SunCoke Energy : Q4 2019 SunCoke Energy Inc Earnings Conference Call Presentation

SunCoke Energy, Inc.

Q4 & FY 2019 Earnings and 2020

Guidance

Conference Call

Forward‐Looking Statements	2

This slide presentation should be reviewed in conjunction with the Fourth Quarter 2019 earnings release of SunCoke Energy, Inc. (SunCoke) and conference call held on January 29, 2020 at 10:00 a.m. ET.

Except for statements of historical fact, information contained 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. Such forward‐looking statements are based upon information currently available, and express management's opinions, expectations, beliefs, plans, objectives, assumptions or projections with respect to SunCoke's anticipated future performance. These statements are not guarantees of future performance and undue reliance should not be placed on them. 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.

Forward‐looking statements often may be identified by the use of forward‐looking terminology such as the words "believe," "expect," "plan," "intend," "anticipate," "contemplate," "estimate," "predict," "guidance," "forecast," "potential," "continue," "may," "will," "could," "should," or the negative of these terms or similar expressions, and include, but are not limited to, statements regarding: possible or assumed future results of operations, expected benefits and anticipated timing of proposed transactions; expected levels of distributions to shareholders; future credit ratings; financial condition; plans and objectives of management for future operations and growth; effects of competition; and the effects of future legislation or regulations. Such statements are subject to a number of known and unknown risks, and uncertainties, many of which are beyond control, or are difficult to predict, and may cause actual results to differ materially from those implied or expressed by the forward‐looking statements. SunCoke has included in its filings with the Securities and Exchange Commission (SEC) 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. Such factors include, but are not limited to: changes in industry conditions; the ability to renew current customer, supplier and other material agreements; future liquidity, working capital and capital requirements; the ability to successfully implement business strategies and potential growth opportunities; the impact of indebtedness and financing plans, including sources and availability of third‐party financing; possible or assumed future results of operations; the outcome of pending and future litigation; potential operating performance improvements and the ability to achieve anticipated cost savings from strategic revenue and efficiency initiatives. For more information concerning these factors, see SunCoke's SEC filings. All forward‐looking statements included in this presentation are expressly qualified in their entirety by the cautionary statements contained in such SEC filings.

The forward‐looking statements in this presentation speak only as of the date hereof. Except as required by applicable law, SunCoke does not have any intention or obligation to revise or update publicly any forward‐looking statement (or associated cautionary language) made herein, whether as a result of new information, future events, or otherwise, after the date of this presentation.

This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Furthermore, the non‐GAAP financial measures presented herein may not be consistent with similar measures provided by other companies. 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. These data should be read in conjunction with SunCoke's periodic reports previously filed with the SEC.

Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals indicated and percentages may not precisely reflect the absolute figures for the same reason.

Industry and market data used in this presentation have been obtained from industry publications and sources as well as from research reports prepared for other purposes. SunCoke has not independently verified the data obtained from these sources and cannot assure investors of either the accuracy or completeness of such data.

2019 Year In Review
3

Delivered FY 2019 results within the revised guidance range despite continued

challenges at Logistics; Domestic Coke Adj. EBITDA above guidance range

FY 2019 Objective

Deliver FY 2019 Consolidated Adj.  EBITDA(1) of $240M - $250M

Generate $150M - $160M

Operating Cash Flow

Finalize the Simplification

Transaction

Complete last phase of oven rebuilds at Indiana Harbor

Pursue Balanced Capital Allocation	Ongoing

2019 Achievements

Delivered FY 2019 Consolidated Adj.

EBITDA of $247.9M

Generated $181.9M of FY 2019 OCF

Completed Simplification Transaction with overwhelmingly favorable support from SXC shareholders

Completed the final stage of Indiana Harbor oven rebuilds

Generated $24.4M of Adj. EBITDA

Extinguished ~$58.0M of debt; Gross leverage ratio at 3.23x (LTM basis) Paid $0.06/share quarterly dividend in Q4

Repurchased ~6.3 million shares or 7% of the float

Commentary

• Domestic Coke delivered strong performance; continued headwinds in logistics
• FY 2019 FCF of $75M
• Simplified corporate structure provides enhanced financial flexibility to pursue balanced approach to capital allocation
• Indiana Harbor expected to deliver ~$50M EBITDA on 1.2M tons in 2020
• Continue to target gross leverage ratio of 3.0x and will adjust debt levels accordingly
• Anticipate continuation of quarterly dividend
• Will remain disciplined and opportunistic on future share repurchases
• Continue to evaluate organic growth and

M&A opportunities

(1) See appendix for a definition and reconciliation of Adjusted EBITDA

Q4 & FY 2019 Financial Performance	4

$0.40

$0.03 ($0.02)

($1.98)

Q4 '18 Q4 '19 FY '18 FY '19

	Qtr4	Qtr4
($ in millions, except volumes)	2018	2019	FY 2018	FY 2019
Domestic Coke Sales Volumes	1,040	1,080	4,033	4,171
Logistics Volumes(2)	6,861	4,971	26,605	21,053
Coke Adj. EBITDA(3)	$56.0	$55.4	$226.3	$242.7
Logistics Adj. EBITDA (incl. CMT)	$18.3	$8.5	$72.6	$42.6
Corporate and Other Adj EBITDA	($8.4)	($13.1)	($35.7)	($37.4)
Adjusted EBITDA (Consolidated)	$65.9	$50.8	$263.2	$247.9
Operating Cash Flow	$15.2	$61.4	$185.8	$181.9

Q4 '19 EPS of ($0.02) down 5 cents as compared to Q4 '18

FY '19 EPS of ($1.98) includes impact of CMT long‐ lived asset and Logistics goodwill impairment related charges of ($2.27) per share

• Excluding the non‐cash charges, FY '19 Adjusted EPS(1) was $0.29 per share, down 11 cents mainly due to lower operating performance at Logistics segment

Q4 '19 Consol. Adj. EBITDA(1) of $50.8M

• Logistics segment down $9.8M, impacted by coal customer bankruptcy

FY '19 Consol. Adj. EBITDA(1) of $247.9M, down $15.3M as compared to FY' 18

• Coke operations up $16.4M, due to an increase in volumes at Indiana Harbor and decrease in the scope of outage work at Granite City

(1)	See appendix for a definition and reconciliation of Adjusted EBITDA and	• Logistics segment down $30.0M due to coal customer
	Adjusted EPS.	bankruptcy
(2)	Reflects inbound tons handled during the period
(3)	Coke Adjusted EBITDA includes Domestic Coke and Brazil Coke

Adjusted EBITDA	(1)	- Q4 '18 to Q4 '19
5

Q4 '19 performance impacted by coal export customer bankruptcy

($ in millions)

$65.9

($0.6)

($9.8)

($4.7)$50.8

• Impact of coal export customer bankruptcy
• Lower volumes at other logistics terminals

• Higher legacy costs and timing of employee related costs

Q4 2018	Domestic & Brazil Coke	Logistics	Corporate and Other	Q4 2019
Adj. EBITDA(1)				Adj. EBITDA(1)

(1) See appendix for a definition and reconciliation of Adjusted EBITDA

Adjusted EBITDA	(1)	- FY '18 to FY '19
		6

Strong domestic coke performance offset by coal export customer bankruptcy

($ in millions)

$263.2

$16.4

($30.0)

$247.9

($1.7)

• Higher volumes at IHO

• Shorter duration and scope of outage work at GCO

• Impact of coal export customer bankruptcy

FY 2018 Adj. EBITDA (1)

Domestic & Brazil Coke

Logistics

Corporate and Other

FY 2019 Adj. EBITDA(1)

(1) See appendix for a definition and reconciliation of Adjusted EBITDA

FY 2019 Capital Deployment	7

Strong cash flow generation deployed towards a well‐balanced capital allocation

strategy; Will continue to allocate capital strategically and opportunistically

	12/31/2018	12/31/2019	Revolver
Total Debt	$859M	$801M
Availability:
Gross Leverage(1)	3.26x	3.23x	$244.5M

($ in millions)

($110.1)

$181.9

($55.0)

Repurchased ~6.3M

shares in 2H 2019

$145.7	$34.8M - IHO	(3)
	oven rebuilds	($36.3)
		(4)

($5.1)

$46.6M SXCP Notes repurchase

($50M face value) (2)

($14.2) ($9.8)$97.1

Cash @ YE 2018 Net Cash Provided	CapEx	Debt Reduction Share Repurchases SXC Dividend	SXCP Distributions	Other	Cash @ YE 2019
by Ops. Activities

1. Gross leverage calculated using FY 2018 and FY 2019 Adjusted EBITDA respectively
2. Average bond repurchase price of $0.934 per $1.00 face value (8.95% YTW), resulting in ~$50M of face value SXCP notes repurchased during Q3 2019
3. Repurchased approximately 6.3 million shares at an average price of $5.76/share for approximately $36.3M
4. Paid a dividend of $0.06/share in Q4 2019

2020 GUIDANCE

Market: 2019 Recap and Future Outlook	9

Expect more of the same for domestic steel and coal export markets in the short‐term; Long‐term coke demand outlook looks constructive

Steel

Domestic steel markets struggled in 2019 despite tariffs and import duties

• "Price recession" caused HRC benchmark to dip to a low of ~$470/st before bouncing back to ~$600/st at the end of the year
• Demand and capacity utilization remained stable throughout the year but downward pressure on price impacted profitability
• ~0.5Mt active coke capacity idled, including foundry

Shift in long‐term outlook with CLF/AKS merger and US Steel "Best of Both" strategy

• Creates potential opportunity to produce pig iron in domestic blast furnaces for consumption in EAFs

Steel production and HRC price looks stable in the near term

• Some BF capacity closures announced but expect higher utilization at other BFs in the portfolio resulting in no significant net impact
• Announced capacity additions do not impact short‐term outlook

Coal/CMT

Coal export market expected to remain challenged with API2 forward curve flat for 2020

CMT repositioning to be a multi‐year undertaking

• Short‐term goal to increase volumes with various products/customers
• Long‐term alternatives include:
• • Focus on being a coal export terminal servicing ILB customers; ~10Mt ILB coal exported in a challenging year like 2019

• Reposition the terminal to handle a different product on a large scale

Source: S&P Platts

Projected 2020 Adjusted EBITDA Guidance	10

Expect 2020 Consolidated Adjusted EBITDA of $235M ‐ $245M mainly driven by higher volumes at Indiana Harbor offset by anticipated revised economics at CMT

($ in millions)

	$16‐$20
$247.9		$0 ‐($1)		$235 ‐ $245
			($23)‐($26)
			$0‐($2)
•	Indiana Harbor
	higher volumes
	(~$25M)	•	Anticipated impact
•	Lower coal‐to‐coke		of Foresight
	yield gains due to		renegotiation at
	lower coal price		CMT
	(($5M) - ($7M))	•	Lower volumes at
			KRT

FY 2019 Adj. EBITDA	Domestic Coke	Brazil Coke	Logistics	Corporate and Other	FY 2020 Adj. EBITDA
(Consolidated) (1)					Guidance (Consolidated)

(1) See appendix for a definition and reconciliation of Adjusted EBITDA

2020 Domestic Coke Business Outlook	11

Expect Strong Domestic Coke operations in 2020;

Domestic Coke Adj. EBITDA expected to be $243M ‐ $247M

Domestic Coke Performance	Anticipate a $16M to $20M
	increase in Domestic Coke Adj.
	EBITDA in 2020 mainly due to:
	• IHO expected to deliver ~$50M
	EBITDA at 1.2M coke production
	• Lower yield benefit due to reduction
	in coal pricing

Expect increased production of ~130K tons in 2020 primarily due to improved performance from rebuilt ovens at Indiana Harbor

(1)

(1) See appendix for a definition and reconciliation of Adjusted EBITDA

2020 Logistics Business Outlook	12

2020 Logistics guidance assumes revised economics with Foresight Energy at CMT;

Logistics Adjusted EBITDA guidance of $17M ‐ $20M

Logistics Performance

$72.6M

26,605$42.6M

$17M ‐ $20M

	21,053
14,389	19,100

14,114

~13,200

12,216

6,939~5,900

FY 2018

FY 2019

FY 2020E

2020 Plan assumes renegotiation of coal handling contract for coal export customer at CMT

• Anticipate CMT to handle ~3.6Mt coal for export and ~2.3Mt other products (e.g., aggregates, petcoke, etc.)

Active pursuit of new business opportunities at CMT

CMT Adj. EBITDA guidance of $7M ‐ $9M

KRT volumes driven by lower demand for thermal coal due to lower natural gas prices

Total Logistics Adj. EBITDA ($M)

Logistics (ex. CMT)

CMT

2020 Guidance Summary	13

Expect 2020 Adjusted EBITDA of $235M ‐ $245M;

2020 Capex of $70M ‐ $80M

Metric	2019	2020
Results	Guidance
Adjusted EBITDA Consolidated(1)	$247.9M	$235M	‐ $245M
Domestic Coke Production	4.17M tons	~ 4.3M tons
Dom. Coke Adj. EBITDA/ton	$54 / ton	$56 ‐ $57 / ton
Operating Cash Flow	$181.9M	$170M	‐ $185M
Total Capital Expenditures(2)	$110.1M	$70M	‐ $80M
Cash Taxes(3)	$7.1M	$4M	‐ $8M

1. See appendix for a definition and reconciliation of Adjusted EBITDA.
2. Capital expenditures exclude the impact of capitalized interest.
3. Included in Operating Cash Flow.

Adjusted EBITDA to FCF Walk

	2019	2020E
($ in millions except per share amounts)	Actuals	Low End	High End
Adjusted EBITDA	$248	$235	$245
Cash interest	($60)	($55)	($55)
Cash taxes (1)	($7)	($6)	($6)
Total capex (2)	($110)(3)	($75)	($75)
Adjustment for non‐cash items	$5	$5	$5
Free Cash Flow (FCF)	$75	$104	$114
SXC Shares Outstanding on 12/31/19	84.3	84.3	84.3
FCF/Share	$0.89	$1.23	$1.35

1. Based on 2019 results and mid‐point of 2020E SXC cash tax guidance
2. Based on 2019 results and mid‐point of 2020E guidance
3. Includes total capex; Excluding nonrecurring IHO refurb capital and opex as well as gas sharing project, 2019 Adjusted FCF would be $128M

Capital Allocation Priorities	14

Capital allocation tools deployed in 2019 demonstrate SXC's financial flexibility; Will remain disciplined, opportunistic and nimble to maximize stakeholders value long‐term

Capital Allocation Priorities

Establish Regular		Reduce Long‐Term Debt /
Dividend		Leverage

	
• Declared a dividend of	• Extinguished ~$58M of
$0.06/share in Q4	debt in 2019

• Ended 2019 with gross leverage ratio of 3.23x

• Continue to target gross leverage ratio of 3.0x and will adjust debt levels accordingly

Return Additional Capital

to Shareholders



• Share repurchase initiated in Aug 2019
• Repurchased ~6.8 million shares through January 17, 2020
• Will remain disciplined and opportunistic on future repurchases

Organic Growth Projects,

Capital Expenditures and

M&A



• Continue to pursue organic growth and M&A opportunities utilizing our disciplined approach

2020 Key Initiatives
15

Deliver Operations Excellence and Optimize Asset Base

• Continued strong operational and safety performance while optimizing asset utilization
• Successfully execute on capital plan

New Customer and Business Development at CMT

• Revitalize Convent Marine Terminal with new product and customer mix

Position Coke Business for Long‐Term Success

• Successfully navigate upcoming contract negotiations given existing market conditions

Pursue Balanced Capital Allocation

• Execute against our capital allocation priorities of reducing debt, returning capital to shareholders and exploring growth opportunities

Achieve 2020 Financial Objectives

• $235M - $245M Consol. Adj. EBITDA
• $170M - $185M Operating Cash Flow

APPENDIX

Domestic Coke Business Summary	17

Achieved FY' 19 Domestic Coke Adjusted EBITDA above guidance with strong

performance from Indiana Harbor

$52/ton

~$56‐$57/ton $54/ton

Q4 '19 Adjusted EBITDA of $52.1M and Adjusted EBITDA/ton of ~$48/ton

4,016 4,168 4,300

621 615 620

644 668 670

1,067 1,107 1,100

957 1,046 1,200

727 733 710

FY '18 FY '19 FY '20E

1,080K 4,033K 4,171K ~4,300K

Delivered FY '19 Domestic Coke Adj. EBITDA of $226.7M, above full‐year guidance of $217M ‐ $223M

• Increase of ~$19M vs FY '18

FY '19 Domestic Coke Adj. EBITDA/ton of ~$54/ton

• Up from $52/ton for FY '18

2019 IHO B Battery rebuild campaign completed

• 57 rebuilt ovens returned to service

(1) See appendix for a definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA per ton

Logistics Business Summary	18

Lower throughput volumes and coal customer bankruptcy at CMT impacted FY

2019 logistics results

$72.6M

26,605			$42.6M
					$19.6M
										21,053	19,100
								14,389
										14,114
																13,200
12,216
										6,939
																5,900
								FY '18		FY '19	FY '20E
					$5.2M $59.6M	$31.1M	$9.3M

Logistics segment contributed $8.5M to Q4' 19 and $42.6M to FY Adj. EBITDA

CMT contributed $5.2M to Q4 '19 and $31.1M to FY Adj. EBITDA

Logistics year over year lower by ~$30M mainly due to coal export customer bankruptcy

Depressed export pricing and lower demand impacted volumes throughout the year at CMT

KRT volumes lower in FY '19 vs FY '18 due to lower demand of thermal coal

(1) Adjusted EBITDA includes Logistics deferred revenue when it is recognized as GAAP revenue. See appendix for a definition and reconciliation of Adjusted EBITDA.

Definitions	19

Adjusted EBITDArepresents earnings before interest, loss (gain) on extinguishment of debt, taxes, depreciation and amortization ("EBITDA"), adjusted for impairments, loss on extinguishment of debt, changes to our contingent consideration liability related to our acquisition of CMT, loss on the disposal of our interest in VISA SunCoke, and/or transaction costs incurred as part of the Simplification Transaction. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under GAAP and may not be comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure in assessing operating performance. Adjusted EBITDA provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on GAAP measures and because it eliminates items that have less bearing on our operating performance. EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered a substitute for net income or any other measure of financial performance presented in accordance with GAAP.

EBITDArepresents earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA attributable to SXCrepresents Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling interests.

Adjusted EBITDA/Tonrepresents Adjusted EBITDA divided by tons sold/handled.

Adjusted net income attributable to SXCrepresents Net income (loss) attributable to SXC adjusted for impairments, changes to our contingent consideration liability as a result of impairments and related tax impacts. Adjusted earnings per shareis Adjusted net income attributable to SXC divided by the weighted average number of diluted common shares outstanding. Management believes Adjusted net income attributable to SXC and Adjusted earnings per share provide useful information to investors because it eliminates non‐cash impairment related charges that are not representative of our ongoing business. These measures are not calculated in accordance with GAAP, and should not be considered a substitute for net income or any other measure of financial performance presented in accordance with GAAP.

Reconciliation to Adjusted EBITDA, Adjusted net income

attributable to SXC and Adjusted EPS

20

($ in millions)	Q1 '18	Q2 '18	Q3 '18	Q4 '18	FY '18	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19
Net Income (loss)	$	13.0	$11.4	$ 17.1	$ 5.5	$	47.0	$	12.2	$	3.3	$(163.1)	$	(0.8)	$(148.4)
Depreciation and amortization expense		32.9	32.0	35.4	41.3		141.6		37.2		37.0		35.6		34.0	143.8
Loss (gain) on extinguishment of debt, net		0.3	‐	‐	‐		0.3		‐		‐		(1.5)		‐	(1.5)
Interest expense, net		15.8	15.7	15.4	14.5		61.4		14.8		15.1		15.7		14.7	60.3
Income tax expense (benefit)		2.0	2.2	(2.4)	2.8		4.6		3.0		3.2		(63.5)		2.6	(54.7)
Loss from equity method investment(1)		‐	5.4	‐	‐		5.4		‐		‐		‐		‐	‐
Contingent consideration adjustments(2)		‐	0.6	0.5	1.4		2.5		(0.4)		0.1		(3.9)		‐	(4.2)
Simplification Transaction costs(3)		‐	‐	‐	0.4		0.4		0.5		4.4		‐		0.3	5.2
Long‐lived asset and goodwill impairment		‐	‐	‐	‐		‐		‐		‐		247.4			247.4
Adjusted EBITDA	$	64.0	$67.3	$ 66.0	$ 65.9	$	263.2	$	67.3	$	63.1	$	66.7	$	50.8	$ 247.9
Adjusted EBITDA attributable to noncontrolling interest(4)		(19.0)	(21.6)	(21.0)	(20.4)		(82.0)		(18.9)		(18.6)		(1.6)		(1.6)	(40.7)
Adjusted EBITDA attributable to SXC	$	45.0	$45.7	$ 45.0	$ 45.5	$	181.2	$	48.4	$	44.5	$	65.1	$	49.2	$ 207.2

1. In June 2018, the Company recorded a loss in connection with the disposal of our interest in VISA SunCoke Limited.
2. In connection with the CMT acquisition, the Company entered into a contingent consideration arrangement that requires the Company to make future payments to the seller based on future volume over a specified threshold, price and contract renewals. Contingent consideration adjustments were primarily the result of modifications to the volume forecast. Customer events during the third quarter of 2019 drove a decrease in our forecast such that the contingent consideration liability was reduced to zero.
3. Costs expensed by the Partnership associated with the Simplification Transaction.
4. Reflects non‐controlling interests in Indiana Harbor and the portion of the Partnership owned by public unitholders prior to the closing of the Simplification Transaction

($ in millions except per share amounts)	FY '19
Net loss attributable to SunCoke Energy, Inc.	$	(152.3)
Long‐lived asset and goodwill impairment		247.4
Contingent consideration adjustments(5)		(3.9)
Related income tax benefit (6)		(69.1)
Adjusted Net income attributable to SunCoke Energy, Inc.	$	22.1
Weighted average number of common shares outstanding:
Diluted & Basic		76.8
Adjusted Earnings attr. to SXC per common share (EPS)	$	0.29

1. In connection with the CMT acquisition, the Company entered into a contingent consideration arrangement that requires the Company to make future payments to the seller based on future volume over a specified threshold, price and contract renewals. Contingent consideration adjustments were primarily the result of modifications to the volume forecast. Customer events during the third quarter of 2019 drove a decrease in our forecast such that the contingent consideration liability was reduced to zero.
2. Reflects the tax impacts of long‐lived asset and goodwill impairment and the contingent consideration adjustment.

Adjusted EBITDA and Adjusted EBITDA per ton	21

Reconciliation of Segment Adjusted EBITDA and Adjusted EBITDA per Ton

	Domestic			Corporate
($ in millions, except per ton data)	Coke	Brazil Coke	Logistics	and Other(1)	Consolidated
FY 2019
Adjusted EBITDA	$226.7	$16.0	$42.6	($37.4)	$247.9
Sales Volume (thousands of tons)	4,171	1,641	21,053
Adjusted EBITDA per Ton	$54.35	$9.75	$2.02
Q4 2019
Adjusted EBITDA	$52.1	$3.3	$8.5	($13.1)	$50.8
Sales Volume (thousands of tons)	1,080	371	4,971
Adjusted EBITDA per Ton	$48.24	$8.89	$1.71
Q3 2019
Adjusted EBITDA	$59.8	$3.9	$9.6	($6.6)	$66.7
Sales Volume (thousands of tons)	1,057	427	4,706
Adjusted EBITDA per Ton	$56.58	$9.13	$2.04
Q2 2019
Adjusted EBITDA	$56.3	$4.3	$11.8	($9.3)	$63.1
Sales Volume (thousands of tons)	1,030	424	5,592
Adjusted EBITDA per Ton	$54.66	$10.14	$2.11
Q1 2019
Adjusted EBITDA	$58.5	$4.5	$12.7	($8.4)	$67.3
Sales Volume (thousands of tons)	1,004	419	5,784
Adjusted EBITDA per Ton	$58.27	$10.74	$2.20
FY 2018
Adjusted EBITDA	$207.9	$18.4	$72.6	($35.7)	$263.2
Sales Volume (thousands of tons)	4,033	1,768	26,605
Adjusted EBITDA per Ton	$51.55	$10.41	$2.73
Q4 2018
Adjusted EBITDA	$51.6	$4.4	$18.3	($8.4)	$65.9
Sales Volume (thousands of tons)	1,040	442	6,861
Adjusted EBITDA per Ton	$49.62	$9.95	$2.67
Q3 2018
Adjusted EBITDA	$49.1	$4.5	$21.0	($8.6)	$66.0
Sales Volume (thousands of tons)	1,012	454	6,943
Adjusted EBITDA per Ton	$48.52	$9.91	$3.02
Q2 2018
Adjusted EBITDA	$52.9	$4.8	$19.7	($10.1)	$67.3
Sales Volume (thousands of tons)	1,007	431	6,980
Adjusted EBITDA per Ton	$52.53	$11.14	$2.82
Q1 2018
Adjusted EBITDA	$54.3	$4.7	$13.6	($8.6)	$64.0
Sales Volume (thousands of tons)	974	441	5,821
Adjusted EBITDA per Ton	$55.75	$10.66	$2.34

(1) Corporate and Other includes the results of our legacy coal mining business.

Balance Sheet & Debt Metrics	22

	($ in millions)					As of 12/31/2019 As of 12/31/2018
	Cash							$			97	$		146
	Available Revolver Capacity						245			254
	Total Liquidity					$			342	$		400
	Gross Debt (Long and Short‐term)	$			801	$		859
	Net Debt (Total Debt less Cash)	$			704	$		713
	2019 FY Adj. EBITDA			$			248	$		263
	Gross Debt / 2019 FY Adj. EBITDA			3.23x		3.26x
	Net Debt / 2019 FY Adj. EBITDA			2.84x		2.71x
As of
12/31/2019														Consolidated
($ in millions)		2020		2021		2022		2023		2024		2025		Total
Sr. Notes	$	‐	$	‐	$	‐	$	‐	$		‐	$	650.0	$	650.0
Sale Leaseback		2.9		4.3		‐		‐			‐		‐		7.2
Revolver		‐		‐		‐		‐		143.3		‐		143.3
Total	$	2.9	$	4.3	$	‐	$	‐	$	143.3	$	650.0	$	800.5

2020 Guidance Reconciliation	23

($ in millions)	Low	High
Net Income	$33	$43
Depreciation and amortization expense	132	128
Interest expense, net	58	58
Income tax expense	12	16
Adjusted EBITDA (Consolidated)	$235	$245
Adjusted EBITDA attributable to noncontrolling interest(1)	(7)	(7)
Adjusted EBITDA attributable to SXC	$228	$238

(1) Reflects non‐controlling interest in Indiana Harbor.

SXC FCF/Share	24

	2019	2020E
($ in millions except per share amounts)	Actuals	Low End	High End
Net Income	($148)	$33	$43
Long‐lived asset and goodwill impairment	247	‐	‐
Depreciation and amortization expense	144	132	128
Interest expense, net	60	58	58
Gain on extinguishment of debt, net	(2)	‐	‐
Income tax benefit	(55)	12	16
Contingent consideration adjustments (1)	(4)	‐	‐
Simplification Transaction costs(2)	5	‐	‐
Adjusted EBITDA	$248	$235	$245
Cash interest	(60)	(55)	(55)
Cash taxes (3)	(7)	(6)	(6)
Total capex (4)	(110)	(75)	(75)
Adjustment for non‐cash items	5	5	5
Free Cash Flow (FCF)	$75	$104	$114
SXC Shares Outstanding on 12/31/19	84.3	84.3	84.3
FCF/Share	$0.89	$1.23	$1.35

1. In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that requires the Partnership to make future payments to the seller based on future volume over a specified threshold, price and contract renewals. Adjustments to the fair value of the contingent consideration were primarily the result of modifications to the volume forecast. Customer events during the third quarter of 2019 reduced contingent consideration liability to zero.
2. Costs expensed by the Partnership associated with the Simplification Transaction.
3. Based on 2019 actuals and mid‐point of 2020E SXC cash tax guidance
4. Based on 2019 actuals and mid point of 2020E guidance