q1 volume

shortfall to be recognized in Q4 ‘18

Logistics Performance

$10.9M

$7.2M

$9.7M

$29.5M

CMT Adj.

EBITDA

$12.0M

(1)

(1)

7

SXC Q1 2018 Earnings Call

(1)

Adjusted EBITDA includes Logistics deferred revenue when it is recognized as GAAP revenue.  For a

definition and reconciliation of Adjusted EBITDA, please see appendix.

(2)

Q4 2017 Adjusted EBITDA includes $16.4M recognition of previously deferred revenue related to

take-or-pay shortfalls throughout 2017.

(2)

Q1 2018 Liquidity

$57.3

$147.0

$120.2

Consol. Cash

@ Q1 2018

Other

($1.1)

Cash Distributions

to Public

($10.6)

SXCP Unit

Purchases

($3.4)

CapEx

($15.4)

Net Cash Provided

by Ops. Activities

Consol. Cash

@ YE 2017

Maintain strong consolidated liquidity of >$370M,

including ~$180M of SXC standalone liquidity

8

SXC Q1 2018 Earnings Call

•

Distribution of

$0.5940/unit paid

in Q1 ‘18

Consolidated 

Revolver

Availability:

$227M

(Consolidated)

Q1 ‘18

Q4 ‘17

Total Debt

$887M

$887M

Gross Leverage

(1)

3.58x

3.78x

(1)

Gross leverage for Q1 2018 calculated using midpoint of FY 2018E Consolidated Adjusted EBITDA guidance; Q4 2017 based on 2017 actuals

•

Strong Q1 operating

performance

•

$12.4M benefit from

change in working

capital primarily due to

timing of SXCP senior

note interest payments

•

$7.3M Granite City

Remediation CapEx

•

$3.2M IHO oven

rebuild

SXC Capital Priorities

SXC maintains significant financial flexibility and will generate positive CF in 2018

SXCP’s

BoD

recently

declared

modified

capital

allocation

policy,

which

reduced

quarterly distributions to $0.40/unit, or $1.60/unit annually

•

SXCP will use savings to replenish cash and reduce debt to achieve its 3.5x or lower

leverage target by year-end 2019; max leverage covenant step-down to 4.0x in June 2020

•

SXC’s annual GP/LP/IDR cash flows lower by ~$28M on full-year basis vs. previous

distribution

Expect SXC will continue to generate sufficient positive cash flow in 2018 and

beyond

SXC also has significant stand-alone liquidity of ~$180M, including $106M of cash

and $74M revolver capacity as of Q1 2018

•

Minimal debt attributable to SXC ($44.7M as of Q1 2018)

Continuing to deploy capital to most efficiently maximize value for shareholders

•

Maintain flexibility to fund future growth projects, including potential tuck-in M&A

9

SXC Q1 2018 Earnings Call

2018 Key Initiatives

•

Drive strong operational & safety performance while optimizing asset utilization

Deliver Operations Excellence and Optimize Asset Base

•

Complete 67 planned A-battery oven rebuilds and deliver near-breakeven FY ‘18 Adj. EBITDA

Complete 2018 Indiana Harbor Oven Rebuild Campaign

•

Secure

further

new

business

to

contribute

towards

$5M

–

$10M

EBITDA

target

in

next

2

years

Leverage CMT Capabilities to Diversify Customer & Product Mix

•

Achieve

$240M

–

$255M

Consol.

Adj.

EBITDA

and

$150M

–

$165M

Op.

Cash

Flow

guidance

Accomplish 2018 Financial Objectives

10

SXC Q1 2018 Earnings Call

QUESTIONS

Investor Relations

630-824-1907

www.suncoke.com

APPENDIX

Definitions

Adjusted EBITDA

represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any loss (gain) on

extinguishment of debt, impairments and/or changes to our contingent consideration liability related to our acquisition of CMT.  EBITDA and

Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and may not be

comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure of the

operating performance and liquidity of the Company's net assets and its ability to incur and service debt, fund capital expenditures and make

distributions.  Adjusted EBITDA provides useful information to investors because it highlights trends in our business that may not otherwise be

apparent when relying solely on GAAP measures and because it eliminates items that have less bearing on our operating performance and liquidity. 

EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered a substitute for net income,

operating cash flow or any other measure of financial performance presented in accordance with GAAP.

EBITDA

represents earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA attributable to SXC/SXCP

represents Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling interests.

Adjusted

EBITDA/Ton

represents

Adjusted

EBITDA

divided

by

tons

sold/handled.

14

SXC Q1 2018 Earnings Call

Reconciliation to Adjusted EBITDA

(1)

The Partnership recorded a loss on extinguishment of debt as a result of its debt refinancing activities which occurred during the second quarter of 2017.

(2)

In conjunction with the adoption of ASU 2017-07, the non-service type expense associate with the postretirement benefit plans was excluded from operating income and recorded in

interest expense, net on the Consolidated Statements of Operations during the periods presented.

Amounts in prior periods were immaterial and therefore were not reclassified in the

reconciliation of Adjusted EBITDA to net income and net cash provided by operating activities.

(3)

As a result of changes in the fair value of the contingent consideration liability, the Partnership recognized a benefit of $1.7

million during 2017.

(4)

In 2014, we finalized the required permitting and engineering plan for a potential new cokemaking

facility to be constructed in Kentucky. However, in June 2017, due to our focus on

renewing our existing customer contracts and the lack of any long-term customer commitment for a majority of the facility’s capacity, we decided to terminate the project. As a result,

during the second quarter of 2017, the Company wrote-off previously capitalized engineering and land deposit costs of $5.3 million.

(5)

Reflects non-controlling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders.

15

SXC Q1 2018 Earnings Call

($ in millions)

Q1 '17

Q2 '17

Q3 '17

Q4 '17

FY '17

Q1 '18

Net cash provided by operating activities

29.5

$   

24.9

$   

73.9

$   

20.2

$   

148.5

$ 

57.3

$    

Depreciation, depletion and amortization expense

33.3

33.3

30.6

31.0

128.2

32.9

Loss / (gain) on extinguishment of debt

(1)

0.1

20.2

0.1

-

20.4

0.3

Deferred income tax (benefit)/expense

65.8

14.0

(9.4)

(157.6)

(87.2)

0.2

Changes in working capital and other

(12.0)

(11.1)

33.8

(27.1)

(16.4)

10.9

Net Income (loss)

(57.7)

$ 

(31.5)

$ 

18.8

$   

173.9

$ 

103.5

$ 

13.0

$    

Depreciation, depletion and amortization expense

33.3

33.3

30.6

31.0

128.2

32.9

Loss / (gain) on extinguishment of debt

(1)

0.1

20.2

0.1

-

20.4

0.3

Interest expense, net

(2)

13.7

15.2

16.1

15.6

60.6

15.8

Income tax expense / (benefit)

66.2

4.7

(1.5)

(151.0)

(81.6)

2.0

Contingent consideration adjustments

(3)

-

0.3

(2.0)

-

(1.7)

-

Expiration of land deposits and write-off of costs related to

potential new cokemaking facility

(4)

-

5.3

-

-

5.3

-

Adjusted EBITDA

55.6

$   

47.5

$   

62.1

$   

69.5

$   

234.7

$ 

64.0

$    

Adjusted EBITDA attributable to noncontrolling interest

(5)

(21.6)

(17.5)

(21.9)

(25.4)

(86.4)

(19.0)

Adjusted EBITDA attributable to SXC

34.0

$   

30.0

$   

40.2

$   

44.1

$   

148.3

$ 

45.0

$    

Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton

($ in millions, except per ton data)

Domestic

Coke

Brazil Coke

Logistics

Corporate

and Other

(1)

Consolidated

Q1 2018

Adjusted EBITDA

$54.3

$4.7

$13.6

($8.6)

$64.0

Sales Volume (thousands of tons)

974

441

5,821

Adjusted EBITDA per Ton

$55.75

$10.66

$2.34

FY 2017

Adjusted EBITDA

$188.9

$18.2

$70.8

($43.2)

$234.7

Sales Volume (thousands of tons)

3,851

1,761

21,616

Adjusted EBITDA per Ton

$49.05

$10.34

$3.28

Q4 2017

Adjusted EBITDA

$39.6

$4.7

$35.1

($9.9)

$69.5

Sales Volume (thousands of tons)

977

445

5,590

Adjusted EBITDA per Ton

$40.53

$10.57

$6.28

Q3 2017

Adjusted EBITDA

$55.6

$4.6

$12.6

($10.7)

$62.1

Sales Volume (thousands of tons)

975

444

5,134

Adjusted EBITDA per Ton

$57.03

$10.36

$2.45

Q2 2017

Adjusted EBITDA

$44.0

$4.5

$10.0

($11.0)

$47.5

Sales Volume (thousands of tons)

953

437

5,173

Adjusted EBITDA per Ton

$46.17

$10.30

$1.93

Q1 2017

Adjusted EBITDA

$49.7

$4.4

$13.1

($11.6)

$55.6

Sales Volume (thousands of tons)

946

435

5,719

Adjusted EBITDA per Ton

$52.54

$10.11

$2.29

Reconciliation of Segment Adjusted

EBITDA and Adjusted EBITDA per ton

(1)

Corporate and Other includes the results of our legacy coal mining business which, incurred Adjusted EBITDA losses of $2.3 million and $3.5

million during the three months ended March 31, 2018 and 2017, respectively.

16

SXC Q1 2018 Earnings Call

Balance Sheet & Debt Metrics

(1)

Represents mid-point of FY 2018 guidance for Adj. EBITDA (Consolidated), Adj. EBITDA attributable to SXCP, and Adj. EBITDA attributable to SXC.

17

SXC Q1 2018 Earnings Call

($ in millions)

SXC

Consolidated

Attributable

to SXCP

Balance

Attributable

to SXC

Cash

147

42

106

Available Revolver Capacity

227

153

74

Total Liquidity

374

195

179

Gross Debt (Long and Short-term)

887

842

45

Net Debt (Total Debt less Cash)

740

801

(61)

FY 2018E Adj. EBITDA Guidance

(1)

247.5

220.0

165.5

Gross Debt / FY 2017E Adj. EBITDA

3.58x

3.83x

0.27x

Net Debt / FY 2017E Adj. EBITDA

2.99x

3.64x

0.00x

As of 03/31/2018

2018

2019

2020

2021

2022

2023

2024

2025

Consolidated

Total

SXCP Revolver

-

-

-

-

130.0

-

-

-

130.0

SXCP Sr. Notes

-

-

-

-

-

-

-

700.0

700.0

SXCP Sale Leaseback

2.0

2.8

7.3

-

-

-

-

-

12.1

SXC Term Loan

0.8

1.1

3.4

3.4

36.0

-

-

-

44.7

Total

2.8

$    

3.9

$    

10.7

$  

3.4

$    

166.0

$

-

$    

-

$    

700.0

$

886.8

$        

As of

Q1 2018

($ in millions)

SXC & SXCP Debt Maturities Schedule

2018 Guidance Summary

Metric

2017

Results

2018

Guidance

(published Jan. ‘18)

Adjusted

EBITDA

(1)

Consolidated

Attrib. to SXC

$234.7M

$148.3M

$240M –

$255M

$160M –

$171M

Capital

Expenditures

(2)

$74.5M

~$95M

Domestic Coke Production

3.86 Mt

~3.9 Mt

Dom. Coke

Adj. EBITDA/ton

$49 /

ton

$50 –

$52 /

ton

Operating Cash Flow

$148.5M

$150M –

$165M

Cash Taxes

(3)

$6.8M

$7M –

$14M

(1)

For a definition and reconciliation of Adjusted EBITDA, please see other appendix materials.

(2)

FY 2017 results include $18.3M for Granite City gas sharing project and excludes $1.1M of capitalized interest.

(3)

Included in Operating Cash Flow.

Guidance remains unchanged from January 2018 announcement

18

SXC Q1 2018 Earnings Call

2018 Capital Expenditures

19

SXC Q1 2018 Earnings Call

(1)

2017 ongoing CapEx

includes approximately $51M in ongoing Coke Capex and $3M ongoing Logistics. 

(2)

2018 ongoing CapEX

includes approximately $54M in ongoing Coke CapEx

and $5M ongoing Logistics.

2017 CapEx

($ in millions)

SXC

SXCP

Consolidated

Ongoing (ex. IHO rebuilds)

$6

$19

$25

IHO Oven Rebuild Initiative

30

0

30

Total Ongoing CapEx

(1)

$36

$19

$55

Other / Expansion

0

1

1

Environmental Project (Gas Sharing)

0

18

18

Total CapEx

$36

$38

$74

2018 Expected CapEx

($ in millions)

SXC

SXCP

Consolidated

Ongoing (ex. IHO rebuilds)

$7

$25

$32

IHO Oven Rebuild Initiative

27

0

27

Total Ongoing CapEx

(2)

$34

$25

$59

Other / Expansion

0

1

1

Environmental Project (Gas Sharing)

0

35

35

Total CapEx

$34

$61

$95

2018E Guidance Reconciliation

(1)

Reflects non-controlling interest in Indiana Harbor and the portion of the Partnership owned by public unitholders.

20

SXC Q1 2018 Earnings Call

($ in millions)

2018E

Low

2018E

High

Net cash provided by Operating activities

$150

$165

Depreciation and amortization expense

(137)

(129)

Changes in working capital and other

22

14

Net Income

$35

$50

Depreciation and amortization expense

137

129

Interest expense, net

63

63

Income tax expense

5

13

Adjusted EBITDA (Consolidated)

$240

$255

Adjusted EBITDA attributable to noncontrolling interests

(1)

(80)

(84)

Adjusted EBITDA attributable to SXC

$160

$171

Thermal Coal Export Profitability

$86

$41

BTU

Premium

API 2

Benchmark

($8)

Mine

Netback

($8)

Ocean

Freight

Sulfur

Penalty

($13)

Metric to

Short Conversion

($21)

Inland

Freight

$5

(in $ per metric tonne)

Solid API2 benchmark price should continue to support

CMT ILB producers’ competitiveness in maintaining viable exports

(1)

Netback calculation example assuming $86 per metric tonne

prompt API 2 benchmark (Q1 2018 average).

(2)

Ocean Freight for 70,000 metric tonne US Gulf/ARA Coal Panamax freight.

(3)

Consists of CN rail transportation from ILB coal mines to CMT and terminal transloading costs.

(1)

(2)

Believe ILB export thermal

solidly profitable at Q1 ‘18

API2 benchmark pricing of

~$86/t

•

Based on average ILB cash

cost, netback calculation

implies attractive margins

CMT well-positioned to

serve existing ILB thermal

coal producers

(in $ per short ton)

(3)

21

SXC Q1 2018 Earnings Call