Good morning. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to the SXC second quarter 2016 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. Kyle Bland, Director of Investor Relations, you may begin your conference.

Thanks Sylvie. Good morning and thank you for joining us to discuss SunCoke Energy’s second quarter 2016 earnings. With me are Fritz Henderson, our Chairman, President and Chief Executive Officer and Fay West, our Senior Vice President and Chief Financial Officer. Following the remarks made by management, we’ll open the call for Q&A. This conference call is being webcast live on the Investor Relations section of our website and a replay will be available for a few weeks. If we don’t get to your call today, your questions on the call today, please feel free to reach out to our Investor Relations team. Before I turn the call over to Fritz, let me remind you that the various remarks we make on today’s call, regarding future expectations, constitute forward-looking statements. And the cautionary language regarding forward-looking statements in our SEC filings apply to the remarks we make today. These documents are available on our website as the reconciliations to any non-GAAP measures discussed on today’s call. Now with that, I’ll turn it over to Fritz.

Thanks, Kyle and thank you all for joining the call this morning. I'll start off with Slide 2, I want to share our perspectives on the quarter. During the first half of the year as well, we'll talk a bit more about that in the next chart, but we remain on track to achieve our full year consolidated adjusted EBITDA guidance, driven by the solid performance of our coal fleet, particularly at Middletown, which is on track for a record year. In Indiana Harbor, we continue to see strong cost performance and improvement and tend to expand our rebuild initiative to address production challenges. Again I'll cover that a little bit later. In the first quarter, we were improved year-over-year, but nonetheless we still have significant amount of work ahead of us. In Indiana Harbor, on the logistics front, coal industry challenges in both this quarter, the second quarter and the first half drove lower volumes across our thermal operations, both export as well as domestic, but we've seen some recent stabilization in the market fundamentals as we enter the third quarter. Additionally in the quarter, we completed the divestiture of our coal mining business, which helped contribute -- help contribute to the year-over-year adjusted EBITDA improvement and we've already achieved our run rate go-forward cost target for that segment. From a capital allocation perspective, we continued our deleveraging efforts and reduced debt outstanding by over $57 million in the quarter on a consolidated basis, including $17 million in repurchases at SunCoke Energy Partners. We're pleased with the progress we made to date and remain ahead of schedule toward achieving our 2016 deleveraging objective. Finally as I mentioned we're reaffirming today our 2016 adjusted EBITDA guidance of between $210 million to $235 million, which assumes as it did when we…

Thanks Fritz. For the second quarter, consolidated adjusted EBITDA of $46.5 million was up $13.1 million versus the prior year period and this was driven primarily by the lapping of a $12.6 million non-cash pension termination charge, the benefit of CMT acquisition and improved costs performance at Indiana Harbor. Before moving forward and as a reminder, our adjusted EBITDA results now exclude Coal Logistics deferred revenue. This change in definition is in response to the new SEC guidelines and deferred revenue is now recognized in adjusted EBITDA when it is recorded as revenue under GAAP accounting, in this case typically by December of each year. This change in definition has not been contemplated in the consensus guidance and analysts reports. Good to note that if there was no change in adjusted EBITDA in the definition, adjusted EBITDA would have been $9 million higher. From an EPS perspective, the loss of $0.07 per share reflects improved operating income and includes a $5.1 million loss associated with the coal mining divestiture and a $3.5 million gain on debt extinguishment from our de-levering activities. Turning to Slide 5 and driving further into adjusted EBITDA results, you can see the $1.1 million performance improvement at Indiana Harbor was driven by disciplined cost management, but was partially offset by lower volumes and yields. While we're encouraged by the significant progress that we've made on cost control and by the performance of the oven rebuild, we continue to experience production challenges, which Fritz will go through in more detail later on the call. Excluding Indiana Harbor, the remainder of the coke business was impacted by several items including the timing of shipments at Jewell Coke, $1.3 million of coal transportation cost that were shifted from the coal mining business to Jewell Coke and the complete write…

Thanks Fay. Turning to Chart 9, as you can see in the second quarter, we once again achieved strong cost savings, resulting in $4.6 million in O&M savings versus the second quarter of ‘15. These savings are a result of a holistic and disciplined approach to cost management through the plant. We've netted approximately $10 million in savings through the first 6 months of the year. Late last year, as we were confronting the challenges in Indiana Harbor, one of the things I talked about was the importance of having a holistic approach to the plant, not only production but also cost capital and also environmental and health and safety performance. And we've approached Indiana Harbor in a holistic way as we've proceeded in 2016. Now the progress has been good on the cost side. The progress has not been satisfactory on the production side. But let me talk about the oven rebuild because the ovens that we've rebuilt -- we've evaluated another quarter of data from the 48 ovens we rebuilt last year. We remain encouraged by the sustained performance across those 48 ovens. We continue to analyze and monitor the results in order to optimize the design for future rebuilds that we expect to complete in 2016 and beyond. I'm going to talk about that more in a moment. But you can see the average charge weights of 39.8 tons in the second quarter -- excuse me, year-to-date ‘16 relative to a 39 ton average -- excuse me, target. You see coking rates, again -- charge weight, coking time. And on coking times, 45.1 hours average coking time versus a 46.5 target. So as we step back and look at the ovens that we've rebuilt, we're encouraged by their performance. But we also see areas where we can…

[Operator Instructions] You do have a question.

Excellent. Thank you.

Your first question comes from the line of Chad Caywood [ph].

My question is concerning the dividend, if the dividend is $0.59 and the units earned $0.23, where does -- you probably have covered this, and I apologies if you have, but how is the dividend to be paid?

Chad, the distribution, you were talking -- the $0.594 is at the MLP. So there's no dividend on the SXC shares. The dividend at SXCP or the MLP is a carryover from what it has been, and it's $0.594. And was that where you were getting that?

Yes. My question is if the units earned $0.23 and you're paying out $0.59, where does the rest of the money come from?

Okay. Did you -- were you on the call earlier this morning, Chad on the SunCoke Energy Partners call, where we went through distributable cash flow and coverage?

Clearly, I'm on the wrong call.

No problem. Tell you what, we'll follow-up with you directly because what we'd do is we'll take you through the metrics that show -- I mean, the coverage levels that we maintain at SunCoke Energy Partners are quite robust and support that distribution. We'll just follow up with you directly.

Thank you very much.

You're welcome.

There are no further questions at this time. I will turn the call back over to the presenters.

Great. Again, thank you very much for joining us this morning, for your interest and your investment in SunCoke Energy. Thank you.