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SunCoke Energy, Inc.
2/2/2023
Good morning. My name is Rob and I will be your conference operator today. At this time I would like to welcome everyone to the Suncoke Energy fourth quarter 2022 earnings and 2023 guidance conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question and answer session. If you would like to ask a question during this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. Shantanu Agrawal, Vice President, Finance and Treasurer, you may begin your conference.
Thanks, Rob. Good morning, and thank you for joining us this morning to discuss Suncoke Energy's fourth quarter and full year 2022 results, as well as 2023 guidance. With me today are Mike Rippey, Chief Executive Officer, Catherine Gates, President, and Mark Marinko, Senior Vice President and Chief Financial Officer. Following management's prepared remarks, we'll open the call for Q&A. This conference call is being webcast live on the investor relations section of our website, and a replay will be available later today. If we don't get to your questions on the call today, please feel free to reach out to our investor relations team. Before I turn things over to Mike, let me remind you that the various remarks we make on today's call regarding future expectations constitute forward-looking statements. The cautionary language regarding forward-looking statements in our SEC filing apply to the remarks we make today. These documents are available on our website as are reconciliations to non-GAAP financial measures discussed on today's call. With that, I'll now turn things over to Mike.
Thanks, Shantanu. Good morning, and thank you all for joining us today. Let me start by recognizing the appointment of Catherine Gates as president of Suncoke, effective January 1st of this year. Catherine joined Suncoke in early 2013 and has demonstrated excellent judgment and leadership in each of her various roles. Catherine's promotion to president recognizes her significant contributions at Suncoke, and I look forward to continuing to work together in her new role. Catherine will review our 2023 earnings guidance and key initiatives later in this presentation. As we look back on 2022, I want to thank all of our Suncoke employees for their contributions in achieving our 2022 objectives. The dedication of our team is evident through our excellent safety record, operational performance, and financial results. Slide three details the key objectives that we set out for 2022 and how we performed against these objectives. We exceeded the high end of our revised guidance range of $285 million. delivering 297.7 million of adjusted EBITDA in 2022, a record for our company. Additionally, we generated approximately 133 million of free cash flow, which was within our revised guidance range of 120 to 135 million. Our domestic Coke business operated at full capacity. which allowed us to take advantage of strong export Coke market conditions, as well as increase our foundry market participation. As announced in our previous earnings call, we're undertaking a capital project that will enable our Juul plant to produce 100% foundry Coke. This project, which is expected to be completed in the third quarter of this year, will allow Sun Coke to further grow our participation in the foundry market. Importantly, The Jewell facility will not lose the flexibility to alternate between blast and foundry coke production after this project is completed. We also made great progress on our capital allocation priorities in 2022. We deployed free cash flow to reduce our gross debt by approximately 83 million. Additionally, we returned almost 24 million to our shareholders, having increased our quarterly dividend from six cents to eight cents per share during 2022, which we anticipate will continue in 2023. Lastly, we entered into a non-binding letter of intent with U.S. Steel to manufacture granulated pig iron, and we will continue developing this project in the coming year. With that, I'll turn it over to Mark to review our fourth quarter and full year earnings in detail. Mark? Thanks, Mike.
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