Suncoke Energy Partners fka SXCP

[Couch]

In general an MLP should be fully valued at 8 1/2 X distributable cash. Based on 3 qtr numbers that would be $40 million X 4 = $160 million X 8.5 =
$1360 million or $29.44 per unit. You are probably correct that SXC could get SXCP for $21 or so, but the true value is certainly higher than that. Maybe they will continue to buy at these "low" prices knowing that eventually they will have to pay higher for the hard core holdouts.

Appreciate your thoughts and the due diligence spelled out in such fashion. I agree the true value of SXCP is likely higher than $21. I was thinking along the lines if SXC offered $17.80 in the previous scenario and SXCP's BOD turned it down - that SXC would have to pony up at least 20% above that number to be taken seriously.

It certainly appears that management is serious about growing the business and knocking down the debt as quick as possible.

Say Could be better - you mind running me through where you found the info that an MLP should be fully valued at 8 1/2 distributable cash? Plus, how you came up with the other numbers especially the $29.44 per unit.

All the best,
Couch