NYSE:SXC SunCoke Energy Q3 2024 Earnings Report $9.55 -0.05 (-0.52%) Closing price 04/25/2025 03:59 PM EasternExtended Trading$9.49 -0.06 (-0.63%) As of 04/25/2025 07:55 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast SunCoke Energy EPS ResultsActual EPS$0.36Consensus EPS $0.22Beat/MissBeat by +$0.14One Year Ago EPS$0.08SunCoke Energy Revenue ResultsActual Revenue$490.10 millionExpected Revenue$412.70 millionBeat/MissBeat by +$77.40 millionYoY Revenue Growth-5.80%SunCoke Energy Announcement DetailsQuarterQ3 2024Date10/31/2024TimeBefore Market OpensConference Call DateThursday, October 31, 2024Conference Call Time11:00AM ETUpcoming EarningsSunCoke Energy's Q1 2025 earnings is scheduled for Wednesday, April 30, 2025, with a conference call scheduled at 11:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)SEC FilingEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by SunCoke Energy Q3 2024 Earnings Call TranscriptProvided by QuartrOctober 31, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good day, and welcome to the Third Quarter 2024 SunCoke Energy, Inc. Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask Please note this event is being recorded. I would now like to turn the conference over to Shantanu Agrawal, Vice President, Finance and Treasurer. Operator00:00:40Please go ahead. Speaker 100:00:43Thanks, Megan. Good morning and thank you for joining us this morning to discuss SunCoke Energy's Q3 2024 results. With me today are Catherine Gates, President and Chief Executive Officer and Mark Marinko, Senior Vice President and Chief Financial Officer. Following management's prepared remarks, we'll open the call for Q and A. This conference call is being webcast live on the Investor Relations section of our website and a replay will be available later today. Speaker 100:01:09If we do not get your questions on the call today, please feel free to reach out to our Investor Relations team. Before I turn things over to Catherine, let me remind you that the various remarks we make on today's call regarding future expectations constitute forward looking statements. 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 our reconciliations to non GAAP financial measures discussed on today's call. With that, I will now turn things over to Katherine. Speaker 200:01:42Thanks, Shantanu. Good morning, and thank you for joining us on today's call. This morning, we announced SunCoke Energy's 3rd quarter results. I want to share a few highlights from the quarter as well as some updates on our 2024 key initiatives. First, I would like to thank all of our employees for their contributions to our results. Speaker 200:02:01Our domestic coke plants continued to run at full capacity and our logistics terminals again had strong results. Through our collective efforts, we delivered consolidated adjusted EBITDA of $75,300,000 during the quarter. This includes a one time gain of $9,500,000 due to a regulatory exemption received from the Department of Labor that eliminates the majority of our legacy federal black lung liabilities. From a leverage perspective, we ended the quarter at 1.86 times on a trailing 12 months adjusted EBITDA basis. Finally, we are increasing our guidance and now expect full year consolidated adjusted EBITDA between $260,000,000 to $270,000,000 primarily driven by favorable logistics performance and the gain from the Department of Labor Speaker 300:02:50regulatory exemption. Turning to Slide 4 to discuss Speaker 200:02:50progress on our Exemption. Turning to Slide 4 to discuss progress on our 2024 key initiatives. We announced several other important accomplishments this morning that demonstrate progress on our 2024 key initiatives and position us well for the future. First, we're pleased to have reached an agreement with the United States Department of Labor regarding our legacy federal black lung liabilities. In exchange for a one time payment of $36,000,000 to the Department of Labor, SunCoke received a regulatory exemption, eliminating the majority of SunCoke's accrued black lung liabilities, totaling $45,500,000 As a result, we recognized a $9,500,000 pre tax gain during the quarter. Speaker 200:03:40Going forward, our annual legacy expenses will be lower and the year to year volatility will be greatly reduced. In addition, SunCoke will not be subject to potential higher collateral requirements in the future. 2nd, we've extended our Granite City coke supply agreement with U. S. Steel through June 30, 2025, with the option for U. Speaker 200:04:03S. Steel to extend for an additional 6 months. The agreement is for reduced tonnage, coupled with lower economics compared to the current contract. This extension is part of the ongoing GPI project work, and we expect it to bridge the period before a final agreement may be reached. Finally, we signed a 3 year barge to rail coal handling agreement at our KRT Logistics facility. Speaker 200:04:29To handle the incremental volume, we will be undertaking a $12,000,000 expansion project that will increase our barge unloading capacity from 2,000,000 tons per year to 5,000,000 tons per year. This project is expected to be completed in Q2 2025, after which the contract will begin. The contract builds upon this year's spot barge business at KRT. With that, I'll turn it over to Mark to review our Q3 earnings in detail. Mark? Speaker 300:05:00Thanks, Catherine. Turning to Slide 5. Net income attributable to SunCoke was $0.36 per share in the Q3 of 2024, up $0.28 versus the prior year period. The increase was primarily driven by the one time $9,500,000 pre tax gain on the elimination of legacy Black Lung liabilities. Lower depreciation expense, lower income tax expense and favorable logistics performance also contributed to the increase in net income attributable to SunCoke, but were partially offset by unfavorable performance in the domestic coke segment. Speaker 300:05:42Consolidated adjusted EBITDA for the Q3 of 2024 was $75,300,000 compared to $65,400,000 in the prior year period. The increase in adjusted EBITDA was primarily driven by the gain on the extinguishment of Black Lung Liabilities, higher volumes at domestic logistics terminals and higher API2 price adjustment benefit at CMT, partially offset by lower coal to coke yields on our long term take or pay contracts. Moving to Slide 6 to discuss our domestic coke performance business performance in detail. 3rd quarter domestic coke adjusted EBITDA was $58,100,000 and coke sales volumes were 1,000,000 27,000 tons. While domestic coke fleet continue to run at full capacity, the decrease in adjusted EBITDA as compared to the prior year period was primarily driven by lower coal to coke yields on our long term take or pay contracts. Speaker 300:06:45Due to the lower coal to coke yields we've been experiencing throughout the year, coupled with adverse weather impacts from Hurricane Helene in Q4, we are revising our full year domestic coke adjusted EBITDA guidance range to $230,000,000 to $235,000,000 from previous guidance range of $238,000,000 to $245,000,000 Now moving on to Slide 7 to discuss our logistics business. Our logistics business generated $13,700,000 of adjusted EBITDA in the Q3 of 2024 as compared to $8,400,000 in the Q3 of 2023. The increase in adjusted EBITDA was primarily driven by higher transloading volumes from our domestic terminals and higher API2 price adjustment benefit at CMT. We recognized the full API2 price adjustment benefit in Q3 and expect this to remain consistent in the Q4. Our terminals handled combined throughput volumes of 5,800,000 tons during the Q3 of 2024 as compared to 5,000,000 tons during the same prior year period. Speaker 300:08:01Our domestic terminals handled 3,800,000 tons in the Q3 of 2024 as compared to 2,900,000 tons during the same prior year period, driven by new business. Given the strong year to date results of our from our logistics segment, we are increasing our logistics adjusted EBITDA guidance to $47,000,000 to $52,000,000 for the full year. Additionally, we are increasing our full year 2024 total logistics volume guidance to approximately 22,000,000 tons, with CMT handling approximately 8,000,000 tons and domestic terminals handling approximately 14,000,000 tons. Now turning to Slide 8 to discuss our liquidity position for Q3. SunCoke ended the 3rd quarter with a cash balance of $164,700,000 and a fully undrawn revolver of $350,000,000 Net cash provided by operating activities was $107,200,000 Operating cash flow includes the impacts of the one time payment of $36,000,000 to the DOL and cash received from accounts receivable of approximately $68,000,000 received in early July. Speaker 300:09:22We paid $10,100,000 in dividends at the rate of $0.12 per share this quarter and spent $15,100,000 on CapEx. In total, we ended the quarter with a strong liquidity position of $514,700,000 With that, I will turn it back over to Catherine. Speaker 200:09:44Thanks, Mark. Wrapping up on Slide 9. We're pleased with the progress we've made on our key initiatives. As we close out 2024, we are dedicated to maintaining our strong safety and environmental performance. Robust safety and environmental standards set SunCoke apart and are central to our reliable delivery of high quality Coke and logistics services. Speaker 200:10:07We also have a proven track record of selling out our non contracted Coke for the full year and 2024 is no exception. We remain focused on safely executing against our operating and capital plan for full utilization of our coke making assets and we're pleased to have reached an agreement for an extension of our coke supply agreement with U. S. Steel at Granite City. For our Logistics segment, the new contract builds upon our existing foundation of reliable, high quality services at KRT. Speaker 200:10:37We are continually pursuing future opportunities to broaden our customer base in both our Domestic Coke and Logistics segments. The GPI project continues to be a top priority for SunCoke. The strong fundamentals of the project remain unchanged, and we continue to work on reaching a final agreement. As always, we take a balanced yet opportunistic approach to capital allocation. We further strengthened our balance sheet with the extinguishment of the majority of our legacy Black Lung liabilities, while also eliminating higher future collateral requirements. Speaker 200:11:12As we've demonstrated in the past, we continuously evaluate the capital needs of the business, our capital structure and the need to reward our shareholders and we'll make capital allocation decisions accordingly. Finally, factoring in our favorable logistics performance and the gain from the Black Lung Liability extinguishment, we are increasing our guidance and now expect to achieve full year consolidated adjusted EBITDA between $260,000,000 to $270,000,000 With that, let's go ahead and open up the call for Q and A. Operator00:11:45We will now begin the question and answer session. The first question comes from Lucas Pipes with B. Riley. Please go ahead. Speaker 400:12:20Yes. Thank you very much, operator. This is Nick Giles on for Lucas. Guys, congrats on the strong results and on the increased guidance as well. My first question was on the extension of the Granite City supply agreement. Speaker 400:12:37Where is this material going? Speaker 200:12:41That would really be a question for U. S. Steel. The coke is being sold to U. S. Speaker 200:12:45Steel. Speaker 400:12:48Got it. Got it. And then should we think about this extension having any relation to the progress of the GPI project or should we think about those as two completely separate items? Speaker 200:13:05No. This is really part of the GPI project as we've said. So this extension is built into the project. We continue to work on the GPI project and this extension is really part of that. We see this as really a bridge, while we have to unfortunately wait due to the government's inaction here. Speaker 200:13:32It's frankly, it's just really unfortunate that we're stuck in the limbo of the government's delay in not approving the sale of U. S. Steel to Nippon. And as a result of that, there's consequences for all parties here. And we continue to work on the GPI project with U. Speaker 200:13:52S. Steel. But at the same time, we're facing this delay and the Granite City contract extension really bridges that period, as we're in a holding pattern along with everyone else. And it's unfortunate because it has an impact to us at Granite City and our EBITDA there. But as we said, we continue to believe strongly in the project. Speaker 200:14:15The fundamentals of this project are so strong. And so, it's something that we're willing to accept, as we wait for the process to play out. Speaker 400:14:28Catherine, that's crystal clear. I really appreciate all the color and clarification. Maybe just one more before I turn it over. The capital investment of $12,000,000 at Kanawha, you mentioned some future opportunities. Could you just maybe expand on that certain geographies you're looking to target or have there been any capacity expansions from a customer perspective? Speaker 200:14:55I can't speak to the customers in terms of expansion, but we are constantly looking for new business at our logistics terminals and at our coke plants. And the $12,000,000 capital project will expand our barge to rail unloading capacity from 2,000,000 tons to 5,000,000 tons. So it certainly allows us to bring in a greater volume of business that we had before and we're just trying to build upon what we have put in place with this contract and the business that we saw this year. Speaker 400:15:35Got it. All right. Well, guys, really nice work and continue best of luck. Speaker 200:15:40Thanks. Thank you. Operator00:15:52This concludes our question and answer session. I would like to turn the conference back over to Catherine Gates, CEO and President for any closing remarks. Speaker 200:16:02Thank you all again for joining us this morning and for your continued interest in SunCoke. We look forward to speaking with you again in early 2025 when we will discuss our 2024 full year results and give 2025 guidance. Until then, let's continue to work safely and build value for all our stakeholders. Operator00:16:23The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallSunCoke Energy Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) SunCoke Energy Earnings HeadlinesZacks Industry Outlook Highlights SunCoke Energy and Ramaco ResourcesApril 25 at 12:58 PM | uk.finance.yahoo.comSunCoke Energy, Inc. Announces First Quarter 2025 Earnings DateApril 23, 2025 | businesswire.comFrom Social Security to Social Prosperity?In less than a decade, Social Security could be out of money. But a surprising plan from Trump’s inner circle may not just save the system — it could unlock a major opportunity for savvy investors. Financial insider Jim Rickards calls it “Social Prosperity,” and says those who act now could see the biggest gains.April 28, 2025 | Paradigm Press (Ad)Trump order looks to harness coal power to dominate AI - reportApril 8, 2025 | msn.comSunCoke: Rosy Outlook As Trump Boosts U.S. Coal, But Uncertainties RemainMarch 21, 2025 | seekingalpha.comSunCoke Energy, Inc. (SXC) Stock ForecastsMarch 7, 2025 | ca.finance.yahoo.comSee More SunCoke Energy Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like SunCoke Energy? Sign up for Earnings360's daily newsletter to receive timely earnings updates on SunCoke Energy and other key companies, straight to your email. Email Address About SunCoke EnergySunCoke Energy (NYSE:SXC) operates as an independent producer of coke in the Americas and Brazil. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. In addition, it owns and operates cokemaking facilities in the United States and Brazil. 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There are 5 speakers on the call. Operator00:00:00Good day, and welcome to the Third Quarter 2024 SunCoke Energy, Inc. Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask Please note this event is being recorded. I would now like to turn the conference over to Shantanu Agrawal, Vice President, Finance and Treasurer. Operator00:00:40Please go ahead. Speaker 100:00:43Thanks, Megan. Good morning and thank you for joining us this morning to discuss SunCoke Energy's Q3 2024 results. With me today are Catherine Gates, President and Chief Executive Officer and Mark Marinko, Senior Vice President and Chief Financial Officer. Following management's prepared remarks, we'll open the call for Q and A. This conference call is being webcast live on the Investor Relations section of our website and a replay will be available later today. Speaker 100:01:09If we do not get your questions on the call today, please feel free to reach out to our Investor Relations team. Before I turn things over to Catherine, let me remind you that the various remarks we make on today's call regarding future expectations constitute forward looking statements. 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 our reconciliations to non GAAP financial measures discussed on today's call. With that, I will now turn things over to Katherine. Speaker 200:01:42Thanks, Shantanu. Good morning, and thank you for joining us on today's call. This morning, we announced SunCoke Energy's 3rd quarter results. I want to share a few highlights from the quarter as well as some updates on our 2024 key initiatives. First, I would like to thank all of our employees for their contributions to our results. Speaker 200:02:01Our domestic coke plants continued to run at full capacity and our logistics terminals again had strong results. Through our collective efforts, we delivered consolidated adjusted EBITDA of $75,300,000 during the quarter. This includes a one time gain of $9,500,000 due to a regulatory exemption received from the Department of Labor that eliminates the majority of our legacy federal black lung liabilities. From a leverage perspective, we ended the quarter at 1.86 times on a trailing 12 months adjusted EBITDA basis. Finally, we are increasing our guidance and now expect full year consolidated adjusted EBITDA between $260,000,000 to $270,000,000 primarily driven by favorable logistics performance and the gain from the Department of Labor Speaker 300:02:50regulatory exemption. Turning to Slide 4 to discuss Speaker 200:02:50progress on our Exemption. Turning to Slide 4 to discuss progress on our 2024 key initiatives. We announced several other important accomplishments this morning that demonstrate progress on our 2024 key initiatives and position us well for the future. First, we're pleased to have reached an agreement with the United States Department of Labor regarding our legacy federal black lung liabilities. In exchange for a one time payment of $36,000,000 to the Department of Labor, SunCoke received a regulatory exemption, eliminating the majority of SunCoke's accrued black lung liabilities, totaling $45,500,000 As a result, we recognized a $9,500,000 pre tax gain during the quarter. Speaker 200:03:40Going forward, our annual legacy expenses will be lower and the year to year volatility will be greatly reduced. In addition, SunCoke will not be subject to potential higher collateral requirements in the future. 2nd, we've extended our Granite City coke supply agreement with U. S. Steel through June 30, 2025, with the option for U. Speaker 200:04:03S. Steel to extend for an additional 6 months. The agreement is for reduced tonnage, coupled with lower economics compared to the current contract. This extension is part of the ongoing GPI project work, and we expect it to bridge the period before a final agreement may be reached. Finally, we signed a 3 year barge to rail coal handling agreement at our KRT Logistics facility. Speaker 200:04:29To handle the incremental volume, we will be undertaking a $12,000,000 expansion project that will increase our barge unloading capacity from 2,000,000 tons per year to 5,000,000 tons per year. This project is expected to be completed in Q2 2025, after which the contract will begin. The contract builds upon this year's spot barge business at KRT. With that, I'll turn it over to Mark to review our Q3 earnings in detail. Mark? Speaker 300:05:00Thanks, Catherine. Turning to Slide 5. Net income attributable to SunCoke was $0.36 per share in the Q3 of 2024, up $0.28 versus the prior year period. The increase was primarily driven by the one time $9,500,000 pre tax gain on the elimination of legacy Black Lung liabilities. Lower depreciation expense, lower income tax expense and favorable logistics performance also contributed to the increase in net income attributable to SunCoke, but were partially offset by unfavorable performance in the domestic coke segment. Speaker 300:05:42Consolidated adjusted EBITDA for the Q3 of 2024 was $75,300,000 compared to $65,400,000 in the prior year period. The increase in adjusted EBITDA was primarily driven by the gain on the extinguishment of Black Lung Liabilities, higher volumes at domestic logistics terminals and higher API2 price adjustment benefit at CMT, partially offset by lower coal to coke yields on our long term take or pay contracts. Moving to Slide 6 to discuss our domestic coke performance business performance in detail. 3rd quarter domestic coke adjusted EBITDA was $58,100,000 and coke sales volumes were 1,000,000 27,000 tons. While domestic coke fleet continue to run at full capacity, the decrease in adjusted EBITDA as compared to the prior year period was primarily driven by lower coal to coke yields on our long term take or pay contracts. Speaker 300:06:45Due to the lower coal to coke yields we've been experiencing throughout the year, coupled with adverse weather impacts from Hurricane Helene in Q4, we are revising our full year domestic coke adjusted EBITDA guidance range to $230,000,000 to $235,000,000 from previous guidance range of $238,000,000 to $245,000,000 Now moving on to Slide 7 to discuss our logistics business. Our logistics business generated $13,700,000 of adjusted EBITDA in the Q3 of 2024 as compared to $8,400,000 in the Q3 of 2023. The increase in adjusted EBITDA was primarily driven by higher transloading volumes from our domestic terminals and higher API2 price adjustment benefit at CMT. We recognized the full API2 price adjustment benefit in Q3 and expect this to remain consistent in the Q4. Our terminals handled combined throughput volumes of 5,800,000 tons during the Q3 of 2024 as compared to 5,000,000 tons during the same prior year period. Speaker 300:08:01Our domestic terminals handled 3,800,000 tons in the Q3 of 2024 as compared to 2,900,000 tons during the same prior year period, driven by new business. Given the strong year to date results of our from our logistics segment, we are increasing our logistics adjusted EBITDA guidance to $47,000,000 to $52,000,000 for the full year. Additionally, we are increasing our full year 2024 total logistics volume guidance to approximately 22,000,000 tons, with CMT handling approximately 8,000,000 tons and domestic terminals handling approximately 14,000,000 tons. Now turning to Slide 8 to discuss our liquidity position for Q3. SunCoke ended the 3rd quarter with a cash balance of $164,700,000 and a fully undrawn revolver of $350,000,000 Net cash provided by operating activities was $107,200,000 Operating cash flow includes the impacts of the one time payment of $36,000,000 to the DOL and cash received from accounts receivable of approximately $68,000,000 received in early July. Speaker 300:09:22We paid $10,100,000 in dividends at the rate of $0.12 per share this quarter and spent $15,100,000 on CapEx. In total, we ended the quarter with a strong liquidity position of $514,700,000 With that, I will turn it back over to Catherine. Speaker 200:09:44Thanks, Mark. Wrapping up on Slide 9. We're pleased with the progress we've made on our key initiatives. As we close out 2024, we are dedicated to maintaining our strong safety and environmental performance. Robust safety and environmental standards set SunCoke apart and are central to our reliable delivery of high quality Coke and logistics services. Speaker 200:10:07We also have a proven track record of selling out our non contracted Coke for the full year and 2024 is no exception. We remain focused on safely executing against our operating and capital plan for full utilization of our coke making assets and we're pleased to have reached an agreement for an extension of our coke supply agreement with U. S. Steel at Granite City. For our Logistics segment, the new contract builds upon our existing foundation of reliable, high quality services at KRT. Speaker 200:10:37We are continually pursuing future opportunities to broaden our customer base in both our Domestic Coke and Logistics segments. The GPI project continues to be a top priority for SunCoke. The strong fundamentals of the project remain unchanged, and we continue to work on reaching a final agreement. As always, we take a balanced yet opportunistic approach to capital allocation. We further strengthened our balance sheet with the extinguishment of the majority of our legacy Black Lung liabilities, while also eliminating higher future collateral requirements. Speaker 200:11:12As we've demonstrated in the past, we continuously evaluate the capital needs of the business, our capital structure and the need to reward our shareholders and we'll make capital allocation decisions accordingly. Finally, factoring in our favorable logistics performance and the gain from the Black Lung Liability extinguishment, we are increasing our guidance and now expect to achieve full year consolidated adjusted EBITDA between $260,000,000 to $270,000,000 With that, let's go ahead and open up the call for Q and A. Operator00:11:45We will now begin the question and answer session. The first question comes from Lucas Pipes with B. Riley. Please go ahead. Speaker 400:12:20Yes. Thank you very much, operator. This is Nick Giles on for Lucas. Guys, congrats on the strong results and on the increased guidance as well. My first question was on the extension of the Granite City supply agreement. Speaker 400:12:37Where is this material going? Speaker 200:12:41That would really be a question for U. S. Steel. The coke is being sold to U. S. Speaker 200:12:45Steel. Speaker 400:12:48Got it. Got it. And then should we think about this extension having any relation to the progress of the GPI project or should we think about those as two completely separate items? Speaker 200:13:05No. This is really part of the GPI project as we've said. So this extension is built into the project. We continue to work on the GPI project and this extension is really part of that. We see this as really a bridge, while we have to unfortunately wait due to the government's inaction here. Speaker 200:13:32It's frankly, it's just really unfortunate that we're stuck in the limbo of the government's delay in not approving the sale of U. S. Steel to Nippon. And as a result of that, there's consequences for all parties here. And we continue to work on the GPI project with U. Speaker 200:13:52S. Steel. But at the same time, we're facing this delay and the Granite City contract extension really bridges that period, as we're in a holding pattern along with everyone else. And it's unfortunate because it has an impact to us at Granite City and our EBITDA there. But as we said, we continue to believe strongly in the project. Speaker 200:14:15The fundamentals of this project are so strong. And so, it's something that we're willing to accept, as we wait for the process to play out. Speaker 400:14:28Catherine, that's crystal clear. I really appreciate all the color and clarification. Maybe just one more before I turn it over. The capital investment of $12,000,000 at Kanawha, you mentioned some future opportunities. Could you just maybe expand on that certain geographies you're looking to target or have there been any capacity expansions from a customer perspective? Speaker 200:14:55I can't speak to the customers in terms of expansion, but we are constantly looking for new business at our logistics terminals and at our coke plants. And the $12,000,000 capital project will expand our barge to rail unloading capacity from 2,000,000 tons to 5,000,000 tons. So it certainly allows us to bring in a greater volume of business that we had before and we're just trying to build upon what we have put in place with this contract and the business that we saw this year. Speaker 400:15:35Got it. All right. Well, guys, really nice work and continue best of luck. Speaker 200:15:40Thanks. Thank you. Operator00:15:52This concludes our question and answer session. I would like to turn the conference back over to Catherine Gates, CEO and President for any closing remarks. Speaker 200:16:02Thank you all again for joining us this morning and for your continued interest in SunCoke. We look forward to speaking with you again in early 2025 when we will discuss our 2024 full year results and give 2025 guidance. Until then, let's continue to work safely and build value for all our stakeholders. Operator00:16:23The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.Read morePowered by