SAN FRANCISCO, CA--(Marketwired - Jan 12, 2016) - SunCoke Energy Partners, L.P. (
- Since its IPO in January 2013, raised quarterly cash distributions by 44%
- Intends to hold quarterly distributions at $.5940 per unit, or $2.376 annualized, in 2016
- Insulated from commodity price volatility due to key provisions in long-term take-or-pay contracts
- Consistent cash flow
- Strong sponsor support
SunCoke Energy Partners, L.P. (
Advisor Access spoke with Fritz Henderson about the future of SunCoke Energy.
Advisor Access: SXCP is a non-traditional MLP. What makes it unique and why is it well-suited for the MLP structure?
Fritz Henderson: SunCoke is the only publicly traded master limited partnership serving integrated steel producers. As a processor, refiner and handler of raw materials, we meet the definition of an MLP. To make coke, we heat metallurgical coal in large-scale, specially-designed ovens for about 48 hours. The high temperature burns off the coal's impurities and leaves behind a refined, carbon-rich product called coke. This coke gets mixed with iron ore and other elements, like limestone, and heated again in a blast furnace as part of the steel-making process.
Our coal logistics business generates MLP-qualifying income through the transloading of coal at our terminals in the Ohio River Valley, Great Lakes and Gulf Coast regions. We can handle up to 45 million tons each year.
We believe the MLP structure is an ideal way to highlight and value the stability of our business model. Our long-term, take-or-pay contracts at our coke plants and Gulf Coast terminal insulate us from commodity price risk. Those contracts, combined with our strong operational performance, help us deliver consistent cash flows.
AA: How do your customer relationships play into the company's core strengths?
Read the complete response to this question and the full interview with Chairman, President and CEO Fritz Henderson by clicking HERE.
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SunCoke Energy Partners, L.P. (
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