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CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp

Suncoke Energy Partners Lp · Jun 23, 2015 · 31 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. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 1
    Credit Suisse 2015 MLP & Energy Logistics Conference June 23, 2015
  2. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 2
    About SXC and SXCP TM 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,…
  3. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 3
    SXCP Investment Thesis Well positioned to drive long-term value creation Strong Sponsor Support Stable, Long-term Business Model Significant Investor Value Visible Distribution Proposition Outlook Potential Growth…
  4. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 4
    SXC & SXCP Organizational Structure TM 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…
  5. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 5
    MLP Qualifying Status TM SXCP qualifies for MLP status under current regulations, and we believe will continue to qualify under proposed regulations Section 7704(d)(1)(E) defines MLP qualifying income activities as the…
  6. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 6
    Business Verticals TM Raw materials processing and handling company with growth opportunities in cokemaking, coal logistics & other industrial verticals Current Business Future Platforms Cokemaking Coal Logistics Industrial…
  7. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 7
    Coke Market Dynamics TM 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 Steelmakers outlook driven by automotive &…
  8. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 8
    Stable Cokemaking Business Model TM Long-term, take-or-pay contracts coupled with commercial protection via Omnibus Agreement insulate business from industry cyclicality Key Contract Provisions/Terms Contract Value Propositions…
  9. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 9
    Coal Logistics TM 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…
  10. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 10
    Distribution Performance Delivered 39% increase in cash distributions on strength and stability of existing business SXCP Distribution Growth 8th consecutive Anticipate raising cash quarterly increase distributions per unit 6% in…
  11. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 11
    Dropdown Outlook & Considerations Expect future coke asset dropdowns will contribute 100M to Adj. EBITDA and support additional per unit cash distribution increases Strategy for Future Dropdowns Haverhill & Middletown (33%) and 1…
  12. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 12
    Flexibility to Fund Growth 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 & SXCP…
  13. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 13
    Platforms for Growth 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 Financial Fit…
  14. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 14
    SXCP Investment Thesis Well positioned to drive long-term value creation Strong Sponsor Customer and environmental risk borne by Support SXC via Omnibus Agreement Secure, take-or-pay contracts insulate Stable, Long-term business…
  15. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 15
    Investor Relations 630-824-1987 www.sxcpartners.com
  16. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 16
    APPENDIX Credit Suisse 2015 MLP & Energy Logistics Conference 16
  17. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 17
    SUNCOKES COKEMAKING TECHNOLOGY AND COKE MARKET OVERVIEW Credit Suisse 2015 MLP & Energy Logistics Conference 17
  18. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 18
    Our Operations TM Operations located to serve customers most strategic assets Lake Terminal Indiana (Coal Logistics) Harbor Coke Plant Characteristics KRT 3 Terminals (Coal Logistics) Advantaged inbound and outbound logistics…
  19. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 19
    Strategic Customer Blast Furnace Assets TM 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…
  20. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 20
    SunCokes Cokemaking Technology TM 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…
  21. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 21
    Blast Furnaces and Coke TM 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…
  22. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 22
    Coke Market Dynamics TM 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…
  23. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 23
    Coke Market Dynamics TM Macro thesis playing out with recent coke battery retirements U.S. & Canada Coke Battery Age Distribution Industry Outlook By-product coke battery (Mtpa capacity) 4 Meter By-product 5.0 6 Meter By-product…
  24. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 24
    DEFINITIONS Credit Suisse 2015 MLP & Energy Logistics Conference 24
  25. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 25
    Definitions Adjusted EBITDA Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (EBITDA). Prior to the expiration of our nonconventional fuel tax credits in 2013, Adjusted EBITDA included an…
  26. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 26
    SXCP GUIDANCE AND RECONCILIATIONS Credit Suisse 2015 MLP & Energy Logistics Conference 27
  27. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – 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. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 28
    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…
  29. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 29
    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…
  30. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 30
    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…
  31. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Suncoke Energy Partners Lp – slide 31
    Balance Sheet & Debt Metrics 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…

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