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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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35-2451470
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Item 1.
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Consolidated Financial Statements
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Three Months Ended March 31,
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||||||
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2019
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2018
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(Dollars and units in millions, except per unit amounts)
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|||||||
Revenues
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Sales and other operating revenue
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$
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230.4
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$
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214.8
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Costs and operating expenses
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||||
Cost of products sold and operating expenses
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174.1
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157.1
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Selling, general and administrative expenses
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8.7
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8.2
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Depreciation and amortization expense
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28.4
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21.5
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Total costs and operating expenses
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211.2
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|
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186.8
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Operating income
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19.2
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28.0
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Interest expense, net
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14.4
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15.0
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Income before income tax (benefit) expense
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4.8
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13.0
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Income tax (benefit) expense
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(0.1
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)
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0.3
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Net income
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4.9
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12.7
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Less: Net income attributable to noncontrolling interests
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0.4
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0.5
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Net income attributable to SunCoke Energy Partners, L.P.
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$
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4.5
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$
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12.2
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||||
General partner's interest in net income
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$
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0.1
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$
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0.3
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Limited partners' interest in net income
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$
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4.4
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$
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11.9
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Net income per common unit (basic and diluted)
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$
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0.10
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$
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0.26
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Weighted average common units outstanding (basic and diluted)
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46.2
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46.2
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March 31, 2019
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December 31, 2018
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||||
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(Unaudited)
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(Dollars in millions)
|
||||||
Assets
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||||||
Cash
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$
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2.7
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$
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12.6
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Receivables
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61.4
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48.8
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Receivables from affiliate, net
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—
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3.1
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Inventories
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104.6
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79.0
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Other current assets
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3.0
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1.0
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Total current assets
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171.7
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144.5
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Properties, plants and equipment (net of accumulated depreciation of $521.7 million and $499.9 million at March 31, 2019 and December 31, 2018, respectively)
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1,233.0
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1,245.1
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Goodwill
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73.5
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73.5
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Other intangible assets, net
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153.2
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155.8
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Deferred charges and other assets
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2.4
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0.2
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Total assets
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$
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1,633.8
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$
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1,619.1
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Liabilities and Equity
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Accounts payable
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$
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78.3
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$
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68.8
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Accrued liabilities
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13.1
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13.5
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Deferred revenue
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7.5
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3.0
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Current portion of long-term debt and financing obligation
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2.8
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2.8
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Interest payable
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16.3
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3.2
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Payable to affiliate, net
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2.7
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—
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Total current liabilities
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120.7
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91.3
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Long-term debt and financing obligation
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788.3
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793.3
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Deferred income taxes
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115.6
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115.7
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Other deferred credits and liabilities
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13.2
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12.1
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Total liabilities
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1,037.8
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1,012.4
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Equity
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Held by public:
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Common units
(issued 17,727,249 units at both March 31, 2019 and December 31, 2018, respectively)
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188.7
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194.1
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Held by parent:
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Common units (issued 28,499,899 units at both March 31, 2019 and December 31, 2018, respectively)
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342.9
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351.6
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General partner's interest
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53.0
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49.3
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Partners' capital attributable to SunCoke Energy Partners, L.P.
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584.6
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595.0
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Noncontrolling interest
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11.4
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11.7
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Total equity
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596.0
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606.7
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Total liabilities and equity
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$
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1,633.8
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$
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1,619.1
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Three Months Ended March 31,
|
||||||
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2019
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2018
|
||||
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||||
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(Dollars in millions)
|
||||||
Cash Flows from Operating Activities:
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|
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Net income
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$
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4.9
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$
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12.7
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Adjustments to reconcile net income to net cash provided by operating activities:
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|
||||
Depreciation and amortization expense
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28.4
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21.5
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Deferred income tax expense
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(0.1
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)
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0.4
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Changes in working capital pertaining to operating activities:
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Receivables
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(12.6
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)
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(5.6
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)
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Receivables/payables from affiliate, net
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5.8
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5.7
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Inventories
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(25.6
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)
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(0.3
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)
|
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Accounts payable
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9.3
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20.9
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Accrued liabilities
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(0.6
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)
|
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(3.0
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)
|
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Deferred revenue
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4.5
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1.9
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Interest payable
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13.1
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12.8
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Other
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(1.4
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)
|
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(0.9
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)
|
||
Net cash provided by operating activities
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25.7
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66.1
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Cash Flows from Investing Activities:
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|
||||
Capital expenditures
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(13.4
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)
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(10.6
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)
|
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Net cash used in investing activities
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(13.4
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)
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(10.6
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)
|
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Cash Flows from Financing Activities:
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|
||||
Repayment of financing obligation
|
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(0.7
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)
|
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(0.6
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)
|
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Proceeds from revolving credit facility
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60.7
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53.5
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Repayment of revolving credit facility
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(65.7
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)
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(53.5
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)
|
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Distributions to unitholders (public and parent)
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(18.9
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)
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(29.5
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)
|
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Distributions to noncontrolling interest (SunCoke Energy, Inc.)
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(0.7
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)
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(0.5
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)
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Capital contributions from SunCoke
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4.0
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10.0
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Other financing activities
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(0.9
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)
|
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—
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Net cash used in financing activities
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(22.2
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)
|
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(20.6
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)
|
||
Net (decrease) increase in cash and cash equivalents
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(9.9
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)
|
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34.9
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|
||
Cash and cash equivalents at beginning of period
|
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12.6
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|
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6.6
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|
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Cash and cash equivalents at end of period
|
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$
|
2.7
|
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$
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41.5
|
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Supplemental Disclosure of Cash Flow Information
|
|
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|
||||
Interest paid, net of capitalized interest of $1.2 million and $0.5 million, respectively
|
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$
|
0.4
|
|
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$
|
1.5
|
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Income taxes paid
|
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$
|
—
|
|
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$
|
1.3
|
|
|
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Common -
Public |
|
Common -
SunCoke |
|
General Partner -
SunCoke |
|
Noncontrolling Interest
|
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Total
|
||||||||||
|
|
|
|
|
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|
|
|
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|
||||||||||
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(Dollars in millions)
|
|||||||||||||||||||
At December 31, 2017
|
|
$
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207.0
|
|
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$
|
365.4
|
|
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$
|
31.2
|
|
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$
|
12.3
|
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$
|
615.9
|
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Partnership net income
|
|
4.6
|
|
|
7.3
|
|
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0.3
|
|
|
0.5
|
|
|
12.7
|
|
|||||
Distributions to unitholders
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(10.6
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)
|
|
(16.9
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)
|
|
(2.0
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)
|
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—
|
|
|
(29.5
|
)
|
|||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
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(0.5
|
)
|
|
(0.5
|
)
|
|||||
Public units acquired by SunCoke
|
|
(2.2
|
)
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
SunCoke capital contributions
|
|
—
|
|
|
—
|
|
|
10.0
|
|
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—
|
|
|
10.0
|
|
|||||
At March 31, 2018
|
|
$
|
198.8
|
|
|
$
|
358.0
|
|
|
$
|
39.5
|
|
|
$
|
12.3
|
|
|
$
|
608.6
|
|
|
|
|
|
|
|
|
|
|
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|
||||||||||
At December 31, 2018
|
|
$
|
194.1
|
|
|
$
|
351.6
|
|
|
$
|
49.3
|
|
|
$
|
11.7
|
|
|
$
|
606.7
|
|
Partnership net income
|
|
1.7
|
|
|
2.7
|
|
|
0.1
|
|
|
0.4
|
|
|
4.9
|
|
|||||
Distributions to unitholders
|
|
(7.1
|
)
|
|
(11.4
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
(18.9
|
)
|
|||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|||||
SunCoke capital contributions
|
|
—
|
|
|
—
|
|
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|||||
At March 31, 2019
|
|
$
|
188.7
|
|
|
$
|
342.9
|
|
|
$
|
53.0
|
|
|
$
|
11.4
|
|
|
$
|
596.0
|
|
|
Total Quarterly Distribution Per Unit Target Amount
|
|
Marginal Percentage
Interest in Distributions
|
||||
|
Unitholders
|
|
General Partner
|
||||
First Target Distribution
|
up to $0.474375
|
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98%
|
|
2%
|
||
Second Target Distribution
|
above $0.474375
|
|
up to $0.515625
|
|
85%
|
|
15%
|
Third Target Distribution
|
above $0.515625
|
|
up to $0.618750
|
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75%
|
|
25%
|
Thereafter
|
above $0.618750
|
|
50%
|
|
50%
|
Earned in Quarter Ended
|
|
Total Quarterly Distribution Per Unit
|
|
Total Cash Distribution including general partners IDRs
|
|
Date of Distribution
|
|
Unitholders Record Date
|
||||
|
|
|
|
(Dollars in millions)
|
|
|
|
|
||||
March 31, 2018
|
|
$
|
0.4000
|
|
|
$
|
18.9
|
|
|
June 1, 2018
|
|
May 15, 2018
|
June 30, 2018
|
|
$
|
0.4000
|
|
|
$
|
18.9
|
|
|
September 4, 2018
|
|
August 15, 2018
|
September 30, 2018
|
|
$
|
0.4000
|
|
|
$
|
18.9
|
|
|
December 3, 2018
|
|
November 15, 2018
|
December 31, 2018
|
|
$
|
0.4000
|
|
|
$
|
18.9
|
|
|
March 1, 2019
|
|
February 15, 2019
|
March 31, 2019
(1)
|
|
$
|
0.4000
|
|
|
$
|
18.9
|
|
|
June 3, 2019
|
|
May 15, 2019
|
(1)
|
On
April 15, 2019
, our Board of Directors declared a cash distribution of
$0.4000
per unit, which will be paid on
June 3, 2019
, to unitholders of record on
May 15, 2019
.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
|
(Dollars in millions)
|
|||||||
Net income attributable to SunCoke Energy Partners, L.P.
|
|
$
|
4.5
|
|
|
$
|
12.2
|
|
General partner's ownership interest:
|
|
2.0
|
%
|
|
2.0
|
%
|
||
Total general partner's interest in net income
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
Common - public unitholder's interest in net income
|
|
$
|
1.7
|
|
|
$
|
4.6
|
|
Common - SunCoke interest in net income
|
|
2.7
|
|
|
7.3
|
|
||
Total limited partners' interest in net income
|
|
$
|
4.4
|
|
|
$
|
11.9
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
|
(Dollars and units in millions, except per unit amounts)
|
|||||||
Net income attributable to SunCoke Energy Partners, L.P.
|
|
$
|
4.5
|
|
|
$
|
12.2
|
|
General partner's distributions (including zero cash incentive distribution rights declared)
|
|
0.4
|
|
|
0.4
|
|
||
Limited partners' distributions on common units
|
|
18.5
|
|
|
18.5
|
|
||
Distributions greater than earnings
|
|
(14.4
|
)
|
|
(6.7
|
)
|
||
General partner's earnings:
|
|
|
|
|
||||
Distributions (including zero cash incentive distribution rights declared)
|
|
0.4
|
|
|
0.4
|
|
||
Allocation of distributions greater than earnings
|
|
(0.3
|
)
|
|
(0.1
|
)
|
||
Total general partner's earnings
|
|
0.1
|
|
|
0.3
|
|
||
Limited partners' earnings on common units:
|
|
|
|
|
||||
Distributions
|
|
18.5
|
|
|
18.5
|
|
||
Allocation of distributions greater than earnings
|
|
(14.1
|
)
|
|
(6.6
|
)
|
||
Total limited partners' earnings on common units
|
|
4.4
|
|
|
11.9
|
|
||
|
|
|
|
|
||||
Weighted average limited partner units outstanding:
|
|
|
|
|
||||
Common - basic and diluted
|
|
46.2
|
|
|
46.2
|
|
||
Net income per limited partner unit:
|
|
|
|
|
||||
Common - basic and diluted
|
|
$
|
0.10
|
|
|
$
|
0.26
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Coal
|
|
$
|
64.3
|
|
|
$
|
40.3
|
|
Coke
|
|
7.2
|
|
|
6.4
|
|
||
Materials, supplies, and other
|
|
33.1
|
|
|
32.3
|
|
||
Total inventories
|
|
$
|
104.6
|
|
|
$
|
79.0
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Weighted - Average Remaining Amortization Years
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
|
|
|
(Dollars in millions)
|
||||||||||||||||||||||
Customer contracts
|
4
|
|
$
|
24.0
|
|
|
$
|
11.8
|
|
|
$
|
12.2
|
|
|
$
|
24.0
|
|
|
$
|
11.0
|
|
|
$
|
13.0
|
|
Customer relationships
|
13
|
|
28.7
|
|
|
8.0
|
|
|
20.7
|
|
|
28.7
|
|
|
7.5
|
|
|
21.2
|
|
||||||
Permits
|
23
|
|
139.0
|
|
|
18.7
|
|
|
120.3
|
|
|
139.0
|
|
|
17.4
|
|
|
121.6
|
|
||||||
Total
|
|
|
$
|
191.7
|
|
|
$
|
38.5
|
|
|
$
|
153.2
|
|
|
$
|
191.7
|
|
|
$
|
35.9
|
|
|
$
|
155.8
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
7.500 percent senior notes, due 2025 ("2025 Partnership Notes")
|
|
$
|
700.0
|
|
|
$
|
700.0
|
|
Revolving credit facility, due 2022 ("Partnership Revolver")
|
|
100.0
|
|
|
105.0
|
|
||
5.82 percent financing obligation, due 2021 ("Financing Obligation")
|
|
9.4
|
|
|
10.1
|
|
||
Total borrowings
|
|
809.4
|
|
|
815.1
|
|
||
Original issue discount
|
|
(5.1
|
)
|
|
(5.4
|
)
|
||
Debt issuance cost
|
|
(13.2
|
)
|
|
(13.6
|
)
|
||
Total debt and financing obligation
|
|
791.1
|
|
|
796.1
|
|
||
Less: current portion of long-term debt and financing obligation
|
|
2.8
|
|
|
2.8
|
|
||
Total long-term debt and financing obligation
|
|
$
|
788.3
|
|
|
$
|
793.3
|
|
|
Three months ended March 31, 2019
|
||
|
(Dollars in millions)
|
||
Operating leases
|
$
|
0.3
|
|
Short-term leases
(1)(2)
|
$
|
1.6
|
|
Total lease expense
|
$
|
1.9
|
|
(1)
|
Includes expenses for month-to-month equipment leases, which are classified as short-term as the Partnership is not reasonably certain to renew the lease term beyond one month.
|
(2)
|
Includes variable lease expenses, which are immaterial to the consolidated financial statements.
|
|
Three months ended March 31, 2019
|
|
Weighted average remaining lease term of operating leases
|
5.6 years
|
|
Weighted average discount rate of operating leases
|
5.2
|
%
|
|
Three months ended March 31, 2019
|
||
|
(Dollars in millions)
|
||
Operating cash flow information:
|
|
||
Cash paid for amounts included in the measurement of operating lease liabilities
|
$
|
0.4
|
|
(1)
|
Excluding the three months ended March 31, 2019.
|
•
|
Level 1—inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market.
|
•
|
Level 2—inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability.
|
•
|
Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability.
|
|
|
Three Months Ended March 31
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Sales and other operating revenue:
|
|
|
|
|
||||
Cokemaking
|
|
$
|
190.9
|
|
|
$
|
174.8
|
|
Energy
|
|
13.8
|
|
|
13.6
|
|
||
Logistics
|
|
25.1
|
|
|
24.4
|
|
||
Other
|
|
0.6
|
|
|
2.0
|
|
||
Sales and other operating revenue
|
|
$
|
230.4
|
|
|
$
|
214.8
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
|
(Dollars in millions)
|
|||||||
Sales and other operating revenue:
|
|
|
|
|
||||
AM USA
|
|
$
|
43.9
|
|
|
$
|
37.1
|
|
AK Steel
|
|
104.1
|
|
|
92.9
|
|
||
U.S. Steel
|
|
54.1
|
|
|
51.7
|
|
||
Foresight and Murray
|
|
10.9
|
|
|
14.1
|
|
||
Other
|
|
17.4
|
|
|
19.0
|
|
||
Sales and other operating revenue
|
|
$
|
230.4
|
|
|
$
|
214.8
|
|
|
|
2019
|
|
2018
|
||||
|
|
(Dollars in millions)
|
||||||
Beginning balance at December 31, 2018 and 2017, respectively
|
|
$
|
3.0
|
|
|
$
|
1.7
|
|
Reclassification of the beginning contract liabilities to revenue, as a result of performance obligation satisfied
|
|
(1.0
|
)
|
|
(0.6
|
)
|
||
Billings in excess of services performed, not recognized as revenue
|
|
5.5
|
|
|
2.5
|
|
||
Ending balance at March 31, 2019 and 2018, respectively
|
|
$
|
7.5
|
|
|
$
|
3.6
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
|
(Dollars in millions)
|
|||||||
Sales and other operating revenue:
|
|
|
|
|
||||
Domestic Coke
|
|
$
|
204.8
|
|
|
$
|
190.0
|
|
Logistics
|
|
25.6
|
|
|
24.8
|
|
||
Logistics intersegment sales
|
|
2.0
|
|
|
1.7
|
|
||
Elimination of intersegment sales
|
|
(2.0
|
)
|
|
(1.7
|
)
|
||
Total sales and other operating revenue
|
|
$
|
230.4
|
|
|
$
|
214.8
|
|
Adjusted EBITDA:
|
|
|
|
|
||||
Domestic Coke
|
|
$
|
39.3
|
|
|
$
|
40.3
|
|
Logistics
|
|
12.5
|
|
|
13.4
|
|
||
Corporate and Other
|
|
(4.1
|
)
|
|
(4.2
|
)
|
||
Total Adjusted EBITDA
|
|
$
|
47.7
|
|
|
$
|
49.5
|
|
Depreciation and amortization expense:
|
|
|
|
|
||||
Domestic Coke
|
|
$
|
22.5
|
|
|
$
|
14.7
|
|
Logistics
|
|
5.9
|
|
|
6.8
|
|
||
Total depreciation and amortization expense
|
|
$
|
28.4
|
|
|
$
|
21.5
|
|
Capital expenditures:
|
|
|
|
|
||||
Domestic Coke
|
|
$
|
11.6
|
|
|
$
|
10.3
|
|
Logistics
|
|
1.8
|
|
|
0.3
|
|
||
Total capital expenditures
|
|
$
|
13.4
|
|
|
$
|
10.6
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Segment assets:
|
|
|
|
|
||||
Domestic Coke
|
|
$
|
1,173.6
|
|
|
$
|
1,158.4
|
|
Logistics
|
|
459.3
|
|
|
458.7
|
|
||
Corporate and Other
|
|
0.9
|
|
|
2.0
|
|
||
Total assets
|
|
$
|
1,633.8
|
|
|
$
|
1,619.1
|
|
•
|
does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
|
•
|
does not reflect items such as depreciation and amortization;
|
•
|
does not reflect changes in, or cash requirements for, working capital needs;
|
•
|
does not reflect our interest expense, or the cash requirements necessary to service interest on or principal payments of our debt;
|
•
|
does not reflect certain other non-cash income and expenses;
|
•
|
excludes income taxes that may represent a reduction in available cash; and
|
•
|
includes net income attributable to noncontrolling interests.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
(Dollars in millions)
|
|||||||
Net income
|
|
$
|
4.9
|
|
|
$
|
12.7
|
|
Add:
|
|
|
|
|
||||
Depreciation and amortization expense
|
|
28.4
|
|
|
21.5
|
|
||
Interest expense, net
|
|
14.4
|
|
|
15.0
|
|
||
Income tax (benefit) expense
|
|
(0.1
|
)
|
|
0.3
|
|
||
Contingent consideration adjustments
(1)
|
|
(0.4
|
)
|
|
—
|
|
||
Simplification Transaction costs
|
|
0.5
|
|
|
—
|
|
||
Adjusted EBITDA
|
|
$
|
47.7
|
|
|
$
|
49.5
|
|
Subtract:
|
|
|
|
|
||||
Adjusted EBITDA attributable to noncontrolling interest
(2)
|
|
0.8
|
|
|
0.8
|
|
||
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
46.9
|
|
|
$
|
48.7
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
(Dollars in millions)
|
|||||||
Net cash provided by operating activities
|
|
$
|
25.7
|
|
|
$
|
66.1
|
|
Add:
|
|
|
|
|
||||
Cash interest paid, net of capitalized interest
|
|
0.4
|
|
|
1.5
|
|
||
Cash income tax paid
|
|
—
|
|
|
1.3
|
|
||
Changes in working capital
(3)
|
|
19.2
|
|
|
(19.6
|
)
|
||
Contingent consideration adjustments
(1)
|
|
(0.4
|
)
|
|
—
|
|
||
Simplification Transaction costs
|
|
0.5
|
|
|
—
|
|
||
Other adjustments to reconcile cash provided by operating activities to Adjusted EBITDA
|
|
2.3
|
|
|
0.2
|
|
||
Adjusted EBITDA
|
|
$
|
47.7
|
|
|
$
|
49.5
|
|
Subtract:
|
|
|
|
|
||||
Adjusted EBITDA attributable to noncontrolling interest
(2)
|
|
0.8
|
|
|
0.8
|
|
||
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
46.9
|
|
|
$
|
48.7
|
|
(1)
|
In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that requires the Partnership to make future payments to the seller based on future volume over a specified threshold, price and contract renewals. Contingent consideration adjustments in 2019 were primarily the result of modifications to the volume forecast.
|
(2)
|
Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest's share of interest, taxes, income, and depreciation and amortization.
|
(3)
|
Changes in working capital exclude those items not impacting Adjusted EBITDA, such as changes in interest payable.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Facility
|
|
Location
|
|
Coke
Customer
|
|
Year of
Start Up
|
|
Contract
Expiration
|
|
Number of
Coke Ovens
|
|
Annual Cokemaking
Capacity
(thousands of tons)
|
|
Use of Waste Heat
|
||
Granite City
|
|
Granite City, Illinois
|
|
U.S. Steel
|
|
2009
|
|
December 2025
|
|
120
|
|
|
650
|
|
|
Steam for power generation
|
Haverhill I
|
|
Franklin Furnace, Ohio
|
|
AM USA
|
|
2005
|
|
December 2020
|
|
100
|
|
|
550
|
|
|
Process steam
|
Haverhill II
|
|
Franklin Furnace, Ohio
|
|
AK Steel
|
|
2008
|
|
December 2021
|
|
100
|
|
|
550
|
|
|
Power generation
|
Middletown
(1)
|
|
Middletown, Ohio
|
|
AK Steel
|
|
2011
|
|
December 2032
|
|
100
|
|
|
550
|
|
|
Power generation
|
Total
|
|
|
|
|
|
|
|
|
|
420
|
|
|
2,300
|
|
|
|
(1)
|
Cokemaking capacity represents stated capacity for the production of blast furnace coke. The Middletown coke sales agreement provides for coke sales on a “run of oven” basis, which includes both blast furnace coke and small coke. Middletown nameplate capacity on a “run of oven” basis is
578 thousand
tons per year.
|
|
|
Three Months Ended March 31,
|
|
|
||||||||
|
|
2019
|
|
2018
|
|
Decrease
|
||||||
|
(Dollars in millions)
|
|||||||||||
Net income
|
|
$
|
4.9
|
|
|
$
|
12.7
|
|
|
$
|
(7.8
|
)
|
Net cash provided by operating activities
|
|
$
|
25.7
|
|
|
$
|
66.1
|
|
|
$
|
(40.4
|
)
|
Adjusted EBITDA
|
|
$
|
47.7
|
|
|
$
|
49.5
|
|
|
$
|
(1.8
|
)
|
|
|
Three Months Ended March 31,
|
|
|
||||||||
|
|
2019
|
|
2018
|
|
Increase (Decrease)
|
||||||
|
|
|
|
|
|
|
||||||
|
(Dollars in millions)
|
|||||||||||
Revenues
|
|
|
|
|
|
|
||||||
Sales and other operating revenue
|
|
$
|
230.4
|
|
|
$
|
214.8
|
|
|
$
|
15.6
|
|
Costs and operating expenses
|
|
|
|
|
|
|
||||||
Cost of products sold and operating expenses
|
|
174.1
|
|
|
157.1
|
|
|
17.0
|
|
|||
Selling, general and administrative expenses
|
|
8.7
|
|
|
8.2
|
|
|
0.5
|
|
|||
Depreciation and amortization expense
|
|
28.4
|
|
|
21.5
|
|
|
6.9
|
|
|||
Total costs and operating expenses
|
|
211.2
|
|
|
186.8
|
|
|
24.4
|
|
|||
Operating income
|
|
19.2
|
|
|
28.0
|
|
|
(8.8
|
)
|
|||
Interest expense, net
|
|
14.4
|
|
|
15.0
|
|
|
(0.6
|
)
|
|||
Income before income tax (benefit) expense
|
|
4.8
|
|
|
13.0
|
|
|
(8.2
|
)
|
|||
Income tax (benefit) expense
|
|
(0.1
|
)
|
|
0.3
|
|
|
(0.4
|
)
|
|||
Net income
|
|
4.9
|
|
|
12.7
|
|
|
(7.8
|
)
|
|||
Less: Net income attributable to noncontrolling interests
|
|
0.4
|
|
|
0.5
|
|
|
(0.1
|
)
|
|||
Net income attributable to SunCoke Energy Partners, L.P.
|
|
$
|
4.5
|
|
|
$
|
12.2
|
|
|
$
|
(7.7
|
)
|
•
|
Domestic Coke consists of our Haverhill facility, located in Franklin Furnace, Ohio, our Middletown facility, located in Middletown, Ohio, and our Granite City facility, located in Granite City, Illinois.
|
•
|
Logistics consists of Convent Marine Terminal ("CMT"), located in Convent, Louisiana, Kanawha River Terminal ("KRT"), located in Ceredo and Belle, West Virginia, and SunCoke Lake Terminal ("Lake Terminal"), located in East Chicago, Indiana. Lake Terminal is located adjacent to SunCoke's Indiana Harbor cokemaking facility.
|
|
|
Three Months Ended March 31,
|
|
|
||||||||
|
|
2019
|
|
2018
|
|
Increase (Decrease)
|
||||||
|
|
|
|
|
|
|
||||||
|
(Dollars in millions)
|
|||||||||||
Sales and other operating revenues:
|
|
|
|
|
|
|
||||||
Domestic Coke
|
|
$
|
204.8
|
|
|
$
|
190.0
|
|
|
$
|
14.8
|
|
Logistics
|
|
25.6
|
|
|
24.8
|
|
|
0.8
|
|
|||
Logistics intersegment sales
|
|
2.0
|
|
|
1.7
|
|
|
0.3
|
|
|||
Elimination of intersegment sales
|
|
(2.0
|
)
|
|
(1.7
|
)
|
|
(0.3
|
)
|
|||
Total sales and other operating revenues
|
|
$
|
230.4
|
|
|
$
|
214.8
|
|
|
$
|
15.6
|
|
Adjusted EBITDA
(1)
:
|
|
|
|
|
|
|
||||||
Domestic Coke
|
|
$
|
39.3
|
|
|
$
|
40.3
|
|
|
(1.0
|
)
|
|
Logistics
|
|
12.5
|
|
|
13.4
|
|
|
(0.9
|
)
|
|||
Corporate and Other
|
|
(4.1
|
)
|
|
(4.2
|
)
|
|
0.1
|
|
|||
Total Adjusted EBITDA
|
|
$
|
47.7
|
|
|
$
|
49.5
|
|
|
$
|
(1.8
|
)
|
Coke Operating Data:
|
|
|
|
|
|
|
||||||
Domestic Coke capacity utilization
|
|
101
|
%
|
|
98
|
%
|
|
3
|
%
|
|||
Domestic Coke production volumes (thousands of tons)
|
|
572
|
|
|
554
|
|
|
18
|
|
|||
Domestic Coke sales volumes (thousands of tons)
|
|
570
|
|
|
568
|
|
|
2
|
|
|||
Domestic Coke Adjusted EBITDA per ton
(2)
|
|
$
|
68.95
|
|
|
$
|
70.95
|
|
|
$
|
(2.00
|
)
|
Logistics Operating Data:
|
|
|
|
|
|
|
||||||
Tons handled (thousands of tons)
(3)
|
|
5,501
|
|
|
5,531
|
|
|
(30
|
)
|
|||
CMT take-or-pay shortfall tons (thousands of tons)
(4)
|
|
669
|
|
|
172
|
|
|
497
|
|
(1)
|
See
Note 12
in our consolidated financial statements for both the definition of Adjusted EBITDA and the reconciliations from GAAP to the non-GAAP measurement for the
three months ended March 31, 2019
and
2018
.
|
(2)
|
Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.
|
(3)
|
Reflects inbound tons handled during the period.
|
(4)
|
Reflects tons billed under take-or-pay contracts where services have not yet been performed.
|
|
|
Three months ended March 31, 2019 vs. 2018
|
||||||
|
|
Sales and other operating revenue
|
|
Adjusted EBITDA
|
||||
|
(Dollars in millions)
|
|||||||
Prior year period
|
|
$
|
190.0
|
|
|
$
|
40.3
|
|
Volumes
|
|
(2.1
|
)
|
|
(0.3
|
)
|
||
Coal cost recovery and yields
(1)
|
|
17.3
|
|
|
(1.7
|
)
|
||
Operating and maintenance costs
(2)
|
|
0.4
|
|
|
1.3
|
|
||
Energy and other
|
|
(0.8
|
)
|
|
(0.3
|
)
|
||
Current year period
|
|
$
|
204.8
|
|
|
$
|
39.3
|
|
(1)
|
The increase in coal cost recovery and yields was driven by higher coal prices. The benefit of higher coal prices was partly offset by the impact of higher coal moistures as a result of heavy rainfall during the winter of 2019, which negatively impacted coal-to-coke yields and Adjusted EBITDA by $1.3 million.
|
(2)
|
The first quarter of 2019 benefited from the timing of planned outage work as compared the same prior year period.
|
|
|
Three months ended March 31, 2019 vs. 2018
|
||||||
|
|
Sales and other operating revenue, inclusive of intersegment sales
|
|
Adjusted EBITDA
|
||||
|
(Dollars in millions)
|
|||||||
Prior year period
|
|
$
|
26.5
|
|
|
$
|
13.4
|
|
Transloading volumes
(1)
|
|
(1.7
|
)
|
|
(1.9
|
)
|
||
Price/margin impact of mix in transloading services
|
|
1.0
|
|
|
1.0
|
|
||
Operating and maintenance costs and other
(2)
|
|
1.8
|
|
|
—
|
|
||
Current year period
|
|
$
|
27.6
|
|
|
$
|
12.5
|
|
(1)
|
Revenues decreased due to lower export volumes at CMT, but were partially offset by higher volumes at our domestic terminals, which increased revenues $1.6 million as compared to the same prior year period.
|
(2)
|
Operating and maintenance costs and other reflects $0.5 million of incremental costs during the current year period resulting from high water levels.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Net cash provided by operating activities
|
|
$
|
25.7
|
|
|
$
|
66.1
|
|
Net cash used in investing activities
|
|
(13.4
|
)
|
|
(10.6
|
)
|
||
Net cash used in financing activities
|
|
(22.2
|
)
|
|
(20.6
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
|
$
|
(9.9
|
)
|
|
$
|
34.9
|
|
•
|
Ongoing capital expenditures required to maintain equipment reliability, ensure the integrity and safety of our coke ovens and steam generators and to comply with environmental regulations. Ongoing capital expenditures are made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and/or to extend their useful lives and also include new equipment that improves the efficiency, reliability or effectiveness of existing assets. Ongoing capital expenditures do not include normal repairs and maintenance expenses, which are expensed as incurred;
|
•
|
Environmental remediation project expenditures required to implement design changes to ensure that our existing facilities operate in accordance with existing environmental permits; and
|
•
|
Expansion capital expenditures to acquire and/or construct complementary assets to grow our business and to expand existing facilities as well as capital expenditures made to enable the renewal of a coke sales agreement and on which we expect to earn a reasonable return.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
|
|
(Dollars in millions)
|
||||||
Ongoing capital
|
|
$
|
8.9
|
|
|
$
|
3.3
|
|
Environmental remediation projects
(1)
|
|
4.5
|
|
|
7.3
|
|
||
Total
|
|
$
|
13.4
|
|
|
$
|
10.6
|
|
(1)
|
Includes
$1.2 million
and
$0.5 million
of capitalized interest, in connection with the environmental remediation projects, during the
three months ended March 31, 2019
and
2018
, respectively.
|
|
|
2019
|
||||||
|
|
Low
|
|
High
|
||||
|
|
(Dollars in millions)
|
||||||
Net Income
|
|
$
|
46
|
|
|
$
|
61
|
|
Add:
|
|
|
|
|
||||
Depreciation and amortization expense
|
|
110
|
|
|
105
|
|
||
Interest expense
|
|
60
|
|
|
60
|
|
||
Income tax expense
|
|
2
|
|
|
3
|
|
||
Adjusted EBITDA
|
|
$
|
218
|
|
|
$
|
229
|
|
Subtract:
|
|
|
|
|
||||
Adjusted EBITDA attributable to noncontrolling interest
(1)
|
|
3
|
|
|
4
|
|
||
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
215
|
|
|
$
|
225
|
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
2019
|
||||||
|
|
Low
|
|
High
|
||||
|
|
(Dollars in millions)
|
||||||
Net cash provided by operating activities
|
|
$
|
145
|
|
|
$
|
160
|
|
Add:
|
|
|
|
|
||||
Cash interest paid, net of capitalized interest
|
|
60
|
|
|
60
|
|
||
Cash income tax paid
|
|
2
|
|
|
3
|
|
||
Changes in working capital and other
(2)
|
|
11
|
|
|
6
|
|
||
Adjusted EBITDA
|
|
$
|
218
|
|
|
$
|
229
|
|
Subtract:
|
|
|
|
|
||||
Adjusted EBITDA attributable to noncontrolling interest
(1)
|
|
3
|
|
|
4
|
|
||
Adjusted EBITDA attributable to SunCoke Energy Partners, L.P.
|
|
$
|
215
|
|
|
$
|
225
|
|
(1)
|
Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest's share of interest, taxes, income, and depreciation and amortization.
|
(2)
|
Changes in working capital exclude those items not impacting Adjusted EBITDA, such as changes in interest payable.
|
•
|
changes in levels of production, production capacity, pricing and/or margins for coal and coke;
|
•
|
variation in availability, quality and supply of metallurgical coal used in the cokemaking process, including as a result of non-performance by our suppliers;
|
•
|
changes in the marketplace that may affect our logistics business, including the supply and demand for thermal and metallurgical coals;
|
•
|
changes in the marketplace that may affect our cokemaking business, including the supply and demand for our coke, as well as increased imports of coke from foreign producers;
|
•
|
competition from alternative steelmaking and other technologies that have the potential to reduce or eliminate the use of coke;
|
•
|
our dependence on, relationships with, and other conditions affecting, our customers;
|
•
|
our dependence on, relationships with, and other conditions affecting our suppliers;
|
•
|
severe financial hardship or bankruptcy of one or more of our major customers, or the occurrence of a customer default or other event affecting our ability to collect payments from our customers;
|
•
|
volatility and cyclical downturns in the coal market, in the carbon steel industry, and other industries in which our customers and/or suppliers operate;
|
•
|
our ability to repair aging coke ovens to maintain operational performance;
|
•
|
our ability to enter into new, or renew existing, long-term agreements upon favorable terms for the sale of coke, steam, or electric power, or for coal handling services (including transportation, storage and mixing);
|
•
|
our ability to identify acquisitions, execute them under favorable terms and integrate them into our existing business operations;
|
•
|
our ability to realize expected benefits from investments and acquisitions;
|
•
|
our ability to consummate investments under favorable terms, including with respect to existing cokemaking facilities, which may utilize by-product technology, in the U.S. and Canada, and integrate them into our existing businesses and have them perform at anticipated levels;
|
•
|
our ability to develop, design, permit, construct, start up or operate new cokemaking facilities in the U.S.;
|
•
|
our ability to successfully implement our growth strategy;
|
•
|
age of, and changes in the reliability, efficiency and capacity of the various equipment and operating facilities used in our cokemaking and/or logistics operations, and in the operations of our major customers, business partners and/or suppliers;
|
•
|
changes in the expected operating levels of our assets;
|
•
|
our ability to meet minimum volume requirements, coal-to-coke yield standards and coke quality standards in our coke sales agreements;
|
•
|
changes in the level of capital expenditures or operating expenses, including any changes in the level of environmental capital, operating or remediation expenditures;
|
•
|
our ability to service our outstanding indebtedness;
|
•
|
our ability to comply with the restrictions imposed by our financing arrangements;
|
•
|
our ability to comply with applicable federal, state, or local laws and regulations, including but not limited to those relating to environmental matters;
|
•
|
nonperformance or force majeure by, or disputes with, or changes in contract terms with, major customers, suppliers, dealers, distributors or other business partners;
|
•
|
availability of skilled employees for our cokemaking and/or logistics operations, and other workplace factors;
|
•
|
effects of railroad, barge, truck and other transportation performance and costs, including any transportation disruptions;
|
•
|
effects of adverse events relating to the operation of our facilities and to the transportation and storage of hazardous materials or regulated media (including equipment malfunction, explosions, fires, spills, impoundment failure and the effects of severe weather conditions);
|
•
|
effects of adverse events relating to the business or commercial operations of our customers and/or suppliers;
|
•
|
disruption in our information technology infrastructure and/or loss of our ability to securely store, maintain, or transmit data due to security breach by hackers, employee error or malfeasance, terrorist attack, power loss, telecommunications failure or other events;
|
•
|
our ability to enter into joint ventures and other similar arrangements under favorable terms;
|
•
|
our ability to consummate assets sales, other divestitures and strategic restructuring in a timely manner upon favorable terms, and/or realize the anticipated benefits from such actions;
|
•
|
changes in the availability and cost of equity and debt financing;
|
•
|
impacts on our liquidity and ability to raise capital as a result of changes in the credit ratings assigned to our indebtedness;
|
•
|
changes in credit terms required by our suppliers;
|
•
|
risks related to labor relations and workplace safety;
|
•
|
proposed or final changes in existing, or new, statutes, regulations, rules, governmental policies and taxes, or their interpretations, including those relating to environmental matters and taxes;
|
•
|
the existence of hazardous substances or other environmental contamination on property owned or used by us;
|
•
|
receipt of required permits and other regulatory approvals and compliance with contractual obligations in connection with our cokemaking and/or logistics operations;
|
•
|
risks related to environmental compliance;
|
•
|
claims of noncompliance with any statutory or regulatory requirements;
|
•
|
the accuracy of our estimates of any necessary reclamation and/or remediation activities;
|
•
|
proposed or final changes in accounting and/or tax methodologies, laws, regulations, rules, or policies, or their interpretations, including those affecting inventories, leases, income, or other matters;
|
•
|
our indebtedness and certain covenants in our debt documents;
|
•
|
changes in product specifications for the coke that we produce or the coals that we mix, store and transport;
|
•
|
changes in insurance markets impacting costs and the level and types of coverage available, and the financial ability of our insurers to meet their obligations;
|
•
|
inadequate protection of our intellectual property rights; and
|
•
|
effects of geologic conditions, weather, natural disasters and other inherent risks beyond our control.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 6.
|
Exhibits
|
Exhibit
Number
|
|
|
|
Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.3
|
|
|
|
Agreement and Plan of Merger dated as of February 4, 2019, by and among SunCoke Energy, Inc., SC Energy Acquisition LLC, SunCoke Energy Partners, L.P., and SunCoke Energy Partners GP LLC. (incorporated by reference to Exhibit 2.1 of the current Report on form 8-K, (file No. 001-35782) filed February 5, 2019.)
|
10.11
|
|
|
|
Support Agreement, dated as of February 4, 2019, by and between SunCoke Energy Partners, L.P., and Sun Coal & Coke LLC.(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-35782) filed on February 5, 2019.
|
|
|
|
|
|
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
101*
|
|
|
|
The following financial statements from the SunCoke Energy Partners L.P.'s Quarterly Report on Form 10-Q for the three months ended March 31, 2019, filed with the Securities and Exchange Commission on April 24, 2019, formatted in XBRL (eXtensible Business Reporting Language is attached to this report): (i) the Consolidated Statements of Income; (ii) the Consolidated Balance Sheets; (iii) the Consolidated Statements of Cash Flows; (iv) the Consolidated Statement of Equity; and, (v) the Notes to Consolidated Financial Statements.
|
*
|
Filed herewith.
|
SunCoke Energy Partners, L.P.
|
||
|
|
|
By:
|
|
SunCoke Energy Partners GP LLC, its general partner
|
|
|
|
By:
|
|
/s/ Fay West
|
|
|
Fay West
|
|
|
Senior Vice President and Chief Financial Officer
(As Principal Financial Officer and Duly Authorized Officer of SunCoke Energy Partners GP LLC)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2019
of SunCoke Energy Partners, L.P. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Michael G. Rippey
|
|
Chairman, President and Chief Executive Officer
|
|
April 24, 2019
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2019
of SunCoke Energy Partners, L.P. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Fay West
|
|
Senior Vice President and Chief Financial Officer
|
|
April 24, 2019
|
1.
|
This Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2019
fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in this Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2019
fairly presents, in all material respects, the financial condition and results of operations of SunCoke Energy Partners, L.P. for the periods presented therein.
|
1.
|
This Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2019
fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in this Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2019
fairly presents, in all material respects, the financial condition and results of operations of SunCoke Energy Partners, L.P. for the periods presented therein.
|
Mine or Operating Name/MSHA Identification Number
|
Section 104 S&S Citations (#)(2)
|
Section 104(b) Orders (#)(3)
|
Section 104(d) Citations and Orders (#)(4)
|
Section 110(b)(2) Violations (#)(5)
|
Section 107(a) Orders (#)(6)
|
Total Dollar Value of MSHA Assessments Proposed ($)(7)
|
Total Number of Mining Related Fatalities (#)
|
Received Notice of Pattern of Violations Under Section 104(e) (yes/no)(8)
|
Received Notice of Potential to Have Pattern Under Section 104(e) (yes/no)(9)
|
Legal Actions Pending as of Last Day of Period (#)(10)(11)
|
Legal Actions Initiated During Period (#)(12)
|
Legal Actions Resolved During Period (#)(13)
|
|
Ceredo Dock/46-09051
|
1
|
—
|
—
|
—
|
—
|
$—
|
—
|
No
|
No
|
—
|
—
|
—
|
|
Quincy Dock/46-07736
|
—
|
—
|
—
|
—
|
—
|
121
|
—
|
No
|
No
|
—
|
—
|
—
|
|
Colona Synfuel (Belfry #5)/15-10789
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
|
Total
|
1
|
—
|
—
|
—
|
—
|
$121.00
|
—
|
No
|
No
|
—
|
—
|
—
|
(1)
|
The table does not include the following: (i) facilities which have been idle or closed unless they received a citation or order issued by MSHA, (ii) permitted mining sites where we have not begun operations or (iii) mines that are operated on our behalf by contractors who hold the MSHA numbers and have the MSHA liabilities.
|
(2)
|
Alleged violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard.
|
(3)
|
Alleged failures to totally abate a citation within the period of time specified in the citation.
|
(4)
|
Alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with a mining safety standard or regulation.
|
(5)
|
Alleged flagrant violations issued.
|
(6)
|
Alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated.
|
(7)
|
Amounts shown include assessments proposed during the quarter ended
March 31, 2019
and do not necessarily relate to the citations or orders reflected in this table. Assessments for citations or orders reflected in this table may be proposed by MSHA after
March 31, 2019
.
|
(8)
|
Alleged pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety hazards.
|
(9)
|
Alleged potential to have a pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety hazards.
|
(10)
|
This number reflects legal proceedings which remain pending before the Federal Mine Safety and Health Review Commission (the “FMSHRC”) as of
March 31, 2019
. The pending legal actions may relate to the citations or orders issued by MSHA during the reporting period or to citations or orders issued in prior periods. The FMSHRC has jurisdiction to hear not only challenges to citations, orders, and penalties but also certain complaints by miners. The number of “pending legal actions” reported here reflects the number of contested citations, orders, penalties or complaints which remain pending as of
March 31, 2019
.
|
(11)
|
The legal proceedings which remain pending before the FMSHRC as of
March 31, 2019
are categorized as follows in accordance with the categories established in the Procedural Rules of the FMSHRC:
|
Mine or Operating Name/MSHA Identification Number
|
Contests of Citations and Orders (#)
|
Contests of Proposed Penalties (#)
|
Complaints for Compensation (#)
|
Complaints for Discharge, Discrimination or Interference Under Section 105 (#)
|
Applications for Temporary Relief (#)
|
Appeals of Judges’ Decisions or Orders (#)
|
Ceredo Dock/46-09051
|
—
|
—
|
—
|
—
|
—
|
—
|
Quincy Dock/46-07736
|
—
|
—
|
—
|
—
|
—
|
—
|
Colona Synfuel (Belfry #5)/15-10789
|
—
|
—
|
—
|
—
|
—
|
—
|
Total
|
—
|
—
|
—
|
—
|
—
|
—
|
(12)
|
This number reflects legal proceedings initiated before the FMSHRC during the quarter ended
March 31, 2019
. The number of “initiated legal actions” reported here may not have remained pending as of
March 31, 2019
.
|
(13)
|
This number reflects legal proceedings before the FMSHRC that were resolved during the quarter ended
March 31, 2019
.
|