0001514705FALSE00015147052023-11-012023-11-01

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

November 1, 2023
Date of Report (date of earliest event reported)
___________________________________
SunCoke Energy, Inc.
(Exact name of registrant as specified in its charter)
___________________________________

Delaware
(State of Incorporation)
001-35243
(Commission File Number)
90-0640593
(IRS Employer Identification Number)
1011 Warrenville Road, Suite 600
Lisle,IL60532
(Address of principal executive offices and zip code)
(630)824-1000
(Registrant's telephone number, including area code)
___________________________________
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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common stock, par value $0.01SXCNew York Stock Exchange
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 November 1, 2023, SunCoke Energy, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter of 2023. 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 November 1, 2023, the Company issued a press release announcing its financial results for the third quarter of 2023. Additional information concerning the Company’s financial results for the third quarter of 2023 will be presented in a slide presentation to investors during a previously announced teleconference on November 1, 2023. 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.

Item 8.01 Other Events.

On November 1, 2023, the Company issued a press release announcing the declaration of its quarterly cash dividend. A copy of this press release is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

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): The following exhibits are being filed herewith:

Exhibit No.Description
99.1
99.2
99.3
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)






SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 1st day of November, 2023.


SUNCOKE ENERGY, INC.
By:
/s/ Mark W. Marinko
Name:
Mark W. Marinko
Title:
Senior Vice President and Chief Financial Officer




image_0a.jpg
Investors and Media:
Shantanu Agrawal
(630) 824-1907


SUNCOKE ENERGY, INC. REPORTS THIRD QUARTER 2023 RESULTS

•Third quarter 2023 net income attributable to SXC was $7.0 million, or $0.08 per share; Year-to-date net income attributable to SXC was $43.7 million, or $0.51 per share

•Consolidated Adjusted EBITDA(1) for the quarter was $65.4 million, a decrease of $18.3 million versus the prior year period; Year-to-date Consolidated Adjusted EBITDA was $206.5 million

•Well positioned to achieve high end of full-year 2023 Consolidated Adjusted EBITDA(1) guidance range of $250 million to $265 million

LISLE, Ill. (November 1, 2023) - SunCoke Energy, Inc. (NYSE: SXC) today reported third quarter 2023 results, reflecting solid operating performance from our cokemaking and logistics segments.

"We are pleased with the operating performance across our segments in the third quarter. Our domestic coke plants continued running at full capacity, but our financial results, as compared to the record prior year quarter, were impacted by lower contribution margin on non-contracted blast coke sales. Our logistics segment operated well, but was impacted by lower volumes and pricing due to weaker demand," said Katherine Gates, President of SunCoke Energy, Inc. "We continue to successfully navigate through challenging market conditions and remain well positioned to achieve the high end of our 2023 Consolidated Adjusted EBITDA guidance range."










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

THIRD QUARTER CONSOLIDATED RESULTS
Three Months Ended September 30,
(Dollars in millions)
20232022
Increase
(decrease)
Revenues$    520.4$    516.8$    3.6
Net income attributable to SXC$    7.0$    41.4$    (34.4)
Adjusted EBITDA(1)
$    65.4$    83.7$    (18.3)
(1)See definition of Adjusted EBITDA and reconciliation elsewhere in this release.

Revenues in the third quarter of 2023 increased $3.6 million as compared to the same prior year period, primarily driven by the pass-through of higher coal prices on our long-term, take-or-pay agreements, partially offset by lower volumes in the logistics segment.

Net income attributable to SXC decreased $34.4 million from the same prior year period, primarily due to tax law changes in the United States and Brazil in both 2022 and 2023. The third quarter of 2022 included deferred tax benefits from tax credits of $15.9 million, while the third quarter of 2023 includes the impact of a deferred tax expense from tax credits of $8.5 million. Net income attributable to SXC was additionally impacted by lower Adjusted EBITDA as described below.

Adjusted EBITDA decreased $18.3 million as compared to the same prior year period, primarily driven by lower contribution margin on non-contracted blast coke sales and lower logistics volumes, partially offset by favorable coal-to-coke yields on our long-term, take-or-pay agreements.

THIRD 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 September 30,
(Dollars in millions, except per ton amounts)
20232022
Increase
(decrease)
Revenues
$    495.7$    487.7$    8.0
Adjusted EBITDA(1)
$    64.0$    76.6$    (12.6)
Sales volumes (thousands of tons)
1,0161,022(6)
Adjusted EBITDA per ton(2)
$    62.99$    74.95$    (11.96)
(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 $8.0 million as compared to the same prior year period, primarily driven by the pass-through of higher coal prices on our long-term, take-or-pay agreements.
Adjusted EBITDA decreased $12.6 million as compared to the same prior year period, primarily driven by lower contribution margin on non-contracted blast coke sales, partially offset by favorable coal-to-coke yields on our long-term, take-or-pay agreements.
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Logistics
Logistics consists of the handling and mixing services of coal and other aggregates at our Convent Marine Terminal ("CMT"), Lake Terminal, and Kanawha River Terminals (“KRT”).
Three Months Ended September 30,
(Dollars in millions, except per ton amounts)20232022
Increase
(decrease)
Revenues$    15.6$    20.2$    (4.6)
Intersegment sales$    5.6$    7.4$    (1.8)
Adjusted EBITDA(1)
$    8.4$    12.9$    (4.5)
Tons handled (thousands of tons)(2)
4,9615,721(760)
(1)See definition of Adjusted EBITDA and reconciliation elsewhere in this release.
(2)Reflects inbound tons handled during the period.

Revenues and Adjusted EBITDA decreased by $4.6 million and $4.5 million, respectively, as compared to the same prior year period, primarily driven by lower transloading volumes and pricing.

Brazil Coke
Brazil Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for an affiliate of ArcelorMittal.
Revenues were $9.1 million during the third quarter 2023, which was comparable to revenues of $8.9 million in the third quarter 2022. Adjusted EBITDA was $2.2 million during the third quarter 2023, which was lower than Adjusted EBITDA of $3.3 million in the third quarter 2022, primarily driven by the absence of technology fees which expired at the end of 2022.

Corporate and Other
Corporate and Other, which includes activity from our legacy coal mining business, was $9.2 million during the third quarter 2023, which was reasonably consistent with $9.1 million during the third quarter 2022.

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2023 OUTLOOK

Our 2023 guidance is as follows:
•Domestic Coke total production is expected to be approximately 4.0 million tons
•Consolidated Net Income is expected to be between $49 million and $68 million
•Consolidated Adjusted EBITDA is expected be on the high end of $250 million and $265 million
•Capital expenditures are projected to be approximately $95 million(1)
•Operating cash flow is estimated to be between $200 million to $215 million
•Cash taxes are projected to be between $12 million to $16 million
(1)Capital expenditure guidance excludes preliminary engineering expenses related to the GPI project


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 and analysts may participate in this call by dialing 1-833-470-1428 in the U.S. or 1-646-904-5544 if outside the U.S., access code 631949.

SUNCOKE ENERGY, INC.

SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to domestic and international customers. Our coke is used in the blast furnace production of steel as well as the foundry production of casted iron, with the majority of sales under long-term, take-or-pay contracts. We also export coke to overseas customers seeking high-quality product for their blast furnaces. Our process utilizes an innovative heat-recovery technology that captures excess heat for steam or electrical power generation and draws upon more than 60 years of cokemaking experience to operate our facilities in Illinois, Indiana, Ohio, Virginia and Brazil. Our logistics business provides export and domestic material handling services to coke, coal, steel, power and other bulk customers. The logistics terminals have the collective capacity to mix and transload more than 40 million tons of material each year and are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports. To learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com.

SunCoke routinely announces material information to investors and the marketplace using press releases, Securities and Exchange Commission filings, public conference calls, webcasts and SunCoke's website at http://www.suncoke.com/English/investors/sxc. The information that SunCoke posts to its website may be deemed to be material. Accordingly, SunCoke encourages investors and others interested in SunCoke to routinely monitor and review the information that SunCoke posts on its website, in addition to following SunCoke's press releases, Securities and Exchange Commission filings and public conference calls and webcasts.

NON-GAAP FINANCIAL MEASURES

In addition to U.S. GAAP measures, this press release contains certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to the measures derived in accordance with U.S. GAAP. Non-GAAP financial measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for results as reported under U.S. GAAP. Additionally, other companies may calculate non-GAAP metrics differently than we do, thereby limiting their usefulness as a comparative measure. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other U.S. GAAP-based financial performance measures, including revenues and net income. Reconciliations to the most comparable GAAP financial measures are included following the presentation of financial and operating results included at the end of this press release.

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DEFINITIONS

•Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, and/or transaction costs ("Adjusted EBITDA"). 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 in assessing operating performance. 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. EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered a substitute for net income, 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.

FORWARD-LOOKING STATEMENTS

This press release and related conference call contain “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 often 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. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Any statements made in this press release or during the related conference call that are not statements of historical fact, including statements about our full-year 2023 guidance and our ability to achieve the high end of the 2023 Consolidated Adjusted EBITDA guidance range, including our 2023 segment guidance, our ability to execute on our 2023 key initiatives, the amount and timing of our quarterly dividend, the expected headwinds and duration of such headwinds, the ability of our domestic coke plants to continue to operate at full capacity, future sales commitments, and our export coke market expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements represent only our beliefs regarding future events, many of which are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SunCoke) that could cause our actual results and financial condition to differ materially from the anticipated results and financial condition indicated in such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in Item 1A (“Risk Factors”) of our Annual Report on Form 10-K for the most recently completed fiscal year, as well as those described from time to time in our other reports and filings with the Securities and Exchange Commission (SEC).

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, SunCoke 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 SunCoke. For information concerning these factors and other important information regarding the matters discussed in this press release and related conference call, see SunCoke's Securities and Exchange Commission filings, copies of which are available free of charge on SunCoke's website at www.suncoke.com or on the SEC's website at www.sec.gov. All forward-looking statements included in this press release and related conference call are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this press release and related conference call also could have material adverse effects on forward-looking statements.

Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SunCoke management, and upon assumptions by SunCoke concerning future
5

conditions, any or all of which ultimately may prove to be inaccurate. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. SunCoke 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.
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SunCoke Energy, Inc.
Consolidated Statements of Income
(Unaudited)
 Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
 (Dollars and shares in millions, except per share amounts)
Revenues
Sales and other operating revenue$    520.4$    516.8$    1,542.6$    1,458.5
Costs and operating expenses
Cost of products sold and operating expenses
436.1413.41,281.21,163.2
Selling, general and administrative expenses19.120.155.357.9
Depreciation and amortization expense35.535.7107.2106.7
Total costs and operating expenses490.7469.21,443.71,327.8
Operating income29.747.698.9130.7
Interest expense, net6.68.021.024.3
Income before income tax expense (benefit)
23.139.677.9106.4
Income tax expense (benefit)14.6(2.9)29.714.3
Net income8.542.548.292.1
Less: Net income attributable to noncontrolling interests
1.51.14.53.2
Net income attributable to SunCoke Energy, Inc.
$    7.0$    41.4$    43.7$    88.9
Earnings attributable to SunCoke Energy, Inc. per common share:
Basic$    0.08$    0.49$    0.52$    1.06
Diluted$    0.08$    0.49$    0.51$    1.05
Weighted average number of common shares outstanding:
Basic84.883.984.783.8
Diluted85.184.784.984.5



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SunCoke Energy, Inc.
Consolidated Balance Sheets
September 30, 2023December 31, 2022
(Unaudited)
 
(Dollars in millions, except
par value amounts)
Assets
Cash and cash equivalents$    125.9$    90.0
Receivables, net81.5104.8
Inventories206.8175.2
Other current assets7.14.0
Total current assets421.3374.0
Properties, plants and equipment (net of accumulated depreciation of $1,365.9 million and $1,276.0 million at September 30, 2023 and December 31, 2022, respectively)
1,205.41,229.3
Intangible assets, net31.633.2
Deferred charges and other assets20.918.1
Total assets$    1,679.2$    1,654.6
Liabilities and Equity
Accounts payable$    182.3$    159.3
Accrued liabilities54.960.8
Current portion of financing obligation6.33.3
Interest payable6.1—
Income tax payable1.30.6
Total current liabilities250.9224.0
Long-term debt and financing obligation489.8528.9
Accrual for black lung benefits54.152.2
Retirement benefit liabilities15.316.4
Deferred income taxes188.1172.3
Asset retirement obligations13.813.4
Other deferred credits and liabilities25.424.7
Total liabilities1,037.41,031.9
Equity
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at both September 30, 2023 and December 31, 2022
——
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 99,160,699 and 98,815,780 shares at September 30, 2023 and December 31, 2022, respectively
1.01.0
Treasury stock, 15,404,482 shares at both September 30, 2023 and December 31, 2022
(184.0)(184.0)
Additional paid-in capital729.0728.1
Accumulated other comprehensive loss(12.7)(13.0)
Retained earnings75.053.5
Total SunCoke Energy, Inc. stockholders’ equity608.3585.6
Noncontrolling interest33.537.1
Total equity641.8622.7
Total liabilities and equity$    1,679.2$    1,654.6


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SunCoke Energy, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
 Nine Months Ended September 30,
 20232022
 (Dollars in millions)
Cash Flows from Operating Activities
Net income$    48.2$    92.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense107.2106.7
Deferred income tax expense15.81.8
Share-based compensation expense4.35.0
Changes in working capital pertaining to operating activities:
Receivables, net24.3(44.7)
Inventories(31.3)(77.8)
Accounts payable25.526.5
Accrued liabilities(6.2)2.4
Interest payable6.16.2
Income taxes0.71.8
Other operating activities(2.0)0.6
Net cash provided by operating activities192.6120.6
Cash Flows from Investing Activities
Capital expenditures(84.5)(55.7)
Other investing activities(0.9)3.6
Net cash used in investing activities(85.4)(52.1)
Cash Flows from Financing Activities
Proceeds from revolving facility273.0450.0
Repayment of revolving facility(308.0)(498.0)
Repayment of financing obligation(2.5)(2.4)
Dividends paid(22.3)(16.9)
Cash distribution to noncontrolling interests(8.1)(4.4)
Other financing activities(3.4)(1.3)
Net cash used in financing activities(71.3)(73.0)
Net increase (decrease) in cash and cash equivalents35.9(4.5)
Cash and cash equivalents at beginning of period90.063.8
Cash and cash equivalents at end of period$    125.9$    59.3
Supplemental Disclosure of Cash Flow Information
Interest paid
$    13.4$    15.4
Income taxes paid$    13.1$    10.8

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SunCoke Energy, Inc.
Segment Financial and Operating Data

The following tables set forth financial and operating data for the three and nine months ended September 30, 2023 and 2022, respectively: 
 
Three Months Ended September 30,Nine Months Ended September 30,
 
2023202220232022
 
(Dollars in millions, except per ton amounts)
Sales and Other Operating Revenues:
Domestic Coke$    495.7$    487.7$    1,460.4$    1,371.8
Brazil Coke9.18.925.827.9
Logistics15.620.256.458.8
Logistics intersegment sales5.67.416.922.2
Elimination of intersegment sales(5.6)(7.4)(16.9)(22.2)
Total sales and other operating revenues$    520.4$    516.8$    1,542.6$    1,458.5
Adjusted EBITDA(1):
Domestic Coke$    64.0$    76.6$    192.6$    216.9
Brazil Coke2.23.36.911.4
Logistics8.412.933.638.0
Corporate and Other, net(2)
(9.2)(9.1)(26.6)(27.5)
Total Adjusted EBITDA$    65.4$    83.7$    206.5$    238.8
Coke Operating Data:
Domestic Coke capacity utilization(3)
102    %101    %101    %100    %
Domestic Coke production volumes (thousands of tons)
1,0321,0283,0243,000
Domestic Coke sales volumes (thousands of tons)
1,0161,0223,0092,991
Domestic Coke Adjusted EBITDA per ton(4)
$    62.99$    74.95$    64.01$    72.52
Brazilian Coke production—operated facility (thousands of tons)
3813831,1751,208
Logistics Operating Data:
Tons handled (thousands of tons)
4,9615,72115,46116,766
(1)See definition of Adjusted EBITDA and reconciliation to GAAP elsewhere in this release.
(2)Corporate and Other, net is not a reportable segment.
(3)The production of foundry coke tons does not replace blast furnace coke tons on a ton for ton basis, as foundry coke requires longer coking time. The Domestic Coke capacity utilization is calculated assuming a single ton of foundry coke replaces approximately two tons of blast furnace coke.
(4)Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.
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SunCoke Energy, Inc.
Reconciliation of Non-GAAP Information
Net Income to Adjusted EBITDA
 Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
 (Dollars in millions)
Net income$    8.5$    42.5$    48.2$    92.1
Add:
Depreciation and amortization expense35.535.7107.2106.7
Interest expense, net6.68.021.024.3
Income tax expense (benefit)14.6(2.9)29.714.3
Transaction costs(1)
0.20.40.41.4
Adjusted EBITDA
$    65.4$    83.7$    206.5$    238.8
(1)Costs incurred as part of the granulated pig iron project with U.S. Steel.








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SunCoke Energy, Inc.
Reconciliation of Non-GAAP Information
Estimated 2023 Net Income
to Estimated 2023 Consolidated Adjusted EBITDA
2023
LowHigh
(Dollars in millions)
Net income$    49$    68
Add:
Depreciation and amortization expense136132
Interest expense, net3129
Income tax expense3436
Consolidated Adjusted EBITDA$    250$    265


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SunCoke Energy, Inc. Q3 2023 Earnings Conference Call

 
2 This presentation should be reviewed in conjunction with the third quarter 2023 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on November 1, 2023 at 11:00 a.m. ET. This presentation contains “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 often 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. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Any statements made in this presentation that are not statements of historical fact, including statements about our full-year 2023 guidance, including our 2023 segment guidance, and our ability to achieve the high end of the 2023 Consolidated Adjusted EBITDA guidance range, our ability to execute on our 2023 key initiatives, the amount and timing of our quarterly dividend, the expected headwinds and duration of such headwinds, the ability of our domestic coke plants to continue to operate at full capacity, future sales commitments, and our export coke market expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements represent only our beliefs regarding future events, many of which are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SunCoke) that could cause our actual results and financial condition to differ materially from the anticipated results and financial condition indicated in such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in Item 1A (“Risk Factors”) of our Annual Report on Form 10-K for the most recently completed fiscal year, as well as those described from time to time in our other reports and filings with the Securities and Exchange Commission (SEC). In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, SunCoke has included in its filings with the 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 made by SunCoke. For information concerning these factors and other important information regarding the matters discussed in this presentation, see SunCoke's SEC filings, copies of which are available free of charge on SunCoke's website at www.suncoke.com or on the SEC’s website at www.sec.gov. All forward- looking statements included in this presentation are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this presentation also could have material adverse effects on forward-looking statements. Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SunCoke management, and upon assumptions by SunCoke concerning future conditions, any or all of which ultimately may prove to be inaccurate. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the earnings release. SunCoke 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 the earnings release except as required by applicable law. Forward-Looking Statements

 
3Q3 2023 Highlights  Delivered Q3 '23 Consolidated Adjusted EBITDA(1) of $65.4M  Solid operating performance from our coke and logistics operations  Continue to successfully navigate through challenging market conditions  Declared cash dividend of $0.10 per share, payable on December 1, 2023  Ended Q3 with a strong liquidity position of $475.9 million  Gross leverage at 1.91x on a trailing 12 month Adjusted EBITDA(1) basis  Remain well positioned to achieve the high end of FY 2023 Consolidated Adjusted EBITDA(1) guidance range of $250M - $265M (1) See appendix for a definition and reconciliation of Adjusted EBITDA

 
4Q3 2023 Financial Performance (1) See appendix for a definition and reconciliation of Adjusted EBITDA (2) Coke Adjusted EBITDA includes Domestic Coke Adjusted EBITDA and Brazil Coke Adjusted EBITDA, combined (3) Q3 '23 Corporate and Other Adjusted EBITDA includes activity from our legacy coal mining business ($/share) ($ in millions) Adjusted EBITDA(1) $65.4 $83.7 Q3 ’23 Q3 ’22 -$18.3M Q3 2023 Earnings Review • Q3 '23 EPS of $0.08, down $0.41 from the prior year quarter  Primarily due to tax law changes in the U.S. and Brazil in 2022 and 2023, the quarter-over- quarter impact on EPS was $0.29 per share  Excluding the impact of tax adjustments, EPS was down by $0.12 quarter-over-quarter, primarily driven by lower contribution margin on non-contracted blast coke sales, partially offset by favorable coal-to-coke yields • Consolidated Adjusted EBITDA(1) of $65.4M, a decrease of $18.3M from the prior year quarter  Coke segment down $13.7M, primarily driven by lower contribution margin on non- contracted blast coke sales, partially offset by favorable coal-to-coke yields  Logistics segment down $4.5M, driven by lower transloading volumes and pricing $0.08 $0.49 Q3 ’23 Q3 ’22 -$0.41 Diluted EPS ($ in millions, except volumes) Q3 '23 Q3 '22 Q3 '23 vs Q3 '22 Domestic Coke Sales Volumes 1,016 1,022 (6) Logistics Volumes 4,961 5,721 (760) Coke Adjusted EBITDA(2) $66.2 $79.9 ($13.7) Logistics Adjusted EBITDA $8.4 $12.9 ($4.5) Corporate and Other Adjusted EBITDA (3) ($9.2) ($9.1) ($0.1) Consolidated Adjusted EBITDA (1) $65.4 $83.7 ($18.3)

 
5 Domestic Coke Performance Domestic Coke Business Summary 122 116 113 118 122 306 311 309 304 315 277 267 264 272 276 172 173 161 171 175 151 156 147 133 144 Q1 ’23Q4 ’22 $46.5M $76.6M $68.2M Q3 ’22 $60.4M Q2 ’23 $64.0M Q3 ’23 1,028 1,023 994 998 1,032 Total Domestic Coke Adjusted EBITDA HaverhillMiddletown Granite City Indiana Harbor Jewell Sales Tons (Coke Production, Kt) • Delivered Adjusted EBITDA of $64.0M in Q3 '23 vs $76.6M in Q3 '22  Domestic Coke fleet continues to operate at full capacity  Lower contribution margin on non- contracted blast coke sales, partially offset by favorable coal-to-coke yields • Well positioned to achieve the high end of FY 2023 Domestic Coke Adjusted EBITDA guidance range of $234M - $242M (1) See appendix for a definition and reconciliation of Adjusted EBITDA (1) 1,043K1,022K 1,016K950K Domestic coke fleet delivered solid operational performance; Challenging market conditions for non-contracted blast coke sales 1,040K

 
6Logistics Business Summary (Tons Handled, Kt) • Logistics segment contributed $8.4M to Q3 '23 Adjusted EBITDA  Lower volumes at CMT during Q3 due to weaker commodity markets • Continued volatility in thermal coal pricing (API2 index); CMT recognized limited API2 price adjustment benefit during Q3  Q4 2023 API2 price adjustment recovering • Expect to deliver FY 2023 Logistics Adjusted EBITDA at the low end of the guidance range of $47M - $50M (1) (1) See appendix for a definition and reconciliation of Adjusted EBITDA Weaker commodity markets continue to drive lower volumes at CMT Logistics Performance 2,563 2,579 2,463 2,371 2,092 3,158 2,946 2,847 2,820 2,869 5,309 Q2 ’23Q1 ’23Q3 ’22 $12.9M $11.7M Q4 ’22 $13.5M $11.7M $8.4M Q3 ’23 5,721 5,525 5,191 4,961 Total Logistics Adj. EBITDA Logistics (ex. CMT) CMT (coal, bulk products, iron ore)

 
7 $78.2 $125.9 $93.7 ($8.4) Net Change in DebtNet Cash Provided by Ops. Activities Cash @ Q2 2023 Other ($0.8) ($34.1) DividendsCapEx ($2.7) Cash @ Q3 2023 Revolver Availability: $350.0M (Consolidated) Q3 '23 Total Debt $506M Gross Leverage(1) 1.91x Net Leverage(1) 1.43x (1) Gross leverage and Net leverage for Q3 2023 calculated using Last Twelve Month (LTM) Adjusted EBITDA Q3 2023 Liquidity Maintained strong liquidity position of ~$476M ($ in millions) Dividend of $0.10 per share Release of ~$30M in working capital (timing)

 
8 • Execute on foundry expansion project • Continue to grow foundry market participation and strengthen customer relationships for long-term success Build on the Commercial Success of Foundry Business 2023 Key Initiatives • $250M - $265M Adjusted EBITDA(1) Achieve 2023 Financial Objectives Continued Safety and Environmental Excellence • Continue to deliver strong safety and environmental performance • Successfully execute on operational and capital plan • Support full capacity utilization of cokemaking assets Deliver Operational Excellence and Optimize Asset Utilization • Continue to pursue balanced capital allocation including growth opportunities, deleveraging, and returning capital to shareholders Execute on Well-Established Capital Allocation Priorities (1) See appendix for a definition and reconciliation of Adjusted EBITDA

 
APPENDIX

 
10 NON-GAAP FINANCIAL MEASURES In order to assist readers in understanding the core operating results that our management uses to evaluate the business, we describe our non- GAAP measures referenced in this presentation below. In addition to U.S. GAAP measures, this presentation contains certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to the measures derived in accordance with U.S. GAAP. Non-GAAP financial measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for results as reported under U.S. GAAP. Additionally, other companies may calculate non-GAAP metrics differently than we do, thereby limiting their usefulness as a comparative measure. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other U.S. GAAP-based financial performance measures, including revenues and net income. Reconciliations to the most comparable GAAP financial measures are included at the end of this Appendix. DEFINITIONS Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, and/or transaction costs ("Adjusted EBITDA"). 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 in assessing operating performance. 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. EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered a substitute for net income, 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 represents Adjusted EBITDA less Adjusted EBITDA attributable to non-controlling interests. Adjusted EBITDA/Ton represents Adjusted EBITDA divided by tons sold/handled. Free Cash Flow (FCF) represents operating cash flow adjusted for capital expenditures. Management believes FCF is an important measure of liquidity. FCF is not a measure calculated in accordance with GAAP, and it should not be considered a substitute for operating cash flow or any other measure of financial performance presented in accordance with GAAP.

 
112023 Guidance Summary Expect 2023 Consolidated Adjusted EBITDA at the high end of $250M - $265M; 2023 Free Cash Flow of $105M - $120M (1) See appendix for a definition and reconciliation of Adjusted EBITDA (2) Domestic coke sales for 2023 estimate includes production for foundry and export sales (3) Domestic Coke Adjusted EBITDA/ton calculated as Domestic Coke EBITDA/Domestic Coke Sales (4) Capital expenditure guidance excludes preliminary engineering expenses related to the GPI project (5) See appendix for a definition and reconciliation of Free Cash Flow (FCF) (1) See appendix for a definition and reconciliation of Adjusted EBITDA (2) See appendix for a definition and reconciliation of Free Cash Flow (FCF) 2023 Guidance Adjusted EBITDA Consolidated(1) $250M - $265M Domestic Coke EBITDA $234M - $242M Logistics EBITDA $47M - $50M Domestic Coke Sales(2) ~4M tons Domestic Coke Adjusted EBITDA/ton (3) $59 - $61/ton Total Capital Expenditures ~$95M(4) Free Cash Flow (5) $105M - $120M Cash Taxes $12M - $16M Metric ($ in millions) Low End High End Adjusted EBITDA (1) $250 $265 Cash interest ($28) ($26) Cash taxes ($12) ($16) Total capex ($95) ($95) Working Capital changes ($10) ($8) Free Cash Flow (FCF) (2) $105 $120 Adjusted EBITDA to FCF Walk 2023E

 
12Coke Facility Capacity and Contract Duration/Volume (1) Capacity represents blast furnace equivalent production capacity (2) Represents production capacity for blast-furnace sized coke, however, customer takes all on a “run of oven” basis, which represents >600k tons per year. Facility Capacity (1) Customer Contract Expiry Contract Volume Indiana Harbor 1,220 Kt Cliffs Steel Sep. 2035 Capacity Middletown 550 Kt (2) Cliffs Steel Dec. 2032 Capacity Haverhill II 550 Kt Cliffs Steel June 2025 Capacity Granite City 650 Kt US Steel Dec. 2024 Capacity Haverhill I/JWO 1,270Kt Cliffs Steel Algoma Steel Dec. 2025 Dec. 2026 400 Kt 150 Kt

 
13Balance Sheet & Debt Metrics ($ in millions, except leverage ratios) As of 9/30/2023 As of 12/31/2022 Cash 126$ 90$ Available Revolver Capacity 350$ 315$ Total Liquidity 476$ 405$ Gross Debt (Long and Short-term) 506$ 544$ Net Debt (Total Debt less Cash) 380$ 454$ LTM Adjusted EBITDA 265$ 298$ Gross Debt / LTM Adjusted EBITDA 1.91x 1.83x Net Debt / LTM Adjusted EBITDA 1.43x 1.52x Adjusted EBITDA (Guidance) Gross Leverage (Guidance) Net Leverage (Guidance) $250M - $265M 1.91x - 2.03x 1.44x - 1.52x 2023 2024 2025 2026 2027 2028 2029 Consolidated Total Sr. Notes -$ -$ -$ -$ -$ -$ 500.0$ 500.0$ Sale Leaseback 0.8 5.5 - - - - - 6.3 Revolver - - - - - - - - Total 0.8$ 5.5$ -$ -$ -$ -$ 500.0$ 506.3$ As of 9/30/2023 ($ in millions)

 
142023 Guidance Reconciliation Free Cash Flow Reconciliation ($ in millions) Low High Net Income $49 $68 Depreciation and amortization expense 136 132 Interest expense, net 31 29 Income tax expense 34 36 Adjusted EBITDA (Consolidated) $250 $265 ($ in millions) Low High Operating Cash Flow $200 $215 Capital Expenditures (95) (95) Free Cash Flow (FCF) $105 $120 2023E

 
15Net Income to FCF Reconciliation Low End High End Net Income $49 $68 Depreciation and amortization expense 136 132 Interest expense, net 31 29 Income tax expense 34 36 Adjusted EBITDA (Consolidated) $250 $265 Cash interest (28) (26) Cash taxes (12) (16) Total capex (95) (95) Working capital changes (10) (8) Free Cash Flow (FCF) $105 $120 ($ in millions) 2023E

 
16Reconciliation to Adjusted EBITDA (1) Costs incurred as part of the granulated pig iron project with U.S. Steel ($ in millions) Q1 '22 Q2 '22 Q3 '22 Q4 '22 FY '22 Q1 '23 Q2 '23 Q3 '23 Net Income 30.6$ 19.0$ 42.5$ 12.8$ 104.9$ 17.7$ 22.0$ 8.5$ Depreciation and amortization expense 35.2 35.8 35.7 35.8 142.5 35.3 36.4 35.5 Interest expense, net 8.0 8.3 8.0 7.7 32.0 7.2 7.2 6.6 Income tax expense (benefit) 10.0 7.2 (2.9) 2.5 16.8 6.8 8.3 14.6 Transaction costs (1) - 1.0 0.4 0.1 1.5 0.1 0.1 0.2 Adjusted EBITDA 83.8$ 71.3$ 83.7$ 58.9$ 297.7$ 67.1$ 74.0$ 65.4$

 
17Adjusted EBITDA and Adjusted EBITDA per ton (1) Corporate and Other includes the results of our legacy coal mining business. 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 Q3 2023 Adjusted EBITDA $64.0 $2.2 $8.4 ($9.2) $65.4 Sales Volume (thousands of tons) 1,016 381 4,961 Adjusted EBITDA per Ton $62.99 $5.83 $1.69 Q2 2023 Adjusted EBITDA $68.2 $2.3 $11.7 ($8.2) $74.0 Sales Volume (thousands of tons) 1,043 396 5,191 Adjusted EBITDA per Ton $65.39 $5.78 $2.26 Q1 2023 Adjusted EBITDA $60.4 $2.4 $13.5 ($9.2) $67.1 Sales Volume (thousands of tons) 950 398 5,309 Adjusted EBITDA per Ton $63.58 $6.07 $2.55 FY 2022 Adjusted EBITDA $263.4 $14.5 $49.7 ($29.9) $297.7 Sales Volume (thousands of tons) 4,031 1,585 22,291 Adjusted EBITDA per Ton $65.34 $9.15 $2.23 Q4 2022 Adjusted EBITDA $46.5 $3.1 $11.7 ($2.4) $58.9 Sales Volume (thousands of tons) 1,040 377 5,525 Adjusted EBITDA per Ton $44.71 $8.22 $2.12 Q3 2022 Adjusted EBITDA $76.6 $3.3 $12.9 ($9.1) $83.7 Sales Volume (thousands of tons) 1,022 382 5,721 Adjusted EBITDA per Ton $74.95 $8.60 $2.26 Q2 2022 Adjusted EBITDA $64.3 $3.9 $12.5 ($9.4) $71.3 Sales Volume (thousands of tons) 1,007 406 5,809 Adjusted EBITDA per Ton $63.85 $9.59 $2.15 Q1 2022 Adjusted EBITDA $76.0 $4.2 $12.6 ($9.0) $83.8 Sales Volume (thousands of tons) 962 419 5,236 Adjusted EBITDA per Ton $79.00 $10.12 $2.41

 

 
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Investors and Media:
Shantanu Agrawal
630-824-1907


SUNCOKE ENERGY, INC. DECLARES CASH DIVIDEND

Lisle, IL (November 1, 2023) – Today, SunCoke Energy, Inc. (NYSE: SXC) announced that its Board of Directors declared a cash dividend of $0.10 per share of the Company’s common stock to be paid on December 1, 2023 to stockholders of record at the close of business on November 15, 2023.


ABOUT SUNCOKE ENERGY, INC.
SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to domestic and international customers. Our coke is used in the blast furnace production of steel as well as the foundry production of casted iron, with the majority of sales under long-term, take-or-pay contracts. We also export coke to overseas customers seeking high-quality product for their blast furnaces. Our process utilizes an innovative heat-recovery technology that captures excess heat for steam or electrical power generation and draws upon more than 60 years of cokemaking experience to operate our facilities in Illinois, Indiana, Ohio, Virginia and Brazil. Our logistics business provides export and domestic material handling services to coke, coal, steel, power and other bulk customers. The logistics terminals have the collective capacity to mix and transload more than 40 million tons of material each year and are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports. To learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com.
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