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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 June 30, 2024
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 registrant as specified in its charter)
 ______________________________________________________________________ 
Delaware 90-0640593
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
1011 Warrenville Road, Suite 600
Lisle, Illinois 60532
(Address of principal executive offices, including zip code)
(630) 824-1000
(Registrant’s telephone number, including area code)
 ____________________________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class 
Trading Symbol(s)
 Name of each exchange on which registered
Common Stock, par value $0.01 per share SXC New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ý  Yes    ¨  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     ý  Yes    ¨  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer¨Accelerated filerý
Non-accelerated filer¨Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes    ý  No
As of July 26, 2024, there were 84,092,327 shares of the Registrant’s Common Stock, par value $0.01 per share outstanding.


SUNCOKE ENERGY, INC.
TABLE OF CONTENTS


CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
We have made forward-looking statements in this Quarterly Report on Form 10-Q, including, among others, in the sections entitled “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained 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 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. Such forward-looking statements are based on management’s beliefs, expectations and assumptions based upon information currently available, and include, but are not limited to, statements concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, potential growth opportunities (including, among other things, continued expansion into the foundry coke market), the influence of competition, and the effects of future legislation or regulations. In addition, statements in this Quarterly Report on Form 10-Q concerning future dividend declarations are subject to approval by our Board of Directors and will be based upon circumstances then existing. Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SunCoke management, and upon assumptions by SunCoke concerning future conditions, any or all of which ultimately may prove to be inaccurate.
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements. The forward-looking statements made in this Quarterly Report on Form 10-Q should not be construed by you to be exhaustive and speak only as of the date of this report. We do not have any intention or obligation to update any forward-looking statement (or its associated cautionary language), whether as a result of new information or future events, after the date of this Quarterly Report on Form 10-Q, except as required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
The risk factors discussed in “Risk Factors” in our Annual Report on Form 10-K and this Quarterly Report on Form 10-Q could cause our results to differ materially from those expressed in the forward-looking statements made in this Quarterly Report on Form 10-Q. There also may be other risks that are currently unknown to us or that we are unable to predict at this time. Such risks and uncertainties include, without limitation:
actual or potential impacts of international conflicts and humanitarian crises on global commodity prices, inflationary pressures, and state sponsored cyber activity;
the effect of inflation on wages and operating expenses;
volatility and cyclical downturns in the steel industry and in other industries in which our customers and/or suppliers operate;
changes in the marketplace that may affect our cokemaking business, including the supply and demand for our coke products, as well as increased imports of coke from foreign producers;
volatility, cyclical downturns and other change in the business climate and market for coal, affecting customers or potential customers for our logistics business;
changes in the marketplace that may affect our logistics business, including the supply and demand for thermal and metallurgical coal;
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;
our ability to repair aging coke ovens to maintain operational performance;
age of, and changes in the reliability, efficiency and capacity of the various equipment and operating facilities used in our cokemaking operations, and in the operations of our subsidiaries major customers, business partners and/or suppliers;
changes in the expected operating levels of our assets;
changes in the level of capital expenditures or operating expenses, including any changes in the level of environmental capital, operating or remediation expenditures;
changes in levels of production, production capacity, pricing and/or margins for coal and coke;
changes in product specifications for the coke that we produce or the coals we mix, store and transport;


our ability to meet minimum volume requirements, coal-to-coke yield standards and coke quality standards in our coke sales agreements;
variation in availability, quality and supply of metallurgical coal used in the cokemaking process, including as a result of non-performance by our suppliers;
effects of geologic conditions, weather, natural disasters and other inherent risks beyond our control;
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);
the existence of hazardous substances or other environmental contamination on property owned or used by us;
required permits and other regulatory approvals and compliance with contractual obligations and/or bonding requirements in connection with our cokemaking, logistics operations, and/or former coal mining activities;
the availability of future permits authorizing the disposition of certain mining waste and the management of reclamation areas;
risks related to environmental compliance;
our ability to comply with applicable federal, state or local laws and regulations, including, but not limited to, those relating to environmental matters;
risks related to labor relations and workplace safety;
availability of skilled employees for our cokemaking, and/or logistics operations, and other workplace factors;
our ability to service our outstanding indebtedness;
our indebtedness and certain covenants in our debt documents;
our ability to comply with the covenants and restrictions imposed by our financing arrangements;
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;
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 and/or suppliers;
consolidation of major customers;
nonperformance or force majeure by, or disputes with, or changes in contract terms with, major customers, suppliers, dealers, distributors or other business partners;
effects of adverse events relating to the business or commercial operations of our customers and/or suppliers;
changes in credit terms required by our suppliers;
our ability to secure new coal supply agreements or to renew existing coal supply agreements;
effects of railroad, barge, truck and other transportation performance and costs, including any transportation disruptions;
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 handling services of coal and other aggregates (including transportation, storage and mixing);
our ability to enter into new, or renew existing, agreements upon favorable terms for logistics services;
our ability to successfully implement domestic and/or international growth strategies;
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 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;
our ability to consummate investments under favorable terms, including with respect to existing cokemaking facilities, which may utilize by-product technology, 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. or in foreign countries;
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;
the accuracy of our estimates of reclamation and other environmental obligations;
risks related to obligations under mineral leases retained by us in connection with the divestment of our legacy coal mining business;
risks related to the ability of the assignee(s) to perform in compliance with applicable requirements under mineral leases assigned in connection with the divestment of our legacy coal mining business;
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;
proposed or final changes in accounting and/or tax methodologies, laws, regulations, rules, or policies, or their interpretations, including those affecting inventories, leases, post-employment benefits, income, or other matters;
changes in federal, state, or local tax laws or regulations, including the interpretations thereof;
claims of noncompliance with any statutory or regulatory requirements;
changes in insurance markets impacting cost, level and/or types of coverage available, and the financial ability of our insurers to meet their obligations;
inadequate protection of our intellectual property rights;
volatility in foreign currency exchange rates affecting the markets and geographic regions in which we conduct business; and
historical consolidated financial data may not be reliable indicators of future results.
The factors identified above are believed to be important factors, but not necessarily all of the important factors, that could cause actual results to differ materially from those expressed in any forward-looking statement made by us. Other factors not discussed herein also could have material adverse effects on us. All forward-looking statements included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by the foregoing cautionary statements.
In addition, our discussion of certain environmental, social and governance (“ESG”) assessments and related issues in this or other disclosures, including on our corporate website, is informed by various ESG standards and frameworks (including standards for the measurement of underlying data) and the interests of various stakeholders. As such, such information may not be, and should not be interpreted as necessarily being, “material” under the federal securities laws for Securities and Exchange Commission (“SEC”) reporting purposes. Furthermore, much of this information is subject to assumptions, methodologies, or third-party information that is still evolving and subject to repeated change. Our disclosures may change as a result of changes in frameworks, availability or quality of information, changes in business or government policy, or other factors, which may be out of our control.


PART I – FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
SunCoke Energy, Inc.
Consolidated Statements of Income
(Unaudited)
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
 (Dollars and shares in millions, except per share amounts)
Revenues
Sales and other operating revenue$470.9 $534.4 $959.3 $1,022.2 
Costs and operating expenses
Cost of products sold and operating expenses
389.7 443.1 791.9 845.1 
Selling, general and administrative expenses17.8 17.4 36.2 36.2 
Depreciation and amortization expense28.7 36.4 62.0 71.7 
Total costs and operating expenses436.2 496.9 890.1 953.0 
Operating income34.7 37.5 69.2 69.2 
Interest expense, net5.8 7.2 12.1 14.4 
Income before income tax expense28.9 30.3 57.1 54.8 
Income tax expense5.6 8.3 12.7 15.1 
Net income23.3 22.0 44.4 39.7 
Less: Net income attributable to noncontrolling interests1.8 1.6 2.9 3.0 
Net income attributable to SunCoke Energy, Inc.$21.5 $20.4 $41.5 $36.7 
Earnings attributable to SunCoke Energy, Inc. per common share:
Basic$0.25 $0.24 $0.49 $0.43 
Diluted$0.25 $0.24 $0.49 $0.43 
Weighted average number of common shares outstanding:
Basic85.1 84.7 85.0 84.6 
Diluted85.3 84.9 85.3 84.9 
(See accompanying notes to the consolidated financial statements)
1

SunCoke Energy, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited) 
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
 
(Dollars in millions)
Net income$23.3 $22.0 $44.4 $39.7 
Other comprehensive income (loss):
Reclassifications of prior service benefit and actuarial loss amortization to earnings, net of tax  0.1 0.1 
Currency translation adjustment(0.7)0.4 (0.9)0.5 
Comprehensive income22.6 22.4 43.6 40.3 
Less: Comprehensive income attributable to noncontrolling interests1.8 1.6 2.9 3.0 
Comprehensive income attributable to SunCoke Energy, Inc.$20.8 $20.8 $40.7 $37.3 
(See accompanying notes to the consolidated financial statements)
2

SunCoke Energy, Inc.
Consolidated Balance Sheets
June 30, 2024December 31, 2023
(Unaudited)
 (Dollars in millions, except
par value amounts)
Assets
Cash and cash equivalents$81.9 $140.1 
Receivables, net146.1 88.3 
Inventories 208.3 182.6 
Income tax receivable 1.4 
Other current assets11.5 4.4 
Total current assets447.8 416.8 
Properties, plants and equipment (net of accumulated depreciation of $1,442.9 million and $1,383.6 million at June 30, 2024 and December 31, 2023, respectively)
1,159.7 1,191.1 
Intangible assets, net30.1 31.1 
Deferred charges and other assets19.9 21.4 
Total assets$1,657.5 $1,660.4 
Liabilities and Equity
Accounts payable$154.0 $172.1 
Accrued liabilities46.5 51.7 
Income tax payable1.5  
Total current liabilities202.0 223.8 
Long-term debt491.3 490.3 
Accrual for black lung benefits54.7 53.2 
Retirement benefit liabilities15.0 15.8 
Deferred income taxes189.8 190.4 
Asset retirement obligations14.6 14.1 
Other deferred credits and liabilities23.4 27.3 
Total liabilities990.8 1,014.9 
Equity
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at both June 30, 2024 and December 31, 2023
  
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 99,496,809 and 99,161,446 shares at June 30, 2024 and December 31, 2023, respectively
1.0 1.0 
Treasury stock, 15,404,482 shares at both June 30, 2024 and December 31, 2023
(184.0)(184.0)
Additional paid-in capital729.2 729.8 
Accumulated other comprehensive loss(13.6)(12.8)
Retained earnings104.3 80.2 
Total SunCoke Energy, Inc. stockholders’ equity636.9 614.2 
Noncontrolling interest29.8 31.3 
Total equity666.7 645.5 
Total liabilities and equity$1,657.5 $1,660.4 
(See accompanying notes to the consolidated financial statements)
3

SunCoke Energy, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
 Six Months Ended June 30,
 20242023
 (Dollars in millions)
Cash Flows from Operating Activities
Net income$44.4 $39.7 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense62.0 71.7 
Deferred income tax (benefit) expense(0.6)6.1 
Share-based compensation expense3.0 3.2 
Changes in working capital pertaining to operating activities:
Receivables, net(57.4)7.6 
Inventories(25.6)(25.2)
Accounts payable(14.7)15.1 
Accrued liabilities(5.1)(17.4)
Income taxes2.9 0.9 
Other operating activities(8.2)(2.8)
Net cash provided by operating activities0.7 98.9 
Cash Flows from Investing Activities
Capital expenditures(33.0)(50.4)
Other investing activities(0.4)0.4 
Net cash used in investing activities(33.4)(50.0)
Cash Flows from Financing Activities
Proceeds from revolving facility11.0 222.0 
Repayment of revolving facility(11.0)(257.0)
Repayment of financing obligation (1.7)
Dividends paid(17.4)(13.9)
Cash distribution to noncontrolling interests(4.4)(6.7)
Other financing activities(3.7)(3.4)
Net cash used in financing activities(25.5)(60.7)
Net decrease in cash and cash equivalents(58.2)(11.8)
Cash and cash equivalents at beginning of period140.1 90.0 
Cash and cash equivalents at end of period$81.9 $78.2 
Supplemental Disclosure of Cash Flow Information
Interest paid$12.2 $13.3 
Income taxes paid$10.4 $8.0 
(See accompanying notes to the consolidated financial statements)
4

SunCoke Energy, Inc.
Consolidated Statements of Equity
Three Months Ended June 30, 2024
(Unaudited)
Common StockTreasury StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Total  SunCoke
Energy, Inc.  Equity
Non-controlling
Interests
Total
Equity
SharesAmountSharesAmount
(Dollars in millions)
At March 31, 202499,479,966 $1.0 15,404,482 $(184.0)$727.5 $(12.9)$91.4 $623.0 $30.2 $653.2 
Net income— — — — — — 21.5 21.5 1.8 23.3 
Currency translation adjustment— — — — — (0.7)— (0.7)— (0.7)
Share-based compensation— — — — 1.7 — — 1.7 — 1.7 
Share issuances, net of shares withheld for taxes16,843 — — — — — — — — — 
Dividends— — — — — — (8.6)(8.6)— (8.6)
Cash distribution to noncontrolling interests— — — — — — — — (2.2)(2.2)
At June 30, 202499,496,809 $1.0 15,404,482 $(184.0)$729.2 $(13.6)$104.3 $636.9 $29.8 $666.7 
SunCoke Energy, Inc.
Consolidated Statements of Equity
Three Months Ended June 30, 2023
(Unaudited)
Common StockTreasury StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Total  SunCoke
Energy, Inc.  Equity
Non-controlling
Interests
Total
Equity
SharesAmountSharesAmount
(Dollars in millions)
At March 31, 202399,124,637 $1.0 15,404,482 $(184.0)$726.3 $(12.8)$63.0 $593.5 $34.8 $628.3 
Net income— — — — — — 20.4 20.4 1.6 22.0 
Currency translation adjustment— — — — — 0.4 — 0.4 — 0.4 
Share-based compensation— — — — 1.6 — — 1.6 — 1.6 
Share issuances, net of shares withheld for taxes36,062 — — — — — — — — — 
Dividends— — — — — — (6.9)(6.9)— (6.9)
Cash distribution to noncontrolling interests— — — — — — — — (3.0)(3.0)
At June 30, 202399,160,699 $1.0 15,404,482 $(184.0)$727.9 $(12.4)$76.5 $609.0 $33.4 $642.4 
(See accompanying notes to the consolidated financial statements)

5

SunCoke Energy, Inc.
Consolidated Statements of Equity
Six Months Ended June 30, 2024
(Unaudited)
Common StockTreasury StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Total  SunCoke
Energy, Inc.  Equity
Non-controlling
Interests
Total
Equity
SharesAmountSharesAmount
(Dollars in millions)
At December 31, 202399,161,446 $1.0 15,404,482 $(184.0)$729.8 $(12.8)$80.2 $614.2 $31.3 $645.5 
Net income— — — — — — 41.5 41.5 2.9 44.4 
Reclassifications of prior service benefit and actuarial loss amortization to earnings, net of tax— — — — — 0.1 — 0.1 — 0.1 
Currency translation adjustment— — — — — (0.9)— (0.9)— (0.9)
Share-based compensation— — — — 3.0 — — 3.0 — 3.0 
Share issuances, net of shares withheld for taxes335,363 — — — (3.6)— — (3.6)— (3.6)
Dividends— — — — — — (17.4)(17.4)— (17.4)
Cash distribution to noncontrolling interests— — — — — — — — (4.4)(4.4)
At June 30, 202499,496,809 $1.0 15,404,482 $(184.0)$729.2 $(13.6)$104.3 $636.9 $29.8 $666.7 
SunCoke Energy, Inc.
Consolidated Statements of Equity
Six Months Ended June 30, 2023
(Unaudited)
Common StockTreasury StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Total  SunCoke
Energy, Inc.  Equity
Non-controlling
Interests
Total
Equity
SharesAmountSharesAmount
(Dollars in millions)
At December 31, 202298,815,780 $1.0 15,404,482 $(184.0)$728.1 $(13.0)$53.5 $585.6 $37.1 $622.7 
Net income— — — — — — 36.7 36.7 3.0 39.7 
Reclassifications of prior service benefit and actuarial loss amortization to earnings, net of tax— — — — — 0.1 — 0.1 — 0.1 
Currency translation adjustment— — — — — 0.5 — 0.5 — 0.5 
Share-based compensation— — — — 3.2 — — 3.2 — 3.2 
Share issuances, net of shares withheld for taxes
344,919 — — — (3.4)— — (3.4)— (3.4)
Dividends— — — — — — (13.7)(13.7)— (13.7)
Cash distribution to noncontrolling interests— — — — — — — — (6.7)(6.7)
At June 30, 202399,160,699 $1.0 15,404,482 $(184.0)$727.9 $(12.4)$76.5 $609.0 $33.4 $642.4 
(See accompanying notes to the consolidated financial statements)
6

SunCoke Energy, Inc.
Notes to the Consolidated Financial Statements
1. General
Description of Business
SunCoke Energy, Inc. (“SunCoke Energy,” “SunCoke,” “Company,” “we,” “our” and “us”) is the largest independent producer of high-quality coke in the Americas, as measured by tons of coke produced each year, and has more than 60 years of coke production experience. Coke is produced by heating metallurgical coal in a refractory oven, which releases certain volatile components from the coal, thus transforming the coal into coke. Our coke is primarily used as a principal raw material in the blast furnace steelmaking process as well as in the foundry production of casted iron, and the majority of our sales are derived from blast furnace coke sales made under long-term, take-or-pay agreements. We also sell coke produced utilizing capacity in excess of that reserved for our long-term, take-or-pay agreements to customers in both the export and North American domestic coke markets seeking high-quality product for their blast furnaces. We have designed, developed and built, and we currently own and operate, five cokemaking facilities in the United States (“U.S.”) with collective nameplate capacity to produce approximately 4.2 million tons of blast furnace coke per year. Additionally, we designed and currently operate one cokemaking facility in Brazil under licensing and operating agreements on behalf of ArcelorMittal Brasil S.A. (“ArcelorMittal Brazil”), which has approximately 1.7 million tons of annual cokemaking capacity. Our cokemaking ovens utilize efficient, modern heat recovery technology designed to combust the coal’s volatile components liberated during the cokemaking process and use the resulting heat to create steam or electricity for sale.
We also own and operate a logistics business that provides export and domestic material handling and/or mixing services to steel, coke (including some of our domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers. Our logistics terminals, which are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports, have the collective capacity to mix and/or transload more than 40 million tons of coal and other aggregates annually and has storage capacity of approximately 3 million tons.
Basis of Presentation
The accompanying unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim reporting. Certain information and disclosures normally included in financial statements have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In management’s opinion, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. The results of operations for the period ended June 30, 2024 are not necessarily indicative of the operating results expected for the entire year. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.
2. Inventories
The components of inventories were as follows:
June 30, 2024December 31, 2023
 
(Dollars in millions)
Coal$131.4 $107.7 
Coke17.0 17.4 
Materials, supplies and other59.9 57.5 
Total inventories$208.3 $182.6 
7

3. Intangible Assets
Intangible assets, net, include Goodwill allocated to our Domestic Coke segment of $3.4 million at both June 30, 2024 and December 31, 2023, and other intangibles detailed in the table below, excluding fully amortized intangible assets.
June 30, 2024December 31, 2023
Weighted - Average Remaining Amortization YearsGross Carrying AmountAccumulated AmortizationNetGross Carrying AmountAccumulated AmortizationNet
(Dollars in millions)
Customer relationships0$6.7 $6.5 $0.2 $6.7 $6.2 $0.5 
Permits1831.7 6.6 25.1 31.7 5.9 25.8 
Other261.6 0.2 1.4 1.6 0.2 1.4 
Total$40.0 $13.3 $26.7 $40.0 $12.3 $27.7 
Total amortization expense for intangible assets subject to amortization was $0.5 million and $0.6 million for the three months ended June 30, 2024 and 2023, respectively, and $1.0 million and $1.1 million for the six months ended June 30, 2024 and 2023, respectively.
4. Income Taxes
At the end of each interim period, we make our best estimate of the annual effective tax rate and the impact of discrete items, if any, and adjust the rate as necessary.
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in millions)
Income before income tax expense$28.9 $30.3 $57.1 $54.8 
Income tax expense5.6 8.3 12.7 15.1 
Effective tax rate19.4 %27.4 %22.2 %27.6 %
Income taxes recorded for the three and six months ended June 30, 2024 reflect discrete items recorded. During the three months ended June 30, 2024, the Company released a valuation allowance established on the deferred tax assets attributable to existing state net operating losses (“NOLs”) carryforwards, resulting in a deferred tax benefit of $2.2 million. The release of the aforementioned valuation allowance was a result of tax planning conducted by the Company, as the state NOLs carried forward from prior years are now expected to be utilized. Income tax expense also reflects the revaluation of certain deferred tax liabilities due to changes in apportioned state tax rates, which resulted in income tax expense of $1.9 million for the three months ended June 30, 2024. Income taxes recorded during the three and six months ended June 30, 2023 included immaterial discrete items.
Before the impact of discrete items described above, the Company's effective tax rate was 20.5 percent and 22.7 percent for the three and six months ended June 30, 2024, respectively, and 27.4 percent and 27.6 percent for the three and six months ended June 30, 2023, respectively. The difference between the Company's effective tax rates and federal statutory rate of 21.0 percent during all periods presented reflect the impact of state taxes, earnings attributable to its noncontrolling ownership interests in a partnership and compensation deduction limitations under Section 162(m) of the Internal Revenue Code. The three and six months ended June 30, 2024 also reflects the impact of a valuation allowance established for a portion of foreign tax credits projected for the current period as a result of tax legislation enacted in Brazil during the third quarter of 2023 as well as a valuation allowance released for a portion of state NOLs’ utilization projected for the current period as a result of tax planning. The three and six months ended June 30, 2023 reflects the impact of foreign taxes as a result of regulations impacting foreign tax credit utilization published by the U.S. Treasury in 2022.
8

5. Accrued Liabilities
Accrued liabilities consisted of the following:
June 30, 2024December 31, 2023
 
(Dollars in millions)
Accrued benefits$18.4 $26.8 
Current portion of postretirement benefit obligation2.3 2.3 
Other taxes payable12.6 10.4 
Current portion of black lung liability5.0 5.0 
Lease liabilities2.5 2.5 
Other5.7 4.7 
Total accrued liabilities$46.5 $51.7 
6. Debt
Total debt consisted of the following:
June 30, 2024December 31, 2023
 
(Dollars in millions)
4.875 percent senior notes, due 2029 (“2029 Senior Notes”)
$500.0 $500.0 
$350.0 revolving credit facility, due 2026 (“Revolving Facility”)
  
Total borrowings$500.0 $500.0 
Debt issuance costs(8.7)(9.7)
Total debt$491.3 $490.3 
Revolving Facility
As of June 30, 2024, the Revolving Facility had no outstanding balance, leaving $350.0 million available. Additionally, the Company has certain letters of credit totaling $22.2 million, which do not reduce the Revolving Facility's available balance.
Covenants
Under the terms of the Revolving Facility, the Company is subject to a maximum consolidated net leverage ratio of 4.50:1.00 and a minimum consolidated interest coverage ratio of 2.50:1.00. The Company's debt agreements contain other covenants and events of default that are customary for similar agreements and may limit our ability to take various actions including our ability to pay a dividend or repurchase our stock.
If we fail to perform our obligations under these and other covenants, the lenders' credit commitment could be terminated and any outstanding borrowings, together with accrued interest, under the Revolving Facility could be declared immediately due and payable. The Company has a cross default provision that applies to our indebtedness having a principal amount in excess of $35.0 million.
As of June 30, 2024, the Company was in compliance with all applicable debt covenants. We do not anticipate violation of these covenants nor do we anticipate that any of these covenants will restrict our operations or our ability to obtain additional financing.
7. Commitments and Contingent Liabilities
Legal Matters
The Company is a party to certain pending and threatened claims, including matters related to commercial disputes, employment claims, personal injury claims, common law tort claims, and environmental claims. Although the ultimate outcome of these claims cannot be ascertained at this time, it is reasonably possible that some portion of these claims could be resolved unfavorably to the Company. Management of the Company believes that any liability which may arise from these claims would likely not have a material adverse impact on our consolidated financial statements. SunCoke's threshold for disclosing material environmental legal proceedings involving a government authority where potential monetary sanctions are involved is $1 million.
9

Black Lung Benefit Liabilities
The Company has obligations related to coal workers’ pneumoconiosis, or black lung, to provide benefits to certain of its former coal miners and their dependents. Such benefits are provided for under Title IV of the Federal Coal Mine and Safety Act of 1969 and subsequent amendments, as well as for black lung benefits provided in the states of Virginia, Kentucky and West Virginia pursuant to workers’ compensation legislation. The Patient Protection and Affordable Care Act, which was implemented in 2010 and amended previous legislation related to coal workers’ black lung obligations, provides for the automatic extension of awarded lifetime benefits to surviving spouses and changes the legal criteria used to assess and award claims.
We adjust our liability each year based upon actuarial calculations of our expected future payments for these benefits. Our independent actuarial consultants calculate the present value of the estimated black lung liability annually in the fourth quarter, unless there are changes in facts and circumstances that could materially alter the amount of the liability, based on actuarial models utilizing our population of former coal miners, historical payout patterns of both the Company and the industry, expected claim filing patterns, expected claimant success rates, actuarial mortality rates, medical costs, death benefits, dependents, discount rates and the current federally mandated payout rates. The estimated liability may be impacted by future changes in the statutory mechanisms, modifications by court decisions and changes in filing patterns by claimants and their advisors, the impact of which cannot be estimated. Refer to Note 12 in our Annual Report on Form 10-K for the year ended December 31, 2023 for further detail on the valuation of our black lung benefit liability.
On February 1, 2013, SunCoke obtained commercial insurance for black lung claims in excess of a deductible for employees with a last date of employment after that date. Also during 2013, we were reauthorized to continue to self-insure black lung liabilities incurred prior to February 1, 2013 by the U.S. Department of Labor's Division of Coal Mine Workers' Compensation (“DCMWC”) in exchange for $8.4 million of collateral. In July 2019, the DCMWC required that SunCoke, along with a number of other companies, file an application and supporting documentation for reauthorization to self-insure any legacy black lung obligations incurred prior to February 1, 2013. The Company provided the requested information in the fourth quarter of 2019. The DCMWC subsequently notified the Company in a letter dated February 21, 2020 that the Company was reauthorized to self-insure certain of its black lung obligations; however, the reauthorization is contingent upon the Company providing collateral of $40.4 million to secure certain of its black lung obligations. This proposed collateral requirement is a substantial increase from the $8.4 million in collateral that the Company currently provides to secure these self-insured black lung obligations. The reauthorization process provided the Company with the right to appeal the security determination. SunCoke exercised its right to appeal the DCMWC’s security determination and provided additional information supporting the Company’s position in May 2020 and February 2021. If the Company’s appeal is unsuccessful, the Company may be required to provide additional collateral to receive the self-insurance reauthorization from the DCMWC, which could potentially reduce the Company’s liquidity. Additionally, on January 19, 2023, the Department of Labor issued a new proposed rule that would require self-insured companies to post collateral in the amount of 120 percent of the company's total expected lifetime black lung obligations as determined by the DCMWC. While this new proposed rule is not effective, if finalized, it could potentially reduce the Company's liquidity. We submitted comments on this proposed rule and will continue to monitor any impact to the Company.
8. Share-Based Compensation
Equity Classified Awards
During the six months ended June 30, 2024, the Company granted share-based compensation to eligible participants under the SunCoke Energy, Inc. Omnibus Long-Term Incentive Plan (the “Omnibus Plan”). All awards vest immediately upon a qualifying termination of employment, as defined by the Omnibus Plan, following a change in control.
Restricted Stock Units Settled in Shares
During the six months ended June 30, 2024, the Company issued 268,565 restricted stock units (“RSU”) to certain employees and members of the Board of Directors, to be settled in shares of the Company’s common stock. The weighted average grant date fair value was $10.86 per unit, and was based on the closing price of our common stock on the date of grant. RSUs granted to employees vest and become issuable in three annual installments beginning one year from the date of grant. The service period for certain retiree eligible participants is accelerated. RSUs granted to the Company's Board of Directors vest upon grant, but are paid out upon termination of board service.
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Performance Share Units
Performance share units (“PSU”) were granted to certain employees to be settled in shares of the Company's common stock during the six months ended June 30, 2024, for which the service period will end on December 31, 2026, and will vest and become issuable during the first quarter of 2027. The service period for certain retiree eligible participants is accelerated. The Company granted the following PSUs:
SharesWeighted Average Grant Date Fair Value per Unit
PSUs(1)(2)
162,510 $11.51 
(1)Performance measures for the PSU awards are split 50/50 between the Company's three-year cumulative Adjusted EBITDA (as defined in Note 12 to the consolidated financial statements with the exception of the corporate/other expenses adjustment) and the Company's three-year average pre-tax return on capital for its coke and logistics businesses and unallocated corporate expenses.
(2)The number of PSUs ultimately awarded will be determined by the above performance measures versus targets and the Company's three-year total shareholder return (“TSR”) as compared to the TSR of the companies making up the Nasdaq Iron & Steel Index (“TSR Modifier”). The TSR Modifier can impact the payout between 80 percent and 120 percent of the Company's final performance measure results.
Each PSU award may vest between 25 percent and 200 percent of the original units granted. The fair value of the PSUs granted during the six months ended June 30, 2024 is based on the closing price of our common stock on the date of grant as well as a Monte Carlo simulation for the valuation of the TSR Modifier.
Liability Classified Awards
Restricted Stock Units Settled in Cash
During the six months ended June 30, 2024, the Company issued 165,384 restricted stock units to certain employees to be settled in cash (“Cash RSU”), which vest and become payable in three annual installments beginning one year from the grant date. The weighted average grant date fair value of the Cash RSUs granted during the six months ended June 30, 2024 was $10.96 per unit, based on the closing price of our common stock on the date of grant.
The Cash RSUs liability is adjusted based on the closing price of our common stock at the end of each quarterly period and was $1.5 million at June 30, 2024 and $2.8 million at December 31, 2023.
Cash Incentive Awards
The Company also granted long-term cash compensation to eligible participants under the Omnibus Plan. All awards vest immediately upon a qualifying termination of employment, as defined by the Omnibus Plan, following a change in control. The cash incentive award liability is included in accrued liabilities and other deferred credits and liabilities on the Consolidated Balance Sheets.
The Company issued awards with an aggregate grant date fair value of approximately $2.6 million during the six months ended June 30, 2024, for which the service period will end on December 31, 2026 and will vest and become payable during the first quarter of 2027. The service period for certain retiree eligible participants is accelerated. The performance measures for these awards are split 50/50 between the Company's three-year cumulative Adjusted EBITDA and the Company's three-year average pre-tax return on capital for its coke and logistics businesses and unallocated corporate expenses.
The cash incentive award liability at June 30, 2024 was adjusted based on the Company's three-year cumulative Adjusted EBITDA and the Company's three-year adjusted average pre-tax return on capital for its coke and logistics businesses and unallocated corporate expenses. The cash incentive award liability was $6.0 million at June 30, 2024 and $8.1 million at December 31, 2023.

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Summary of Share-Based Compensation Expense
Below is a summary of the compensation expense, unrecognized compensation costs, and the period for which the unrecognized compensation cost is expected to be recognized over:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023June 30, 2024
Compensation Expense(1)
Unrecognized Compensation CostWeighted Average Remaining Recognition Period
(Dollars in millions)(Years)
Equity Awards:
RSUs$1.4 $1.1 $1.8 $1.4 $1.8 2.1
PSUs0.1 0.2 1.1 1.5 1.2 2.1
Total equity awards$1.5 $1.3 $2.9 $2.9 
Liability Awards:
Cash RSUs$0.3 $0.3 $0.8 $1.0 $2.1 1.7
Cash incentive award0.4 0.4 1.3 1.7 2.3 2.0
Total liability awards$0.7 $0.7 $2.1 $2.7 
(1)Compensation expense recognized by the Company is included in selling, general and administrative expenses on the Consolidated Statements of Income.
The Company issued $0.1 million and $0.3 million of share based compensation to the Company's Board of Directors during the six months ended June 30, 2024 and 2023, respectively.
9. Earnings per Share
Basic earnings per share (“EPS”) has been computed by dividing net income attributable to SunCoke Energy, Inc. by the weighted average number of shares outstanding during the period. Except where the result would be anti-dilutive, diluted EPS has been computed to give effect to share-based compensation awards using the treasury stock method.
The following table sets forth the reconciliation of the weighted-average number of common shares used to compute basic EPS to those used to compute diluted EPS:
 
Three Months Ended June 30,Six Months Ended June 30,
 
2024202320242023
 
(Shares in millions)
Weighted-average number of common shares outstanding-basic
85.1 84.7 85.0 84.6 
Add: Effect of dilutive share-based compensation awards
0.2 0.2 0.3 0.3 
Weighted-average number of shares-diluted
85.3 84.9 85.3 84.9 
The following table shows equity awards that are excluded from the computation of diluted EPS as the shares would have been anti-dilutive:
  Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
(Shares in millions)
Stock options0.5 1.2 0.6 1.3 
Restricted stock units 0.1   
Performance share units0.1  0.1  
Total0.6 1.3 0.7 1.3 
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10. Fair Value Measurement
The Company measures certain financial and non-financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs.
The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows:
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.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Cash and Cash Equivalents
Certain assets and liabilities are measured at fair value on a recurring basis. The Company's cash and cash equivalents were measured at fair value at June 30, 2024 and December 31, 2023 based on quoted prices in active markets for identical assets. These inputs are classified as Level 1 within the valuation hierarchy.
Certain Financial Assets and Liabilities not Measured at Fair Value
At June 30, 2024 and December 31, 2023, the fair value of the Company’s total debt was estimated to be $451.9 million and $450.2 million, respectively, compared to a carrying amount of $500.0 million at both periods. The fair value was estimated by management based upon estimates of debt pricing provided by financial institutions, which are considered Level 2 inputs.
11. Revenue from Contracts with Customers
Cokemaking
Our blast furnace coke sales are largely made pursuant to long-term, take-or-pay coke sales agreements primarily with Cleveland-Cliffs Steel Holding Corporation and Cleveland-Cliffs Steel LLC, both subsidiaries of Cleveland Cliffs Inc. and collectively referred to as “Cliffs Steel”, United States Steel Corporation (“U.S. Steel”), and Algoma Steel Inc. The take-or-pay provisions in our agreements require our customers to purchase coke volumes as specified in the agreements or pay the contract price for any tonnage they do not purchase. The take-or-pay provisions of our agreements also require us to deliver minimum annual tonnage. As of June 30, 2024, our coke sales agreements have approximately 20.2 million tons of unsatisfied or partially unsatisfied performance obligations, which are expected to be delivered over a weighted average remaining contract term of approximately nine years.
While the revenues in our Domestic Coke segment are primarily tied to blast furnace coke sales made under long-term, take-or-pay agreements, we also produce and sell foundry coke out of our Jewell cokemaking facility. Foundry coke sales are generally made under annual agreements with our customers for an agreed upon price and do not contain take-or-pay volume commitments.
Non-contracted blast coke sales are produced utilizing capacity in excess of our long-term, take-or-pay agreements and foundry coke. These non-contracted blast coke sales are generally sold on a spot basis at the current market price into the global export and North American coke markets, and do not contain the same provisions as our long-term, take-or-pay agreements.
Revenues on all coke sales are recognized when performance obligations to our customers are satisfied in an amount that reflects the consideration that we expect to receive in exchange for the coke.
Logistics
In our logistics business, handling and/or mixing services are provided to steel, coke (including some of our domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers. Materials are transported in numerous ways, including rail, truck, barge or ship. We do not take possession of materials handled, but rather act as intermediaries between our customers and end users, deriving our revenues from services provided on a per ton basis. The handling and mixing services consist primarily of two performance obligations, unloading and loading of materials. Revenues
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are recognized when the customer receives the benefits of the services provided, in an amount that reflects the consideration that we will receive in exchange for those services.
Estimated take-or-pay revenue of approximately $20.3 million from all of our multi-year logistics contracts is expected to be recognized over the next three years for unsatisfied or partially unsatisfied performance obligations as of June 30, 2024.
Disaggregated Sales and Other Operating Revenue
The following table provides disaggregated sales and other operating revenue by product or service, excluding intersegment revenues:    
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
 (Dollars in millions)
Sales and other operating revenue:
Cokemaking$429.3 $492.6 $876.0 $937.2 
Energy11.5 11.8 23.4 24.0 
Logistics19.8 19.3 40.1 40.2 
Operating and licensing fees9.1 8.8 17.4 16.7 
Other1.2 1.9 2.4 4.1 
Sales and other operating revenue$470.9 $534.4 $959.3 $1,022.2 
The following tables provide disaggregated sales and other operating revenue by customer:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in millions)
Sales and other operating revenue:
Cliffs Steel$286.9 $335.9 $604.2 $662.1 
U.S. Steel70.1 78.4 142.1 151.2 
Other113.9 120.1 213.0 208.9 
Sales and other operating revenue$470.9 $534.4 $959.3 $1,022.2 
12. Business Segment Information
The Company reports its business through three reportable segments: Domestic Coke, Brazil Coke and Logistics. The Domestic Coke segment includes the Jewell, Indiana Harbor, Haverhill, Granite City and Middletown cokemaking facilities. Each of these facilities produces coke, and all facilities except Jewell recover waste heat, which is converted to steam or electricity.
The Brazil Coke segment includes the licensing and operating fees payable to us under long-term contracts with ArcelorMittal Brazil, under which we operate a cokemaking facility located in Vitória, Brazil through January 2028.
Logistics operations are comprised of Convent Marine Terminal (“CMT”), Kanawha River Terminal (“KRT”), and Lake Terminal, which provides services to our Indiana Harbor cokemaking facility. Handling and mixing results are presented in the Logistics segment.
Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, which is not a reportable segment, but which also includes activity from our legacy coal mining business.
Segment assets are those assets utilized within a specific segment.

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The following table includes Adjusted EBITDA reportable segments, as defined below, which is a measure of segment profit or loss reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance:
 
Three Months Ended June 30,Six Months Ended June 30,
 
2024202320242023
 (Dollars in millions)
Sales and other operating revenue:
Domestic Coke$441.6 $505.9 $901.1 $964.7 
Brazil Coke9.1 8.8 17.4 16.7 
Logistics20.2 19.7 40.8 40.8 
Logistics intersegment sales5.9 5.1 11.8 11.3 
Elimination of intersegment sales(5.9)(5.1)(11.8)(11.3)
Total sales and other operating revenues$470.9 $534.4 $959.3 $1,022.2 
Adjusted EBITDA reportable segments:
Domestic Coke$57.9 $68.2 $119.3 $128.6 
Brazil Coke2.5 2.3 4.9 4.7 
Logistics12.2 11.7 25.2 25.2 
Total Adjusted EBITDA reportable segments$72.6 $82.2 $149.4 $158.5 
Depreciation and amortization expense:
Domestic Coke$25.4 $33.2 $55.3 $65.0 
Brazil Coke  0.1 0.1 
Logistics3.1 3.2 6.3 6.5 
Total reportable segments$28.5 $36.4 $61.7 $71.6 
Corporate and Other0.2  0.3 0.1 
Total depreciation and amortization expense$28.7 $36.4 $62.0 $71.7 
Capital expenditures:
Domestic Coke$16.5 $27.3 $31.0 $48.2 
Brazil Coke 0.1  0.2 
Logistics1.0 0.4 1.6 1.9 
Total reportable segments$17.5 $27.8 $32.6 $50.3 
Corporate and Other  0.4 0.1 
Total capital expenditures$17.5 $27.8 $33.0 $50.4 
The following table sets forth the Company's segment assets:
June 30, 2024December 31, 2023
(Dollars in millions)
Segment assets:
Domestic Coke$1,395.4 $1,405.5 
Brazil Coke10.2 11.9 
Logistics156.4 158.4 
Total reportable segments$1,562.0 $1,575.8 
Corporate and Other95.5 84.6 
Total assets$1,657.5 $1,660.4 
The Company evaluates the performance of its segments based on Adjusted EBITDA reportable segments, which is defined as earnings before interest, taxes, depreciation and amortization, adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, transaction costs, and/or corporate/other expenses (“Adjusted EBITDA reportable segments”). Management believes Adjusted EBITDA reportable segments is an important measure in assessing operating performance. Additionally, other companies may calculate Adjusted EBITDA reportable segments differently than we do, limiting its usefulness as a comparative measure.
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Reconciliation of Adjusted EBITDA Reportable Segments to Net Income
Below is a reconciliation of Adjusted EBITDA reportable segments to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP:
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
 (Dollars in millions)
Net income$23.3 $22.0 $44.4 $39.7 
Add:
Depreciation and amortization expense28.7 36.4 62.0 71.7 
Interest expense, net5.8 7.2 12.1 14.4 
Income tax expense5.6 8.3 12.7 15.1 
Transaction costs(1)
0.1 0.1 0.2 0.2 
Corporate and Other9.1 8.2 18.0 17.4 
Adjusted EBITDA reportable segments$72.6 $82.2 $149.4 $158.5 
(1)Costs incurred as part of the granulated pig iron project with U.S. Steel.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (this “Quarterly Report on Form 10-Q”) contains certain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This discussion contains forward-looking statements about our business, operations and industry that involve risks and uncertainties, such as statements regarding our plans, objectives, expected future developments, expectations and intentions, and they involve known and unknown risks that are difficult to predict. As a result, our future results and financial condition may differ materially from those we currently anticipate as a result of the factors we describe in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report on Form 10-K”), and as updated in this Quarterly Report on Form 10-Q, and other quarterly and current reports, which are on file with the SEC and are available at the SEC's website (www.sec.gov). Additionally, please see our “Cautionary Statement Concerning Forward-Looking Statements” located elsewhere in this Quarterly Report on Form 10-Q.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is based on financial data derived from the financial statements prepared in accordance with the United States generally accepted accounting principles (GAAP) and certain other financial data that is prepared using a non-GAAP measure. For a reconciliation of the non-GAAP measure to its most comparable GAAP component, see Non-GAAP Financial Measures at the end of this Item 2.
Our MD&A is provided in addition to the accompanying consolidated financial statements and notes to assist readers in understanding our results of operations, financial condition and cash flow.
Overview
SunCoke Energy, Inc. (“SunCoke Energy,” “SunCoke,” “Company,” “we,” “our” and “us”) is the largest independent producer of high-quality coke in the Americas, as measured by tons of coke produced each year, and has more than 60 years of coke production experience. Coke is produced by heating metallurgical coal in a refractory oven, which releases certain volatile components from the coal, thus transforming the coal into coke. Our coke is primarily used as a principal raw material in the blast furnace steelmaking process as well as in the foundry production of casted iron, and the majority of our sales are derived from blast furnace coke sales made under long-term, take-or-pay agreements. We also sell coke produced utilizing capacity in excess of that reserved for our long-term, take-or-pay agreements to customers in both the export and North American domestic coke markets seeking high-quality product for their blast furnaces. We have designed, developed and built, and we currently own and operate, five cokemaking facilities in the United States (“U.S.”) with collective nameplate capacity to produce approximately 4.2 million tons of blast furnace coke per year. Additionally, we designed and currently operate one cokemaking facility in Brazil under licensing and operating agreements on behalf of ArcelorMittal Brasil S.A. (“ArcelorMittal Brazil”), which has approximately 1.7 million tons of annual cokemaking capacity. Our cokemaking ovens utilize efficient, modern heat recovery technology designed to combust the coal’s volatile components liberated during the cokemaking process and use the resulting heat to create steam or electricity for sale.
We also own and operate a logistics business that provides export and domestic material handling and/or mixing services to steel, coke (including some of our domestic cokemaking facilities), electric utility, coal producing and other manufacturing based customers. Our logistics terminals, which are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports, have the collective capacity to mix and/or transload more than 40 million tons of coal and other aggregates annually and has storage capacity of approximately 3 million tons.
Market Discussion
During the first half of 2024, our domestic coke plants continued to operate at full capacity. Our long-term, take-or-pay Domestic Coke sales agreements, which largely consume our capacity, are not impacted by the fluctuations of global coke prices. Non-contracted blast coke, which is produced utilizing capacity in excess of that reserved for long-term, take-or-pay Domestic Coke sales agreements, is sold in the global market and can be impacted by fluctuations of global coke prices.
Our Convent Marine Terminal (“CMT”) serves certain customers impacted by seaborne export market dynamics. Volumes through CMT are primarily impacted by fluctuations in both European energy needs and benchmark pricing for coal delivery into Europe, which can be impacted by weather conditions, natural gas prices, and global thermal coal supply. Our Kanawha River Terminal (“KRT”) serves two primary domestic markets, metallurgical coal trade and thermal coal trade. Metallurgical markets are primarily impacted by steel prices and blast furnace operating levels whereas thermal markets are impacted by natural gas prices and electricity demand.
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Second Quarter Key Financial Results
Our consolidated results of operations were as follows:
 Three Months Ended June 30,Increase (Decrease)Six Months Ended June 30,Increase (Decrease)
 2024202320242023
 (Dollars in millions)
Net income$23.3 $22.0 $1.3 $44.4 $39.7 $4.7 
Net cash provided by operating activities
$0.7 $68.7 $(68.0)$0.7 $98.9 $(98.2)
Adjusted EBITDA(1)
$63.5 $74.0 $(10.5)$131.4 $141.1 $(9.7)
(1)See the “Non-GAAP Financial Measures” section below for both the definition of Adjusted EBITDA and the reconciliation from GAAP to the non-GAAP measurement.
Operating results for the first half of 2024 primarily reflect unfavorable coal-to-coke yields on our long-term, take-or-pay agreements and lower blast coke sales volumes. Net income benefited primarily from lower depreciation expense, lower income tax expense and lower net interest expense. Operating cash flows during the current period primarily reflect an unfavorable year-over-year change in primary working capital, primarily due to timing of customer payments. See detailed analysis of the quarter's results throughout this MD&A.
Recent Developments and Items Impacting Comparability
There were no recent developments that occurred, or unusual events that significantly impacted comparability to the prior year periods during the three and six months ended June 30, 2024.
Results of Operations
The following table sets forth amounts from the Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023, respectively:
 
Three Months Ended June 30, Increase (Decrease)Six Months Ended
June 30,
Increase (Decrease)
 
2024202320242023
 
(Dollars in millions)
Revenues
Sales and other operating revenue$470.9 $534.4 $(63.5)$959.3 $1,022.2 $(62.9)
Costs and operating expenses
Cost of products sold and operating expenses
389.7 443.1 (53.4)791.9 845.1 (53.2)
Selling, general and administrative expenses17.8 17.4 0.4 36.2 36.2 — 
Depreciation and amortization expense28.7 36.4 (7.7)