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Exhibit 99.1
Investors and Media:
Andy Kellogg & Kory Kutzke
(630) 824-1987
SUNCOKE ENERGY PARTNERS, L.P. ANNOUNCES FULL-YEAR 2018 RESULTS
AND PROVIDES 2019 GUIDANCE
| Net income attributable to SXCP was $11.2 million and $57.5 million in fourth quarter and full-year 2018, respectively |
| Operating cash flow was $14.8 million and $162.8 million in the fourth quarter and full-year 2018, with Operating Cash Flow Coverage Ratio of 0.78x and 2.16x, respectively |
| Full-year 2018 Adjusted EBITDA attributable to SXCP of $209.4 million, was slightly below our guidance range of $210 million to $215 million; Adjusted EBITDA attributable to SXCP was $52.2 million in fourth quarter 2018 |
| Full-year 2018 Distributable Cash Flow of $110.8 million and Distributable Cash Flow Coverage Ratio of 1.47x, in-line with our guidance range |
| Full-year 2019 Adjusted EBITDA attributable to SXCP guidance of $215 million to $225 million |
LISLE, Ill. (February 5, 2019) - SunCoke Energy Partners, L.P. (NYSE: SXCP) (the Partnership) today reported fourth quarter and full-year 2018 results, which reflect continued strong throughput volumes at the Partnerships Convent Marine Terminal (CMT) and solid performance from Middletown and Haverhill coke facilities, offset by an extended outage and machinery fire at Granite City.
While the extended outage at Granite City, which we completed in November, impacted our fourth quarter and full-year 2018 results, we expect this will enhance the long-term reliability and operational performance of these assets, said Mike Rippey, Chairman, President and Chief Executive Officer of SunCoke Energy Partners, L.P. The other facilities across the SXCP portfolio continued to deliver strong results in 2018, including handling record volumes at CMT and solid operating performances from our Middletown and Haverhill coke facilities.
Rippey continued, As we move forward into 2019, we are focused on delivering operational excellence and the Partnership expects Adjusted EBITDA attributable to SXCP to be between $215 million and $225 million.
In addition, the Partnership also announced it has entered into a definitive merger agreement with SunCoke Energy, Inc. (NYSE: SXC) whereby SXC will acquire all outstanding common units of SXCP not already owned by SXC in a stock-for-unit exchange transaction (Simplification Transaction). Pursuant to the terms of the merger agreement, SXCP unaffiliated common unitholders will receive 1.40 SXC common shares for each SXCP common unit.
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The increase was driven by a favorable year-over-year change of approximately $31 million in primary working capital, which is comprised of accounts receivable, inventories and accounts payable, primarily as a result of the timing of coal purchases and the settlement of balances with SunCoke during 2017.
Corporate expenses increased $1.3 million to $16.6 million in 2018 compared to $15.3 million in 2017, primarily as a result higher allocation of costs from SunCoke as well as costs to resolve certain legal matters during 2018.
The decrease in operating cash flows was primarily driven by the unfavorable year-over-year change in primary working capital, of which approximately $25 million was due to fluctuating coal prices and inventory levels.
In 2017, volumes were negatively impacted by a decrease in volumes to AK Steel, for which AK Steel provided make whole payments.
Cash Flow Summary The following table sets forth a summary of the net cash provided by (used in) operating, investing and financing activities for the years ended December 31, 2018, 2017 and 2016: Net cash provided by operating activities increased $26.1 million to $162.8 million in 2018 as compared to 2017.
$ $ Add: Depreciation and...Read more
The improvement in 2017 as...Read more
Net cash used in investing...Read more
Net cash used in investing...Read more
In 2018, these volumes to...Read more
Management believes Adjusted EBITDA is...Read more
Revenues and the impact of...Read more
To the extent permitted by...Read more
Interest expense in 2018 reflects...Read more
Ongoing capital expenditures do not...Read more
A purchase obligation is an...Read more
Our future results and financial...Read more
Partly offsetting this benefit were...Read more
The increase in related interest...Read more
This measure is not in...Read more
Additionally, in May 2018, Moody?s...Read more
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Suncoke Energy Partners, L.P. provided additional information to their SEC Filing as exhibits
Ticker: SXCP
CIK: 1555538
Form Type: 10-K Annual Report
Accession Number: 0001555538-19-000003
Submitted to the SEC: Fri Feb 15 2019 3:28:47 AM EST
Accepted by the SEC: Fri Feb 15 2019
Period: Monday, December 31, 2018
Industry: Steel Works Blast Furnaces And Rolling Mills Coke Ovens