Exhibit 99.1
2013 Citi One-on-One
MLP / Midstream
Infrastructure Conference
August 21-22, 2013
Forward-Looking Statements
Some of the information included 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. All statements in this presentation that express opinions, expectations, beliefs, plans, objectives, assumptions or projections with respect to anticipated future performance of SunCoke
Energy, Inc. (“SunCoke”) or SunCoke Energy Partners, L.P. (“Partnership”), in contrast with statements of historical facts, are forward-looking statements. Such forward-looking statements are based on management’s beliefs and assumptions and on information currently available. Forward-looking statements include information concerning possible or assumed future results of operations, business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and may be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “will,” “should” or the negative of these terms or similar expressions.
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. Moreover, such statements are subject to a number of assumptions, risks and uncertainties. Many of these risks are beyond the control of SunCoke and the Partnership, and may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Each of SunCoke and the Partnership has included in its filings with the Securities and Exchange Commission (including, in the case of the Partnership, its Form S-1) 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. For more information concerning these factors, see the Securities and Exchange Commission filings of SunCoke and the Partnership. All forward-looking statements included in this presentation are expressly qualified in their entirety by such cautionary statements. Although forward-looking statements are based on current beliefs and expectations, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date hereof. Neither SunCoke nor the Partnership has any intention or obligation to update publicly any forward-looking statement (or its associated cautionary language) whether as a result of new information or future events or after the date of this presentation, except as required by applicable law.
This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. 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.
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About SunCoke Energy Partners, LP (SXCP)
First coke-producing and
steel-industry facing MLP
Coke is essential in blast furnace steel production
General Partner is SunCoke Energy (SXC), the largest independent coke producer in the Americas
65% ownership interest in two modern facilities representing ~1.1 million tons of capacity
Focused on driving distribution growth
7% increase over MQD by Q4 ’13 on strong operations performance
Pending coal logistics acquisitions to close in Q3/4 2013
Opportunities across steel value chain (coke, coal logistics, iron ore processing)
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Our Sponsor (SXC)
SXC owns:
2% GP interest 56% LP interest 100% IDRs
Domestic Coal Mining
(~114 tons Int’l Coke
SXC provides via Coke reserves)
Omnibus Agreement:
Commercial contract support; 5 yrs from IPO Middletown
Preferential rights to coke (35% interest) growth in US & Canada
First rights to SXC coke
Coal Haverhill
Cokemaking assets, if divested
Logistics (35% interest)
Represents ~2/3 of
KRT Granite City Domestic Middletown
(expected close Cokemaking
Q4 ‘13) (65% interest)
Represents EBITDA ~1/3 of Domestic Indiana Harbor
Cokemaking
Lakeshore Haverhill EBITDA
(expected close (65% interest)
Q3 ’13)
Jewell Coke
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Modern Cokemaking Facilities
Backed by Long-Term Contracts
Modern facilities that meet
environmental standards
Average facility age is 4 years, compared to industry average of 37 years
Facility completion/start-up
Middletown: Q4 2011
Haverhill 2: 2008
Haverhill 1: 2005
Long-term contracts with leading
steelmakers
Average remaining contract life of ~13 years
No expiration before 2020
Customers:
Middletown Operations
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Leading Cokemaking Technology
Our industry-leading cokemaking technology meets U.S. EPA Maximum Achievable
Control Technology (MACT) standards and makes larger, stronger coke
Industry-leading
environmental
signature
Leverage negative pressure to substantially reduce emissions
Convert waste heat into steam and electrical power
Generate about 9 MW of electric power per 110,000 tons of annual coke production
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Attractive Cokemaking Business Model
Cash flow stability through coke sales agreements
Take-or-pay
Termination Provisions / (1)
Margin protection
(i.e., pass-thru
provisions) against
changes in:
Cost of Coal
SunCoke
Contract Cost of Coal Blending
& Transportation
Attributes Operating &
Maintenance Costs
Taxes (other than
income taxes)
Government
Regulation
Fixed Fee for
Return on Capital
(1) AK Steel contract at Haverhill 2 has termination right only with permanent closure of blast furnace steelmaking at their Ashland, KY facility and no
replacement production elsewhere. AK must also provide 2-year notice and pay significant fee if termination right exercised prior to 2018.
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Reliable Operations /
Continuous Improvement
The SunCoke Way
Implement best
1 2 Master coal science 3 Improve technology
practices • Use advanced prediction models • Increase production flexibility
• Standardize operating and to optimize coal blend and • Decrease equipment cost
maintenance practices to achieve maximize yield and lengthen asset life
reliable, predictable operations
• Compiled comprehensive database of U.S. coals
Blend • Developed model to optimize coal blends for cost and
optimization quality targets
Yield • Enhanced oven controls and process automation
improvement • Improved coal/coke handling practices and equipment
• Maximize power recovery
• Maximum natural gas/injectant capability for customers
Larger and • Blast furnaces using 100% SXC/SXCP coke achieve some of
stronger coke best fuel rates in industry
Lower operating • Simple operation; no by-product or waste water treatment plant
cost • Less operating and maintenance manpower requirements
• Gross operating cost ~ 1/2 that of typical by-product batteries
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Near Term Distribution Growth
Strong operations provide immediate distribution growth with pending acquisitions supporting additional future increases
Distribution per unit Outlook
($/unit)
outlook ex-Lakeshore or KRT acquisitions
[Graphic Appears Here]
Minimum quarterly
distribution $0.4125
$0.4225
$0.4325
$0.4425
$0.3071
May ’13 (1) Aug ’13 Nov ’13 Feb ’14
(1) Reflects proration of minimum quarterly distribution rate for the January 23, 2013 closing of the SXCP IPO
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Pending Acquisitions
$116M in acquisitions to add ~$17M annualized EBITDA
No units issued; cash/debt financing
Lakeshore to add
$4M annual DCF or
$0.12/unit
KRT to add
$6M annual DCF or
$0.18/unit
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SXCP Highlights
SXCP Attributes Unitholder Value
Modern, High-Quality
Assets Solid
Distributable
Cash Flow Base
Stable Cash Flows
Near-term
Strong Sponsor Support Distribution
Growth
Financial Flexibility
Potential Growth
via Disaggregation
First Steel-Facing MLP of Steel Value Chain
Advantage
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OUR MARKET OPPORTUNITY
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Steel Industry Dynamics
Challenging Steel Steelmakers’ and Raw Material
Industry Environment Suppliers’ Strategic Choices
Slowing Operating
China and cost
weak Europe reductions
Leveraged
balance Global
sheets overcapacity
Capital cost
reductions
Skeptical
capital Threat of
markets imports Efficient
capital
Lack of allocation
pricing
power
Lower raw material costs
Implement operating efficiencies
Reduce ongoing capital needs
Allocate capital in highest value-add manner
Unlock value and pursue new technologies via strategic alliances
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Steel Value Chain
Raw material
Raw materials Crude Finished End
processing/
mining steel steel customer
transportation
Disaggregation
Opportunity
Carbon Ferrous
Transport Processing Handling
Elements of steel value chain can
be disaggregated to create value
Maintain strategic control/use of
assets on long-term, competitive
and reliable basis
Free up and redeploy proceeds
Fund construction of new assets
Requires trusted counterparty to own/operate and valuation/cost of capital advantage
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SXCP Growth Strategy
First priority is our core cokemaking business
Cokemaking
FOCUS
Greenfield development and/or acquisition of existing cokemaking facilities with long-term off take agreements
SXC (our G.P.) is currently permitting a potential new plant to which we have preferential rights
Discussing potential acquisition of targeted coke assets, but environmental and integration issues impact complexity and timing
Customer concentration likely to remain high
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Opportunistic acquisitions of adjacent assets
Coal Logistics
FOCUS
Selective acquisition of met coal related handling & processing assets, with long-term off take agreements and limited commodity exposure
Initiated discussions with potential parties
Current opportunities available and less complex assets implies potentially shorter deal cycle
Potential to add value to core business and diversify customer base
Evaluation for future value chain expansion
Iron Ore Processin
FOCUS
Investment in ferrous side of steel value chain (concentrating, pelletizing, transport/handling)
Requested private letter ruling on qualifying income status
Interested in potential greenfield DRI opportunities
Potential to deploy tolling/pass-through model
Potential to diversify customer base and enhance value-add to steel industry
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The Cokemaking Opportunity
SunCoke’s coke is competitive on price, quality and reliability,
providing us the opportunity to displace imported coke
Representative Delivered U.S. and Canada Coke Imports
Coke Prices $/ton
$320 5.1
$292 $294 4.9
$34 4.5
$294 3.3
$292
2.0 1.9
1.8
1.7 1.6
0.8
2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E
ss Imports SunCoke sales volumes
ss Source: CRU and Resource Net
Source: World Price (DTC), Coke Market Report, CRU and company estimates
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The Cokemaking Opportunity
Replace aging coke batteries operated by integrated steel producers
Aging Cokemaking Facilities
Average Age % of U.S. & Canada coke production
38
29%
27%
[Graphic Appears Here]
SXCP SunCoke U.S. & 30-40 40+
Canada years years
(excl
SXC &
SXCP)
56% of coke capacity is at facilities >30 years old
Source: CRU—The Annual Outlook for Metallurgical Coke 2012, company estimates
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U.S. & Canada Coke Supply
Total 2012 Apparent Coke Demand: ~19 million tons
SunCoke*
22%
DTE Integrated
6% Steel
Producers
Other 58%
Merchant
& Foundry Imports
6% 8%
* Includes SXCP capacity
Source: CRU—The Annual Outlook for Metallurgical Coke 2013, company estimates
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The Cokemaking Opportunity
We estimate nearly 4 million tons of capacity will be retired/replaced in coming years and another 4 million tons is potentially acquisition worthy
Market Analysis
Evaluation of all existing batteries in U.S. & Canada
Customer quality
Blast furnace competitiveness
Battery condition
Facilities with Potent Facilities with Potenti
for Replacement for Acquisition
19 batteries 6 batteries
4.0 million tons 4.1 million tons
SXC permitting new 660K In active discussions with
tpy facility in Kentucky owners of target assets
Source: CRU, Metallurgical Coke Market Outlook 2012; company analysis
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The Cokemaking Opportunity
SXCP has preferential rights to potential new plant
SXC (our G.P.) is permitting a potential new plant
Permit submitted December 2012
12-18 months permit process
Will seek customer commitments once permit in hand
Lean engineering focus for new plant design
Must meet tougher new U.S. EPA requirements
Be capital efficient
Enhance operating efficiencies and flexibility
Logistics – both inbound coal and outbound coke are considerations
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Potential Kentucky Site
Potential new plant site
Site of existing blast furnace steelmaking operation
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The Coal Logistics Opportunity
Lakeshore Kanawha River Terminals (“KRT”)
Belfry #5
• Four coal handling/blending facilities with 30 million
Blends coal on site adjacent to SunCoke’s tons of annual collective capacity
Asset Overview Indiana Harbor facility • Access to all U.S. East Coast, Gulf Coast and Great
10-year contract to provide services to Lakes ports; plus 2 railroads at Ceredo
Indiana Harbor • Serves 2 SunCoke facilities as well as steel, coal
and utility companies
Location East Chicago, Indiana Central Appalachia assets on Ohio River system
Acquisition Price $29.4 million $86 million
Funding Structure Cash Cash & Revolver
Est. Annual EBITDA ~$5 million ~$12 million
Est. Annual ~$6 million
~$4 million
Distributable CF(after financing costs)
Expected Closing Q3 2013 Q4 2014
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Q2 2013 PERFORMANCE
& FINANCIAL POSITION
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SXCP Q2 2013 Highlights
Increased cash distribution per unit 2.4% for August payment; solid operating
results and acquisitions provide a strong platform for future growth
Coke Production and Sales (in ‘000s of ton Adjusted EBITD($ in million
$ 37.0
455 458
443 $13.3
430
$29.7 $23.7
Q2 ‘12 Q2 ‘13
Coke Production Coke Sales Adj. EBITDA (1) Attributable to NCI/SXC
Q2 ‘12 Q2 ‘13 Adj. EBITDA (1) Attributable to Predecessor/SXCP
Net Income ($ in million Distributable Cash Flo($ in million
$18.7
$23.9 $13.2 1.38x
$11.7
Q2 ‘13 Minimum Q2 ‘ 13
Net Income Distributable Quarterly Coverage
Attributable to SXCP Cash Flow Cash Distributions Ratio
Q2 ‘12 Q2 ‘13
(1) For a definition and reconciliation of Adjusted EBITDA and distributable cash flow, please see appendix
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SXCP Liquidity Position
A solid cash balance and undrawn $100 million revolver provide
SXCP the flexibility to seize potential new growth opportunities
$7.6 $3.8($4.8)
($ 13.8)
$26.4 • Ongoing($ 9.8) $115.6
$106.2 CapEx:
($1.9M) • $ 5.7M to SXC
• Pre-funded • $ 4.1M to
$43.7 environmental SXCP public $56.0
remediation: holders
($2.9M)
Reserved for
$62.5 environmental $59.6
remediation
Q1 2013 Q2 2013 Depreciation, Working Capital Cash Cash Q2 2013
Cash Net Income Depletion & Capital Expenditures Distribution Distribution Cash
Balance Amortization Changes/ to SXC for to all holders Balance
Other 35% interest including
SXC units
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Liquidity & Debt
Both SXC and SXCP are well-capitalized to facilitate growth
• SXC
($ in millions) SXC SXCP—$400M 7.625% Senior
Cash Position at 06/30/13(1) $233 $116 Notes due 2019, rated
B1/B+
Revolver Capacity $148 $100
Total Liquidity $381 $216—$330M Term Loan B,
rated Ba1/BB+
Total Debt (2) $499 $150($100M outstanding)
Total Debt (1) /2013E Adjusted EBITDA(4) 2.8x 1.7x
• SXCP
Net Debt (3) $266 $94—$150M 7.375% Senior
Net Debt /2013E Adjusted EBITDA(4) 1.5x 1.1x Notes due 2020, rated
B1/BB-
For SXC, reflects cash position of $348 million net of the $116 million in cash attributable to SXCP. For SXCP, cash position at 6/30/13 includes $60 million of cash allocated and committed at the time of the IPO for environmental capital expenditures (YTD, $7.4 million spent at SXCP for environmental remediation)
For SXC, reflects total debt position of $649 million net of total debt attributable to SXCP of $150 million
For SXC, reflects total debt attributable to SXC less cash attributable to SXC. For SXCP, reflects total SXCP debt less SXCP’s u ncommitted cash position of $56 million ($116 million less $60 million remaining spend committed for environmental expenditures)
Based on the mid-point of 2013 Adjusted EBITDA guidance attributable to SXC of $165-$190 million ($177.5M mid-point) and attributable to SXCP of $85.8—$90.5 million ($88.2 million mid-point). Please see appendix for definition and reconciliation of Adjusted EBITDA
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SXCP 2013 Outlook
Guidance below excludes expected benefit
of Lakeshore and KRT acquisitions
Prospectus Proforma 2013 Outlook
($ and units in millions, except per unit data) 2013 Forecast Low High
Adjusted EBITDA attributable to SXCP(1) $ 85.8 $ 85.8 $ 90.5
Less:
Ongoing capital expenditures (65% share of Haverhill and Middletown attributable to SXCP) 9.1 8.5 8.5
Accrual for replacement capital expenditures 3.7 3.7 3.7
Cash interest ($150 million senior notes @ 7.375% plus $0.5 million revolver commitment fee) 11.6 11.6 11.6
Estimated Distributable Cash Flow $ 61.4 $ 62.0 $ 66.7
Excess distributable cash flow available for distribution 8.5 5.2 9.9
Total estimated annual distribution $ 52.9 $ 56.8 $ 56.8
Expected annual distribution per unit(3) $ 1.65 $ 1.77 $ 1.77
Total unit coverage ratio(2) 1.16x 1.09x 1.17x
Adjusted EBITDA equals SXCP’s 65% interest in Haverhill and Middletown’s Adjusted EBITDA
Total unit coverage ratio calculated as cash available for distribution divided by total estimated annual distributions.
Based on expected Feb 2014 distribution of $0.4425, annualized.
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Investor Relations:
630-824-1987
www.suncoke.com
APPENDIX
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Definitions
Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) adjusted for sales discounts and the interest, taxes, depreciation, depletion and amortization attributable to our equity method investment.
EBITDA reflects sales discounts included as a reduction in sales and other operating revenue. The sales discounts represent the sharing with customers of a portion of nonconventional fuel tax credits, which reduce our income tax expense. However, we believe our Adjusted EBITDA would be inappropriately penalized if these discounts were treated as a reduction of EBITDA since they represent sharing of a tax benefit that is not included in EBITDA. Accordingly, in computing Adjusted EBITDA, we have added back these sales discounts. Our Adjusted EBITDA also includes EBITDA attributable to our equity method investment. 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 of the Company’s net assets. We believe Adjusted EBITDA is an important measure of operating performance and 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. Adjusted EBITDA is a measure of operating performance that is not defined by GAAP, does not represent and should not be considered a substitute for net income as determined in accordance with GAAP. Calculations of Adjusted EBITDA may not be comparable to those reported by other companies.
EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization.
Adjusted EBITDA attributable to SXC/SXCP equals Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling interests.
Adjusted EBITDA/Ton represents Adjusted EBITDA divided by tons sold. When applicable to Adjusted EBITDA attributable to SXC or SXCP, tons sold are prorated according to the respective ownership interest of SXC or SXCP as applicable.
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Definitions
Distributable Cash Flow equals Adjusted EBITDA less net cash paid for interest expense, on-going capital expenditures, accruals for replacement capital expenditures, and cash distributions to noncontrolling interests. Distributable Cash Flow is a non-GAAP supplemental financial measure that management and external users of the Partnership’s financial statements, such as industry analysts, investors, lenders and rating agencies use to assess:
the Partnership’s operating performance as compared to other publicly traded partnerships, without regard to historical cost basis;
the ability of the Partnership’s assets to generate sufficient cash flow to make distributions to the Partnership’s unitholders;
the Partnership’s ability to incur and service debt and fund capital expenditures; and
the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
The Partnership believes that Distributable Cash Flow provides useful information to investors in assessing the Partnership’s financial condition and results of operations. Distributable Cash Flow should not be considered an alternative to net income, operating income, cash flows from operating activities, or any other measure of financial performance or liquidity presented in accordance with generally accepted accounting principles (GAAP). Distributable Cash Flow has important limitations as an analytical tool because it excludes some, but not all, items that affect net income and net cash provided by operating activities and used in investing activities.
Additionally, because Distributable Cash Flow may be defined differently by other companies in the industry, the Partnership’s definition of Distributable Cash Flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Ongoing capital expenditures (“capex”) are capital expenditures made to maintain the existing operating capacity of our assets and/or to extend their useful lives. Ongoing capex also include new equipment that improves the efficiency, reliability or effectiveness of existing assets. Ongoing capex does not include normal repairs and maintenance, which are expensed as incurred, or significant capital expenditures. For purposes of calculating distributable cash flow, the portion of ongoing capex attributable to SXCP is used.
Replacement capital expenditures (“capex”) represents an annual accrual necessary to fund SXCP’s share of the estimated costs to replace or rebuild our facilities at the end of their working lives. This accrual is estimated based on the average quarterly anticipated replacement capital that we expect to incur over the long term to replace our major capital assets at the end of their working lives. The replacement capex accrual estimate will be subject to review and prospective change by SXCP’s general partner at least annually and whenever an event occurs that causes a material adjustment of replacement capex, provided such change is approved by our conflicts committee.
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SXCP – Adjusted EBITDA and Distributable
Cash Flow Reconciliations
Full Year 2013(1) Guidance
As As As As
Reported Proforma(1)) Proforma(1)) Reported Proforma Proforma Reported Reported
($ in Millions) Q1’13 Adj. Q1’13 Q2’13 Low High Low High
Net cash (used in) provided by operating activities $ 5.7 $ (0.2) $ 5.5 $ 38.0
Depreciation(7.6)(7.6)(7.6)
Changes in working capital and other 25.8 25.8(4.0)
Net income $ 23.9 $ 23.7 $ 26.4 $ 81.7 $ 91.9 $ 81.9 $ 92.1
Add:
Depreciation 7.6 7.6 7.6 31.5 30.5 31.5 30.5
Interest expense, net 6.7 6.7 2.8 17.0 15.0 17.0 15.0
Income tax expense 3.9 3.9 0.2 4.7 4.7 4.7 4.7
Sales discounts(0.6)(0.6) -(0.6)(0.6)(0.6)(0.6)
Adjusted EBITDA $ 41.5 $ 41.3 $ 37.0 $ 134.3 $ 141.5 $ 134.5 $ 141.7
Adjusted EBITDA attributable to NCI(11.4)(3.4)(14.8)(13.3)(48.5)(51.0)(45.1)(47.6)
Adjusted EBITDA attributable to Predecessor/SXCP $ 30.1 $ 26.5 $ 23.7 $ 85.8 $ 90.5 $ 89.4 $ 94.1
Less:
Ongoing capex(0.7)(0.7)(1.2)(8.5)(8.5)
Replacement capex accrual(0.9)(0.9)(0.9)(3.7)(3.7)
Cash interest accrual(2.9)(2.9)(2.9)(11.6)(11.6)
Distributable cash flow $ 25.6 $ 22.0 $ 18.7 $ 62.0 $ 66.7
Quarterly Cash Distribution 13.2(2) 13.2(2) 13.5
Distribution Coverage Ratio 1.94x 1.66x 1.38x
Adjusted EBITDA per ton reconciliation
Adjusted EBITDA 41.5 $ 41.3 $ 37.0
Sales tons 448 448 458
Adjusted EBITDA/ton $ 92.6 $ 92.2 $ 80.8
Adjusted for the time period prior to the January 24, 2013 IPO date (January 1 -23, 2013)
Based on minimum quarterly distribution amount of $0.4125
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REFERENCE
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Blast Furnaces and Coke
BEST IN CLASS in lbs/ST
Iron Iron ore/ Blast furnaces are the
pellets 3100
burden most efficient and proven
Scrap 198 method of reducing iron
Top Gas oxides into liquid iro
Flux Limestone 30
Fuel Coke 600 Coke is a vital material to
blast furnace steel makin
BEST IN CLASS in lbs/ST
Up to
Nat Gas We believe stronger,
80-120
Fuel Up to larger coke is becoming
Coal 120-180 more important as blast
furnaces seek to optimize
fuel need
Most efficient blast
furnaces requ
800 900 lbs/NTHM 1 short ton
of fuel to produce hot metal (NTHM)
a ton of hot met
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Primary Cokemaking Processes
Advantages of Heat Recovery Advantages of By-Product
Negative Pressure Ovens Positive Pressure Ovens
Minimal fugitive emissions No air leaks into oven results in higher coal-to-coke
MACT standard for new batteries (1) yields
Cogeneration potential (steam or electricity) By-product use and value
More fungible by-product (power) Makes coke oven gas for steelmaking
No wall pressure limitations on coal blend No volatile matter limitations on coal blend
Higher turndown flexibility Smaller oven footprint for new and replacement ovens
Higher CSR coke quality High comfort level with >100 years of operating experience
Lower capital cost and simpler operation Natural gas pricing hedge
(1) Maximum Achievable Control Technology.
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Detailed SXC/SXCP
Organizational Structure
SunCoke Energy, Inc.
(NYSE: SXC)
100%
Sun Coal & Coke LLC
Common Units Subordinated Units
100%
55.9% partnership interest
35.0% 35.0%
Senior Notes 2.0% general partner p Investors interest / incentive distrib
SunCoke Energy Partners, L.P.
(NYSE: SXCP)
65.0% 65.0%
Haverhill Middletown Coke Company LLC Coke Company, LLC
Haverhill Cogeneration Middletown Cogeneration Company LLC Company LLC
Net to SXC and SXCP’s ownership interest in Haverhill and Middletown, respectively.
2013 Citi One-on-One MLP / Midstream
What Remains at SXC
3 U.S. coking facilities with ~2.6 million tons of annual capacity
35% interest in Haverhill and Middletown with ~0.6 million tons (1) of annual capacity
Operation of 1 Brazil coking facility with ~1.7 million tons of annual capacity and 49% interest in VISA
SunCoke JV in India
~113 million tons of high-quality metallurgical coal reserves
What is in SXCP
65% interest in Haverhill and Middletown with ~1.1 million tons (1) of annual capacity
33
Omnibus Agreement
Omnibus Agreement
Purpose: governs interaction between MLP and Parent and protects MLP investors from certain Parent currently bears
Commercial / counterparty support
Non-compete with respect to commercial markets or development / M&A
Indemnifications for environmental, regulatory or other liabilities
MLP preferential rights or options to acquire third-party assets or assets from Parent
Support of Commercial Agreements
5 years from date of IPO
Parent makes MLP economically whole for customer default or execution of right to early termination (risk Parent currently bears 100%)
Purchase and remarketing of coke by Parent or other arrangement
Environmental Indemnificatio
Parent indemnifies MLP for all known environmental liabilities in excess of amount MLP retains for such obligations at IPO
Parent indemnifies MLP for all environmental liabilities that are discovered within 5 years, but which existed prior to date of IPO, subject to cap and deductible
Tenor – Period during which Parent controls MLP
MLP has preferential right to acquire third-party assets and a right of first offer on all current and future Sponsor cokemaking assets in U.S. or Canada
MLP will not have immediate rights to develop Kentucky project as it is currently being pursued by our Parent, but will have rights to acquire facility once complete
2013 Citi One-on-One MLP / Midstream
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