SunCoke Energy, Inc. Reports Fourth Quarter and Full Year 2012 Results

  SunCoke Energy, Inc. Reports Fourth Quarter and Full Year 2012 Results

  *Net income more than tripled to $27.6 million in fourth quarter 2012, or
    $0.39 per diluted share. For full year, net income rose 63.0 percent to
    $98.8 million, or $1.40 per diluted share
  *Adjusted EBITDA approximately doubled for the fourth quarter and full year
    2012 reaching $69.7million and $265.7 million, respectively
  *Our new Middletown, Ohio facility delivered about half of the increase in
    Adjusted EBITDA for the quarter and full year 2012. Better results at
    Indiana Harbor also contributed significantly to the fourth quarter and
    full year increases
  *Full year 2012 coal production increased 8.2 percent to nearly 1.5 million
    tons versus full year 2011, while Adjusted EBITDA for the Coal Mining
    segment declined slightly to $33.4 million primarily due to higher cash
    production costs

Business Wire

LISLE, Ill. -- February 5, 2013

SunCoke Energy, Inc. (NYSE: SXC) today reported fourth quarter and full year
2012 results.

“We delivered on our financial targets in 2012, achieving Adjusted EBITDA of
$265.7 million, earnings per share of $1.40 and free cash flow of $120
million,” said Fritz Henderson, Chairman and Chief Executive Officer of
SunCoke Energy, Inc. “This performance was driven largely by three factors:
the near-flawless startup of our Middletown operations, better results at
Indiana Harbor and continued strong performance across our entire U.S.
cokemaking fleet. Our coal mining business did not meet our expectations in
2012, but still generated positive earnings and was essentially cash flow
neutral. In response to the current weak coal market environment, we continue
to take aggressive action to improve productivity and reduce costs to
strategically position this segment for the long term.”

Henderson also said, “In 2012, we built a strong foundation to grow our coke
business. We signed an agreement to form a cokemaking joint venture with VISA
Steel in India, filed a permit to build a potential new U.S. cokemaking
facility and, just a few weeks ago, we completed the initial public offering
for units in SunCoke Energy Partners, L.P., our new master limited
partnership. These efforts should help drive continued positive long term
momentum in our business.”

CONSOLIDATED RESULTS

                                                                
               Three months ended                 Year ended
                 December 31,                         December 31,
(In            2012      2011      Increase   2012        2011        Increase
millions)
Revenues         $ 491.4   $ 424.1   $  67.3      $ 1,914.1   $ 1,538.9   $  375.2
Operating        $ 44.3      $ 11.7      $  32.6      $ 173.7       $ 67.5        $  106.2
Income
Adjusted         $ 69.7      $ 30.9      $  38.8      $ 265.7       $ 138.8       $  126.9
EBITDA^(1)
Net Income
Attributable     $ 27.6      $ 8.0       $  19.6      $ 98.8        $ 60.6        $  38.2
to
Shareholders
Net Income
Per Diluted    $ 0.39    $ 0.12    $  0.27    $ 1.40      $ 0.87      $  0.53
Share

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

In fourth quarter 2012, total revenues rose 15.9 percent to $491.4 million
versus fourth quarter 2011. For the full year 2012, total revenues increased
24.4 percent to $1,914.1 million versus full year 2011. The increase for both
periods was largely driven by sales at our new Middletown facility, which
began operations in October 2011, along with the pass-through of higher coal
prices.

Adjusted EBITDA increased 125.6 percent to $69.7 million in the fourth quarter
2012 and was up 91.4percent for the year to $265.7 million as compared to the
same prior year periods. Adjusted EBITDA benefited in both periods from the
contribution of Middletown combined with better results at our Indiana Harbor
facility, which experienced operating challenges throughout 2011 and billing
and inventory adjustments in fourth quarter 2011.

Net income attributable to shareholders climbed by $19.6million to $27.6
million for the fourth quarter and by $38.2 million to $98.8 million for the
full year 2012. The quarter’s strong improvement was led by the contribution
of Middletown and better results at Indiana Harbor. The same factors drove the
full year increase, but were 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 December 31,
(In millions, except per ton amounts)   2012      2011     Increase/
                                                               (Decrease)
Segment Revenues                          $  69.6   $ 60.5   $  9.1
Adjusted EBITDA^(1)                       $  9.4     $ 10.6    $  (1.2  )
Sales Volumes (in thousands of tons)         170       166        4
Adjusted EBITDA per Ton^(1)             $  55.29  $ 63.86  $  (8.57 )

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

  *Segment revenues benefited from the pass-through of higher coal costs and
    increased sales volumes.
  *Adjusted EBITDA declined slightly due to a lower-of-cost-or-market
    adjustment on coke inventory, production impacts from a power outage due
    to Hurricane Sandy, as well as higher maintenance costs and lower yields.

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. SunCoke holds an 85percent interest in the partnership that owns the
Indiana Harbor cokemaking facility, with the remaining 15 percent interest
held by an unaffiliated third-party partner.

                                                          
                                        Three months ended December 31,
(In millions, except per ton amounts)   2012        2011     Increase
Segment Revenues                          $  390.6    $ 330.2  $  60.4
Adjusted EBITDA^(1)                       $  53.0      $ 20.8    $  32.2
Sales Volumes (in thousands of tons)         907         837        70
Adjusted EBITDA per Ton^(1)             $  58.43    $ 24.85  $  33.58

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

  *Segment revenues benefited from higher sales volumes at our Middletown
    facility, which represented $43.1 million of the increase, and the
    pass-through of higher coal costs.
  *Adjusted EBITDA benefited from the $17.9 million generated by our
    Middletown facility. Also contributing to the increase in Adjusted EBITDA
    was better results at Indiana Harbor. Indiana Harbor’s results benefited
    from a favorable billing adjustment of $4.2 million in fourth quarter 2012
    and a favorable prior year comparison which was negatively impacted by
    $14.3 million in billing and inventory adjustments.

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 was $10.2 million, unchanged from the same prior
    year period.

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 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 December 31,
                                                                    Increase/
(In millions, except per ton amounts)       2012      2011     
                                                                    (Decrease)
Total Coal Mining Revenues (including         $ 61.7    $ 60.4    $  1.3
sales to affiliates)
Segment Revenues (excluding sales to          $ 10.8     $ 14.3     $  (3.5  )
affiliates)
Adjusted EBITDA^(1)                           $ 6.0      $ 2.5      $  3.5
Coal Production (in thousands of tons)          351        349         2
Sales Volumes (in thousands of tons)^(2)        370        363         7
Sales Price per ton (excludes                 $ 165.77   $ 158.47   $  7.30
transportation costs)^(3)
Adjusted EBITDA per Ton^(1)                 $ 16.22   $ 6.89    $  9.33  

^(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.

  *Total coal mining revenues (including sales to affiliates) rose due to a
    higher average sale price and increased internal sales volumes. Segment
    revenues (excluding sales to affiliates) were down due to lower average
    sale price and lower sales volumes.
  *Adjusted EBITDA benefited from lower production costs in fourth quarter
    2012 due to lower Black Lung liability charges versus same prior year
    period and the increased mix of coal produced via our Revelation surface
    mining arrangement. Surface mining typically costs less to than
    underground coal mining.

Corporate and Other

Corporate expenses declined by $4.3 million to $8.9 million in fourth quarter
2012, primarily reflecting lower Black Lung liability charges, the absence of
Middletown startup costs and lower relocation expenses, consulting fees and
other costs, partly offset by a higher incentive compensation accrual.

Financing (Expense)/Income

Net financing expense increased $4.7 million in fourth quarter 2012 to $11.8
million, primarily due to $4.5million of capitalized interest related to
projects at our Middletown facility in fourth quarter 2011.

RECENT EVENTS

On January 24, 2013, SunCoke Energy, Inc. completed the initial public
offering of 13.5 million units, representing a 42.1 percent partner interest,
in its new master limited partnership, SunCoke Energy Partners, L.P. (NYSE:
SXCP) (“SXCP”). These units began trading on the New York Stock Exchange on
January 18, 2013 at $19.00 per unit. SunCoke Energy, Inc., through certain of
its subsidiaries, owns a 55.9 percent partner interest in the partnership, the
incentive distribution rights and is the general partner of the partnership,
holding a 2.0 percent general partner interest. The results reflected in this
release are for periods prior to the initial public offering of SXCP.

2013 OUTLOOK

The following summarizes the Company’s 2013 guidance:

  *Domestic coke production is expected to be in excess of 4.3million tons
  *Coal production is projected to be approximately 1.4 million tons
  *Adjusted EBITDA is expected to be between $205 million and $230 million on
    a consolidated basis. Adjusted EBITDA attributable to SXC is expected to
    be between $165 million and $190million, reflecting the impact of the
    public ownership in SunCoke Energy Partners, L.P.
  *Earnings per diluted share attributable to SXC is expected to be between
    $0.30 and $0.55 per diluted share, reflecting the impact of the public
    ownership in SunCoke Energy Partners, L.P.
  *Cash generated by operations is expected to be approximately $140 million.
  *Capital expenditures and investments are projected to be $200 million on a
    consolidated basis, including the expected $67million investment in the
    VISA SunCoke JV. Approximately $15million of the projected capital
    expenditures has been pre-funded from the proceeds from the initial public
    offering of SunCoke Energy Partners, L.P.
  *The effective tax rate for the full year 2013 is expected to be between
    7percent and 14percent, and the cash tax rate is expected to be between
    12 percent and 20 percent

RELATED COMMUNICATIONS

SunCoke Energy, Inc. and SunCoke Energy Partners, L.P. will host a joint
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 34031915. 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 34031915#.

DEFINITIONS

  *Adjusted EBITDA represents earnings before interest, taxes, depreciation,
    depletion and amortization (“EBITDA”) adjusted for sales discounts 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 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 attributable to SXC equals Adjusted EBITDA less Adjusted
    EBITDA attributable to noncontrolling interests.
  *Adjusted EBITDA per Ton represents Adjusted EBITDA divided by tons sold.
    When applicable to Adjusted EBITDA attributable to SXC, tons sold are
    prorated according to the respective ownership interest of SXC.

SUNCOKE ENERGY, INC.

SunCoke Energy, Inc. is the largest independent producer of 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 or 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;
unanticipated developments may negatively impact SXCP; receipt of regulatory
approvals and compliance with contractual obligations required in connection
with SXCP; the impact of SXCP on our relationships with our employees,
customers and vendors and our credit rating and cost of funds; changes in
market conditions; 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)
                                                              
                     Three Months Ended              Years Ended
                     December 31,
                                                     December 31,
                     2012            2011            2012          2011
                     (Dollars and shares in millions, except per share
                     amounts)
Revenues
Sales and other      $  480.6        $  413.9        $ 1,902.0     $ 1,527.6
operating revenue
Other income, net      10.8          10.2         12.1        11.3    
                                                                   
Total revenues         491.4         424.1        1,914.1     1,538.9 
                                                                   
Costs and
operating expenses
Cost of products
sold and operating      403.0           372.5          1,577.6       1305.8
expenses
Loss on firm
purchase                —               —              —             18.5
commitments
Selling, general
and administrative      20.8            23.9           82.0          88.7
expenses
Depreciation,
depletion and          23.3          16.0         80.8        58.4    
amortization
                                                                   
Total costs and        447.1         412.4        1,740.4     1,471.4 
operating expenses
                                                                   
Operating income       44.3          11.7         173.7       67.5    
                                                                   
Interest                —               —              —             12.5
income—affiliate
Interest income         —               0.1            0.4           0.4
Interest                —               0.1            —             (3.5    )
cost—affiliate
Interest cost           (11.8  )        (11.8  )       (48.2   )     (20.6   )
Capitalized            —             4.5          —           9.8     
interest
                                                                   
Total financing        (11.8  )       (7.1   )      (47.8   )    (1.4    )
expense, net
                                                                   
Income before
income tax expense      32.5            4.6            125.9         66.1
(benefit)
Income tax expense     3.5           (2.9   )      23.4        7.2     
(benefit)
                                                                   
Net income              29.0            7.5            102.5         58.9
Less: Net income
(loss)
attributable to        1.4           (0.5   )      3.7         (1.7    )
noncontrolling
interests
                                                                   
Net income
attributable to
SunCoke Energy,      $  27.6        $  8.0         $ 98.8       $ 60.6    
Inc. / net parent
investment
                                                                   
Earnings
attributable to
SunCoke Energy,
Inc. / net parent
investment per
common share:
Basic                $  0.39         $  0.12         $ 1.41        $ 0.87
Diluted              $  0.39         $  0.12         $ 1.40        $ 0.87
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
                                                      
                               Years Ended

                               December 31,
                               2012
                                                             2011
                               (Unaudited)
                               (Dollars in millions, except per share amounts)
Assets
Cash and cash equivalents      $    239.2                    $   127.5
Accounts receivable                 70.0                         66.2
Inventories                         160.1                        219.7
Deferred income taxes              2.6                        0.6       
                                                             
Total current assets               471.9                      414.0     
                                                             
Investment in Brazilian             41.0                         41.0
cokemaking operations
Properties, plants and              1,396.6                      1,391.8
equipment, net
Lease and mineral rights,           52.5                         53.2
net
Goodwill                            9.4                          9.4
Deferred charges and other         39.6                       32.4      
assets
                                                             
Total assets                   $    2,011.0                 $   1,941.8   
                                                             
Liabilities and Equity
Accounts payable                    132.9                        181.9
Current portion of                  3.3                          3.3
long-term debt
Accrued liabilities                 91.2                         80.4
Interest payable                    15.7                         15.9
Income taxes payable               3.9                        —         
                                                             
Total current liabilities          247.0                      281.5     
                                                             
Long-term debt                      720.1                        723.1
Accrual for black lung              34.8                         33.5
benefits
Retirement benefit                  42.5                         50.6
liabilities
Deferred income taxes               361.5                        261.1
Asset retirement                    13.5                         12.5
obligations
Other deferred credits and          16.7                         19.6
liabilities
Commitments and contingent                                  
liabilities
                                                             
Total liabilities                  1,436.1                    1,381.9   
                                                             
Equity
Preferred stock, $0.01 par
value. Authorized
50,000,000 shares; no               —                            —
issued and outstanding
shares at December 31,
2012 and 2011
Common stock, $0.01 par
value. Authorized
300,000,000 shares; issued
and outstanding 69,988,728          0.7                          0.7
shares and 70,012,702
shares at December 31,
2012 and December 31,
2011, respectively
Treasury stock, 603,528
shares at December 30,              (9.4       )                 —
2012 and no shares at
December 31, 2011
Additional paid-in capital          436.9                        511.3
Accumulated other                   (7.9       )                 (6.5      )
comprehensive loss
Retained earnings                  118.8                      20.0      
                                                             
Total SunCoke Energy, Inc.
stockholders’ equity / net          539.1                        525.5
parent investment
Noncontrolling interests           35.8                       34.4      
                                                             
Total equity                       574.9                      559.9     
                                                             
Total liabilities and          $    2,011.0                 $   1,941.8   
equity
                                                                           



SunCoke Energy, Inc.
Combined and Consolidated Statements of Cash Flows
                                                   
                                                      Years Ended

                                                      December 31,
                                                      2012        2011
                                                      (Dollars in millions)
Cash Flows from Operating Activities:
Net income                                            $ 102.5       $ 58.9
Adjustments to reconcile net income to net cash
provided by operating activities:
Loss on firm purchase commitment                        —             18.5
Depreciation, depletion and amortization                80.8          58.4
Stock compensation expense                              6.7           —
Deferred income tax expense                             34.3          24.0
Payments (in excess of) less than expense for           (6.6  )       5.8
retirement plans
Changes in working capital pertaining to
operating activities:
Accounts receivable                                     (3.8  )       (18.3  )
Inventories                                             56.1          (110.1 )
Accounts payable                                        (49.0 )       57.0
Accrued liabilities                                     15.2          15.7
Interest payable                                        (0.2  )       15.9
Income taxes payable                                    (17.4 )       (21.3  )
Other                                                  (12.5 )      (3.2   )
                                                                    
Net cash provided by operating activities              206.1       101.3  
                                                                    
                                                                    
Cash Flows from Investing Activities:
Capital expenditures                                    (80.6 )       (238.1 )
Acquisition of business, net of cash received           (3.5  )       (37.6  )
Proceeds from sale of assets                           —           —      
                                                                    
Net cash used in investing activities                  (84.1 )      (275.7 )
                                                                    
                                                                    
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt                —             727.9
Debt issuance costs                                     —             (19.1  )
Repayment of long-term debt                             (3.3  )       (1.6   )
Proceeds from exercise of stock options                 4.7           —
Repurchase of common stock                              (9.4  )       —
Purchase of noncontrolling interest in Indiana          —             (34.0  )
Harbor facility
Net decrease in advances from affiliate                 —             (412.8 )
Repayments of notes payable assumed in                  —             (2.3   )
acquisition
Contribution from parent                                —             —
Increase in payable to affiliate                        —             5.3
Cash distributions to noncontrolling interests in      (2.3  )      (1.6   )
cokemaking operations
                                                                    
Net cash (used in) provided by financing               (10.3 )      261.8  
activities
                                                                    
Net increase in cash and cash equivalents               111.7         87.4
Cash and cash equivalents at beginning of year         127.5       40.1   
                                                                    
Cash and cash equivalents at end of year              $ 239.2      $ 127.5  
                                                                             
                                                                             

                             SunCoke Energy, Inc.
                     Segment Financial and Operating Data

The following tables set forth the sales and other operating revenues and
Adjusted EBITDA^(1) of our segments and operating data for the three months
and year ended December 31, 2012 and 2011:

                                                            
                         Three Months Ended          Years Ended
                         December 31,
                                                     December 31,
                         2012         2011           2012          2011
                         (Dollars in millions)
Sales and other
operating revenues:
Jewell Coke              $ 69.6       $ 60.5         $ 286.4       $ 257.6
Other Domestic Coke        390.6        330.2          1,530.4       1,187.5
International Coke         9.6          8.9            36.9          38.0
Coal Mining                10.8         14.3           48.3          44.5
Coal Mining                50.9         46.1           203.4         183.6
intersegment sales
Elimination of            (50.9  )    (46.1  )      (203.4  )    (183.6  )
intersegment sales
                                                                   
Total                    $ 480.6     $ 413.9       $ 1,902.0    $ 1,527.6 
                                                                   
Adjusted EBITDA^(1):
Jewell Coke              $ 9.4        $ 10.6         $ 50.5        $ 46.1
Other Domestic Coke        53.0         20.8           198.9         87.7
International Coke         10.2         10.2           11.9          13.7
Coal Mining                6.0          2.5            33.4          35.5
Corporate and Other       (8.9   )    (13.2  )      (29.0   )    (44.2   )
                                                                   
Total                    $ 69.7      $ 30.9        $ 265.7      $ 138.8   
                                                                   
Coke Operating Data:
Capacity Utilization
(%)
Jewell Coke                94           98             97            98
Other Domestic Coke       103        101          103         100     
                                                                   
Total                      101          100            102           100
Coke production
volumes (thousands
of tons):
Jewell Coke                171          177            699           707
Other Domestic            911        838          3,643       3,055   
Coke^(2)
                                                                   
Total                      1,082        1,015          4,342         3,762
International Coke
production—operated        239          293            1,209         1,442
facility (thousands
of tons)
Coke sales volumes
(thousands of tons):
Jewell Coke                170          166            710           702
Other Domestic            907        837          3,635       3,068   
Coke^(3)
                                                                   
Total                     1,077      1,003        4,345       3,770   
                                                                   
Domestic Coke
Adjusted EBITDA per      $ 57.94      $ 31.31        $ 57.40       $ 35.49
ton^(4)
Coal Operating
Data^(5):
Coal sales volumes
(thousands of tons):
Internal use               287          263            1,149         1,128
Third parties             83         100          351         326     
                                                                   
Total                     370        363          1,500       1,454   
                                                                   
Coal production            351          349            1,476         1,364
(thousands of tons)
Purchased coal             9            20             42            117
(thousands of tons)
Coal sales price per
ton (excludes            $ 165.77     $ 158.47       $ 167.23      $ 156.52
transportation
costs)^(6)
Coal cash production     $ 150.57     $ 154.05       $ 144.90      $ 132.27
cost per ton^(7)
Purchased coal cost      $ 114.86     $ 76.04        $ 93.77       $ 103.11
per ton^(8)
Total coal
production cost per      $ 159.54     $ 158.28       $ 152.75      $ 137.23
ton^(9)
                                                                             

   (1)   See definition of Adjusted EBITDA and reconciliation to GAAP
              elsewhere in this release.
              Includes Middletown production volumes of 153 thousand and 602
      (2)     thousand tons for the three months and year ended December 31,
              2012, respectively.
              Excludes 31 thousand and 73 thousand tons of consigned coke
              sales for the three months and year ended December 31, 2012,
      (3)     respectively. Includes Middletown sales volumes of 150 thousand
              and 597 thousand tons for the three months and year ended
              December 31, 2012, respectively.
      (4)     Reflects Jewell Coke plus Other Domestic Coke Adjusted EBITDA
              divided by U.S. coke sales volume.
              Includes production from Company and contract-operated mines,
      (5)     inclusive of production via our Revelation contract-mining
              arrangement.
      (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
      (9)     sales volume. Depreciation, depletion and amortization per ton
              were $13.48 and $10.19 for the three months ended December 31,
              2012 and 2011, respectively, and $11.76 and $8.89 for the year
              ended December 31, 2012 and 2011, respectively.
              


SunCoke Energy, Inc.
Reconciliations of Non-GAAP Information

Adjusted EBITDA to Net Income
                                                            
                                          Three Months Ended   Years Ended
                                          December 31,         December 31,
                                          2012       2011     2012     2011
                                          (Dollars in millions)
Net Income                                29.0        7.5      102.5     58.9
Add (Subtract):
Depreciation, depletion and               23.3        16.0     80.8      58.4
amortization
Financing expense, net                    11.8        7.1      47.8      1.4
Income tax expense (benefit)              3.5        (2.9 )   23.4     7.2
                                                                         
EBITDA                                    67.6       27.7    254.5    125.9
                                                                         
Add (Subtract):
Sales discount provided to customers
due to sharing of nonconventional fuel    2.1        3.2     11.2     12.9
tax credits
                                                                         
Adjusted EBITDA                           69.7       30.9    265.7    138.8
                                                                         
Adjusted EBITDA attributable to           (1.5  )     0.8     (3.0  )   4.0
noncontrolling interest
                                                                         
Adjusted EBITDA attributable to SunCoke   68.2       31.7    262.7    142.8
Energy, Inc.



Estimated 2013 Adjusted EBITDA to Net Income
                                                              
                                                         Low           High
                                                         (Dollars in millions)
Estimated 2013 Net Income                                $43           $60
Add (Subtract):
Depreciation, depletion and amortization                 97            95
Total financing costs, net                               55            55
Income tax expense                                       3             10
Estimated 2013 EBITDA                                    $198          $220
Add (Subtract):
Sales discounts                                          7             7
Adjustments to unconsolidated affiliate                  0             3
earnings^(1)
Estimated 2013 Adjusted EBITDA                           $205          $230
EBITDA attributable to noncontrolling                    (40)          (40)
interests^(2)
Adjusted EBITDA attributable to SXC                      165           190

^(1) Reflects estimated pro-rata 2013 income related to planned VISA SunCoke
JV

^(2) Reflect non-controlling interests in Indiana Harbor and SXCP

Contact:

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