SunCoke Energy, Inc.

Thanks, Preka. Good morning, and thank you for joining us this morning to discuss Suncook Energy's second quarter 2024 results. With me today are Catherine Gates, President and Chief Executive Officer, 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 SEC filings apply to the remarks we make today. These documents are available on our website as our reconciliations to non-GAAP financials 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. This morning, we announced Suncoke Energy's second quarter results. I want to share a few highlights before turning it over to Mark to discuss the results in detail. First, I would like to thank all of our employees for their contributions to our results. Our domestic coke plants continue to run at full capacity, and our logistics terminals again had strong results, handling 6 million tons during the quarter. Through our collective efforts, we delivered consolidated adjusted EBITDA of $63.5 million during the quarter. This strong performance in the first half of the year positions us well to achieve the high end of our full year 2024 adjusted EBITDA guidance range. We also announced today that the Board of Directors approved a 20% increase in our quarterly dividend from 10 cents to 12 cents per share. The increases affected the next quarterly payment date of September 3rd, 2024. This increase reflects the confidence of our board and management team in the strength and stability of our underlying core businesses. Our gross leverage remained below two times at approximately 1.93 times on a trailing 12 month adjusted EBITDA basis at the end of the quarter. We continue to focus on executing against our 2024 key initiatives and now expect to achieve the high end of our full year adjusted EBITDA guidance range of $240 to $255 million. With that, I'll turn it over to Mark to review our second quarter earnings in detail.

Mark? Thanks, Kathryn. Turning to slide four, net income attributable Suncoke was 25 cents per share in the second quarter of 2024 up one cent versus the prior year period the increase was driven by lower depreciation tax and net interest expense which was mostly offset by lower sales volumes and pricing in our domestic coke segment consolidated adjust deep at that for the second quarter of 2024 was 63.5 million dollars compared to record second quarter results in the prior year of 74 million dollars The decrease in adjusted EBITDA was primarily driven by lower blast coke sales volumes due to timing of spot sales in the prior year quarter, lower cold coke yields, and lower API2 price adjustment benefit at CMT, partially offset by higher transloading volumes at our domestic logistics terminals. Moving to slide five to discuss our domestic coke business performance in detail. Second quarter domestic coke adjusted EBITDA was $57.9 million and coke sales volumes were 973,000 tons. While the domestic coke fleet continued to run at full capacity, the decrease in adjusted EBITDA as compared to the record prior year period was primarily driven by lower blast coke sales volumes due to the timing of spot blast coke sales in the prior year period. lower cold coke yields on our long-term take or pay contracts also impacted second quarter results as we mentioned in our first quarter call all spot blast and foundry coke sales are finalized for the full year our full year domestic coke sales fund guidance remains approximately 4.1 million tons and we are reaffirming our full year domestic coke adjusted ebitda guidance of 238 to $245 million. Now moving on to slide six to discuss our logistics business. Our logistics business generated $12.2 million of adjusted EBITDA in the second quarter of 2024 compared to $11.7 million in the second quarter of 2023. The increase in adjusted EBITDA was primarily due to higher transloading volumes from our domestic terminals. partially offset by lower pricing at CMT due to limited API2 price adjustment benefit during the quarter. We expect some recovery of the API2 price adjustment benefit in the third quarter. Our terminals handled combined throughput volumes of approximately 6 million tons during the second quarter of 2024 as compared to 5.2 million tons during the same prior year period. Our domestic coke terminals handled 3.5 million tons in the second quarter of 2024, as compared to 2.8 million tons during the same prior year period, driven by new business. We are pleased with the strong results from our logistics segment in the first half of the year. We experienced very limited high water costs in the first and second quarters, which contributed to our favorable results. Additionally, our domestic terminals handled a total of 7.1 million tons, representing best first half performance in terms of volume in the past five years. For the second half of the year, while we expect solid operating performance from the logistics segment to continue, we anticipate a modest decline in total logistics handling tons as compared to the first half. Our strong first half logistics performance coupled with our outlook for the remainder of the year positions us well to exceed logistics full year 2024 adjusted EBITDA and volume guidance. Now turning to slide seven to discuss our liquidity position for Q2. Suncoke ended the second quarter with a cash balance of $81.9 million and a fully undrawn revolver of $350 million. net cash used in operating activities was $9.3 million and was negatively impacted by the timing of approximately $68 million of cash receipts at quarter end. We expect operating cash flow to normalize over the remainder of the year, and we are reaffirming our full year operating cash flow guidance of $185 million to $200 million. We paid $8.4 million in dividends at the rate of 10 cents per share this quarter and spent $17.5 million on CapEx. In total, we ended the quarter with a strong liquidity position of $431.9 million. With that, I will turn it back over to Catherine.