Skip to main content May 2015 Corporate Presentation – Suncoke Energy Inc. | Shale Experts
Loading...
Pm

May 2015 Corporate Presentation – Suncoke Energy Inc.

Suncoke Energy Inc. · May 8, 2015 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 1
    Sanford C. Bernstein Industrials and Basic Materials Summit May 8, 2015
  2. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 2
    About SXC and SXCP Raw materials processing and handling company with growth opportunities in cokemaking, coal logistics & other industrial verticals General Partner & 56% LP owner of Long-term, fee-based, take-or-pay SXCP, with…
  3. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 3
    SXC & SXCP Organizational Structure SXC owns: 2% GP interest 56% LP interest 100% IDRs Domestic Coal Mining* International Coke (110M tons SXC provides via Omnibus Coke reserves) Agreement: Commercial contract support; 5…
  4. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 4
    Business Verticals Raw materials processing and handling company with growth opportunities in cokemaking, coal logistics & other industrial verticals Current Business Future Platforms Cokemaking Coal Logistics Industrial…
  5. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 5
    Coke Market Dynamics Coke is an essential ingredient in blast furnace steel production Coke Market Overview US and Canada Coke Supply U.S. BF/BOF steel production Integrated Coke outlook driven by automotive & construction 25%…
  6. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 6
    Stable Cokemaking Business Model Long-term, take-or-pay contracts generate stable cash flow and insulate business from industry cyclicality Key Contract Provisions/Terms Contract Value Propositions Customers required to take all coke…
  7. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 7
    Coal Logistics Coal Logistics complements our cokemaking business and broadens exposure to industrial customers Platform for Growth Strategically located assets with access to barge, rail and truck Experienced management team…
  8. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 8
    SXC Investment Thesis TM Well positioned to deliver long-term shareholder returns Secure, take-or-pay coke contracts Stable, Long-term insulate business from steel cyclicality Business Model Minimal commodity risk…
  9. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 9
    Flexibility to Fund Growth TM Multiple levers at SXC & SXCP provide flexibility to fund dropdowns and growth opportunities Executed amendment to increase SXCP leverage covenant Ability to Leverage Both from 4.0x to 4.5x SXC &…
  10. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 10
    Platforms for Growth TM Actively developing pipeline of long-term growth opportunities across several new material handling verticals Disciplined pursuit of long-term growth opportunities M&A Guardrails Strategic Fit…
  11. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 11
    Balanced Capital Allocation Strategy TM Deploying balanced capital allocation strategy to support long-term growth and return capital to shareholders Maintain leverage capacity to support Maintain leverage capacity to support…
  12. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 12
    Clear Pathway for Capital Return TM Continuing to return capital to shareholders Completed In Process Expected Initiatives Q2 15 2H 15 & Beyond To-Date Completed two dropdowns Anticipate dropdown of 23% of Complete remaining…
  13. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 13
    SXC Investment Thesis TM Well positioned to deliver long-term shareholder returns Stable, Long-term Business Model Strong Balance Sheet Significant Shareholder Value Proposition Growth Opportunities Growing Return of…
  14. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 14
    Investor Relations 630-824-1907 www.suncoke.com
  15. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 15
    APPENDIX Sanford C. Bernstein Industrials & Basic Materials Summit 15
  16. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 16
    SUNCOKES COKEMAKING TECHNOLOGY AND COKE MARKET OVERVIEW Sanford C. Bernstein Industrials & Basic Materials Summit 16
  17. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 17
    Our Operations Operations located to serve our customers most strategic assets Lake Terminal Indiana (Coal Logistics) Harbor Coke Plant Characteristics KRT 3 Terminals (Coal Logistics) Advantaged inbound and outbound logistics…
  18. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 18
    Strategic Customer Blast Furnace Assets Our cokemaking assets supply coke to our customers strategic blast furnaces Customer Asset Supported Primary Product Line Comment One of the most productive BF in Middletown Auto the…
  19. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 19
    SunCokes Cokemaking Technology Our industry-leading cokemaking technology meets U.S. EPA MACT standards and makes larger, stronger coke Industry-leading environmental signature Leverage negative pressure to substantially reduce…
  20. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 20
    Blast Furnaces and Coke Best in Class (lbs/st) Iron Iron Ore/Pellets 3,100 Burden Scrap 198 Flux Limestone 30 Fuel Coke 600 Top Gas Blast Furnace Steelmaking BFs are most efficient and proven method of reducing iron oxides into…
  21. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 21
    Coke Market Dynamics Expect stable coke demand on rebounding steel production Domestic Steel Production & Capacity Utilization Industry Outlook (Mt Production) 100 100% Stable BF/BOF production outlook driven by automotive &…
  22. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 22
    Coke Market Dynamics Macro thesis playing out with recent coke battery retirements U.S. & Canada Coke Battery Age Distribution Industry Outlook (Mtpa capacity) 4 Meter By-product By-product coke battery 5.0 6 Meter By-product…
  23. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 23
    Definitions Adjusted EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) adjusted for impairments, costs related to exiting our Coal business, interest, taxes, depreciation and…
  24. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 24
    SXCP GUIDANCE AND RECONCILIATIONS Sanford C. Bernstein Industrials & Basic Materials Summit 25
  25. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 25
    Distribution Performance Raised Q1 15 distribution per unit 6% on solid results and tighter FY 2015 coverage target SXCP Distribution Growth 8th consecutive Q1 15 cash distribution per unit quarterly increase raised to 0.5715 +39%…
  26. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 26
    2015 Outlook Estimated 2015 cash distributions reflect prudent 1.10x target coverage 2014 2015 Outlook ( in millions, except per unit data) As Reported Low High Adjusted EBITDA attributable to SXCP 131 169 179 Less: Ongoing capex…
  27. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 27
    Adjusted EBITDA and Distributable Cash Flow Reconciliations BASIS OF PRESENTATION (SXCP) On January 13, 2015, SunCoke Energy Partners, L.P. (SXCP) acquired a 75 percent interest in the Granite City cokemaking facility from SunCoke.…
  28. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 28
    Expected 2015E EBITDA Reconciliation 2015E 2015E ( in millions) Low High Net Income 69 79 Depreciation and amortization 57 57 Interest expense, net 56 56 Income tax expense 1 1 Adjusted EBITDA 183 193 EBITDA attributable to…
  29. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 29
    2015E Capital Expenditures 100% Basis ( in millions) 2014 2015E Ongoing 17 17 (1) Prefunded from dropdown Environmental Remediation 45 30 proceeds Expansion - 6 Total CapEx 62 53 (1) 2015E Environmental Remediation cost at…
  30. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 30
    SXC GUIDANCE AND RECONCILIATIONS Sanford C. Bernstein Industrials & Basic Materials Summit 31
  31. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 31
    Consolidated Guidance Summary TM Reaffirm Full Year 2015 Guidance Metric 2014 Actual 2015 Guidance Adjusted EBITDA(1) Continuing Operations 237.8 million 225 245 million Consolidated 210.7 million 190 210 million Attributable…
  32. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 32
    2015E Guidance Reconciliation TM 2015E 2015E ( in millions) Low High Net Income 21 38 Subtract: Net Loss from Discontinued Operations (16) (13) Net Income from Continuing Operations 37 51 Depreciation, depletion and…
  33. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 33
    Balance Sheet & Debt Metrics TM As of 3/31/2015 Balance SXC Attributable Attributable Consolidated to SXCP ( in millions) to SXC Cash 165 92 74 Revolver Capacity 398 250 148 Total Liquidity 563 342 222 Total Debt (Long and…
  34. May 2015 Corporate Presentation – Suncoke Energy Inc. – slide 34
    Capital Expenditures TM 2014 CapEx ( in millions) SXC SXCP(1) Consolidated Ongoing(2) 27 17 44 Expansion 4 0 4 Environmental Project 1 45 46 Indiana Harbor Refurbishment 24 0 24 Total CapEx from Continuing Operations 56 62…

From the store

Browse maps, data & reports in the Shale Experts store