Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | SunCoke Energy Partners, L.P. | |
Entity Central Index Key | 1,555,538 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Common units | ||
Document Information [Line Items] | ||
Entity Common Stock, Common Unit Outstanding | 30,712,494 | |
Subordinated units | ||
Document Information [Line Items] | ||
Entity Common Stock, Common Unit Outstanding | 15,709,697 |
Combined and Consolidated State
Combined and Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Sales and other operating revenue | $ 210.2 | $ 216.8 | $ 621.1 | $ 649.1 |
Costs and operating expenses | ||||
Cost of products sold and operating expense | 149.7 | 157.6 | 452.7 | 485.3 |
Selling, general and administrative expense | 9.8 | 6.7 | 24.7 | 20.8 |
Depreciation and amortization expense | 17 | 13.7 | 47 | 40.3 |
Total costs and operating expenses | 176.5 | 178 | 524.4 | 546.4 |
Operating income | 33.7 | 38.8 | 96.7 | 102.7 |
Interest expense, net | 12.4 | 6.8 | 43.8 | 30.1 |
Income before income tax expense | 21.3 | 32 | 52.9 | 72.6 |
Income tax expense (benefit) | 0.5 | 4.9 | (2.4) | 9 |
Net income | 20.8 | 27.1 | 55.3 | 63.6 |
Less: Net income attributable to noncontrolling interests | 1.3 | 0.6 | 5.6 | 15.1 |
Net income attributable to SunCoke Energy Partners, L.P. | 19.5 | 26.5 | 49.7 | 48.5 |
General partner's interest in net income | 1.9 | 7 | 5.1 | 15.3 |
Limited partners' interest in net income | 17.6 | 19.5 | 44.6 | 33.2 |
Common | ||||
Costs and operating expenses | ||||
Limited partners' interest in net income | $ 17.6 | $ 19.5 | $ 44.6 | $ 33.2 |
Net income per unit (basic) (in dollars per share) | $ 0.43 | $ 0.52 | $ 1.16 | $ 1.01 |
Net income per unit (diluted) (in dollars per share) | $ 0.43 | $ 0.52 | $ 1.16 | $ 1.01 |
Weighted average units outstanding (basic) (in shares) | 27.4 | 21.7 | 24.8 | 19 |
Weighted average units outstanding (diluted) (in shares) | 27.4 | 21.7 | 24.8 | 19 |
Subordinated | ||||
Costs and operating expenses | ||||
Net income per unit (basic) (in dollars per share) | $ 0.38 | $ 0.52 | $ 1 | $ 0.89 |
Net income per unit (diluted) (in dollars per share) | $ 0.38 | $ 0.52 | $ 1 | $ 0.89 |
Weighted average units outstanding (basic) (in shares) | 15.7 | 15.7 | 15.7 | 15.7 |
Weighted average units outstanding (diluted) (in shares) | 15.7 | 15.7 | 15.7 | 15.7 |
Predecessor | ||||
Costs and operating expenses | ||||
Net income attributable to SunCoke Energy Partners, L.P. | $ 0 | $ 6.3 | $ 0.6 | $ 13.9 |
General partner's interest in net income | 0 | 6.3 | 0.6 | 13.9 |
Successor | ||||
Costs and operating expenses | ||||
Net income attributable to SunCoke Energy Partners, L.P. | $ 19.5 | $ 20.2 | $ 49.1 | $ 34.6 |
Combined and Consolidated Balan
Combined and Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 61.3 | $ 33.3 |
Receivables | 59.7 | 36.3 |
Receivables from affiliates, net | 1.9 | 3.1 |
Inventories | 75.4 | 90.4 |
Other current assets | 2.9 | 1.5 |
Total current assets | 201.2 | 164.6 |
Restricted cash | 21.5 | 0 |
Properties, plants and equipment, net | 1,331.3 | 1,213.4 |
Goodwill | 69.1 | 8.2 |
Other intangible assets, net | 190.2 | 6.9 |
Deferred income taxes | 0 | 21.6 |
Deferred charges and other assets | 1.1 | 2.3 |
Total assets | 1,814.4 | 1,417 |
Liabilities and Equity | ||
Accounts payable | 51.1 | 61.1 |
Accrued liabilities | 20 | 11.2 |
Current portion of long-term debt | 1.1 | 0 |
Interest payable | 8.3 | 12.3 |
Total current liabilities | 80.5 | 84.6 |
Long-term debt | 939.8 | 399 |
Deferred income taxes | 38.1 | 0 |
Asset retirement obligations | 5.6 | 5.3 |
Other deferred credits and liabilities | 9.1 | 1.4 |
Total liabilities | 1,073.1 | 490.3 |
Equity | ||
Equity | 725.4 | 915.6 |
Noncontrolling interest | 15.9 | 11.1 |
Total equity | 741.3 | 926.7 |
Total liabilities and partners' net equity | 1,814.4 | 1,417 |
General Partner | ||
Equity | ||
Equity | 13.6 | 9.2 |
Total equity | 13.6 | 9.2 |
Parent | ||
Equity | ||
Equity | 0 | 349.8 |
Total equity | 0 | 349.8 |
Common Units - Public | ||
Equity | ||
Equity | 300.4 | 239.1 |
Common Units - Parent | ||
Equity | ||
Equity | 209.9 | 113.8 |
Subordinated | ||
Equity | ||
Equity | $ 201.5 | $ 203.7 |
Combined and Consolidated Bala4
Combined and Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2015 | Dec. 31, 2014 |
Common Units - Public | ||
Limited partners' capital account units issued (in units) | 21,006,495 | 16,789,164 |
Common Units - Parent | ||
Limited partners' capital account units issued (in units) | 9,705,999 | 4,904,752 |
Subordinated | ||
Limited partners' capital account units issued (in units) | 15,709,697 | 15,709,697 |
Combined and Consolidated Stat5
Combined and Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 55.3 | $ 63.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 47 | 40.3 |
Deferred income tax (benefit) expense | (3.1) | 9 |
Loss on debt extinguishment | 9.4 | 15.4 |
Changes in working capital pertaining to operating activities (net of acquisitions): | ||
Receivables | (28) | (6) |
Receivables from affiliate, net | 2.8 | 5.6 |
Inventories | 16.7 | (15) |
Accounts payable | (4.1) | (12.8) |
Accrued liabilities | 1.4 | (12.7) |
Interest payable | (8.7) | 0.3 |
Other | (0.5) | (1.1) |
Net cash provided by operating activities | 88.2 | 86.6 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (31.7) | (57) |
Acquisition of business | (193.1) | 0 |
Restricted cash | (21.5) | 0 |
Net cash used in investing activities | (246.3) | (57) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of common units of SunCoke Energy Partners, L.P., net of offering costs | 30 | 90.5 |
Proceeds from issuance of long-term debt | 210.8 | 268.1 |
Repayment of long-term debt, including market premium | (149.8) | (276.3) |
Debt issuance costs | (4.5) | (5.8) |
Proceeds from revolving credit facility | 185 | 40 |
Repayment of revolving facility | 0 | (80) |
Distributions to unitholders (public and parent) | (75) | (54.2) |
Distributions to noncontrolling interest (SunCoke Energy, Inc.) | (2.7) | (20.4) |
Common public unit repurchases | (10) | 0 |
Capital contributions from SunCoke Energy Partners GP LLC | 2.3 | 0.3 |
Net transfers to parent | 0 | (11.2) |
Net cash provided by (used in) financing activities | 186.1 | (49) |
Net increase (decrease) in cash and cash equivalents | 28 | (19.4) |
Cash and cash equivalents at beginning of period | 33.3 | 46.3 |
Cash and cash equivalents at end of period | $ 61.3 | $ 26.9 |
Combined and Consolidated Stat6
Combined and Consolidated Statements of Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Millions | Total | Parent | PublicCommon Units - Public | SunCoke Energy IncCommon Units - Parent | SunCoke Energy IncSubordinated | General Partner | Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2014 | $ 926.7 | $ 349.8 | $ 239.1 | $ 113.8 | $ 203.7 | $ 9.2 | $ 11.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 55.3 | 0.6 | 19.3 | 8 | 17.3 | 4.5 | 5.6 |
Distribution to unitholders | (75) | (31) | (13.2) | (26.7) | (4.1) | ||
Distributions to noncontrolling interest | (2.7) | (2.7) | |||||
Unit repurchases | (10) | (10) | |||||
Issuance of units | 176.7 | 75 | 98 | 3.7 | |||
Adjustments to equity for the acquisition of an interest in Granite City | (250.8) | (106.7) | (44.6) | (94.4) | (5.1) | ||
Allocation of parent net equity in Granite City to SunCoke Energy Partners, L.P. | (271.5) | 114.7 | 47.9 | 101.6 | 5.4 | 1.9 | |
Granite City net assets not assumed by SunCoke Energy Partners, L.P. | (78.9) | (78.9) | |||||
Balance at end of period at Sep. 30, 2015 | $ 741.3 | $ 0 | $ 300.4 | $ 209.9 | $ 201.5 | $ 13.6 | $ 15.9 |
General
General | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. General Description of Business SunCoke Energy Partners, L.P., (the "Partnership", "we", "our", and "us"), is a Delaware limited partnership formed in July 2012 , which primarily produces coke used in the blast furnace production of steel. At September 30, 2015 , we owned a 98 percent interest in Haverhill Coke Company LLC ("Haverhill"), Middletown Coke Company, LLC ("Middletown") and Gateway Energy and Coke Company, LLC ("Granite City"). The remaining 2 percent ownership interest in our three cokemaking facilities was owned by SunCoke Energy, Inc. ("SunCoke"). At September 30, 2015 , SunCoke, through a subsidiary, owned a 53.7 percent partnership interest in us and all of our incentive distribution rights and indirectly owned and controlled our general partner, which holds a 2.0 percent general partner interest in us. Our Coal Logistics business provides coal handling and/or blending services to third party customers as well as to our own cokemaking facilities. Incorporated in Delaware in 2012 and headquartered in Lisle, Illinois, we became a publicly-traded partnership in 2013 and our stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “SXCP.” Basis of Presentation The accompanying unaudited combined and consolidated financial statements included herein have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP") for interim reporting. Certain information and disclosures normally included in financial statements have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In management’s opinion, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. The results of operations for the period ended September 30, 2015 are not necessarily indicative of the operating results for the full year. These unaudited interim combined and consolidated financial statements and notes should be read in conjunction with the audited combined and consolidated financial statements and notes included in our Current Report on Form 8-K dated April 30, 2015 and our Annual Report on Form 10-K for the year ended December 31, 2014 . On January 13, 2015 , the Partnership acquired an initial 75 percent interest in SunCoke's Granite City cokemaking facility (the "Granite City Dropdown"). On August 12, 2015 , the Partnership acquired an additional 23 percent interest in SunCoke's Granite City cokemaking facility (the "Granite City Supplemental Dropdown"). The combined and consolidated financial statements for the periods presented pertain to the operations of the Partnership and give retrospective effect to include the results of operations, financial position and cash flows of Granite City as a result of the Granite City Dropdown. Granite City participated in centralized financing and cash management programs not maintained at the Partnership for periods prior to the Granite City Dropdown. Accordingly, none of SunCoke’s cash or interest income for periods prior to the Granite City Dropdown has been assigned to Granite City in the combined and consolidated financial statements. Advances between Granite City and SunCoke that are specifically related to Granite City have been reflected in the combined and consolidated financial statements for periods prior to the Granite City Dropdown. Transfers of cash to and from SunCoke’s financing and cash management program are reflected as a component of parent net equity on the Combined and Consolidated Balance Sheets. The Granite City Dropdown did not impact historical earnings per unit as pre-acquisition earnings were allocated to our general partner. New Accounting Pronouncements In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 eliminates the requirement to retrospectively account for adjustments made to provisional amounts recognized at the acquisition date. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect this ASU to have a material effect on the Company's financial condition, results of operations, or cash flows. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value, removing the consideration of current replacement cost. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company does not expect this ASU to have a material effect on the Company's financial condition, results of operations, or cash flows. In April 2015, the FASB issued ASU 2015-06, "2015-06-Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions (a consensus of the Emerging Issues Task Force)." ASU 2015-06 indicates how the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated to the various interest holders, such as the general partner, in a master limited partnership for purposes of calculating earnings per unit under the two-class method. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company is currently assessing presentation matters related to this ASU. In April 2015, the FASB issued ASU 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company early adopted this ASU during the first quarter of 2015. See Note 7 . In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 eliminates the deferral of FASB Statement No. 167, "Amendments to FASB Interpretation No. 46(R)," and makes changes to both the variable interest model and the voting model. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect this ASU to have a material effect on the Company's financial condition, results of operations, or cash flows. Reclassifications Certain amounts in the prior period combined and consolidated financial statements have been reclassified to conform to the current year presentation. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions Convent Marine Terminal Acquisition On August 12, 2015, the Partnership completed the acquisition of a 100 percent ownership interest in Raven Energy LLC, which owns Convent Marine Terminal ("CMT") for a total transaction value of $404.5 million . This transaction represents a significant expansion of the Partnership's Coal Logistics business and marks our entry into export coal handling. CMT is one of the largest export terminals on the U.S. gulf coast and provides strategic access to seaborne markets for coal and other industrial materials. Supporting low-cost Illinois basin coal producers, the terminal provides loading and unloading services and has direct rail access and the capability to transload 10 million tons of coal annually. The facility is supported by long-term contracts with volume commitments covering all of its current 10 million ton capacity. The total transaction value of $404.5 million included the issuance of 4.8 million of the Partnership's common units to the previous owner of Raven Energy LLC, The Cline Group, with an aggregate value of $75.0 million , based on the unit price on the date of close. In addition, the Partnership assumed $114.9 million of a six-year term loan from Raven Energy LLC. The Partnership obtained additional funding for the transaction by drawing $185.0 million on the Partnership's revolving credit facility. The Partnership paid $193.1 million in cash, which was partially funded by SunCoke in exchange for 1.8 million of the Partnership's common units, with an aggregate value of $30.0 million . In connection with the acquisition, the Partnership’s general partner made a capital contribution to the Partnership of approximately $2.3 million in order to preserve its 2 percent general partner interest. An additional $21.5 million in cash was withheld to fund the completion of expansion capital improvements at CMT and is recorded in restricted cash on the Combined and Consolidated Balance Sheet. The following table summarizes the consideration transferred to acquire CMT: Fair Value of Consideration Transferred: (Dollars in millions) Cash $ 193.1 Partnership common units 75.0 Assumption of Raven Energy LLC term loan 114.9 Cash withheld to fund capital expenditures 21.5 Total fair value of consideration transferred: $ 404.5 The purchase price allocation has been determined provisionally, and is subject to revision as additional information about the fair value of individual assets and liabilities becomes available. The Partnership is in the process of finalizing appraisals of tangible and intangible assets acquired. Accordingly, the provisional measurements are subject to change. In addition, we are in the process of finalizing working capital adjustments for the acquisition, which may result in a corresponding adjustment to the total purchase price as well as the value of assets acquired. Any change in the acquisition date fair value of the acquired net assets will change the amount of the purchase price allocated to goodwill. The following table summarizes the amounts of identified assets acquired and liabilities assumed based on the estimated fair value at the acquisition date: Recognized amounts of identifiable assets acquired and liabilities assumed: (Dollars in millions) Receivables $ 6.1 Inventories 1.7 Other current assets 0.1 Properties, plants and equipment, net 145.1 Accounts payable (0.5 ) Accrued liabilities (7.5 ) Current portion of long-term debt (1.1 ) Long-term debt (113.8 ) Contingent consideration (7.9 ) Net recognized amounts of identifiable assets acquired $ 22.2 Intangible assets 185.0 Goodwill 60.9 Total assets acquired, net of liabilities assumed $ 268.1 Plus: Debt assumed $ 114.9 Cash withheld to fund capital expenditures 21.5 Total fair value of consideration transferred $ 404.5 Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The primary factors that contributed to a premium in the purchase price and the resulting recognition of goodwill were the value of additional capacity and potential for future additional throughput. The purchase price allocation to identifiable intangible assets, which are all amortizable, along with their respective weighted-average amortization periods at the acquisition date are as follows: Weighted - Average Remaining Amortization Years (Dollars in millions) Customer contracts 7 $ 24.0 Customer relationships 17 22.0 Permits 27 139.0 Total $ 185.0 The purchase price includes a contingent consideration arrangement that requires the Partnership to make future payments to The Cline Group based on future volume, price, and contract renewals. The fair value of the contingent consideration at the acquisition date was estimated at $7.9 million and was based on a probability-weighted analysis using significant inputs that are not observable in the market, or Level 3 inputs. Key assumptions included probability adjusted levels of coal handling services provided by CMT, anticipated price per ton on future sales, and probability of contract renewal including length of future contracts, volume commitment, and anticipated price per ton. Contingent consideration is included in other deferred credits and liabilities on the Combined and Consolidated Balance Sheet. The results of CMT have been included in the combined and consolidated financial statements since the acquisition date and are included in the Coal Logistics segment. CMT contributed revenues of $5.7 million and operating income of $2.6 million from the acquisition date to September 30, 2015 . The below unaudited pro forma estimated combined results of operations have been prepared assuming the acquisition of CMT had taken place at January 1, 2014 . The following unaudited pro forma combined results of operations were prepared using historical financial information of CMT: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions, except per unit amounts) Sales and other operating revenue $ 216.8 $ 233.4 $ 653.8 $ 692.8 Net income $ 20.3 $ 35.1 $ 55.4 $ 77.5 Net income per limited partner unit (basic and diluted) $ 0.37 $ 0.58 $ 0.95 $ 1.06 The pro forma combined results of operations reflect historical results adjusted for interest expense, depreciation adjustments based on the fair value of acquired property, plant and equipment, amortization of acquired identifiable intangible assets, and income tax expense. The pro forma combined results do not include acquisition costs or new contracts. Cash received from customers based on pro-rata volume commitments under take-or-pay contracts that is in excess of cash earned for services provided during the quarter is recorded as deferred revenue. Deferred revenue on take-or-pay contracts is recognized into income annually based on the terms of the contract. For the nine months ended September 30, 2015 and 2014, CMT deferred $5.1 million and $2.6 million in revenue, respectively, for its take-or-pay contracts. The unaudited pro forma combined and consolidated financial statements are presented for informational purposes only and do not necessarily reflect future results given the timing of new customer contracts, revenue recognition related to take-or-pay shortfalls, and other effects of integration, nor do they purport to be indicative of the results of operations that actually would have resulted had the acquisition of CMT occurred on January 1, 2014, or future results. Granite City Dropdowns On January 13, 2015, the Partnership acquired a 75 percent interest in SunCoke's Granite City cokemaking facility for a total transaction value of $244.4 million . The Granite City cokemaking facility, which began operations in 2009, has annual cokemaking capacity of 650 thousand tons and produces super-heated steam for power generation. Both the coke and the steam are provided to U.S. Steel under a long-term take-or-pay contract that expires in 2025. The Granite City Dropdown was a transfer of businesses between entities under common control. Accordingly, our historical financial information has been retrospectively adjusted to include Granite City’s historical results and financial position for all periods presented. The Partnership accounted for the Granite City Dropdown as an equity transaction, with SunCoke's interest in Granite City reflected in parent net equity until the date of the transaction. On the date of the Granite City Dropdown, the historical cost of the Granite City assets acquired of $203.6 million was allocated to the general partner and limited partners based on their ownership interest in the Partnership immediately following the equity issuances described below, and $67.9 million was allocated to noncontrolling interest for the 25 percent of Granite City retained by SunCoke. The net impact on Partnership equity of the book value acquired, net of the transaction value was $15.1 million representing the net book value acquired of $203.6 million partially offset by transaction value recorded through equity of $188.5 million . The remaining transaction value of $55.9 million includes cash retained to pre-fund the environmental project, interest expensed, redemption premium, and debt issuance costs discussed below and in Note 7. In connection with the Granite City Dropdown, the Partnership issued 1.9 million common units totaling approximately $50.1 million and $1.0 million of general partner interest to SunCoke. In addition, the Partnership assumed and repaid $135.0 million principal amount of SunCoke’s outstanding 7.625 percent senior notes ("Notes") and $1.0 million of related accrued interest. The total transaction value also included $4.6 million of interest and $7.7 million of redemption premium in connection therewith, both of which were included in interest expense, net on the Combined and Consolidated Statements of Income. The Partnership retained the remaining cash of $45.0 million to pre-fund SunCoke’s obligation to indemnify the Partnership for the anticipated cost of an environmental project at Granite City. To fund the Granite City Dropdown, the Partnership issued an additional $200.0 million of its 7.375 percent unsecured senior notes, due 2020 (the "Partnership Notes"). On August 12, 2015 , the Partnership acquired an additional 23 percent interest in SunCoke's Granite City cokemaking facility for a total transaction value of $65.2 million (the "Granite City Supplemental Dropdown"). The Partnership accounted for the Granite City Supplemental Dropdown as an equity transaction. On the date of the Granite City Supplemental Dropdown, the historical cost of the Granite City assets acquired was $66.0 million , which was allocated to the general partner and limited partners based on their ownership of the Partnership immediately following the equity issuances described below with an equal and offsetting decrease in noncontrolling interest. The net impact on Partnership equity of the $66.0 million book value acquired, net of the transaction value recorded through equity of $62.3 million was $3.7 million . The remaining transaction value of $2.9 million includes interest expensed, redemption premium and debt issuance costs discussed below and in Note 7. The total transaction value for the Granite City Supplemental Dropdown also included the issuance of 1.2 million common units totaling $17.9 million and $0.4 million of general partner interest to Suncoke. In addition, the Partnership assumed $44.6 million of Suncoke's Notes and $0.1 million of related accrued interest. The total transaction value also included $0.5 million of interest, which was included in interest expense, net on the Combined and Consolidated Statement of Income and the applicable redemption premium of approximately $1.7 million , which will be recorded to interest expense upon redemption. The Partnership expects to access the capital markets for long-term financing at a later date. As the results of Granite City are presented combined with the results of the Partnership for periods prior to the Granite City dropdowns, the only impacts on our Combined and Consolidated Statements of Cash Flows for the Granite City Dropdown and Granite City Supplemental Dropdown were the related financing activities discussed above. Subsequent to the Granite City Supplemental Dropdown and the acquisition of CMT, SunCoke, through a subsidiary, owned a 53.4 percent partnership interest in us and all of our incentive distribution rights and indirectly owned and controlled our general partner, which holds a 2.0 percent general partner interest in us. Haverhill and Middletown Dropdown On May 9, 2014, we completed the acquisition of an additional 33 percent interest in each of the Haverhill, Ohio ("Haverhill") and Middletown, Ohio ("Middletown") cokemaking facilities, in each of which we previously had a 65 percent interest, for total transaction value of $365.0 million (the "Haverhill and Middletown Dropdown"). The results of the Haverhill and Middletown operations are consolidated in the combined and consolidated financial statements of the Partnership for all periods presented and any interest in the Haverhill and Middletown operations retained by SunCoke is recorded as a noncontrolling interest of the Partnership. SunCoke held a 35 percent interest in Haverhill and Middletown prior to the Haverhill and Middletown Dropdown and retained a 2 percent interest in Haverhill and Middletown subsequent to the Haverhill and Middletown Dropdown . We accounted for the Haverhill and Middletown Dropdown as an equity transaction, which resulted in a $171.3 million reduction to noncontrolling interest for the additional 33 percent interest acquired by the Partnership. Partnership equity was decreased $170.1 million for the difference between the transaction value discussed below and the $171.3 million of noncontrolling interest acquired. Total transaction value for the Haverhill and Middletown Dropdown included $3.4 million of cash to SunCoke, 2.7 million common units totaling $80.0 million issued to SunCoke and $3.3 million of general partner interests issued to SunCoke. We retained $7.0 million in cash to pre-fund SunCoke’s obligation to indemnify us for the anticipated cost of an environmental remediation project at Haverhill, which did not impact Partnership equity. In addition, we assumed and repaid approximately $271.3 million of outstanding SunCoke debt and other liabilities, which includes a market premium of $11.4 million to complete the tender of certain debt. The market premium was included in interest expense, net on the Combined and Consolidated Statement of Income. In conjunction with the assumption of this debt, the Partnership also assumed the related debt issuance costs and debt discount, which were included in the adjustments to equity related to the acquisition in the Combined and Consolidated Statements of Equity. We funded the Haverhill and Middletown Dropdown with $88.7 million of net proceeds from the sale of 3.2 million common units to the public, which was completed on April 30, 2014, and approximately $263.1 million of gross proceeds from the issuance of an additional $250.0 million aggregate principal amount of Partnership Notes through a private placement on May 9, 2014. In conjunction with the issuance of the additional Partnership Notes, the Partnership incurred debt issuance costs of $4.9 million , $0.9 million of which was considered a modification of debt and was included in other operating cash flows in the Combined and Consolidated Statements of Cash Flows with the remainder included in financing cash flows. In addition, the Partnership received $5.0 million to fund interest from February 1, 2014 to May 9, 2014, the period prior to the issuance. This interest was paid to noteholders on August 1, 2014. As Haverhill and Middletown were consolidated both prior to and subsequent to the Haverhill and Middletown Dropdown, the only impact on our Combined and Consolidated Statement of Cash Flows was the related financing activities discussed above. Subsequent to the Haverhill and Middletown Dropdown, SunCoke, through a subsidiary, owned a 54.1 percent partnership interest in us and all of our incentive distribution rights and indirectly owned and controlled our general partner, which holds a 2.0 percent general partner interest in us. The table below summarizes the effects of the changes in the Partnership's ownership interest in Haverhill, Middletown and Granite City on the Partnership's equity. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Net income attributable to SunCoke Energy Partners, L.P. $ 19.5 $ 20.2 $ 49.1 $ 34.6 Increase in SunCoke Energy Partners, L.P. partnership equity for the purchase of a 75 percent interest in Granite City — — 15.1 — Increase in SunCoke Energy Partners, L.P. partnership equity for the purchase of an additional 23 percent interest in Granite City 3.7 — 3.7 — Decrease in SunCoke Energy Partners, L.P. partnership equity for the purchase of an additional 33 percent interest in Haverhill and Middletown — (170.1 ) — (170.1 ) Change from net income attributable to SunCoke Energy Partners, L.P. and dropdown transactions $ 23.2 $ (149.9 ) $ 67.9 $ (135.5 ) The terms of the contribution agreements and the acquisitions of the interest in Granite City and interest in Haverhill and Middletown were approved by the conflicts committee of our general partner’s Board of Directors, which consists entirely of independent directors. The Partnership incurred $2.2 million and $2.6 million , respectively, in acquisition and business development costs for the three and nine months ended September 30, 2015. These expenses are included in selling, general and administrative expenses on the Combined and Consolidated Statements of Income. |
Related Party Transactions and
Related Party Transactions and Agreements | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Agreements | 3. Related Party Transactions and Agreements The related party transactions with SunCoke and its affiliates are described below. Transactions with Affiliate Our Coal Logistics business provides coal handling and/or blending services to certain SunCoke cokemaking operations. Coal Logistics recorded revenues derived from services provided to SunCoke’s cokemaking operations of $4.0 million and $10.3 million for the three and nine months ended September 30, 2015 , respectively, and $3.3 million and $9.3 million during the three and nine months ended September 30, 2014 , respectively. The Partnership also purchased coal and other services from SunCoke and its affiliates totaling $1.3 million and $3.9 million during the three and nine months ended September 30, 2015 , respectively, and $10.1 million and $27.0 million during the three and nine months ended September 30, 2014 , respectively. At September 30, 2015 , net receivables from SunCoke and affiliates were $1.9 million , which is recorded in receivables from affiliates, net on the Combined and Consolidated Balance Sheets. Transactions with Related Parties Our Coal Logistics business provides coal handling and storage services to Murray Energy Corporation ("Murray") and Foresight Energy LP ("Foresight"), who are related parties with The Cline Group. The Cline Group was the previous owner of Raven Energy LLC and currently owns a 10.2 percent interest in the Partnership as part of the CMT acquisition. See Note 2 . Coal Logistics recorded revenues derived from services provided to these related parties of $4.4 million for the three and nine months ended September 30, 2015 . At September 30, 2015 , receivables from Murray and Foresight were $4.5 million , which is recorded in receivables on the Combined and Consolidated Balance Sheets. Allocated Expenses SunCoke charges us for all direct costs and expenses incurred on our behalf and allocated costs associated with support services provided to our operations. Allocated expenses from SunCoke for general corporate and operations support costs are included in selling, general and administrative expenses totaled $6.5 million and $19.8 million for the three and nine months ended September 30, 2015 , respectively, and $6.2 million and $17.4 million for the three and nine months ended September 30, 2014 , respectively. These costs include legal, accounting, tax, treasury, engineering, information technology, insurance, employee benefit costs, communications, human resources, and procurement. Corporate allocations are recorded in accordance with the terms of our omnibus agreement with SunCoke and our general partner. These allocations were increased concurrently with the Haverhill and Middletown Dropdown. Omnibus Agreement In connection with the closing of our initial public offering on January 24, 2013 ("IPO"), we entered into an omnibus agreement with SunCoke and our general partner that addresses certain aspects of our relationship with them, including: Business Opportunities. We have preferential rights to invest in, acquire and construct cokemaking facilities in the United States and Canada. SunCoke has preferential rights to all other business opportunities. Potential Defaults by Coke Agreement Counterparties. For a period of five years from the closing date of the IPO, SunCoke has agreed to make us whole (including an obligation to pay for coke) to the extent (i) AK Steel exercises the early termination right provided in its Haverhill coke sales agreement, (ii) any customer fails to purchase coke or defaults in payment under its coke sales agreement (other than by reason of force majeure or our default) or (iii) we amend a coke sales agreement's terms to reduce a customer's purchase obligation as a result of the customer's financial distress. We and SunCoke will share in any damages and other amounts recovered from third parties arising from such events in proportion to our relative losses. Environmental Indemnity. SunCoke will indemnify us to the full extent of any remediation at the Haverhill cokemaking facility arising from any environmental matter discovered and identified as requiring remediation prior to the closing of the IPO. SunCoke contributed $67.0 million in partial satisfaction of this obligation from the proceeds of the IPO and an additional $7.0 million in connection with the Haverhill and Middletown Dropdown. SunCoke also has agreed to indemnify us to the full extent of any required remediation at the Granite City cokemaking facility arising from any environmental matter discovered and identified as requiring remediation prior to the Granite City Dropdown. SunCoke has contributed $45.0 million in partial satisfaction of this obligation. See Note 2 . If, prior to the fifth anniversary of the closing of the IPO, a pre-existing environmental matter is identified as requiring remediation, SunCoke will indemnify us for up to $50.0 million of any such remediation costs (we will bear the first $5.0 million of any such costs). Other Indemnification. SunCoke will fully indemnify us with respect to any additional tax liability related to periods prior to or in connection with the closing of the IPO or the Granite City Dropdown to the extent not currently presented on the Combined and Consolidated Balance Sheets. Additionally, SunCoke will either cure or fully indemnify us for losses resulting from any material title defects at the properties owned by the entities acquired in connection with the closing of the IPO or the Granite City Dropdown to the extent that those defects interfere with or could reasonably be expected to interfere with the operations of the related cokemaking facilities. We will indemnify SunCoke for events relating to our operations except to the extent that we are entitled to indemnification by SunCoke. License. SunCoke has granted us a royalty-free license to use the name “SunCoke” and related marks. Additionally, SunCoke has granted us a non-exclusive right to use all of SunCoke's current and future cokemaking and related technology. We have not paid and will not pay a separate license fee for the rights we receive under the license. Expenses and Reimbursement. SunCoke will continue to provide us with certain corporate and other services, and we will reimburse SunCoke for all direct costs and expenses incurred on our behalf and a portion of corporate and other costs and expenses attributable to our operations. Additionally, we paid all fees in connection with the Partnership Notes offerings and the Partnership's revolving credit facility and have agreed to pay all additional fees in connection with any future financing arrangement entered into for the purpose of replacing the Partnership's revolving credit facility or the Partnership Notes. So long as SunCoke controls our general partner, the omnibus agreement will remain in full force and effect unless mutually terminated by the parties. If SunCoke ceases to control our general partner, the omnibus agreement will terminate, but our rights to indemnification and use of SunCoke's existing cokemaking and related technology will survive. The omnibus agreement can be amended by written agreement of all parties to the agreement, but we may not agree to any amendment that would, in the reasonable discretion of our general partner, be adverse in any material respect to the holders of our common units without prior approval of the conflicts committee. |
Cash Distributions and Net Inco
Cash Distributions and Net Income Per Unit | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Cash Distributions and Net Income Per Unit | 4. Cash Distributions and Net Income Per Unit Cash Distributions Our partnership agreement generally provides that we will make cash distributions, if any, each quarter in the following manner: • first , 98 percent to the holders of common units and 2 percent to our general partner, until each common unit has received the minimum quarterly distribution of $0.412500 plus any arrearages from prior quarters; • second, 98 percent to the holders of subordinated units and 2 percent to our general partner, until each subordinated unit has received the minimum quarterly distribution of $0.412500 ; and • third, 98 percent to all unitholders, pro rata, and 2 percent to our general partner, until each unit has received a distribution of $0.474375 . If cash distributions to our unitholders exceed $0.474375 per unit in any quarter, our unitholders and our general partner will receive distributions according to the following percentage allocations: Total Quarterly Distribution Per Unit Target Amount Marginal Percentage Interest in Distributions Unitholders General Partner Minimum Quarterly Distribution $0.412500 98% 2% First Target Distribution above $0.412500 up to $0.474375 98% 2% Second Target Distribution above $0.474375 up to $0.515625 85% 15% Third Target Distribution above $0.515625 up to $0.618750 75% 25% Thereafter above $0.618750 50% 50% Our distributions are declared subsequent to quarter end. The table below represents total cash distributions applicable to the period in which the distributions were earned: Earned in Quarter Ended Total Quarterly Distribution Per Unit Total Cash Distribution including general partners IDRs Date of Distribution Unitholders Record Date (Dollars in millions) March 31, 2014 $ 0.5000 $ 19.2 May 30, 2014 May 15, 2014 June 30, 2014 $ 0.5150 $ 19.8 August 29, 2014 August 15, 2014 September 30, 2014 $ 0.5275 $ 20.5 November 28, 2014 November 14, 2014 December 31, 2014 $ 0.5408 $ 22.2 February 27, 2015 February 13, 2015 March 31, 2015 $ 0.5715 $ 23.8 May 29, 2015 May 15, 2015 June 30, 2015 $ 0.5825 $ 29.0 August 31, 2015 August 14, 2015 September 30, 2015 (1) $ 0.5940 $ 29.6 December 1, 2015 November 13, 2015 (1) On October 9, 2015 , our Board of directors declared a cash distribution of $0.5940 per unit. It will be paid on December 1, 2015 , to unitholders of record on November 13, 2015 . Earnings Per Unit Our net income is allocated to the general partner and limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to our general partner, pursuant to our partnership agreement. Distributions less than or greater than earnings are allocated in accordance with our partnership agreement. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit. In addition to the common and subordinated units, we also have identified the general partner interest and incentive distribution rights as participating securities and we use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Basic and diluted net income per unit applicable to limited partners are the same because we do not have any potentially dilutive units outstanding. The Granite City Dropdown does not impact historical earnings per unit as the earnings of Granite City prior to the Granite City Dropdown were allocated entirely to our general partner. The calculation of earnings per unit is as follows: Three Months Ended September 30, Nine months ended September 30, 2015 2014 2015 (1) 2014 (2) (Dollars and units in millions, except per unit amounts) Net income attributable to SunCoke Energy L.P./Predecessor $ 19.5 $ 26.5 $ 49.7 $ 48.5 Less: Allocation of Granite City's net income to the general partner prior to the Granite City Dropdown — 6.3 0.6 13.9 Net income attributable to partners 19.5 20.2 49.1 34.6 General partner's distributions (including, $1.6, $0.4, $3.6 and $0.8 million of incentive distribution rights, respectively) 2.0 0.7 5.2 1.8 Limited partners' distributions on common units 18.2 11.5 49.6 33.4 Limited partners' distributions on subordinated units 9.4 8.3 27.6 24.3 Distributions greater than earnings (10.1 ) (0.3 ) (33.3 ) (24.9 ) General partner's earnings: Distributions (including $1.6, $0.4, $3.6 and $0.8 million of incentive distribution rights, respectively) 2.0 0.7 5.2 1.8 Allocation of distributions greater than earnings (0.1 ) — (0.7 ) (0.4 ) Granite City's net income prior to the Granite City Dropdown — 6.3 0.6 13.9 Total general partner's earnings 1.9 7.0 5.1 15.3 Limited partners' earnings on common units: Distributions 18.2 11.5 49.6 33.4 Allocation of distributions greater than earnings (6.6 ) (0.2 ) (20.9 ) (14.2 ) Total limited partners' earnings on common units 11.6 11.3 28.7 19.2 Limited partners' earnings on subordinated units: Distributions 9.4 8.3 27.6 24.3 Allocation of distributions greater than earnings (3.4 ) (0.1 ) (11.7 ) (10.3 ) Total limited partners' earnings on subordinated units 6.0 8.2 15.9 14.0 Weighted average limited partner units outstanding: Common - basic and diluted 27.4 21.7 24.8 19.0 Subordinated - basic and diluted 15.7 15.7 15.7 15.7 Net income per limited partner unit: Common - basic and diluted $ 0.43 $ 0.52 $ 1.16 $ 1.01 Subordinated - basic and diluted $ 0.38 $ 0.52 $ 1.00 $ 0.89 (1) Includes the total cash distribution paid on August 31, 2015 of $29.0 million , which included $4.6 million related to units issued to fund the acquisition of CMT and the Granite City Supplemental Dropdown during August 2015. (2) Includes the total cash distribution paid on May 30, 2014 of $19.2 million , which included $3.0 million related to units issued to fund the Haverhill and Middletown Dropdown during May 2014. Unit Activity Unit activity for the nine months ended September 30, 2015 : Common - Public Common - SunCoke Total Common Subordinated - SunCoke At December 31, 2014 16,789,164 4,904,752 21,693,916 15,709,697 Units issued in conjunction with the Granite City Dropdown — 1,877,697 1,877,697 — Units issued in conjunction with the Granite City Supplemental Dropdown — 1,158,760 1,158,760 — Units issued in conjunction with the acquisition of CMT 4,847,287 1,764,790 6,612,077 — Units issued to directors 3,820 — 3,820 — Unit repurchases (1) (633,776 ) — (633,776 ) — At September 30, 2015 21,006,495 9,705,999 30,712,494 15,709,697 (1) On July 20, 2015, the Partnership's Board of Directors authorized a program for the Partnership to repurchase up to $50.0 million of its common units. The Partnership repurchased $10.0 million , or 633,776 common units, in the open market, for an average price of $15.78 per unit, during the three months ended September 30, 2015, leaving $40.0 million available under the authorized unit repurchase program. Allocation of Net Income Our partnership agreement contains provisions for the allocation of net income to the unitholders and the general partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100 percent to the general partner. Net income from Granite City’s operations prior to the Granite City Dropdown is allocated to the general partner. The calculation of net income allocated to the general and limited partners was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Net income attributable to SunCoke Energy L.P./Predecessor $ 19.5 $ 26.5 $ 49.7 $ 48.5 Less: Allocation of Granite City's net income to the general partner prior to the Granite City Dropdown — 6.3 0.6 13.9 Net income attributable to partners 19.5 20.2 49.1 34.6 General partner's incentive distribution rights 1.6 0.4 3.6 0.8 17.9 19.8 45.5 33.8 General partner's ownership interest 2.0 % 2.0 % 2.0 % 2.0 % General partner's allocated interest in net income 0.3 0.3 0.9 0.6 General partner's incentive distribution rights 1.6 0.4 3.6 0.8 Granite City's net income prior to the Granite City Dropdown — 6.3 0.6 13.9 Total general partner's interest in net income $ 1.9 $ 7.0 $ 5.1 $ 15.3 Common - public unitholder's interest in net income $ 7.7 $ 8.7 $ 19.3 $ 14.6 Common - SunCoke interest in net income 3.4 2.6 8.0 3.6 Subordinated - SunCoke interest in net income 6.5 8.2 17.3 15.0 Total limited partners' interest in net income $ 17.6 $ 19.5 $ 44.6 $ 33.2 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories The components of inventories were as follows: September 30, 2015 December 31, 2014 (Dollars in millions) Coal $ 44.5 $ 60.4 Coke 2.4 2.0 Materials, supplies, and other 28.5 28.0 Total inventories $ 75.4 $ 90.4 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The Partnership is a limited partnership and generally is not subject to federal or state income taxes. However, as part of the Granite City Dropdown in the first quarter of 2015, the Partnership acquired an interest in Gateway Cogeneration Company, LLC, which is subject to income taxes for federal and state purposes. In addition, due to the Granite City Dropdown, earnings of the Partnership are subject to an additional state income tax. Earnings from our Middletown operations are subject to a local income tax. The Partnership recorded an income tax expense of $0.5 million for the three months ended September 30, 2015 and an income tax benefit of $2.4 million for the nine months ended September 30, 2015 , compared to income tax expense of $4.9 million and $9.0 million for the three and nine months ended September 30, 2014 , respectively. The nine months ended September 30, 2015 included an income tax benefit of $4.0 million related to the tax impacts of the Granite City Dropdown. Earnings from our Granite City operations include federal and state income taxes calculated on a theoretical separate-return basis until the date of the Granite City Dropdown. Additionally, the nine months ended September 30, 2015 includes an equity settlement of $62.8 million of net deferred tax assets calculated on a hypothetical separate-return basis related to our Granite City operations that had been previously utilized by the Predecessor. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt Total debt, including the current portion of long-term debt, consisted of the following: September 30, 2015 December 31, 2014 (Dollars in millions) 7.375% senior notes, due 2020 ("Partnership Notes"), including original issue premium of $13.6 million and $11.5 million at September 30, 2015 and December 31, 2014, respectively. 613.6 411.5 7.625% senior notes, due 2019 ("Notes") 44.6 — Promissory note payable, due 2021 ("Promissory Note") 114.6 — Revolving credit facility, due 2019 ("Partnership Revolver") 185.0 — Debt issuance cost (16.9 ) (12.5 ) Total debt $ 940.9 $ 399.0 Less: current portion of long-term debt 1.1 — Total long-term debt $ 939.8 $ 399.0 The Partnership has a $250.0 million Partnership Revolver. On August 12, 2015, in connection with the funding of the acquisition of CMT, the Partnership drew $185.0 million on the Partnership Revolver at a rate that bears interest at a variable rate of LIBOR plus 250 basis points or an alternative base rate, based on the Partnership's total ratios as defined by the Partnership's credit agreement. The spread is subject to change based on the Partnership's total leverage ratio, as defined in the credit agreement. As of September 30, 2015, the Partnership had $ 65.0 million available on the Partnership Revolver. During the nine months ended September 30, 2015, the Partnership incurred $0.3 million of debt issuance costs in connection with amendments of the Partnership Revolver. Also in connection with the acquisition of CMT, the Partnership assumed Raven Energy LLC's Promissory Note of $114.9 million . Under the Partnership's third amendment to the amended and restated credit agreement ("Promissory Agreement") dated August 12, 2015, the Partnership will repay a principal amount of $0.3 million each fiscal quarter ending prior to August 12, 2018. For each fiscal quarter ending after August 12, 2018, the Partnership shall repay a principal amount of $2.5 million . The entire outstanding amount of the Promissory Note is due in full on August 12, 2021. The Promissory Note shall bear interest on the outstanding principal amount for each day from August 12, 2015, until it becomes due, at a rate per annum equal to 6.0 percent until August 12, 2018. After August 12, 2018, that rate will be the LIBOR for the interest period then in effect plus 4.5 percent . Interest is due at the end of each fiscal quarter. On January 13, 2015, in connection with the Granite City Dropdown, the Partnership issued an additional $200.0 million of Partnership Notes. Proceeds of $204.0 million included an original issue premium of $4.0 million . In addition, the Partnership received $6.8 million to fund interest from August 1, 2014 to January 13, 2015, the interest period prior to issuance. This interest was paid to noteholders on February 1, 2015. The Partnership incurred debt issuance costs of $5.2 million , of which $1.0 million was considered a modification of debt and was recorded in interest expense, net on the Combined and Consolidated Statements of Income and was included in other operating cash flows on the Combined and Consolidated Statements of Cash Flow. In connection with the Granite City Dropdown, the Partnership assumed from SunCoke and repaid $135.0 million principal amount of SunCoke’s Notes and paid interest of $5.6 million . The Partnership also paid a redemption premium of $7.7 million , which was included in interest expense, net on the Combined and Consolidated Statements of Income. The Partnership assumed $2.2 million in debt issuance costs in connection with the assumption of this debt from SunCoke , $0.7 million of which related to the portion of the debt extinguished and was recorded in interest expense, net on the Combined and Consolidated Statements of Income. On August 12, 2015, in connection with the Granite City Supplemental Dropdown, the Partnership assumed from SunCoke an additional $44.6 million of Notes and unpaid interest of $0.6 million , of which $0.5 million was included in interest expense, net on the Combined and Consolidated Statements of Operations. The Partnership also assumed $0.7 million of debt issuance costs in connection with the assumption of this debt from SunCoke Energy. The Partnership is subject to certain debt covenants that, among other things, limit the Partnership’s ability and the ability of certain of the Partnership’s subsidiaries to (i) incur indebtedness, (ii) pay dividends or make other distributions, (iii) prepay, redeem or repurchase certain debt, (iv) make loans and investments, (v) sell assets, (vi) incur liens, (vii) enter into transactions with affiliates and (viii) consolidate or merge. These covenants are subject to a number of exceptions and qualifications set forth in the respective agreements governing the Partnership's debt. Under the terms of the Partnership Revolver, the Partnership is subject to a maximum consolidated leverage ratio of 4.50 : 1.00 (and, if applicable, 5.00 : 1.00 during the remainder of any fiscal quarter and the two immediately succeeding fiscal quarters following our acquisition of additional assets having a fair market value greater than $50 million ) , calculated by dividing total debt by EBITDA as defined by the Partnership Revolver, and a minimum consolidated interest coverage ratio of 2.50 : 1.00 , calculated by dividing EBITDA by interest expense as defined by the Partnership Revolver. Under the terms of the Promissory Agreement, Raven Energy LLC, a wholly-owned subsidiary of the Partnership, is subject to a maximum leverage ratio of 5.00 : 1.00 for any fiscal quarter ending prior to August 12, 2018, calculated by dividing total debt by EBITDA as defined by the Promissory Agreement. For any fiscal quarter ending on or after August 12, 2018 the maximum leverage ratio is 4.50 : 1.00 . Additionally in order to make restricted payments, Raven Energy LLC is subject to a fixed charge ratio of greater than 1.00 : 1.00 , calculated by dividing EBITDA by fixed charges as defined by the Promissory Agreement. If we fail to perform our obligations under these and other covenants, the lenders' credit commitment could be terminated and any outstanding borrowings, together with accrued interest, under the Partnership Revolver could be declared immediately due and payable. The Partnership has a cross-default provision that applies to our indebtedness having a principal amount in excess of $20 million . As of September 30, 2015 , the Partnership was in compliance with all applicable debt covenants contained in the Partnership Revolver and Promissory Agreement. We do not anticipate violation of these covenants nor do we anticipate that any of these covenants will restrict our operations or our ability to obtain additional financing. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 8. Supplemental Cash Flow Information Significant non-cash activities were as follows: Nine Months Ended September 30, 2015 2014 (Dollars in millions) Debt assumed by SunCoke Energy Partners, L.P. $ 294.5 $ 259.9 Equity Issuances 144.4 83.3 Net assets of the Predecessor not assumed by SunCoke Energy Partners, L.P. Receivables 9.1 — Property, plant and equipment 7.0 — Net deferred tax assets 62.8 — Restricted Cash 21.5 — |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 9. Commitments and Contingent Liabilities The United States Environmental Protection Agency (the "EPA") has issued Notices of Violations (“NOVs”) for the Haverhill and Granite City cokemaking facilities which stem from alleged violations of air operating permits for these facilities. We are working in a cooperative manner with the EPA, the Ohio Environmental Protection Agency and the Illinois Environmental Protection Agency to address the allegations, and have entered into a consent degree in federal district court with these parties. The consent decree includes a $2.2 million civil penalty payment that was paid by SunCoke in December 2014, as well as capital projects already underway to improve the reliability of the energy recovery systems and enhance environmental performance at the Haverhill and Granite City cokemaking facilities. We retained an aggregate of $119 million in proceeds from the Partnership offering, the Haverhill and Middletown Dropdown and the Granite City Dropdown to fund these environmental remediation projects at the Haverhill and Granite City cokemaking facilities. Pursuant to the omnibus agreement, any amounts that we spend on these projects in excess of the $119 million will be reimbursed by SunCoke. SunCoke spent $7 million related to these projects. We have spent approximately $81 million to date and the remaining capital is expected to be spent through the first quarter of 2018 . The Partnership is a party to certain other pending and threatened claims. Although the ultimate outcome of these claims cannot be ascertained at this time, it is reasonably possible that some portion of these claims could be resolved unfavorably to the Partnership. Management of the Partnership believes that any liability which may arise from claims would not be material in relation to the financial position, results of operations or cash flows of the Partnership at September 30, 2015 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: • Level 1—inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. • Level 2—inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. • Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). Convent Marine Terminal Contingent Consideration Contingent consideration related to the CMT acquisition is measured at fair value and amounted to $7.9 million at September 30, 2015. See Note 2 . Certain Financial Assets and Liabilities not Measured at Fair Value At September 30, 2015 , the estimated fair value of the Partnership's total debt was $890.9 million compared to a carrying amount of $ 957.8 million , which includes the original issue premium. The fair value was estimated by management based upon estimates of debt pricing provided by financial institutions which are considered Level 2 inputs. |
Business Segment Disclosures
Business Segment Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Disclosures | 11. Business Segment Disclosures The Partnership derives its revenues from the Domestic Coke and Coal Logistics reportable segments. Domestic Coke operations are comprised of the Haverhill and Middletown cokemaking facilities located in Ohio and the Granite City cokemaking facility located in Illinois. These facilities use similar production processes to produce coke and to recover waste heat that is converted to steam or electricity. Steam is sold to third party customers primarily pursuant to steam supply and purchase agreements. Electricity is sold into the regional power market or to AK Steel pursuant to energy sales agreements. Coke sales at the Partnership's cokemaking facilities are made pursuant to long-term take-or-pay agreements with ArcelorMittal, AK Steel and U.S. Steel. Each of the coke sales agreements contain pass-through provisions for costs incurred in the cokemaking process, including coal procurement costs (subject to meeting contractual coal-to-coke yields), operating and maintenance expenses, costs related to the transportation of coke to the customers, taxes (other than income taxes) and costs associated with changes in regulation, in addition to containing a fixed fee. Coal Logistics operations are comprised of SunCoke Lake Terminal, LLC ("Lake Terminal") located in Indiana and Kanawha River Terminals ("KRT") located in Kentucky and West Virginia and CMT located in Louisiana. This business provides coal handling and/or blending services to third party customers as well as SunCoke cokemaking facilities and has a collective capacity to blend and transload more than 40 million tons of coal annually. Coal handling and blending results are presented in the Coal Logistics segment. Corporate and other expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other. Interest expense, net is also excluded from segment results. Segment assets, net of tax are those assets that are utilized within a specific segment and excludes deferred taxes. The following table includes Adjusted EBITDA, which is the measure of segment profit or loss reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Sales and other operating revenue: Domestic Coke $ 192.4 $ 204.8 $ 581.1 $ 611.7 Coal Logistics 17.8 12.0 40.0 37.4 Coal Logistics intersegment sales 1.7 1.6 5.0 4.3 Elimination of intersegment sales (1.7 ) (1.6 ) (5.0 ) (4.3 ) Total sales and other operating revenue $ 210.2 $ 216.8 $ 621.1 $ 649.1 Adjusted EBITDA: Domestic Coke $ 46.6 $ 50.2 $ 137.3 $ 137.3 Coal Logistics 10.4 3.8 18.0 10.9 Corporate and Other (5.2 ) (1.5 ) (10.5 ) (5.7 ) Total Adjusted EBITDA $ 51.8 $ 52.5 $ 144.8 $ 142.5 Depreciation and amortization expense: Domestic Coke $ 13.5 $ 11.7 $ 39.8 $ 34.7 Coal Logistics 3.5 2.0 7.2 5.6 Total depreciation and amortization expense $ 17.0 $ 13.7 $ 47.0 $ 40.3 Capital expenditures: Domestic Coke $ 14.7 $ 19.4 $ 30.4 $ 55.0 Coal Logistics 0.8 1.2 1.3 2.0 Total capital expenditures $ 15.5 $ 20.6 $ 31.7 $ 57.0 The following table sets forth the Partnership’s total sales and other operating revenue by product or service, excluding intersegment revenues: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Sales and other operating revenue: Cokemaking revenues $ 176.9 $ 188.7 $ 534.0 $ 562.1 Energy revenues 15.5 16.2 47.0 49.6 Coal logistics revenues 17.2 11.6 38.7 35.8 Other revenues 0.6 0.3 1.4 1.6 Total revenues $ 210.2 $ 216.8 $ 621.1 $ 649.1 The following table sets forth the Company's segment assets: September 30, 2015 December 31, 2014 (Dollars in millions) Segment assets: Domestic Coke $ 1,277.4 $ 1,276.3 Coal Logistics 533.4 116.6 Corporate and Other 3.6 2.5 Segment assets, excluding deferred tax assets 1,814.4 1,395.4 Deferred tax assets — 21.6 Total assets $ 1,814.4 $ 1,417.0 The Partnership evaluates the performance of its segments based on segment Adjusted EBITDA, which represents earnings before interest, taxes, depreciation and amortization adjusted for sales discounts and Coal Logistics deferred revenue . Prior to the expiration of our nonconventional fuel tax credits in 2013, Adjusted EBITDA included an add-back of sales discounts related to the sharing of these credits with our customers. Any adjustments to these amounts subsequent to 2013 have been included in Adjusted EBITDA. Coal Logistics deferred revenue represents cash received on Coal Logistics take-or-pay contracts for which revenue has not yet been recognized under GAAP. Including Coal Logistics deferred revenue in Adjusted EBITDA reflects the cash flow of our contractual arrangements. Adjusted EBITDA does not represent and should not be considered an alternative to net income or operating income under GAAP and may not be comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure of the operating performance and liquidity of the Partnership's net assets and its ability to incur and service debt, fund capital expenditures and make distributions. Adjusted EBITDA 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 and liquidity. EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, and they should not be considered an alternative to net income, operating cash flow or any other measure of financial performance presented in accordance with GAAP. Set forth below is additional discussion of the limitations of Adjusted EBITDA as an analytical tool. Limitations. Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. Adjusted EBITDA also has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP. Some of these limitations include that Adjusted EBITDA: • does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; • does not reflect items such as depreciation and amortization; • does not reflect changes in, or cash requirements for, working capital needs; • does not reflect our interest expense, or the cash requirements necessary to service interest on or principal payments of our debt; • does not reflect certain other non-cash income and expenses; • excludes income taxes that may represent a reduction in available cash; and • includes net income attributable to noncontrolling interests. Below is a reconciliation of Adjusted EBITDA (unaudited) to net income and net cash provided by operating activities, which are its most directly comparable financial measures calculated and presented in accordance with GAAP: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 49.9 $ 37.6 $ 135.8 $ 92.0 Add: Adjusted EBITDA attributable to Predecessor (1) — 14.2 1.5 31.6 Add: Adjusted EBITDA attributable to noncontrolling interest (2) 1.9 0.7 7.5 18.9 Adjusted EBITDA $ 51.8 $ 52.5 $ 144.8 $ 142.5 Subtract: Depreciation and amortization expense 17.0 13.7 47.0 40.3 Interest expense, net 12.4 6.8 43.8 30.1 Income tax expense (benefit) 0.5 4.9 (2.4 ) 9.0 Sales discounts provided to customers due to sharing of nonconventional fuel tax credits (3) — — — (0.5 ) Coal Logistics deferred revenue (4) 1.1 — 1.1 — Net income $ 20.8 $ 27.1 $ 55.3 $ 63.6 Add: Depreciation and amortization expense 17.0 13.7 47.0 40.3 Loss on extinguishment of debt — — 9.4 15.4 Changes in working capital and other (22.1 ) (6.3 ) (23.5 ) (32.7 ) Net cash provided by operating activities $ 15.7 $ 34.5 $ 88.2 $ 86.6 (1) Reflects Granite City Adjusted EBITDA prior to the January 13, 2015 dropdown transaction. (2) Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest share of interest, taxes, income, and depreciation. (3) Sales discounts are related to nonconventional fuel tax credits, which expired in 2013. At December 31, 2013 , we had $13.6 million accrued related to sales discounts to be paid to our Granite City customer. During first quarter of 2014, we settled this obligation for $13.1 million which resulted in a gain of $0.5 million . This gain is recorded in sales and other operating revenue on our Combined and Consolidated Statements of Income. (4) Coal Logistics deferred revenue represents revenue excluded from sales and other operating income for GAAP purposes related to the timing of revenue recognition on the Coal Logistics take-or-pay contracts. Including take-or-pay shortfalls within Adjusted EBITDA matches cash flows with Adjusted EBITDA. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 eliminates the requirement to retrospectively account for adjustments made to provisional amounts recognized at the acquisition date. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect this ASU to have a material effect on the Company's financial condition, results of operations, or cash flows. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value, removing the consideration of current replacement cost. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company does not expect this ASU to have a material effect on the Company's financial condition, results of operations, or cash flows. In April 2015, the FASB issued ASU 2015-06, "2015-06-Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions (a consensus of the Emerging Issues Task Force)." ASU 2015-06 indicates how the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated to the various interest holders, such as the general partner, in a master limited partnership for purposes of calculating earnings per unit under the two-class method. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company is currently assessing presentation matters related to this ASU. In April 2015, the FASB issued ASU 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company early adopted this ASU during the first quarter of 2015. See Note 7 . In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 eliminates the deferral of FASB Statement No. 167, "Amendments to FASB Interpretation No. 46(R)," and makes changes to both the variable interest model and the voting model. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect this ASU to have a material effect on the Company's financial condition, results of operations, or cash flows. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the consideration transferred to acquire CMT: Fair Value of Consideration Transferred: (Dollars in millions) Cash $ 193.1 Partnership common units 75.0 Assumption of Raven Energy LLC term loan 114.9 Cash withheld to fund capital expenditures 21.5 Total fair value of consideration transferred: $ 404.5 The following table summarizes the amounts of identified assets acquired and liabilities assumed based on the estimated fair value at the acquisition date: Recognized amounts of identifiable assets acquired and liabilities assumed: (Dollars in millions) Receivables $ 6.1 Inventories 1.7 Other current assets 0.1 Properties, plants and equipment, net 145.1 Accounts payable (0.5 ) Accrued liabilities (7.5 ) Current portion of long-term debt (1.1 ) Long-term debt (113.8 ) Contingent consideration (7.9 ) Net recognized amounts of identifiable assets acquired $ 22.2 Intangible assets 185.0 Goodwill 60.9 Total assets acquired, net of liabilities assumed $ 268.1 Plus: Debt assumed $ 114.9 Cash withheld to fund capital expenditures 21.5 Total fair value of consideration transferred $ 404.5 The table below summarizes the effects of the changes in the Partnership's ownership interest in Haverhill, Middletown and Granite City on the Partnership's equity. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Net income attributable to SunCoke Energy Partners, L.P. $ 19.5 $ 20.2 $ 49.1 $ 34.6 Increase in SunCoke Energy Partners, L.P. partnership equity for the purchase of a 75 percent interest in Granite City — — 15.1 — Increase in SunCoke Energy Partners, L.P. partnership equity for the purchase of an additional 23 percent interest in Granite City 3.7 — 3.7 — Decrease in SunCoke Energy Partners, L.P. partnership equity for the purchase of an additional 33 percent interest in Haverhill and Middletown — (170.1 ) — (170.1 ) Change from net income attributable to SunCoke Energy Partners, L.P. and dropdown transactions $ 23.2 $ (149.9 ) $ 67.9 $ (135.5 ) |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The purchase price allocation to identifiable intangible assets, which are all amortizable, along with their respective weighted-average amortization periods at the acquisition date are as follows: Weighted - Average Remaining Amortization Years (Dollars in millions) Customer contracts 7 $ 24.0 Customer relationships 17 22.0 Permits 27 139.0 Total $ 185.0 |
Business Acquisition, Pro Forma Information | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions, except per unit amounts) Sales and other operating revenue $ 216.8 $ 233.4 $ 653.8 $ 692.8 Net income $ 20.3 $ 35.1 $ 55.4 $ 77.5 Net income per limited partner unit (basic and diluted) $ 0.37 $ 0.58 $ 0.95 $ 1.06 |
Cash Distributions and Net In20
Cash Distributions and Net Income Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Distributions Made to Limited Partner, by Distribution | If cash distributions to our unitholders exceed $0.474375 per unit in any quarter, our unitholders and our general partner will receive distributions according to the following percentage allocations: Total Quarterly Distribution Per Unit Target Amount Marginal Percentage Interest in Distributions Unitholders General Partner Minimum Quarterly Distribution $0.412500 98% 2% First Target Distribution above $0.412500 up to $0.474375 98% 2% Second Target Distribution above $0.474375 up to $0.515625 85% 15% Third Target Distribution above $0.515625 up to $0.618750 75% 25% Thereafter above $0.618750 50% 50% The calculation of net income allocated to the general and limited partners was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Net income attributable to SunCoke Energy L.P./Predecessor $ 19.5 $ 26.5 $ 49.7 $ 48.5 Less: Allocation of Granite City's net income to the general partner prior to the Granite City Dropdown — 6.3 0.6 13.9 Net income attributable to partners 19.5 20.2 49.1 34.6 General partner's incentive distribution rights 1.6 0.4 3.6 0.8 17.9 19.8 45.5 33.8 General partner's ownership interest 2.0 % 2.0 % 2.0 % 2.0 % General partner's allocated interest in net income 0.3 0.3 0.9 0.6 General partner's incentive distribution rights 1.6 0.4 3.6 0.8 Granite City's net income prior to the Granite City Dropdown — 6.3 0.6 13.9 Total general partner's interest in net income $ 1.9 $ 7.0 $ 5.1 $ 15.3 Common - public unitholder's interest in net income $ 7.7 $ 8.7 $ 19.3 $ 14.6 Common - SunCoke interest in net income 3.4 2.6 8.0 3.6 Subordinated - SunCoke interest in net income 6.5 8.2 17.3 15.0 Total limited partners' interest in net income $ 17.6 $ 19.5 $ 44.6 $ 33.2 Our distributions are declared subsequent to quarter end. The table below represents total cash distributions applicable to the period in which the distributions were earned: Earned in Quarter Ended Total Quarterly Distribution Per Unit Total Cash Distribution including general partners IDRs Date of Distribution Unitholders Record Date (Dollars in millions) March 31, 2014 $ 0.5000 $ 19.2 May 30, 2014 May 15, 2014 June 30, 2014 $ 0.5150 $ 19.8 August 29, 2014 August 15, 2014 September 30, 2014 $ 0.5275 $ 20.5 November 28, 2014 November 14, 2014 December 31, 2014 $ 0.5408 $ 22.2 February 27, 2015 February 13, 2015 March 31, 2015 $ 0.5715 $ 23.8 May 29, 2015 May 15, 2015 June 30, 2015 $ 0.5825 $ 29.0 August 31, 2015 August 14, 2015 September 30, 2015 (1) $ 0.5940 $ 29.6 December 1, 2015 November 13, 2015 (1) On October 9, 2015 , our Board of directors declared a cash distribution of $0.5940 per unit. It will be paid on December 1, 2015 , to unitholders of record on November 13, 2015 . |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The calculation of earnings per unit is as follows: Three Months Ended September 30, Nine months ended September 30, 2015 2014 2015 (1) 2014 (2) (Dollars and units in millions, except per unit amounts) Net income attributable to SunCoke Energy L.P./Predecessor $ 19.5 $ 26.5 $ 49.7 $ 48.5 Less: Allocation of Granite City's net income to the general partner prior to the Granite City Dropdown — 6.3 0.6 13.9 Net income attributable to partners 19.5 20.2 49.1 34.6 General partner's distributions (including, $1.6, $0.4, $3.6 and $0.8 million of incentive distribution rights, respectively) 2.0 0.7 5.2 1.8 Limited partners' distributions on common units 18.2 11.5 49.6 33.4 Limited partners' distributions on subordinated units 9.4 8.3 27.6 24.3 Distributions greater than earnings (10.1 ) (0.3 ) (33.3 ) (24.9 ) General partner's earnings: Distributions (including $1.6, $0.4, $3.6 and $0.8 million of incentive distribution rights, respectively) 2.0 0.7 5.2 1.8 Allocation of distributions greater than earnings (0.1 ) — (0.7 ) (0.4 ) Granite City's net income prior to the Granite City Dropdown — 6.3 0.6 13.9 Total general partner's earnings 1.9 7.0 5.1 15.3 Limited partners' earnings on common units: Distributions 18.2 11.5 49.6 33.4 Allocation of distributions greater than earnings (6.6 ) (0.2 ) (20.9 ) (14.2 ) Total limited partners' earnings on common units 11.6 11.3 28.7 19.2 Limited partners' earnings on subordinated units: Distributions 9.4 8.3 27.6 24.3 Allocation of distributions greater than earnings (3.4 ) (0.1 ) (11.7 ) (10.3 ) Total limited partners' earnings on subordinated units 6.0 8.2 15.9 14.0 Weighted average limited partner units outstanding: Common - basic and diluted 27.4 21.7 24.8 19.0 Subordinated - basic and diluted 15.7 15.7 15.7 15.7 Net income per limited partner unit: Common - basic and diluted $ 0.43 $ 0.52 $ 1.16 $ 1.01 Subordinated - basic and diluted $ 0.38 $ 0.52 $ 1.00 $ 0.89 (1) Includes the total cash distribution paid on August 31, 2015 of $29.0 million , which included $4.6 million related to units issued to fund the acquisition of CMT and the Granite City Supplemental Dropdown during August 2015. (2) Includes the total cash distribution paid on May 30, 2014 of $19.2 million , which included $3.0 million related to units issued to fund the Haverhill and Middletown Dropdown during May 2014. |
Schedule of Limited Partners' Capital Account by Class | Unit activity for the nine months ended September 30, 2015 : Common - Public Common - SunCoke Total Common Subordinated - SunCoke At December 31, 2014 16,789,164 4,904,752 21,693,916 15,709,697 Units issued in conjunction with the Granite City Dropdown — 1,877,697 1,877,697 — Units issued in conjunction with the Granite City Supplemental Dropdown — 1,158,760 1,158,760 — Units issued in conjunction with the acquisition of CMT 4,847,287 1,764,790 6,612,077 — Units issued to directors 3,820 — 3,820 — Unit repurchases (1) (633,776 ) — (633,776 ) — At September 30, 2015 21,006,495 9,705,999 30,712,494 15,709,697 (1) On July 20, 2015, the Partnership's Board of Directors authorized a program for the Partnership to repurchase up to $50.0 million of its common units. The Partnership repurchased $10.0 million , or 633,776 common units, in the open market, for an average price of $15.78 per unit, during the three months ended September 30, 2015, leaving $40.0 million available under the authorized unit repurchase program. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The components of inventories were as follows: September 30, 2015 December 31, 2014 (Dollars in millions) Coal $ 44.5 $ 60.4 Coke 2.4 2.0 Materials, supplies, and other 28.5 28.0 Total inventories $ 75.4 $ 90.4 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total debt, including the current portion of long-term debt, consisted of the following: September 30, 2015 December 31, 2014 (Dollars in millions) 7.375% senior notes, due 2020 ("Partnership Notes"), including original issue premium of $13.6 million and $11.5 million at September 30, 2015 and December 31, 2014, respectively. 613.6 411.5 7.625% senior notes, due 2019 ("Notes") 44.6 — Promissory note payable, due 2021 ("Promissory Note") 114.6 — Revolving credit facility, due 2019 ("Partnership Revolver") 185.0 — Debt issuance cost (16.9 ) (12.5 ) Total debt $ 940.9 $ 399.0 Less: current portion of long-term debt 1.1 — Total long-term debt $ 939.8 $ 399.0 |
Supplemental Cash Flow Inform23
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Significant non-cash activities were as follows: Nine Months Ended September 30, 2015 2014 (Dollars in millions) Debt assumed by SunCoke Energy Partners, L.P. $ 294.5 $ 259.9 Equity Issuances 144.4 83.3 Net assets of the Predecessor not assumed by SunCoke Energy Partners, L.P. Receivables 9.1 — Property, plant and equipment 7.0 — Net deferred tax assets 62.8 — Restricted Cash 21.5 — |
Business Segment Disclosures (T
Business Segment Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table includes Adjusted EBITDA, which is the measure of segment profit or loss reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Sales and other operating revenue: Domestic Coke $ 192.4 $ 204.8 $ 581.1 $ 611.7 Coal Logistics 17.8 12.0 40.0 37.4 Coal Logistics intersegment sales 1.7 1.6 5.0 4.3 Elimination of intersegment sales (1.7 ) (1.6 ) (5.0 ) (4.3 ) Total sales and other operating revenue $ 210.2 $ 216.8 $ 621.1 $ 649.1 Adjusted EBITDA: Domestic Coke $ 46.6 $ 50.2 $ 137.3 $ 137.3 Coal Logistics 10.4 3.8 18.0 10.9 Corporate and Other (5.2 ) (1.5 ) (10.5 ) (5.7 ) Total Adjusted EBITDA $ 51.8 $ 52.5 $ 144.8 $ 142.5 Depreciation and amortization expense: Domestic Coke $ 13.5 $ 11.7 $ 39.8 $ 34.7 Coal Logistics 3.5 2.0 7.2 5.6 Total depreciation and amortization expense $ 17.0 $ 13.7 $ 47.0 $ 40.3 Capital expenditures: Domestic Coke $ 14.7 $ 19.4 $ 30.4 $ 55.0 Coal Logistics 0.8 1.2 1.3 2.0 Total capital expenditures $ 15.5 $ 20.6 $ 31.7 $ 57.0 The following table sets forth the Partnership’s total sales and other operating revenue by product or service, excluding intersegment revenues: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Sales and other operating revenue: Cokemaking revenues $ 176.9 $ 188.7 $ 534.0 $ 562.1 Energy revenues 15.5 16.2 47.0 49.6 Coal logistics revenues 17.2 11.6 38.7 35.8 Other revenues 0.6 0.3 1.4 1.6 Total revenues $ 210.2 $ 216.8 $ 621.1 $ 649.1 The following table sets forth the Company's segment assets: September 30, 2015 December 31, 2014 (Dollars in millions) Segment assets: Domestic Coke $ 1,277.4 $ 1,276.3 Coal Logistics 533.4 116.6 Corporate and Other 3.6 2.5 Segment assets, excluding deferred tax assets 1,814.4 1,395.4 Deferred tax assets — 21.6 Total assets $ 1,814.4 $ 1,417.0 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Below is a reconciliation of Adjusted EBITDA (unaudited) to net income and net cash provided by operating activities, which are its most directly comparable financial measures calculated and presented in accordance with GAAP: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in millions) Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 49.9 $ 37.6 $ 135.8 $ 92.0 Add: Adjusted EBITDA attributable to Predecessor (1) — 14.2 1.5 31.6 Add: Adjusted EBITDA attributable to noncontrolling interest (2) 1.9 0.7 7.5 18.9 Adjusted EBITDA $ 51.8 $ 52.5 $ 144.8 $ 142.5 Subtract: Depreciation and amortization expense 17.0 13.7 47.0 40.3 Interest expense, net 12.4 6.8 43.8 30.1 Income tax expense (benefit) 0.5 4.9 (2.4 ) 9.0 Sales discounts provided to customers due to sharing of nonconventional fuel tax credits (3) — — — (0.5 ) Coal Logistics deferred revenue (4) 1.1 — 1.1 — Net income $ 20.8 $ 27.1 $ 55.3 $ 63.6 Add: Depreciation and amortization expense 17.0 13.7 47.0 40.3 Loss on extinguishment of debt — — 9.4 15.4 Changes in working capital and other (22.1 ) (6.3 ) (23.5 ) (32.7 ) Net cash provided by operating activities $ 15.7 $ 34.5 $ 88.2 $ 86.6 (1) Reflects Granite City Adjusted EBITDA prior to the January 13, 2015 dropdown transaction. (2) Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest share of interest, taxes, income, and depreciation. (3) Sales discounts are related to nonconventional fuel tax credits, which expired in 2013. At December 31, 2013 , we had $13.6 million accrued related to sales discounts to be paid to our Granite City customer. During first quarter of 2014, we settled this obligation for $13.1 million which resulted in a gain of $0.5 million . This gain is recorded in sales and other operating revenue on our Combined and Consolidated Statements of Income. (4) Coal Logistics deferred revenue represents revenue excluded from sales and other operating income for GAAP purposes related to the timing of revenue recognition on the Coal Logistics take-or-pay contracts. Including take-or-pay shortfalls within Adjusted EBITDA matches cash flows with Adjusted EBITDA. |
General (Details)
General (Details) - Cokemaking_facility | 9 Months Ended | |||
Sep. 30, 2015 | Aug. 12, 2015 | Jan. 13, 2015 | May. 08, 2014 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Number of cokemaking facilities | 3 | |||
SunCoke Energy Inc | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Interest in partnership (as a percent) | 53.70% | 53.40% | ||
Limited Partnership (LP) ownership interest (as a percent) | 2.00% | |||
Gateway Energy and Coal Company, LLC | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Interest acquired (as a percent) | 23.00% | 75.00% | ||
Haverhill Coke Company LLC and Middletown Coke Company LLC | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Interest in partnership (as a percent) | 98.00% | 65.00% |
Acquisitions - Covent Marine Te
Acquisitions - Covent Marine Terminal (Details) $ / shares in Units, shares in Millions, T in Millions, $ in Millions | Aug. 12, 2015USD ($)Tshares | Jan. 13, 2015USD ($)shares | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||||
Cash consideration | $ 193.1 | $ 0 | ||||||
Proceeds from revolving credit facility | 185 | 40 | ||||||
Capital contributions from SunCoke Energy Partners GP LLC | 2.3 | 0.3 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||||
Goodwill | $ 69.1 | $ 69.1 | 69.1 | $ 8.2 | ||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||
Deferred revenue | (1.1) | $ 0 | (1.1) | 0 | ||||
Partnership Revolver Due 2019 | Revolving Credit Facility | Line of Credit | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from revolving credit facility | $ 185 | |||||||
Convent Marine Terminal | Take-or-pay contracts | ||||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||
Deferred revenue | $ 5.1 | 2.6 | ||||||
SunCoke Energy Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Limited Partnership (LP) ownership interest (as a percent) | 2.00% | |||||||
Common units | ||||||||
Business Acquisition [Line Items] | ||||||||
Stock issued, shares | shares | 1.2 | 1.9 | ||||||
Stock issued, value | $ 17.9 | $ 50.1 | ||||||
Common units | Sale of Partnership Units | SunCoke Energy Inc | SunCoke Energy Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Stock issued, shares | shares | 1.8 | |||||||
Stock issued, value | $ 30 | |||||||
Common units | Capital Contribution | SunCoke Energy Inc | SunCoke Energy Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Capital contributions from SunCoke Energy Partners GP LLC | $ 2.3 | |||||||
Convent Marine Terminal | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest acquired (as a percent) | 100.00% | |||||||
Coal handling capacity | T | 10 | |||||||
Debt assumed | $ 114.9 | |||||||
Term of debt instrument | 6 years | |||||||
Cash consideration | $ 193.1 | |||||||
Business combination, contingent consideration | 7.9 | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||||
Receivables | 6.1 | |||||||
Inventories | 1.7 | |||||||
Other current assets | 0.1 | |||||||
Properties, plants and equipment, net | 145.1 | |||||||
Accounts payable | (0.5) | |||||||
Accrued liabilities | (7.5) | |||||||
Current portion of long-term debt | (1.1) | |||||||
Long-term debt | (113.8) | |||||||
Contingent consideration | (7.9) | |||||||
Net recognized amounts of identifiable assets acquired | 22.2 | |||||||
Intangible assets | 185 | |||||||
Goodwill | 60.9 | |||||||
Total assets acquired, net of liabilities assumed | 268.1 | |||||||
Debt assumed | 114.9 | |||||||
Cash withheld to fund capital expenditures | 21.5 | |||||||
Total fair value of consideration transferred | 404.5 | |||||||
Business Combination, Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Abstract] | ||||||||
Finite-lived intangible assets acquired | $ 185 | |||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||
Revenue from acquisition to period end | 5.7 | |||||||
Operating income from acquisition to period end | $ 2.6 | |||||||
Sales and other operating revenue | 216.8 | 233.4 | $ 653.8 | 692.8 | ||||
Net income | $ 20.3 | $ 35.1 | $ 55.4 | $ 77.5 | ||||
Convent Marine Terminal | Customer contracts | ||||||||
Business Combination, Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Abstract] | ||||||||
Weighted - Average Remaining Amortization Years | 7 years | |||||||
Finite-lived intangible assets acquired | $ 24 | |||||||
Convent Marine Terminal | Customer relationships | ||||||||
Business Combination, Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Abstract] | ||||||||
Weighted - Average Remaining Amortization Years | 17 years | |||||||
Finite-lived intangible assets acquired | $ 22 | |||||||
Convent Marine Terminal | Permits | ||||||||
Business Combination, Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Abstract] | ||||||||
Weighted - Average Remaining Amortization Years | 27 years | |||||||
Finite-lived intangible assets acquired | $ 139 | |||||||
Convent Marine Terminal | Restricted Cash | ||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||||
Cash withheld to fund capital expenditures | $ 21.5 | |||||||
Convent Marine Terminal | Common units | ||||||||
Business Acquisition [Line Items] | ||||||||
Stock issued, shares | shares | 4.8 | |||||||
Stock issued as consideration | $ 75 | |||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||
Net income per unit, basic (in USD per share) | $ / shares | $ 0.37 | $ 0.58 | $ 0.95 | $ 1.06 | ||||
Net income per unit, diluted (in USD per share) | $ / shares | $ 0.37 | $ 0.58 | $ 0.95 | $ 1.06 |
Acquisitions - Granite City Dro
Acquisitions - Granite City Dropdown (Details) T in Thousands, shares in Millions, $ in Millions | Aug. 12, 2015USD ($)shares | Jan. 13, 2015USD ($)Tshares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Repayments of long term debt | $ 149.8 | $ 276.3 | |||
Senior notes | $ 200 | ||||
Net book value | 741.3 | $ 926.7 | |||
Common | |||||
Business Acquisition [Line Items] | |||||
Stock issued, shares | shares | 1.2 | 1.9 | |||
Stock issued, value | $ 17.9 | $ 50.1 | |||
General Partner | |||||
Business Acquisition [Line Items] | |||||
Stock issued, value | $ 1 | ||||
Noncontrolling Interest | |||||
Business Acquisition [Line Items] | |||||
Allocation of parent net equity in Granite City to SunCoke Energy Partners, L.P. | 1.9 | ||||
Net book value | 15.9 | 11.1 | |||
General Partner | |||||
Business Acquisition [Line Items] | |||||
Allocation of parent net equity in Granite City to SunCoke Energy Partners, L.P. | 5.4 | ||||
Net book value | $ 13.6 | $ 9.2 | |||
Granite City | |||||
Business Acquisition [Line Items] | |||||
Net book value | $ 66 | ||||
SunCoke Energy Inc | |||||
Business Acquisition [Line Items] | |||||
Interest in partnership (as a percent) | 53.40% | 53.70% | |||
Limited Partnership (LP) ownership interest (as a percent) | 2.00% | ||||
Gateway Energy and Coal Company, LLC | |||||
Business Acquisition [Line Items] | |||||
Interest acquired (as a percent) | 23.00% | 75.00% | |||
Total fair value of consideration transferred | $ 65.2 | $ 244.4 | |||
Coal handling capacity | T | 650 | ||||
Consideration transferred, equity portion | 62.3 | $ 188.5 | |||
Consideration transferred, other | 2.9 | 55.9 | |||
Accrued interest | 0.1 | ||||
Consideration retained for anticipated remediation cost | 45 | ||||
Debt assumed | 44.6 | ||||
Sale of units | 3.7 | ||||
Gateway Energy and Coal Company, LLC | Senior Notes | |||||
Business Acquisition [Line Items] | |||||
Repayments of long term debt | 135 | ||||
Accrued interest | 1 | ||||
Interest paid | 0.5 | $ 4.6 | |||
Redemption premium | 1.7 | ||||
Gateway Energy and Coal Company, LLC | Senior Notes, Due 2020 | |||||
Business Acquisition [Line Items] | |||||
Interest rate on partnership notes (as a percent) | 7.375% | ||||
Gateway Energy and Coal Company, LLC | Noncontrolling Interest | |||||
Business Acquisition [Line Items] | |||||
Allocation of parent net equity in Granite City to SunCoke Energy Partners, L.P. | $ 67.9 | ||||
Gateway Energy and Coal Company, LLC | General Partner | |||||
Business Acquisition [Line Items] | |||||
Stock issued, value | $ 0.4 | ||||
Gateway Energy and Coal Company, LLC | Sun Coal & Coke | |||||
Business Acquisition [Line Items] | |||||
Net equity allocated | $ 203.6 | ||||
Interest held (as a percent) | 25.00% |
Acquisitions - Haverhill and Mi
Acquisitions - Haverhill and Middletown Dropdown (Details) - USD ($) shares in Millions | Jan. 13, 2015 | May. 09, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | May. 08, 2014 |
Business Acquisition [Line Items] | |||||
Adjustments to equity for the acquisition of an interest in Granite City | $ (250,800,000) | ||||
Long-term debt | 940,900,000 | $ 399,000,000 | |||
Debt issuance cost | $ 5,200,000 | ||||
General Partner | |||||
Business Acquisition [Line Items] | |||||
Adjustments to equity for the acquisition of an interest in Granite City | $ (5,100,000) | ||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | |||||
Business Acquisition [Line Items] | |||||
Interest acquired (as a percent) | 33.00% | ||||
Total fair value of consideration transferred | $ 365,000,000 | ||||
Increase (decrease) in partnership equity | (170,100,000) | ||||
Consideration retained for anticipated remediation cost | 7,000,000 | ||||
Proceeds from issuance of private placement | 263,100,000 | ||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | Senior Notes, Due 2020 | |||||
Business Acquisition [Line Items] | |||||
Long-term debt | 250,000,000 | ||||
Debt issuance cost | 4,900,000 | ||||
Debt issuance cost immediately expensed | 900,000 | ||||
Proceeds to fund interest | 5,000,000 | ||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | Noncontrolling Interest | |||||
Business Acquisition [Line Items] | |||||
Adjustments to equity for the acquisition of an interest in Granite City | $ (171,300,000) | ||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | Common | |||||
Business Acquisition [Line Items] | |||||
Consideration, shares issued | 2.7 | ||||
Private placement equity issued | $ 80,000,000 | ||||
Gross proceeds from the offering | $ 88,700,000 | ||||
Common units issued during the period (in shares) | 3.2 | ||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | General Partner | |||||
Business Acquisition [Line Items] | |||||
Private placement equity issued | $ 3,300,000 | ||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | Sun Coal & Coke | |||||
Business Acquisition [Line Items] | |||||
Interest in partnership (as a percent) | 54.10% | ||||
Interest held (as a percent) | 2.00% | 35.00% | |||
Haverhill Coke Company LLC and Middletown Coke Company LLC | SunCoke Energy Inc | |||||
Business Acquisition [Line Items] | |||||
Cash paid to SunCoke | $ 3,400,000 | ||||
Debt and other liabilities assumed | 271,300,000 | ||||
Estimated market premium | $ 11,400,000 | ||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | |||||
Business Acquisition [Line Items] | |||||
Interest in partnership (as a percent) | 98.00% | 65.00% |
Acquisitions - Changes in Partn
Acquisitions - Changes in Partnership's Ownership Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Aug. 12, 2015 | Jan. 13, 2015 | May. 09, 2014 | |
Noncontrolling Interest [Line Items] | |||||||
Net income attributable to SunCoke Energy Partners, L.P. | $ 19.5 | $ 26.5 | $ 49.7 | $ 48.5 | |||
Change from net income attributable to SunCoke Energy Partners, L.P. and dropdown transactions | 23.2 | (149.9) | 67.9 | (135.5) | |||
Selling, General and Administrative Expenses | |||||||
Noncontrolling Interest [Line Items] | |||||||
Acquisition and business development costs | 2.2 | 2.6 | |||||
Gateway Energy and Coal Company, LLC | |||||||
Noncontrolling Interest [Line Items] | |||||||
Increase in SunCoke Energy Partners, L.P. partnership equity for the purchase of a 75 percent interest in Granite City | 0 | 0 | 15.1 | 0 | |||
Increase in SunCoke Energy Partners, L.P. partnership equity for the purchase of an additional 23 percent interest in Granite City | (3.7) | 0 | (3.7) | 0 | |||
Interest acquired (as a percent) | 23.00% | 75.00% | |||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | |||||||
Noncontrolling Interest [Line Items] | |||||||
Decrease in SunCoke Energy Partners, L.P. partnership equity for the purchase of an additional 33 percent interest in Haverhill and Middletown | 0 | (170.1) | 0 | (170.1) | |||
Interest acquired (as a percent) | 33.00% | ||||||
Successor | |||||||
Noncontrolling Interest [Line Items] | |||||||
Net income attributable to SunCoke Energy Partners, L.P. | $ 19.5 | $ 20.2 | $ 49.1 | $ 34.6 |
Related Party Transactions an30
Related Party Transactions and Agreements (Details) - USD ($) | May. 09, 2014 | Jan. 23, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Aug. 12, 2015 | Dec. 31, 2014 | May. 08, 2014 |
Related Party Transaction [Line Items] | |||||||||
Receivables from affiliates, net | $ 1,900,000 | $ 1,900,000 | $ 3,100,000 | ||||||
Receivable from related party | $ 59,700,000 | $ 59,700,000 | $ 36,300,000 | ||||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest in partnership (as a percent) | 98.00% | 98.00% | 65.00% | ||||||
Environmental capital expenditures retained | $ 7,000,000 | ||||||||
Gateway Energy and Coal Company, LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Environmental capital expenditures retained | $ 45,000,000 | ||||||||
IPO | Haverhill Coke Company LLC and Middletown Coke Company LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Environmental capital expenditures retained | 67,000,000 | ||||||||
Environmental remediation expense carried by SunCoke Energy Partners L.P. | 5,000,000 | ||||||||
SunCoke Energy Inc | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest in partnership (as a percent) | 53.70% | 53.70% | 53.40% | ||||||
SunCoke Energy Inc | IPO | Haverhill Coke Company LLC and Middletown Coke Company LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Environmental remediation expense indemnified by SunCoke | $ 50,000,000 | ||||||||
Convent Marine Terminal | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest in partnership (as a percent) | 10.20% | ||||||||
Coke Agreement Counterparties | IPO | |||||||||
Related Party Transaction [Line Items] | |||||||||
Potential defaults by coke agreement counterparties indemnification period (in years) | 5 years | ||||||||
SunCoke Energy Inc | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchases | $ 1,300,000 | $ 10,100,000 | $ 3,900,000 | $ 27,000,000 | |||||
Allocated expenses | 6,500,000 | 6,200,000 | 19,800,000 | 17,400,000 | |||||
SunCoke Energy Inc | Coal Logistics | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 4,000,000 | $ 3,300,000 | 10,300,000 | $ 9,300,000 | |||||
Affiliated Entity | Coal Logistics | The Cline Group | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenues | 4,400,000 | 4,400,000 | |||||||
Receivable from related party | $ 4,500,000 | $ 4,500,000 |
Cash Distributions and Net In31
Cash Distributions and Net Income Per Unit Distributions Percentage Allocations (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 2.00% | 2.00% | 2.00% | 2.00% |
Total quarterly distribution per unit target amount (in dollars per share) | $ 0.474375 | |||
Minimum Quarterly Distribution | Minimum | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | $ 0.412500 | |||
Minimum Quarterly Distribution | Unitholders | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 98.00% | |||
Minimum Quarterly Distribution | General Partner | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 2.00% | |||
First Target Distribution | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | $ 0.41250 | |||
First Target Distribution | Minimum | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | 0.412500 | |||
First Target Distribution | Maximum | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | $ 0.474375 | |||
First Target Distribution | Unitholders | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 98.00% | |||
Marginal percentage interest in distributions (as a percent) | 98.00% | |||
First Target Distribution | General Partner | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 2.00% | |||
Marginal percentage interest in distributions (as a percent) | 2.00% | |||
Second Target Distribution | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | $ 0.4125 | |||
Second Target Distribution | Minimum | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | 0.474375 | |||
Second Target Distribution | Maximum | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | $ 0.515625 | |||
Second Target Distribution | Unitholders | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 98.00% | |||
Marginal percentage interest in distributions (as a percent) | 85.00% | |||
Second Target Distribution | General Partner | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 2.00% | |||
Marginal percentage interest in distributions (as a percent) | 15.00% | |||
Third Target Distribution | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | $ 0.474375 | |||
Third Target Distribution | Minimum | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | 0.515625 | |||
Third Target Distribution | Maximum | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | $ 0.618750 | |||
Third Target Distribution | Unitholders | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 98.00% | |||
Marginal percentage interest in distributions (as a percent) | 75.00% | |||
Third Target Distribution | General Partner | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 2.00% | |||
Marginal percentage interest in distributions (as a percent) | 25.00% | |||
Thereafter | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Total quarterly distribution target amount (in dollars per share) | $ 0.68175 | |||
Thereafter | Unitholders | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 50.00% | |||
Thereafter | General Partner | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Marginal percentage interest in distributions (as a percent) | 50.00% |
Cash Distributions and Net In32
Cash Distributions and Net Income Per Unit Allocation of Total Quarterly cash Distributions to General and Limited Partners (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 09, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | May. 29, 2015 | Feb. 27, 2015 | Nov. 28, 2014 | Aug. 29, 2014 | May. 30, 2014 |
Dividends Payable [Line Items] | ||||||||
Cash distributions per unit (in dollar per unit) | $ 0.5825 | $ 0.5715 | $ 0.5408 | $ 0.5275 | $ 0.5150 | $ 0.5 | ||
Cash distributions paid | $ 29 | $ 23.8 | $ 22.2 | $ 20.5 | $ 19.8 | $ 19.2 | ||
Cash distributions declared per unit (in dollars per unit) | $ 0.5940 | |||||||
Cash distributions declared | $ 29.6 | |||||||
Subsequent Event | ||||||||
Dividends Payable [Line Items] | ||||||||
Cash distributions declared per unit (in dollars per unit) | $ 0.5940 |
Cash Distributions and Net In33
Cash Distributions and Net Income Per Unit Calculation of Earnings per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Sep. 30, 2015 | Aug. 31, 2015 | May. 29, 2015 | Feb. 27, 2015 | Nov. 28, 2014 | Aug. 29, 2014 | May. 30, 2014 | Aug. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Net income attributable to partners | $ 19,500 | $ 26,500 | $ 49,700 | $ 48,500 | ||||||||
Distributions | 2,000 | 700 | 5,200 | 1,800 | ||||||||
Incentive distribution rights | 75,000 | |||||||||||
Limited partner distributions | $ 29,600 | |||||||||||
Allocation of distributions (greater than) less than earnings | (10,100) | (300) | (33,300) | (24,900) | ||||||||
Net income per limited partner unit: (in dollars per share) | ||||||||||||
Cash distributions paid | $ 29,000 | $ 23,800 | $ 22,200 | $ 20,500 | $ 19,800 | $ 19,200 | ||||||
Covent Marine Terminal and Granite City | ||||||||||||
Net income per limited partner unit: (in dollars per share) | ||||||||||||
Distributions paid | $ 4,600 | |||||||||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | ||||||||||||
Net income per limited partner unit: (in dollars per share) | ||||||||||||
Distributions paid | $ 3,000 | |||||||||||
General Partner | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Distributions | 2,000 | 700 | 5,200 | 1,800 | ||||||||
Incentive distribution rights | 1,600 | 400 | 3,600 | 800 | ||||||||
Allocation of distributions (greater than) less than earnings | (100) | 0 | (700) | (400) | ||||||||
Partner earnings | 1,900 | 7,000 | 5,100 | 15,300 | ||||||||
Limited partners' distributions | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Distributions | 18,200 | 11,500 | 49,600 | 33,400 | ||||||||
Allocation of distributions (greater than) less than earnings | (6,600) | (200) | (20,900) | (14,200) | ||||||||
Partner earnings | 11,600 | 11,300 | 28,700 | 19,200 | ||||||||
Limited Partner Subordinated | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Distributions | 9,400 | 8,300 | 27,600 | 24,300 | ||||||||
Allocation of distributions (greater than) less than earnings | (3,400) | (100) | (11,700) | (10,300) | ||||||||
Partner earnings | 6,000 | 8,200 | 15,900 | 14,000 | ||||||||
Common | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Limited partner distributions | $ 18,200 | $ 11,500 | $ 49,600 | $ 33,400 | ||||||||
Weighted average limited partner units outstanding: (in shares) | ||||||||||||
Weighted average units outstanding (basic) (in shares) | 27.4 | 21.7 | 24.8 | 19 | ||||||||
Weighted average units outstanding (diluted) (in shares) | 27.4 | 21.7 | 24.8 | 19 | ||||||||
Net income per limited partner unit: (in dollars per share) | ||||||||||||
Net income per unit (basic) (in dollars per share) | $ 0.43 | $ 0.52 | $ 1.16 | $ 1.01 | ||||||||
Net income per unit (diluted) (in dollars per share) | $ 0.43 | $ 0.52 | $ 1.16 | $ 1.01 | ||||||||
Subordinated | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Limited partner distributions | $ 9,400 | $ 8,300 | $ 27,600 | $ 24,300 | ||||||||
Weighted average limited partner units outstanding: (in shares) | ||||||||||||
Weighted average units outstanding (basic) (in shares) | 15.7 | 15.7 | 15.7 | 15.7 | ||||||||
Weighted average units outstanding (diluted) (in shares) | 15.7 | 15.7 | 15.7 | 15.7 | ||||||||
Net income per limited partner unit: (in dollars per share) | ||||||||||||
Net income per unit (basic) (in dollars per share) | $ 0.38 | $ 0.52 | $ 1 | $ 0.89 | ||||||||
Net income per unit (diluted) (in dollars per share) | $ 0.38 | $ 0.52 | $ 1 | $ 0.89 | ||||||||
Predecessor | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Net income attributable to partners | $ 0 | $ 6,300 | $ 600 | $ 13,900 | ||||||||
Successor | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Net income attributable to partners | $ 19,500 | $ 20,200 | $ 49,100 | $ 34,600 |
Cash Distributions and Net In34
Cash Distributions and Net Income Per Unit Unit Activity (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Jul. 20, 2015 | |
Class of Stock Disclosures [Abstract] | ||
Unit repurchases | $ 10,000,000 | |
Common | ||
Limited Partners' Capital Account [Line Items] | ||
At December 31, 2014 | 21,693,916 | |
Unit repurchases | (633,776) | |
At September 30, 2015 | 30,712,494 | |
Class of Stock Disclosures [Abstract] | ||
Unit repurchase program, authorized amount | $ 50,000,000 | |
Average price per share, unit repurchases (in USD per share) | $ 15.78 | |
Unit repurchases | $ 10,000,000 | |
Unit repurchases (in shares) | 633,776 | |
Unit repurchase program, remaining authorized amount | $ 40,000,000 | |
Common | Director | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued to directors | 3,820 | |
Common | Granite City | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued in conjunction with the Granite City Dropdown | 1,877,697 | |
Adjustments to equity for the acquisition of an interest in Granite City | 1,158,760 | |
Common | Convent Marine Terminal | ||
Limited Partners' Capital Account [Line Items] | ||
Adjustments to equity for the acquisition of an interest in Granite City | 6,612,077 | |
Common | Public | ||
Limited Partners' Capital Account [Line Items] | ||
At December 31, 2014 | 16,789,164 | |
Unit repurchases | (633,776) | |
At September 30, 2015 | 21,006,495 | |
Class of Stock Disclosures [Abstract] | ||
Unit repurchases (in shares) | 633,776 | |
Common | Public | Director | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued to directors | 3,820 | |
Common | Public | Granite City | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued in conjunction with the Granite City Dropdown | 0 | |
Adjustments to equity for the acquisition of an interest in Granite City | 0 | |
Common | Public | Convent Marine Terminal | ||
Limited Partners' Capital Account [Line Items] | ||
Adjustments to equity for the acquisition of an interest in Granite City | 4,847,287 | |
Common Units - Parent | SunCoke Energy Inc | ||
Limited Partners' Capital Account [Line Items] | ||
At December 31, 2014 | 4,904,752 | |
Unit repurchases | 0 | |
At September 30, 2015 | 9,705,999 | |
Class of Stock Disclosures [Abstract] | ||
Unit repurchases (in shares) | 0 | |
Common Units - Parent | SunCoke Energy Inc | Director | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued to directors | 0 | |
Common Units - Parent | SunCoke Energy Inc | Granite City | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued in conjunction with the Granite City Dropdown | 1,877,697 | |
Adjustments to equity for the acquisition of an interest in Granite City | 1,158,760 | |
Common Units - Parent | SunCoke Energy Inc | Convent Marine Terminal | ||
Limited Partners' Capital Account [Line Items] | ||
Adjustments to equity for the acquisition of an interest in Granite City | 1,764,790 | |
Subordinated | SunCoke Energy Inc | ||
Limited Partners' Capital Account [Line Items] | ||
At December 31, 2014 | 15,709,697 | |
Unit repurchases | 0 | |
At September 30, 2015 | 15,709,697 | |
Class of Stock Disclosures [Abstract] | ||
Unit repurchases (in shares) | 0 | |
Subordinated | SunCoke Energy Inc | Director | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued to directors | 0 | |
Subordinated | SunCoke Energy Inc | Granite City | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued in conjunction with the Granite City Dropdown | 0 | |
Adjustments to equity for the acquisition of an interest in Granite City | 0 | |
Subordinated | SunCoke Energy Inc | Convent Marine Terminal | ||
Limited Partners' Capital Account [Line Items] | ||
Adjustments to equity for the acquisition of an interest in Granite City | 0 |
Cash Distributions and Net In35
Cash Distributions and Net Income Per Unit Allocation of Net Income (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Allocation to general partner (as a percent) | 100.00% |
Cash Distributions and Net In36
Cash Distributions and Net Income Per Unit Calculation of Net Income Allocated to the General and Limited Partners (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to partners | $ 19.5 | $ 26.5 | $ 49.7 | $ 48.5 |
Net income available to partners | $ 17.9 | $ 19.8 | $ 45.5 | $ 33.8 |
Marginal percentage interest in distributions (as a percent) | 2.00% | 2.00% | 2.00% | 2.00% |
General partner's interest in net income | $ 1.9 | $ 7 | $ 5.1 | $ 15.3 |
Limited partners' interest in net income | 17.6 | 19.5 | 44.6 | 33.2 |
General Partner | June 30, 2014 | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
General partner's incentive distribution rights | 1.6 | 0.4 | 3.6 | 0.8 |
General partner's interest in net income | 1.6 | 0.4 | 3.6 | 0.8 |
General Partner | Allocated Interest | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
General partner's interest in net income | 0.3 | 0.3 | 0.9 | 0.6 |
Limited Partner | Common Units - Public | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Limited partners' interest in net income | 7.7 | 8.7 | 19.3 | 14.6 |
Limited Partner | Common Units - Parent | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Limited partners' interest in net income | 3.4 | 2.6 | 8 | 3.6 |
Limited Partner | Subordinated | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Limited partners' interest in net income | 6.5 | 8.2 | 17.3 | 15 |
Predecessor | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to partners | 0 | 6.3 | 0.6 | 13.9 |
General partner's interest in net income | 0 | 6.3 | 0.6 | 13.9 |
Successor | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to partners | $ 19.5 | $ 20.2 | $ 49.1 | $ 34.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Coal | $ 44.5 | $ 60.4 |
Coke | 2.4 | 2 |
Materials, supplies, and other | 28.5 | 28 |
Total inventories | $ 75.4 | $ 90.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax, Components of Income Tax Expense (Benefit [Line Items] | ||||
Income tax expense (benefit) | $ 0.5 | $ 4.9 | $ (2.4) | $ 9 |
Gateway Energy and Coal Company, LLC | ||||
Income Tax, Components of Income Tax Expense (Benefit [Line Items] | ||||
Equity settlement amount | 62.8 | |||
Sun Coal & Coke | Gateway Energy and Coal Company, LLC | ||||
Income Tax, Components of Income Tax Expense (Benefit [Line Items] | ||||
Income tax expense (benefit) | $ (4) |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Aug. 12, 2015 | Jan. 13, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 957.8 | |||
Debt issuance costs | (16.9) | $ (12.5) | ||
Long-term debt | 940.9 | 399 | ||
Original issue premium | $ 4 | |||
Current portion of long-term debt | 1.1 | 0 | ||
Long-term debt | 939.8 | 399 | ||
Senior Notes | Senior Notes, Due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 613.6 | 411.5 | ||
Original issue premium | $ 13.6 | 11.5 | ||
Interest rate on partnership notes (as a percent) | 7.375% | |||
Senior Notes | Senior Notes, Due 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 44.6 | 0 | ||
Interest rate on partnership notes (as a percent) | 7.625% | |||
Senior Notes | Promissory Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 114.6 | 0 | ||
Line of Credit | Partnership Revolver Due 2019 | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 185 | $ 185 | $ 0 |
Debt (Details)
Debt (Details) | Aug. 12, 2018USD ($) | Sep. 30, 2015USD ($) | Aug. 12, 2015USD ($) | Jan. 13, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Aug. 12, 2019 | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 957,800,000 | $ 957,800,000 | $ 957,800,000 | ||||||
Senior notes | $ 200,000,000 | ||||||||
Proceeds from issuance of debt | 204,000,000 | ||||||||
Original issue premium | 4,000,000 | ||||||||
Proceeds to fund interest | 6,800,000 | ||||||||
Debt issuance cost | 5,200,000 | ||||||||
Repayments of long term debt | $ 149,800,000 | $ 276,300,000 | |||||||
Interest Expense | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance cost | 1,000,000 | ||||||||
Credit Agreement and Partner Revolver | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio, maximum | 4.5 | 4.5 | 4.5 | ||||||
Contingent leverage ratio, maximum | 5 | 5 | 5 | ||||||
Contingent leverage ratio, period | 6 months | ||||||||
Contingent leverage ratio, asset acquisition limitation threshold | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||
Interest coverage ratio, Minimum | 2.5 | 2.5 | 2.5 | ||||||
Cross default debt threshold | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||||||
Gateway Energy and Coal Company, LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt assumed | $ 44,600,000 | ||||||||
Accrued interest | 100,000 | ||||||||
Gateway Energy and Coal Company, LLC | Senior Notes, Due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt assumed | 44,600,000 | ||||||||
Debt issuance cost | 700,000 | 2,200,000 | |||||||
Repayments of long term debt | $ 135,000,000 | ||||||||
Interest rate on partnership notes (as a percent) | 7.625% | ||||||||
Interest paid | 500,000 | $ 5,600,000 | |||||||
Estimated market premium | 7,700,000 | ||||||||
Accrued interest | 600,000 | ||||||||
Gateway Energy and Coal Company, LLC | Senior Notes, Due 2019 | Interest Expense | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance cost | $ 700,000 | ||||||||
Convent Marine Terminal | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt assumed | 114,900,000 | ||||||||
Debt assumed | 114,900,000 | ||||||||
Convent Marine Terminal | Raven Energy LLC Promissory Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt assumed | 114,900,000 | ||||||||
Quarterly principal payments due | $ 300,000 | ||||||||
Interest rate on partnership notes (as a percent) | 6.00% | ||||||||
Convent Marine Terminal | Raven Energy LLC Promissory Note | Convent Marine Terminal | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio, maximum | 5 | ||||||||
Fixed charge coverage ratio, minimum | 1 | ||||||||
Convent Marine Terminal | Raven Energy LLC Promissory Note | Forecast | |||||||||
Debt Instrument [Line Items] | |||||||||
Quarterly principal payments due | $ 2,500,000 | ||||||||
Convent Marine Terminal | Raven Energy LLC Promissory Note | Forecast | Convent Marine Terminal | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio, maximum | 4.5 | ||||||||
Convent Marine Terminal | Raven Energy LLC Promissory Note | LIBOR | Forecast | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 4.50% | ||||||||
Revolving Credit Facility | Partnership Revolver Due 2019 | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | 250,000,000 | 250,000,000 | 250,000,000 | ||||||
Long-term debt, gross | 185,000,000 | $ 185,000,000 | 185,000,000 | 185,000,000 | $ 0 | ||||
Remaining borrowing capacity | $ 65,000,000 | 65,000,000 | $ 65,000,000 | ||||||
Debt issuance costs | $ 300,000 | ||||||||
Revolving Credit Facility | Partnership Revolver Due 2019 | Line of Credit | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.50% |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Debt assumed by SunCoke Energy Partners, L.P. | $ 294.5 | $ 259.9 |
Equity Issuances | 144.4 | 83.3 |
Net assets of the Predecessor not assumed by SunCoke Energy Partners, L.P. | ||
Receivables | 9.1 | 0 |
Property, plant and equipment | 7 | 0 |
Net deferred tax assets | 62.8 | 0 |
Restricted Cash | $ 21.5 | $ 0 |
Commitments and Contingent Li42
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
Loss Contingencies [Line Items] | ||
Cost of capital projects | $ 81 | |
Haverhill Coke Company LLC and Middletown Coke Company LLC | IPO | ||
Loss Contingencies [Line Items] | ||
Environmental capital expenditures retained | 119 | |
Haverhill and Granite City | ||
Loss Contingencies [Line Items] | ||
Payments for legal settlements | $ 2.2 | |
Haverhill and Granite City | Predecessor | ||
Loss Contingencies [Line Items] | ||
Cost of capital projects | $ 7 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Aug. 12, 2015 |
Business Acquisition [Line Items] | ||
Estimated fair value of the Partnership's long-term debt | $ 890.9 | |
Carrying value of Partnership's long-term debt | $ 957.8 | |
Convent Marine Terminal | ||
Business Acquisition [Line Items] | ||
Business combination, contingent consideration | $ 7.9 |
Business Segment Disclosures -
Business Segment Disclosures - Revenues, Expenses and Assets by Segment (Details) T in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)T | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenue | $ 210.2 | $ 216.8 | $ 621.1 | $ 649.1 | |
Adjusted EBITDA | 51.8 | 52.5 | 144.8 | 142.5 | |
Other Depreciation and Amortization | 17 | 13.7 | 47 | 40.3 | |
Capital Expenditure | 15.5 | 20.6 | 31.7 | 57 | |
Segment assets, excluding deferred tax assets | 1,814.4 | 1,814.4 | $ 1,395.4 | ||
Deferred tax assets | 0 | 0 | 21.6 | ||
Total assets | 1,814.4 | 1,814.4 | 1,417 | ||
Domestic Coke | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted EBITDA | 46.6 | 50.2 | 137.3 | 137.3 | |
Other Depreciation and Amortization | 13.5 | 11.7 | 39.8 | 34.7 | |
Capital Expenditure | 14.7 | 19.4 | 30.4 | 55 | |
Segment assets, excluding deferred tax assets | 1,277.4 | $ 1,277.4 | 1,276.3 | ||
Coal Logistics | |||||
Segment Reporting Information [Line Items] | |||||
Coal handling capacity | T | 40 | ||||
Adjusted EBITDA | 10.4 | 3.8 | $ 18 | 10.9 | |
Other Depreciation and Amortization | 3.5 | 2 | 7.2 | 5.6 | |
Capital Expenditure | 0.8 | 1.2 | 1.3 | 2 | |
Segment assets, excluding deferred tax assets | 533.4 | 533.4 | 116.6 | ||
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted EBITDA | (5.2) | (1.5) | (10.5) | (5.7) | |
Segment assets, excluding deferred tax assets | 3.6 | 3.6 | $ 2.5 | ||
Operating Segments | Domestic Coke | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenue | 192.4 | 204.8 | 581.1 | 611.7 | |
Operating Segments | Coal Logistics | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenue | 17.8 | 12 | 40 | 37.4 | |
Operating Segments | Coal Logistics intersegment sales | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenue | 1.7 | 1.6 | 5 | 4.3 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenue | $ (1.7) | $ (1.6) | $ (5) | $ (4.3) |
Business Segment Disclosures 45
Business Segment Disclosures - Revenues by Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 210.2 | $ 216.8 | $ 621.1 | $ 649.1 |
Cokemaking revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 176.9 | 188.7 | 534 | 562.1 |
Energy revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 15.5 | 16.2 | 47 | 49.6 |
Coal logistics revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 17.2 | 11.6 | 38.7 | 35.8 |
Other revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0.6 | $ 0.3 | $ 1.4 | $ 1.6 |
Business Segment Disclosures 46
Business Segment Disclosures - Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | $ 51.8 | $ 52.5 | $ 144.8 | $ 142.5 | ||
Depreciation and amortization | 17 | 13.7 | 47 | 40.3 | ||
Interest expense, net | 12.4 | 6.8 | 43.8 | 30.1 | ||
Income tax expense (benefit) | 0.5 | 4.9 | (2.4) | 9 | ||
Sales discounts provided to customers due to sharing of nonconventional fuel tax credits | 0 | 0 | 0 | (0.5) | ||
Coal Logistics deferred revenue | 1.1 | 0 | 1.1 | 0 | ||
Net income | 20.8 | 27.1 | 55.3 | 63.6 | ||
Loss on debt extinguishment | 0 | 0 | 9.4 | 15.4 | ||
Changes in working capital and other | (22.1) | (6.3) | (23.5) | (32.7) | ||
Net cash provided by operating activities | 15.7 | 34.5 | 88.2 | 86.6 | ||
Granite City | ||||||
Segment Reporting Information [Line Items] | ||||||
Accrual for sales discount | $ 13.6 | |||||
Settlement of accrued sales discounts | $ 13.1 | |||||
Gain on settlement of accrued sales discounts | $ 0.5 | |||||
Suncoke Energy Partners, L.P. / Predecessor | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | 49.9 | 37.6 | 135.8 | 92 | ||
Predecessor | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | 0 | 14.2 | 1.5 | 31.6 | ||
Noncontrolling Interest | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | $ 1.9 | $ 0.7 | 7.5 | $ 18.9 | ||
Net income | $ 5.6 |