Attached files
| file | filename |
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| 8-K - 8-K - SunCoke Energy Partners, L.P. | d461110d8k.htm |
 Convent Marine Terminal
Investor Tour September 27, 2017 Exhibit 99.1 |
 Forward-Looking Statements
2 2017 Convent Marine Terminal Investor Tour Some of the information included in this presentation constitutes “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. All statements in this presentation that express opinions, expectations, beliefs, plans, objectives, assumptions or projections with respect to anticipated future performance of SXC or
SunCoke Energy Partners, L.P. (SXCP), in contrast with statements
of historical facts, are forward-looking statements. Such forward-looking statements are based on management’s beliefs and assumptions and on information currently available. Forward-looking statements include
information concerning possible or assumed future results of
operations, business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition and the effects of future legislation or
regulations. Forward-looking statements include all
statements that are not historical facts and may be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,”
“estimate,” “predict,” “potential,” “continue,” “may,” “will,” “should” or the negative of these terms or similar expressions. Although management believes that its plans, intentions and expectations reflected in or suggested by the forward-looking statements
made in this presentation are reasonable, no assurance can be
given that these plans, intentions or expectations will be achieved when anticipated or at all. Moreover, such statements are subject to a number of assumptions, risks and uncertainties. Many of these risks are
beyond the control of SXC and SXCP, and may cause actual results
to differ materially from those implied or expressed by the forward-looking statements. Each of SXC and SXCP 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. For more information concerning these factors, see the Securities and Exchange Commission filings of SXC and SXCP. All
forward-looking statements included in this presentation are
expressly qualified in their entirety by such cautionary statements. Although forward-looking statements are based on current beliefs and expectations, caution should be taken not to place undue reliance on any such
forward-looking statements because such statements speak only
as of the date hereof. SXC and SXCP do not have any intention or obligation to update publicly any forward-looking statement (or its associated cautionary language) whether as a result of new information or future events or
after the date of this presentation, except as required by
applicable law. This presentation includes certain non-GAAP financial measures intended to
supplement, not substitute for, comparable GAAP measures.
Reconciliations of non-GAAP financial measures to GAAP financial measures
are provided in the Appendix at the end of the presentation.
Investors are urged to consider carefully the comparable GAAP measures and the
reconciliations to those measures provided in the Appendix. |
 Advantaged Logistics Footprint
3 2017 Convent Marine Terminal Investor Tour • SunCoke provides critical logistics services to coal producers, steelmakers and utility companies with the ability to support aggregates and other bulk commodity suppliers via truck, rail, river barge and ocean-going vessels
• Experienced operations and business development teams with know-how to grow business and exploit opportunities in
adjacencies •
Expect FY 2017 Adjusted EBITDA contribution of $67M – $72M, up from FY 2016 contribution of $63.2M Convent Marine Terminal Lake Terminal Kanawha River Location Capabilities & Capacity Customer(s) Take-or-Pay Contract Expiration Source: FactSet 1) 10 million ton take-or-pay contract through 2022, followed by take-or-pay contract for 4Mt throughput in
2023 Mississippi River (Mile 161)
Convent, Louisiana
• Material mixing • Direct rail access (only terminal on lower MI River) • 15Mtpa throughput capacity; 1.5Mt ground storage • Multi-commodity capable w/ 10M gallons liquid storage • Foresight Energy • Murray Energy • 10Mt ToP contract 2022 (1) East Chicago, Indiana • Coal handling and blending • Direct rail access (inbound) • Indiana Harbor (SXC) • 1.85Mt ToP with SXC’s Indiana Harbor cokemaking facility 2023 Ohio River (Mile 315, Ceredo, WV) Kanawha River (Mile 73, Quincy, WV) • Blending system (Ceredo) • Direct rail access (Ceredo & Quincy) • 25Mta capacity; 0.675Mt ground storage and 5.2M gallon liquid storage facility • Various metallurgical and thermal coal producers and consumers, including coal miners, coke producers and power utilities • ~0.8Mt ToP contract with SXCP’s Middletown cokemaking facility 2030 FY 2016 Adj. EBITDA $50.5M KRT and Lake Terminal Combined: $12.7M |
 Compelling Logistics Business Model
• Strategically located terminal with significant logistical advantages,
including direct rail access via Canadian National Railroad at CMT • State-of-the-art facility with recently completed modernization project
• Physical facility footprint suitable for further expansion • Access to coal,
petcoke, liquids and other industrial material markets
Advantaged Gulf
Coast Facility Competitive, Low-Cost ILB Producers Attractive Seaborne Export Dynamics • Low-cost position in strategic Illinois Basin (“ILB”) market insulates
customers from any potential market
contraction •
Both ILB customers have completed key refinancing efforts, significantly improving customer credit profiles • U.S. thermal coal producers continue to augment domestic demand with export shipments • Seaborne thermal coal market expected to remain resilient long-term
• CMT positioned to ship exports into Europe, Mediterranean and Southeast Asia …provide support for continued Logistics performance • Strategically located assets with access to barge, rail and truck • Provide key logistics
services for various met. and thermal coal producers and consumers, including coal miners, coke producers
and power utilities
Well Positioned
Domestic Logistics Facilities 4 2017 Convent Marine Terminal Investor Tour |
 KRT and Lake Terminal Overview
Assets well positioned to deliver stable, long-term results
• Coal unloading, storage and blending facility adjacent to SunCoke’s Indiana Harbor facility • 10-year, take-or-pay contract with Indiana Harbor to provide all coal handling services required for the coke plant • Cost of services passed through to ArcelorMittal via Indiana Harbor coke purchase agreement • Acquired August 2013 Lake Terminal • Locations on Ohio River system well positioned to serve coal miners, power companies and steelmakers • 25 million tons of annual capacity, as well as a liquid storage facility • >10 customers • Continue to handle mix of both metallurgical and thermal coals • Acquired October 2013 Kanawha River Terminal (KRT) 5 2017 Convent Marine Terminal Investor Tour |
 World-Class Logistics Terminal
• CMT strategically located as only dry-bulk, rail-serviced terminal on
lower Mississippi
– Serviced by Canadian National railway, with multiple interchanges possible for UP, BNSF, NS, CSX and others – Provides customers with cost, quality and time advantages vs. barge transportation – River dredged for 47 foot draft • Low-cost, efficient and highly automated operations • Completed $120M expansion to significantly modernize facility and increase operational efficiency – Commissioned new, state-of-the art shiploader that enables dual-Panamax shiploading capabilities and provides ability to efficiently load Panamax vessels in ~26 hours – New berth/shiploader can load cape-sized vessels to ~85% capacity at current draft limit (50 foot draft, near 100%) – Annual capacity now 15Mt, providing opportunity to ship added thermal coal volume/expand into new verticals • Access to seaborne markets for coal, petcoke, liquids and other industrial materials provides potential growth opportunities CMT’s Competitive Advantages 6 2017 Convent Marine Terminal Investor Tour |
 CMT New Business Opportunities
7 2017 Convent Marine Terminal Investor Tour Active pipeline of opportunities to grow EBITDA by $5M to $10M in next two years; new capabilities to provide platform for long-term growth • Developed new domestic thermal coal business in Q3 ‘16 – U.S. utility shipping thermal coal destined for Florida – Expect to again handle volumes throughout 2018 • Recently secured new aggregates customer (via water to ground storage) – Multi-year contract with firm use commitments and upside – Began handling volumes in Q3 2017 New Capabilities Near-term Opportunities Recent Wins • Potential for additional coal export activity (Western low sulfur) • Additional dry bulk business, including petcoke – Would further diversify customer and product base while leveraging existing capacity • Utilize existing infrastructure to diversify product handling into liquids • Completed $120M modernization program in 2017, including commissioning of new shiploader • Developing short-term and long- term barge unloading solutions – Once complete, CMT’s multi-modal capabilities would cover all modes of transport options |
 Potential Petcoke Opportunities 8 2017 Convent Marine Terminal Investor Tour Source: PLG Consulting CMT has significant opportunity to leverage existing rail service to secure new petcoke business in Gulf Coast and Great Lakes regions Refinery Estimated Annual Petcoke Capacity (MT) BP – Whiting, IN ~1.9Mt Flint Hills – St Paul ~1.4Mt Marathon – Robinson ~0.5Mt XOM – Baton Rouge ~1.9Mt Marathon – Garyville ~2.0Mt XOM - Joliet ~1.1Mt WRB – Wood River ~1.7Mt Valero - Norco ~1.6Mt |
 CMT’S NEW SHIPLOADER |
 Shiploader Construction In-Process 10 2017 Convent Marine Terminal Investor Tour |
 11 2017 Convent Marine Terminal Investor Tour Shiploader Construction In-Process |
 12 2017 Convent Marine Terminal Investor Tour Shiploader Construction In-Process |
 CMT’s New Shiploader
13 2017 Convent Marine Terminal Investor Tour |
 CMT’s New Shiploader
14 2017 Convent Marine Terminal Investor Tour |
 CMT’s New Shiploader
15 2017 Convent Marine Terminal Investor Tour |
 QUESTIONS? |