Suncoke Energy, Inc. · NYSE:SXC
Suncoke Energy — Q2 2022 Earnings Presentation
18 slides from Suncoke Energy's earnings presentation, Aug 2, 2022
Slide 1: SunCoke Energy, Inc. Q2 2022 Earnings Conference Call
SunCoke Energy, Inc. Q2 2022 Earnings Conference Call Exhibit 99.2
Slide 2: Forward-Looking Statements
This slide presentation should be reviewed in conjunction with the Second Quarter 2022 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on August 2, 2022 at 11:30 a.m. ET. This presentation contains “forward-looking statements” (as defined in Section 27A of the Securities
Slide 3: Q2 2022 Highlights
Q2 2022 Highlights Delivered Q2 ‘22 Adjusted EBITDA of $71.3M Continued strong performance across our coke and logistics operations Export and foundry coke initiatives continue to perform well Entered into a non-binding letter of intent with US Steel to manufacture granulated pig iron (GPI) SunCoke
Slide 4: Q2 2022 Financial Performance
Q2 2022 Financial Performance See appendix for a definition and reconciliation of Adjusted EBITDA Coke Adjusted EBITDA includes Domestic Coke and Brazil Coke Q2 ’22 Corporate and Other Adj. EBITDA includes activity from our legacy coal mining business ($/share) ($ in millions) Adj. EBITDA(1) $3.3M Q
Slide 5: Q2 2022 Liquidity
Revolver Availability: $250.0M (Consolidated) Q2 ’22 Total Debt $610M Gross Leverage(1) 2.09x Net Leverage(1) 1.87x Gross leverage and Net leverage for Q2 2022 calculated using Last Twelve Month(LTM) Adjusted EBITDA Q2 2022 Liquidity Maintained strong liquidity position of ~$313M; Continued objectiv
Slide 6: Domestic Coke Performance and Guidance
Domestic Coke Performance and Guidance Domestic Coke Business Summary and 2022 Outlook M M M M M Sales Tons (Coke Production, Kt) Delivered Adj. EBITDA of $64.3M in Q2 ‘22 vs $61.4M in Q2 ‘21 Higher Adj. EBITDA driven by higher margins on export sales Lower production and sales driven by product mix
Slide 7: Logistics Performance and Guidance
$11.6M $9.6M $12.6M Logistics Business Summary and 2022 Outlook (Tons Handled, Kt) Logistics segment contributed $12.5M to Q2 ‘22 Adj. EBITDA CMT coal handling benefitted from API2 coal price adjustment Domestic terminals handled higher volumes but mostly offset by lower margin due to higher fuel co
Slide 8: 2022 Revised Guidance Summary
2022 Revised Guidance Summary Increasing Adjusted EBITDA guidance by approximately $30M driven by higher margins on export coke sales and API2 coal price benefit at CMT See appendix for a definition and reconciliation of Adjusted EBITDA Domestic coke sales for 2022 estimate includes production for f
Slide 9: 2022 Key Initiatives
Further strengthen customer relationships and grow market share for long term success Support full capacity utilization of cokemaking assets Build on the Commercial Success of Foundry/Export Business 2022 Key Initiatives $270M - $285M Adjusted EBITDA Achieve 2022 Financial Objectives Deliver Safety/
Slide 10: Appendix
APPENDIX ) |
Slide 11: Adjusted EBITDA Definition
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 transaction costs. EBITDA and Adjusted EBITDA do not represent and should not be considered alternati
Slide 12: Coke Facility Capacity and Contract Duration/Volume
Coke Facility Capacity and Contract Duration/Volume Capacity represents blast furnace equivalent production capacity Represents production capacity for blast-furnace sized coke, however, customer takes all on a “run of oven” basis, which represents >600k tons per year.
Slide 13: Balance Sheet & Debt Metrics
Balance Sheet & Debt Metrics As of 6/30/2022 | As of 12/31/2021 Cash $ 63 $ 64 Available Revolver Capacity $ 250 $ 229 Total Liquidity $ 313 $ 293 Gross Debt (Long and Short-term) $ 610 $ 627 Net Debt (Total Debt less Cash) $ 547 $ 563 LTM Adj. EBITDA $ 292 $ 275 Gross Debt / LTM Adj. EBITDA 2.09x 2
Slide 14: 2022 Guidance Reconciliation
2022 Guidance Reconciliation Reflects non-controlling interest in Indiana Harbor Costs incurred as part of the granulated pig iron project with U.S. Steel Free Cash Flow Reconciliation
Slide 15: SXC FCF/Share Reconciliation
SXC FCF/Share Reconciliation Costs incurred as part of the granulated pig iron project with U.S. Steel
Slide 16: Reconciliation to Adjusted EBITDA attributable to SXC
Reconciliation to Adjusted EBITDA and Adjusted EBITDA attributable to SXC Reflects non-controlling interests in Indiana Harbor and the portion of the Partnership owned by public unitholders prior to the closing of the Simplification Transaction Costs incurred as part of the granulated pig iron proje
Slide 17: Adjusted EBITDA and Adjusted EBITDA per ton
Adjusted EBITDA and Adjusted EBITDA per ton (1) Corporate and Other includes the results of our legacy coal mining business.
Slide 18: SunCoke Energy
SunCoke Energy”