SunCoke Energy, Inc.

Thank you for joining us this morning to discuss Suncook Energy's third quarter 2023 results. With me today are Mike Rippey, Chief Executive Officer, Catherine Grates, 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 do not 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 Catherine, 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 SSE filings apply to the remarks we make today. These documents are available on our website as our reconciliations to non-GAAP financial measures discussed on today's call. With that, I'll now turn things over to Catherine.

Thanks, Shantanu. Good morning, and thank you for joining us on today's call. Earlier today, we announced SunCoke Energy's third quarter results. Before I turn it over to Mark to review the results in detail, I do want to share a few highlights from Q3. I'd like to start by thanking all of our SunCoke employees for their contributions to our third quarter results. Our domestic Coke plants operated well and continued to run at full capacity. When compared to last year's record third quarter results, we delivered lower contribution margins on non-contracted blast coke sales. Similarly, our logistics terminals continued to operate well, but saw lower volumes in pricing driven by weaker demand during the quarter. Through our collective efforts, we delivered consolidated adjusted EBITDA of $65.4 million. You know, we continue to successfully navigate through challenging market conditions with all of our non-contracted blast furnace Coke sales finalized for the remainder of the year. Earlier today, we announced a 10 cent per share dividend payable to shareholders on December 1st, 2023. From a balance sheet perspective, we ended the third quarter with a strong liquidity position of $475.9 million. Our gross leverage was approximately 1.91 times on a trailing 12-month adjusted EBITDA basis at the end of the quarter. Finally, we continue to execute against our 2023 objectives and remain well positioned to achieve the high end of our full year adjusted EBITDA guidance range of $250 to $265 million. With that, I'll turn it over to Mark to review our third quarter earnings in detail.

Mark? Thanks, Catherine. Turning to slide four, net income attributable Suncoke was $0.08 per share in the third quarter of 2023, down $0.41 versus the prior year period. Tax adjustments of $0.29 per share impacted EPS primarily due to tax law changes in the U.S. and Brazil in both 2022 and 2023. Excluding the impact of these adjustments, EPS was lowered by 12 cents per share quarter over quarter, primarily driven by lower contribution margins on non-contracted blast coke sales, partially offset by favorable cold coke yields. Adjusted EBITDA for the third quarter 2023 was $65.4 million, a decrease of $18.3 million from record results of third quarter 2022. The decrease in adjusted EBITDA was primarily driven by the lower contribution margins on non-contracted blast coke sales, partially offset by favorable cold coke yields, and lower transloading volumes and pricing in our logistics segment. Moving to slide five to discuss our domestic coke business performance in detail. Third quarter domestic Coke adjusted EBITDA was $64 million and Coke sales volumes were 1,016,000 tons. While the domestic Coke fleet has continued to run at full capacity, the decrease in adjusted EBITDA as compared to the record prior year period was primarily driven by lower contribution margin on our non-contracted blast Coke sales, partially offset by higher cold Coke yields. As Catherine mentioned, We continue to successfully navigate through difficult market conditions, and all our Coke sales are finalized for the rest of the year. Given the solid year-to-date performance of our domestic Coke segment, we are well positioned to deliver domestic Coke adjusted EBITDA on the high end of our guidance range of $234 to $242 million. Now moving on to slide six to discuss our logistics business. Our logistics business generated $8.4 million of adjusted EBITDA and handled combined throughput volumes of approximately 5 million tons during the third quarter of 2023, as compared to $12.9 million and 5.7 million tons respectively during the same prior year period. The decrease in adjusted EBITDA was primarily due to lower throughput volumes and a lower API2 price adjustment benefit at CMT. We continue to see volatility in thermal coal pricing as evidenced by CMT recognizing a limited API 2 price adjustment benefit during the third quarter. However, we expect the API 2 price adjustment to recover during the fourth quarter. Based on our year-to-date performance and anticipation of continued volatility in the market, we expect to deliver logistics full year adjusted EBITDA at the low end of our guidance range of $47 to $50 million. Now turning to slide seven to discuss our liquidity position for Q3. Suncoke ended the third quarter with a cash balance of approximately $126 million. Cash flow from operating activities generated approximately $94 million. For the quarter, Cash flow was favorably impacted by working capital changes, mainly the timing of receivables and payables. We expect this favorability to reverse in the fourth quarter. We paid $8.4 million in dividends at the rate of 10 cents per share this quarter and spent $34.1 million on CapEx. In total, we ended the quarter with a strong liquidity position of approximately $476 million. With that, I will turn it back over to Catherine.