Welcome to the Q3 SXC Earnings Call. My name is Paulette and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Please note that this conference is being recorded. I’ll now turn the call over to Lisa Ciota. Lisa, you may begin.

Thank you, Paulette. Good morning, everyone. Thank you for joining us on our early morning call to discuss SunCoke Energy’s Third Quarter 2015 Earnings. With me are Fritz Henderson, our Chairman, President and CEO and Fay West, Senior Vice President and Chief Financial Officer. Following our remarks made by management today, we’ll open the call for Q&A. This conference call is being webcast live on the Investor Relations section of suncoke.com and a replay will be available for few weeks. If you don’t get to your questions on the call today, please feel free to give me a call this afternoon at 630-824-1907. Now before I turn the call over to Fritz, let me remind you that the various remarks we make today regarding future expectations constitute forward-looking statements. The cautionary language regarding forward-looking statements in our SEC filings apply to these remarks. These documents are available on our Web site as are any reconciliations to non-GAAP items discussed on today’s call. And now turn the call over to Fritz.

Thank you Lisa and good morning. Thanks to everyone for joining the call. We made our decision to report our third quarter results earlier than we typically do in order for investors to have as much information as soon as possible, so again thank you very much for joining us this morning. If you look at the third quarter -- number of things to place in the third quarter at SunCoke; first the Convent Marine Terminal acquisition was both completed and the integration steps were completed as well which really builds and strengthens our Coal Logistics platform. We executed 16 million of share repurchases against the existing authorization we had we declared the second consecutive $0.15 quarterly dividend, Fay will have more to say about that. In the quarter, we initiated a number of steps and took a fresh look at our Indiana Harbor plant. As the plant continues to have both continued challenges and continues to post unacceptable performance, I’ll have more to say about that later in the call. The organization also had a number of changes in the third quarter with the departure of Mike Thomson and Barry Elswick, we took that opportunity to flatten the organization in the quarter. We also managed the transition at General Counsel from Denise Cade to Katherine Gates. So the company has made a number of important changes in management and I want to thank Denise and congratulate Katherine on her promotion. In terms of guidance given what’s happened with Indiana Harbor we are revising our guidance today to $180 million to $190 million that reflects both the Convent acquisitions but also significant under performance in Indiana Harbor, Fay will have more to say about that later in the presentation and then I’ll wrap up talking about again our value proposition SunCoke what our business model and what our value proposition is toward our customers going forward. So at this point turn it over to Fay.

Thanks Fritz. For the quarter consolidated adjusted EBITDA of $50.2 million was down $14 million versus the prior year. And this was due primarily to the impact of our performance at Indiana Harbor as well as other items that impact comparability which I’ll discuss on the next slide. These items were partially offset by the performance of our Convent Marine Terminal facility which contributed $5.4 million third quarter results and is expected to deliver full year 2015 adjusted EBITDA of approximately $20 million, which is in line with our prior guidance. Looking at EPS, we reported a loss $0.36 per share which reflects the impact of $19.4 million non-cash impairment charge related to our VISA SunCoke joint venture in India. Similar to the impairment charge we took last year, the market conditions continue to deteriorate and we have now written our investments down to zero. Turning to Slide 4. And working from left to right on the chart, we identified the drivers of year-over-year changes in adjusted EBITDA. Most notably you could see the $11.4 million impact from cost under recovery and lower volumes at Indiana Harbor which was partially driven by the oven rebuild pilot program that Fritz will just talk later in the presentation. In addition to Indiana Harbor a few items impacting comparability include the previously disclosed idling of the Haverhill Chemicals facility, as well as one-time deal cost and severance cost that were incurred in the third quarter. Partially offsetting these items was the beneficial impact we are already experiencing from our Convent Marine Terminal acquisition which contributed $5.4 million to results. In total our consolidated adjusted-EBITDA for the third quarter was $50.2 million down from the prior year quarter of 64.2. Moving to the Domestic Coke summary on page 5. Given the operational challenges at…

Before talking about slide 9 I wanted to provide some overall comments about Indiana Harbor. When you look back not just in the quarter but over the last three year performance of the plant has not been acceptable under any measure. We've invested about $130 million of capital in that plant from 2013 to what we expect to do in 2015. While Indiana Harbor does have some unique challenges we’re not making excuses today, we’re not getting the job done, we’re not getting the job done in terms of profitability, cash flow and what we expect to achieve in terms of production yield and the various other operating metrics at the plant. The asset today is in much better condition than it was in 2013. If you look at the physical plant, the environmental performance, there are number of significant improvements in the infrastructure and the capability of the plant but as I said we’re not hitting the numbers in terms of production yield O&M thoughts and therefore EBITDA. So the logical question is why? And what will we do differently going forward. There is four points I want to make before touching on the information you see on page 9 and page 10. First point I want to make is, we plan to transition this from a project to a plant. What does that mean? Typically when you do a project you complete the spending and you expect to have results. We've spent capital at the plant but we've not been able to bring the plant to the 1.2 million rate. As we think about going forward we plan to take a more balanced approach beyond going spending and the management of the projects within the plant are going to be incorporated within the operations of the plant. The…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] And our first question comes from Pavan Hoskote from Goldman Sachs. Please go ahead.

Thanks a lot. Good morning guys. Appreciate the detailed update on the Indiana Harbor, wanted to follow-up on the recent idling of operations at Granite City. Can you give a bit of an update on how you're seeing the supply and demand balance for domestic coke over the next few years? And then on related note can you discuss the level of confidence you have in your take-or-pay contracts if steel markets remain challenged for longer?

So two questions let me deal with Granite City and then deal with your broader question, actually you have three question. Nature coke balance, the security of our contracts in Granite City, so let me deal with Granite City first. The announcement made by U.S. Steel about a potential temporary idling of their blast furnace there, the issuance of temporary [indiscernible] notices, I stress the forward temporary. It seems this space was only one per early this year very similar. What we’ve done at that plant as we continued to meet the customers cook needs for the one blast furnace it has been lending it to sites, we’ve maintained normal operations there, we’ll continue to work with the customer into the extent they do idle that plant and they wish to ship coke to other facilities, we’ll do so that to their cost. Had we not seen any significant deviation or departure in our operations at the plant, we don’t anticipate it, we have a long-term take-or-pay agreement with U.S. Steel interestingly in the first announcement on Granite City earlier this year US Steel articulated themselves that at the reduce rate they were running at the time between their own clear and coke battery and our Granite City operations they were imbalanced. So we don’t anticipate any significant changes in our Granite City plant and we’ll have to -- we’ll monitor and work with the customer at Granite City. So coke balance, across the system what you have seen is -- you’ve seen a number of the coke plants they were permanently shut down in 2015. You’ve seen U.S. Steel permanently shut down their Gary plant, you’ve seen U.S. Steel coke plant I should say, you’ve seen U.S. Steel permanently shut down their Granite City coke plant. There is a…

Great, thanks for that. And then on separate note given that you’ve now completed the Convent Marine Terminal acquisition, can you talk about what are you seeing broadly in terms of trends in -- is an oil based and coke exports and then how confident are you in consistent export volumes going forward?

Well I would say that plant also has take-or-pay contracts. When you look at where we’re running today and then going back to the [common] chart, we had in the third quarter -- obviously we’d be closing the deal with our later in August but we had both transloaded volumes as well as we did had accrued volumes. So we’ll consider take-or-pay volumes. We had in the quarter 800,000 transloaded volumes and 200,000 we’ll call it crude volumes crude [times] based up with those which would be covered by take-or-pay. So you have seen softness, we’ll have more to say about 2016 also in December, but what we’ve seen and what we anticipate in the fourth quarter is that we will -- we’ll run the plant at or around where we have been running it, there will be some take-or-pay tons all of which are factored into the guidance that we provided about 20 million for 2015 and the 60 million annualized rate. I think it's certainly API 2 has been low, you’ve seen challenges in that system and so therefore what we’ve seen is both a pretty significant base load of volumes at Convent. But also there are going to be some take-or-pay tons.

Great. Thanks a lot.

[Operator Instructions] And our next question comes from Lucas Pipes from FBR. Please go ahead.

Hey good morning again. So I wanted to follow-up a little bit more on Indiana Harbor and I appreciate that we’ll probably get most of my questions answered in December. But to the extent possible, I believe in the past you've guided to 35 million to 45 million of EBITDA long-term at Indiana Harbor. How do you look at this long-term guidance today?

More to say about that in December Lucas. The plant itself if you look at 1.2 million tons if it ran the way was expected to and met all of the guidelines -- met all of the targets that is the rate at which the plant would run but it’s not run at that point and until it's stable we’re not going to talk about what the long-term capability is to the plant, we’ll have more to say about that in December.

And then just two circle back on the CapEx. You mentioned what has been invested so far and appreciate your sentiment as to the need to improve performance on the back of that investment, but listing your priorities today what do you think you still have to spend?

What we’ll have as we look into next year again we’ll have more to say about this in December, but we’re completing several rebuilds of quench towers at Indiana Harbor. We’re building some material handling investment into the plant, we’re doing some normal ongoing CapEx in the plant in order to improve its performance in environmental signature and the last piece we do anticipate we will likely build into our 2016 plan some additional oven rebuild similar to what we’ve done in the pilot test, but the nature what we planned to build into the capital plan for 2016, we’ll have more to say about it in December. And frankly I’ll have another two months of performance to assess before landing what that number is.

Our next question comes from Garrett Nelson from BB&T Capital Markets. Please go ahead.

With the dropdown of the remainder of Granite City during the quarter, could you talk about how you're thinking about the timeline and sequence and additional dropdowns? I assume the timeline for Indiana Harbor has been pushed out as you work through the challenges there but any detail on future dropdowns will be great.

I would say the timeline Garrett is interrupted. And if you look at the yield at the MLP, its dislocated from anything that would be rationale, and so until we see some correction in that yield we don't anticipate dropping assets down into the MLP, it would not be smart for either SXCP or SXC to do that. I would say operationally obviously Indiana Harbor even if the yield were improved, is delayed. Jewell, however, continues to operate very effectively. We've done the work necessary in Brazil. So I mean if we saw the yield more normalized so we could execute according to plan that we push off Indiana Harbor. But right now the yield suggests that we will not be doing dropdowns until we see a significant correction in the yield going forward.

[Operator Instructions]. And our next question comes from Kevin [indiscernible] from Nationwide. Please go ahead.

I would like to get some more detail behind the total debt number, that the 900 I guess 41 numbers that can consist of the seller financing from the terminal?

I'll let Fay answer that question, but the quick answer to that question is yes. So I'll let Fay walk you through within the total debt.

So we have a schedule that actually lays that out, our total debt at SXC is $999 million attributable to SXCP is $941 and there is $58 million at SXC. Included in the 941 is the seller financing that was attributable to that Convent acquisition. And there is also $45 million of bonds that were assumed by SXCP as part of the Granite City transaction, what’s remaining in SXC are the bonds that have been called and will be redeemed on October 22.

And if the go to kind of maintain that [indiscernible] to four time leverage going forward?

That is our plan.

That’s the plan. And particularly we’re going to call the bonds at the parent -- we already have actually, excuse me. So those will be redeemed shortly actually this month. And then at the MLP the 3.5 to 4 is our target leverage ratio. We do anticipate as I mentioned earlier this morning in the SXCP [call] Kevin that we'd use our coverage that comes from the Convent acquisition both repurchase units and delever, I think a tenth of the turn is $20 million of debt roughly. So I think we've got capability to both stay within that range, delever in small steps and repurchase units and that’s what we intend to do.

Any kind of comments on the rating agencies regarding outlook?

I'll let Fay answer that question.

So both Moody's and S&P reconfirmed our ratings, Moody's in July and S&P most recently. And they are comfortable with ratings -- with our leverage targets below 4.0 or [4.9].

And both agencies have stable outlook at this point.

Correct.

And our next question comes from Paul Luther from Bank of America, please go ahead.

Hi again, thanks for taking my question. Could you just give us maybe a quick update on the coal mining operations? I get you're not in a position to give 2016 update but can you talk about your capacity and maybe to cut cost further if prices continue to decline or if you have options to further look to purchase coal to for the Jewell coke facility and further rationalize coal.

Good questions. We will more to say about this in December, I feel like a broken record in that regard, but what we are doing today is we're executing in line with what we identified for 2015. Coal prices are declining, as we go into next year we anticipate they will decline and we're evaluating what additional measures we can take. You know we have flexibility given the steps we've taken to both purchase as well as contract mine that’s what we've done this year and we'll continue to evaluate if purchasing coal can meet our quality targets and are more cost effective we'll continue to push that way. And one of the reasons we did what we did in terms of frankly separating our entire hourly workforce and going to a contract mining model is to give us the flexibility to do that.

And we're showing no further questions.

All right, just wrapping it up, again I want to thank everybody for joining us this morning. Really want to thank my team actually for pulling forward earnings by 10 days. Don't expect this to be a trend for us but I think this is something that we felt was important given the news within the company and what we wanted to try to get accomplished. We want to get the information out into the market as quickly as we possibly could. We will have more to say about 2016 obviously in our Investor Day on December 17 and look forward to seeing you then, thank you.

Thank you ladies and gentlemen, this concludes today's conference, thank you for participating, you may now disconnect.