SunCoke Energy, Inc. Provides 2013 Outlook and Hosts Its First Investor Day

  SunCoke Energy, Inc. Provides 2013 Outlook and Hosts Its First Investor Day

  *Adjusted EBITDA for the full year 2013 is projected to be between $205
    million and $230million
  *2013 Domestic coke production is expected to be in excess of 4.3 million
    tons reflecting another year of full capacity utilization
  *2013 coal sales are expected to increase slightly to 1.7 million tons
    driven by increased volumes from our Revelation surface mining venture and
    purchased coal
  *Diluted Earnings Per Share (EPS) for 2013 is anticipated to be between
    $0.60 and $0.85

Business Wire

LISLE, Ill. -- December 11, 2012

SunCoke Energy, Inc. (NYSE: SXC) today will host its first Investor Day and
provide its 2013 business outlook.

“2012 was a year of executing on our commitments and building the base for the
future,” said Frederick “Fritz” Henderson, Chairman and Chief Executive
Officer of SunCoke Energy. “Our entire U.S. cokemaking fleet performed well,
with our new Middletown operations making a substantial contribution. We made
tangible progress in our growth strategy with the recently announced plan to
form a cokemaking joint venture with VISA Steel in India, the filing of a
permit application to potentially build another U.S. cokemaking facility and
pursuit of a planned initial public offering of a Master Limited Partnership.
We also generated significant free cash flow in 2012 and expect to close the
year with nearly $240million of cash.”

Henderson continued, “Looking ahead to 2013, we expect to continue to drive
operations excellence throughout our business. While we expect to maintain
positive momentum in our cokemaking business, we nevertheless expect lower
results in 2013, primarily due to a more than $40 per ton decrease in average
sale prices in our coal mining segment. As a result, we estimate full year
Adjusted EBITDA for 2013 will be between $205 million and $230 million, down
roughly $40-$50 million from 2012.”

To mitigate the impact of significantly lower coal sale prices in its coal
operations, the Company is accelerating the execution of an aggressive coal
action plan intended to improve efficiencies and lower costs at its Jewell
underground mining operations. In addition, the Company plans to increase
volumes sourced from its Revelation surface mining venture and purchases of
lower-priced third-party coal in 2013. Total 2013 coal sales are projected to
be 1.7million tons versus an estimated 1.5million in 2012.

On the coke side, the Company expects sustained strong operations across its
domestic fleet, with meaningful improvement at its Indiana Harbor facility and
the benefit of 12 months of full production at its Middletown facility.
Partially offsetting these improvements, lower purchased coal costs per ton
are expected to decrease the value of coal-to-coke yield benefits the coke
operations realized in 2012. The Company also expects to exceed 100% capacity
utilization again in 2013, with projected coke production in excess of 4.3
million tons. SunCoke expects its domestic coke business will continue to
achieve Adjusted EBITDA of $55 to $60 per ton in 2013.

Capital expenditures and investments are expected to increase from $70 million
in 2012 to approximately $200 million in 2013. This projected increase is
driven by approximately $75million for the refurbishment of the Indiana
Harbor facility and environmental remediation projects at the Haverhill and
Granite City facilities as well as an estimated $67 million investment in the
VISA SunCoke joint venture. Primarily as a result of the VISA SunCoke joint
venture investment, the Company anticipates a free cash flow deficit of
approximately $65 million for 2013. In addition, SunCoke expects both its 2013
effective tax rate and cash tax rate to be between 17% and 22%.

UPCOMING COMMUNICATIONS

Members of SunCoke’s senior management team will host the company’s first
Investor Day conference on December 11, 2012, at 2 pm EST. Presenters include:
Frederick “Fritz” Henderson, Chairman & Chief Executive Officer; Mike Thomson,
President & Chief Operating Officer; Dr. John Quanci, Vice President,
Technology; Mike Hardesty, Senior Vice President, Sales and Commercial
Operations; and Mark Newman, Senior Vice President & Chief Financial Officer.

Presentations will be webcast live and archived for replay for a limited time
in the Investor Relations section of the Company’s website at www.suncoke.com.

DEFINITIONS

  *Adjusted EBITDA represents earnings before interest, taxes, depreciation,
    depletion and amortization (“EBITDA”) adjusted for sales discounts, the
    deduction of income attributable to noncontrolling interests in our
    Indiana Harbor cokemaking operations, and the interest, taxes,
    depreciation, depletion and amortization attributable to equity earnings
    in our unconsolidated affiliates. 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. Our Adjusted EBITDA also
    includes EBITDA attributable to our unconsolidated affiliates. 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.
  *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.

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, including our investment in the Indian joint
venture; the possibility that our investment in the Indian joint venture does
not close for any reason; 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; our ability to protect our
intellectual property rights; compromises or failure of our information
technology systems; 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.
Reconciliations

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  

                                                              
Reconciliation of Estimated 2013 Adjusted EBITDA to Net Income
                                                   Low           High
(Dollars in millions)                             (Estimated)  (Estimated)
Estimated 2013 Net Income                          $   46        $   63
Depreciation, depletion and amortization               99            94
Total financing costs, net                             48            47
Income tax expense                                   10         18   
Estimated 2013 EBITDA                             $   202     $   222  
Sales discounts                                        6             7
Noncontrolling interests                               (3   )        (4   )
Adjustments to unconsolidated affiliate earnings     0          5    
Estimated 2013 Adjusted EBITDA                    $   205     $   230  

                                                                
Reconciliation of Estimated 2013 Free Cash Flow
                                                                   2013
(Dollars in millions)                                           (Estimated)
Estimated Cash Provided by Operations              In excess of  $  140   
Estimated cash used in investing activities         Approx.           (200  )
Estimated distribution to noncontrolling           Approx.         (5    )
interests
Estimated Free Cash Flow                           In excess of  $  (65   )

Contact:

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