SXCP owns a new state of the art coke manufacturing facility when most other manufacturing plants are old and being retired. Plus the new facility is much more efficient than the older plants. SXCP operates under long term take or pay contracts - none of which terminate before 2020 and most of which last much longer. SXCP's steel customers are the giants of the industry and are creditworthy. Over the long term, SXCP has been reducing debt from $941 million in Q3 2015 to $813 million in Q1 2017. If that 600 million you mention is for debt in the current quarter than I'd say SXCP is doing a solid job of knocking its debt down.
While I haven't looked at when the debt is due plenty of companies have been pushing their debt out further with lower interest rates. I wouldn't be surprised to see SXCP due this if SXC doesn't buy them out within the next 6 months. An SXC will need IMO to offer SXCP 20% higher than the previous buyout price of $17.80. So anything about $21 and I'd bet the buyout goes through this time.
Q1 2017 - First quarter numbers looke very good. In comparison with Q1 2016, EBITDA was up to $50.9 million from $47.3 million. DCF was down to $37.1 million from $45.9 million largely due to the $7 million dollar impact of the corporate cost holiday in Q1 2016. The most variable part of SXCP's business - coal logistics - is doing very well with the Convent terminal experiencing the highest volumes since its acquisition in 2015.
The most recent quarter EBITDA guidance for the full year ($210-220 million). I'm expecting 220 million so I don't see a problem with SXCP's debt load moving forward. In fact the company's numbers were the company's best ever from an operating perspective.
That should answer a few of your questions though not all. Let's call it a start shall we.
Appreciate the questions.
My best,
Couch
Fear Uncertainty and Doubt FUD It Ain't Going To Work Here Anymore. Notice the lack of question mark.
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