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Summary of SunCoke Energy (SXC) Acquisition of Phoenix Global Conference Call Company and Industry - **Company**: SunCoke Energy (SXC) - **Acquisition Target**: Phoenix Global - **Industry**: Steel production services Key Points and Arguments 1. **Acquisition Details**: SunCoke Energy announced a definitive agreement to acquire Phoenix Global for $325 million, representing an acquisition multiple of approximately 5.4 times based on a last twelve months adjusted EBITDA of $61 million as of March 31, 2025 [5][6] 2. **Funding and Synergies**: The acquisition will be funded through cash on hand and borrowing from a revolver with a capacity of $350 million. Expected annual synergies from the transaction are approximately $15 million [6][17] 3. **Strategic Fit**: Phoenix Global is a leading provider of mission-critical services to major steel producers, enhancing SunCoke's reach to new industrial customers, including electric arc furnace operators [7][8] 4. **Long-term Contracts**: Phoenix has long-term contracts with a weighted average life of approximately six years, providing predictable revenue and limiting earnings volatility [11][12] 5. **Operational Efficiency**: SunCoke plans to leverage its operational and technical expertise to enhance Phoenix's operations, aiming for improved efficiency and increased EBITDA from existing services [38][57] 6. **Market Expansion**: The acquisition will allow SunCoke to expand its footprint in North America, Brazil, and Europe, and to serve a larger group of steel mills, particularly in the electric arc furnace segment [16][20] 7. **Debt Profile Post-Acquisition**: Post-acquisition, SunCoke's gross leverage is expected to be approximately 2.62 times based on pro forma combined adjusted EBITDA of $279 million, which is below the long-term target of three times [17][18] 8. **Commitment to Shareholders**: The acquisition is positioned to enhance long-term sustainable earnings growth and increase shareholder value, while maintaining the quarterly dividend [21][48] Additional Important Content 1. **Limited Commodity Exposure**: Phoenix's contracts are structured to limit exposure to commodity price fluctuations, primarily using indexed pricing for diesel fuel [30][31] 2. **Future Growth Opportunities**: There are significant opportunities for growth in the electric arc furnace market, where Phoenix currently serves only 7% of the U.S. market [42][43] 3. **Granulated Pig Iron Project**: The acquisition does not impact SunCoke's plans for the granulated pig iron project, which remains a priority despite delays [46][48] 4. **Corporate Synergies**: Immediate corporate synergies are expected from the removal of redundancies, with further efficiencies anticipated as operations are integrated [36][57] This summary encapsulates the critical aspects of the conference call regarding SunCoke Energy's acquisition of Phoenix Global, highlighting the strategic rationale, financial implications, and future growth potential within the steel production services industry.

Acquisition Overview - SunCoke Energy will acquire 100% of Phoenix Global for $325 million on a cash-free, debt-free basis[8] - The implied purchase price is approximately 54 times Phoenix's Last Twelve Months (LTM) Adjusted EBITDA as of March 31, 2025, which was $61 million[8] - The acquisition is expected to generate annual synergies of approximately $5 million to $10 million[8] Financial Impact and Debt Profile - The transaction is expected to be immediately accretive to SunCoke Energy[8] - Pro forma Adjusted EBITDA for the combined company is projected to be $279 million[18] - SunCoke's 2025E Consolidated Adjusted EBITDA guidance is $210 - $225 million[19] - Pro Forma Gross Debt / Adj EBITDA is expected to be 230x and Net Debt / Adj EBITDA is expected to be 141x[28] Strategic Benefits - The acquisition diversifies SunCoke's customer base to include Electric Arc Furnace (EAF) operators and expands its global footprint[11] - Phoenix has invested approximately $72 million in equipment since 2023 through a major capital investment plan[9] - Phoenix has a weighted average contract life of approximately 6 years, providing stable cash flows[15]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _____________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☐ 1934 For the transition period from to Commission File Number: 001-35243 SUNCOKE ENERGY, INC. (Exact name of registra ...

SunCoke Energy (SXC) Q1 2025 Earnings Call April 30, 2025 11:00 AM ET Company Participants Shantanu Agrawal - VP of Finance & TreasurerKatherine Gates - President & CEOMark Marinko - SVP & CFO Conference Call Participants Nick Giles - Senior Research AnalystNathan Martin - Equity Research Analyst Operator Good day, and welcome to the SunCoke Energy Q1 twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask que ...

Financial Data and Key Metrics Changes - SunCoke Energy reported consolidated adjusted EBITDA of $59.8 million for Q1 2025, down from $67.9 million in the prior year period, primarily due to lower economics on the Granite City contract extension and lower spot blast coke sales volumes [9][11][12] - Net income attributable to SunCoke was $0.20 per share in Q1 2025, a decrease of $0.03 compared to the prior year [11] - The company ended the quarter with a strong liquidity position of $543.7 million, including a cash balance of $193.7 million and a fully undrawn revolver of $350 million [10][15] Business Line Data and Key Metrics Changes - Domestic coke adjusted EBITDA was $49.9 million with sales volumes of 898,000 tons, impacted by lower economics and volumes at Granite City due to the contract extension [12] - The logistics business generated adjusted EBITDA of $13.7 million, an increase from $13 million in the prior year, driven by higher transloading volumes [13][14] Market Data and Key Metrics Changes - The spot glass coke pricing environment remains highly challenged, but demand for coke is present, with all spot blast and foundry coke sales finalized for the full year [9] - The company reaffirmed its full-year consolidated adjusted EBITDA guidance range of $210 million to $225 million [11][18] Company Strategy and Development Direction - The company is focused on maintaining strong safety and environmental performance while executing its operating and capital plans [16] - SunCoke is pursuing growth opportunities beyond the GPI project, emphasizing disciplined capital allocation to reward long-term shareholders [17][24] - The Granite City coke supply agreement with U.S. Steel has been extended through September 30, 2025, with an option for further extension [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain and volatile outlook for the steel industry but stated that coke production and sales plans remain on track [12] - The company expects to see improved margins in the second half of the year as contracts are adjusted and spot exposure increases [21][22] - Management remains cautious regarding capital expenditures, indicating a likelihood of not spending the previously planned $65 million due to current uncertainties [31][32] Other Important Information - A dividend of $0.12 per share is payable to shareholders on June 2, 2025 [9] - The company spent $4.9 million on capital expenditures in Q1 2025 [15] Q&A Session Summary Question: Annual guidance implies an uplift in quarterly adjusted EBITDA; can you discuss the cadence? - Management indicated that lower EBITDA in Q1 was expected due to contract timing, with expectations for improved performance in the second half of the year [20][21][22] Question: What are the capital allocation priorities beyond the GPI project? - Management emphasized a disciplined approach to identifying profitable growth opportunities while maintaining dividends to reward shareholders [24][25] Question: What drove the inventory build on the coal side? - The inventory build was attributed to seasonal factors and the new coal blend at the beginning of the year, with expectations for reversal later in the year [27][28] Question: Can you provide insights on the health of the foundry and export coke markets? - Management noted that while the market is challenging, they are closely monitoring conditions and have made strategic decisions to sell early in the year [36][37] Question: What drove the higher EBITDA per ton in the Domestic Coke segment? - The higher EBITDA per ton was influenced by the absence of lower-margin blast coke sales in Q1, with expectations to revert to guidance levels later in the year [40] Question: Was the lower production from Haverhill planned? - Yes, the lower production was planned and accounted for in the full-year guidance due to challenges in the spot coke market [41]

2 SunCoke Energy, Inc. Q1 2025 Earnings Conference Call Forward-Looking Statements This presentation should be reviewed in conjunction with the first quarter 2025 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on April 30, 2025 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 ide ...

SUNCOKE ENERGY, INC. REPORTS FIRST QUARTER 2025 RESULTS LISLE, Ill. (April 30, 2025) - SunCoke Energy, Inc. (NYSE: SXC) today reported results for first quarter 2025, reflecting solid performance despite challenging market conditions. "We are pleased with our performance in the first quarter given the headwinds currently facing the steel industry," said Katherine Gates, President and CEO of SunCoke Energy, Inc. "Our logistics business continued to perform well and delivered strong quarterly results. As prev ...

Market Expansion and Growth Opportunities - The company anticipates continued expansion into the foundry coke market as a potential growth opportunity[12]. - There are strategic plans for domestic and international growth, including the ability to identify and integrate acquisitions[20]. - The company aims to develop new cokemaking facilities, which may utilize by-product technology, to enhance production capabilities[20]. Financial Risks and Challenges - The company faces risks from international conflicts affecting global commodity prices and inflationary pressures[14]. - Inflation is impacting wages and operating expenses, which could affect overall profitability[14]. - There is a risk of severe financial hardship or bankruptcy of major customers, which could impact payment collections[14]. - Future capital raising may be impacted by changes in credit ratings assigned to the company's indebtedness[16]. Operational Performance and Compliance - The company is focused on maintaining operational performance by repairing aging coke ovens[14]. - The company is committed to compliance with environmental regulations and managing related costs[14]. - There are concerns regarding compliance with environmental regulations and the potential for hazardous materials incidents affecting operations[16]. - The company must navigate labor relations and the availability of skilled employees for cokemaking and logistics operations[16]. Supply Chain and Production Monitoring - The company is monitoring changes in the marketplace that may affect the supply and demand for coke products[14]. - Changes in production capacity and pricing for coal and coke are being closely observed[14]. - The company faces risks related to the availability, quality, and supply of metallurgical coal, which can impact cokemaking processes[16]. - The company is focused on securing new coal supply agreements and renewing existing ones to ensure operational continuity[16]. - The company is assessing the impacts of transportation performance and costs on its logistics operations[16]. Revenue Stability and Future Planning - The ability to enter into long-term agreements for the sale of coke and related services is crucial for future revenue stability[16]. - Future dividend declarations will be subject to approval by the Board of Directors based on existing circumstances[12]. - The company is committed to realizing expected benefits from investments and acquisitions while managing associated risks[20]. - The company is evaluating the impact of restrictive trade regulations on major customers and suppliers[14].

Core Insights - The article discusses potential investment opportunities in SXC, indicating a possible long position in the stock within the next 72 hours [1]. Group 1 - The analyst has no current stock, option, or similar derivative position in any of the companies mentioned [1]. - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [1]. - There is an indication of a potential beneficial long position through stock or call options in SXC [1]. Group 2 - The article does not provide any specific financial performance data or metrics related to SXC or other companies [2]. - No recommendations or advice are given regarding the suitability of investments for particular investors [2]. - The views expressed may not reflect those of Seeking Alpha as a whole, highlighting the independent nature of the analysis [2].