SXC - Earnings call transcript Q4 2021

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Operator

Good morning. My name is Chris and I'll be your conference operator today. At this time, I'd like to welcome everyone to the SunCoke Energy's Fourth Quarter 2021 Earnings Call. All lines have been place on mute to prevent any background noise. After the speaker remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator President Relations Vice Treasurer. of Agrawal, and Investor Shantanu

You may begin.

Shantanu Agrawal

year morning. Good Energy's for full Mike well Rippey, And Officer. today joining Chief With Chris. XXXX fourth results guidance. as us and President SunCoke you is discuss thank Thanks, me as to this quarter Executive and XXXX morning

replay later Following management's is the of webcast reach If on live open Relations website being Investor questions get Relations our Q&A. to section team. available free to out for today, on prepared call remarks, will and don't we the our a to the today. please we'll call This be Investor your conference feel call

make today's The SEC the Before I'll forward-looking Mike. financial to you our reconciliations as let to I our our the remarks apply today's filings remind With These cautionary on we on statements things expectations in available me Mike, over over constitute documents forward-looking regarding to website language call turn future things make discussed regarding call. statements. various non-GAAP turn on are to that today. measures remarks now we that,

Mike Rippey

Thanks, Shantanu. joining we on and discuss few review will for detail, SunCoke want you Good in thank I Today, turn quarter And highlights. call. to full a to and Energy's fourth results. before Shantanu, who all announced year today's I us over morning it the results

dedication guidance SunCoke X, team commitment the out perspective, SunCoke's of the taken employees visible Let results our only million. me contributions how we their delivered because and to million financial revised million record a not you range our year $XXX.X We $XXX exceeding what first set company. transforming key performed also the adjusted of the for operational an Slide history, safety clearly from of by but historic initiatives XXXX highest has EBITDA we SunCoke, and in against The towards have for of of start all our thanking is through objectives. that $XXX in and we steps been can these On our results. see excellence in financial

million free also on above guidance fleet Domestic and and markets. million million. was generated to We our at cash behind in flow, our a operated commercial our scale. year the first entering $XXX we $XX foundry markets of full that coke Coke into Additionally, entry $XXX these driver range main the our was new capacity This was export revised of successful which

are in our developed We are we high and well the products extremely strong We pleased with customer achieved. quality relationships received success both markets.

and operational commodity these combined provided environment technical enter markets. Our expertise to an a strong excellent opportunity with market

export increase and We in expect participation to our coke both further foundry markets in XXXX. the

Steel coke Algoma beginning contract a we blast providing take-or-pay year, signed of sales supply per five an portion agreement five-year furnace un-contracted to further average the Additionally, this along with next tons This years for volume new addresses Coke the of tons customer with diversification. XXX,XXX a year.

with begin to this working new excited are customer. We

debt in $XX of free capital company's significantly gross toward The $XX of maturities. million our reduce debt and debt matching structure are structure, operating allocation XXXX is debt the cash the million. savings from rate extending an a approximately annual we significant to in a on debt progress interest by basis. our we our plants. flow perspective, step successfully refinancing From the capital with SunCoke's our Looking reducing at excess resulting refinanced refinancing on cost The capital deployed

Shantanu turn With detail. earnings full our over year $XX a returned it shareholders we per and annual and in to to dividend dividend share Shantanu? million XXXX. that, continue our to Additionally, $X.XX this fourth to anticipate review paying I'll quarter in

Shantanu Agrawal

Thanks, Mike.

per $X.XX quarter fourth the SXC XXXX. was versus the up share Turning to now quarter X, Slide income $X.XX net of fourth to attributable

full exchange was supply XXXX on quarter EBITDA per by operating $X.XX resulting million as - markets, absence full for driven higher with refinancing. strengthened by a million year share contracts XXXX relief for in Consolidated XXXX. existing $X.XX up by recorded full debt results XXXX SXC the strong customers increase fourth adjusted both adjusted versus On versus businesses, quarter million net extinguishment provided year of up the $XX.X of up full the and year versus $XXX.X million, XXXX. connection the coke was logistics offset to expense to was $XX.X mainly driven as loss EBITDA were partially of Our coal volumes and in year and across well The certain attributable income from steel $XX.X lower in XXXX. interest basis, delivered fourth extending

Turning successful in strong to coke discuss and year-over-year the adjusted X results delivered driven our by entry EBITDA detail, in business mainly to Slide variance financial the export foundry core markets. and participation

a relief driven Domestic fully Brazil, higher adjusted price adjusted operations above increase the at by supply and year customers our $XXX.X higher EBITDA million, revised the The to guidance, coke significant delivered adjusted product Logistics increased delivered a CMT. $XX extensions. million. of year of of exchange EBITDA including was due new contract to year-over-year, volume We last addition approximately our million in which realizations throughput EBITDA Coke segment segments absence full of provided $XXX.X for certain in Coke also year-over-year, Domestic saw volumes, well

a million. full strong $XX.X backdrop year Logistics EBITDA the adjusted market, of segment of commodity delivered the With

Finally, and performance company. foundry across employee-related expenses offset segments, all Overall, by pleased our corporate are a we partially expense, higher liability year R&D were historic the in with by $XX.X lower resulting were which year-over-year, lower expenses. the of mainly very to other million related expense due legacy for and absence non-cash

and million. capital $XXX This to in revised strong Turning of was operating robust during the our XXXX progress labor allowed capital to initiatives. make supply above $XXX generation generated year work approximately us issues. cash Slide of CapEx million, availability $XX guidance a X capital very million above was $XXX chain forward flow pulled full to we discuss XXXX, cash good guidance flow deployment as to of to in deployment revised approximately on we our which range year million manage some

will XXXX you pulling compared in significantly later lower and approximately labor as of the $XX capital million as forward at both as to is be on our see takes to account costs. inflation XXXX expenditure slides, well on expected As and material projects the impact into

are significantly discussed refinancing debt interest The cost both As lowered balance million and We basis. $XX $XX incurred we for new on strengthened an transaction financing with issuance of of fees sheet notes, debt maturity transactions. revolver. our debt. the million the the execution secured excess quarter an our This of second from refinancing the annual extension profile senior approximately our our resulting of in call, rate as in of savings extended

we outstanding senior of We brought by reduced the Year-over-year, to ton, as revolver we the leverage with Along the refinancing as a XXXX. than our lowering $XX expect debt also paid work our deleveraging also part and to $XX ratio transaction. balance. more continue towards our the we down outstanding in million XXXX, XXXX we further notes call million as in premium refinancing, approximately by

million. dividend, was $XX XXXX million approximately X, with lower in we by expectation Slide of XXXX we setting exports of shareholders expect progress be continued allocation XXXX, assumption annual by I realization of capital in $XX cash our EBITDA XXXX. driven strong price about approximately Let's Coke of turn cash Domestic a share adjusted million. $XXX In stage use against the is would now lower to a balance $X.XX and between a XXXX, ended EBITDA to our in We and guidance sales. also $XX in to gears, $XXX approximately Switching returned which expected form for $X like for liquidity per million to adjusted be million, to million of our million total, talk XXXX mainly capital to $XXX the on priorities

Our million, in due commodity coke run our we our project. coke as we $X increase required expected to the greater to adjusted rebuild facilities lower volumes export $X mainly Brazil million due EBITDA exposed are we in will to but foundry be to to risk full and which to are guidance. participation - down markets, is reflected capital at capacity, continue

the plant related coke ArcelorMittal, where the SunCoke under coke is by are and Brazil services. coke expenditures contract technological plant Brazil is reminder, by owned All an and capital a AM operating provides As paid the operating Brasil.

lower Logistics in CMT volumes are Turning $XX the be to to the lower as water year-over-year, anticipate realizations segment, well at similar to price by we costs Logistics normalized profitability year-over-year. as high to expect but XXXX. million impact $X We more expected million

liability million. is expense, $X The and other segment expense to driven insurance our normalized higher well non-cash by legacy expect to and higher we million as by change cost. year-over-year $X IT Lastly, corporate as approximately be

we to and XXXX, adjusted on million export our Moving be in to with tons approximately of $XXX million, expect coke. X.X sales and Domestic X, contract Coke which between includes foundry million Slide $XXX EBITDA

run Domestic furnace We This foundry XXX,XXX agreements export in contracted the take-or-pay the the equivalent markets. in market a expect XXXX. selling represents approximately coke increase long-term We previous both foundry in under significant year. the million tons at full and fleet to capacity X.XX and from remaining are anticipate participation tons export

As furnace do replace basis. a ton-for-ton reminder, blast export a tons on tons foundry and not

for price ton of of approximately the coke. blast a replaces to due order single book foundry in furnace tons solid is both participation export for coke drop and and example, finalized. For higher realization adjusted The differences commodity spot production by process, foundry two our is in lower EBITDA coke the in risk assumptions have markets. of year-over-year The quarter sales we as increase price first driven been XXXX and mainly

to current million the on adjusted XX, from is for APIX Moving EBITDA forward export This and Logistics $XX to realizations XXXX based and volumes curve. based coal the be price between Gulf $XX outlook Coast on million. expected thermal is expectations Slide

X of between and exported projecting million X.X XXXX. are in coal from be million to CMT We tons

tons volume Additionally, non-coal ore, of X approximately pet million such include aggregates. X.X million and iron throughputs, as estimates our coke, also to

the our coke same full two third-party volumes Logistics expect capacity year, unchanged. mainly terminals volumes year-over-year EBITDA at we domestic driven production and is did facility decrease The coal is at as factors. We remaining handle running to by in last with our approximately

has is been price index to index as futures the in be expect kicker price very so APIX and volatile near coal which coal remain is on This contract year. term. in benefit, lower expected we previous to recently, compared to Firstly, based CMT XXXX the

maintain high paved and year cost the water for as another costs Overall, we from high incurred water XXXX pattern, at water resulting an an more year. no high We weather in cost year But increase we anticipate for the reached was year level way segment perspective. Logistic in Secondly, success. a last volumes XXXX. CMT normalized exceptional solid during a the at previous CMT in of anticipate continued

the again, $XXX to guidance adjusted actual view EBITDA as Moving XX, of a expect be to summary of between an historical slide we million Slide performance on provides guidance. XXXX as many summary our across metrics this million. well $XXX and Once XXXX

Our at Coke realizations. at business run similar Logistics are expected to lower volumes price year-over-year, but and

As requirement guidance, CapEx to We in call, materials. pressure in brought inflationary some CapEx our $XX which mentioned of around to wages on impacts the XXXX anticipate continue million. XXXX, spend we and XXXX to forward XXXX earlier but from we see the favorably be the capital

free million taxes, be will With into back changes. expenditures to turn capital million it account to cash interest, capital Our flow I expected taking and working between after is cash and that, Mike. $XXX cash $XXX

Mike Rippey

continued will XXXX building Thanks in Shantanu. XX, Wrapping Slide be on of the made a XXXX. progress up year we on

mind and our safety performance always organization. of is for top As operational

will Our in our against executing operating plan capital to safely continue focus XXXX. on efforts and

the a on market specifically started operations long-term of We market CMT's inflation developing the future. base, to improvement to in progress Additionally, Marine this in to part Terminal. manufacturing dynamics of asset we plans larger inflationary optimize recently made for and good a of continue CMT relates Convent dynamics. backdrop to And foundation anticipate on We'll our have opportunities minimizing as revitalizing XXXX build positive that success. with pursue our we'll become any with continue it we a continuous pressures goal face to

our meaningful this I As the call, the step of we relationships, strengthen share success a these With in base extremely are for and foundry beginning our in coke further grow of increase and new established market and markets. a success markets. long-term export XXXX, recognition we with entry to is strong the This SunCoke. our mentioned our look in pleased brand diversification in

demonstrated past, to opportunistic As a we in pursue allocation. have to balanced approach yet the continue capital we'll

our deleveraging We initiative in expect XXXX. to continue

As we further our look down revolver to bring balance.

for will remain And interest creation M&A. long-term to growth sacrifice have said before, marginal at not through understanding gains. that and looking shareholders' the both is disciplined, value organically are in as We opportunities we short-term we company for it

basis business, structure, capital make and of will reward evaluate on to to capital shareholders decisions the our our the need continue accordingly. needs We and continuous a capital allocation

Looking nearing making the for Coke we the long-term believe exit facilities SunCoke we NAFTA will is well and facilities region, SunCoke believe under safely life Domestic to our in beyond coke invest success. invested and the XXXX, and cycles the they market. which has youngest continue continue supply that end efficiently. ensure in positioned We to to is been of operate

leading are MACT by standard. recognized have outstanding EPA We technology and the performance with environmental

Our and world. cleanest in process coke the production least the is intensive carbon

historic build of and for on the our for significant excited we're go continue making the diversifying coke look meet Logistics business create and both was our to significant strengths so. and for steps value With Q&A. taken and potential to what the Year a our shareholders. making good franchises customer further have towards and New and We call opportunities base, to financial progress after do open growing total, our we'll In see that, and diversifying XXXX. further let's for product ahead to and our We targets

Operator

Thank Riley Instructions] from first is question Lucas B. with Our you. [Operator Pipes Securities.

Your line is open.

Lucas Pipes

globally. Yes, at expectations coke for so is and wanted I my in in on a prices to you bit I commodity it the EBITDA degree when conservatism ask job and look good taking in thank questions XXXX. a little business - the more much specifically decline of domestic

the on I that perspective export think margins know would sales pretty but appreciate that? attractive, Thank on could you. your be you

Mike Rippey

making you as estimate about here sit may estimate we hope Well, conservative. it obviously asking It's best it are Lucas, an We point. you're our great characterize this at question. the unknowable see We today. and as We right. as just

the out We the for sold first visibility have quarter. in first good obviously quarter we're

of pricing But second of visibility half the capability. quarter So margins in back we know selling the and on those have we year. don't well the terms the into tons were that the into

an with There's downside. is up the risk all and So estimate, on estimates. it the both

So, you're we've made hope and I right. an estimate,

Lucas Pipes

assumes half got it in what year? in the Got embedded guidance, it. that of here back in the is it, But of normalization terms the

Mike Rippey

That's correct.

Lucas Pipes

Got lower same And CMT? can be it. kicker said assume the at I for price the expectations

Mike Rippey

You're XXX% right.

Lucas Pipes

helpful. Very

Mike Rippey

we clear well up at in least visibility the first. have holding just into half, do here the see first and second, we for don't we as APIX, as visibility the not

Lucas Pipes

do estimate for have your subjective you forward with And or do you APIX? at the curve own half look the back

Mike Rippey

know, 'XX. no forward No, you runs out the we look through curve at it

with So basis? we're familiar on a daily it

Lucas Pipes

Got it, got it.

Okay no, free picture midpoint the a amount Could the and you And are nice to flow you your a use list bigger - of that. cash of for your turn maybe I generating at here of to cash? priorities guidance. appreciate that strategy,

Mike Rippey

to the to we're company. that going drive as Yes, still it our And further our nice there's balance delever down but that's progress, number to work priority. remains which priority We've one has do. been, is made revolver

maintain look the in of they our course, condition are. Beyond facilities we excellent to that

the organic pet times highest some presenting, at As I've And before, often often made enter returns investment made as in we CMT, ourselves both foundry ore the coke most we growth allow lowest times investments as certainly into evident opportunities. see level iron the of said we that's opportunities, to to modest and very the the market, well risk.

grow our business. So organically, we'll look to

very through have in we said, prudent we past, as so As beyond successfully the we'll external that, do many to many, times, way. look in done M&A, we've growth a

not and regard perspectives. technologies, industry knowledge, in growth allocation both with expertise then And to course, shareholders. our any our to have to where we look know-how growth at our price. it's know, management of industries, You and profitable It's we

is So the capital several strategy that's allocation now place years. the for same been in

Lucas Pipes

be And is would revolver to so emphasis - an down? it it, investor capital for after on is increased is paid expect it an fully returns reasonable the

Mike Rippey

to grow shareholders, return matter what and a to to of company flows. then present excess to cash are becomes then it opportunities Yes, us the

Lucas Pipes

of I appreciate your really and well Okay, luck. perspective best

Mike Rippey

Good thanks.

Operator

Our America. Matthew with next from Fields question of Bank is

Your line open. is

Matthew Fields

Algoma on the on new news the exciting everyone contracts. Hey,

detail others volume? contract a maybe price Just a type fixed - that Is fixed more little of your to that. similar on

Mike Rippey

very Yes, similar Matthew.

Matthew Fields

accretive - you diluted you it's Okay margins say would and no and or or know it is effect? domestic is to that Coke

Mike Rippey

other with - margins It's our the very consistent existing from customers. are we

Matthew Fields

that in maybe either Haverhill And supplied Okay. clarity facility your is on that more I or going its contract will [indiscernible] one Jewell coke Algoma? that's to then your so make table be summary of [ph] from X the on you think know, Haverhill which Page sense? that lot seems I slide I XX. to mean, Algoma wouldn't think It and a be is deck, is closer imply supplying the river from to actually

Mike Rippey

from Yes, we'll anticipating option have currently that coal we're supplying all the Haverhill.

Matthew Fields

be for coke of dual the Jewell? kind domestic The will Okay. of foundry continue outlets used not to your contracted and customers from export more

Mike Rippey

correct, ones mostly there some so. That's coming through there are contract

Shantanu Agrawal

know, XXX Jewell fill Haverhill know, from know, - Yes, as is that and X and on Jewell. kind those mean, the see you two Haverhill, the that where, foundry of you table, or facilities. I you out you that as cliff I come flex we could of this cliff like, from It's XXX,XXX to acts capacity export mean, Shantanu up XXX,XXX Matt our

Mike Rippey

Jewell. But all of our is foundry from coming

Shantanu Agrawal

yes. Jewell

Matthew Fields

side, cost saying of but exports that that great. you in I then got to light who maybe seems you people you. the XXXX in about things how coal you that XXXX. to kind a coal bit mentioned were logistics getting Maybe market. export kind explain you're opportunities their in guide, it Thank stronger the in expected more some taking of the high Okay, going watching little should through what the Lucas are Maybe But are you said, any than And water price guide, to they to like know, Gulf on conservatism, than coal maybe report. of there's when on that little it a the can producers like XXXX? know is kind not kicker costs you're be seems in normalize? of

Mike Rippey

We No market the XXXX. which you same, is dynamics of see experienced it's we a a strong is volumes, see in great question. continuation relatively

associated water snowpack spring abnormal, we On no rains the with the historically, the water incurred Last in Mississippi year that the quite increases water, higher and we that a the come, was when and depth River spring. season, Minnesota cost high high during melts in the incur costs.

plan my don't in that we it's coke. So happened on once something only it's history, on

So budgeted to associated the return for one season, water cost with that's point. normal we've so Spring the high

APIX The around other question point is, is pricing. the

have in for year. curve. curve of if have the And a of you for look there's We price volatility a you full the so that forward conservative that today, lot year, portion that call done at - would we assumed kicker the not certainly, but that APIX

So benefit we the haven't full APIX of receive kicker forecast that for that we'll year. the

price things cost. water APIX on, resumption two the last of the around the assumption extent yes than high that are and the it's of year. Other realization normalized kicker and as the price the very much the So going same are that,

Matthew Fields

was maybe And water of That's in XXXX and down of high in to you XXXX? little that incurred of this, what quantify maybe a drill the helpful. and bit you incur didn't that cost XXXX just kind sort

Mike Rippey

been $X It to can the back, that. year, you It but high. kind million normalized of a We water $X years that. than until say It's the of wet year. September, is higher remained to couple $X order a like higher cost. $X where be, a it call than seemed It's had million very million in the million know,

Matthew Fields

you price of were Okay would with think to half about things and maybe, that on and in of your year? logistics do what stay get same were Kind that to the what kicker back APIX, impose what, then guidance? you the the upside if

Mike Rippey

like XXXX. Probably a would lot look

Shantanu Agrawal

to we very Yes I the XXXX. away water mean, cost, high you would take similar and look

Matthew Fields

so after lastly, earlier that's to made million target net, fundamentally on comments now. that's going $XX the kind you capital balance, priority allocation what that to the you're times your $XX that reduce to revise of of kind your you back with $XXX historical think distributions take million leverage or just get you priorities? million capital lower? kind under Do to of your number which right well about under Based to And of is then going revolver to target two to what has target, going appreciate been? guidance, of leverage one structure, helpful. to all of I have about cash time kind that while below balance. Okay, the it's And been at trying for You've that's is, a you're revolver

Mike Rippey

again, of think enough, these somewhat or we're entering markets, three - or our take-or-pay the well. Well, doing And as company. take-or-pay I to contract we're new less But long-term, these of contract were the stress strongly less, you three and we've does quite times probably I risk it always markets, volumes didn't company, our all times remains profile look contracts, said unlike at it when I on change their but the less.

So I'm to these prudent enjoyed a three earnings. cyclical times at as enter and we the well success, element we'll there's but these same below comfortable that, recognize markets. plan time, remain we on new being great We've quite

Matthew Fields

me. very in from XXXX. luck Thanks Okay it much and good that's great

Mike Rippey

Thanks, it. Matthew. Appreciate

Operator

Our Martin next Company. Benchmark question is The from with Nathan

line is open. Your

Nathan Martin

and full Congrats year good questions? on the my thanks for Hey, taking morning, everybody. results

Mike Rippey

Thanks.

Nathan Martin

issues we remarks? Mike, difficult forward? wages, Is absenteeism higher maybe I combination going mentioned wondering, of down it costs prepared some availability and seeing hiring get the up your color those obviously, that your labor I and more thoughts on And of possibly to in what was Thanks. kind then supply guess chain? could those the on are specifically a COVID

Mike Rippey

struggle our company. We known attract we well don't well is to do into our company. there quite labor to No channels

companies, our our fill. all they're have it have dedication do we've workplace. exceptional as knock plants. performance absences So like to we testament when all wood the - that's on had keep a of And experienced relatively openings, of communities, We've true any the to had people straightforward safe relates spread of to in no we where really in to COVID-XX. people related But COVID

products So to and we because have COVID. our produce of had no deliver inability to,

So economy. we work, starting capital we're to We it know, of of most inflationary the resources with the really inflation side. saw perform seen regard is to to where employing that what in work. we've we're on type see, the that now, wage kind outside refer the impacts you general to our notably, capital And

During COVID, we'd we of the get capital weren't to to done do. able out that set work all

of Some that was because of contractor labor availability.

it that And our from didn't period we was activity very during were some to of looking just we want where the level a employees of much safeguard virus.

we So feel work fourth that up standpoint, we've materials. we we, we inflationary some labor planned did pressures next are very achieved which position as to year. an the availability and and and able we've as seeing in relates capital no do to were we for From it to both getting a with the And catching now in good regard ahead. quarter, -

Nathan Martin

that any CMT, all thoughts maybe guided of I issues, chain they there. that than Then XQ with had in a question tons look to just million came if about [contando] appreciate do to it labor think supply there? what Got another lower specifically related like info of any it's it

Mike Rippey

some chain it was Yes, supply issues.

get was as had the of in mines issues our coal product to with their us some had as One of customers they unable and much previous to quarter. producing one

Nathan Martin

getting or progressing, better Okay, sequentially? and you seeing still are those are those ongoing,

Mike Rippey

mine process that the bringing we in speak. back as of online They're

Nathan Martin

increase out, modeling then just you appreciate you're And just XXXX? in exactly to you pointed in finally, maybe and Thanks. more foundry it here in up what of wondering, expect and fire How talking amount much of as about markets question. that. the export kind you selling XXXX, just coke did end a guys that Got

Mike Rippey

Yes, share foundry We we a but for discuss commercial meaningful the that small regard you to we've grow the to achieved market, particularly know, that look specifics participation. and don't market share we go with market don't as specifics. into reasons, market, it's

Shantanu Agrawal

a, kind say you XXX,XXX in like of Yes, on furnace capacity equivalent I know, we that what approximately mean, we XXXX. on as Nate furnace can sold equivalent

kind in So the XXXX of we to equivalent of going increase. the are you magnitude that XXX,XXX so gives

Mike Rippey

foundry. we both The past And markets, substitution you're again out pointed has beyond increase in furnace don't rates detail I two that to but one and today, in why on and further think the blast to equivalent on properly that. those basis. appreciate Shantanu a furnace, participation give and going The

Nathan Martin

Yes, that's I Thanks for your what exactly in and I'll that, was of appreciate it guys. Shantanu XXXX. again leave I for. looking time no best there. luck

Mike Rippey

Thanks, Nathan.

Operator

is Our Blunden Karl Goldman next Sachs. with question from

is line Your open.

Karl Blunden

Hi landscape? of all could cash your doable of draw flow where it When you bit time M&A with think the good in - morning, additional an growth is potentially opportunities thanks those all makes - best sizing organic today. for Mike, comments, your a that mentioned and revolver financing opening that interest and in sense. in on to about that involve the then a and just based what see you

Mike Rippey

What company. we're of the now borrowings right on any additional require part not seeing would

Karl Blunden

Got you.

visibility locked that kind is, getting at inflation year-over-year or point you couple costs time you number cost baked you have times, much do and the was that still a a point, have of do I'm in source - you have much guess into of how a could On I specific what in at in vary? significant mentioned uncertainty? that this how

Mike Rippey

otherwise those rates, ways and Not and us for as compounding affect that in now, XXXX have, offset as in to to beyond. quite more continue were that is improve The is are become we've can drag know, the U.S. at change does But rate in. for inflation If structural I risk. you And concern that a impact more like voicing don't concern experienced how recently, of many no the there's you in inflation the find to XXXX, that become we efficient the so if a locked think, real XXXX it's impacts. there

Karl Blunden

Got you.

line was on I of XXXX. the could should some you it CapEx On term, - as CapEx normalized pulled item guess forward the your side, inflation to be that to longer by what impacted mentioned, of think maybe, some but we

this model further, it we slightly you XXXX XXXX is beyond? and Now number as got out than higher that XX, there, is for

Mike Rippey

XXish that's If for than it's, to X% adjust in know of think number. inflationary number, increases, range. rates that to kind settle a and and were X% we'd higher to inflation it assuming you I the have

Shantanu Agrawal

I XX, was our number Yes XXXX mean, right.

put mean it year, this was XX. I and we some So so forward looks obviously,

Mike longer That's in to term. think, pretty the XX I estimate So good a XX.

Karl Blunden

the So thanks very time. helpful, for much very

Operator

Our next Peter from question Advisors. Boundary with Greatrex Creek is

Your open. line is

Peter Greatrex

sort when you successful at credit bond the on rating at update whether of the rating at is markers seems the rating I with the on everybody credit interactions commentary seeing could refinancing, agencies hitting out, conversations agency so they of morning, progress obviously time It good the color and be like Hi, that and look would agencies laid helpful. I the wondering issue that happening if company. you're just the of the some with the was any they're

Shantanu Agrawal

Thanks, mean, Peter I mentioned, out. no markers regular with there them, right. you conversations laid Yes, as we And they thanks for have the have certain mean, I question. are that

from is the certain level, our down So agency. kind credit and a factors of getting one a to the obviously rating taking of of leverage better

well. credit is maintain to level rating the Now, other factor our at as of that that

questions. think I one Mike out, as in of previously So the pointed

of more or down - volumes spot of further at leverage becomes the make at more able kind are in as and have level, and and maintain driven spot our that we the to taking to you Our kind more, are market. sure know, business point we is our level, that of we

continue So good - they affirmed ratings we the have continue to have refinance, they dialogue conversation to when we and with them. pretty good

Peter Greatrex

Okay, thank you.

Operator

the remarks. we call Instructions] Rippey, have for it further I'll questions. Mr. appears [Operator to And closing no turn any that over

Mike Rippey

morning continuing joining and XXXX as Great, us to as again, in for you and through thank now into And well, this your interest focus always, these SunCoke. forward comes Look discussions thank continued we all for move you. it.

So and thanks good day. again a have

Operator

Ladies and for you participating. gentlemen, conference concludes call. this today's Thank

now may You disconnect.

SunCoke Energy (SXC) 1 Feb 222021 Q4 Earnings call transcript