SunCoke Energy, Inc. Reports Third Quarter 2012 Results

  SunCoke Energy, Inc. Reports Third Quarter 2012 Results

  *Net income attributable to shareholders increased 74 percent to $31.6
    million, or $0.45 per diluted share, in third quarter 2012
  *Adjusted EBITDA rose $27.6 million to $72.4 million in third quarter 2012,
    driven primarily by the contribution of our new Middletown, Ohio facility
  *Adjusted EBITDA per ton in our U.S. cokemaking business (inclusive of
    Jewell Coke and Other Domestic Coke segments) reached $61 per ton in third
    quarter 2012, an increase of more than $11per ton
  *Coal Mining Adjusted EBITDA improved slightly to $10.7 million on higher
    average coal sale prices and volumes, and the favorable impact of a
    contingent consideration adjustment

Business Wire

LISLE, Ill. -- October 24, 2012

SunCoke Energy, Inc. (NYSE: SXC) today reported third quarter 2012 net income
attributable to shareholders of $31.6 million, up from $18.2 million in third
quarter 2011.

“Our third quarter performance demonstrates the power of a consistent focus on
operational excellence,” said Fritz Henderson, Chairman and Chief Executive
Officer of SunCoke Energy, Inc. “Our entire U.S. cokemaking fleet continued to
deliver strong results, with our new Middletown facility fueling a significant
portion of the increase. Adjusted EBITDA increased 62 percent to $72.4 million
in the third quarter and U.S. Domestic Coke Adjusted EBITDA per ton at $61
exceeded our target.

Henderson continued, “Our coal mining segment finished the quarter up slightly
as a result of higher year-over-year sales prices and volumes and the
favorable impact of a contingent consideration adjustment. However, higher
production costs and reject rates offset most of this benefit. In light of the
continuing weak coal environment, we are taking more aggressive actions to
reduce costs and improve productivity in our coal mining business to position
ourselves for 2013.”

Henderson added, “With year end approaching, we have a clearer view into our
2012 expected results and estimate that full year 2012 Adjusted EBITDA will be
$255 million to $270million and 2012 capital expenditures will total about
$75 million.”

CONSOLIDATED RESULTS

                                                            
                                         Three months ended September 30,
(In millions, except per share data)     2012        2011      Increase
Total Revenues                            $  480.5    $  403.5  $  77.0
Operating Income                          $  52.7      $  30.0    $  22.7
Adjusted EBITDA^(1)                       $  72.4      $  44.8    $  27.6
Net Income Attributable to Shareholders   $  31.6      $  18.2    $  13.4
Net Income Per Share - Diluted           $  0.45     $  0.26   $  0.19

^(1) See definition of Adjusted EBITDA and reconciliation elsewhere in this
release.

Total revenues rose 19 percent to $480.5 million in third quarter 2012,
largely driven by sales at our new Middletown facility, which contributed
$76.7 million to revenue.

The climb in operating income and Adjusted EBITDA, which grew 76 percent and
62 percent, respectively, reflected the contribution of our Middletown
facility, lower corporate costs and continued solid performance across all our
cokemaking facilities.

The 74 percent increase in net income attributable to shareholders in third
quarter 2012 was led by the contribution of our Middletown facility and lower
corporate costs. This increase was partly offset by financing costs related to
our standalone corporate structure.

SEGMENT RESULTS

Jewell Coke

The Jewell Coke segment consists of our cokemaking operations in Vansant,
Virginia. Substantially all of the metallurgical coal used at our Jewell
cokemaking facility is supplied from our coal mining operations. Beginning in
first quarter 2012, the intersegment coal costs charged to the Jewell Coke
segment are reflective of the contract price Jewell Coke charges its customer.
Prior year periods have been adjusted to reflect this change.

                                                        
                                       Three months ended September 30,
                                                            Increase/
(In millions, except per ton amounts)  2012       2011     (Decrease)
Segment Revenues                        $  74.2     $ 71.0    $   3.2
Adjusted EBITDA^(1)                     $  13.6     $ 13.9    $   (0.3 )
Sales Volumes (in thousands of tons)       183        191         (8   )
Adjusted EBITDA per Ton^(1)            $  74.32   $ 72.77  $   1.55 

^(1) See definition of Adjusted EBITDA and Adjusted EBITDA per Ton and
reconciliation elsewhere in this release.

  *Revenues increased by $3.2 million in third quarter 2012 due to the
    pass-through of higher coal costs partly offset by lower coke sales
    volumes. Sales volumes were down due to the timing of shipments to our
    customer.
  *Adjusted EBITDA declined slightly in third quarter 2012 due to lower coke
    sales volumes.

Other Domestic Coke

Other Domestic Coke consists of cokemaking facilities and heat recovery
operations at our Indiana Harbor, Haverhill, Granite City and Middletown
plants. The Middletown cokemaking facility commenced operations in October
2011. On September 30, 2011, we increased our ownership interest in the
partnership that owns the Indiana Harbor cokemaking facility from 66 percent
to 85percent by acquiring the interest held by one of the unaffiliated
third-party partners.

                                                          
                                       Three months ended September 30,
(In millions, except per ton amounts)  2012        2011      Increase
Segment Revenues                        $  388.7    $  310.0  $  78.7
Adjusted EBITDA^(1)(2)                  $  54.9      $  34.3    $  20.6
Sales Volumes (in thousands of tons)       933          777        156
Adjusted EBITDA per Ton^(1)            $  58.84    $  44.14  $  14.70

^(1) See definitions of Adjusted EBITDA and Adjusted EBITDA per Ton and
reconciliations elsewhere in this release.

^(2) Excludes income (loss) attributable to noncontrolling interest in Indiana
Harbor.

  *Our Middletown facility contributed $76.7 million to segment revenues and
    $16.9million to segment Adjusted EBITDA in third quarter 2012.
  *Excluding Middletown, segment Adjusted EBITDA benefited from solid
    performance across all our facilities reflecting better coal-to-coke yield
    and operating expense recovery versus third quarter 2011, partly offset by
    lower energy sales. Our increased ownership interest in our Indiana Harbor
    facility also benefited Adjusted EBITDA by approximately $1.6 million by
    reducing income attributable to noncontrolling interest.

International Coke

International Coke consists of a cokemaking facility in Vitória, Brazil, which
we operate for a Brazilian affiliate of ArcelorMittal. International Coke
earns operating and technology licensing fees based on production, and
recognizes a dividend on its preferred stock investment, generally in the
fourth quarter, assuming certain minimum production levels are achieved at the
facility.

  *Segment Adjusted EBITDA declined from $1.7 million to $0.9 million
    primarily due to lower sales volumes.

Coal Mining

Coal Mining consists of our metallurgical coal mining activities conducted in
Virginia and West Virginia. A substantial portion of the metallurgical coal
produced by our coal mining operations is sold to our Jewell Coke segment for
conversion into metallurgical coke. Beginning in first quarter 2012,
intersegment coal revenues for sales to the Jewell Coke segment are reflective
of the contract price Jewell Coke charges its customer. Prior year periods
have been adjusted to reflect this change.

                                                              
                                             Three months ended September 30,
                                                                  Increase/
(In millions, except per ton amounts)        2012      2011      (Decrease)
Total Segment Revenues (including sales to    $ 65.1     $ 57.2     $  7.9
affiliates)
Segment Revenues (excluding sales to          $ 8.9      $ 12.7     $  (3.8  )
affiliates)
Adjusted EBITDA^(1)                           $ 10.7     $ 9.2      $  1.5
Coal Production (in thousands of tons)          349        340         9
Sales Volumes (in thousands of tons)^(2)        392        371         21
Sales Price per ton (excludes                 $ 165.17   $ 154.85   $  10.32
transportation costs)^(3)
Adjusted EBITDA per Ton^(1)                  $ 27.30   $ 24.80   $  2.50  

^(1) See definitions of Adjusted EBITDA and Adjusted EBITDA per Ton and
reconciliations elsewhere in this release.

^(2) Includes production from Company and contract-operated mines.

^(3) Includes sales to affiliates.

  *Coal Mining segment revenues benefited from higher average sale prices and
    higher internal sales volumes. The higher average sales price reflects a
    favorable shift in mix with mid-volatile coal representing a larger
    proportion of coal sold in third quarter 2012.
  *The increase in Adjusted EBITDA reflects higher sales of mid-volatile coal
    offset by increased production costs reflecting a change in mix of coal
    mined as mid-volatile coal, which generally costs more to mine,
    represented a larger portion of third quarter 2012 production.
    Additionally, the current period benefited by approximately $1.3 million
    due to a favorable fair value adjustment related to our Harold Keene Coal
    Co., Inc. contingent consideration arrangement.

Corporate and Other

Corporate expenses declined by $6.6 million to $7.7 million in third quarter
2012. The decline primarily reflects favorable comparison to third quarter
2011, which included $2.5 million of Middletown costs, $1.9 million in lower
charges from Sunoco and $1.7million of restructuring costs.

Financing (Expense)/Income

Net financing expense was $12.2 million for third quarter 2012 as compared
with financing expense of $3.3 million in third quarter 2011. The $8.9 million
change is primarily a result of two factors: $4.6million of capitalized
interest related to projects at our Middletown facility in third quarter 2011
and $3.5 million of higher interest expense in the current period versus the
same prior year period due to the timing of our 2011 debt issuance.

COMBINED CASH FLOWS AND FINANCIAL POSITION

Cash Flows

Net cash provided by operating activities rose $19.1 million to $77.8 million
in the nine months ended September 30, 2012 due to strong business results
driven by our new Middletown facility.

Capital expenditures were $40.6 million in the nine months ended September 30,
2012, a decrease of $143.6 million. As a comparison, in the nine months ended
September 30, 2011, capital expenditures of $184.2 million included
$145.4million related to the construction of our Middletown facility.

2012 OUTLOOK

The following summarizes the Company’s 2012 guidance:

  *Earnings per share (assuming a 22 percent tax rate) is expected to be
    between $1.30 and $1.40
  *Full year 2012 Adjusted EBITDA is projected to be between $255 million and
    $270 million
  *Capital expenditures and investments are anticipated to be approximately
    $75 million
  *Corporate costs are expected to be between $29 million and $32 million
  *Domestic coke production is expected to be in excess of 4.3million tons
  *Coal production is projected to be approximately 1.4 million tons
  *Free cash flow is expected to be in excess of $100million
  *The effective tax rate for the full year 2012 is expected to be between
    20percent and 24percent, and the cash tax rate is expected to be between
    10 percent and 15 percent

DEFINITIONS

  *Adjusted EBITDA represents earnings before interest, taxes, depreciation,
    depletion and amortization (“EBITDA”) adjusted for sales discounts and the
    deduction of income attributable to noncontrolling interests in our
    Indiana Harbor cokemaking operations. EBITDA reflects sales discounts
    included as a reduction in sales and other operating revenue. The sales
    discounts represent the sharing with customers of a portion of
    nonconventional fuel tax credits, which reduce our income tax expense.
    However, we believe our Adjusted EBITDA would be inappropriately penalized
    if these discounts were treated as a reduction of EBITDA since they
    represent sharing of a tax benefit that is not included in EBITDA.
    Accordingly, in computing Adjusted EBITDA, we have added back these sales
    discounts. Our Adjusted EBITDA also reflects the deduction of income
    attributable to noncontrolling interests in our Indiana Harbor cokemaking
    operations. 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. Adjusted EBITDA does not represent and should not be
    considered as an alternative to net income as determined by GAAP, and
    calculations thereof may not be comparable to those reported by other
    companies. We believe Adjusted EBITDA is an important measure of operating
    performance and 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. Adjusted EBITDA is a measure of
    operating performance that is not defined by GAAP and should not be
    considered a substitute for net (loss) income as determined in accordance
    with GAAP. See the tables (unaudited) at the end of this release for
    reconciliations of net income to Adjusted EBITDA.
  *Adjusted EBITDA per Ton represents Adjusted EBITDA divided by tons sold.
  *Free Cash Flow equals cash from operations less cash used in investing
    activities less cash distributions to noncontrolling interests. Management
    believes Free Cash Flow information enhances an investor’s understanding
    of a business’ ability to generate cash. Free Cash Flow does not represent
    and should not be considered an alternative to net income or cash flows
    from operating activities as determined under GAAP and may not be
    comparable to other similarly titled measures of other businesses.

RELATED COMMUNICATIONS

The Company will host an investor conference call today at 10:00 a.m. Eastern
Time (9:00 a.m. Central Time). This conference call will be webcast live and
archived for replay on the Investor Relations section of www.suncoke.com.
Participants can listen in by dialing 1-800-471-6718 (domestic) or
1-630-691-2735 (international) and referencing confirmation 33476082. Please
log in or dial in at least 10 minutes prior to the start time to ensure a
connection. A replay of the call will be available for seven days by calling
1-888-843-7419 (domestic) or 1-630-652-3042 (international) and referencing
confirmation 33476082#.

UPCOMING ITEMS

SunCoke plans to participate in the following investor conference:

  *Dahlman Rose Global Metals, Mining & Materials Conference on November 13,
    2012 in New York, NY

SUNCOKE ENERGY, INC.

SunCoke Energy, Inc. is the largest independent producer of metallurgical coke
in the Americas, with 50 years of experience supplying coke to the integrated
steel industry. Our advanced, heat recovery cokemaking process produces
high-quality coke for use in steelmaking, captures waste heat for derivative
energy resale and meets or exceeds environmental standards. Our cokemaking
facilities are located in Virginia, Indiana, Ohio, Illinois and Vitoria,
Brazil, and our coal mining operations, which have more than 114 million tons
of proven and probable reserves, are located in Virginia and West Virginia. To
learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com.

FORWARD LOOKING STATEMENTS

Some of the statements included in this press release constitute “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 on management’s beliefs
and assumptions and on information currently available. You should not put
undue reliance on any forward-looking statements. 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,” “project,” “intend,” “anticipate,” “estimate,” “predict,” “potential,”
“continue,” “may,” “will,” “should” or the negative of these terms or similar
expressions. Forward-looking statements involve risks, uncertainties and
assumptions.

Risks and uncertainties that could cause actual results to differ materially
from those expressed in forward-looking statements include economic, business,
competitive and/or regulatory factors affecting the Company’s business, as
well as uncertainties related to the outcomes of pending or future litigation,
legislation, or regulatory actions. Among such risks are: changes in levels of
production, production capacity, pricing and/or margins for metallurgical coal
and coke; variation in availability, quality and supply of metallurgical coal
used in the cokemaking process, including as a result of non-performance by
our suppliers; changes in the marketplace that may affect supply and demand
for our metallurgical coal and/or coke products, including increased exports
of coke from China related to reduced export duties and export quotas and
increasing competition from alternative steelmaking and cokemaking
technologies that have the potential to reduce or eliminate the use of
metallurgical coke; our dependence on, and relationships with, and other
conditions affecting, our customers; severe financial hardship or bankruptcy
of one of more of our major customers, or the occurrence of a customer default
and other events affecting our ability to collect payments from our customers;
volatility and cyclical downturns in the carbon steel industry and other
industries in which our customers operate; our ability to enter into new, or
renew existing, long-term agreements upon favorable terms for the supply of
metallurgical coke to domestic and/or foreign steel producers; our ability to
develop, design, permit, construct, start up or operate new cokemaking
facilities in the U.S.; our ability to successfully implement our
international growth strategy; our ability to consummate investments under
favorable terms, including with respect to existing cokemaking facilities,
which may utilize by-product technology, in the U.S. and Canada, and integrate
them into our existing businesses and have them perform at anticipated levels;
the timing and structure of the planned MLP may change; unanticipated
developments may delay or negatively impact the planned MLP; receipt of
regulatory approvals and compliance with contractual obligations required in
connection with the planned MLP; the impact of the planned MLP on our
relationships with our employees, customers and vendors and our credit rating
and cost of funds; changes in market conditions; future opportunities that our
Board of Directors may determine present greater potential value to
stockholders than the planned MLP; age of, and changes in the reliability,
efficiency and capacity of the various equipment and operating facilities used
in our coal mining and/or cokemaking operations, and in the operations of our
major customers, business partners and/or suppliers; changes in the expected
operating levels of our assets; our ability to meet minimum volume
requirements, coal-to-coke yield standards and coke quality requirements in
our coke sales agreements; changes in the level of capital expenditures or
operating expenses, including any changes in the level of environmental
capital, operating or remediation expenditures; our ability to service our
outstanding indebtedness; our ability to comply with the restrictions imposed
by our financing arrangements; nonperformance or force majeure by, or disputes
with or changes in contract terms with, major customers, suppliers, dealers,
distributors or other business partners; availability of skilled employees for
our coal mining and/or cokemaking operations, and other workplace factors;
effects of railroad, barge, truck and other transportation performance and
costs, including any transportation disruptions; effects of adverse events
relating to the operation of our facilities and to the transportation and
storage of hazardous materials (including equipment malfunction, explosions,
fires, spills, and the effects of severe weather conditions); our ability to
enter into joint ventures and other similar arrangements under favorable
terms; changes in the availability and cost of equity and debt financing;
impact on our liquidity and ability to raise capital as a result of changes in
the credit ratings assigned to our indebtedness; changes in credit terms
required by our suppliers; risks related to labor relations and workplace
safety; changes in, or new, statutes, regulations, governmental policies and
taxes, or their interpretations, including those relating to the environment
and global warming; the existence of hazardous substances or other
environmental contamination on property owned or used by us; the availability
of future permits authorizing the disposition of certain mining waste; claims
of our noncompliance with any statutory and regulatory requirements; changes
in the status of, or initiation of new litigation, arbitration, or other
proceedings to which we are a party or liability resulting from such
litigation, arbitration, or other proceedings; historical combined and
consolidated financial data may not be reliable indicator of future results;
effects resulting from our separation from Sunoco, Inc.; incremental costs as
a stand-alone public company; our substantial indebtedness; certain covenants
in our debt documents; our ability to secure new coal supply agreements or to
renew existing coal supply agreements; our ability to acquire or develop coal
reserves in an economically feasible manner; defects in title or the loss of
one or more mineral leasehold interests; disruptions in the quantities of coal
produced by our contract mine operators; our ability to obtain and renew
mining permits, and the availability and cost of surety bonds needed in our
coal mining operations; changes in product specifications for either the coal
or coke that we produce; changes in insurance markets impacting costs and the
level and types of coverage available, and the financial ability of our
insurers to meet their obligations; changes in accounting rules and/or tax
laws or their interpretations, including the method of accounting for
inventories, leases and/or pensions; changes in financial markets impacting
pension expense and funding requirements; the accuracy of our estimates of
reclamation and other mine closure obligations; and effects of geologic
conditions, weather, natural disasters and other inherent risks beyond our
control. Unpredictable or unknown factors not disclosed in this release also
could have material adverse effects on forward-looking statements.

In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, SunCoke Energy has included in its filings with
the Securities and Exchange Commission 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 made by SunCoke Energy. For more information
concerning these factors, see SunCoke Energy’s Securities and Exchange
Commission filings. All forward-looking statements included in this press
release are expressly qualified in their entirety by such cautionary
statements. SunCoke Energy does 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 press
release except as required by applicable law.

                                                 
SunCoke Energy, Inc.
Combined and Consolidated Statements of Income
(Unaudited)
                                                     
                                                     
                     For the Three Months            For the Nine Months
                     Ended September 30,             Ended September 30,
                     2012           2011            2012         2011
                     (Dollars and shares in millions, except per share
                     amounts)
Revenues
Sales and other      $  480.1        $  403.1        $ 1,421.4     $ 1,113.7
operating revenue
Other income, net      0.4           0.4          1.3         1.1     
Total revenues         480.5         403.5        1,422.7     1,114.8 
Costs and
operating expenses
Cost of products
sold and operating      388.9           332.8          1,174.6       933.3
expenses
Loss on firm
purchase                —               —              —             18.5
commitments
Selling, general
and administrative      20.0            26.0           61.2          64.8
expenses
Depreciation,
depletion and          18.9          14.7         57.5        42.4    
amortization
Total costs and        427.8         373.5        1,293.3     1,059.0 
operating expenses
Operating income       52.7          30.0         129.4       55.8    
Interest                —               1.1            —             12.5
income—affiliate
Interest income         0.1             0.2            0.4           0.3
Interest                —               (0.4   )       —             (3.6    )
cost—affiliate
Interest cost           (12.3  )        (8.8   )       (36.4   )     (8.8    )
Capitalized            —             4.6          —           5.3     
interest
Total financing
(expense) income,      (12.2  )       (3.3   )      (36.0   )    5.7     
net
Income before           40.5            26.7           93.4          61.5
income tax expense
Income tax expense     7.6           5.1          19.9        10.1    
Net income              32.9            21.6           73.5          51.4
Less: Net income
(loss)
attributable to        1.3           3.4          2.3         (1.2    )
noncontrolling
interests
Net income
attributable to
SunCoke Energy,      $  31.6        $  18.2        $ 71.2       $ 52.6    
Inc. / net parent
investment
Earnings
attributable to
SunCoke Energy,
Inc. / net parent
investment per
common share:
Basic                $  0.45         $  0.26         $ 1.02        $ 0.75
Diluted              $  0.45         $  0.26         $ 1.01        $ 0.75
Weighted average
common shares
outstanding:
Basic                   70.0            70.0           70.0          70.0
Diluted                 70.3            70.0           70.3          70.0

                                                      
SunCoke Energy, Inc.
Consolidated Balance Sheets
                                                            
                                                            
                               September 30,                December 31,
                               2012                         2011
                               (Unaudited)
                               (Dollars in millions, except per share amounts)
Assets
Cash and cash equivalents      $      157.8                 $    127.5
Accounts receivable                   91.1                       66.2
Inventories                           189.2                      219.7
Deferred income taxes                0.8                      0.6       
Total current assets                 438.9                    414.0     
Investment in Brazilian               41.0                       41.0
cokemaking operations
Properties, plants and                1,380.4                    1,391.8
equipment, net
Lease and mineral rights,             52.6                       53.2
net
Goodwill                              9.4                        9.4
Deferred charges and other           38.1                     32.4      
assets
Total assets                   $      1,960.4              $    1,941.8   
Liabilities and Equity
Accounts payable               $      121.0                 $    181.9
Current portion of long-term          3.3                        3.3
debt
Accrued liabilities                   87.7                       80.4
Interest payable                     8.1                      15.9      
Total current liabilities            220.1                    281.5     
Long-term debt                        720.8                      723.1
Accrual for black lung                33.5                       33.5
benefits
Retirement benefit                    47.3                       50.6
liabilities
Deferred income taxes                 359.2                      261.1
Asset retirement obligations          14.2                       12.5
Other deferred credits and            21.7                       19.6
liabilities
Commitments and contingent                                 
liabilities
Total liabilities                    1,416.8                  1,381.9   
Equity
Preferred stock, $0.01 par
value. Authorized 50,000,000
shares; no issued and                 —                          —
outstanding shares at
September 30, 2012 and
December 31, 2011
Common stock, $0.01 par
value. Authorized
300,000,000 shares; issued
and outstanding 69,965,788            0.7                        0.7
and 70,012,702 shares at
September 30, 2012 and
December 31, 2011,
respectively
Treasury stock, 592,197
shares at September 30, 2012          (9.1        )              —
and no shares at December
31, 2011
Additional paid-in capital            433.0                      511.3
Accumulated other                     (8.9        )              (6.5      )
comprehensive loss
Retained earnings                    91.2                     20.0      
Total SunCoke Energy, Inc.            506.9                      525.5
stockholders’ equity
Noncontrolling interests             36.7                     34.4      
Total equity                         543.6                    559.9     
Total liabilities and equity   $      1,960.4              $    1,941.8   

                                                                 
SunCoke Energy, Inc.
Combined and Consolidated Statements of Cash Flows
(Unaudited)
                                                                    
                                                                    
                                                        For the Nine Months
                                                        Ended September 30,
                                                        2012        2011
                                                        (Dollars in millions)
Cash Flows from Operating Activities:
Net income                                              $ 73.5      $ 51.4
Adjustments to reconcile net income to net cash
provided by operating activities:
Loss on firm purchase commitments                         —           18.5
Depreciation, depletion and amortization                  57.5        42.4
Deferred income tax expense                               39.2        14.6
Payments (in excess of) less than expense for             (6.2  )     0.3
retirement plans
Share-based compensation expense                          5.1         —
Changes in working capital pertaining to operating
activities:
Accounts receivable                                       (24.9 )     (4.2   )
Inventories                                               27.0        (112.8 )
Accounts payable and accrued liabilities                  (50.7 )     51.1
Interest payable                                          (7.8  )     —
Income taxes payable                                      (23.6 )     0.6
Other                                                    (11.3 )    (3.2   )
Net cash provided by operating activities                77.8      58.7   
                                                                    
Cash Flows from Investing Activities:
Capital expenditures                                      (40.6 )     (184.2 )
Acquisition of business, net of cash received            —         (37.6  )
Net cash used in investing activities                    (40.6 )    (221.8 )
                                                                    
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt                  —           698.5
Debt issuance costs                                       —           (18.9  )
Repayment of long-term debt                               (2.5  )     (0.7   )
Proceeds from exercise of stock options                   4.7         —
Repurchase of common stock                                (9.1  )     —
Purchase of noncontrolling interest in Indiana Harbor     —           (34.0  )
facility
Decrease in advances from affiliate                       —           (412.8 )
Repayments of notes payable assumed in acquisition        —           (2.3   )
Increase in payable to affiliate                          —           5.3
Cash distributions to noncontrolling interests in        —         (1.2   )
cokemaking operations
Net cash (used in) provided by financing activities      (6.9  )    233.9  
Net increase in cash and cash equivalents                 30.3        70.8
Cash and cash equivalents at beginning of period         127.5     40.1   
Cash and cash equivalents at end of period              $ 157.8    $ 110.9  

                                                  
Segment Financial and Operating Data
The following tables set forth the sales and other operating revenues and
Adjusted EBITDA of our segments and operating data for the three and nine
months ended September 30, 2012 and 2011.
                                                     
                                                     
                        For the Three Months         For the Nine Months
                        Ended September 30,          Ended September 30,
                        2012           2011         2012         2011
                        (Dollars in millions)
Sales and other
operating revenues:
Jewell Coke             $  74.2         $ 71.0       $ 216.8       $ 197.1
Other Domestic Coke        388.7          310.0        1,139.8       857.3
International Coke         8.3            9.4          27.3          29.1
Coal Mining                8.9            12.7         37.5          30.2
Coal Mining                56.2           44.5         152.5         129.5
intersegment sales
Elimination of            (56.2   )     (44.5  )    (152.5  )    (129.5  )
intersegment sales
Total                   $  480.1       $ 403.1     $ 1,421.4    $ 1,113.7 
Adjusted EBITDA ^
(1):
Jewell Coke             $  13.6         $ 13.9       $ 41.1        $ 35.5
Other Domestic Coke        54.9           34.3         143.6         68.1
International Coke         0.9            1.7          1.7           3.5
Coal Mining                10.7           9.2          27.4          33.0
Corporate and Other       (7.7    )     (14.3  )    (20.1   )    (31.0   )
Total                   $  72.4        $ 44.8      $ 193.7      $ 109.1   
Coke Operating Data:
Capacity Utilization
(%)
Jewell Coke                98             98           98            98
Other Domestic Coke       104          105        104         100     
Total                      103            104          103           100
Coke production
volumes (thousands
of tons):
Jewell Coke                177            179          528           530
Other Domestic            920          785        2,732       2,217   
Coke^(2)
Total                      1,097          964          3,260         2,747
International Coke
production—operated        310            373          970           1,149
facility (thousands
of tons)
Coke sales volumes
(thousands of tons):
Jewell Coke                183            191          540           536
Other Domestic            933          777        2,728       2,231   
Coke^(3)
Total                     1,116        968        3,268       2,767   
Domestic Coke
Adjusted EBITDA per     $  61.38        $ 49.79      $ 56.52       $ 37.44
ton ^(4)
Coal Operating
Data^(5):
Coal sales volumes
(thousands of tons):
Internal use               322            272          862           865
Third parties             70           99         268         226     
Total                     392          371        1,130       1,091   
Coal production            349            340          1,125         1,015
(thousands of tons)
Purchased coal             10             22           33            97
(thousands of tons)
Coal sales price per
ton (excludes           $  165.17       $ 154.85     $ 167.71      $ 155.87
transportation
costs)^(6)
Coal cash production    $  142.56       $ 132.08     $ 143.12      $ 124.77
cost per ton^(7)
Purchased coal cost     $  106.12       $ 78.79      $ 88.09       $ 108.52
per ton^(8)
Total coal
production cost per     $  145.42       $ 133.73     $ 150.52      $ 130.22
ton^(9)

  (1)   See definition of Adjusted EBITDA and reconciliations elsewhere in
            this release.
            Includes Middletown production volumes of 154 thousand and 449
    (2)     thousand tons for the three and nine months ended September 30,
            2012, respectively.
            Excludes 15 thousand and 42 thousand tons of consigned coke sales
            in three and nine months ended September 30, 2012, respectively.
    (3)     Includes Middletown sales volumes of 156 thousand and 445 thousand
            tons for the three and nine months ended September 30, 2012,
            respectively.
    (4)     Reflects Jewell Coke plus Other Domestic Coke Adjusted EBITDA
            divided by U.S. coke sales volumes.
    (5)     Includes production from Company and contract-operated mines.
    (6)     Includes sales to affiliates.
    (7)     Mining and preparation costs, excluding depreciation, depletion
            and amortization, divided by coal production volume.
    (8)     Costs of purchased raw coal divided by purchased coal volume.
            Cost of mining and preparation costs, purchased raw coal costs,
            and depreciation, depletion and amortization divided by coal sales
    (9)     volume. Depreciation, depletion and amortization per ton were
            $10.94 and $8.96 for the three months ended September 30, 2012 and
            2011, respectively, and $11.19 and $8.45 for the nine months ended
            September 30, 2012 and 2011, respectively.

                                                      
SunCoke Energy, Inc.


Reconciliations of Adjusted EBITDA to Net Income
                                                         
                                                         
                                   Three Months Ended    Nine Months Ended
                                   September 30          September 30
                                   2012      2011       2012       2011
                                   (Dollars in millions)
Adjusted EBITDA                    $ 72.4     $ 44.8     $ 193.7     $ 109.1
Subtract: Depreciation,              18.9       14.7       57.5        42.4
depletion and amortization
Subtract (Add): Financing            12.2       3.3        36.0        (5.7  )
expense (income), net
Subtract: Income tax expense         7.6        5.1        19.9        10.1
Subtract: Sales discount
provided to customers due to         2.1        3.5        9.1         9.7
sharing of nonconventional fuel
tax credits
Subtract (Add) : Net loss
(income) attributable to            (1.3 )    (3.4 )    (2.3  )    1.2   
noncontrolling interest
Net income                         $ 32.9    $ 21.6    $ 73.5     $ 51.4  

                                                      
Reconciliation of Estimated 2012 Adjusted EBITDA to Net Income
                                                         
                                                         
                                           Low           High
(Dollars in millions)                     (Estimated)  (Estimated)
Estimated 2012 Net Income                  $94           $104
Depreciation, depletion and amortization   80            78
Total financing costs, net                 48            47
Income tax expense                        25           34
Estimated 2012 EBITDA                     $247         $263
Sales discounts                            11            12
Noncontrolling interests                  (3)          (5)
Estimated 2012 Adjusted EBITDA            $255         $270

                                                                
Reconciliation of 2012 Estimated Free Cash Flow
                                                                   
                                                                   
                                                                   2012
(Dollars in millions)                                           (Estimated)
Estimated Cash Provided by Operations              In excess of  $ 179
Estimated cash used in investing activities         Approx.        (75)
Estimated distribution to noncontrolling           Approx.       (4)
interests
Estimated Free Cash Flow                           In excess of  $ 100

Contact:

SunCoke Energy, Inc.
Investors:
Ryan Osterholm: 630-824-1907
or
Media:
Anna Rozenich: 630-824-1945