Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 22, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SunCoke Energy Partners, L.P. | |
Entity Central Index Key | 1,555,538 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Common Unit Outstanding | 46,206,168 |
Combined and Consolidated State
Combined and Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Sales and other operating revenue | $ 194.5 | $ 203.3 |
Costs and operating expenses | ||
Cost of products sold and operating expenses | 134.2 | 147.4 |
Selling, general and administrative expenses | 8.4 | 7.6 |
Depreciation and amortization expense | 18.7 | 14.6 |
Total costs and operating expenses | 161.3 | 169.6 |
Operating income | 33.2 | 33.7 |
Interest expense, net | 12.5 | 11.2 |
(Gain) loss on extinguishment of debt | (20.4) | 9.4 |
Income before income tax expense | 41.1 | 13.1 |
Income tax expense (benefit) | 0.6 | (3.3) |
Net income | 40.5 | 16.4 |
Less: Net income attributable to noncontrolling interests | 0.7 | 3.2 |
Net income attributable to SunCoke Energy Partners, L.P. | 39.8 | 13.2 |
General partner's interest in net income | 10.1 | 1.8 |
Limited partners' interest in net income | 29.7 | 11.4 |
Common units | ||
Costs and operating expenses | ||
Limited partners' interest in net income | $ 29.7 | $ 11.4 |
Net income per unit (basic) (in dollars per share) | $ 0.64 | $ 0.29 |
Net income per unit (diluted) (in dollars per share) | $ 0.64 | $ 0.29 |
Weighted average units outstanding (basic) (in shares) | 46.2 | 23.3 |
Weighted average units outstanding (diluted) (in shares) | 46.2 | 23.3 |
Subordinated | ||
Costs and operating expenses | ||
Net income per unit (basic) (in dollars per share) | $ 0 | $ 0.29 |
Net income per unit (diluted) (in dollars per share) | $ 0 | $ 0.29 |
Weighted average units outstanding (basic) (in shares) | 0 | 15.7 |
Weighted average units outstanding (diluted) (in shares) | 0 | 15.7 |
Predecessor | ||
Costs and operating expenses | ||
Net income attributable to SunCoke Energy Partners, L.P. | $ 0 | $ 0.6 |
General partner's interest in net income | 0 | 0.6 |
Successor | ||
Costs and operating expenses | ||
Net income attributable to SunCoke Energy Partners, L.P. | $ 39.8 | $ 12.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 33.7 | $ 48.6 |
Receivables | 44.9 | 40 |
Receivables from affiliates, net | 0 | 1.4 |
Inventories | 73.3 | 77.1 |
Other current assets | 4.3 | 2 |
Total current assets | 156.2 | 169.1 |
Restricted cash | 10.3 | 17.7 |
Properties, plants and equipment (net of accumulated depreciation of $307.2 million and $291.1 million at March 31, 2016 and December 31, 2015, respectively) | 1,317.2 | 1,326.5 |
Goodwill | 67.1 | 67.7 |
Other intangible assets, net | 184.8 | 187.4 |
Deferred charges and other assets | 0.5 | 0.5 |
Total assets | 1,736.1 | 1,768.9 |
Liabilities and Equity | ||
Accounts payable | 50.7 | 45.3 |
Accrued liabilities | 22.7 | 12.9 |
Payable to affiliate, net | 0.8 | 0 |
Current portion of long-term debt | 1.1 | 1.1 |
Interest payable | 6.6 | 17.5 |
Total current liabilities | 81.9 | 76.8 |
Long-term debt | 841.5 | 894.5 |
Deferred income taxes | 38.3 | 38 |
Asset retirement obligations | 5.7 | 5.6 |
Other deferred credits and liabilities | 5.6 | 9 |
Total liabilities | 973 | 1,023.9 |
Equity | ||
Equity | 748.1 | 729.4 |
Noncontrolling interest | 15 | 15.6 |
Total equity | 763.1 | 745 |
Total liabilities and equity | 1,736.1 | 1,768.9 |
General Partner | ||
Equity | ||
Equity | 24.6 | 15.1 |
Total equity | 24.6 | 15.1 |
Common Units - Public | ||
Equity | ||
Equity | 304.2 | 300 |
Common Units - Parent | ||
Equity | ||
Equity | 419.3 | 211 |
Subordinated | ||
Equity | ||
Equity | $ 0 | $ 203.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 307.2 | $ 291.1 |
Common Units - Public | ||
Limited partners' capital account units issued (in units) | 20,790,472 | 20,787,744 |
Common Units - Parent | ||
Limited partners' capital account units issued (in units) | 25,415,696 | 9,705,999 |
Subordinated | ||
Limited partners' capital account units issued (in units) | 0 | 15,709,697 |
Combined and Consolidated Stat5
Combined and Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities: | ||
Net income | $ 40.5 | $ 16.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 18.7 | 14.6 |
Deferred income tax expense (benefit) | 0.3 | (3.3) |
(Gain) loss on extinguishment of debt | (20.4) | 9.4 |
Changes in working capital pertaining to operating activities: | ||
Receivables | (4.9) | (4.5) |
Receivables from affiliate, net | 2.2 | 4.7 |
Inventories | 3.8 | 6.3 |
Accounts payable | 7.6 | (2.4) |
Accrued liabilities | 8.9 | (0.9) |
Interest payable | (10.9) | (9.5) |
Other | (5.4) | (1.1) |
Net cash provided by operating activities | 40.4 | 29.7 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (8) | (5.5) |
Restricted cash | 7.4 | 0 |
Other investing activities | 0.6 | 0 |
Net cash used in investing activities | 0 | (5.5) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of long-term debt | 0 | 210.8 |
Repayment of long-term debt, including market premium | (32.9) | (149.5) |
Debt issuance costs | 0 | (4.2) |
Proceeds from revolving credit facility | 20 | 0 |
Repayment of revolving credit facility | (20) | 0 |
Distributions to unitholders (public and parent) | (29.5) | (22.2) |
Distributions to noncontrolling interest (SunCoke Energy, Inc.) | (1.3) | (0.6) |
Capital contributions from SunCoke | 8.4 | 0 |
Net cash (used in) provided by financing activities | (55.3) | 34.3 |
Net (decrease) increase in cash and cash equivalents | (14.9) | 58.5 |
Cash and cash equivalents at beginning of period | 48.6 | 33.3 |
Cash and cash equivalents at end of period | 33.7 | 91.8 |
Supplemental Disclosure of Cash Flow Information | ||
Interest paid | $ 24.3 | $ 21 |
Consolidated Statements of Equi
Consolidated Statements of Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Millions | Total | PublicCommon Units - Public | SunCoke Energy IncCommon Units - Parent | SunCoke Energy IncSubordinated | General Partner | Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2015 | $ 745 | $ 300 | $ 211 | $ 203.3 | $ 15.1 | $ 15.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Conversion of subordinated units to common units | 203.3 | (203.3) | ||||
Net income | 40.5 | 16.5 | 13.2 | 0 | 10.1 | 0.7 |
Distribution to unitholders | (29.5) | (12.3) | (15.2) | 0 | (2) | |
Distributions to noncontrolling interest | (1.3) | 0 | (1.3) | |||
Capital contribution from SunCoke | 8.4 | 7 | 1.4 | |||
Balance at end of period at Mar. 31, 2016 | $ 763.1 | $ 304.2 | $ 419.3 | $ 0 | $ 24.6 | $ 15 |
General
General | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , 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 March 31, 2016 , SunCoke, through a subsidiary, owned a 53.9 percent partnership interest in us and all of our incentive distribution rights ("IDR") and indirectly owned and controlled our general partner, which holds a 2.0 percent general partner interest in us. We also own a Coal Logistics business, which provides coal handling and/or mixing services to third-party customers as well as to our own cokemaking facilities. Our Coal Logistics business consists of Convent Marine Terminal ("CMT"), Kanawha River Terminals LLC ("KRT") and SunCoke Lake Terminal, LLC ("Lake Terminal"). 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 March 31, 2016 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 Annual Report on Form 10-K for the year ended December 31, 2015 . 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 and cash flows of Granite City (the "Previous Owner"), as a result of the January 2015 dropdown of a 75 percent interest in Granite City ("Granite City Dropdown"). New Accounting Pronouncements In April 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-10, "Revenue From Contracts With Customers (Topic 606): Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. It is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and permits early adoption on a limited basis. The Partnership is currently evaluating this ASU to determine its potential impact on the Partnership's financial condition, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. It is effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018, with early adoption permitted. The Partnership is currently evaluating this ASU to determine its potential impact on the Partnership's financial condition, results of operations, and cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. It is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, with early adoption permitted. The Partnership is currently evaluating this ASU to determine its potential impact on the Partnership's financial condition, results of operations, and cash flows. Reclassifications Certain amounts in the prior period combined and consolidated financial statements have been reclassified to conform to the current year presentation. |
Related Party Transactions and
Related Party Transactions and Agreements | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Agreements | 2. 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 mixing services to certain SunCoke cokemaking operations. During three months ended March 31, 2016 and 2015 , Coal Logistics recorded revenues derived from services provided to SunCoke’s cokemaking operations of $2.6 million and $3.0 million , respectively. The Partnership also purchased coal and other services from SunCoke and its affiliates totaling $0.1 million and $1.5 million during the three months ended March 31, 2016 and 2015 , respectively. At March 31, 2016 , net payables to SunCoke and affiliates were $0.8 million , which was recorded in payable to affiliates, net on the 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 currently owns a 10.3 percent interest in the Partnership as part of the CMT acquisition. Additionally, Murray also holds a significant interest in Foresight. Sales to Murray and Foresight accounted for $5.1 million , or 2.6 percent , of the Partnership's sales and other operating revenue and were recorded in the Coal Logistics segment for the three months ended March 31, 2016 . At March 31, 2016 , receivables from Murray and Foresight were $13.5 million , which was recorded in receivables on the Consolidated Balance Sheets, and deferred revenue for minimum volume payments was $8.7 million , which was recorded in accrued liabilities on the Consolidated Balance Sheets. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. As part of the CMT acquisition, the Partnership withheld $21.5 million in cash to fund the completion of capital improvements at CMT. The cash withheld was recorded as restricted cash on the Consolidated Balance Sheet. During the first quarter of 2016, the Partnership amended an agreement with The Cline Group, which unrestricted $6.0 million of the restricted cash and relieved any obligation of the Partnership to repay these amounts to The Cline Group. The remaining restricted cash balance as of March 31, 2016 of $10.3 million is primarily related to the new state-of-the-art ship loader, which will allow for faster coal loading onto larger ships. Additionally, the Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability from $7.9 million at December 31, 2015 to $4.2 million at March 31, 2016 , with the resulting $3.7 million gain recognized as a reduction to costs of products sold and operating expenses on the Combined and Consolidated Statements of Income during the three months ended March 31, 2016 . See Note 10 . 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 and totaled $7.0 million and $6.6 million for the three months ended March 31, 2016 and 2015 , 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 in the first quarter of 2016 for additional support provided to the CMT operations. In an effort to increase the Partnership's liquidity position for continued de-levering of its balance sheet, SunCoke provided a "reimbursement holiday" during the first quarter of 2016 on the corporate cost allocation to the Partnership, resulting in a capital contribution of $7.0 million . SunCoke also returned its IDR cash distribution of $1.4 million to the Partnership ("IDR giveback") as a capital contribution. 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 losses at the Haverhill and Middletown cokemaking facilities arising from any environmental matter discovered and identified as requiring remediation prior to the closing of the IPO. In addition, SunCoke will indemnify us for remediation losses at the Granite City cokemaking facility arising from any environmental matter discovered and identified as requiring remediation prior to the closing of the initial Granite City Dropdown. SunCoke contributed $67.0 million in partial satisfaction of this obligation from the proceeds of the IPO, and an additional $52.0 million in connection with subsequent dropdowns. 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 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. SunCoke may consider providing additional support to the Partnership in the future by providing a corporate cost reimbursement holiday, whereby the Partnership would not be required to reimburse SunCoke for costs or a deferral, whereby the Partnership would be granted extended payment terms. Additionally, we have agreed to pay all fees in connection with any future financing arrangement entered into for the purpose of replacing the credit facility or the senior 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 | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Cash Distributions and Net Income Per Unit | 3. 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, 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 $ 0.5940 $ 29.6 December 1, 2015 November 13, 2015 December 31, 2015 $ 0.5940 $ 29.5 March 1, 2016 February 15, 2016 March 31, 2016 (1) $ 0.5940 $ 29.5 June 1, 2016 May 16, 2016 (1) On April 18, 2016 , our Board of Directors declared a cash distribution of $0.5940 per unit, which will be paid on June 1, 2016 , to unitholders of record on May 16, 2016 . SunCoke has elected to provide the Partnership with deferred payment terms on the IDR cash distributions in the second quarter of 2016. 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. Upon payment of the cash distribution for the fourth quarter of 2015, the financial requirements for the conversion of all subordinated units were satisfied. As a result, the 15,709,697 subordinated units converted into common units on a one-for-one basis. For purpose of calculating net income per unit, the conversion of the subordinated units is deemed to have occurred on January 1, 2016. The conversion did not impact the amount of the cash distribution paid or the total number of the Partnership's outstanding units representing limited partner interest. The calculation of net income allocated to the general and limited partners was as follows: Three Months Ended March 31, 2016 2015 (Dollars in millions) Net income attributable to SunCoke Energy L.P./Previous Owner $ 39.8 $ 13.2 Less: Expenses allocated to Common - SunCoke (1) (7.0 ) — Less: Allocation of net income attributable to the Previous Owner to the general partner — 0.6 Net income attributable to all partners 46.8 12.6 General partner's incentive distribution rights 9.4 0.9 Net income attributable to partners, excluding incentive distribution rights 37.4 11.7 General partner's ownership interest: 2.0 % 2.0 % General partner's allocated interest in net income 0.7 0.3 General partner's incentive distribution rights 9.4 0.9 Net income attributable to the Previous Owner — 0.6 Total general partner's interest in net income $ 10.1 $ 1.8 Common - public unitholder's interest in net income $ 16.5 $ 4.9 Common - SunCoke interest in net income: Common - SunCoke interest in net income 20.2 1.9 Expenses allocated to Common - SunCoke (1) (7.0 ) — Total common - SunCoke interest in net income 13.2 1.9 Subordinated - SunCoke interest in net income — 4.6 Total limited partners' interest in net income $ 29.7 $ 11.4 (1) Per the amended Partnership agreement, expenses paid on behalf of the Partnership are to be allocated entirely to the partner who paid them. During the three months ended March 31, 2016 , SunCoke paid $7.0 million of allocated corporate costs on behalf of the Partnership and will not seek reimbursement for those costs. These expenses are recorded as a direct reduction to SunCoke's interest in net income for the three months ended March 31, 2016 . 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 IDRs 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. In 2015, the Partnership early adopted ASU 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)." Therefore, 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 March 31, 2016 2015 (Dollars and units in millions, except per unit amounts) Net income attributable to SunCoke Energy L.P./Previous Owner $ 39.8 $ 13.2 Less: Expenses allocated to Common - SunCoke (7.0 ) — Less: Allocation of net income attributable to the Previous Owner to the general partner — 0.6 Net income attributable to all partners 46.8 12.6 General partner's distributions (including, $1.4 and $0.9 million of incentive distribution rights, respectively) 2.0 1.4 Limited partners' distributions on common units 27.5 13.4 Limited partners' distributions on subordinated units — 9.0 Distributions less than (greater than) earnings 17.3 (11.2 ) General partner's earnings: Distributions (including $1.4 and $0.9 million of cash incentive distribution rights, respectively) 2.0 1.4 Allocation of distributions less than (greater than) earnings 8.1 (0.2 ) Net income attributable to Previous Owner — 0.6 Total general partner's earnings 10.1 1.8 Limited partners' earnings on common units: Distributions 27.5 13.4 Expenses allocated to Common - SunCoke (7.0 ) — Allocation of distributions less than (greater than) earnings 9.2 (6.6 ) Total limited partners' earnings on common units 29.7 6.8 Limited partners' earnings on subordinated units: Distributions — 9.0 Allocation of distributions greater than earnings — (4.4 ) Total limited partners' earnings on subordinated units — 4.6 Weighted average limited partner units outstanding: Common - basic and diluted 46.2 23.3 Subordinated - basic and diluted — 15.7 Net income per limited partner unit: Common - basic and diluted $ 0.64 $ 0.29 Subordinated - basic and diluted $ — $ 0.29 Unit Activity Unit activity for the three months ended March 31, 2016 : Common - Public Common - SunCoke Total Common Subordinated - SunCoke At December 31, 2015 20,787,744 9,705,999 30,493,743 15,709,697 Units issued to directors 2,728 — 2,728 — Conversion of subordinate units to common units — 15,709,697 15,709,697 (15,709,697 ) At March 31, 2016 20,790,472 25,415,696 46,206,168 — |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories The components of inventories were as follows: March 31, 2016 December 31, 2015 (Dollars in millions) Coal $ 40.4 $ 42.5 Coke 3.8 5.6 Materials, supplies, and other 29.1 29.0 Total inventories $ 73.3 $ 77.1 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets Goodwill allocated to the Partnership's reportable segments as of March 31, 2016 and changes in the carrying amount of goodwill during the three months ended March 31, 2016 were as follows: Coal Logistics (Dollars in millions) Net balance at December 31, 2015 $ 67.7 Adjustments (1) (0.6 ) Net balance at March 31, 2016 $ 67.1 (1) In the first quarter of 2016, a working capital adjustment to the acquisition date fair value of the acquired net assets decreased the amount of the purchase price allocated to goodwill by $0.6 million . Goodwill, which represents the excess of the purchase price over the fair value of net assets acquired, is tested for impairment as of October 1 of each year, or when events occur or circumstances change that would, more likely than not, reduce the fair value of a reporting unit to below its carrying value. There were no events or circumstances in the first quarter of 2016 that would, more likely than not, reduce the fair value of a reporting unit to below its carrying value. The components of gross and net intangible assets were as follows: March 31, 2016 December 31, 2015 Weighted - Average Remaining Amortization Years Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (Dollars in millions) Customer contracts 6 $ 24.0 $ 2.0 $ 22.0 $ 24.0 $ 1.2 $ 22.8 Customer relationships 14 28.7 2.3 26.4 28.7 1.8 26.9 Permits 26 139.0 3.2 135.8 139.0 1.9 137.1 Trade name 3 1.2 0.6 0.6 1.2 0.6 0.6 Total $ 192.9 $ 8.1 $ 184.8 $ 192.9 $ 5.5 $ 187.4 Total amortization expense for intangible assets subject to amortization was $2.6 million and $0.2 million for the three months ended March 31, 2016 and 2015 , respectively. Based on the carrying value of the finite-lived intangible assets as of March 31, 2016 , we estimate amortization expense for each of the next five years as follows: Amount (Dollars in millions) 2016 (1) $ 7.9 2017 10.5 2018 10.5 2019 10.3 2020 10.3 2021-Thereafter 135.3 Total $ 184.8 (1) Excludes amortization expense recorded during the three months ended March 31, 2016. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The Partnership is a limited partnership and generally is not subject to federal 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. Additionally, as a result of the Granite City Dropdown, the Partnership is subject to state income tax. Earnings from our Middletown operations are subject to a local income tax. The Partnership recorded income tax expense of $0.6 million for the three months ended March 31, 2016 compared to an income tax benefit of $3.3 million for the three months ended March 31, 2015 . The three months ended March 31, 2015 include 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 on January 13, 2015. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt Total debt, including the current portion of long-term debt, consisted of the following: March 31, 2016 December 31, 2015 (Dollars in millions) 7.375% senior notes, due 2020 ("Partnership Notes") $ 499.7 $ 552.5 Revolving credit facility, due 2019 ("Partnership Revolver") 182.0 182.0 Promissory note payable, due 2021 ("Promissory Note") 114.0 114.3 Partnership's term loan, due 2019 ("Partnership Term Loan") 50.0 50.0 Total borrowings $ 845.7 $ 898.8 Original issue premium 10.2 12.1 Debt issuance cost (13.3 ) (15.3 ) Total debt $ 842.6 $ 895.6 Less: current portion of long-term debt 1.1 1.1 Total long-term debt $ 841.5 $ 894.5 In the first quarter of 2016, the Partnership continued de-levering its balance sheet and repurchased $52.8 million face value of outstanding Partnership Notes for $32.6 million in the open market. This resulted in a $20.4 million gain on extinguishment of debt, which included a write-off of $0.2 million of unamortized original issue premium, net of unamortized debt issuance costs. During the first quarter of 2016, the Partnership issued $1.5 million of letters of credit as collateral to its surety providers in connection with workers' compensation, general liability and other financial guarantee obligations. These letters of credit lower the Partnership's borrowing availability under the Partnership Revolver. At March 31, 2016 , the Partnership Revolver had $1.5 million of letters of credit outstanding and an outstanding balance of $182.0 million , leaving $66.5 million available. The Partnership repaid $0.3 million of the Promissory Note on March 31, 2016 , in accordance with the Promissory Note repayment schedule. Covenants 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 March 31, 2016 , 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 | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 8. Supplemental Cash Flow Information Significant non-cash activities were as follows: Three Months Ended March 31, 2016 2015 (Dollars in millions) Debt assumed by SunCoke Energy Partners, L.P. $ — $ 135.0 Net assets of the Previous Owner not assumed by SunCoke Energy Partners, L.P. Receivables — 9.1 Property, plants and equipment — 7.0 Deferred taxes, net — 62.8 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
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 dropdown of Haverhill and Middletown 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. Prior to our formation, SunCoke spent $7 million related to these projects. We have spent approximately $83 million to date and the remaining capital is expected to be spent through the first quarter of 2019 . The Partnership is a party to certain other pending and threatened claims, including matters related to commercial and tax disputes, product liability, employment claims, personal injury claims, premises-liability claims, allegations of exposures to toxic substances and general environmental 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 have a material adverse impact on our consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements The Partnership measures certain financial and non-financial assets and liabilities at fair value on a recurring basis. 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. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are measured at fair value on a recurring basis. The Partnership’s cash equivalents are measured at fair value based on quoted prices in active markets for identical assets. These inputs are classified as Level 1 within the valuation hierarchy. The Partnership had no cash equivalents at March 31, 2016 . Convent Marine Terminal Contingent Consideration In connection with the CMT acquisition, the Partnership entered into a contingent consideration arrangement that requires us to make future payments to The Cline Group based on future volume over a specified threshold, price, and contract renewals. During the first quarter of 2016, the Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability to $4.2 million at March 31, 2016 . The contingent consideration liability is included in other deferred credits and liabilities on the Consolidated Balance Sheet. The fair value of the contingent consideration was estimated 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. 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). Certain Financial Assets and Liabilities not Measured at Fair Value At March 31, 2016 , the estimated fair value of the Partnership's total debt was $695.8 million compared to a carrying amount of $ 845.7 million . 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 CMT located in Louisiana, Lake Terminal located in Indiana and KRT located in Kentucky and West Virginia. This business provides coal handling and/or mixing services to third-party customers as well as SunCoke cokemaking facilities and has a collective capacity to mix and transload more than 40 million tons of coal annually. Coal handling and mixing 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 and (gain) loss on extinguishment of debt are also excluded from segment results. Segment assets are those assets that are utilized within a specific 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 March 31, 2016 2015 (Dollars in millions) Sales and other operating revenue: Domestic Coke $ 178.9 $ 193.0 Coal Logistics 15.6 10.3 Coal Logistics intersegment sales 1.5 1.7 Elimination of intersegment sales (1.5 ) (1.7 ) Total sales and other operating revenue $ 194.5 $ 203.3 Adjusted EBITDA: Domestic Coke $ 46.3 $ 48.5 Coal Logistics 15.1 2.6 Corporate and Other (4.0 ) (2.8 ) Total Adjusted EBITDA $ 57.4 $ 48.3 Depreciation and amortization expense: Domestic Coke $ 13.3 $ 12.8 Coal Logistics 5.4 1.8 Total depreciation and amortization expense $ 18.7 $ 14.6 Capital expenditures: Domestic Coke $ 5.9 $ 5.3 Coal Logistics 2.1 0.2 Total capital expenditures $ 8.0 $ 5.5 The following table sets forth the Partnership’s total sales and other operating revenue by product or service, excluding intersegment revenues: Three Months Ended March 31, 2016 2015 (Dollars in millions) Sales and other operating revenue: Cokemaking revenues $ 163.4 $ 176.5 Energy revenues 14.7 16.5 Coal logistics revenues 15.3 10.0 Other revenues 1.1 0.3 Total revenues $ 194.5 $ 203.3 The following table sets forth the Partnership's segment assets: March 31, 2016 December 31, 2015 (Dollars in millions) Segment assets: Domestic Coke $ 1,206.3 $ 1,233.1 Coal Logistics 524.9 534.6 Corporate and Other 4.9 1.2 Total assets $ 1,736.1 $ 1,768.9 The Partnership evaluates the performance of its segments based on segment Adjusted EBITDA, which represents earnings before interest, (gain) loss on extinguishment of debt, taxes, depreciation and amortization, adjusted for Coal Logistics deferred revenue and changes to our contingent consideration liability related to our acquisition of the CMT. Coal Logistics deferred revenue adjusts for coal and liquid tons the Partnership did not handle, but are included in Adjusted EBITDA as the associated take-or-pay fees are billed to the customer. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. 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 March 31, 2016 2015 (Dollars in millions) Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 56.5 $ 43.8 Add: Adjusted EBITDA attributable to Previous Owner (1) — 1.5 Add: Adjusted EBITDA attributable to noncontrolling interest (2) 0.9 3.0 Adjusted EBITDA $ 57.4 $ 48.3 Subtract: Depreciation and amortization expense $ 18.7 $ 14.6 Interest expense, net 12.5 11.2 (Gain) loss on extinguishment of debt (20.4 ) 9.4 Income tax expense (benefit) 0.6 (3.3 ) Coal Logistics deferred revenue (3) 9.2 — Reduction in contingent consideration (4) (3.7 ) — Net income $ 40.5 $ 16.4 Add: Depreciation and amortization expense $ 18.7 $ 14.6 (Gain) loss on extinguishment of debt (20.4 ) 9.4 Changes in working capital and other 1.6 (10.7 ) Net cash provided by operating activities $ 40.4 $ 29.7 (1) Reflects net income attributable to our Granite City facility prior to the Granite City Dropdown on January 13, 2015 adjusted for Granite City's share of interest, taxes, depreciation and amortization during the same period. (2) Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest's share of interest, taxes, income, and depreciation and amortization. (3) Coal Logistics deferred revenue adjusts for coal and liquid tons the Partnership did not handle, but are included in Adjusted EBITDA as the associated take-or-pay fees are billed to the customer. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. (4) The Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability from $7.9 million at December 31, 2015 to $4.2 million at March 31, 2016 , resulting in a $3.7 million gain, which was excluded from Adjusted EBITDA. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In April 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-10, "Revenue From Contracts With Customers (Topic 606): Identifying Performance Obligations and Licensing." ASU 2016-10 clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. It is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and permits early adoption on a limited basis. The Partnership is currently evaluating this ASU to determine its potential impact on the Partnership's financial condition, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)." ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. It is effective for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018, with early adoption permitted. The Partnership is currently evaluating this ASU to determine its potential impact on the Partnership's financial condition, results of operations, and cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. It is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, with early adoption permitted. The Partnership is currently evaluating this ASU to determine its potential impact on the Partnership's financial condition, results of operations, and cash flows. |
Cash Distributions and Net In19
Cash Distributions and Net Income Per Unit (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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% 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, 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 $ 0.5940 $ 29.6 December 1, 2015 November 13, 2015 December 31, 2015 $ 0.5940 $ 29.5 March 1, 2016 February 15, 2016 March 31, 2016 (1) $ 0.5940 $ 29.5 June 1, 2016 May 16, 2016 (1) On April 18, 2016 , our Board of Directors declared a cash distribution of $0.5940 per unit, which will be paid on June 1, 2016 , to unitholders of record on May 16, 2016 . SunCoke has elected to provide the Partnership with deferred payment terms on the IDR cash distributions in the second quarter of 2016. |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The calculation of earnings per unit is as follows: Three Months Ended March 31, 2016 2015 (Dollars and units in millions, except per unit amounts) Net income attributable to SunCoke Energy L.P./Previous Owner $ 39.8 $ 13.2 Less: Expenses allocated to Common - SunCoke (7.0 ) — Less: Allocation of net income attributable to the Previous Owner to the general partner — 0.6 Net income attributable to all partners 46.8 12.6 General partner's distributions (including, $1.4 and $0.9 million of incentive distribution rights, respectively) 2.0 1.4 Limited partners' distributions on common units 27.5 13.4 Limited partners' distributions on subordinated units — 9.0 Distributions less than (greater than) earnings 17.3 (11.2 ) General partner's earnings: Distributions (including $1.4 and $0.9 million of cash incentive distribution rights, respectively) 2.0 1.4 Allocation of distributions less than (greater than) earnings 8.1 (0.2 ) Net income attributable to Previous Owner — 0.6 Total general partner's earnings 10.1 1.8 Limited partners' earnings on common units: Distributions 27.5 13.4 Expenses allocated to Common - SunCoke (7.0 ) — Allocation of distributions less than (greater than) earnings 9.2 (6.6 ) Total limited partners' earnings on common units 29.7 6.8 Limited partners' earnings on subordinated units: Distributions — 9.0 Allocation of distributions greater than earnings — (4.4 ) Total limited partners' earnings on subordinated units — 4.6 Weighted average limited partner units outstanding: Common - basic and diluted 46.2 23.3 Subordinated - basic and diluted — 15.7 Net income per limited partner unit: Common - basic and diluted $ 0.64 $ 0.29 Subordinated - basic and diluted $ — $ 0.29 The calculation of net income allocated to the general and limited partners was as follows: Three Months Ended March 31, 2016 2015 (Dollars in millions) Net income attributable to SunCoke Energy L.P./Previous Owner $ 39.8 $ 13.2 Less: Expenses allocated to Common - SunCoke (1) (7.0 ) — Less: Allocation of net income attributable to the Previous Owner to the general partner — 0.6 Net income attributable to all partners 46.8 12.6 General partner's incentive distribution rights 9.4 0.9 Net income attributable to partners, excluding incentive distribution rights 37.4 11.7 General partner's ownership interest: 2.0 % 2.0 % General partner's allocated interest in net income 0.7 0.3 General partner's incentive distribution rights 9.4 0.9 Net income attributable to the Previous Owner — 0.6 Total general partner's interest in net income $ 10.1 $ 1.8 Common - public unitholder's interest in net income $ 16.5 $ 4.9 Common - SunCoke interest in net income: Common - SunCoke interest in net income 20.2 1.9 Expenses allocated to Common - SunCoke (1) (7.0 ) — Total common - SunCoke interest in net income 13.2 1.9 Subordinated - SunCoke interest in net income — 4.6 Total limited partners' interest in net income $ 29.7 $ 11.4 (1) Per the amended Partnership agreement, expenses paid on behalf of the Partnership are to be allocated entirely to the partner who paid them. During the three months ended March 31, 2016 , SunCoke paid $7.0 million of allocated corporate costs on behalf of the Partnership and will not seek reimbursement for those costs. These expenses are recorded as a direct reduction to SunCoke's interest in net income for the three months ended March 31, 2016 . |
Schedule of Limited Partners' Capital Account by Class | Unit activity for the three months ended March 31, 2016 : Common - Public Common - SunCoke Total Common Subordinated - SunCoke At December 31, 2015 20,787,744 9,705,999 30,493,743 15,709,697 Units issued to directors 2,728 — 2,728 — Conversion of subordinate units to common units — 15,709,697 15,709,697 (15,709,697 ) At March 31, 2016 20,790,472 25,415,696 46,206,168 — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The components of inventories were as follows: March 31, 2016 December 31, 2015 (Dollars in millions) Coal $ 40.4 $ 42.5 Coke 3.8 5.6 Materials, supplies, and other 29.1 29.0 Total inventories $ 73.3 $ 77.1 |
Goodwill and Other Intangible21
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill allocated to the Partnership's reportable segments as of March 31, 2016 and changes in the carrying amount of goodwill during the three months ended March 31, 2016 were as follows: Coal Logistics (Dollars in millions) Net balance at December 31, 2015 $ 67.7 Adjustments (1) (0.6 ) Net balance at March 31, 2016 $ 67.1 (1) In the first quarter of 2016, a working capital adjustment to the acquisition date fair value of the acquired net assets decreased the amount of the purchase price allocated to goodwill by $0.6 million . |
Schedule of Finite-Lived Intangible Assets | The components of gross and net intangible assets were as follows: March 31, 2016 December 31, 2015 Weighted - Average Remaining Amortization Years Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (Dollars in millions) Customer contracts 6 $ 24.0 $ 2.0 $ 22.0 $ 24.0 $ 1.2 $ 22.8 Customer relationships 14 28.7 2.3 26.4 28.7 1.8 26.9 Permits 26 139.0 3.2 135.8 139.0 1.9 137.1 Trade name 3 1.2 0.6 0.6 1.2 0.6 0.6 Total $ 192.9 $ 8.1 $ 184.8 $ 192.9 $ 5.5 $ 187.4 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Total amortization expense for intangible assets subject to amortization was $2.6 million and $0.2 million for the three months ended March 31, 2016 and 2015 , respectively. Based on the carrying value of the finite-lived intangible assets as of March 31, 2016 , we estimate amortization expense for each of the next five years as follows: Amount (Dollars in millions) 2016 (1) $ 7.9 2017 10.5 2018 10.5 2019 10.3 2020 10.3 2021-Thereafter 135.3 Total $ 184.8 (1) Excludes amortization expense recorded during the three months ended March 31, 2016. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total debt, including the current portion of long-term debt, consisted of the following: March 31, 2016 December 31, 2015 (Dollars in millions) 7.375% senior notes, due 2020 ("Partnership Notes") $ 499.7 $ 552.5 Revolving credit facility, due 2019 ("Partnership Revolver") 182.0 182.0 Promissory note payable, due 2021 ("Promissory Note") 114.0 114.3 Partnership's term loan, due 2019 ("Partnership Term Loan") 50.0 50.0 Total borrowings $ 845.7 $ 898.8 Original issue premium 10.2 12.1 Debt issuance cost (13.3 ) (15.3 ) Total debt $ 842.6 $ 895.6 Less: current portion of long-term debt 1.1 1.1 Total long-term debt $ 841.5 $ 894.5 |
Supplemental Cash Flow Inform23
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Significant non-cash activities were as follows: Three Months Ended March 31, 2016 2015 (Dollars in millions) Debt assumed by SunCoke Energy Partners, L.P. $ — $ 135.0 Net assets of the Previous Owner not assumed by SunCoke Energy Partners, L.P. Receivables — 9.1 Property, plants and equipment — 7.0 Deferred taxes, net — 62.8 |
Business Segment Disclosures (T
Business Segment Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 (Dollars in millions) Sales and other operating revenue: Domestic Coke $ 178.9 $ 193.0 Coal Logistics 15.6 10.3 Coal Logistics intersegment sales 1.5 1.7 Elimination of intersegment sales (1.5 ) (1.7 ) Total sales and other operating revenue $ 194.5 $ 203.3 Adjusted EBITDA: Domestic Coke $ 46.3 $ 48.5 Coal Logistics 15.1 2.6 Corporate and Other (4.0 ) (2.8 ) Total Adjusted EBITDA $ 57.4 $ 48.3 Depreciation and amortization expense: Domestic Coke $ 13.3 $ 12.8 Coal Logistics 5.4 1.8 Total depreciation and amortization expense $ 18.7 $ 14.6 Capital expenditures: Domestic Coke $ 5.9 $ 5.3 Coal Logistics 2.1 0.2 Total capital expenditures $ 8.0 $ 5.5 The following table sets forth the Partnership’s total sales and other operating revenue by product or service, excluding intersegment revenues: Three Months Ended March 31, 2016 2015 (Dollars in millions) Sales and other operating revenue: Cokemaking revenues $ 163.4 $ 176.5 Energy revenues 14.7 16.5 Coal logistics revenues 15.3 10.0 Other revenues 1.1 0.3 Total revenues $ 194.5 $ 203.3 The following table sets forth the Partnership's segment assets: March 31, 2016 December 31, 2015 (Dollars in millions) Segment assets: Domestic Coke $ 1,206.3 $ 1,233.1 Coal Logistics 524.9 534.6 Corporate and Other 4.9 1.2 Total assets $ 1,736.1 $ 1,768.9 |
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 March 31, 2016 2015 (Dollars in millions) Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 56.5 $ 43.8 Add: Adjusted EBITDA attributable to Previous Owner (1) — 1.5 Add: Adjusted EBITDA attributable to noncontrolling interest (2) 0.9 3.0 Adjusted EBITDA $ 57.4 $ 48.3 Subtract: Depreciation and amortization expense $ 18.7 $ 14.6 Interest expense, net 12.5 11.2 (Gain) loss on extinguishment of debt (20.4 ) 9.4 Income tax expense (benefit) 0.6 (3.3 ) Coal Logistics deferred revenue (3) 9.2 — Reduction in contingent consideration (4) (3.7 ) — Net income $ 40.5 $ 16.4 Add: Depreciation and amortization expense $ 18.7 $ 14.6 (Gain) loss on extinguishment of debt (20.4 ) 9.4 Changes in working capital and other 1.6 (10.7 ) Net cash provided by operating activities $ 40.4 $ 29.7 (1) Reflects net income attributable to our Granite City facility prior to the Granite City Dropdown on January 13, 2015 adjusted for Granite City's share of interest, taxes, depreciation and amortization during the same period. (2) Reflects net income attributable to noncontrolling interest adjusted for noncontrolling interest's share of interest, taxes, income, and depreciation and amortization. (3) Coal Logistics deferred revenue adjusts for coal and liquid tons the Partnership did not handle, but are included in Adjusted EBITDA as the associated take-or-pay fees are billed to the customer. Deferred revenue on take-or-pay contracts is recognized into GAAP income annually based on the terms of the contract. (4) The Partnership amended the contingent consideration terms with The Cline Group, which reduced the fair value of the contingent consideration liability from $7.9 million at December 31, 2015 to $4.2 million at March 31, 2016 , resulting in a $3.7 million gain, which was excluded from Adjusted EBITDA. |
General (Details)
General (Details) - Cokemaking_facility | 3 Months Ended | |
Mar. 31, 2016 | Jan. 13, 2015 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Number of cokemaking facilities | 3 | |
Gateway Energy and Coal Company, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Interest acquired (as a percent) | 75.00% | |
SunCoke Energy Inc | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Interest in partnership (as a percent) | 53.90% | |
Limited Partnership (LP) ownership interest (as a percent) | 2.00% | |
Haverhill Coke Company LLC, Middletown Coke Company LLC, and Gateway Energy and Coke Company, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Interest in partnership (as a percent) | 98.00% | |
Haverhill Coke Company LLC, Middletown Coke Company LLC, and Gateway Energy and Coke Company, LLC | SunCoke Energy Inc | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Limited Partnership (LP) ownership interest (as a percent) | 2.00% |
Related Party Transactions an26
Related Party Transactions and Agreements (Details) - USD ($) | Aug. 12, 2015 | Jan. 13, 2015 | Jan. 23, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||||||
Payable to affiliate, net | $ 800,000 | $ 0 | ||||
Receivable from related party | 44,900,000 | 40,000,000 | ||||
Decrease in restricted cash | 7,400,000 | $ 0 | ||||
Restricted cash | 10,300,000 | 17,700,000 | ||||
Gain on reduction in contingent consideration | 3,700,000 | 0 | ||||
Capital contribution from SunCoke | 8,400,000 | |||||
Haverhill Coke Company LLC and Middletown Coke Company LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Environmental capital expenditures retained | $ 52,000,000 | |||||
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 | |||||
General Partner | ||||||
Related Party Transaction [Line Items] | ||||||
Capital contribution from SunCoke | 1,400,000 | |||||
Common Units - Parent | SunCoke Energy Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Capital contribution from SunCoke | 7,000,000 | |||||
Cost of Products Sold and Operating Expenses | ||||||
Related Party Transaction [Line Items] | ||||||
Gain on reduction in contingent consideration | 3,700,000 | |||||
Convent Marine Terminal | ||||||
Related Party Transaction [Line Items] | ||||||
Decrease in restricted cash | 6,000,000 | |||||
Business combination, contingent consideration | $ 4,200,000 | $ 7,900,000 | ||||
Convent Marine Terminal | Restricted Cash | ||||||
Related Party Transaction [Line Items] | ||||||
Cash withheld to fund capital expenditures | $ 21,500,000 | |||||
Convent Marine Terminal | ||||||
Related Party Transaction [Line Items] | ||||||
Interest in partnership (as a percent) | 10.30% | |||||
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] | ||||||
Interest in partnership (as a percent) | 53.90% | |||||
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 | |||||
SunCoke Energy Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases | $ 100,000 | 1,500,000 | ||||
Allocated expenses | 7,000,000 | 6,600,000 | ||||
SunCoke Energy Inc | Coal Logistics | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue | 2,600,000 | $ 3,000,000 | ||||
Affiliated Entity | Coal Logistics | The Cline Group | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues | 5,100,000 | |||||
Receivable from related party | 13,500,000 | |||||
Affiliated Entity | Coal Logistics | The Cline Group | Accrued Liabilities | ||||||
Related Party Transaction [Line Items] | ||||||
Deferred Revenue | $ 8,700,000 | |||||
Affiliated Entity | Coal Logistics | The Cline Group | Sales Revenue, Net | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue as a percentage of total revenues | 2.60% |
Cash Distributions and Net In27
Cash Distributions and Net Income Per Unit Distributions Percentage Allocations (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||
Marginal percentage interest in distributions (as a percent) | 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 In28
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 | Apr. 18, 2016 | Dec. 01, 2015 | Aug. 31, 2015 | May. 29, 2015 | Mar. 31, 2016 |
Dividends Payable [Line Items] | |||||
Cash distributions per unit (in dollar per unit) | $ 0.5940 | $ 0.5825 | $ 0.5715 | $ 0.5940 | |
Cash distributions paid | $ 29.6 | $ 29 | $ 23.8 | $ 29.5 | |
Subsequent Event | |||||
Dividends Payable [Line Items] | |||||
Cash distributions declared per unit (in dollars per unit) | $ 0.594 | ||||
Cash distributions declared | $ 29.5 |
Cash Distributions and Net In29
Cash Distributions and Net Income Per Unit Allocation of Net Income (Details) - shares | Jan. 01, 2016 | Mar. 31, 2016 |
Earnings Per Share [Abstract] | ||
Allocation to general partner (as a percent) | 100.00% | |
Common units | ||
Limited Partners' Capital Account [Line Items] | ||
Conversion of subordinate units to common units | 15,709,697 | 15,709,697 |
Cash Distributions and Net In30
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to all partners | $ 39.8 | $ 13.2 |
Expenses allocated to Common - SunCoke | (7) | 0 |
General partner's interest in net income | 10.1 | 1.8 |
Net income attributable to partners, excluding incentive distribution rights | $ 37.4 | $ 11.7 |
Marginal percentage interest in distributions (as a percent) | 2.00% | 2.00% |
Limited partners' interest in net income | $ 29.7 | $ 11.4 |
General Partner | Incentive Distribution | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
General partner's incentive distribution rights | 9.4 | 0.9 |
General Partner | Allocated Interest | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
General partner's interest in net income | 0.7 | 0.3 |
General Partner | General Partner | Incentive Distribution | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
General partner's interest in net income | 9.4 | 0.9 |
Limited partners' distributions | Common Units - Public | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Limited partners' interest in net income | 16.5 | 4.9 |
Limited partners' distributions | Common Units - Parent | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Expenses allocated to Common - SunCoke | (7) | 0 |
Limited partners' interest in net income | 20.2 | 1.9 |
Total common - SunCoke interest in net income | 13.2 | 1.9 |
Limited partners' distributions | Subordinated | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Limited partners' interest in net income | 0 | 4.6 |
Predecessor | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to all partners | 0 | 0.6 |
General partner's interest in net income | 0 | 0.6 |
Successor | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to all partners | 39.8 | 12.6 |
Net income attributable to all partners | $ 46.8 | $ 12.6 |
Cash Distributions and Net In31
Cash Distributions and Net Income Per Unit Calculation of Earnings per Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to all partners | $ 39.8 | $ 13.2 |
Expenses allocated to Common - SunCoke | (7) | 0 |
Distributions | 2 | 1.4 |
Incentive distribution rights | 29.5 | |
Allocation of distributions (greater than) less than earnings | 17.3 | (11.2) |
General Partner | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Distributions | 2 | 1.4 |
Allocation of distributions (greater than) less than earnings | 8.1 | (0.2) |
Partner earnings | 10.1 | 1.8 |
Limited partners' distributions | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Expenses allocated to Common - SunCoke | (7) | 0 |
Distributions | 27.5 | 13.4 |
Allocation of distributions (greater than) less than earnings | 9.2 | (6.6) |
Partner earnings | 29.7 | 6.8 |
Limited Partner Subordinated | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Distributions | 0 | 9 |
Allocation of distributions (greater than) less than earnings | 0 | (4.4) |
Partner earnings | 0 | 4.6 |
Common units | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Limited partner distributions | $ 27.5 | $ 13.4 |
Weighted average limited partner units outstanding: (in shares) | ||
Weighted average units outstanding (basic) (in shares) | 46.2 | 23.3 |
Weighted average units outstanding (diluted) (in shares) | 46.2 | 23.3 |
Net income per limited partner unit: (in dollars per share) | ||
Net income per unit (basic) (in dollars per share) | $ 0.64 | $ 0.29 |
Net income per unit (diluted) (in dollars per share) | $ 0.64 | $ 0.29 |
Subordinated | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Limited partner distributions | $ 0 | $ 9 |
Weighted average limited partner units outstanding: (in shares) | ||
Weighted average units outstanding (basic) (in shares) | 0 | 15.7 |
Weighted average units outstanding (diluted) (in shares) | 0 | 15.7 |
Net income per limited partner unit: (in dollars per share) | ||
Net income per unit (basic) (in dollars per share) | $ 0 | $ 0.29 |
Net income per unit (diluted) (in dollars per share) | $ 0 | $ 0.29 |
Predecessor | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to all partners | $ 0 | $ 0.6 |
Successor | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to all partners | 39.8 | 12.6 |
Net income attributable to all partners | 46.8 | 12.6 |
Incentive Distribution | General Partner | General Partner | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Incentive distribution rights | $ 1.4 | $ 0.9 |
Cash Distributions and Net In32
Cash Distributions and Net Income Per Unit Unit Activity (Details) - shares | Jan. 01, 2016 | Mar. 31, 2016 |
Common units | ||
Limited Partners' Capital Account [Line Items] | ||
At December 31, 2015 | 30,493,743 | 30,493,743 |
Conversion of subordinate units to common units | 15,709,697 | 15,709,697 |
At March 31, 2016 | 46,206,168 | |
Common units | Director | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued to directors | 2,728 | |
Common units | Public | ||
Limited Partners' Capital Account [Line Items] | ||
At December 31, 2015 | 20,787,744 | 20,787,744 |
Conversion of subordinate units to common units | 0 | |
At March 31, 2016 | 20,790,472 | |
Common units | Public | Director | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued to directors | 2,728 | |
Common Units - Parent | SunCoke Energy Inc | ||
Limited Partners' Capital Account [Line Items] | ||
At December 31, 2015 | 9,705,999 | 9,705,999 |
Conversion of subordinate units to common units | 15,709,697 | |
At March 31, 2016 | 25,415,696 | |
Common Units - Parent | SunCoke Energy Inc | Director | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued to directors | 0 | |
Subordinated | SunCoke Energy Inc | ||
Limited Partners' Capital Account [Line Items] | ||
At December 31, 2015 | 15,709,697 | 15,709,697 |
Conversion of subordinate units to common units | (15,709,697) | |
At March 31, 2016 | 0 | |
Subordinated | SunCoke Energy Inc | Director | ||
Limited Partners' Capital Account [Line Items] | ||
Units issued to directors | 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Coal | $ 40.4 | $ 42.5 |
Coke | 3.8 | 5.6 |
Materials, supplies, and other | 29.1 | 29 |
Total inventories | $ 73.3 | $ 77.1 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 67.7 |
Goodwill adjustments | (0.6) |
Goodwill, end of period | $ 67.1 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets - Gross and Net Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 192.9 | $ 192.9 |
Accumulated Amortization | 8.1 | 5.5 |
Total | $ 184.8 | 187.4 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization (in years) | 6 years | |
Gross Carrying Amount | $ 24 | 24 |
Accumulated Amortization | 2 | 1.2 |
Total | $ 22 | 22.8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization (in years) | 14 years | |
Gross Carrying Amount | $ 28.7 | 28.7 |
Accumulated Amortization | 2.3 | 1.8 |
Total | $ 26.4 | 26.9 |
Permits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization (in years) | 26 years | |
Gross Carrying Amount | $ 139 | 139 |
Accumulated Amortization | 3.2 | 1.9 |
Total | $ 135.8 | 137.1 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted - Average Remaining Amortization (in years) | 3 years | |
Gross Carrying Amount | $ 1.2 | 1.2 |
Accumulated Amortization | 0.6 | 0.6 |
Total | $ 0.6 | $ 0.6 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Total amortization expense | $ 2.6 | $ 0.2 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 7.9 | |
2,017 | 10.5 | |
2,018 | 10.5 | |
2,019 | 10.3 | |
2,020 | 10.3 | |
2021-Thereafter | 135.3 | |
Total | $ 184.8 | $ 187.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax, Components of Income Tax Expense (Benefit [Line Items] | ||
Income tax expense (benefit) | $ 0.6 | $ (3.3) |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 845.7 | $ 898.8 |
Original issue premium | 10.2 | 12.1 |
Debt issuance costs | (13.3) | (15.3) |
Long-term debt | 842.6 | 895.6 |
Current portion of long-term debt | 1.1 | 1.1 |
Long-term debt | 841.5 | 894.5 |
Senior Notes | Senior Notes, Due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 499.7 | 552.5 |
Interest rate on partnership notes (as a percent) | 7.375% | |
Senior Notes | Promissory Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 114 | 114.3 |
Line of Credit | Partnership Revolver Due 2019 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 182 | 182 |
Line of Credit | Partnership Term Loan Due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 50 | $ 50 |
Debt (Details)
Debt (Details) | 3 Months Ended | ||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Aug. 12, 2018 | Dec. 31, 2015USD ($) | Aug. 12, 2015 | |
Debt Instrument [Line Items] | |||||
Repayments of long term debt | $ 32,900,000 | $ 149,500,000 | |||
Gain (loss) on extinguishment of debt | 20,400,000 | $ (9,400,000) | |||
Long-term debt, gross | 845,700,000 | $ 898,800,000 | |||
Financial Standby Letter of Credit | Workers Compensation, General Liability and Other Financial Guarantee Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of credit issued as collateral | 1,500,000 | ||||
Senior Notes, Due 2020 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of debt | 52,800,000 | ||||
Repayments of long term debt | 32,600,000 | ||||
Gain (loss) on extinguishment of debt | 20,400,000 | ||||
Write-off of unamortized original issue premium | 200,000 | ||||
Long-term debt, gross | 499,700,000 | 552,500,000 | |||
Partnership Revolver Due 2019 | Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | 1,500,000 | ||||
Long-term debt, gross | 182,000,000 | 182,000,000 | |||
Remaining borrowing capacity | 66,500,000 | ||||
Promissory Notes Due 2021 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 114,000,000 | $ 114,300,000 | |||
Repayments of senior debt | $ 300,000 | ||||
Credit Agreement and Partner Revolver | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio, maximum | 4.5 | ||||
Contingent leverage ratio, maximum | 5 | ||||
Contingent leverage ratio, period | 6 months | ||||
Contingent leverage ratio, asset acquisition limitation threshold | $ 50,000,000 | ||||
Interest coverage ratio, Minimum | 2.5 | ||||
Cross default debt threshold | $ 20,000,000 | ||||
Raven Energy LLC Promissory Note | Convent Marine Terminal | Convent Marine Terminal | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio, maximum | 5 | ||||
Fixed charge coverage ratio, minimum | 1 | ||||
Raven Energy LLC Promissory Note | Convent Marine Terminal | Forecast | Convent Marine Terminal | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio, maximum | 4.5 |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | ||
Debt assumed by SunCoke Energy Partners, L.P. | $ 0 | $ 135 |
Net assets of the Previous Owner not assumed by SunCoke Energy Partners, L.P. | ||
Receivables | 0 | 9.1 |
Property, plants and equipment | 0 | 7 |
Deferred taxes, net | $ 0 | $ 62.8 |
Commitments and Contingent Li42
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Dec. 31, 2014 | Mar. 31, 2016 | |
Loss Contingencies [Line Items] | ||
Cost of capital projects | $ 83 | |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Estimated fair value of the Partnership's long-term debt | $ 695.8 | |
Carrying value of Partnership's long-term debt | 845.7 | $ 898.8 |
Convent Marine Terminal | ||
Business Acquisition [Line Items] | ||
Business combination, contingent consideration | $ 4.2 | $ 7.9 |
Business Segment Disclosures -
Business Segment Disclosures - Revenues, Expenses and Assets by Segment (Details) T in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)T | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||
Sales and other operating revenue | $ 194.5 | $ 203.3 | |
Adjusted EBITDA | 57.4 | 48.3 | |
Other Depreciation and Amortization | 18.7 | 14.6 | |
Capital Expenditure | 8 | 5.5 | |
Total assets | 1,736.1 | $ 1,768.9 | |
Total assets | 1,736.1 | 1,768.9 | |
Domestic Coke | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 46.3 | 48.5 | |
Other Depreciation and Amortization | 13.3 | 12.8 | |
Capital Expenditure | 5.9 | 5.3 | |
Total assets | $ 1,206.3 | 1,233.1 | |
Coal Logistics | |||
Segment Reporting Information [Line Items] | |||
Coal handling capacity | T | 40 | ||
Adjusted EBITDA | $ 15.1 | 2.6 | |
Other Depreciation and Amortization | 5.4 | 1.8 | |
Capital Expenditure | 2.1 | 0.2 | |
Total assets | 524.9 | 534.6 | |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | (4) | (2.8) | |
Total assets | 4.9 | $ 1.2 | |
Operating Segments | Domestic Coke | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenue | 178.9 | 193 | |
Operating Segments | Coal Logistics | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenue | 15.6 | 10.3 | |
Operating Segments | Coal Logistics intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenue | 1.5 | 1.7 | |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenue | $ (1.5) | $ (1.7) |
Business Segment Disclosures 45
Business Segment Disclosures - Revenues by Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 194.5 | $ 203.3 |
Cokemaking revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue | 163.4 | 176.5 |
Energy revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue | 14.7 | 16.5 |
Coal logistics revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue | 15.3 | 10 |
Other revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 1.1 | $ 0.3 |
Business Segment Disclosures 46
Business Segment Disclosures - Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | $ 57.4 | $ 48.3 | |
Depreciation and amortization | 18.7 | 14.6 | |
Interest expense, net | 12.5 | 11.2 | |
(Gain) loss on extinguishment of debt | (20.4) | 9.4 | |
Income tax expense (benefit) | 0.6 | (3.3) | |
Coal Logistics deferred revenue | 9.2 | 0 | |
Reduction in contingent consideration | (3.7) | 0 | |
Net income | 40.5 | 16.4 | |
Changes in working capital and other | 1.6 | (10.7) | |
Net cash provided by operating activities | 40.4 | 29.7 | |
Cost of Products Sold and Operating Expenses | |||
Segment Reporting Information [Line Items] | |||
Reduction in contingent consideration | (3.7) | ||
Convent Marine Terminal | |||
Segment Reporting Information [Line Items] | |||
Business combination, contingent consideration | 4.2 | $ 7.9 | |
Suncoke Energy Partners, L.P. / Predecessor | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 56.5 | 43.8 | |
Predecessor | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 0 | 1.5 | |
Noncontrolling Interest | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 0.9 | $ 3 | |
Net income | $ 0.7 |