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UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-K

(Mark One)

ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2018 or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from to

Commission File Number 001-35782

SUNCOKE ENERGY PARTNERS, L.P.

(Exact name of Registrant as specified in its charter)

Delaware 35-2451470

(State of or other jurisdiction ofincorporation or organization)

(I.R.S. EmployerIdentification No.)

1011 Warrenville Road, Suite 600Lisle, Illinois 60532

(Address of principal executive offices) (zip code)Registrant’s telephone number, including area code: (630) 824-1000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class Name of Each Exchange on which RegisteredCommon units representing limited partner interests New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes¨NoýIndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13or15(d)oftheAct.Yes¨NoýIndicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthe

preceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.YesýNoo

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-Tduringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).YesýNoo

IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-Kisnotcontainedherein,andwillnotbecontained,tothebestofregistrant’sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.o

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompanyoranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.

Largeacceleratedfiler ¨ Acceleratedfiler ý

Non-acceleratedfiler o Smallerreportingcompany ¨

Emerginggrowthcompany ¨

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.¨

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes¨NoýTheaggregatemarketvalueoftheregistrant'scommonunitsheldbynon-affiliatesoftheregistrant(treatingdirectorsandexecutiveofficersoftheregistrant’sgeneral

partnerandholdersof10percentormoreofthecommonunitsoutstanding,forthispurpose,asaffiliatesoftheregistrant)asofJune30,2018was$251,920,809,computedbasedonapricepercommonunitof$14.22,thepriceatwhichthecommonunitswerelastsoldasreportedontheNewYorkStockExchangeonsuchdate.

AsofFebruary8,2019,theregistranthad46,227,148commonunitsoutstanding.

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SUNCOKE ENERGY PARTNERS, L.P.

TABLE OF CONTENTS

PART I

Item1. Business 1

Item1A. RiskFactors 12

Item1B. UnresolvedStaffComments 39

Item2. Properties 39

Item3. LegalProceedings 39

Item4. MineSafetyDisclosures 39PART II

Item5. MarketforRegistrant’sCommonEquity,RelatedStockholdersMattersandIssuerPurchasesofEquitySecurities 40

Item6. SelectedFinancialData 41

Item7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 42

Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 56

Item8. FinancialStatementsandSupplementaryData 57

Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 86

Item9A. ControlsandProcedures 86

Item9B. OtherInformation 87PART III

Item10. Directors,ExecutiveOfficersandCorporateGovernance 88

Item11. ExecutiveCompensation 93

Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 100

Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 103

Item14. PrincipalAccountingFeesandServices 105PART IV

Item15. Exhibits,FinancialStatementSchedules 107

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PART I

Item 1. Business

Overview

SunCokeEnergyPartners,L.P.,(the“Partnership,”“we,”“our”and“us”),primarilyproducescokeusedintheblastfurnaceproductionofsteel.Cokeisaprincipalrawmaterialintheblastfurnacesteelmakingprocessandisproducedbyheatingmetallurgicalcoalinarefractoryoven,whichreleasescertainvolatilecomponentsfromthecoal,thustransformingthecoalintocoke.Wealsoprovidehandlingand/ormixingservicestosteel,coke(includingsomeofourandSunCokeEnergy,Inc.'s(“SunCoke”)domesticcokemakingfacilities),electricutility,coalproducingandothermanufacturingbasedcustomers.

AtDecember31,2018,weowneda98percentinterestinHaverhillCokeCompanyLLC(“Haverhill”),MiddletownCokeCompany,LLC(“Middletown”)andGatewayEnergyandCokeCompany,LLC(“GraniteCity”)andSunCokeownedtheremaining2percentinterestineachofHaverhill,Middletown,andGraniteCity.ThePartnershipalsoownsa100percentinterestinallofitslogisticsterminals.Throughitssubsidiary,SunCokeowneda60.4percentlimitedpartnershipinterestinusandindirectlyownedandcontrolsourgeneralpartner,whichholdsa2percentgeneralpartnerinterestinusandallofourincentivedistributionrights(“IDRs”).

OnFebruary5,2019,SunCokeandthePartnershipannouncedthattheyhaveenteredintoadefinitiveagreementwherebySunCokewillacquirealloutstandingcommonunitsofthePartnershipnotalreadyownedbySunCokeinastock-for-unitmergertransaction(the“SimplificationTransaction”).Pursuanttothetermsofthisagreement(“MergerAgreement”),Partnershipunaffiliatedcommonunitholderswillreceive1.40SunCokecommonshares,plusafractionofaSunCokecommonsharebasedonaratioasfurtherdescribedintheMergerAgreement,foreachPartnershipcommonunit.OnbehalfofthePartnershipanditspublicunitholders,thetermsoftheSimplificationTransactionwerenegotiated,reviewedandapprovedbytheconflictscommitteeoftheBoardofDirectorsofthePartnership'sgeneralpartner,whichconsistedsolelyofindependentdirectors.ThetransactionwasapprovedbytheBoardofDirectorsofthegeneralpartnerofthePartnershipandtheBoardofDirectorsofSunCoke.

FollowingcompletionoftheSimplificationTransaction,thePartnershipwillbecomeawholly-ownedsubsidiaryofSunCoke,thePartnership'scommonunitswillceasetobepubliclytradedandthePartnership'sIDRswillbeeliminated.TheSimplificationTransactionisexpectedtocloselateinthesecondquarterof2019orearlyinthethirdquarterof2019,subjecttocustomaryclosingconditions,includingtheapprovalbyholdersofamajorityoftheoutstandingSunCokecommonsharesandPartnershipcommonunits,aswellascustomaryregulatoryapprovals.SunCokeindirectlyownsthemajorityofthePartnershipcommonunits,whichissufficienttoapprovethetransactiononbehalfoftheholdersofPartnershipcommonunits.

WewereorganizedinDelawaresinceJuly2012,andareheadquarteredinLisle,Illinois.Weareamasterlimitedpartnershipwhosecommonunits,representinglimitedpartnershipinterests,werefirstlistedfortradingontheNewYorkStockExchange(“NYSE”)inJanuary2013underthesymbol“SXCP.”

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Cokemaking Operations

Thefollowingtablesetsforthinformationaboutourcokemakingfacilities:

Facility Location Coke Customer Year of

Start Up Contract

Expiration Number of

Coke Ovens

Annual CokemakingNameplateCapacity

(thousands of tons) Use of Waste HeatHaverhillI FranklinFurnace,Ohio AMUSA 2005 December2020 100 550 ProcesssteamHaverhillII FranklinFurnace,Ohio AKSteel 2008 December2021 100 550 PowergenerationMiddletown(1) Middletown,Ohio AKSteel 2011 December2032 100 550 PowergenerationGraniteCity

GraniteCity,

Illinois U.S.Steel

2009

December2025

120

650

Steamforpowergeneration

Total 420 2,300

(1) Cokemakingnameplatecapacityrepresentsstatedcapacityfortheproductionofblastfurnacecoke.Middletownproductionandsalesvolumesarebasedon“runofoven”capacity,whichincludesbothblastfurnacecokeandsmallcoke.Usingthestatedcapacity,Middletownnameplatecapacityona“runofoven”basisisapproximately578thousandtonsperyear.

Together,weandSunCokearethelargestindependentproducerofhigh-qualitycokeintheAmericas,asmeasuredbytonsofcokeproducedeachyear,and,inouropinion,SunCokeisthetechnologicalleaderinthecokemakingprocesswithover55yearsofcokeproductionexperience.SunCokedesigned,developed,built,andcurrentlyownsandoperatesfivecokemakingfacilitiesintheUnitedStates(“U.S.”)(including,togetherwithus,Haverhill,MiddletownandGraniteCity)withanaggregatecokeproductioncapacityofapproximately4.2milliontonsperyear.Ourcokemakingovenshavecollectivecapacitytoproduce2.3milliontonsofcokeannuallyandutilizeefficient,modernheatrecoverytechnologydesignedtocombustthecoal’svolatilecomponentsliberatedduringthecokemakingprocessandusetheresultingheattocreatesteamorelectricityforsale.Thisdiffersfromby-productcokemaking,whichseekstorepurposethecoal’sliberatedvolatilecomponentsforotheruses.SunCokehasconstructedtheonlygreenfieldcokemakingfacilityintheU.S.inapproximately30yearsandistheonlyNorthAmericancokeproducerthatutilizesheatrecoverytechnologyinthecokemakingprocess.

SunCoke'sadvancedheatrecoverycokemakingprocesshasnumerousadvantagesoverby-productcokemaking,includingproducinghigherqualitycoke,usingwasteheattogeneratederivativeenergyforresaleandreducingtheenvironmentalimpact.TheCleanAirActAmendmentsof1990specificallydirectedtheU.S.EnvironmentalProtectionAgency(“EPA”)toevaluateitsheatrecoverycokeoventechnologyasabasisforestablishingMaximumAchievableControlTechnology(“MACT”)standardsfornewcokemakingfacilities.Inaddition,eachofthefourcokemakingfacilitiesthatSunCokehasbuiltsince1990haseithermetorexceededtheapplicableBestAvailableControlTechnology(“BACT”),orLowestAchievableEmissionRate(“LAER”)standards,asapplicable,setforthbytheEPAforcokemakingfacilitiesatthattime.

OurGraniteCityfacilityandthefirstphaseofourHaverhillfacility,orHaverhillI,havesteamgenerationfacilitieswhichusehotfluegasfromthecokemakingprocesstoproducesteamforsaletocustomerspursuanttosteamsupplyandpurchaseagreements.GraniteCitysellssteamtoUnitedStatesSteelCorporation("U.S.Steel")andHaverhillIprovidessteam,atminimalcost,toAltiviaPetrochemicals,LLC.OurMiddletownfacilityandthesecondphaseofourHaverhillfacility,orHaverhillII,havecogenerationplantsthatusethehotfluegascreatedbythecokemakingprocesstogenerateelectricity,whicheitherissoldintotheregionalpowermarketortoAKSteelHoldingCorporation("AKSteel")pursuanttoenergysalesagreements.

Ourcorebusinessmodelispredicatedonprovidingsteelmakersanalternativetoinvestingcapitalintheirowncaptivecokeproductionfacilities.Wedirectourmarketingeffortsprincipallytowardssteelmakingcustomersthatrequirecokeforuseintheirblastfurnaces.Substantiallyallofourcokesalesweremadepursuanttolong-term,take-or-payagreementswithAKSteel,ArcelorMittalUSALLCand/oritsaffiliates(“AMUSA”)andU.S.Steel,threeofthelargestblastfurnacesteelmakersinNorthAmerica,eachofwhichindividuallyaccountsforgreaterthantenpercentofourconsolidatedrevenues.Thetake-or-payprovisionsrequireustoproducethecontractedvolumesofcokeandrequireourcustomerstopurchasesuchvolumesofcokeuptoaspecifiedtonnageorpaythecontractpriceforanytonnagetheyelectnottotake.Asaresult,ourabilitytoproducethecontractedcokevolumeisakeydeterminantofourprofitability.Wegenerallydonothavesignificantspotcokesalessinceourcapacityisconsumedbylong-termcontracts;accordingly,spot

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pricesforcokedonotgenerallyaffectourrevenues.Todate,ourcokecustomershavesatisfiedtheirobligationsundertheseagreements.

Ourcokesalesagreementshaveanaverageremainingtermofapproximatelysevenyearsandcontainpass-throughprovisionsforcostsweincurinthecokemakingprocess,includingcoalandcoalprocurementcostssubjecttomeetingcontractualcoal-to-cokeyields,operatingandmaintenancecosts,costsrelatedtotransportationofcoketoourcustomers,taxes(otherthanincometaxes)andcostsassociatedwithchangesinregulation.Whentargetedcoal-to-cokeyieldsareachieved,thepriceofcoalisnotasignificantdeterminingfactorintheprofitabilityofthesefacilities,althoughitdoesaffectourrevenueandcostofsalesforthesefacilitiesinapproximatelyequalamounts.However,totheextentthattheactualcoal-to-cokeyieldsarelessthanthecontractualstandard,weareresponsibleforthecostoftheexcesscoalusedinthecokemakingprocess.Conversely,totheextentouractualcoal-to-cokeyieldsarehigherthanthecontractualstandard,werealizegains.Ascoalpricesincrease,thebenefitsassociatedwithfavorablecoal-to-cokeyieldsalsoincrease.Thesefeaturesofourcokesalesagreementsreduceourexposuretovariabilityincoalpricechangesandinflationarycostsovertheremainingtermsoftheseagreements.

Ourcokepricesincludebothanoperatingcostcomponentandafixedfeecomponent.Operatingcostsunderthreeofourcokesalesagreementsarepassedthroughtotherespectivecustomerssubjecttoanannuallynegotiatedbudget,insomecasessubjecttoacapannuallyadjustedforinflation,andweshareanydifferenceincostsfromthebudgetedamountswithourcustomers.Underouroneothercokesalesagreement,theoperatingcostcomponentforourcokesalesarefixedsubjecttoanannualadjustmentbasedonaninflationindex.Accordingly,actualoperatingcostsinexcessofcapsorbudgetscanhaveasignificantimpactontheprofitabilityofallourdomesticcokemakingfacilities.Thefixedfeecomponentforeachtonofcokesoldtothecustomerisdeterminedatthetimethecokesalesagreementissignedandiseffectiveforthetermofeachsalesagreement.Thefixedfeeisintendedtoprovideanadequatereturnoninvestedcapitalandmaydifferbasedoninvestmentlevelsandotherconsiderations.Theactualreturnoninvestedcapitalatanyfacilityisbasedonthefixedfeepertonandfavorableorunfavorableperformanceonpass-throughcostitems.

ThecokesalesagreementandenergysalesagreementwithAKSteelatourHaverhillfacilityaresubjecttoearlyterminationbyAKSteelonlyifAKSteelmeetsbothofthefollowingtwocriteria:(1)AKSteelpermanentlyshutsdownoperationoftheironproducingportionofitsAshlandWorksPlantand(2)AKSteelhasnotacquiredorbegunconstructionofanewblastfurnaceintheU.S.toreplace,inwholeorinpart,theAshlandWorksPlantironproductioncapacity.IfAKSteelwereabletosatisfybothcriteriaandchosetoelectearlytermination,AKSteelmustprovidetwoyearsadvancenoticeofthetermination.Duringthetwo-yearnoticeperiod,AKSteelmustcontinuetoperforminfullunderthetermsofthecokesalesagreementandenergysalesagreement.OnJanuary28,2019,AKSteelannounceditsintentiontopermanentlycloseitsAshlandWorksPlantbytheendof2019.WeretheAshlandWorksPlanttopermanentlyshutdown,webelieveAKSteelhasnotandwouldnotsatisfythesecondcriterion.Noothercokesalesagreementhasanearlyterminationclause.

Whileoursteelmakingcustomerscontinuetooperateinanenvironmentthatischallengedbyglobalovercapacity,throughout2018theybenefitedfromimprovedsteelpricing,favorabletradepolicies,includingU.S.steeltariffssignedintoorderduringthefirsthalfof2018,andsolidendmarketdemand.Importsoffinishedsteelhavedecreasedfrom27percentofU.S.steelconsumptionin2017toapproximately23percentofU.S.steelconsumptionin2018.U.S.SteelrestartedbothoftheblastfurnacesatitsGraniteCityWorksfacilityduring2018.

Logistics OperationsOurlogisticsbusinessconsistsofConventMarineTerminal(“CMT”),KanawhaRiverTerminal(“KRT”)andSunCokeLakeTerminal(“Lake

Terminal”).CMT,locatedinConvent,Louisiana,isoneofthelargestexportterminalsontheU.S.GulfCoast.CMTprovidesstrategicaccesstoseabornemarketsforcoalandotherbulkmaterials.Supportinglow-costIllinoisbasincoalproducers,theterminalprovidesloadingandunloadingservicesandhasdirectrailaccessandthecurrentcapabilitytotransload15milliontonsannuallyduetoitstopofthelineshiploader.Thefacilityissupportedbylong-termcontractswithvolumecommitmentscovering10milliontonsofitscurrentcapacityaswellas350thousandliquidtons.Thefacilityalsoservesothermerchantbusinessincludingaggregates(crushedstone)andpetroleumcoke.CMT'sefficientbargeunloadingcapabilitiescomplementitsrailandtruckofferingsandprovidetheterminalwiththeabilitytotransloadandmixasignificantlybroadervarietyofmaterials,includingcoal,petroleumcokeandothermaterialsfrombargesatitsdock.KRTisaleadingmetallurgicalandthermalcoalmixingandhandlingterminalserviceproviderwithcollectivecapacitytomixandtransload25milliontonsannuallythroughitsoperationsinCeredoandBelle,WestVirginia.LakeTerminalislocatedinEastChicago,IndianaandprovidescoalhandlingandmixingservicestoSunCoke'sIndianaHarborcokemakingoperations.

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Ourlogisticsbusinesshasthecollectivecapacitytomixand/ortransloadmorethan40milliontonsofcoalandotheraggregatesannuallyandhasstoragecapacityofapproximately3milliontons.Ourterminalsactasintermediariesbetweenourcustomersandendusersbyprovidingtransloadingandmixingservices.Materialsaretransportedinnumerousways,includingrail,truck,bargeorship.Wedonottakepossessionofmaterialshandledbutinsteadderiveourrevenuebyprovidinghandlingand/ormixingservicestoourcustomersonapertonbasis.Revenuesarerecognizedwhenservicesareprovidedasdefinedbycustomercontracts.SeeNote14toourconsolidatedfinancialstatementsforourrevenuerecognitionpolicies.LogisticsservicesprovidedtoourandSunCoke'sdomesticcokemakingfacilitiesareprovidedundercontractswithtermsequivalenttothoseofanarm's-lengthtransactions.

Thefinancialperformanceofourlogisticsbusinessissubstantiallydependentuponalimitednumberofcustomers.OurCMTcustomersareimpactedbyseaborneexportmarketdynamics.FluctuationsinthebenchmarkpriceforcoaldeliveryintonorthwestEurope,asreferencedintheArgus/McCloskey'sCoalPriceIndexreport(“API2indexprice”),aswellasNewcastleindexcoalprices,asreferencedintheArgus/McCloskey'sCoalPriceIndexreport(“API5indexprice”),whichreflecthigh-ashcoalpricesshippedfromAustralia,contributetoourcustomers'decisionstoplacetonsintotheexportmarketandthusimpacttransloadingvolumesthroughourterminalfacility.OurKRTterminalsservetwoprimarydomesticmarkets,metallurgicalcoaltradeandthermalcoaltrade.Metallurgicalmarketsareprimarilyimpactedbysteelpricesandblastfurnaceoperatinglevelswhereasthermalmarketsareimpactedbynaturalgaspricesandelectricitydemand.

StrongAPI2andAPI5indexpricescontinuedtoprovideattractiveeconomicsforIllinoisBasinandNorthernAppalachiancoalproducersduring2018,whichresultedinrecordvolumesatourCMTfacility.In2018,theMississippiRiverexperiencednear-historicwaterlevels,whichadverselyimpactedourbargeunloadingandourvesselloadingactivitiesatCMT.AtKRT,domesticmetallurgicalandthermalmarketconditionsandvolumeswerefavorablein2018comparedto2017duetoincreaseddemandfromsteelandutilitycustomers.However,KRTvolumesweresuppressedduring2018byrailavailabilityduetostrongdemandfordrybulkproductsintheexportmarket.

Seasonality

Ourrevenuesinourcokemakingbusinessandmuchofourlogisticsbusinessaretiedtolong-term,take-or-paycontracts,andassuch,arenotseasonal.However,ourcokemakingprofitabilityistiedtocoal-to-cokeyields,whichimproveindrierweather.Accordingly,thecoal-to-cokeyieldcomponentofourprofitabilitytendstobemorefavorableinthethirdquarter.Extremeweatherconditionsmayalsochallengeouroperatingcostsandproductioninthewintermonthsforourdomesticcokebusiness.KRTservicedemandfluctuatesduetochangesinthedomesticelectricitymarkets.Excessivelyhotsummerweatherorcoldwinterweathermayincreasecommercialandresidentialneedsforheatorairconditioning,whichinturnmayincreaseelectricityusageandthedemandforthermalcoaland,therefore,mayfavorablyimpactourlogisticsbusiness.Additionally,atCMT,servicefluctuateswithglobalthermalcoalpricesandendmarketdemand.Activityisgenerallylowerinthethirdquarter,typicallyduetolowerEuropeandemandforheat.OperatingcostsatCMTareimpactedbywaterlevelsontheMississippiRiver,whichareoftenhigherinthespringmonths.

Raw Materials

Metallurgicalcoalistheprincipalrawmaterialforourcokemakingoperations.Allofthemetallurgicalcoalusedtoproducecokeatourcokemakingfacilitiesispurchasedfromthird-parties.WebelievethereisanadequatesupplyofmetallurgicalcoalavailableintheU.S.andworldwide,andwehavebeenabletosupplycoaltoourcokemakingfacilitieswithoutanysignificantdisruptionincokeproduction.

Eachtonofcokeproducedatourfacilitiesrequiresapproximately1.4tonsofmetallurgicalcoal.In2018,wepurchasedapproximately3.4milliontonsofmetallurgicalcoalforourcokeproduction.Coalisgenerallypurchasedonanannualbasisviaone-yearcontractswithcostspassedthroughtoourcustomersinaccordancewiththeapplicablecokesalesagreements.Occasionally,shortfallsindeliveriesbycoalsuppliersrequireustoprocuresupplementalcoalvolumes.Aswithtypicalannualpurchases,thecostofthesesupplementalpurchasesisalsogenerallypassedthroughtoourcustomers.In2019,certainofourcoalcontractscontainanoptiontoreduceourcommitmentbyupto15percentatthePartnership'sdiscretion.Mostcoalprocurementdecisionsaremadethroughacoalcommitteestructurewithcustomerparticipation.Thecustomercangenerallyexerciseanoverridingvoteonmostcoalprocurementdecisions.

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Transportation and Freight

Forinboundtransportationofcoalpurchases,ourcokemakingfacilitieshavelong-termtransportationagreementsandwherenecessary,coal-mixingagreementsthatrunconcurrentlywiththeassociatedcokesalesagreements.Atourfacilitieswithmultipletransportationoptions,includingrailandbarge,weenterintoshort-termtransportationcontractsfromyeartoyear.

Forcokesales,thepointofdeliveryvariesbyagreementandfacility.ThepointofdeliveryforcokesalesfromtheHaverhillcokemakingfacilitiesisgenerallydesignatedbythecustomerandshipmentsaremadebyrailcarunderalong-termtransportationagreement.Alldeliverycostsarepassedthroughtothecustomers.AttheMiddletownandGraniteCitycokemakingfacilities,cokeisdeliveredprimarilybyaconveyorbeltleadingtothecustomer’sblastfurnace.MosttransportationandfreightcostsinourLogisticssegmentarepaidbythecustomerdirectlytothetransportationprovider.

Research and Development and Intellectual Property and Proprietary Rights

Aspartofouromnibusagreement,SunCokehasgrantedusaroyalty-freelicensetousethename“SunCoke”andrelatedmarks.Additionally,SunCokehasgrantedusanon-exclusiverighttouseallofSunCoke’scurrentandfuturecokemakingandrelatedtechnologynecessarytooperateourbusiness.SunCoke’sresearchanddevelopmentprogramseekstoimproveexistinganddeveloppromisingnewcokemakingtechnologiesandenhanceourheatrecoveryprocesses.Overtheyears,thisprogramhasproducednumerouspatentsrelatedtoheatrecoverycokingdesignandoperation,includingpatentsforpollutioncontrolsystems,ovenpushingandchargingmechanisms,ovenfluegascontrolmechanismsandvariousothers.

Competition

Cokemaking

Thecokemakingbusinessishighlycompetitive.Mostoftheworld’scokeproductioncapacityisownedbyblastfurnacesteelcompaniesutilizingby-productcokeoventechnology.TheinternationalmerchantcokemarketislargelysuppliedbyChinese,ColombianandUkrainianproducers,amongothers,thoughitisdifficulttomaintainhighqualitycokeintheexportmarket,andwhencoupledwithtransportationcosts,cokeimportsintotheU.S.areoftennoteconomical.

Theprincipalcompetitivefactorsaffectingourcokemakingbusinessincludecokequalityandprice,reliabilityofsupply,proximitytomarket,accesstometallurgicalcoalsandenvironmentalperformance.Ourovendesignandheatrecoverytechnologyplayaroleinallofthesefactors.Competitorsincludemerchantcokeproducersaswellasthecokemakingfacilitiesownedandoperatedbyblastfurnacesteelcompanies.

Inthepast,therehavebeentechnologieswhichhavesoughttoproducecarbonaceoussubstitutesforcokeintheblastfurnace.Whilenonehaveprovencommerciallyviablethusfar,wemonitorthedevelopmentofcompetingtechnologiescarefully.Wealsomonitorferroustechnologies,suchasdirectreducedironproduction("DRI"),asthesecouldindirectlyimpactourblastfurnacecustomers.

Webelievewearewell-positionedtocompetewithothercokeproducers.TogetherwithSunCoke,ourDomesticCokesegmentaccountsforapproximately30percentoftheU.S.cokemarketcapacity,excludingthecapacityusedtoproducefoundrycoke.Currentproductionfromourcokemakingbusinessiscommittedunderlong-termtake-or-paycontracts.Asaresult,competitionmainlyaffectsourabilitytoobtainnewcontractssupportingdevelopmentofadditionalcokemakingcapacity,re-contractingexistingfacilities,aswellasthesaleofcokeinthespotmarket.Ourfacilitieswereconstructedusingproven,industry-leadingtechnologywithmanyproprietaryfeaturesallowingustoproduceconsistentlyhigherqualitycokethanourcompetitorsproduce.Additionally,ourtechnologyallowsustoproduceheatthatcanbeconvertedintosteamorelectricalpower.

Logistics

TheprincipalcompetitorsofCMTarelocatedontheU.S.GulfCoastorU.S.EastCoast.CMTisoneofthelargestexportterminalsontheU.S.GulfCoastandprovidesstrategicaccesstoseabornemarketsforcoalandotherindustrialmaterials.Additionally,CMTisthelargestbulkmaterialterminalinthelowerU.S.withdirectrailaccessontheCanadianNationalRailway.In2018,CMTaccountedforapproximately47percentofU.S.thermalcoalexportsfromtheU.S.GulfCoastandapproximately20percentoftotalU.S.thermalcoalexports.CMThasastate-of-the-artshiploader,whichisthelargestofitskindintheworld.WebelievethisshiploaderhasthefastestloadingrateavailableintheGulfRegionandshouldallowourcustomerstobenefitfromlowershippingcosts.Additionally,CMThasastrategicalliancewithacompanythatperformsbargeunloadingservicesfortheterminal,whichprovidesCMTwiththeabilitytotransloadandmixasignificantlybroadervarietyofmaterials.

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OurKRTcompetitorsaregenerallylocatedwithin100milesofouroperations.KRThasfullyautomatedandcomputer-controlledmixingcapabilitiesthatmixcoaltowithintwopercentaccuracyofcustomerspecifications.KRTalsohastheabilitytoprovidepadstorageandhasaccesstobothCSXandNorfolkSouthernraillinesaswellastheOhioRiversystem.

LakeTerminalprovidescoalhandlingand/ormixingservicestoSunCoke'sIndianaHarborcokemakingfacilityandtherefore,doesnothaveanycompetitors.

Employees

Wearemanagedandoperatedbytheofficersofourgeneralpartner.Ouroperatingpersonnelareemployeesofouroperatingsubsidiaries.Ouroperatingsubsidiarieshadapproximately545employeesatDecember31,2018.Approximately43percentofouroperatingsubsidiaries'employeesarerepresentedbytheUnitedSteelworkersunion.Additionally,approximately5percentarerepresentedbytheInternationalUnionofOperatingEngineers.ThelaboragreementsatKRT,LakeTerminalandHaverhillwillexpireonApril30,2019,June30,2019andNovember1,2019,respectively.Wewillnegotiatetherenewaloftheseagreementsin2019anddonotanticipateanyworkstoppages.

Safety

Wearecommittedtomaintainingasafeworkenvironmentandensuringenvironmentalcomplianceacrossallofouroperations,asthehealthandsafetyofouremployeesandthecommunitiesinwhichweoperateareparamount.Weemploypracticesandconducttrainingtohelpensurethatouremployeesworksafely.Furthermore,weutilizeprocessesformanagingandmonitoringsafetyandenvironmentalperformance.

WehaveconsistentlyoperatedwithinthetopquartilesfortheU.S.OccupationalSafetyandHealthAdministration’s("OSHA")recordableinjuryratesasmeasuredandreportedbytheAmericanCokeandCoalChemicalsInstitute.

Legal and Regulatory Requirements

Thefollowingdiscussionsummarizestheprincipallegalandregulatoryrequirementsthatwebelievemaysignificantlyaffectus.

Permitting and Bonding

• Permitting Process for Cokemaking Facilities. Thepermittingprocessforourcokemakingfacilitiesisadministeredbytheindividualstates.However,themainrequirementsforobtainingenvironmentalconstructionandoperatingpermitsarefoundinthefederalregulations.Onceallrequirementsaresatisfied,astateorlocalagencyproducesaninitialdraftpermit.Generally,thefacilityreviewsandcommentsontheinitialdraft.Afteracceptingorrejectingthefacility’scomments,theagencytypicallypublishesanoticeregardingtheissuanceofthedraftpermitandmakesthepermitandsupportingdocumentsavailableforpublicreviewandcomment.Apublichearingmaybescheduled,andtheEPAalsohastheopportunitytocommentonthedraftpermit.Thestateorlocalagencyrespondstocommentsonthedraftpermitandmaymakerevisionsbeforeafinalconstructionpermitisissued.Aconstructionpermitallowsconstructionandcommencementofoperationsofthefacilityandisgenerallyvalidforatleast18months.Generally,constructioncommencesduringthisperiod,whilemanystatesallowthisperiodtobeextendedincertainsituations.Afacility'soperatingpermitmaybeastateoperatingpermitoraTitleVoperatingpermit.

• Air Quality. OurcokemakingfacilitiesemployMACTstandardsdesignedtolimitemissionsofcertainhazardousairpollutants.SpecificMACTstandardsapplytodoorleaks,charging,ovenpressure,pushingandquenching.CertainMACTstandardsfornewcokemakingfacilitiesweredevelopedusingtestdatafromSunCoke'sJewellcokemakingfacilitylocatedinVansant,Virginia.Underapplicablefederalairqualityregulations,permittingrequirementsmaydifferamongfacilities,dependinguponwhetherthecokemakingfacilitywillbelocatedinan“attainment”area—i.e.,onethatmeetsthenationalambientairqualitystandards(“NAAQS”)forcertainpollutants,orina“non-attainment”or"unclassifiable"area.ThestatusofanareamaychangeovertimeasnewNAAQSstandardsareadopted,resultinginanareachangefromonestatusorclassificationtoanother.Inanattainmentarea,thefacilitymustinstallairpollutioncontrolequipmentoremployBACT.Inanon-attainmentarea,thefacilitymustinstallairpollutioncontrolequipmentoremployproceduresthatmeetLAERstandards.LAERstandardsarethemoststringentemissionlimitationachievedinpracticebyexistingfacilities.UnliketheBACTanalysis,costisgenerallynotconsideredaspartofaLAERanalysis,andemissionsinanon-attainmentareamustbeoffsetbyemissionreductionsobtainedfromothersources.

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• StringentNAAQSforambientnitrogendioxideandsulfurdioxidewentintoeffectin2010.InJuly2013,theEPAidentifiedor"designated"asnon-attainment29areasin16stateswheremonitoredairqualityshowedviolationsofthe20101-hourSO2NAAQS.InAugust2015,theEPAfinalizedanewrulemakingtoassistinimplementationoftheprimary1-hourSO2NAAQSthatrequireseitheradditionalmonitoring,ormodelingofambientairSO2levelsinvariousareasincludingwherecertainofourfacilitiesarelocated.ByJuly2016,statessubjecttothisrulemakingwererequiredtoprovidetheEPAwitheitheramodelingapproachusingexistingemissionsdata,oraplantoundertakeambientairmonitoringforSO2tobeginin2017.ForstatesthatchoosetoinstallambientairSO2monitoringstations,afterthreeyearsofdatahasbeencollected,orsometimein2020,theEPAwillevaluatethisdatarelativetotheappropriateattainmentdesignationfortheareasunderthe1-hourSO2NAAQS.Forstatesthatchosetomodel,designationsweremadebyDecember2017.Thisrulemakingrequiredcertainofourfacilitiestoundertakethisambientairmonitoringormodeling.InDecember2017,EPAissuedafinaldesignationofattainmentorunclassifiableforallareaswhereourfacilitiesarelocated.ThesedesignationsmeanthatnofutureactionisrequiredforthefacilitieswithrespecttoSO2emissionsatthistime.However,legalchallengestothesedesignationsarepossible.Ifredesignated,wemayberequiredtoinstalladditionalpollutioncontrolsandincurgreatercostsofoperatingatthoseofourfacilitieslocatedinareasthatEPAdeterminestobenon-attainmentwiththe1-hourSO2NAAQSbasedonitsevaluationofthisdata.In2012,aNAAQSforfineparticulatematter,orPM2.5,wentintoeffect.InJanuary2015,theareawheretheGraniteCityfacilityislocatedweredesignatedunclassifiableforPM2.5,andtheareawheretheHaverhillfacilitiesarelocatedweredesignatedunclassifiable/attainmentforPM2.5.InApril2015,theareawheretheMiddletownfacilityislocatedwasdesignatedunclassifiable/attainmentforPM2.5.InNovember2015,theEPArevisedtheexistingNAAQSforgroundlevelozonetomakethestandardmorestringent.InJanuary2018,EPAdesignatedtheareawheretheHaverhillfacilityislocatedasattainment/unclassifiableforozone.InJune2018,EPAdesignatedtheareaswheretheGraniteCityandMiddletownfacilitiesarelocatedasmarginalnonattainmentforozone.Nonattainmentdesignationsunderthenewstandardsandanyfuturemorestringentstandardforozonehavetwoimpactsonpermitting:(1)demonstratingcompliancewiththestandardusingdispersionmodelingfromanewfacilitywillbemoredifficult;and(2)facilitiesoperatinginareasthatbecomenon-attainmentareasduetotheapplicationofnewstandardsmayberequiredtoinstallReasonablyAvailableControlTechnology(“RACT”).AnumberofstateshavefiledorjoinedsuitstochallengetheEPA’snewstandardincourt.Whilewearenotabletodeterminetheextenttowhichthisnewstandardwillimpactourbusinessatthistime,itdoeshavethepotentialtohaveamaterialimpactonouroperationsandcoststructure.

• TheEPAadoptedarulein2010requiringanewfacilitythatisamajorsourceofgreenhousegases(“GHGs”)toinstallequipmentoremployBACTprocedures.Currently,thereislittleinformationonwhatmaybeacceptableasBACTtocontrolGHGs(primarilycarbondioxidefromourfacilities),butthedatabaseandadditionalguidancemaybeenhancedinthefuture.

• Severalstateshaveadditionalrequirementsandstandardsotherthanthoseinthefederalstatutesandregulations.Manystateshavelistsof“airtoxics”withemissionlimitationsdeterminedbydispersionmodeling.Statesalsooftenhavespecificregulationsthatdealwithvisibleemissions,odorsandnuisance.Insomecases,thestatedelegatessomeorallofthesefunctionstolocalagencies.

• Wastewater and Stormwater. Ourheatrecoverycokemakingtechnologydoesnotproducewastewaterasistypicallyassociatedwithby-productcokemaking.Ourcokemakingfacilities,insomecases,havewastewaterdischargeandstormwaterpermits.

• Waste. Theprimarysolidwasteproductfromourheatrecoverycokemakingtechnologyiscalciumsulfatefromfluegasdesulfurization,whichisgenerallytakentoasolidwastelandfill.Thesolidmaterialfromperiodiccleaningofheatrecoverysteamgeneratorshasbeendisposedofashazardouswaste.Onthewhole,ourheatrecoverycokemakingprocessdoesnotgeneratesubstantialquantitiesofhazardouswaste.

• U.S. Endangered Species Act. TheU.S.EndangeredSpeciesActandcertaincounterpartstateregulationsareintendedtoprotectspecieswhosepopulationsallowforcategorizationaseitherendangeredorthreatened.Withrespecttopermittingadditionalcokemakingfacilities,protectionofendangeredorthreatenedspeciesmayhavetheeffectofprohibiting,limitingtheextentoforplacingpermittingconditionsonsoilremoval,roadbuildingandotheractivitiesinareascontainingtheaffectedspecies.Basedonthespeciesthathavebeendesignatedasendangeredorthreatenedonourpropertiesandthecurrentapplicationoftheselawsandregulations,wedonotbelievethattheyarelikelytohaveamaterialadverseeffectonouroperations.

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• Permitting Process for Certain Coal Terminals. CertaincoalterminaloperationsinWestVirginiaandKentuckyhavestate-issuedsurfaceminingpermits.Thepermitapplicationprocessisinitiatedbycollectingbaselinedatatoadequatelycharacterize,assessandmodelthepre-terminalenvironmentalconditionofthepermitarea,includingsoilandrockstructures,culturalresources,soils,surfaceandgroundwaterhydrology,andexistinguse.Thepermitapplicationincludesthecoalterminaloperationsplanandreclamationplan,documentsdefiningownershipandagreementspertainingtocoal,minerals,oilandgas,waterrights,rightsofwayandsurfacelandanddocumentsrequiredbytheOfficeofSurfaceMiningReclamationandEnforcement’s(“OSM’s”)ApplicantViolatorSystem.Onceapermitapplicationissubmittedtotheregulatoryagency,itgoesthroughacompletenessandtechnicalreviewbeforeapublicnoticeandcommentperiod.Regulatoryauthoritieshaveconsiderablediscretioninthetimingofthepermitissuanceandthepublichastherighttocommentonandotherwiseengageinthepermittingprocess,includingthroughpublichearingsandinterventioninthecourts.SMCRAminepermitsalsotakeasignificantperiodoftimetobetransferred.

• Bonding Requirements for Coal Terminals with Surface Mining Permits. BeforeasurfaceminingpermitisissuedinWestVirginia,amineoperatormustsubmitabondorotherformoffinancialsecuritytoguaranteethepaymentandperformanceofcertainlong-termmineclosureandreclamationobligations.Thecostsofthesebondsorotherformsoffinancialsecurityhavefluctuatedinrecentyearsandthemarkettermsofsuretybondsrelatedtosurfaceminingpermitsgenerallyhavebecomelessfavorabletoterminaloperatorsandotherswithsuchpermits.Theseandotherchangesinthetermsofsuchbondshavebeenaccompanied,attimes,byadecreaseinthenumberofcompanieswillingtoissuesuretybonds.AsofDecember31,2018,wehaveposted$0.3millioninsuretybondsforourWestVirginiaandLouisianacoalterminaloperations.

Regulation of Operations

• Clean Air Act. TheCleanAirActandsimilarstatelawsandregulationsaffectourcokemakingoperations,primarilythroughpermittingand/oremissionscontrolrequirementsrelatingtoparticulatematter(“PM”)andsulfurdioxide(“SO2”)andMACTstandards.TheCleanAirActairemissionsprogramsthatmayaffectouroperations,directlyorindirectly,include,butarenotlimitedto:theAcidRainProgram;NAAQSimplementationforSO2,PMandnitrogenoxides(“NOx”),leadozoneandcarbonmonoxide;GHGrules;theCleanAirInterstateRule;MACTemissionslimitsforhazardousairpollutants;theRegionalHazeProgram;NewSourcePerformanceStandards(“NSPS”);andNewSourceReview.TheCleanAirActrequires,amongotherthings,theregulationofhazardousairpollutantsthroughthedevelopmentandpromulgationofvariousindustry-specificMACTstandards.OurcokemakingfacilitiesaresubjecttotwocategoriesofMACTstandards.Thefirstcategoryappliestopushingandquenching.Thesecondcategoryappliestoemissionsfromchargingandcokeovendoors.TheEPAisrequiredtomakearisk-baseddeterminationforpushingandquenchingemissionsanddeterminewhetheradditionalemissionsreductionsarenecessary.In2016,EPAissuedarequestforinformationandtestingtoourcokemakingfacilitiesandothercompaniesaspartofitsresidualriskandtechnologyreviewoftheMACTstandardforpushingandquenching,andatechnologyreviewoftheMACTstandardforcokeovensandchargingemissions.Testingwasconductedbyourcokemakingfacilitiesin2017,buttheEPAhasyettopublishorproposeanyresidualriskstandards;therefore,theimpactofpotentialadditionalEPAregulationinthisareacannotbeestimatedatthistime.

• Terminal Operations. OurterminaloperationslocatedalongwaterwaysandtheGulfofMexicoarealsogovernedbypermittingrequirementsundertheCWAandCAA.TheseterminalsaresubjecttoU.S.CoastGuardregulationsandcomparablestatestatutesregardingdesign,installation,construction,andmanagement.Manysuchterminalsownedandoperatedbyotherentitiesthatarealsousedtotransportcoalandpetcoke,includingforexport,havebeenpursuedbyenvironmentalinterestgroupsforallegedviolationsoftheirpermits’requirements,orhaveseentheireffortstoobtainorrenewsuchpermitscontestedbysuchgroups.Whilewebelievethatouroperationsareinmaterialcompliancewiththesepermits,itispossiblethatsuchchallengesorclaimswillbemadeagainstouroperationsinthefuture.Moreover,ourterminaloperationsmaybeaffectedbytheimpactsofadditionalregulationonpetcokeorontheminingofalltypesofcoalanduseofthermalcoalforfuel,whichisrestrictingsupplyinsomemarketsandmayreducethevolumesofcoalthatourterminalsmanage.

• Federal Energy Regulatory Commission. TheFederalEnergyRegulatoryCommission(“FERC”)regulatesthesalesofelectricityfromourHaverhillandMiddletownfacilities,includingtheimplementationoftheFederalPowerAct(“FPA”)andthePublicUtilityRegulatoryPoliciesActof1978(“PURPA”).ThenatureoftheoperationsoftheHaverhillandMiddletownfacilitiesmakeseachfacilityaqualifyingfacilityunderPURPA,whichexemptsthefacilitiesandthePartnershipfromcertainregulatoryburdens,includingthePublicUtilityHoldingCompanyActof2005(“PUHCA”),limitedprovisionsoftheFPA,andcertainstatelawsand

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regulation.FERChasgrantedrequestsforauthoritytosellelectricityfromtheHaverhillandMiddletownfacilitiesatmarket-basedratesandtheentitiesaresubjecttoFERC’smarket-basedrateregulations,whichrequireregularregulatorycompliancefilings.

• Clean Water Act of 1972. Althoughourcokemakingfacilitiesgenerallydonothavewaterdischargepermits,theCleanWaterAct(“CWA”)mayaffectouroperationsbyrequiringwaterqualitystandardsgenerallyandthroughtheNationalPollutantDischargeEliminationSystem(“NPDES”).Regularmonitoring,reportingrequirementsandperformancestandardsarerequirementsofNPDESpermitsthatgovernthedischargeofpollutantsintowater.Dischargesmusteithermeetstatewaterqualitystandardsorbeauthorizedthroughavailableregulatoryprocessessuchasalternatestandardsorvariances.Additionally,throughtheCWASection401certificationprogram,stateshaveapprovalauthorityoverfederalpermitsorlicensesthatmightresultinadischargetotheirwaters.Similarly,forpermittingoranyfuturewaterintakeand/ordischargeprojects,ourfacilitiescouldbesubjecttotheArmyCorpsofEngineersSection404permittingprocess.

• Resource Conservation and Recovery Act. Wemaygeneratewastes,including“solid”wastesand“hazardous”wastesthataresubjecttotheResourceConservationandRecoveryAct(“RCRA”)andcomparablestatestatutes,althoughcertainminingandmineralbeneficiationwastesandcertainwastesderivedfromthecombustionofcoalcurrentlyareexemptfromregulationashazardouswastesunderRCRA.TheEPAhaslimitedthedisposaloptionsforcertainwastesthataredesignatedashazardouswastesunderRCRA.Furthermore,itispossiblethatcertainwastesgeneratedbyouroperationsthatcurrentlyareexemptfromregulationashazardouswastesmayinthefuturebedesignatedashazardouswastes,andthereforebesubjecttomorerigorousandcostlymanagement,disposalandclean-uprequirements.CertainofourwastesarealsosubjecttoDepartmentofTransportationregulationsforshippingofmaterials.

• Climate Change Legislation and Regulations. OurfacilitiesarepresentlysubjecttotheGHGreportingrule,whichobligatesustoreportannualemissionsofGHGs.TheEPAalsofinalizedarulein2010requiringanewfacilitythatisamajorsourceofGHGstoinstallequipmentoremployBACTprocedures.In2014,theSupremeCourtissuedanopinionholdingthatalthoughEPAmaynottreatGHGsasapollutantforthepurposeofdeterminingwhetherasourcemustobtainaPSDorTitleVpermit,EPAmaycontinuetorequireGHGlimitationsinpermitsforsourcesclassifiedasmajorbasedontheiremissionofotherpollutants.CurrentlythereislittleinformationastowhatmayconstituteBACTforGHGinmostindustries.Underthisrule,certainmodificationstoourfacilitiescouldsubjectustotheadditionalpermittingandotherobligationsrelativetoemissionsofGHGsundertheNewSourceReview/PreventionofSignificantDeterioration("NSR/PSD")andTitleVprogramsoftheCleanAirActbasedonwhetherthefacilitytriggeredNSR/PSDbecauseofemissionsofanotherpollutantsuchasSO2,NOx,PM,ozoneorlead.TheEPAhasengagedinrulemakingtoregulateGHGemissionsfromexistingandnewcoalfiredpowerplants,andweexpectcontinuedlegalchallengestothisrulemakingandanyfuturerulemakingforotherindustries.Forinstance,inAugust2015,theEPAissueditsfinalCleanPowerPlanrulesestablishingcarbonpollutionstandardsforpowerplants.InFebruary2016,theU.S.SupremeCourtgrantedastayoftheimplementationoftheCleanPowerPlanbeforetheU.S.CourtofAppealsfortheDistrictofColumbia(“D.C.Circuit”)issuedadecisionontherule.Byitsterms,thisstaywillremainineffectthroughoutthependencyoftheappealsprocessincludingattheD.C.CircuitandtheSupremeCourtthroughanycertioraripetitionthatmaybegranted.InOctober2017,theEPAproposedtorepealtheCleanPowerPlan("CPP")althoughthefinaloutcomeofthisproposalandthependinglitigationregardingtheCPPisuncertainatthistime.Inconnectionwiththisproposedrepeal,EPAissuedanAdvancedNoticeofProposedRulemaking("ANPRM")inDecember2017regardingemissionguidelinestolimitGHGemissionsfromexistingelectricutilitygeneratingunits.TheANPRMseekscommentregardingwhattheEPAshouldincludeinapotentialnew,existingsourceregulationofGHGemissionsundertheCleanAirActthattheEPAmaypropose.OnOctober9,2018,theU.S.SupremeCourtrejectedanyfurtherchallengestothedecisiontorepealtheCleanPowerPlan.AlthoughEPAproposedtheAffordableCleanEnergy(“ACE”)ruleasareplacementfortheCPPinAugust2018,theACErulehasnotyetbeenfinalized.

Currently,wedonotanticipatetheseneworexistingpowerplanGHGrulestoimpactourfacilities.However,theimpactcurrentandfutureGHG-relatedlegislationandregulationshaveonuswilldependonanumberoffactors,includingwhetherGHGsourcesinmultiplesectorsoftheeconomyareregulated,theoverallGHGemissionscaplevel,thedegreetowhichGHGoffsetsareallowed,theallocationofemissionallowancestospecificsourcesdecisionsbystatesregardingthesourcesthatwillbesubjecttoanyimplementingprogramstheymayadoptandtheindirectimpactofcarbonregulationoncoalprices.Wemaynotrecoverthecostsrelatedtocompliancewithregulatoryrequirementsimposedonusfromourcustomersduetolimitationsinouragreements.Theimpositionofacarbontaxorsimilarregulationcouldmateriallyandadverselyaffectour

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revenues.Collectively,theserequirementsalongwithrestrictionsandrequirementsregardingtheminingofalltypesofcoalmayreducethevolumesofcoalthatwemanageandmayultimatelyadverselyimpactourcustomers.Dependingonwhetheranotherruleispromulgatedinthefuture,itcouldincreasethedemandfornaturalgas-generatedelectricity.

• Mine Improvement and New Emergency Response Act of 2006. TheMineImprovementandNewEmergencyResponseActof2006(the“MinerAct”),hasincreasedsignificantlytheenforcementofsafetyandhealthstandardsandimposedsafetyandhealthstandardsonallaspectsofminingoperations.Therealsohasbeenasignificantincreaseinthedollarpenaltiesassessedforcitationsissued.

• Safety. OurfacilitiesaresubjecttoregulationbytheOccupationalSafetyandHealthAdministration(OSHA)oftheUnitedStatesDepartmentofLaborandotheragencieswithstandardsdesignedtoensureworkersafety.Asnotedabove,wehaveconsistentlyoperatedwithinthetopquartilesforOSHA’srecordableinjuryratesasmeasuredandreportedbytheAmericanCokeandCoalChemicalsInstitute.

• Security. CMTissubjecttoregulationbytheU.S.CoastGuardpursuanttotheMaritimeTransportationSecurityAct.WehaveaninternalinspectionprogramdesignedtomonitorandensurecompliancebyCMTwiththeserequirements.Webelievethatweareinmaterialcompliancewithallapplicablelawsandregulationsregardingthesecurityofthefacility.

Reclamation and Remediation

• Comprehensive Environmental Response, Compensation, and Liability Act. UndertheComprehensiveEnvironmentalResponse,Compensation,andLiabilityAct(“CERCLA”),alsoknownasSuperfund,andsimilarstatelaws,responsibilityfortheentirecostofclean-upofacontaminatedsite,aswellasnaturalresourcedamages,canbeimposeduponcurrentorformersiteownersoroperators,oruponanypartywhoreleasedoneormoredesignated“hazardoussubstances”atthesite,regardlessofthelawfulnessoftheoriginalactivitiesthatledtothecontamination.InthecourseofouroperationswemayhavegeneratedandmaygeneratewastesthatfallwithinCERCLA’sdefinitionofhazardoussubstances.Wealsomaybeanowneroroperatoroffacilitiesatwhichhazardoussubstanceshavebeenreleasedbypreviousownersoroperators.UnderCERCLA,wemayberesponsibleforallorpartofthecostsofcleaningupfacilitiesatwhichsuchsubstanceshavebeenreleasedandfornaturalresourcedamages.WealsomustcomplywithreportingrequirementsundertheEmergencyPlanningandCommunityRight-to-KnowActandtheToxicSubstancesControlAct.

Environmental Matters and Compliance

Ourfailuretocomplywiththeaforementionedrequirementsmayresultintheassessmentofadministrative,civilandcriminalpenalties,theimpositionofclean-upandsiterestorationcostsandliens,theissuanceofinjunctionstolimitorceaseoperations,thesuspensionorrevocationofpermitsandotherenforcementmeasuresthatcouldhavetheeffectoflimitingproductionfromouroperations.TheEPAandstateregulatorshaveissuedNoticesofViolations(“NOVs”)fortheHaverhillandGraniteCitycokemakingfacilitieswhichstemfromallegedviolationsofairoperatingpermitsforthesefacilities.SunCokeisworkinginacooperativemannerwiththeEPAandOhioEnvironmentalProtectionAgencytoaddresstheallegationsandhasenteredintoaconsentdecreeinfederaldistrictcourtwiththeseparties.Theconsentdecreeincludesanapproximately$2.2millioncivilpenaltypaymentthatwaspaidbySunCokeinDecember2014,aswellascapitalprojectsunderwaytoimprovethereliabilityoftheenergyrecoverysystemsandenhanceenvironmentalperformanceattheHaverhillandGraniteCityfacilities.Weretainedanaggregateof$119millioninproceedsfromourinitialpublicofferingandsubsequentdropdownstocomplywiththeexpectedtermsofaconsentdecreeattheHaverhillandGraniteCitycokemakingoperations.SunCokeandthePartnershipanticipatespendingapproximately$150milliontocomplywiththeseenvironmentalremediationprojects.Pursuanttotheomnibusagreement,anyamountsthatwespendontheseprojectsinexcessofthe$119millionwillbereimbursedbySunCoke.Priortoourformation,SunCokespentapproximately$7millionrelatedtotheseprojects.ThePartnershiphasspentapproximately$131milliontodateandexpectstospendtheremainingcapitalthroughthefirsthalfof2019.SunCokehasreimbursedthePartnershipapproximately$20millionfortheestimatedadditionalspendingbeyondwhathaspreviouslybeenfunded.

Manyotherlegalandadministrativeproceedingsarependingormaybebroughtagainstusarisingoutofourcurrentandpastoperations,includingmattersrelatedtocommercialandtaxdisputes,productliability,antitrust,employmentclaims,naturalresourcedamageclaims,premises-liabilityclaims,allegationsofexposuresofthird-partiestotoxicsubstancesandgeneralenvironmentalclaims.Althoughtheultimateoutcomeoftheseproceedingscannotbeascertainedatthistime,itisreasonablypossiblethatsomeofthemcouldberesolvedunfavorablytous.Ourmanagementbelievesthatanyliabilitiesthatmayarisefromsuchmatterswouldnotbematerialinrelationtoourbusinessorourconsolidatedfinancialposition,resultsofoperationsorcashflowsatDecember31,2018.

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Underthetermsoftheomnibusagreement,SunCokewillindemnifyusforcertainenvironmentalremediationprojectscosts.Pleaseread“PartIII.Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence—AgreementsEnteredIntowithAffiliatesinConnectionwithourInitialPublicOffering—OmnibusAgreement.”

IRS Final Regulations on Qualifying Income

Section7704oftheInternalRevenueCode(the"Code")providesthatapublicly-tradedpartnershipwillbetreatedasacorporationforfederalincometaxpurposes.However,if90percentormoreofapartnership’sgrossincomeforeverytaxableyearitispublicly-tradedconsistsof“qualifyingincome,”thepublicly-tradedpartnershipmaycontinuetobetreatedasapartnershipforfederalincometaxpurposes.

At the time of our initial public offering, in January 2013, we believed, and received a legal opinion to the effect, that incomefromour cokemakingoperationswouldbetreatedasgeneratingqualifyingincomeundertheCode.ThePartnershipandcounselbelievedatthetimethatthisviewwasbasedonthecorrectinterpretationoftheCodeandthelegislativehistoryoftherelevantCodesection,andsincethattimecontinuedtobelievethatincomefromitscokemakingoperationsisqualifyingincome.

OnJanuary19,2017,theTreasuryDepartmentandtheInternalRevenueService("IRS")issuedqualifyingincomeregulations(the"FinalRegulations")onthetreatmentofincomefromnaturalresourceactivitiesofpubliclytradedpartnershipsasqualifyingincomeforpurposesoftheCode.TheFinalRegulationswerepublishedintheFederalRegisteronJanuary24,2017,andapplytotaxableyearsbeginningafterJanuary19,2017.UndertheFinalRegulations,thePartnership’scokemakingoperationshavebeenexcludedfromthedefinitionofactivitiesthatgeneratequalifyingincome.

TheFinalRegulationsprovidethatifapartnership’sincomefromnon-qualifyingoperations“wasqualifyingincomeunderthestatuteasreasonablyinterpreted,”thenthatpartnershipwillhaveatransitionperiodendingonthelastdayofthepartnership’staxableyearthatincludedthedatethatistenyearsafterthedatetheFinalRegulationsarepublishedintheFederalRegister(i.e.,December31,2027),duringwhichitcantreatincomefromsuchactivitiesasqualifyingincome.Afterconferringwithoutsidecounsel,thePartnershipisoftheviewthatitsinterpretationwasreasonableinconcludingthatthePartnership’sincomefromcokemakingwasqualifyingincome,andthatthePartnershipwillbenefitfromtheten-yeartransitionperiod.Subsequenttothetransitionperiod,certaincokemakingentitiesinthePartnershipwillbecometaxableascorporations.Alsosee“PartI.Item1A.RiskFactors"andNote6totheconsolidatedfinancialstatements.

Thepresentfederalincometaxtreatmentofpubliclytradedpartnerships,includingthePartnership,oraninvestmentinitscommonunits,maybemodifiedbyadministrative,legislativeorjudicialinterpretationatanytime.Anymodificationtothefederalincometaxlawsandinterpretationsthereofmayormaynotbeappliedretroactively.Moreover,anysuchmodificationcouldmakeitmoredifficultorimpossibleforthePartnershiptomeettheexceptionwhichallowspubliclytradedpartnershipsthatgeneratequalifyingincometobetreatedaspartnerships(ratherthancorporations)forU.S.federalincometaxpurposes,affectorcauseustochangeourbusinessactivities,oraffectthetaxconsequencesofaninvestmentinitscommonunits.Forexample,asdiscussedabove,onJanuary24,2017,FinalRegulationswerepublishedintheFederalRegisterandapplytotaxableyearsbeginningonorafterJanuary19,2017.TheFinalRegulationswilllikelyaffecttheabilityofpartnershipstocontinuetoqualifyasapubliclytradedpartnership.

Available Information

Wemakeavailablefreeofcharge,throughourwebsite,www.suncoke.com,ourannualreportsonForm10-K,quarterlyreportsonForm10-Q,currentreportsonForm8-KandamendmentstothosereportsfiledorfurnishedpursuanttoSection13(a)or15(d)oftheExchangeActassoonasreasonablypracticableafterweelectronicallyfileorfurnishsuchmaterialwiththeSecuritiesandExchangeCommission,orSEC.ThesedocumentsarealsoavailableattheSEC’swebsiteatwww.sec.gov.OurwebsitealsoincludesourCodeofBusinessConductandEthics,ourGovernanceGuidelines,ourRelatedPersonsTransactionPolicyandthechartersofourAuditCommitteeandconflictscommittee.

AcopyofanyofthesedocumentswillbeprovidedwithoutchargeuponwrittenrequesttoInvestorRelations,SunCokeEnergyPartners,L.P.,1011WarrenvilleRoad,Suite600,Lisle,Illinois60532.

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Item 1A. Risk Factors

InadditiontotheotherinformationincludedinthisAnnualReportonForm10-K,thefollowingriskfactorsshouldbeconsideredinevaluatingourbusinessandfutureprospects.Theseriskfactorsrepresentwhatwebelievetobetheknownmaterialriskfactorswithrespecttousandourbusiness.Ourbusiness,operatingresults,cashflowsandfinancialconditionaresubjecttotheserisksanduncertainties,anyofwhichcouldcauseactualresultstovarymateriallyfromrecentresultsorfromanticipatedfutureresults.

Theserisksarenottheonlyrisksweface.Additionalrisksanduncertaintiesnotcurrentlyknowntous,orthatwecurrentlydeemtobeimmaterialalsomaymateriallyandadverselyaffectourbusiness,financialcondition,orresultsofoperations.

Risk Related to the Simplification Transaction

The proposed Simplification Transaction is subject to conditions, including some conditions that may not be satisfied on a timely basis, if at all.Failure to complete the Simplification Transaction, or significant delays in completing the Simplification Transaction, could negatively affect each party'sfuture business and financial results and the trading prices of our common units and SunCoke’s common stock.

CompletionoftheproposedSimplificationTransactionissubjecttoanumberofconditions,includingapprovalof(i)theMergerAgreementbySunCoke’scommonstockholdersand(ii)theissuanceoftheSunCoke’scommonstocktobeusedasmergerconsideration,whichmakethecompletionandtimingoftheconsummationoftheSimplificationTransactionuncertain.Also,eitherthePartnershiporSunCokemayterminatetheMergerAgreementiftheSimplificationTransactionhasnotbeencompletedbySeptember30,2019,exceptthatthisterminationrightwillnotbeavailabletoanypartywhosefailuretoperformanyobligationundertheMergerAgreementhasbeentheprincipalcauseof,orresultedin,thefailureoftheproposedSimplificationTransactiontobeconsummatedbysuchdate.

CompletionoftheproposedSimplificationTransactionisnotassuredandissubjecttoseveralrisksanduncertainties,includingtheriskthattherequiredapprovalsmaynotobtained,orevenifobtained,stillmaynotresultinsuccessfulcompletionoftheSimplificationTransaction.Inaddition,theproposedSimplificationTransactionissubjecttoanumberofconditions,someofwhicharebeyondtheparties'control,that,ifnotsatisfiedorwaived,mayprevent,delayorotherwiseresultintheproposedSimplificationTransactionnotoccurring.

IftheproposedSimplificationTransactionisnotcompleted,oriftherearesignificantdelaysincompletingtheproposedSimplificationTransaction,thePartnership'sandSunCoke’sfuturebusinessandfinancialresultsandthetradingpricesofourcommonunitsandSunCoke’scommonstockcouldbenegativelyaffected,andeachofthepartieswillbesubjecttoseveralrisks,includingthefollowing:

• thepartiesmaybeliableforfeesorexpensestooneanotherunderthetermsandconditionsoftheMergerAgreement;

• theremaybenegativereactionsfromthefinancial marketsduetothefact thatcurrentpricesofourcommonunitsandSunCoke'scommonstockmayreflectamarketassumptionthattheproposedSimplificationTransactionwillbecompleted;and

• the attention of management will have been diverted to the proposed Simplification Transaction rather than their ownoperations and pursuit of otheropportunitiesthatcouldhavebeenbeneficialtotheirrespectivebusinesses.

The Partnership and SunCoke are subject to business uncertainties and contractual restrictions while the proposed Simplification Transaction ispending, which could adversely affect each party's business and operations.

InconnectionwiththependencyoftheproposedSimplificationTransaction,itispossiblethatsomecustomersandotherpersonswithwhomweorSunCokehavebusinessrelationshipsmaydelayordefercertainbusinessdecisionsasaresultoftheSimplificationTransaction,whichcouldnegativelyaffectourandSunCoke’srespectiverevenues,earningsandcashflow,aswellasthemarketpriceofourcommonunitsand/orSunCoke’scommonstock,regardlessofwhethertheproposedSimplificationTransactioniseventuallycompleted.UnderthetermsoftheMergerAgreement,thePartnershipandSunCokeareeachsubjecttocertainrestrictionsontheconductofitsbusinesspriortocompletingtheSimplificationTransaction,whichmayadverselyaffecttheabilitytoexecutecertainbusinessstrategiesincluding,insomecases,theabilitytoenterintocontracts,acquireordisposeofassets,incurindebtedness,orincurcapitalexpenditures.Suchlimitationscouldaffecteachparty'sbusinessesandoperationsnegativelypriortothecompletionoftheproposedSimplificationTransaction.

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Because the exchange ratio is fixed and because the market price of SunCoke’s common stock will fluctuate prior to the completion of the proposedSimplification Transaction, our unaffiliated common unitholders cannot be sure of the market value of the SunCoke common stock they will receive asSimplification Transaction consideration relative to the value of our common units they exchange.

ThemarketvalueoftheconsiderationthatourunaffiliatedcommonunitholdersactuallyreceiveintheproposedSimplificationTransactionwilldependonthetradingpriceofSunCoke’scommonstockattheclosingoftheproposedSimplificationTransaction.TheexchangeratiothatdeterminesthenumberofsharesofSunCoke’scommonstockthatourunaffiliatedcommonunitholderswillreceiveintheproposedSimplificationTransactionisfixedat1.40sharesofSunCoke’scommonstockforeachcommonunitofthePartnership.ThereisnomechanismcontainedintheMergerAgreement,orotherwise,toadjustthenumberofsharesofSunCoke’scommonstockthatourunaffiliatedcommonunitholderswillreceivebaseduponanydecreaseorincreaseinthetradingpriceofSunCoke’scommonstock.Stockorunitpricechangesmayresultfromavarietyoffactors,manyofwhicharebeyondourandSunCoke’scontrol,including:

• changesinourorSunCoke’sbusiness,operationsandprospects;

• changesinmarketassessmentsofourorSunCoke’sbusiness,operationsandprospects;

• changesinmarketassessmentsofthelikelihoodthattheproposedSimplificationTransactionwillbecompleted;

• interestrates,commodityprices,generalmarket,industryandeconomicconditionsandotherfactorsgenerallyaffectingthepriceofourcommonunitsorSunCoke'scommonstock;and

• federal,stateandlocallegislation,governmentalregulationandlegaldevelopmentsinthebusinessesinwhichweandSunCokeoperate.

IfthepriceofSunCoke’scommonstockattheclosingoftheproposedSimplificationTransactionislessthanthepriceofSunCoke’scommonstockonthedatethattheMergerAgreementwassigned,thenthemarketvalueofthemergerconsiderationwillbelessthancontemplatedatthetimetheMergerAgreementwassigned.

The date our unaffiliated common unitholders will receive the merger consideration depends on the completion date of the proposed SimplificationTransaction, which is uncertain.

CompletionoftheproposedSimplificationTransactionissubjecttoseveralconditions,notallofwhicharecontrollablebyusorSunCoke.Accordingly,eveniftheproposedSimplificationTransactionisapprovedbyourcommonunitholdersandSunCoke’scommonstockholders,thedateonwhichourunaffiliatedcommonunitholderswillreceivethemergerconsiderationdependsuponthecompletiondateoftheproposedSimplificationTransaction,whichisuncertainandsubjecttoseveralotherclosingconditions.

We and SunCoke may incur transaction-related costs in connection with the proposed Simplification Transaction.

We and SunCoke each expect to incur a number of non-recurring transaction-related costs associated with completing the proposed SimplificationTransaction, combining the operations of the two companies and attempting to achieve desired synergies. Non-recurring transaction costs include, but are notlimitedto,feespaidtolegal,financialandaccountingadvisors,filingfees,proxysolicitationcostsandprintingcosts.Manyoftheexpensesthatwillbeincurredare,bytheirnature,difficulttoestimateaccuratelyatthepresenttime.

Certain executive officers and directors of our general partner have interests in the proposed Simplification Transaction that are different from, or inaddition to, the interests they may have as our unaffiliated common unitholders, which could influence their decision to support or approve the proposedSimplification Transaction.

Certainexecutiveofficersand/ordirectorsofourgeneralpartnerownequityinterestsinSunCoke,receivefeesandothercompensationfromSunCokeand will have rights to ongoing indemnification and insurance coverage by the surviving company that give them interests in the proposed SimplificationTransactionthatmaybedifferentfrom,orinadditionto,theinterestsofanunaffiliatedunitholderofthePartnership.Additionally,certainofourgeneralpartner’sexecutiveofficersanddirectorbeneficiallyownPartnershipcommonunitsandwillreceivetheapplicablemergerconsiderationuponcompletionoftheproposedSimplificationTransaction,receivefeesandothercompensationfromusandareentitledtoindemnificationarrangementswithusthatgivetheminterestsintheproposedSimplificationTransactionthatmaybedifferentfrom,orinadditionto,theinterestsofourunaffiliatedstockholders.

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Financial projections by us and SunCoke may not prove to be reflective of actual future results.

In connection with the proposed Simplification Transaction, we and SunCoke have prepared and considered, among other things, internal financialforecastsforthePartnershipandSunCoke,respectively.Theseforecastsspeakonlyasofthedatemadeandwillnotbeupdated.Thesefinancialprojectionswerenotprovidedwithaviewtopublicdisclosure,aresubjecttosignificanteconomic,competitive,industryandotheruncertaintiesandmaynotbeachievedinfull,atallorwithinprojectedtimeframes.Inaddition,thefailureofSunCoke’sbusinessestoachieveprojectedresultscouldhaveamaterialadverseeffectonSunCoke’sshareprice,financialpositionandabilitytoinstituteormaintainadividendonitsstockfollowingtheproposedSimplificationTransaction.

We and SunCoke may be unable to obtain the regulatory clearances required to complete the proposed Simplification Transaction or, in order to doso, we and SunCoke may be required to comply with material restrictions or satisfy material conditions.

The closing of the proposed Simplification Transaction is subject to the condition precedent that there is no law, injunction, judgment or ruling by agovernmentalauthorityineffectenjoining,restraining,preventingorprohibitingtheconsummationofthetransactionscontemplatedbytheMergerAgreement,ormakingtheconsummationofthetransactionscontemplatedbytheMergerAgreementillegal.Additionally,oneormorestateattorneysgeneralcouldseektoblockor challenge the proposed Simplification Transaction as they deem necessary or desirable in the public interest at any time, including after completion of thetransaction. In addition, under certain circumstances, a third party could initiate a private action challenging or seeking to enjoin the proposed SimplificationTransaction,beforeorafteritiscompleted.Wemaynotprevailandcouldincursignificantcostsindefendingorsettlinganysuchaction.

Shares of SunCoke’s common stock to be received by our unaffiliated common unitholders as a result of the proposed Simplification Transactionhave different rights from our common units.

FollowingcompletionoftheproposedSimplificationTransaction,ourunaffiliatedcommonunitholdersnolongerwillholdourcommonunits,butinsteadwill be stockholders of SunCoke. There are important differences between the rights of our unaffiliated common unitholders and the rights of SunCoke’sstockholders. Ownership interests in a limited partnership are fundamentally different from ownership interests in a corporation. Our unaffiliated commonunitholderswillownSunCokecommonstockfollowingthecompletionoftheproposedSimplificationTransaction,andtheirrightsassociatedwiththecommonstock will be governed by SunCoke’s organizational documents and the Delaware General Corporation Law, which differ in a number of respects from ourpartnershipagreementandtheLimitedPartnershipActoftheStateofDelaware.

Litigation filed against us and/or SunCoke could prevent or delay the consummation of the Simplification Transaction or result in the payment ofdamages following completion of the Simplification Transaction.

FollowingannouncementoftheproposedSimplificationTransaction,purportedPartnershipunitholdersmayfileputativeunitholderclassactionlawsuitsagainstus,ourgeneralpartner,andthegeneralpartner'sBoardofDirectors,amongothers.Amongotherremedies,theplaintiffsmayseektoenjointhetransactionscontemplatedbythemergeragreement.Theoutcomeofanysuchlitigationisuncertain.Ifadismissalisnotgrantedorasettlementisnotreached,suchlawsuitscould prevent or delay completion of the Simplification Transaction and result in substantial costs to us and/or SunCoke, including costs associated withindemnification.Additionallawsuitsmaybefiledagainstus,SunCokeorourrespectiveofficersordirectorsinconnectionwiththeSimplificationTransaction.ThedefenseorsettlementofanylawsuitorclaimthatremainsunresolvedatthetimetheSimplificationTransactionisconsummatedmayadverselyaffectthebusiness,financialcondition,resultsofoperationsandcashflowsofthecombinedorganization.

Risks Inherent in Our Business and Industry

Sustained uncertainty in financial markets, or unfavorable economic conditions in the industries in which our customers operate, may lead to areduction in the demand for our products and services, and adversely impact our cash flows, financial position or results of operations, and therefore may limitour ability to make cash distributions to unitholders.

SustainedvolatilityanddisruptioninworldwidecapitalandcreditmarketsintheU.S.andgloballycouldrestrictourabilitytoaccessthecapitalmarketatatimewhenwewouldlike,orneed,toraisecapitalforourbusinessincludingforpotentialacquisitions,orothergrowthopportunities.

Deterioratingorunfavorableeconomicconditionsintheindustriesinwhichourcustomersoperate,suchassteelmakingandelectricpowergeneration,mayleadtoreduceddemandforsteelproducts,coal,andotherbulk

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commoditieswhich,inturn,couldadverselyaffectthedemandforourproductsandservicesandnegativelyimpacttherevenues,marginsandprofitabilityofourbusiness.

Additionally,thetighteningofcredit,orlackofcreditavailabilitytoourcustomers,couldadverselyaffectourabilitytocollectourtradereceivables.Wealsoareexposedtothecreditriskofourcokeandlogisticscustomers,andanysignificantunanticipateddeteriorationoftheircreditworthinessandresultingincreaseinnonpaymentornonperformancebythemcouldhaveamaterialadverseeffectonthecashflowsand/orresultsofouroperations.

Adverse developments at our cokemaking and/or logistics operations, including equipment failures or deterioration of assets, may lead to productioncurtailments, shutdowns, impairments, or additional expenditures, which could have a material adverse effect on our results of operations, and therefore maylimit our ability to make cash distributions to unitholders.

Ourcokemakingandlogisticsoperationsaresubjecttosignificanthazardsandrisksthatinclude,butarenotlimitedto,equipmentmalfunction,explosions,firesandtheeffectsofsevereweatherconditionsandextremetemperatures,anyofwhichcouldresultinproductionandtransportationdifficultiesanddisruptions,permitnon-compliance,pollution,personalinjuryorwrongfuldeathclaimsandotherdamagetoourpropertiesandthepropertyofothers.

Adversedevelopmentsatourcokemakingfacilitiescouldsignificantlydisruptourcoke,steamand/orelectricityproductionandourabilitytosupplycoke,steam,and/orelectricitytoourcustomers.Adversedevelopmentsatourlogisticsoperationscouldsignificantlydisruptourabilitytoprovidehandling,mixing,storage,terminalling,transloadingand/ortransportationservices,ofcoalandotherdryandliquidbulkcommodities,toourcustomers.Anysustaineddisruptionatourcokemakingand/orlogisticsoperationscouldhaveamaterialadverseeffectonourresultsofoperations.

Thereisariskofmechanicalfailureofourequipmentbothinthenormalcourseofoperationsandfollowingunforeseenevents.Ourcokemakingandlogisticsoperationsdependuponcriticalpiecesofequipmentthatoccasionallymaybeoutofserviceforscheduledupgradesormaintenanceorasaresultofunanticipatedfailures.Ourfacilitiesaresubjecttoequipmentfailuresandtheriskofcatastrophiclossduetounanticipatedeventssuchasfires,accidentsorviolentweatherconditionsorextremetemperatures.Asaresult,wemayexperienceinterruptionsinourprocessingandproductioncapabilities,whichcouldhaveamaterialadverseeffectonourresultsofoperationsandfinancialcondition.Inparticular,totheextentadisruptionleadstoourfailuretomaintainthetemperatureinsideourcokeovenbatteries,wemaynotbeabletomaintaintheintegrityoftheovensortocontinueoperationofsuchcokeovens,whichcouldadverselyaffectourabilitytomeetourcustomers’requirementsforcokeand,insomecases,electricityand/orsteam.

Assetsandequipmentcriticaltotheoperationsofourcokemakingandlogisticsoperationsalsomaydeteriorateorbecomedepletedmateriallysoonerthanwecurrentlyestimate.Suchdeteriorationofassetsmayresultinadditionalmaintenancespendingoradditionalcapitalexpenditures.Iftheseassetsdonotgeneratetheamountoffuturecashflowsthatweexpect,andwearenotabletoexecuteoncapitalmaintenanceorprocurereplacementassetsinaneconomicallyfeasiblemanner,ourfutureresultsofoperationsmaybemateriallyandadverselyaffected.

Impairment in the carrying value of long-lived assets and goodwill could adversely affect our business and results of operations.

Wehaveasignificantamountoflong-livedassetsandgoodwillonourConsolidatedBalanceSheets.Undergenerallyacceptedaccountingprinciples,long-livedassetsmustbereviewedforimpairmentwheneveradverseeventsorchangesincircumstancesindicateapossibleimpairment.Wearerequiredtoperformimpairmenttestsonourassetswhenevereventsorchangesincircumstancesleadtoareductionoftheestimatedusefullifeorestimatedfuturecashflowsthatwouldindicatethatthecarryingamountmaynotberecoverableorwhenevermanagement’splanschangewithrespecttothoseassets.

Ifbusinessconditionsorotherfactorscauseprofitabilityandcashflowstodecline,wemayberequiredtorecordnon-cashimpairmentcharges.Goodwillmustbeevaluatedforimpairmentannuallyormorefrequentlyifeventsindicateitiswarranted.Ifthecarryingvalueofourreportingunitsexceedstheircurrentfairvalueasdeterminedbasedonthediscountedfuturecashflowsoftherelatedbusiness,thegoodwillisconsideredimpairedandisreducedtofairvaluebyanon-cashchargetoearnings.

Eventsandconditionsthatcouldresultinimpairmentinthevalueofourlong-livedassetsandgoodwillinclude:theimpactofadownturnintheglobaleconomy,competition,advancesintechnology,adversechangesintheregulatoryenvironment,andotherfactorsleadingtoareductioninexpectedlong-termsalesorprofitability,orasignificantdeclineinthetradingpriceofourcommonstockormarketcapitalization,lowerfuturecashflows,slowerindustrygrowthratesandotherchangesintheindustriesinwhichweorourcustomersoperate.

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The financial performance of our cokemaking and logistics businesses is substantially dependent upon a limited number of customers, and the loss ofthese customers, or any failure by them to perform under their contracts with us, could materially and adversely affect our financial condition, permitcompliance, results of operations and cash flows, and therefore may limit our ability to make cash distributions to unitholders.

Substantiallyallofourcokesalescurrentlyaremadepursuanttolong-termcontractswithAMUSA,U.S.SteelandAKSteel,andweexpectthesethreecustomerstocontinuetoaccountforasignificantportionofourrevenuesfortheforeseeablefuture.Inourlogisticsbusiness,asignificantportionofourrevenuesandcashflowsarederivedfromlong-termcontractswithForesightEnergyLLCandMurrayAmericanCoal,Inc.atCMT,andweexpectthesetwocustomerstocontinuetoaccountforasignificantportionoftherevenuesofourlogisticsbusinessfortheforeseeablefuture.

Wearesubjecttothecreditriskofourmajorcustomersandotherparties.Ifwefailtoadequatelyassessthecreditworthinessofexistingorfuturecustomersorunanticipateddeteriorationoftheircreditworthiness,anyresultingincreaseinnonpaymentornonperformancebythemcouldhaveamaterialadverseeffectonourcashflows,financialpositionorresultsofoperations.Duringperiodsofweakdemandforsteelorcoal,ourcustomersmayexperiencesignificantreductionsintheiroperations,orsubstantialdeclinesinthepricesofthesteel,orcoalproducts,theysell.Theseandotherfactorssuchaslaborrelationsorbankruptcyfilingsmayleadcertainofourcustomerstoseekrenegotiationorcancellationoftheirexistingcontractualcommitmentstous,orreducetheirutilizationofourservices,

Thelossofanyofthesecustomers(orfinancialdifficultiesatanyofthesecustomers,whichresultinnonpaymentornonperformance)couldhaveasignificantadverseeffectonourbusiness.Ifoneormoreofthesecustomersweretosignificantlyreduceitspurchasesofcokeorlogisticsservicesfromuswithoutamake-wholepayment,ordefaultontheiragreementswithus,orterminateorfailtorenewtheiragreementswithus,orifwewereunabletosellsuchcokeorlogisticsservicestothesecustomersontermsasfavorabletousasthetermsunderourcurrentagreements,ourcashflows,financialposition,permitcompliance,orresultsofoperationscouldbemateriallyandadverselyaffected.

Our cokemaking and logistics businesses are subject to operating risks, some of which are beyond our control, that could result in a material increasein our operating expenses, and therefore may limit our ability to make cash distributions to unitholders.

Factorsbeyondourcontrolcoulddisruptourcokemakingandlogisticsoperations,adverselyaffectourabilitytoservicetheneedsofourcustomers,andincreaseouroperatingcosts,allofwhichcouldhaveamaterialadverseeffectonourresultsofoperations.Suchfactorscouldinclude:

• geological,hydrologic,orotherconditionsthatmaycausedamagetoinfrastructureorpersonnel;

• fire,explosion,orothermajorincidentcausinginjurytopersonneland/orequipment,thatcausesacessation,orsignificantcurtailment,ofallorpartofourcokemakingorlogicsoperationsatasiteforaperiodoftime;

• processingandplantequipmentfailures,operatinghazardsandunexpectedmaintenanceproblemsaffectingourcokemakingorlogisticsoperations,orourcustomers;

• adverseweatherandnaturaldisasters,suchasseverewinds,heavyrainsorsnow,flooding,extremetemperaturesandothernaturaleventsaffectingourcokemakingorlogisticsoperations,transportation,orourcustomers;and

• possiblelegalchallengestotherenewalofkeypermits,whichmayleadtotheirrenewalontermsthatrestrictourcokemakingorlogisticsoperations,orimposeadditionalcostsonus.

Ifanyoftheseconditionsoreventsoccur,ourcokemakingorlogisticsoperationsmaybedisrupted,operatingcostscouldincreasesignificantly,andwecouldincursubstantiallosses.Suchdisruptionsinouroperationscouldmateriallyandadverselyaffectourfinancialcondition,orresultsofoperations.

We face competition, both in our cokemaking operations and in our logistics business, which has the potential to reduce demand for our products andservices, and that could have an adverse effect on our results of operations, and therefore may limit our ability to make cash distributions to unitholders.

Wefacecompetition,bothinourcokemakingoperationsandinourlogisticsbusiness:

• Cokemakingoperations:Historically,cokehasbeenusedasamaininputintheproductionofsteelinblastfurnaces.However,someblastfurnaceoperatorshaverelieduponnaturalgas,pulverizedcoal,and/orothercokesubstitutes.Manysteelmakersalsoareexploringalternativestoblastfurnacetechnologythatrequirelessornouseofcoke.Forexample,electricarcfurnacetechnologyisacommerciallyprovenprocesswidely

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usedintheU.S.Asthesealternativeprocessesforproductionofsteelbecomemorewidespread,thedemandforcoke,includingthecokeweproduce,maybesignificantlyreduced.Wealsofacecompetitionfromalternativecokemakingtechnologies,includingbothby-productandheatrecoverytechnologiesotherthanourown.Asthesetechnologiesimproveandasnewtechnologiesaredeveloped,competitioninthecokemakingindustrymayintensify.Asalternativeprocessesforproductionofsteelbecomemorewidespread,thedemandforcoke,includingthecokeweproduce,maybesignificantlyreduced.

• Logisticsbusiness:Decreasedthroughputandutilizationofourlogisticsassetscouldresultindirectlyduetocompetitionintheelectricalpowergenerationbusinessfromabundantandrelativelyinexpensivesuppliesofnaturalgasdisplacingthermalcoalasafuelforelectricalpowergenerationbyutilitycompanies.Inaddition,competitioninthesteelindustryfromprocessessuchaselectricarcfurnaces,orblastfurnaceinjectionofpulverizedcoalornaturalgas,mayreducethedemandformetallurgicalcoalsprocessedthroughourlogisticsfacilities.Inthefuture,additionalcoalhandlingfacilitiesandterminalswithrailand/orbargeaccessmaybeconstructedintheEasternU.S.Suchadditionalfacilitiescouldcompetedirectlywithusinspecificmarketsnowservedbyourlogisticsbusiness.Certaincoalminingcompaniesandindependentterminaloperatorsinsomeareasmaycompetedirectlywithourlogisticsfacilities.Insomemarkets,trucksmaycompetitivelydeliverminedcoaltocertainshorter-hauldestinations,resultinginreducedutilizationofexistingterminalcapacity.

Suchcompetitioncouldreducedemandforourproductsandservices,thushavingamaterialandadverseeffectonourresultsofoperations.

We are subject to extensive laws and regulations, which may increase our cost of doing business and have an adverse effect on our cash flows,financial position or results of operations, and therefore may limit our ability to make cash distributions to unitholders.

Ouroperationsaresubjecttostrictregulationbyfederal,stateandlocalauthoritieswithrespectto:dischargesofsubstancesintotheairandwater;emissionsofgreenhousegases,orGHG,compliancewiththeNAAQS,managementanddisposalofhazardoussubstancesandwastes,cleanupofcontaminatedsites,protectionofgroundwaterqualityandavailability,protectionofplantsandwildlife,reclamationandrestorationofpropertiesaftercompletionofminingordrilling,installationofsafetyequipmentinourfacilities,salesofelectricpower,andprotectionofemployeehealthandsafety.Complyingwiththeseandotherregulatoryrequirements,includingthetermsofourpermits,canbecostlyandtime-consuming,andmayhinderoperations.Inaddition,theserequirementsarecomplex,changefrequentlyandhavebecomemorestringentovertime.Regulatoryrequirementsmaychangeinthefutureinamannerthatcouldresultinsubstantiallyincreasedcapital,operatingandcompliancecosts,andcouldhaveamaterialadverseeffectonourbusiness.

Failuretocomplywithapplicablelaws,regulationsorpermitsmayresultintheassessmentofadministrative,civilandcriminalpenalties,theimpositionofcleanupandsiterestorationcostsandliens,theissuanceofinjunctionstolimitorceaseoperations,thesuspensionorrevocationofpermitsandotherenforcementmeasuresthatcouldcausedelaysinpermittingordevelopmentofprojectsormateriallylimit,orincreasethecostof,ouroperations.Wemaynothavebeen,ormaynotbe,atalltimes,incompletecompliancewithallsuchrequirements,andwemayincurmaterialcostsorliabilitiesinconnectionwithsuchrequirements,orinconnectionwithremediationatsitesweown,orthird-partysiteswhereithasbeenallegedthatwehaveliability,inexcessoftheamountswehaveaccrued.Foradescriptionofcertainenvironmentallawsandmattersapplicabletous,see“Item1.Business-LegalandRegulatoryRequirements.”

We may be unable to obtain, maintain or renew permits or leases necessary for our operations, which could materially reduce our production, cashflows or profitability, and therefore may limit our ability to make cash distributions to unitholders.

Ourcokemakingandlogisticsoperationsrequireustoobtainanumberofpermitsthatimposestrictregulationsonvariousenvironmentalandoperationalmatters.These,aswellasourfacilitiesandoperations(includingourgenerationofelectricity),requirepermitsissuedbyvariousfederal,stateandlocalagenciesandregulatorybodies.Thepermittingrules,andtheinterpretationsoftheserules,arecomplex,changefrequently,andareoftensubjecttodiscretionaryinterpretationsbyourregulators,allofwhichmaymakecompliancemoredifficultorimpractical,andmaypossiblyprecludethecontinuanceofongoingoperationsorthedevelopmentoffuturecokemakingand/orlogisticsfacilities.Non-governmentalorganizations,environmentalgroupsandindividualshavecertainrightstoengageinthepermittingprocess,andmaycommentupon,orobjectto,therequestedpermits.Suchpersonsalsohavetherighttobringcitizen’slawsuitstochallengetheissuanceofpermits,orthevalidityofenvironmentalimpactstatementsrelatedthereto.Ifanypermitsorleasesarenotissuedorrenewedinatimelyfashionoratall,orifpermitsissuedorrenewedareconditionedinamannerthatrestrictsourabilitytoefficientlyandeconomicallyconductouroperations,ourcashflowsorprofitabilitycouldbemateriallyandadverselyaffected.

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We may incur costs and liabilities resulting from claims for damages to property or injury to persons arising from our operations, and such costs andliabilities could have a material and adverse effect on our financial condition or results of operations, and therefore may limit our ability to make cashdistributions to unitholders.

Oursuccessdepends,inpart,onthequality,efficacyandsafetyofourproductsandservices.Ifouroperationsdonotmeetapplicablesafetystandards,orourproductsorservicesarefoundtobeunsafe,ourrelationshipswithcustomerscouldsufferandwecouldlosebusinessorbecomesubjecttoliabilityorclaims.Inaddition,ourcokemakingandlogisticsoperationshaveinherentsafetyrisksthatmaygiverisetoeventsresultingindeath,injury,orpropertylosstoemployees,customers,orunaffiliatedthirdparties.Dependinguponthenatureandseverityofsuchevents,wecouldbeexposedtosignificantfinancialloss,reputationaldamage,potentialcivilorcriminalgovernmentorotherregulatoryenforcementactions,orprivatelitigation,thesettlementoroutcomeofwhichcouldhaveamaterialandadverseeffectonourfinancialconditionorresultsofoperations.

Our businesses are subject to inherent risks, some for which we maintain third party insurance and some for which we self-insure. We may incurlosses and be subject to liability claims that could have a material adverse effect on our financial condition, results of operations or cash flows, and thereforemay limit our ability to make cash distributions to unitholders.

Wearecurrentlycoveredbyinsurancepoliciesmaintainedbyoursponsorandwecurrentlymaintainourowndirectors’andofficers’liabilityinsurancepolicy.Theseinsurancepoliciesprovidelimitedcoverageforsome,butnotall,ofthepotentialrisksandliabilitiesassociatedwithourbusinesses.Forsomerisks,wemaynotobtaininsuranceorbecoveredbyoursponsor’spoliciesifwebelievethecostofavailableinsuranceisexcessiverelativetotheriskspresented.Asaresultofmarketconditions,premiumsanddeductiblesforcertaininsurancepoliciescanincreasesubstantially,andinsomeinstances,certaininsurancemaybecomeunavailableoravailableonlyforreducedamountsofcoverage.Asaresult,weandoursponsormaynotbeabletorenewouroritsexistinginsurancepoliciesorprocureotherdesirableinsuranceoncommerciallyreasonableterms,ifatall.Inaddition,certainrisks,suchascertainenvironmentalandpollutionrisks,andcertaincybersecurityrisks,generallyarenotfullyinsurable.Evenwhereinsurancecoverageapplies,insurersmaycontesttheirobligationstomakepayments.Further,withtheexceptionofdirectors’andofficers’liability,forwhichwemaintainourowninsurancepolicy,ourcoverageunderoursponsor’sinsurancepoliciesisoursolesourceofinsuranceforrisksrelatedtoourbusiness.Oursponsor’sinsurancecoveragemaynotbeadequatetocoverusagainstlossesweincurandcoverageunderthesepoliciesmaybedepletedormaynotbeavailabletoustotheextentthatoursponsorexhauststhecoveragelimits.Ourfinancialcondition,resultsofoperationsandcashflowsand,therefore,ourabilitytodistributecashtounitholders,couldbemateriallyandadverselyaffectedbylossesandliabilitiesfromun-insuredorunder-insuredevents,aswellasbydelaysinthepaymentofinsuranceproceeds,orthefailurebyinsurerstomakepayments.

Wealsomayincurcostsandliabilitiesresultingfromclaimsfordamagestopropertyorinjurytopersonsarisingfromouroperations.Wemustcompensateemployeesforwork-relatedinjuries.Ifwedonotmakeadequateprovisionforourworkers’compensationliabilities,itcouldharmourfutureoperatingresults.Ifwearerequiredtopayforthesesanctions,costsandliabilities,ouroperationsandthereforeourabilitytodistributecashtounitholderscouldbeadverselyaffected.

Divestitures and other significant transactions may adversely affect our business. In particular, if we are unable to realize the anticipated benefitsfrom such transactions, or are unable to conclude such transactions upon favorable terms, our financial condition, results of operations or cash flows could beadversely affected.

Weregularlyreviewstrategicopportunitiestofurtherourbusinessobjectives,andmayeliminateassetsthatdonotmeetourreturn-on-investmentcriteria.Ifweareunabletocompletesuchdivestituresorothertransactionsuponfavorableterms,orinatimelymanner,orifthemarketconditionsassumedinourprojecteconomicsdeteriorate,ourfinancialcondition,resultsofoperationsorcashflowscouldbeadverselyaffected.

Theanticipatedbenefitsofdivestituresandotherstrategictransactionsmaynotberealized,ormayberealizedmoreslowlythanweexpected.Suchtransactionsalsocouldresultinanumberoffinancialconsequenceshavingamaterialeffectonourresultsofoperationsandourfinancialposition,includingreducedcashbalances;higherfixedexpenses;theincurrenceofdebtandcontingentliabilities(includingindemnificationobligations);restructuringcharges;lossofcustomers,suppliers,distributors,licensorsoremployees;legal,accountingandadvisoryfees;andimpairmentcharges.

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We may not be able to successfully implement our growth strategies or plans, and we may experience significant risks associated with futureacquisitions and/or investments. If we are unable to execute our strategic plans, whether as a result of unfavorable market conditions in the industries inwhich our customers operate, or otherwise, our future results of operations could be materially and adversely affected.

Aportionofourstrategytogrowourbusinessisdependentuponourabilitytoacquireandoperatenewassetsthatresultinanincreaseinourearningspershare.Wemaynotderivethefinancialreturnsweexpectonourinvestmentinsuchadditionalassetsorsuchoperationsmaynotbeprofitable.Wecannotpredicttheeffectthatanyfailedexpansionmayhaveonourcorebusinesses.Thesuccessofourfutureacquisitionsand/orinvestmentswilldependsubstantiallyontheaccuracyofouranalysisconcerningsuchbusinessesandourabilitytocompletesuchacquisitionsorinvestmentsonfavorableterms,aswellastofinancesuchacquisitionsorinvestmentsandtointegratetheacquiredoperationssuccessfullywithexistingoperations.Antitrustandotherlawsmaypreventusfromcompletingacquisitions.Ifwearenotabletoexecuteourstrategicplanseffectively,orsuccessfullyintegratenewoperations,whetherasaresultofunfavorablemarketconditionsintheindustriesinwhichourcustomersoperate,orotherwise,ourbusinessreputationcouldsufferandfutureresultsofoperationscouldbemateriallyandadverselyaffected.

Risksassociatedwithacquisitionsincludethediversionofmanagement’sattentionfromotherbusinessconcerns,thepotentiallossofkeyemployeesandcustomersoftheacquiredbusiness,thepossibleassumptionofunknownliabilities,potentialdisputeswiththesellers,andtheinherentrisksinenteringmarketsorlinesofbusinessinwhichwehavelimitedornopriorexperience.Additionally,intheeventweformjointventuresorothersimilararrangements,wemustpaycloseattentiontotheorganizationalformalitiesandtime-consumingproceduresforsharinginformationandmakingdecisions.Wemayshareownershipandmanagementwithotherpartieswhomaynothavethesamegoals,strategies,priorities,orresourcesaswedo.Thebenefitsfromasuccessfulinvestmentinanexistingentityorjointventurewillbesharedamongtheco-owners,sowewillnotreceivetheexclusivebenefitsfromasuccessfulinvestment.Additionally,ifaco-ownerchanges,ourrelationshipmaybemateriallyandadverselyaffected.

Security breaches and other information systems failures could disrupt our operations, compromise the integrity of our data, expose us to liability,cause increased expenses and cause our reputation to suffer, any or all of which could have a material and adverse effect on our business or financial position.

Ourbusinessisdependentonfinancial,accountingandotherdataprocessingsystemsandothercommunicationsandinformationsystems,includingourenterpriseresourceplanningtools.Weprocessalargenumberoftransactionsonadailybasisandrelyupontheproperfunctioningofcomputersystems.Ifakeysystemweretofailorexperienceunscheduleddowntimeforanyreason,ouroperationsandfinancialresultscouldbeaffectedadversely.Oursystemscouldbedamagedorinterruptedbyasecuritybreach,terroristattack,fire,flood,powerloss,telecommunicationsfailureorsimilarevent.Ourdisasterrecoveryplansmaynotentirelypreventdelaysorothercomplicationsthatcouldarisefromaninformationsystemsfailure.Ourbusinessinterruptioninsurancemaynotcompensateusadequatelyforlossesthatmayoccur.

Intheordinarycourseofourbusiness,wecollectandstoresensitivedatainourdatacenters,onournetworks,andinourcloudvendors.Inaddition,werelyonthirdpartyserviceproviders,forsupportofourinformationtechnologysystems,includingthemaintenanceandintegrityofproprietarybusinessinformationandotherconfidentialcompanyinformationanddatarelatingtocustomers,suppliersandemployees.Thesecureprocessing,maintenanceandtransmissionofthisinformationiscriticaltoouroperationsandbusinessstrategy.Wehaveinstituteddatasecuritymeasuresforconfidentialcompanyinformationanddatastoredonelectronicandcomputingdevices,whetherownedorleasedbyusorathirdpartyvendor.However,despitesuchmeasures,therearerisksassociatedwithcustomer,vendor,andotherthird-partyaccessandourinformationtechnologyandinfrastructuremaybevulnerabletoattacksbyhackersorbreacheddueto:employeeerrorormalfeasance,failureofthirdpartiestomeetcontractual,regulatoryandotherobligationstous,orotherdisruptions.

Anysuchbreachcouldcompromiseournetworksandtheinformationstoredtherecouldbeaccessed,publiclydisclosed,lostorstolen.Anysuchaccess,disclosureorotherlossofinformationcouldresultinlegalclaimsorproceedings,liabilityunderlawsthatprotecttheprivacyofpersonalinformation,andregulatorypenalties,disruptouroperations,anddamageourreputation,whichcouldmateriallyandadverselyaffectourbusinessandfinancialposition.

We are exposed to, and may be adversely affected by, interruptions to our computer and information technology systems and sophisticated cyber-attacks.

Werelyonourinformationtechnologysystemsandnetworksinconnectionwithmanyofourbusinessactivities.Someofthesenetworksandsystemsaremanagedbythird-partyserviceprovidersandarenotunderourdirectcontrol.Ouroperationsroutinelyinvolvereceiving,storing,processingandtransmittingsensitiveinformationpertainingtoour

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business,customers,dealers,suppliers,employeesandothersensitivematters.Cyber-attackscouldmateriallydisruptoperationalsystems;resultinlossoftradesecretsorotherproprietaryorcompetitivelysensitiveinformation;compromisepersonallyidentifiableinformationregardingcustomersoremployees;andjeopardizethesecurityofourfacilities.Acyber-attackcouldbecausedbymaliciousoutsidersusingsophisticatedmethodstocircumventfirewalls,encryptionandothersecuritydefenses.Becausetechniquesusedtoobtainunauthorizedaccessortosabotagesystemschangefrequentlyandgenerallyarenotrecognizeduntiltheyarelaunchedagainstatarget,wemaybeunabletoanticipatethesetechniquesortoimplementadequatepreventativemeasures.Informationtechnologysecuritythreats,includingsecuritybreaches,computermalwareandothercyber-attacksareincreasinginbothfrequencyandsophisticationandcouldcreatefinancialliability,subjectustolegalorregulatorysanctionsordamageourreputationwithcustomers,dealers,suppliersandotherstakeholders.Wecontinuouslyseektomaintainarobustprogramofinformationsecurityandcontrols,butacyber-attackcouldhaveamaterialadverseeffectonourcompetitiveposition,reputation,resultsofoperations,financialconditionandcashflows.Ascyber-attackscontinuetoevolve,wemayberequiredtoexpendadditionalresourcestocontinuetomodifyorenhanceourprotectivemeasuresortoinvestigateandremediateanyinformationsecurityvulnerabilities.

We are or may become subject to privacy and data protection laws, rules and directives relating to the processing of personal data in the countrieswhere we operate.

Thegrowthofcyber-attackshasresultedinanevolvinglegallandscapewhichimposescoststhatarelikelytoincreaseovertime.Forexample,newlawsandregulationsgoverningdataprivacyandtheunauthorizeddisclosureofconfidentialinformation,includingtheEuropeanUnionGeneralDataProtectionRegulationandrecentCalifornialegislation(which,amongotherthings,providesforaprivaterightofaction),poseincreasinglycomplexcompliancechallengesandcouldpotentiallyelevateourcostsovertime.Anyfailurebyustocomplywithsuchlawsandregulationscouldresultinpenaltiesandliabilities.Itisalsopossibleundercertainlegislationthatifweacquireacompanythathasviolatedorisnotincompliancewithapplicabledataprotectionlaws,wemayincursignificantliabilitiesandpenaltiesasaresult.

Our operating results have been and may continue to be affected by fluctuations in our costs of production, and, if we cannot pass increases in ourcosts of production to our customers, our financial condition, results of operations and cash flows may be negatively affected.

Ouroperationsrequireareliablesupplyofequipment,replacementpartsandmetallurgicalcoal.Ifthecosttoproducecokeandprovidelogisticsservices,includingcostofsupplies,equipment,metallurgicalcoal,labor,experiencesignificantpriceinflation,andwecannotpasssuchincreasesinourcostsofproductiontoourcustomers,ourprofitmarginsmaybereducedandourfinancialcondition,resultsofoperationsandcashflowsmaybeadverselyaffected.

Labor disputes with the unionized portion of our workforce could affect us adversely. Union represented labor creates an increased risk of workstoppages and higher labor costs, which could reduce revenues and therefore limit our ability to make cash distributions to unitholders.

Werely,atoneormoreofourfacilities,onunionizedlabor,andthereisalwaysthepossibilitythatwemaybeunabletoreachagreementontermsandconditionsofemploymentorrenewalofacollectivebargainingagreement.Whencollectivebargainingagreementsexpireorterminate,wemaynotbeabletonegotiatenewagreementsonthesameormorefavorabletermsasthecurrentagreements,oratall,andwithoutproductioninterruptions,includinglaborstoppages.Ifweareunabletonegotiatetherenewalofacollectivebargainingagreementbeforeitsexpirationdate,ouroperationsandourprofitabilitycouldbeadverselyaffected.Aprolongedlabordispute,whichmayincludeaworkstoppage,couldadverselyaffectourabilitytosatisfyourcustomers’ordersand,asaresult,adverselyaffectouroperations,orthestabilityofproductionandreduceourfuturerevenues,orprofitability,aswellasourabilitytopaycashdistributionstoourunitholders.Itisalsopossiblethat,inthefuture,additionalemployeegroupsmaychoosetoberepresentedbyalaborunion.

Our ability to operate our company effectively could be impaired if we fail to attract and retain key personnel.

Wehaveimplementedrecruitment,trainingandretentioneffortstooptimallystaffouroperations.Ourabilitytooperateourbusinessandimplementourstrategiesdependsinpartontheeffortsofourexecutiveofficersandotherkeyemployees.Inaddition,ourfuturesuccesswilldependon,amongotherfactors,ourabilitytoattractandretainotherqualifiedpersonnel.Thelossoftheservicesofanyofourexecutiveofficersorotherkeyemployeesortheinabilitytoattractorretainotherqualifiedpersonnelinthefuturecouldhaveamaterialadverseeffectonourbusinessorbusinessprospects.Withrespecttoourrepresentedemployees,wemaybeadverselyimpactedbythelossofemployeeswhoretireorobtainotheremploymentduringalayofforaworkstoppage.

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We currently are, and likely will be, subject to litigation, the disposition of which could have a material adverse effect on our cash flows, financialposition or results of operations.

Thenatureofouroperationsexposesustopossiblelitigationclaimsinthefuture,includingdisputesrelatingtoouroperationsandcommercialandcontractualarrangements.Althoughwemakeeveryefforttoavoidlitigation,thesemattersarenottotallywithinourcontrol.Wewillcontestthesemattersvigorouslyandhavemadeinsuranceclaimswhereappropriate,butbecauseoftheuncertainnatureoflitigationandcoveragedecisions,wecannotpredicttheoutcomeofthesematters.Litigationisverycostly,andthecostsassociatedwithprosecutinganddefendinglitigationmatterscouldhaveamaterialadverseeffectonourfinancialconditionandprofitability.Inaddition,ourprofitabilityorcashflowinaparticularperiodcouldbeaffectedbyanadverserulinginanylitigationcurrentlypendinginthecourtsorbylitigationthatmaybefiledagainstusinthefuture.Wearealsosubjecttosignificantenvironmentalandothergovernmentregulation,whichsometimesresultsinvariousadministrativeproceedings.Foradditionalinformation,see“Item3.LegalProceedings.”

Risks Related to Our Indebtedness

We face material debt maturities which may adversely affect our consolidated financial position.

Overthenextfiveyears,wehaveapproximately$115.1millionoftotalconsolidateddebtmaturing(SeeNote11totheconsolidatedfinancialstatements).Wemaynotbeabletorefinancethisdebt,ormaybeforcedtodosoontermssubstantiallylessfavorablethanourcurrentlyoutstandingdebt.Wemaybeforcedtodelayornotmakecapitalexpenditures,whichmayadverselyaffectourcompetitivepositionandfinancialresults.

Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under outstanding notes and creditfacilities.

Subjecttothelimitscontainedinourcreditagreements,theindenturethatgovernsouroutstandingnotes,andourotherdebtinstruments,wemaybeabletoincuradditionaldebtfromtimetotimetofinanceworkingcapital,capitalexpenditures,investmentsoracquisitions,orforotherpurposes.Ifwedoso,therisksrelatedtoourlevelofdebtcouldintensify.Specifically,ahigherlevelofdebtcouldhaveimportantconsequences,including:

• makingitmoredifficultforustosatisfyourobligationswithrespecttothenotesandourotherdebt;

• limitingourabilitytoobtainadditionalfinancingtofundfutureworkingcapital,capitalexpenditures,acquisitionsorothergeneralcorporaterequirements;

• requiringasubstantialportionofourcashflowstobededicatedtodebtservicepaymentsinsteadofotherpurposes,therebyreducingtheamountofcashflowsavailableforthepaymentofdividends,workingcapital,capitalexpenditures,acquisitionsandothergeneralcorporatepurposes;

• increasingourvulnerabilitytogeneraladverseeconomicandindustryconditions;

• exposingustotheriskofincreasedinterestratesascertainofourborrowings,includingborrowingsunderthecreditfacilities,areatvariableratesofinterest;

• limitingourflexibilityinplanningforandreactingtochangesintheindustryinwhichwecompete;

• placingusatacompetitivedisadvantagetoother,lessleveragedcompetitors;and

• increasingourcostofborrowing.

Inaddition,theindenturethatgovernsouroutstandingnotesandthecreditagreementgoverningourcreditfacilitiescontainrestrictivecovenantsthatlimitourabilitytoengageinactivities(suchasincurringadditionaldebt)thatmaybeinourlong-termbestinterest.Ourfailuretocomplywiththosecovenantscouldresultinaneventofdefaultwhich,ifnotcuredorwaived,couldresultintheaccelerationofallourdebt.

Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.

Borrowingsunderthecreditfacilitiesareatvariableratesofinterestandexposeustointerestraterisk.Ifinterestratesincrease,ourdebtserviceobligationsonthevariablerateindebtednesswillincreaseeventhoughtheamountborrowedremainsthesame,andournetincomeandcashflows,includingcashavailableforservicingourindebtedness,willcorrespondinglydecrease.Fromtimetotime,wemayenterintointerestrateswapsthatinvolvetheexchangeoffloatingforfixedrateinterestpaymentsinordertoreduceinterestratevolatility.

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Our credit facilities and the indenture governing our senior notes each contains restrictions and financial covenants that may restrict our businessand financing activities.

Ourcreditfacilitiesandtheindenturegoverningourseniornotescontain,andanyotherfuturefinancingagreementsthatwemayenterintowilllikelycontain,operatingandfinancialrestrictionsandcovenantsthatmayrestrictourabilitytofinancefutureoperationsorcapitalneeds,toengagein,expandorpursueourbusinessactivitiesortomakedistributionstoourunitholders.

Ourabilitytocomplywithanysuchrestrictionsandcovenantsisuncertainandwillbeaffectedbythelevelsofcashflowfromouroperationsandeventsorcircumstancesbeyondourcontrol.Ifmarketorothereconomicconditionsdeteriorate,ourabilitytocomplywiththesecovenantsmaybeimpaired.Ifweviolateanyoftherestrictions,covenants,ratiosortestsinourcreditfacilitiesortheindenture,asignificantportionofourindebtednessmaybecomeimmediatelydueandpayableandourlenders’commitmenttomakefurtherloanstousmayterminate.Wemightnothave,orbeabletoobtain,sufficientfundstomaketheseacceleratedpayments.

Restrictions in the agreements governing our indebtedness and other factors could limit our ability to make distributions to our unitholders.

Theindenturegoverningtheseniornotesandourcreditfacilitiesprohibitusfrommakingdistributionstounitholdersifcertaindefaultsexist,subjecttocertainexceptions.Inaddition,boththeindentureandthecreditfacilitiescontainadditionalrestrictionslimitingourabilitytopaydistributionstounitholders.Accordingly,wemayberestrictedbyourdebtagreementsfromdistributingallofouravailablecashtoourunitholders.Pleaseread“PartII.Item7.Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations-LiquidityandCapitalResources.”Declarationandpaymentoffuturedistributionstounitholderswilldependuponseveralfactors,includingourfinancialcondition,earnings,capitalrequirements,levelofindebtedness,statutoryandcontractualrestrictionsapplyingtothepaymentofsuchdistributions,andsuchotherconsiderationsthattheBoardofDirectorsofourgeneralpartnerdeemsrelevant.

Our level of indebtedness may increase, reducing our financial flexibility.

Inthefuture,wemayincursignificantindebtednessinordertomakefutureacquisitionsortodeveloporexpandourfacilities.Ourlevelofindebtednesscouldaffectouroperationsinseveralways,includingthefollowing:

• asignificantportionofourcashflowscouldbeusedtoserviceourindebtedness;

• ahighlevelofdebtwouldincreaseourvulnerabilitytogeneraladverseeconomicandindustryconditions;

• thecovenantscontainedintheagreementsgoverningouroutstandingindebtednesswilllimitourabilitytoborrowadditionalfunds,disposeofassets,paydistributionsandmakecertaininvestments;

• ahighlevelofdebtmayplaceusatacompetitivedisadvantagecomparedtoourcompetitorsthatarelessleveraged,andthereforemaybeabletotakeadvantageofopportunitiesthatourindebtednesswouldpreventusfrompursuing;

• ourdebtcovenantsmayalsoaffectourflexibilityinplanningfor,andreactingto,changesintheeconomyandourindustry;and

• ahighlevelofdebtmayimpairourabilitytoobtainadditionalfinancinginthefutureforworkingcapital,capitalexpenditures,acquisitions,distributionsorforgeneralcorporateorotherpurposes.

Ahighlevelofindebtednessincreasestheriskthatwemaydefaultonourdebtobligations.Ourabilitytomeetourdebtobligationsandtoreduceourlevelofindebtednessdependsonourfutureperformance.Generaleconomicconditionsandfinancial,businessandotherfactorsaffectouroperationsandourfutureperformance.Manyofthesefactorsarebeyondourcontrol.Wemaynotbeabletogeneratesufficientcashflowstopaytheinterestonourdebt,andfutureworkingcapital,borrowingsorequityfinancingmaynotbeavailabletopayorrefinancesuchdebt.Factorsthatwillaffectourabilitytoraisecashthroughanofferingofourunitsorarefinancingofourdebtincludefinancialmarketconditions,thevalueofourassetsandourperformanceatthetimeweneedcapital.

Rating agencies may downgrade our credit ratings, which would make it more difficult for us to raise capital and would increase our financing costs.

Anydowngradesinourcreditratingsmaymakeraisingcapitalmoredifficult,mayincreasethecostandaffectthetermsoffutureborrowings,mayaffectthetermsunderwhichwepurchasegoodsandservicesandmaylimitourabilitytotakeadvantageofpotentialbusinessopportunities.

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Risks Related to Our Cokemaking Business

If a substantial portion of our agreements to supply coke, electricity, and/or steam are modified or terminated, our results of operations may beadversely affected if we are not able to replace such agreements, or if we are not able to enter into new agreements at the same level of profitability.

Wemakesubstantiallyallofourcoke,electricityandsteamsalesunderlong-termagreements.Ifasubstantialportionoftheseagreementsaremodifiedorterminatedorifforcemajeureisexercised,ourresultsofoperationsmaybeadverselyaffectedifwearenotabletoreplacesuchagreements,orifwearenotabletoenterintonewagreementsatthesamelevelofprofitability.Theprofitabilityofourlong-termcoke,energyandsteamsalesagreementsdependsonavarietyoffactorsthatvaryfromagreementtoagreementandfluctuateduringtheagreementterm.Wemaynotbeabletoobtainlong-termagreementsatfavorableprices,comparedeithertomarketconditionsortoourcoststructure.Pricechangesprovidedinlong-termsupplyagreementsmaynotreflectactualincreasesinproductioncosts.Asaresult,suchcostincreasesmayreduceprofitmarginsonourlong-termcokeandenergysalesagreements.Inaddition,contractualprovisionsforadjustmentorrenegotiationofpricesandotherprovisionsmayincreaseourexposuretoshort-termpricevolatility.

Fromtimetotime,wediscusstheextensionofexistingagreementsandenterintonewlong-termagreementsforthesupplyofcoke,steam,andenergytoourcustomers,butthesenegotiationsmaynotbesuccessfulandthesecustomersmaynotcontinuetopurchasecoke,steam,orelectricityfromusunderlong-termagreements.Inaddition,declarationsofbankruptcybycustomerscanresultinchangesinourcontractswithlessfavorableterms.Ifanyoneormoreofthesecustomersweretobecomefinanciallydistressedandunabletopayus,significantlyreducetheirpurchasesofcoke,steam,orelectricityfromus,orifwewereunabletosellcokeorelectricitytothemontermsasfavorabletousasthetermsunderourcurrentagreements,ourcashflows,financialposition,permitcompliance,orresultsofoperationsmaybemateriallyandadverselyaffected.

Further,becauseofcertaintechnologicaldesignconstraints,wedonothavetheabilitytoshutdownourcokemakingoperationsifwedonothaveadequatecustomerdemand.Ifacustomerrefusestotakeorpayforourcoke,wemustcontinuetooperateourcokeovenseventhoughwemaynotbeabletosellourcokeimmediatelyandmayincursignificantadditionalcostsfornaturalgastomaintainthetemperatureinsideourcokeovenbatteriesandfeesunderourrailcontractstoaccountforreductionsininboundcoaloroutboundcokeshipmentsatourplants,whichmayhaveamaterialandadverseeffectonourcashflows,financialpositionorresultsofoperations.

The coke sales agreement and the energy sales agreement with AK Steel at our Haverhill II facility are subject to early termination under certaincircumstances and any such termination coupled with our inability to market the coke at similar prices could adversely affect our financial position.

ThecokesalesagreementandtheenergysalesagreementwithAKSteelatourHaverhillIIfacilityaresubjecttoearlyterminationbyAKSteeluponsatisfactionoftwocriteria.TheHaverhillcokesalesagreementwithAKSteelexpiresonDecember31,2021.TheHaverhillenergysalesagreementwithAKSteelrunsconcurrentlywiththetermofthecokesalesagreement,includinganyrenewals,andautomaticallyterminatesupontheterminationoftherelatedcokesalesagreement.SinceJanuary1,2014,thecokesalesagreementmaybeterminatedbyAKSteelatanytimeonorafterupontwoyearspriorwrittennotice,ifAKSteel(i)permanentlyshutsdownoperationoftheironproducingportionatitssteelmillinAshland,Kentucky(theAshlandWorksPlant)and(ii)hasnotacquiredorbegunconstructionofanewblastfurnaceintheU.S.toreplace,inwholeorinpart,theAshlandWorksPlant’sironproductioncapacity.IfAKSteelwereabletosatisfybothcriteriaandchosetoelectearlytermination,AKSteelmustprovidetwoyearsadvancenoticeofthetermination.Duringthetwoyearnoticeperiod,AKSteelmustcontinuetoperforminfullunderthetermsofthecokesalesagreementandenergysalesagreement.OnJanuary28,2019,AKSteelannounceditsintentiontopermanentlycloseitsAshlandWorksPlantbytheendof2019.WeretheAshlandWorksPlanttopermanentlyshutdown,webelieveAKSteelhasnotandwouldnotsatisfythesecondcriterion.

IfAKSteelweretoterminatethecokesalesagreementandwewereunabletoenterintosimilarlong-termcontractswithreplacementcustomersforthecokepreviouslypurchasedbyAKSteel,thenwemaybeforcedtosellsomeorallofthepreviouslycontractedcokeinthespotmarket.

Excess capacity in the global steel industry, and/or increased exports of coke from producing countries, may weaken our customers' demand for ourcoke and could materially and adversely affect our future revenues and profitability.

Insomecountriessteelmakingcapacityexceedsdemandforsteelproducts.Ratherthanreducingemploymentbymatchingproductioncapacitytoconsumption,steelmanufacturersinthesecountries(oftenwithlocalgovernmentassistanceorsubsidiesinvariousforms)mayexportsteelatpricesthataresignificantlybelowtheirhomemarketprices

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andthatmaynotreflecttheircostsofproductionorcapital.Oursteelmakingcustomers,maydecreasethepricestheychargeforsteel,ortakeotheraction,asthesupplyofsteelincreases.Theprofitabilityandfinancialpositionofoursteelmakingcustomersmaybeadverselyaffected,causingsuchcustomerstoreducetheirdemandforourcokeandmakingitmorelikelythattheymayseektorenegotiatetheircontractswithusorfailtopayforthecoketheyarerequiredtotakeunderourcontracts.Inaddition,futureincreasesinexportsofcokefromChinaand/orothercoke-producingcountriesalsomayreduceourcustomers'demandforcokecapacity.Suchreduceddemandforourcokecouldadverselyaffectthecertaintyofourlong-termrelationshipswithourcustomersdepresscokeprices,andlimitourabilitytoenterintonew,orrenewexisting,commercialarrangementswithourcustomers,aswellasourabilitytosellexcesscapacityinthespotmarket,andcouldmateriallyandadverselyaffectourfuturerevenuesandprofitability.

Certain provisions in our long-term coke agreements may result in economic penalties to us, or may result in termination of our coke salesagreements for failure to meet minimum volume requirements or other required specifications, and certain provisions in these agreements and our energysales agreements may permit our customers to suspend performance.

Ouragreementsforthesupplyofcoke,energyand/orsteam,containprovisionsrequiringustosupplyminimumvolumesofourproductstoourcustomers.Totheextentwedonotmeettheseminimumvolumes,wearegenerallyrequiredunderthetermsofourcokesalesagreementstoprocurereplacementsupplytoourcustomersattheapplicablecontractpriceorpotentiallybesubjecttocoverdamagesforanyshortfall.Iffutureshortfallsoccur,wewillworkwithourcustomertoidentifypossibleothersupplysourceswhileweimplementoperatingimprovementsatthefacility,butwemaynotbesuccessfulinidentifyingalternativesuppliesandmaybesubjecttopayingthecontractpriceforanyshortfallortocoverdamages,eitherofwhichcouldadverselyaffectourfuturerevenuesandprofitability.Ourcokesalesagreementsalsocontainprovisionsrequiringustodelivercokethatmeetscertainqualitythresholds.Failuretomeetthesespecificationscouldresultineconomicpenalties,includingpriceadjustments,therejectionofdeliveriesorterminationofouragreements.

Ourcokeandenergysalesagreementscontainforcemajeureprovisionsallowingtemporarysuspensionofperformancebyourcustomersforthedurationofspecifiedeventsbeyondthecontrolofourcustomers.Declarationofforcemajeure,coupledwithalengthysuspensionofperformanceunderoneormorecokeorenergysalesagreements,mayseriouslyandadverselyaffectourcashflows,financialpositionandresultsofoperations.

To the extent we do not meet coal-to-coke yield standards in our coke sales agreements, we are responsible for the cost of the excess coal used in thecokemaking process, which could adversely impact our results of operations and profitability.

Ourabilitytopassthroughourcoalcoststoourcustomersunderourcokesalesagreementsisgenerallysubjecttoourabilitytomeetsomeformofcoal-to-cokeyieldstandard.Totheextentthatwedonotmeettheyieldstandardinthecontract,weareresponsibleforthecostoftheexcesscoalusedinthecokemakingprocess.Wemaynotbeabletomeettheyieldstandardsatalltimes,andasaresultwemaysufferlowermarginsonourcokesalesandourresultsofoperationsandprofitabilitycouldbeadverselyaffected.

Failure to maintain effective quality control systems at our cokemaking facilities could have a material adverse effect on our results of operations.

Thequalityofourcokeiscriticaltothesuccessofourbusiness.Forinstance,ourcokesalesagreementscontainprovisionsrequiringustodelivercokethatmeetscertainqualitythresholds.Ifourcokefailstomeetsuchspecifications,wecouldbesubjecttosignificantcontractualdamagesorcontractterminations,andoursalescouldbenegativelyaffected.Thequalityofourcokedependssignificantlyontheeffectivenessofourqualitycontrolsystems,which,inturn,dependsonanumberoffactors,includingthedesignofourqualitycontrolsystems,ourquality-trainingprogram,ourlaboratoriesandourabilitytoensurethatouremployeesadheretoourqualitycontrolpoliciesandguidelines.Anysignificantfailureordeteriorationofourqualitycontrolsystemscouldhaveamaterialadverseeffectonourresultsofoperations.

Disruptions to our supply of coal and coal mixing services may reduce the amount of coke we produce and deliver, and if we are not able to cover theshortfall in coal supply or obtain replacement mixing services from other providers, our results of operations and profitability could be adversely affected.

Substantiallyallofthemetallurgicalcoalusedtoproducecokeatourcokemakingfacilities,ispurchasedfromthird-partiesunderone-yearcontracts.Wecannotassurethattherewillcontinuetobeanamplesupplyofmetallurgicalcoalavailableorthatthesefacilitieswillbesuppliedwithoutanysignificantdisruptionincokeproduction,aseconomic,environmental,andotherconditionsoutsideofourcontrolmayreduceourabilitytosourcesufficientamountsofcoalforourforecastedoperationalneeds.Ifwearenotabletomakeuptheshortfallsresultingfromsuchsupplyfailuresthrough

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purchasesofcoalfromothersources,thefailureofourcoalsupplierstomeettheirsupplycommitmentscouldmateriallyandadverselyimpactourresultsofoperationsand,ultimately,impactthestructuralintegrityofourcokeovenbatteries.

AtourGraniteCityandHaverhillcokemakingfacilities,werelyonthird-partiestomixcoalsthatwehavepurchasedintocoalmixesthatweusetoproducecoke.Wehaveenteredintolong-termagreementswithcoalmixingserviceprovidersthatarecoterminouswithourcokesalesagreements.However,therearelimitedalternativeprovidersofcoalmixingservicesandanydisruptionsfromourcurrentserviceproviderscouldmateriallyandadverselyimpactourresultsofoperations.Inaddition,ifourrailtransportationagreementsareterminated,wemayhavetopayhigherratestoaccessraillinesormakealternativetransportationarrangements.

Limitations on the availability and reliability of transportation, and increases in transportation costs, particularly rail systems, could materially andadversely affect our ability to obtain a supply of coal and deliver coke to our customers.

Ourabilitytoobtaincoaldependsprimarilyonthird-partyrailsystemsandtoalesserextentriverbarges.Ifweareunabletoobtainrailorothertransportationservices,orareunabletodosoonacost-effectivebasis,ourresultsofoperationscouldbeadverselyaffected.Alternativetransportationanddeliverysystemsaregenerallyinadequateandnotsuitabletohandlethequantityofourshipmentsortoensuretimelydelivery.Thelossofaccesstorailcapacitycouldcreatetemporarydisruptionuntiltheaccessisrestored,significantlyimpairingourabilitytoreceivecoalandresultinginmateriallydecreasedrevenues.Ourabilitytoopennewcokemakingfacilitiesmayalsobeaffectedbytheavailabilityandcostofrailorothertransportationsystemsavailableforservicingthesefacilities.

OurarrangementswithAMUSAattheHaverhillcokemakingfacilityrequireustodelivercoketoAMUSAviarailcar.Wehaveenteredintolong-termrailtransportationagreementstomeettheseobligations.Disruptionofthesetransportationservicesbecauseofweather-relatedproblems,mechanicaldifficulties,trainderailments,infrastructuredamage,strikes,lock-outs,lackoffuelormaintenanceitems,fuelcosts,transportationdelays,accidents,terrorism,domesticcatastropheorothereventscouldtemporarily,oroverthelong-term,impairourabilitytoproducecoke,andtherefore,couldmateriallyandadverselyaffectourbusinessandresultsofoperations.

If we are unable to effectively protect our intellectual property, third parties may use our technology, which would impair our ability to compete in ourmarkets.

Ourfuturesuccesswilldependinpartonourabilitytoobtainandmaintainmeaningfulpatentprotectionforcertainofourtechnologiesandproductsthroughouttheworld.Thedegreeoffutureprotectionforourproprietaryrightsisuncertain.Werelyonpatentstoprotectasignificantpartourintellectualpropertyportfolioandtoenhanceourcompetitiveposition.However,ourpresentlypendingorfuturepatentapplicationsmaynotissueaspatents,andanypatentpreviouslyissuedtousoroursubsidiariesmaybechallenged,invalidated,heldunenforceableorcircumvented.Furthermore,theclaimsinpatentsthathavebeenissuedtousoroursubsidiariesorthatmaybeissuedtousinthefuturemaynotbesufficientlybroadtopreventthirdpartiesfromusingcokemakingtechnologiesandheatrecoveryprocessessimilartoours.Inaddition,thelawsofvariousforeigncountriesinwhichweplantocompetemaynotprotectourintellectualpropertytothesameextentasdothelawsoftheUnitedStates.Ifwefailtoobtainadequatepatentprotectionforourproprietarytechnology,ourabilitytobecommerciallycompetitivemaybemateriallyimpaired.

Risks Related to Our Logistics Business

The growth and success of our logistics business depends upon our ability to find and contract for adequate throughput volumes, and an extendeddecline in demand for coal could affect the customers for our logistics business adversely. As a consequence, the operating results and cash flows of ourlogistics business could be materially and adversely affected.

Thefinancialresultsofourlogisticsbusinesssegmentaresignificantlyaffectedbythedemandforboththermalcoalandmetallurgicalcoal.Anextendeddeclineinourcustomers’demandforeitherthermalormetallurgicalcoalscouldresultinareducedneedforthecoalmixing,terminallingandtransloadingservicesweoffer,thusreducingthroughputandutilizationofourlogisticsassets.Demandforsuchcoalsmayfluctuateduetofactorsbeyondourcontrol:

• Thermalcoaldemand:maybeimpactedbychangesintheenergyconsumptionpatternofindustrialconsumers,electricitygeneratorsandresidentialusers,aswellasweatherconditionsandextremetemperatures.Theamountofthermalcoalconsumedforelectricpowergenerationisaffectedprimarilybytheoveralldemandforelectricity,theavailability,qualityandpriceofcompetingfuelsforpowergeneration,andgovernmentalregulation.Forexample,overthepastfewyears,productionofnaturalgasintheU.S.hasincreaseddramatically,whichhasresultedinlowernatural-gasprices.Asaresultofsustainedlownaturalgasprices,coal-fuelgenerationplantshavebeendisplacedbynatural-gasfueledgenerationplants.Inaddition,

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stateandfederalmandatesforincreaseduseofelectricityfromrenewableenergysources,ortheretrofittingofexistingcoal-firedgeneratorswithpollutioncontrolsystems,alsocouldadverselyimpactthedemandforthermalcoal.Finally,unusuallywarmwinterweathermayreducethecommercialandresidentialneedsforheatandelectricitywhich,inturn,mayreducethedemandforthermalcoal;and

• Metallurgicalcoaldemand:maybeimpactedadverselybyeconomicdownturnsresultingindecreaseddemandforsteelandanoveralldeclineinsteelproduction.Adeclineinblastfurnaceproductionofsteelmayreducethedemandforfurnacecoke,anintermediateproductmadefrommetallurgicalcoal.Decreaseddemandformetallurgicalcoalalsomayresultfromincreasedsteelindustryutilizationofprocessesthatdonotuse,orreducetheneedfor,furnacecoke,suchaselectricarcfurnaces,orblastfurnaceinjectionofpulverizedcoalornaturalgas.

Additionally,fluctuationsinthemarketpriceofcoalcangreatlyaffectproductionratesandinvestmentsbythird-partiesinthedevelopmentofnewandexistingcoalreserves.Miningactivitymaydecreaseasspotcoalpricesdecrease.Wehavenocontroloverthelevelofminingactivitybycoalproducers,whichmaybeaffectedbyprevailingandprojectedcoalprices,demandforhydrocarbons,thelevelofcoalreserves,geologicalconsiderations,governmentalregulationandtheavailabilityandcostofcapital.Amaterialdecreaseincoalminingproductionintheareasofoperationforourlogisticsbusiness,whetherasaresultofdepressedcommoditypricesorotherwise,couldresultinadeclineinthevolumeofcoalprocessedthroughourlogisticsfacilities,whichwouldreduceourrevenuesandoperatingincome.

Decreaseddemandforthermalormetallurgicalcoals,andextendedorsubstantialpricedeclinesforcoalcouldadverselyaffectouroperatingresultsforfutureperiodsandourabilitytogeneratecashflowsnecessarytoimproveproductivityandexpandoperations.Thecashflowsassociatedwithourlogisticsbusinessmaydeclineunlessweareabletosecurenewvolumesofcoal,orotherdrybulkproducts,byattractingadditionalcustomerstotheseoperations.Futuregrowthandprofitabilityofourlogisticsbusinesssegmentwilldepend,inpart,uponwhetherwecancontractforadditionalcoalandotherbulkcommodityvolumesatarategreaterthanthatofanydeclineinvolumesfromexistingcustomers.Accordingly,decreaseddemandforcoal,orotherbulkcommodities,oradecreaseinthemarketpriceofcoal,orotherbulkcommodities,couldhaveamaterialadverseeffectontheresultsofoperationsorfinancialconditionofourlogisticsbusiness.

The geographic location of the Convent Marine Terminal could expose us to potential significant liabilities, including operational hazards andunforeseen business interruptions, that could substantially and adversely affect our future financial performance.

CMTislocatedintheGulfCoastregion,anditsoperationsaresubjecttooperationalhazardsandunforeseeninterruptions,includinginterruptionsfromhurricanesorfloods,whichhavehistoricallyimpactedtheregionwithsomeregularity.Ifanyoftheseeventsweretooccur,wecouldincursubstantiallossesbecauseofpersonalinjuryorlossoflife,severedamagetoanddestructionofpropertyandequipment,andpollutionorotherenvironmentaldamageresultingincurtailmentorsuspensionofourrelatedoperations.

Risks Inherent in an Investment in Us

We may not generate sufficient earnings from operations to enable us to pay quarterly distributions to unitholders.

Theamountwedecidetodistributeonourcommonunitsdependsuponourliquidityandotherconsiderations,whichwillfluctuatefromquartertoquarterbasedonthefollowingfactors,someofwhicharebeyondourcontrol:

• severefinancialhardshiporbankruptcyofoneormoreofourmajorcustomers,ortheoccurrenceofothereventsaffectingourabilitytocollectpaymentsfromourcustomers,includingourcustomers’default;

• volatilityandcyclicaldownturnsinthesteelindustryandotherindustriesinwhichourcustomersand/orsuppliersoperate;

• theexercisebyAKSteelofitsearlyterminationrightsunderitscokesalesagreementanditsenergysalesagreementattheHaverhillfacility;

• oursponsor’sinabilitytoperformundertheomnibusagreement;

• ageof,andchangesinthereliability,efficiencyandcapacityofthevariousequipmentandoperatingfacilitiesusedinourcokemakingoperationsand/orourlogisticsbusiness,andintheoperationsofourmajorcustomers,businesspartnersand/orsuppliers;

• thecostofenvironmentalremediationprojectsatourcokemakingoperationsandourlogisticsfacilities;

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• changesintheexpectedoperatinglevelsofourassets;

• ourabilitytomeetminimumvolumerequirements,coal-to-cokeyieldstandardsandcokequalityrequirementsinourcokesalesagreements;

• ourabilitytoenterintonew,orrenewexisting,long-termagreementsforthesupplyofcoketodomesticsteelproducersundertermssimilarto,ormorefavorablethan,thosecurrentlyinplace;

• ourabilitytoenterintonew,orrenewexisting,agreementsforthesaleofsteamandelectricitygeneratedbyourfacilitiesundertermssimilarto,ormorefavorablethan,thosecurrentlyinplace;

• ourabilitytoenterintonew,orrenewexisting,agreementsforcoalhandling,mixing,storage,terminalling,transloadingand/ortransportationservicesatourlogisticsfacilities,undertermssimilarto,ormorefavorablethan,thosecurrentlyinplace;

• changesinthemarketplacethatmayadverselyaffectthesupplyof,anddemandfor,ourcokeand/orourlogisticsservices,includingincreasedexportsofcokefromothercountriesandincreasingcompetitionfromalternativesteelmakingandcokemakingtechnologiesthathavethepotentialtoreduceoreliminatetheuseofcoke;

• ourrelationshipswith,andotherconditionsaffecting,ourcustomersand/orsuppliers;

• changesinlevelsofproduction,productioncapacity,pricingand/ormarginsforcokeand/orcoal;

• ourabilitytosecurenewcoalsupplyand/orlogisticsagreementsortorenewexistingagreements;

• variationinavailability,qualityandsupplyofmetallurgicalcoalusedinthecokemakingprocess,includingasaresultofnonperformancebyoursuppliers;

• effectsofrailroad,barge,truckandothertransportationperformanceandcosts,includinganytransportationdisruptions;

• costoflaborandotherrisksrelatedtoemployeesandworkplacesafety;

• effectsofadverseeventsrelatingtotheoperationofourfacilitiesandtothetransportationandstorageofhazardousmaterials(includingequipmentmalfunction,explosions,fires,spills,andtheeffectsofsevereweatherconditionsandextremetemperatures);

• changesinproductspecificationsforthecokethatweproduce,orthecoalsthatwemix;

• changesincredittermsrequiredbyoursuppliers;

• changesininsurancemarketsandthelevel,typesandcostsofcoverageavailable,andthefinancialabilityofourinsurerstomeettheirobligations;

• changesin,ornew,statutes,regulationsorgovernmentalpoliciesbyfederal,stateandlocalauthoritieswithrespecttoprotectionoftheenvironment;

• changesin,ornew,statutes,regulationsorgovernmentalpoliciesbyfederalauthoritieswithrespecttothesaleofelectricenergyfromtheHaverhillandMiddletownfacilities;

• proposedorfinalchangesinaccountingand/ortaxmethodologies,laws,regulations,rules,orpolicies,ortheirinterpretations,includingthoseaffectinginventories,leases,equitycompensation,income,orothermatters;

• changesintaxlawsortheirinterpretations,includingtheadoptionofproposedrulesgoverningwhetherapartnershipsuchasourswouldbetreatedasacorporationforfederalincometaxpurposes;

• nonperformanceorforcemajeureby,ordisputeswithorchangesincontracttermswith,majorcustomers,suppliers,dealers,distributorsorotherbusinesspartners;and

• changesin,ornew,statutes,regulations,governmentalpoliciesandtaxes,ortheirinterpretations.

Inaddition,theactualamountofcashwewillhaveavailablefordistributionwilldependonotherfactors,someofwhicharebeyondourcontrol,including:

• thelevelofcapitalexpenditureswemake;

• thecostofacquisitions;

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• ourdebtservicerequirementsandotherliabilities;

• fluctuationsinourworkingcapitalneeds;

• ourabilitytoborrowfundsandaccesscapitalmarkets;

• restrictionscontainedindebtagreementstowhichweareaparty;and

• theamountofcashreservesestablishedbyourgeneralpartner.

Our sponsor owns and controls our general partner, which has sole responsibility for conducting our business and managing our operations. Ourgeneral partner and its affiliates, including our sponsor, have conflicts of interest with us and may favor their own interests to the detriment of us and ourunitholders.

Oursponsorownsandcontrolsourgeneralpartnerandappointsthedirectorsofourgeneralpartner.Althoughourgeneralpartnerhasadutytomanageusinamanneritbelievestobeinourbestinterests,theexecutiveofficersanddirectorsofourgeneralpartnerhaveafiduciarydutytomanageourgeneralpartnerinamannerbeneficialtooursponsor.Therefore,conflictsofinterestmayarisebetweenoursponsororanyofitsaffiliates,includingourgeneralpartner,ontheonehand,andusoranyofourunitholders,ontheotherhand.Inresolvingtheseconflictsofinterest,ourgeneralpartnermayfavoritsowninterestsandtheinterestsofitsaffiliatesovertheinterestsofourcommonunitholders.Theseconflictsincludethefollowingsituations,amongothers:

• ourgeneralpartnerisallowedtotakeintoaccounttheinterestsofpartiesotherthanus,suchasoursponsor,inexercisingcertainrightsunderourpartnershipagreement,whichhastheeffectoflimitingitsdutytoourunitholders;

• neitherourpartnershipagreementnoranyotheragreementrequiresoursponsortopursueabusinessstrategythatfavorsus;

• ourpartnershipagreementreplacesthefiduciarydutiesthatwouldotherwisebeowedbyourgeneralpartnerwithcontractualstandardsgoverningitsduties,limitsourgeneralpartner’sliabilitiesandrestrictstheremediesavailabletoourunitholdersforactionsthat,withoutsuchlimitations,mightconstitutebreachesoffiduciaryduty;

• exceptinlimitedcircumstances,ourgeneralpartnerhasthepowerandauthoritytoconductourbusinesswithoutunitholderapproval;

• ourgeneralpartnerdeterminestheamountandtimingofassetpurchasesandsales,borrowings,issuancesofadditionalpartnershipsecuritiesandthelevelofreserves,eachofwhichcanaffecttheamountofcashthatisdistributedtoourunitholders;

• ourgeneralpartnerdeterminestheamountandtimingofanycapitalexpenditureandwhetheracapitalexpenditureisclassifiedasanongoingcapitalexpenditure,whichreducesoperatingsurplus,orareplacementcapitalexpenditure,whichdoesnotreduceoperatingsurplus.Thisdeterminationcanaffecttheamountofcashthatisdistributedtoourunitholderswhich,inturn,mayaffecttheabilityofthesubordinatedunitstoconvert;

• ourgeneralpartnermaycauseustoborrowfundsinordertopermitthepaymentofcashdistributions,evenifthepurposeoreffectoftheborrowingistomakeIDRs;

• ourpartnershipagreementpermitsustodistributeupto$26.5millionasoperatingsurplus,evenifitisgeneratedfromassetsales,non-workingcapitalborrowingsorothersourcesthatwouldotherwiseconstitutecapitalsurplus.ThiscashmaybeusedtofunddistributionsonoursubordinatedunitsortheIDRs;

• ourgeneralpartnerdetermineswhichcostsincurredbyitanditsaffiliatesarereimbursablebyus;

• ourpartnershipagreementdoesnotrestrictourgeneralpartnerfromcausingustopayitoritsaffiliatesforanyservicesrenderedtousorenteringintoadditionalcontractualarrangementswithitsaffiliatesonourbehalf;

• ourgeneralpartnerintendstolimititsliabilityregardingourcontractualandotherobligations;

• ourgeneralpartnermayexerciseitsrighttocallandpurchasecommonunitsifitanditsaffiliatesownmorethan80percentofthecommonunits;

• ourgeneralpartnercontrolstheenforcementofobligationsthatitanditsaffiliatesowetous;

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• ourgeneralpartnerdecideswhethertoretainseparatecounsel,accountantsorotherstoperformservicesforus;and

• ourgeneralpartnermayelecttocauseustoissuecommonunitstoitinconnectionwitharesettingofthetargetdistributionlevelsrelatedtoourgeneralpartner’sIDRwithouttheapprovaloftheconflictscommitteeoftheBoardofDirectorsofourgeneralpartnerortheunitholders.Thiselectionmayresultinlowerdistributionstothecommonunitholdersincertainsituations.

Inaddition,wemaycompetedirectlywithoursponsorforacquisitionopportunities.Pleaseread“Oursponsorandotheraffiliatesofourgeneralpartnermaycompetewithus.”

We expect to distribute substantially all of our available cash, which could limit our ability to grow and make acquisitions.

Weexpectthatwewilldistributesubstantiallyallofouravailablecashtoourunitholdersandwillrelyprimarilyuponexternalfinancingsources,includingcommercialbankborrowingsandtheissuanceofdebtandequitysecurities,tofundouracquisitionsandexpansioncapitalexpenditures.Asaresult,totheextentweareunabletofinancegrowthexternally,ourcashdistributionpolicywillsignificantlyimpairourabilitytogrow.

Inaddition,becausewedistributesubstantiallyallofouravailablecash,wemaynotgrowasquicklyasbusinessesthatreinvesttheircashtoexpandongoingoperations.Totheextentweissueadditionalunitsinconnectionwithanyacquisitionsorexpansioncapitalexpenditures,thepaymentofdistributionsonthoseadditionalunitsmayincreasetheriskthatwewillbeunabletomaintainorincreaseourperunitdistributionlevel.Therearenolimitationsinourpartnershipagreementonourabilitytoissueadditionalunits,includingunitsrankingseniortothecommonunits.Theincurrenceofadditionalcommercialborrowingsorotherdebttofinanceourgrowthstrategywouldresultinincreasedinterestexpense,which,inturn,mayimpactthecashthatwehaveavailabletodistributetoourunitholders.

Our preferential right over our sponsor to pursue certain growth opportunities and our right of first offer to acquire certain of our sponsor’s assetsare subject to risks and uncertainties, and ultimately we may not pursue those opportunities or acquire any of those assets.

OuromnibusagreementprovidesuswithpreferentialrightstopursuecertaingrowthopportunitiesintheU.S.andCanadaidentifiedbyoursponsorandarightoffirstoffertoacquirecertainofoursponsor’scokemakingassetslocatedintheU.S.andCanadaforsolongasoursponsororitscontrolledaffiliatecontrolsourgeneralpartner.Theconsummationandtimingofanyfutureacquisitionsofsuchassetswilldependupon,amongotherthings,oursponsor’sabilitytoidentifysuchgrowthopportunities,oursponsor’swillingnesstooffersuchassetsforsale,ourabilitytonegotiateacceptablecustomercontractsandotheragreementswithrespecttosuchassetsandourabilitytoobtainfinancingonacceptableterms.Wecanoffernoassurancethatwewillbeabletosuccessfullyconsummateanyfutureacquisitionspursuanttoourrightsundertheomnibusagreement,andoursponsorisundernoobligationtoidentifygrowthopportunitiesortosellanyassetsthatwouldbesubjecttoourrightoffirstoffer.Fortheseoravarietyofotherreasons,wemaydecidenottoexerciseourpreferentialrighttopursuegrowthopportunitiesorourrightoffirstofferwhenanyopportunitiesareidentifiedorassetsareofferedforsale,andourdecisionwillnotbesubjecttounitholderapproval.Pleaseread“PartIII.Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence-AgreementswithAffiliates-OmnibusAgreement.”

Our partnership agreement contains provisions that eliminate and replace the fiduciary duty standards to which our general partner otherwise wouldbe held by state law.

Ourpartnershipagreementpermitsourgeneralpartnertomakeanumberofdecisionsinitsindividualcapacity,asopposedtoinitscapacityasourgeneralpartner,orotherwisefreeoffiduciarydutiestousandourunitholders.Thisentitlesourgeneralpartnertoconsideronlytheinterestsandfactorsthatitdesiresandrelievesitofanydutyorobligationtogiveanyconsiderationtoanyinterestof,orfactorsaffecting,us,ouraffiliatesorourlimitedpartners.Examplesofdecisionsthatourgeneralpartnermaymakeinitsindividualcapacityinclude:

• howtoallocatebusinessopportunitiesamongusanditsaffiliates;

• whethertoexerciseitscallright;

• howtoexerciseitsvotingrightswithrespecttotheunitsitowns;

• whethertoexerciseitsregistrationrights;

• whethertoelecttoresettargetdistributionlevels;and

• whetherornottoconsenttoanymergerorconsolidationofthepartnershiporamendmenttothepartnershipagreement.

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Bypurchasingacommonunit,aunitholderistreatedashavingconsentedtotheprovisionsinthepartnershipagreement,includingtheprovisionsdiscussedabove.

Our partnership agreement restricts the remedies available to our unitholders for actions taken by our general partner that might otherwise constitutebreaches of fiduciary duty.

Ourpartnershipagreementprovidesthat:

• wheneverourgeneralpartnermakesadeterminationortakes,ordeclinestotake,anyactioninitscapacityasourgeneralpartner,itmustdosoingoodfaith,andwillnotbesubjecttoanyotherstandardimposedbyourpartnershipagreement,oranylaw,ruleorregulation,oratequity;

• ourgeneralpartnerwillnothaveanyliabilitytousorourunitholdersfordecisionsmadeinitscapacityasageneralpartnersolongasitactedingoodfaith,meaningthatitbelievedthatthedecisionwasinthebestinterestofourpartnership;

• ourgeneralpartneranditsofficersanddirectorswillnotbeliableformonetarydamagestousorourlimitedpartnersresultingfromanyactoromissionunlesstherehasbeenafinalandnon-appealablejudgmententeredbyacourtofcompetentjurisdictiondeterminingthatourgeneralpartneroritsofficersanddirectors,asthecasemaybe,actedinbadfaithor,inthecaseofacriminalmatter,actedwithknowledgethattheconductwascriminal;and

• ourgeneralpartnerwillnotbeinbreachofitsobligationsunderthepartnershipagreementoritsdutiestousorourlimitedpartnersifatransactionwithanaffiliate,ortheresolutionofaconflictofinterest,is:

• approvedbytheconflictscommitteeoftheBoardofDirectorsofourgeneralpartner,althoughourgeneralpartnerisnotobligatedtoseeksuchapproval;or

• approvedbythevoteofamajorityoftheoutstandingcommonunits,excludinganycommonunitsownedbyourgeneralpartneranditsaffiliates.

Inconnectionwithasituationinvolvingatransactionwithanaffiliateoraconflictofinterest,anydeterminationbyourgeneralpartnermustbemadeingoodfaith.Ifanaffiliatetransactionortheresolutionofaconflictofinterestisnotapprovedbyourcommonunitholdersortheconflictscommitteethenitwillbepresumedthat,inmakingitsdecision,takinganyactionorfailingtoact,theBoardofDirectorsactedingoodfaith,andinanyproceedingbroughtbyoronbehalfofanylimitedpartnerorthepartnership,thepersonbringingorprosecutingsuchproceedingwillhavetheburdenofovercomingsuchpresumption.

Our sponsor and other affiliates of our general partner may compete with us.

Pursuanttothetermsofourpartnershipagreement,thedoctrineofcorporateopportunity,oranyanalogousdoctrine,doesnotapplytoourgeneralpartneroranyofitsaffiliates,includingitsexecutiveofficersanddirectorsandoursponsor.Exceptasdescribedunder“PartIII.Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence-AgreementsEnteredIntowithAffiliatesinConnectionwithourInitialPublicOffering-OmnibusAgreement.”anysuchpersonorentitythatbecomesawareofapotentialtransaction,agreement,arrangementorothermatterthatmaybeanopportunityforuswillnothaveanydutytocommunicateoroffersuchopportunitytous.Anysuchpersonorentitywillnotbeliabletousortoanylimitedpartnerforbreachofanyfiduciarydutyorotherdutybyreasonofthefactthatsuchpersonorentitypursuesoracquiressuchopportunityforitself,directssuchopportunitytoanotherpersonorentityordoesnotcommunicatesuchopportunityorinformationtous.Thismaycreateactualandpotentialconflictsofinterestbetweenusandaffiliatesofourgeneralpartnerandresultinlessthanfavorabletreatmentofusandourunitholders.

Our general partner may elect to cause us to issue common units to it in connection with a resetting of the target distribution levels related to its IDRs,without the approval of the conflicts committee of its Board of Directors or the holders of our common units. This could result in lower distributions to holdersof our common units.

Ourgeneralpartnerhastheright,astheinitialholderofourIDRs,atanytimewhentherearenosubordinatedunitsoutstandingandithasreceivedincentivedistributionsatthehighestleveltowhichitisentitled(48.0percent)forthepriorfourconsecutivefiscalquarters,toresettheinitialtargetdistributionlevelsathigherlevelsbasedonourdistributionsatthetimeoftheexerciseoftheresetelection.Followingaresetelectionbyourgeneralpartner,theminimumquarterlydistributionwillbeadjustedtoequaltheresetminimumquarterlydistributionandthetargetdistributionlevelswillberesettocorrespondinglyhigherlevelsbasedonpercentageincreasesabovetheresetminimumquarterlydistribution.

Ifourgeneralpartnerelectstoresetthetargetdistributionlevels,itwillbeentitledtoreceiveanumberofcommonunits.Thenumberofcommonunitstobeissuedtoourgeneralpartnerwillequalthenumberofcommonunits

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thatwouldhaveentitledtheholdertoanaggregatequarterlycashdistributioninthetwo-quarterperiodpriortotheresetelectionequaltothedistributiontoourgeneralpartnerontheIDRsinthequarterpriortotheresetelection.Ourgeneralpartner’sgeneralpartnerinterestinus(currently2percent)willbemaintainedatthepercentagethatexistedimmediatelypriortotheresetelection.Weanticipatethatourgeneralpartnerwouldexercisethisresetrightinordertofacilitateacquisitionsorinternalgrowthprojectsthatwouldnotbesufficientlyaccretivetocashdistributionspercommonunitwithoutsuchconversion.Itispossible,however,thatourgeneralpartnercouldexercisethisresetelectionatatimewhenitisexperiencing,orexpectstoexperience,declinesinthecashdistributionsitreceivesrelatedtoitsIDRandmay,therefore,desiretobeissuedcommonunitsratherthanretaintherighttoreceiveincentivedistributionsbasedontheinitialtargetdistributionlevels.ThisriskcouldbeelevatedifourIDRshavebeentransferredtoathird-party.Asaresult,aresetelectionmaycauseourcommonunitholderstoexperienceareductionintheamountofcashdistributionsthatourcommonunitholderswouldhaveotherwisereceivedhadwenotissuednewcommonunitstoourgeneralpartnerinconnectionwithresettingthetargetdistributionlevels.

Holders of our common units have limited voting rights and are not entitled to appoint our general partner or its directors, which could reduce theprice at which our common units will trade.

Unliketheholdersofcommonstockinacorporation,unitholdershaveonlylimitedvotingrightsonmattersaffectingourbusinessand,therefore,limitedabilitytoinfluencemanagement’sdecisionsregardingourbusiness.UnitholderswillhavenorightonanannualorongoingbasistoappointourgeneralpartneroritsBoardofDirectors.TheBoardofDirectorsofourgeneralpartner,includingtheindependentdirectors,ischosenentirelybyoursponsor,asaresultofitowningourgeneralpartner,andnotbyourunitholders.Unlikepublicly-tradedcorporations,wewillnotconductannualmeetingsofourunitholderstoappointdirectorsorconductothermattersroutinelyconductedatannualmeetingsofstockholdersofcorporations.

Even if holders of our common units are dissatisfied, they cannot initially remove our general partner without its consent.

Ifourunitholdersaredissatisfiedwiththeperformanceofourgeneralpartner,theywillhavelimitedabilitytoremoveourgeneralpartner.Unitholdersinitiallywillbeunabletoremoveourgeneralpartnerwithoutitsconsentbecauseourgeneralpartneranditsaffiliateswillownsufficientunitstobeabletopreventitsremoval.Thevoteoftheholdersofatleast662/3percentofalloutstandingcommonunitsisrequiredtoremoveourgeneralpartner.Oursponsorcurrentlyownsanaggregateof60.4percentofouroutstandingunits.

Our general partner's interest or the control of our general partner may be transferred to a third-party without unitholder consent.

Ourgeneralpartnermaytransferitsgeneralpartnerinteresttoathird-partyinamergerorinasaleofallorsubstantiallyallofitsassetswithouttheconsentofourunitholders.Furthermore,ourpartnershipagreementdoesnotrestricttheabilityofthemembersofourgeneralpartnertotransfertheirrespectivemembershipinterestsinourgeneralpartnertoathird-party.ThenewmembersofourgeneralpartnerwouldthenbeinapositiontoreplacetheBoardofDirectorsandexecutiveofficersofourgeneralpartnerwiththeirowndesigneesandtherebyexertsignificantcontroloverthedecisionstakenbytheBoardofDirectorsandexecutiveofficersofourgeneralpartner.Thiseffectivelypermitsa“changeofcontrol”withoutthevoteorconsentoftheunitholders.

The IDRs held by our general partner, or indirectly held by our sponsor, may be transferred to a third-party without unitholder consent.

OurgeneralpartneroroursponsormaytransfertheIDRstoathird-partyatanytimewithouttheconsentofourunitholders.IfoursponsortransferstheIDRstoathird-partybutretainsitsownershipinterestinourgeneralpartner,ourgeneralpartnermaynothavethesameincentivetogrowourpartnershipandincreasequarterlydistributionstounitholdersovertimeasitwouldifoursponsorhadretainedownershipoftheIDRs.Forexample,atransferofIDRsbyoursponsorcouldreducethelikelihoodofoursponsoracceptingoffersmadebyusrelatingtoassetsownedbyit,asitwouldhavelessofaneconomicincentivetogrowourbusiness,whichinturnwouldimpactourabilitytogrowourassetbase.

Our general partner has a call right that may require unitholders to sell their common units at an undesirable time or price.

Ifatanytimeourgeneralpartneranditsaffiliatesownmorethan80percentofthecommonunits,ourgeneralpartnerwillhavetheright,butnottheobligation,whichitmayassigntoanyofitsaffiliatesortous,toacquireall,butnotlessthanall,ofthecommonunitsheldbyunaffiliatedpersonsatapriceequaltothegreaterof(1)theaverageofthedailyclosingpriceofthecommonunitsoverthe20tradingdaysprecedingthedatethreedaysbeforenoticeofexerciseofthecallrightisfirstmailedand(2)thehighestper-unitpricepaidbyourgeneralpartneroranyofitsaffiliatesforcommon

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unitsduringthe90-dayperiodprecedingthedatesuchnoticeisfirstmailed.Asaresult,unitholdersmayberequiredtoselltheircommonunitsatanundesirabletimeorpriceandmayreceivenoreturnoranegativereturnontheirinvestment.Unitholdersmayalsoincurataxliabilityuponasaleoftheirunits.Ourgeneralpartnerisnotobligatedtoobtainafairnessopinionregardingthevalueofthecommonunitstoberepurchasedbyituponexerciseofthelimitedcallright.Thereisnorestrictioninourpartnershipagreementthatpreventsourgeneralpartnerfromissuingadditionalcommonunitsandexercisingitscallright.Ifourgeneralpartnerexerciseditslimitedcallright,theeffectwouldbetotakeusprivateand,iftheunitsweresubsequentlyderegistered,wewouldnolongerbesubjecttothereportingrequirementsoftheSecuritiesExchangeActof1934,ortheExchangeAct.

We may issue additional units without unitholder approval, which would dilute existing unitholder ownership interests.

Ourpartnershipagreementdoesnotlimitthenumberofadditionallimitedpartnerinterestswemayissueatanytimewithouttheapprovalofourunitholders.Theissuanceofadditionalcommonunitsorotherequityinterestsofequalorseniorrankwillhavethefollowingeffects:

• ourexistingunitholders’proportionateownershipinterestinuswilldecrease;

• theamountofearningsperunitmaydecrease;

• becausealowerpercentageoftotaloutstandingunitswillbesubordinatedunits,theriskthatashortfallinthepaymentoftheminimumquarterlydistributionwillbebornebyourcommonunitholderswillincrease;

• theratiooftaxableincometodistributionsmayincrease;

• therelativevotingstrengthofeachpreviouslyoutstandingunitmaybediminished;and

• themarketpriceofthecommonunitsmaydecline.

There are no limitations in our partnership agreement on our ability to issue units ranking senior to the common units.

InaccordancewithDelawarelawandtheprovisionsofourpartnershipagreement,wemayissueadditionalpartnershipintereststhatareseniortothecommonunitsinrightofdistribution,liquidationandvoting.Theissuancebyusofunitsofseniorrankmayreduceoreliminatetheamountsavailablefordistributiontoourcommonunitholders,diminishtherelativevotingstrengthofthetotalcommonunitsoutstandingasaclass,orsubordinatetheclaimsofthecommonunitholderstoourassetsintheeventofourliquidation.

The market price of our common units could be adversely affected by sales of substantial amounts of our common units in the public or privatemarkets, including sales by our sponsor or other large holders.

Salesbyoursponsororotherlargeholdersofasubstantialnumberofourcommonunitsinthepublicmarkets,ortheperceptionthatsuchsalesmightoccur,couldhaveamaterialadverseeffectonthepriceofourcommonunitsorcouldimpairourabilitytoobtaincapitalthroughanofferingofequitysecurities.Inaddition,wehaveprovidedregistrationrightstooursponsor.Underouragreement,ourgeneralpartneranditsaffiliateshaveregistrationrightsrelatingtotheofferandsaleofanyunitsthattheyhold,subjecttocertainlimitations.

Our partnership agreement restricts the voting rights of unitholders owning 20 percent or more of our common units.

Ourpartnershipagreementrestrictsunitholders’votingrightsbyprovidingthatanyunitsheldbyapersonorgroupthatowns20percentormoreofanyclassofunitsthenoutstanding,otherthanourgeneralpartneranditsaffiliates,theirtransfereesandpersonswhoacquiredsuchunitswiththepriorapprovaloftheBoardofDirectorsofourgeneralpartner,cannotvoteonanymatter.

Cost reimbursements due to our general partner and its affiliates for services provided to us or on our behalf will reduce our earnings and thereforeour ability to distribute cash to our unitholders. The amount and timing of such reimbursements will be determined by our general partner.

Priortomakinganydistributiononthecommonunits,wewillreimburseourgeneralpartneranditsaffiliatesforallexpensestheyincurandpaymentstheymakeonourbehalf.Ourpartnershipagreementdoesnotsetalimitontheamountofexpensesforwhichourgeneralpartneranditsaffiliatesmaybereimbursed.Theseexpensesincludesalary,bonus,incentivecompensationandotheramountspaidtopersonswhoperformservicesforusoronourbehalfandexpensesallocatedtoourgeneralpartnerbyitsaffiliates.Ourpartnershipagreementprovidesthatourgeneralpartnerwilldetermineingoodfaiththeexpensesthatareallocabletous.Thereimbursementofexpensesandpaymentoffees,ifany,

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toourgeneralpartneranditsaffiliateswillreduceourearningsandthereforeourabilitytodistributecashtoourunitholders.SeeNote5toourconsolidatedfinancialstatementsfordetailsonthePartnership'sdistributionpolicy.

The amount of estimated replacement capital expenditures our general partner is required to deduct from operating surplus each quarter couldincrease in the future, resulting in a decrease in available cash from operating surplus that could be distributed to our unitholders.

Ourpartnershipagreementrequiresourgeneralpartnertodeductfromoperatingsurpluseachquarterestimatedreplacementcapitalexpendituresasopposedtoactualreplacementcapitalexpendituresinordertoreducedisparitiesinoperatingsurpluscausedbyfluctuatingreplacementcapitalexpenditures,whicharecapitalexpendituresrequiredtoreplaceourmajorcapitalassets.Theamountofannualestimatedreplacementcapitalexpendituresforpurposesofcalculatingoperatingsurplusisbaseduponourcurrentestimatesofthereasonableexpenditureswewillberequiredtomakeinthefuturetoreplaceourmajorcapitalassets,includingalloramajorportionofaplantorotherfacility,attheendoftheirworkinglives.Ourpartnershipagreementdoesnotcaptheamountofestimatedreplacementcapitalexpendituresthatourgeneralpartnermaydesignate.Theamountofourestimatedreplacementcapitalexpendituresmaybemorethanouractualreplacementcapitalexpenditures,whichwillreducetheamountofavailablecashfromoperatingsurplusthatwewouldotherwisehaveavailablefordistributiontounitholders.TheamountofestimatedreplacementcapitalexpendituresdeductedfromoperatingsurplusissubjecttoreviewandchangebytheBoardofDirectorsofourgeneralpartneratleastonceayear,withanychangeapprovedbytheconflictscommittee.

The amount of cash we have available for distribution to holders of our units depends primarily on our cash flow and not solely on profitability,which may prevent us from making cash distributions during periods when we record net income.

Theamountofcashwehaveavailablefordistributiondependsprimarilyuponourcashflow,includingcashflowfromreservesandworkingcapitalorotherborrowings,andnotsolelyonprofitability,whichwillbeaffectedbynon-cashitems.Asaresult,wemaypaycashdistributionsduringperiodswhenwerecordnetlossesforfinancialaccountingpurposesandmaynotpaycashdistributionsduringperiodswhenwerecordnetincome.

Unitholder liability may not be limited if a court finds that unitholder action constitutes control of our business.

Ageneralpartnerofapartnershipgenerallyhasunlimitedliabilityfortheobligationsofthepartnership,exceptforthosecontractualobligationsofthepartnershipthatareexpresslymadewithoutrecoursetothegeneralpartner.OurpartnershipisorganizedunderDelawarelaw,andweconductbusinessinOhio,Illinois,WestVirginiaandLouisiana.Thelimitationsontheliabilityofholdersoflimitedpartnerinterestsfortheobligationsofalimitedpartnershiphavenotbeenclearlyestablishedinsomejurisdictions.Youcouldbeliableforourobligationsasifyouwereageneralpartnerifacourtorgovernmentagencyweretodeterminethat:

• wewereconductingbusinessinastatebuthadnotcompliedwiththatparticularstate’spartnershipstatute;or

• yourrighttoactwithotherunitholderstoremoveorreplacethegeneralpartner,toapprovesomeamendmentstoourpartnershipagreementortotakeotheractionsunderourpartnershipagreementconstitute“control”ofourbusiness.

Unitholders may have liability to repay distributions and in certain circumstances may be personally liable for the obligations of the partnership.

Undercertaincircumstances,unitholdersmayhavetorepayamountswrongfullyreturnedordistributedtothem.UnderSection17-607oftheDelawareRevisedUniformLimitedPartnershipAct,ortheDelawareAct,wemaynotmakeadistributiontoourunitholdersifthedistributionwouldcauseourliabilitiestoexceedthefairvalueofourassets.Delawarelawprovidesthatforaperiodofthreeyearsfromthedateoftheimpermissibledistribution,limitedpartnerswhoreceivedthedistributionandwhoknewatthetimeofthedistributionthatitviolatedDelawarelawwillbeliabletothelimitedpartnershipforthedistributionamount.Liabilitiestopartnersonaccountoftheirpartnershipinterestsandliabilitiesthatarenon-recoursetothepartnershiparenotcountedforpurposesofdeterminingwhetheradistributionispermitted.

If we fail to maintain effective internal control over financial reporting, our ability to accurately report our financial results could be adverselyaffected.

WearerequiredtocomplywiththeSEC’srulesimplementingSections302and404oftheSarbanesOxleyActof2002,whichrequireourmanagementtocertifyfinancialandotherinformationinourquarterlyandannualreportsandprovideanannualmanagementreportontheeffectivenessofourinternalcontroloverfinancialreporting.Tocomplywiththerequirementsofbeingapublicly-tradedpartnership,wewillneedtoimplementadditionalinternalcontrols,reporting

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systemsandproceduresandhireadditionalaccounting,financeandlegalstaff.Accordingly,wemaynotberequiredtohaveourindependentregisteredpublicaccountingfirmattesttotheeffectivenessofourinternalcontrolsuntilourannualreportforthefiscalyearendingDecember31,2017.Onceitisrequiredtodoso,ourindependentregisteredpublicaccountingfirmmayissueareportthatisadverseintheeventitisnotsatisfiedwiththelevelatwhichourcontrolsaredocumented,designed,operatedorreviewed.

If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. As aresult, current and potential unitholders could lose confidence in our financial reporting, which would harm our business and the trading price of our units.

Effectiveinternalcontrolsarenecessaryforustoprovidereliablefinancialreports,preventfraudandoperatesuccessfullyasapubliccompany.Ifwecannotprovidereliablefinancialreportsorpreventfraud,ourreputationandoperatingresultswouldbeharmed.Wecannotbecertainthatoureffortstomaintainourinternalcontrolswillbesuccessful,thatwewillbeabletomaintainadequatecontrolsoverourfinancialprocessesandreportinginthefutureorthatwewillbeabletocomplywithourobligationsunderSection404oftheSarbanesOxleyActof2002.Anyfailuretodevelopormaintaineffectiveinternalcontrols,ordifficultiesencounteredinimplementingorimprovingourinternalcontrols,couldharmouroperatingresultsorcauseustofailtomeetourreportingobligations.Ineffectiveinternalcontrolscouldalsocauseinvestorstoloseconfidenceinourreportedfinancialinformation,whichwouldlikelyhaveanegativeeffectonthetradingpriceofourunits.

The New York Stock Exchange, or NYSE, does not require a publicly-traded partnership like us to comply with certain of its corporate governancerequirements.

Becauseweareapublicly-tradedpartnership,theNYSEwillnotrequirethatwehaveamajorityofindependentdirectorsonourgeneralpartner’sBoardofDirectorsorcompensationandnominatingandcorporategovernancecommittees.Accordingly,unitholderswillnothavethesameprotectionsaffordedtocertaincorporationsthataresubjecttoalloftheNYSEcorporategovernancerequirements.

Tax Risks to Common Unitholders

Our tax treatment depends on our status as a partnership for federal income tax purposes, as well as our not being subject to a material amount ofentity-level taxation by individual states. The IRS has issued final regulations which would result in our being treated as a corporation for federal income taxpurposes and subject to entity-level taxation beginning January 1, 2028. In addition, the IRS may challenge our status as a partnership for federal income taxpurposes from the time of our initial public offering. If the IRS were to treat us as a corporation for federal income tax purposes or we were to become subjectto material additional amounts of entity-level taxation for state tax purposes, then our ability to distribute cash to you could be substantially reduced.

Theanticipatedafter-taxeconomicbenefitofaninvestmentinourcommonunitsdependslargelyonourbeingtreatedasapartnershipforfederalincometaxpurposes.DespitethefactthatweareorganizedasalimitedpartnershipunderDelawarelaw,apartnershipsuchasourswouldbetreatedasacorporationforfederalincometaxpurposesunlessmorethan90percentofourincomeisfromcertainspecifiedsources(the"QualifyingIncomeException")underSection7704oftheInternalRevenueCodeof1986,asamended(the“Code”).

OnJanuary19,2017,theIRSandtheUSDepartmentofTreasuryissuedqualifyingincomeregulations(the“FinalRegulations”)regardingtheQualifyingIncomeException.TheFinalRegulationswerepublishedintheFederalRegisteronJanuary24,2017,andapplytotaxableyearsbeginningonorafterJanuary19,2017.UndertheFinalRegulations,ourcokemakingoperationshavebeenexcludedfromthedefinitionofqualifyingincomeactivities,subjecttoaten-yeartransitionperiod.Asaresult,thefollowingconsequencesmightensue:

Ifourincomefromcokemakingoperations“wasqualifiedincomeunderthestatuteasreasonablyinterpretedpriortoMay6,2015,”thenwewillhaveatransitionperiodendingonDecember31,2027,duringwhichwecantreatincomefromourexistingcokemakingactivitiesasqualifyingincome.Ourtransitionalstatusduringthisperiodislikelytoimpairourgrowthprospects,andwedonotexpecttoacquireadditionalcokemakingoperationswithoutreceiptofanIRSprivateletterrulingconfirmingtheavailabilityofthetransitionperiodasappliedtotheincomefromsuchanacquisition.

TheIRSmightchallengeourtreatmentofincomefromourcokemakingoperationsasqualifyingincomebyassertingthatsuchtreatmentdidnotrelyuponareasonableinterpretationofthestatutepriortoMay6,2015.Ifso,nothingwouldprecludetheIRSfromchallengingourstatusasapartnershipforfederalincometaxpurposesfromthetimeofourinitialpublicoffering.Ifthischallengeweretooccurandprevail,(i)wewouldbetaxedretroactivelyasifwewereacorporationatfederalandstatetaxrates,likelyresultinginamaterialamountoftaxableincomeandtaxesincertainopenyears,(ii)historicalandfuturedistributionswouldgenerallybetaxedagainascorporatedistributionsand(iii)noincome,

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gains,losses,deductionsorcreditsrecognizedbyuswouldflowtoourunitholders.Thiswouldresultinamaterialreductioninourcashflowandafter-taxreturntoourunitholdersandtherecordingofanincometaxprovisionandareductioninnetincome.

If,notwithstandingourconfidenceregardingoureligibilitytousethetransitionperiodbasedonourbeliefandalegalopinionfromoutsidecounsel,theIRSweretochallengeoureligibilitytoqualifyforthetransitionperiodorourpositionthatwehavesatisfiedtheQualifyingIncomeExceptionfromthetimeofourIPO,wewouldvigorouslydisagreewithsuchachallenge,althoughwecanprovidenoassuranceofourlikelihoodof,orcostsassociatedwith,prevailing.Pleaseread"Item1Business-IRSFinalRegulationonQualifyingincome."

Ifweweretreatedasacorporationforfederalincometaxpurposes,wewouldpayfederalincometaxonourtaxableincomeatthecorporatetaxrate,andwouldlikelypaystateincometaxatvaryingrates.Distributionstoyouwouldgenerallybetaxedagainascorporatedistributions,andnoincome,gains,losses,deductionsorcreditsrecognizedbyuswouldflowthroughtoyou.Becauseataxwouldbeimposeduponusasacorporation,ouraftertaxearningsandthereforeourabilitytodistributecashtoyouwouldbesubstantiallyreduced.Therefore,treatmentofusasacorporationwouldresultinamaterialreductionintheanticipatedcashflowandafter-taxreturntotheunitholders,likelycausingasubstantialreductioninthevalueofourcommonunits.

Ourpartnershipagreementprovidesthatifalawisenactedorexistinglawismodifiedorinterpretedinamannerthatsubjectsustotaxationasacorporationorotherwisesubjectsustoentity-leveltaxationforfederal,stateorlocalincometaxpurposes,theminimumquarterlydistributionamountandthetargetdistributionamountsmaybeadjustedtoreflecttheimpactofthatlawonus.

The tax treatment of publicly traded partnerships or an investment in our units could be subject to potential legislative, judicial or administrativechanges and differing interpretations, possibly on a retroactive basis.

ThepresentU.S.federalincometaxtreatmentofpubliclytradedpartnerships,includingus,oraninvestmentinourcommonunitsmaybemodifiedbyadministrative,legislativeorjudicialchangesordifferinginterpretationsatanytime.Fromtimetotime,membersofCongresshaveproposedandconsideredsuchsubstantivechangestotheexistingfederalincometaxlawsthatwouldaffectpubliclytradedpartnerships.Althoughthereisnocurrentlegislativeproposal,apriorlegislativeproposalwouldhaveeliminatedthequalifyingincomeexceptiontothetreatmentofallpubliclytradedpartnershipsascorporationsuponwhichwerelyforourtreatmentasapartnershipforU.S.federalincometaxpurposes.

Inaddition,asdiscussedabove,onJanuary24,2017,FinalRegulationswerepublishedintheFederalRegisterandapplytotaxableyearsbeginningonorafterJanuary19,2017.TheFinalRegulationswilllikelyaffectourabilitytocontinuetoqualifyasapubliclytradedpartnership.

AnymodificationtotheU.S.federalincometaxlawsmaybeappliedretroactivelyandcouldmakeitmoredifficultorimpossibleforustomeettheexceptionforcertainpubliclytradedpartnershipstobetreatedaspartnershipsforU.S.federalincometaxpurposes.Weareunabletopredictwhetheranyofthesechangesorotherproposalswillultimatelybeenacted.Anysuchchangescouldnegativelyimpactthevalueofaninvestmentinourcommonunits.

Unitholders may be subject to limitation on their ability to deduct interest expense incurred by us.

Ingeneral,weareentitledtoadeductionforinterestpaidoraccruedonindebtednessproperlyallocabletoourtradeorbusinessduringourtaxableyear.However,undertheTaxReformLegislation,fortaxableyearsbeginningafterDecember31,2017,ourdeductionfor"businessinterest"islimitedtothesumofourbusinessinterestincomeand30%ofour"adjustedtaxableincome."Forpurposesofthislimitation,ouradjustedtaxableincomeiscomputedwithoutregardtoanybusinessinterestexpenseorbusinessinterestincome,andinthecaseoftaxableyearsbeginningbeforeJanuary1,2022,anydeductionallowablefordepreciation,amortization,ordepletion.

You will be required to pay taxes on your share of our income even if you do not receive any cash distributions from us.

Becauseourunitholderswillbetreatedaspartnerstowhomwewillallocatetaxableincomethatcouldbedifferentinamountthanthecashwedistribute,youwillberequiredtopayfederalincometaxesand,insomecases,stateandlocalincometaxesonyourshareofourtaxableincomewhetherornotyoureceivecashdistributionsfromus.Youmaynotreceivecashdistributionsfromusequaltoyourshareofourtaxableincomeorevenequaltotheactualtaxliabilitythatresultfromthatincome.

Tax gain or loss on the disposition of our common units could be more or less than expected.

Ifyousellyourcommonunits,youwillrecognizeagainorlossequaltothedifferencebetweentheamountrealizedandyourtaxbasisinthosecommonunits.Becausedistributionsinexcessofyourallocableshareofournet

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taxableincomeresultinadecreaseinyourtaxbasisinyourcommonunits,theamount,ifany,ofsuchpriorexcessdistributionswithrespecttotheunitsyousellwill,ineffect,becometaxableincometoyouifyousellsuchunitsatapricegreaterthanyourtaxbasisinthoseunits,evenifthepriceyoureceiveislessthanyouroriginalcost.Inaddition,becausetheamountrealizedincludesaunitholder’sshareofourliabilities,ifyousellyourunits,youmayincurataxliabilityinexcessoftheamountofcashyoureceivefromthesale.

Asubstantialportionoftheamountrealizedfromyoursaleofourunits,whetherornotrepresentinggain,maybetaxedasordinaryincometoyouduetopotentialrecaptureitems,includingdepreciationrecapture.Thus,youmayrecognizebothordinaryincomeandcapitallossfromthesaleofunitsiftheamountrealizedonasaleofsuchunitsislessthanyouradjustedbasisintheunits.Netcapitallossmayonlyoffsetcapitalgains,subjecttoapplicableIRSlimitations.Inthetaxableperiodinwhichyousellyourunits,youmayrecognizeordinaryincomefromourallocationsofincomeandgaintoyoupriortothesaleandfromrecaptureitemsthatgenerallycannotbeoffsetbyanycapitallossrecognizeduponthesaleofunits.

Tax-exempt entities face unique tax issues from owning our common units that may result in adverse tax consequences to them.

Investmentinourcommonunitsbytax-exemptentities,suchasemployeebenefitplansandindividualretirementaccounts(knownasIRAs)raisesissuesuniquetothem.Forexample,virtuallyallofourincomeallocatedtoorganizationsthatareexemptfromU.S.federalincometax,includingIRAsandotherretirementplans,willbeunrelatedbusinesstaxableincomeandwillbetaxabletothem.Further,withrespecttotaxableyearsbeginningafterDecember31,2017,atax-exemptentitywithmorethanoneunrelatedtradeorbusiness(includingbyattributionfrominvestmentinapartnershipsuchasoursthatisengagedinoneormoreunrelatedtradeorbusiness)isrequiredtocomputetheunrelatedbusinesstaxableincomeofsuchtax-exemptentityseparatelywithrespecttoeachsuchtradeorbusiness(includingforpurposesofdetermininganynetoperatinglossdeduction).Asaresult,foryearsbeginningafterDecember31,2017,itmaynotbepossiblefortax-exemptentitiestoutilizelossesfromaninvestmentinourpartnershiptooffsetunrelatedbusinesstaxableincomefromanotherunrelatedtradeorbusinessandviceversa.Tax-exemptentitiesshouldconsultataxadvisorbeforeinvestinginourcommonunits.

Non-U.S. Unitholders will be subject to U.S. taxes and withholding with respect to their income and gain from owning our units.

Non-U.S.unitholdersaregenerallytaxedandsubjecttoincometaxfilingrequirementsbytheUnitedStatesonincomeeffectivelyconnectedwithaU.S.tradeorbusiness(“effectivelyconnectedincome”).Incomeallocatedtoourunitholdersandanygainfromthesaleofourunitswillgenerallybeconsideredtobe“effectivelyconnected”withaU.S.tradeorbusiness.Asaresult,distributionstoaNon-U.S.unitholderwillbesubjecttowithholdingatthehighestapplicableeffectivetaxrateandaNon-U.S.unitholderwhosellsorotherwisedisposesofaunitwillalsobesubjecttoU.S.federalincometaxonthegainrealizedfromthesaleordispositionofthatunit.

TheTaxCutsandJobsAct(“TaxLegislation”)imposesawithholdingobligationof10percentoftheamountrealizeduponaNon-U.S.unitholder’ssaleorexchangeofaninterestinapartnershipthatisengagedinaU.S.tradeorbusiness.However,duetochallengesofadministeringawithholdingobligationapplicabletoopenmarkettradingandothercomplications,theIRShastemporarilysuspendedtheapplicationofthiswithholdingruletoopenmarkettransfersofinterestinpubliclytradedpartnershipspendingpromulgationofregulationsorotherguidancethatresolvesthechallenges.Itisnotcleariforwhensuchregulationsorotherguidancewillbeissued.Non-U.S.unitholdersshouldconsultataxadvisorbeforeinvestinginourcommonunits

If the IRS contests the federal income tax positions we take, the market for our common units may be adversely impacted and the cost of any IRScontest will reduce our earnings and therefore our ability to distribute cash to you.

WehavenotrequestedarulingfromtheIRSwithrespecttoourtreatmentasapartnershipforU.S.federalincometaxpurposes.TheIRSmayadoptpositionsthatdifferfromthepositionswetake.Itmaybenecessarytoresorttoadministrativeorcourtproceedingstosustainsomeorallofthepositionswetake.Acourtmaynotagreewithsomeorallofthepositionswetake.AnycontestbytheIRSmaymateriallyandadverselyimpactthemarketforourcommonunitsandthepriceatwhichtheytrade.OurcostsofanycontestbytheIRSwillbeborneindirectlybyourunitholdersandourgeneralpartnerbecausethecostswillreduceourearningsandthereforeourabilitytodistributecash.

If the IRS makes audit adjustments to our income tax returns for tax years beginning after December 31, 2017, it (and some states) may assess andcollect any taxes (including any applicable penalties and interest) resulting from such audit adjustment directly from us, in which case our cash available fordistribution to our unitholders might be substantially reduced and our current and former unitholders may be required to indemnify us for any taxes(including any applicable penalties and interest) resulting from such audit adjustments that were paid on such unitholders’ behalf.

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PursuanttotheBipartisanBudgetActof2015,fortaxyearsbeginningafterDecember31,2017,iftheIRSmakesauditadjustmentstoourincometaxreturns,it(andsomestates)mayassessandcollectanytaxes(includinganyapplicablepenaltiesandinterest)resultingfromsuchauditadjustmentdirectlyfromus.Totheextentpossibleunderthenewrules,ourgeneralpartnermayelecttoeitherpaythetaxes(includinganyapplicablepenaltiesandinterest)directlytotheIRSor,ifweareeligible,issuearevisedinformationstatementtoeachunitholderwithrespecttoanauditedandadjustedreturn.Althoughourgeneralpartnermayelecttohaveourunitholderstakesuchauditadjustmentintoaccountinaccordancewiththeirinterestsinusduringthetaxyearunderaudit,therecanbenoassurancethatsuchelectionwillbepractical,permissibleoreffectiveinallcircumstances.Asaresult,ourcurrentunitholdersmaybearsomeorallofthetaxliabilityresultingfromsuchauditadjustment,evenifsuchunitholdersdidnotownunitsinusduringthetaxyearunderaudit.If,asaresultofanysuchauditadjustment,wearerequiredtomakepaymentsoftaxes,penaltiesandinterest,ourcashavailablefordistributiontoourunitholdersmightbesubstantiallyreducedandourcurrentandformerunitholdersmayberequiredtoindemnifyusforanytaxes(includinganyapplicablepenaltiesandinterest)resultingfromsuchauditadjustmentsthatwerepaidonsuchunitholdersbehalf.TheserulesarenotapplicablefortaxyearsbeginningonorpriortoDecember31,2017.

We will treat each purchaser of our common units as having the same tax benefits without regard to the actual common units purchased. The IRSmay challenge this treatment, which could adversely affect the value of the common units.

Becausewecannotmatchtransferorsandtransfereesofcommonunits,wewilladoptdepreciationandamortizationpositionsthatmaynotconformtoallaspectsofexistingTreasuryRegulations.AsuccessfulIRSchallengetothosepositionscouldadverselyaffecttheamountoftaxbenefitsavailabletoyou.Italsocouldaffectthetimingofthesetaxbenefitsortheamountofgainfromyoursaleofcommonunitsandcouldhaveanegativeimpactonthevalueofourcommonunitsorresultinauditadjustmentstoyourtaxreturns.

We will prorate our items of income, gain, loss and deduction between transferors and transferees of our units based upon the ownership of our unitson the first day of each month, instead of on the basis of the date a particular unit is transferred. The IRS may challenge this treatment, which could changethe allocation of items of income, gain, loss and deduction among our unitholders.

Wegenerallyprorateouritemsofincome,gain,lossanddeductionbetweentransferorsandtransfereesofourcommonunitsbasedupontheownershipofourcommonunitsonthefirstdayofeachmonth(the“AllocationDate”),insteadofonthebasisofthedateaparticularcommonunitistransferred.Similarly,wegenerallyallocatecertaindeductionsfordepreciationofcapitaladditions,gainorlossrealizedonasaleorotherdispositionofourassetsand,inthediscretionofthegeneralpartner,anyotherextraordinaryitemofincome,gain,lossordeductionbaseduponownershipontheAllocationDate.TreasuryRegulationsallowasimilarmonthlysimplifyingconvention,butsuchregulationsdonotspecificallyauthorizeallaspectsofourprorationmethod.IftheIRSweretochallengeourprorationmethod,wemayberequiredtochangetheallocationofitemsofincome,gain,lossanddeductionamongunitholders.

A unitholder whose common units are the subject of a securities loan (e.g., a loan to a “short seller” to cover a short sale of common units) may beconsidered as having disposed of those common units. If so, he would no longer be treated for tax purposes as a partner with respect to those common unitsduring the period of the loan and may recognize gain or loss from the disposition.

Becausethereisnotaxconceptofloaningapartnershipinterest,aunitholderwhosecommonunitsarethesubjectofasecuritiesloanmaybeconsideredashavingdisposedoftheloanedunits.Inthatcase,hemaynolongerbetreatedfortaxpurposesasapartnerwithrespecttothosecommonunitsduringtheperiodoftheloantotheshortsellerandtheunitholdermayrecognizegainorlossfromsuchdisposition.Moreover,duringtheperiodoftheloan,anyofourincome,gain,lossordeductionwithrespecttothosecommonunitsmaynotbereportablebytheunitholderandanycashdistributionsreceivedbytheunitholderastothosecommonunitscouldbefullytaxableasordinaryincome.Unitholdersdesiringtoassuretheirstatusaspartnersandavoidtheriskofgainrecognitionfromaloantoashortsellershouldmodifyanyapplicablebrokerageaccountagreementstoprohibittheirbrokersfromborrowingtheircommonunits.

We have adopted certain valuation methodologies in determining a unitholder's allocations of income, gain, loss and deduction. The IRS maychallenge these methodologies or the resulting allocations, and such a challenge could adversely affect the value of our common units.

Indeterminingtheitemsofincome,gain,lossanddeductionallocabletoourunitholders,wemustroutinelydeterminethefairmarketvalueofourassets.Althoughwemayfromtimetotimeconsultwithprofessionalappraisersregardingvaluationmatters,wemakemanyfairmarketvalueestimatesusingamethodologybasedonthemarketvalueofourcommonunitsasameanstomeasurethefairmarketvalueofourassets.TheIRSmaychallengethesevaluationmethodsandtheresultingallocationsofincome,gain,lossanddeduction.

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AsuccessfulIRSchallengetothesemethodsorallocationscouldadverselyaffectthetimingoramountoftaxableincomeorlossbeingallocatedtoourunitholders.Italsocouldaffecttheamountofgainfromourunitholders'saleofcommonunitsandcouldhaveanegativeimpactonthevalueofthecommonunitsorresultinauditadjustmentstoourunitholders'taxreturnswithoutthebenefitofadditionaldeductions.

Unitholders will likely be subject to state and local taxes and return filing requirements in states where you do not live as a result of investing in ourcommon units.

Inadditiontofederalincometaxes,youwilllikelybesubjecttoothertaxesinthestatesinwhichweownassetsandconductbusiness,includingstateandlocaltaxes,unincorporatedbusinesstaxesandestate,inheritanceorintangibletaxesthatareimposedbythevariousjurisdictionsinwhichweconductbusinessorownpropertynoworinthefuture,evenifyoudonotliveinanyofthosejurisdictions.Further,youmaybesubjecttopenaltiesforfailuretocomplywiththoserequirements.WecurrentlyownassetsandconductbusinessininLouisiana,Ohio,Illinois,Indiana,Virginia,andWestVirginia.Aswemakeacquisitionsorexpandourbusiness,wemayownassetsorconductbusinessinadditionalstatesorforeignjurisdictionsthatimposeapersonalincometax.ItisyourresponsibilitytofileallU.S.federal,foreign,stateandlocaltaxreturns.

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Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

Weownthefollowingrealproperty:

• Approximately400acresinFranklinFurnace(SciotoCounty),Ohio,atandaroundtheareawheretheHaverhillcokemakingfacility(bothfirstandsecondphases)islocated.

• Approximately250acresinMiddletown(ButlerCounty),OhionearAKSteel’sMiddletownWorksfacility,onwhichtheMiddletowncokemakingfacilityislocated.

• Approximately41acresinGraniteCity(MadisonCounty),Illinois,adjacenttotheU.S.SteelGraniteCityWorksfacility,onwhichtheGraniteCitycokemakingfacilityislocated.Upontheearlierofceasingproductionatthefacilityortheendof2044,U.S.Steelhastherighttorepurchasetheproperty,includingthefacility,atthefairmarketvalueoftheland.Alternatively,U.S.Steelmayrequireustodemolishandremovethefacilityandremediatethesitetooriginalconditionuponexerciseofitsoptiontorepurchasetheland.

• Approximately180acresinCeredo(WayneCounty),WestVirginiaonwhichKRThastwoterminalsforitsmixingand/orhandlingservicesalongtheOhioandBigSandyRivers.

• Approximately174acresinConvent(St.JamesParish),Louisiana,onwhichCMTislocated.

Weleasethefollowingrealproperty:

• Approximately45acresoflandlocatedinEastChicago(LakeCounty),Indiana,throughasubleasefromSunCoketoLakeTerminalforthecoalhandlingandmixingfacilitiesthatserviceSunCoke'sIndianaHarborcokemakingfacility.TheleasedpropertyisinsideArcelorMittal’sIndianaHarborWorksfacilityandispartofanenterprisezone.

• Approximately25acresinBelle(KanawhaCounty),WestVirginiaonwhichKRThasaterminalforitsmixingand/orhandlingservicesalongtheKanawhaRiver.

Item 3. Legal Proceedings

TheinformationpresentedinNote12toourconsolidatedfinancialstatementswithinthisAnnualReportonForm10-Kisincorporatedhereinbyreference.

Manylegalandadministrativeproceedingsarependingormaybebroughtagainstusarisingoutofourcurrentandpastoperations,includingmattersrelatedtocommercialandtaxdisputes,productliability,employmentclaims,personalinjuryclaims,premises-liabilityclaims,allegationsofexposurestotoxicsubstancesandgeneralenvironmentalclaims.Althoughtheultimateoutcomeoftheseproceedingscannotbeascertainedatthistime,itisreasonablypossiblethatsomeofthemcouldberesolvedunfavorablytous.Ourmanagementbelievesthatanyliabilitiesthatmayarisefromsuchmatterswouldnotbematerialinrelationtoourbusinessorourconsolidatedfinancialposition,resultsofoperationsorcashflowsatDecember31,2018.

Item 4. Mine Safety Disclosures

CertainlogisticsassetsaresubjecttoMineSafetyandHealthAdministrationregulatorypurview.TheinformationconcerningminesafetyviolationsandotherregulatorymattersthatwearerequiredtoreportinaccordancewithSection1503(a)oftheDodd-FrankWallStreetReformandConsumerProtectionActandItem104ofRegulationS-K(17CFR229.014)isincludedinExhibit95.1tothisAnnualReportonForm10-K.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholders Matters and Issuer Purchases of Equity Securities

Market for the Partnership’s Common Equity

ThePartnership'scommonunits,representinglimitedpartnershipinterests,havebeentradingunderthetradingsymbol“SXCP”ontheNewYorkStockExchangesinceJanuary18,2013.AtthecloseofbusinessonFebruary8,2019,therewerefourholdersofrecordofthePartnership’scommonunits,includingSunCoal&CokeLLC,whichowns100percentofourgeneralpartnerandholds28,499,899ofourcommonunits.Thenumberofrecordholdersdoesnotincludeholdersofsharesin“streetname”orpersons,partnerships,associations,corporationsorotherentitiesidentifiedinsecuritypositionlistingsmaintainedbydepositories.

Market Repurchase Program

OnJuly20,2015,thePartnership'sBoardofDirectorsauthorizedaprogramforthePartnershiptorepurchaseupto$50.0millionofitscommonunits.Therewerenounitrepurchasesduring2018bythePartnership.AtDecember31,2018,therewas$37.2millionavailableundertheauthorizedunitrepurchaseprogram.

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Item 6. Selected Financial Data

ThefollowingtablepresentssummaryconsolidatedoperatingresultsandotherinformationofthePartnershipandshouldbereadinconjunctionwith"Item7.Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations"andourconsolidatedfinancialstatementsandaccompanyingnotesincludedelsewhereinthisAnnualReportonForm10-K.

OurconsolidatedfinancialstatementsincludeamountsallocatedfromSunCokeforcorporateandothercostsattributabletoouroperations.TheseallocatedcostsareforservicesprovidedtousbySunCoke.SunCokecentrallyprovidesengineering,operations,procurementandinformationtechnologysupporttoitsandourfacilities.Inaddition,allocatedcostsincludelegal,accounting,tax,treasury,insurance,employeebenefitcosts,communicationsandhumanresources.AllcorporatecoststhatwerespecificallyidentifiabletoaparticularoperatingfacilityofSunCokeorthePartnershiphavebeenallocatedtothatfacility.Wherespecificidentificationofchargestoaparticularoperatingfacilitywasnotpracticable,areasonablemethodofallocationwasappliedtoallremainingcorporateandothercosts.Theallocationmethodologyforallremainingcorporateandothercostsisbasedonmanagement’sestimateoftheproportionallevelofeffortdevotedbycorporateresourcesthatisattributabletoeachofSunCoke’sandthePartnership'soperatingfacilities.

Theconsolidatedfinancialstatementsdonotnecessarilyreflectwhatourfinancialpositionandresultsofoperationswouldhavebeenifwehadoperatedasanindependent,publicly-tradedpartnershipduringtheperiodsshown.Inaddition,theconsolidatedfinancialstatementsarenotnecessarilyindicativeofourfutureresultsofoperationsorfinancialcondition.

Years Ended December 31,

2018 (1) 2017 (1) 2016 (1) 2015 (1) 2014 (Dollars in millions, except per unit amounts)Operating Results: Totalrevenues $ 892.1 $ 845.6 $ 779.7 $ 838.5 $ 873.0Operatingincome $ 117.2 $ 142.8 $ 146.1 $ 137.2 $ 135.1Netincome(loss)(2) $ 59.4 $ (17.5) $ 121.4 $ 92.2 $ 87.5Netincome(loss)attributabletoSunCokeEnergyPartners,L.P. 57.5 (18.1) $ 119.1 $ 85.4 $ 56.0Netincome(loss)percommonunit(basicanddiluted) $ 1.22 $ (0.54) $ 2.07 $ 1.92 $ 1.58Netincomepersubordinatedunit(basicanddiluted)(3) $ — $ — $ — $ 1.71 $ 1.43Distributionsdeclaredperunit $ 1.6000 $ 2.3760 $ 2.3760 $ 2.2888 $ 2.0175Balance Sheet Data (at period end): Totalassets $ 1,619.1 $ 1,641.4 $ 1,696.0 $ 1,768.9 $ 1,417.0Long-termdebtandfinancingobligation $ 793.3 $ 818.4 $ 805.7 $ 894.5 $ 399.0

(1) TheresultsofCMThavebeenincludedintheconsolidatedfinancialstatementssinceitwasacquiredonAugust12,2015.CMTaddedthefollowing:

Years Ended December 31,

2018 2017 2016 2015 (Dollars in millions)Combinedassets $ 370.9 $ 394.6 $ 411.7 $ 426.1Revenues $ 81.3 $ 71.1 $ 62.7 $ 28.6Operatingincome $ 40.2 $ 42.3 $ 46.5 $ 18.4

(2) In2017,asaresultoftheFinalRegulationsonqualifyingincomeandthenewTaxLegislation,thePartnershiprecordeddeferredincometaxexpense,netof$79.8million.SeeNote6toourconsolidatedfinancialstatements.

(3) Uponpaymentofthecashdistributionforthefourthquarterof2015,thefinancialrequirementsfortheconversionofallsubordinatedunitsweresatisfied.Asaresult,the15,709,697subordinatedunitsconvertedintocommonunitsonaone-for-onebasis.Forpurposeofcalculatingnetincomeperunit,theconversionofthesubordinatedunitsisdeemedtohaveoccurredonJanuary1,2016.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

ThisAnnualReportonForm10-Kcontainscertainforward-lookingstatementsofexpectedfuturedevelopments,asdefinedbythePrivateSecuritiesLitigationReformActof1995.Thisdiscussioncontainsforward-lookingstatementsaboutourbusiness,operationsandindustrythatinvolverisksanduncertainties,suchasstatementsregardingourplans,objectives,expectationsandintentions.Ourfutureresultsandfinancialconditionmaydiffermateriallyfromthosewecurrentlyanticipateasaresultofthefactorswedescribeunder“CautionaryStatementConcerningForward-LookingStatements”and“RiskFactors.”

ThisManagement’sDiscussionandAnalysisofFinancialConditionandResultsofOperations("MD&A")isbasedonfinancialdataderivedfromthefinancialstatementspreparedinaccordancewithUnitedStates("U.S.")generallyacceptedaccountingprinciples(“GAAP”)andcertainotherfinancialdatathatispreparedusingnon-GAAPmeasures.Forareconciliationofthesenon-GAAPmeasurestothemostcomparableGAAPcomponents,see“Non-GAAPFinancialMeasures”attheendofthisItemandNote15toourconsolidatedfinancialstatements.

OurMD&Aisprovidedinadditiontotheaccompanyingconsolidatedfinancialstatementsandnotestoassistreadersinunderstandingourresultsofoperations,financialcondition,andcashflows.Ourresultsofoperationsincludereferencetoourbusinessoperationsandmarketconditions,whicharefurtherdescribedinPartIofthisdocument.

2018 Overview

Ourconsolidatedresultsofoperationswereasfollows:

Year Ended December

31, 2018 (Dollars in millions)

NetincomeattributabletoSunCokeEnergyPartners,L.P. 57.5Netcashprovidedbyoperatingactivities $ 162.8AdjustedEBITDAattributabletoSunCokeEnergyPartners,L.P. $ 209.4

During2018,thePartnershipsuccessfullydeliveredagainstthemajorityofourkeyobjectives:

• Financial objectives. NetincomeattributabletoSunCokeEnergyPartners,L.P.in2018was$57.5million.WedeliveredAdjustedEBITDAattributabletoSunCokeEnergyPartners,L.P.of$209.4million,slightlybelowourguidancerangeof$210millionto$215million,andgenerated$162.8millionofoperatingcashflow,aboveourrevisedguidanceofbetween$140millionand$150million.DomesticCokecontributedAdjustedEBITDAof$157.5million,andLogisticsdeliveredAdjustedEBITDAof$71.6million,reflectingthehighestannualvolumesinCMT’shistory.

• Achieved de-leveraging goals. Weachievedourobjectivetopaydown$25milliononthePartnershipRevolverin2018andcontinuetomaintainourfocusonstrengtheningourbalancesheetandreducingdebtin2019.

• Leveraged CMT capabilities to further diversify customer and product mix. Wecontinuedtofurtherdiversifytheproductmixbyhandlingpetroleumcoke,aggregatesandliquids,andweremainfocusedonaddingadditionaldrybulkproductstogrowtheterminal.In2018,wemovedapproximatelyonemillionmerchanttonsofbulkproductsthroughCMT.

• Delivered operational excellence and optimized our asset base. Wecontinuedtoimproveoperationalperformanceacrossbothourcokeandlogisticsbusinesses,whichwasreflectedbytheincreaseinvolumesinbothsegmentsduring2018.WeencounteredoperationalchallengesatourGraniteCityfacilityduring2018,whichincludedanextendedoutageandamachineryfire.Aspartoftheextendedoutage,wecompletedvariousupgradesonourheatrecoverysteamgeneratorsandfluegasdesulfurizationsysteminordertoimprovethelong-termreliabilityandoperationalperformanceoftheseassets.ThesenecessaryupgradeswillbetterpositionGraniteCityforlong-termsuccess.WealsomadesignificantprogressonourenvironmentalremediationprojectatGraniteCityandexpecttheprojecttobecompletedbythemiddleof2019.

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Our Focus and Outlook for 2019

During2019,ourprimaryfocuswillbeto:

• Achieve financial objectives. WeexpecttodeliverAdjustedEBITDAattributabletothePartnershipofbetween$215millionand$225millionandoperatingcashflowofbetween$145millionand$160million.SignificantoperationalimprovementsatGraniteCityandsolidongoingoperationsacrosstheremainingDomesticCokefleetareexpectedtocontributetothegrowthinAdjustedEBITDA.

• Continue to pay down debt and strengthen the balance sheet. Weremaincommittedtocontinuingtostrengthenthebalancesheetandplantoallocateexcesscashflow,afterdistributions,towardsreducingdebt,whichwillmaximizelong-termvalueforallunitholders.

• Deliver operational excellence and optimize our asset base. Weremainfocusedonfurtherimprovingoperationalperformanceacrossbothourcokeandlogisticsbusinesses,aswellassuccessfullyexecutingonour2019capitalplan.WeexpectoperationalimprovementsatGraniteCitytogenerateanincreaseinproductionandhigherenergyrevenuesaswellasloweroperatingandmaintenancecosts.Wealsocontinuetoworktosecurefurthernewbusinessanddiversifyourcustomerbase.

Items Impacting Comparability

• Debt Activities. During2017,thePartnershiprefinanceditsdebtobligationsandamendedandrestatedthePartnershipRevolver,resultinginalossonextinguishmentofdebtontheConsolidatedStatementofOperationsof$20.0million.

During2016,thePartnershipde-levereditsbalancesheetbyrepurchasing$89.5millionoffacevaluenotesduein2020,resultingingainsondebtextinguishmentof$25.0millionontheConsolidatedStatementofOperations.

Asaresultoftheabovedebtactivities,weightedaveragedebtbalancesduring2018,2017and2016were$839.2million,$840.8millionand$843.1million,respectively,andrelatedinterestexpensein2018,2017and2016was$62.7million,$57.5millionand$52.7million,respectivelyoraweightedaverageinterestrateof7.47percent,6.84percentand6.25percent,respectively.Theincreaseinrelatedinterestexpensein2017ascomparedto2016wasdrivenbyhigherinterestratesasaresultofthePartnership'sdebtrefinancingactivities.Interestexpensein2018reflectsafullyearofthehigherrates.

• Tax Rulings.

◦ IRS Final Regulations on Qualifying Income. InJanuary2017,theIRSannounceditsdecisiontoexcludecokemakingasaqualifyingincomegeneratingactivityinitsfinalregulations(the"FinalRegulations")issuedundersection7704(d)(1)(E)oftheInternalRevenueCoderelatingtothequalifyingincomeexceptionforpubliclytradedpartnerships.Subsequenttothe10-yeartransitionperiod,certaincokemakingentitiesinthePartnershipwillbecometaxableascorporations.Asaresultofthequalifyingincomeexceptiondiscussedabove,thePartnershiprecordeddeferredincometaxexpenseof$148.6millionrelatedtoitschangesinitsprojecteddeferredtaxliabilityassociatedwithprojectedbooktotaxdifferencesattheendofthe10-yeartransitionperiod.ThePartnershiprecordedadeferredtaxbenefitof$3.6millionin2018asaresultofcurrentperiodadditionsandchangesinestimatedusefullivesofcertainassets.SeeNote6toourconsolidatedfinancialstatements.

◦ Tax Legislation. OnDecember22,2017,theTaxCutsandJobsAct(“TaxLegislation”)wasenacted.TheTaxLegislationsignificantlyrevisedtheU.S.corporateincometaxstructure,includingloweringcorporateincometaxrates.Asaresult,thePartnershiprecordedanincometaxbenefitof$68.8millionfortheremeasurementofitsU.S.deferredincometaxliabilities,reversingaportionofthedeferredincometaxexpenserecordedfromtheFinalRegulationsinthefirstquarterof2017.

ThenetimpactoftheFinalRegulationsandTaxLegislation,resultedin$79.8millionofdeferredincometaxexpense,netduring2017.

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Consolidated Results of Operations

ThefollowingsectionincludesanalysisofconsolidatedresultsofoperationsfortheyearsendedDecember31,2018,2017and2016.See"AnalysisofSegmentResults"laterinthissectionforfurtherdetailsoftheseresults.

Years Ended December 31, Increase (Decrease)

2018 2017 2016 2018 vs. 2017 2017 vs. 2016 (Dollars in millions)Revenues Salesandotheroperatingrevenue $ 892.1 $ 845.6 $ 779.7 $ 46.5 $ 65.9Costs and operating expenses Costofproductssoldandoperatingexpenses 648.9 586.7 517.2 62.2 69.5Selling,generalandadministrativeexpenses 33.6 32.5 38.7 1.1 (6.2)Depreciationandamortizationexpense 92.4 83.6 77.7 8.8 5.9Totalcostsandoperatingexpenses 774.9 702.8 633.6 72.1 69.2Operating income 117.2 142.8 146.1 (25.6) (3.3)Interestexpense,net(1) 59.4 56.4 47.7 3.0 8.7Loss(gain)onextinguishmentofdebt,net(1) — 20.0 (25.0) (20.0) 45.0Incomebeforeincometaxexpense(benefit) 57.8 66.4 123.4 (8.6) (57.0)Incometax(benefit)expense(1) (1.6) 83.9 2.0 (85.5) 81.9Net income (loss) $ 59.4 $ (17.5) $ 121.4 $ 76.9 $ (138.9)Less:Netincomeattributabletononcontrollinginterests 1.9 0.6 2.3 1.3 (1.7)Net income (loss) attributable to SunCoke Energy Partners, L.P. $ 57.5 $ (18.1) $ 119.1 $ 75.6 $ (137.2)

(1) Seeyear-over-yearchangesdescribedin"ItemsImpactingComparability."

Sales and Other Operating Revenue and Costs of Products Sold and Operating Expenses. Salesandotheroperatingrevenueandcostsofproductssoldandoperatingexpensesincreasedfor2018and2017ascomparedtoprioryearperiods,primarilyduetothepass-throughofhighercoalpricesinourDomesticCokesegment.HighersalesvolumesinourLogisticssegmentalsoincreasedrevenues.

Selling, General and Administrative Expenses. Theincreaseinselling,generalandadministrativeexpensein2018ascomparedto2017wasdrivenbyhighercoststoresolvecertainlegalmatters.Thedecreaseinselling,generalandadministrativeexpensein2017ascomparedto2016wasdrivenbylowerprofessionalservicefeesandtheabsenceofunfavorablemark-to-marketadjustmentsondeferredcompensationdrivenbychangesinthePartnership'sunitpricerecordedin2016.

Depreciation and Amortization Expense. Depreciationandamortizationexpenseincreasedin2018ascomparedto2017drivenbyrevisionstotheestimatedusefullivesofcertainassetsinourDomesticCokesegment,primarilyasaresultofplanstoreplacemajorcomponentsofcertainheatrecoverysteamgeneratorswithupgradedmaterialsanddesign.Therevisionsresultedinadditionaldepreciationof$9.2millionor$0.20percommonunit,during2018.Theincreaseindepreciationandamortizationexpenseduring2017ascomparedto2016wasimpactedbydepreciationexpenseonCMT'sshiploaderandcertainenvironmentalremediationassets(i.e.gassharing)atourHaverhillcokemakingfacility,bothplacedinserviceduringthefourthquarterof2016.

Noncontrolling Interest. NetincomeattributabletononcontrollinginterestrepresentsSunCoke'sretainedownershipinterestinourcokemakingfacilities.ThenetimpactoftheFinalRegulationsandTaxLegislationattributabletoSunCoke'sretainedownershipinterestinourcokemakingfacilitiesimpacted2017.

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Results of Reportable Business Segments

Wereportourbusinessresultsthroughtwosegments:

• DomesticCokeconsistsofourHaverhillfacility,locatedinFranklinFurnace,Ohio,ourMiddletownfacility,locatedinMiddletown,Ohio,andourGraniteCityfacility,locatedinGraniteCity,Illinois.

• LogisticsconsistsofConventMarineTerminal("CMT"),locatedinConvent,Louisiana,KanawhaRiverTerminal("KRT"),locatedinCeredoandBelle,WestVirginia,andSunCokeLakeTerminal("LakeTerminal"),locatedinEastChicago,Indiana.LakeTerminalislocatedadjacenttoSunCoke'sIndianaHarborcokemakingfacility.

TheoperationsofeachofoursegmentsaredescribedinPartIofthisdocument.

CorporateandotherexpensesthatcanbeidentifiedwithasegmenthavebeenincludedasdeductionsindeterminingoperatingresultsofourbusinesssegmentsandtheremainingexpenseshavebeenincludedinCorporateandOther.

ManagementbelievesAdjustedEBITDAisanimportantmeasureofoperatingperformanceandliquidityandusesitastheprimarybasisforthechiefoperatingdecisionmakertoevaluatetheperformanceofeachofourreportablesegments.AdjustedEBITDAshouldnotbeconsideredasubstituteforthereportedresultspreparedinaccordancewithGAAP.See“Non-GAAPFinancialMeasures”neartheendofthisItemandNote15toourconsolidatedfinancialstatements.

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Segment Operating Data

ThefollowingtablessetforthfinancialandoperatingdatabysegmentfortheyearsendedDecember31,2018,2017and2016:

Years Ended December 31, Increase (Decrease)

2018 2017 2016 2018 vs. 2017 2017 vs. 2016 (Dollars in millions, except per ton amounts)Sales and other operating revenue: DomesticCoke $ 776.7 $ 739.7 $ 681.8 $ 37.0 $ 57.9Logistics 115.4 105.9 97.9 9.5 8.0Logisticsintersegmentsales 6.9 6.5 6.1 0.4 0.4Eliminationofintersegmentsales (6.9) (6.5) (6.1) (0.4) (0.4)Total $ 892.1 $ 845.6 $ 779.7 $ 46.5 $ 65.9

Adjusted EBITDA (1) : DomesticCoke $ 157.5 $ 170.3 $ 167.0 $ (12.8) $ 3.3Logistics 71.6 69.7 63.2 1.9 6.5CorporateandOther (16.6) (15.3) (17.2) (1.3) 1.9Total $ 212.5 $ 224.7 $ 213.0 $ (12.2) $ 11.7Coke Operating Data: DomesticCokecapacityutilization(%) 101 101 101 — —DomesticCokeproductionvolumes(thousandsoftons) 2,332 2,313 2,334 19 (21)DomesticCokesalesvolumes(thousandsoftons) 2,344 2,298 2,336 46 (38)DomesticCokeAdjustedEBITDAperton(2) $ 67.19 $ 74.11 $ 71.49 $ (6.92) $ 2.62Logistics Operating Data: Tonshandled(thousandsoftons)(3) 25,499 20,546 17,469 4,953 3,077CMTtake-or-payshortfalltons(thousandsoftons)(4) 220 2,918 6,076 (2,698) (3,158)

(1) SeeNote15inourconsolidatedfinancialstatementsforboththedefinitionofAdjustedEBITDAandthereconciliationsfromGAAPtothenon-GAAPmeasurementfortheyearsendedDecember31,2018,2017and2016.

(2) ReflectsDomesticCokeAdjustedEBITDAdividedbyDomesticCokesalesvolumes.(3) Reflectsinboundtonshandledduringtheperiod.(4) Reflectstonsbilledundertake-or-paycontractswhereserviceswerenotperformed.

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Analysis of Segment Results

Domestic Coke

Thefollowingtableexplainsyear-over-yearchangesinourDomesticCokesegment'ssalesandotheroperatingrevenuesandAdjustedEBITDAresults:

Sales and other operating revenue Adjusted EBITDA

2018 vs. 2017 2017 vs. 2016 2018 vs. 2017 2017 vs. 2016 (Dollars in millions)Beginning $ 739.7 $ 681.8 $ 170.3 $ 167.0Volumes(1) 6.2 (4.3) (4.7) 3.6Coalcostrecoveryandyields(2) 34.3 61.6 4.7 0.1Operatingandmaintenancecosts(3) 3.2 0.2 (7.8) (5.5)Energyandother(4) (6.7) 0.4 (5.0) 5.1

Ending $ 776.7 $ 739.7 $ 157.5 $ 170.3

(1) In2017,volumeswerenegativelyimpactedbyadecreaseinvolumestoAKSteel,forwhichAKSteelprovidedmakewholepayments.In2018,thesevolumestoAKSteelincreased,benefitingrevenuewithminimalimpactonAdjustedEBITDAasthePartnershipismadewholeonvolumeshortfalls.PartlyoffsettingthisbenefitwerelowervolumesatGraniteCity.

(2) Revenuesandtheimpactofcoal-to-cokeyieldsonAdjustedEBITDAmovedirectionallywithchangesincoalprices,whichincreasedinboth2018and2017ascomparedtotheprioryearperiods.Additionally,in2017,certaincoalcostswereunder-recoveredasaresultofunfulfilledcoalsupplycommitmentsbyonofourcoalsuppliers.

(3) ThetimingandscopeofoutageworknegativelyimpactedAdjustedEBITDAby$6.6millionin2018.

(4) Thedecreaseinenergyin2018ascomparedto2017wasprimarilydrivenbyourextendedGraniteCityoutageandtheimpactamachineryfirehadonenergyproduction.Theimprovementin2017ascomparedto2016wasdrivenbytheimpactofaturbinefailureatourHaverhillfacilityinOctober2016,whichwasfullyrestoredinJanuary2017.Thisturbinefailureadverselyaffectedenergyproductionin2016,althoughtheimpactwaspartiallymitigatedbyinsurancerecoveries.

LogisticsThefollowingtableexplainsyear-over-yearchangesinourLogisticssegment'ssalesandotheroperatingrevenuesandAdjustedEBITDAresults:

Sales and other operating revenue,

inclusive of intersegment sales Adjusted EBITDA

2018 vs. 2017 2017 vs. 2016 2018 vs. 2017 2017 vs. 2016 (Dollars in millions)Beginning $ 112.4 $ 104.0 $ 69.7 $ 63.2Transloadingvolumes(1) 9.2 3.2 3.4 2.5Price/marginimpactofmixintransloadingservices 1.7 2.4 1.7 2.4Operatingandmaintenancecostsandother(2) (1.0) 2.8 (3.2) 1.6

Ending $ 122.3 $ 112.4 $ 71.6 $ 69.7

(1) CMTachievedrecordvolumesin2017,whichfurtherincreasedin2018.Volumeswere12.2milliontons,8.0milliontonsand4.3milliontonsin2018,2017and2016,respectively.

(2) In2018,theMississippiRiverexperiencednear-historicwaterlevels,whichnegativelyimpactedAdjustedEBITDAduring2018ascomparedto2017.

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Corporate and Other

2018 compared to 2017

Corporateexpensesincreased$1.3millionto$16.6millionin2018comparedto$15.3millionin2017,primarilyasaresulthigherallocationofcostsfromSunCokeaswellascoststoresolvecertainlegalmattersduring2018.

2017 compared to 2016

Corporateexpensesimproved$1.9millionto$15.3millionin2017comparedto$17.2millionin2016.Theimprovementwasdrivenbylowerspendingonprofessionalservicesandtheabsenceofunfavorableperiod-over-periodmark-to-marketadjustmentsindeferredcompensationdrivenbychangesinthePartnership'sunitpricerecordedin2016.

Liquidity and Capital Resources

Ourprimaryliquidityneedsaretofundworkingcapital,fundinvestments,serviceourdebt,paydistributions,maintaincashreservesandreplacepartiallyorfullydepreciatedassetsandothercapitalexpenditures.Oursourcesofliquidityincludecashgeneratedfromoperations,borrowingsunderourrevolvingcreditfacilityand,fromtimetotime,debtandequityofferings.AsofDecember31,2018,wehad$12.6millionofcashand$178.1millionofborrowingavailabilityunderthePartnershipRevolver.

Distributions

OnJanuary28,2019,ourBoardofDirectorsdeclaredaquarterlycashdistributionof$0.4000perunit.ThisdistributionwillbepaidonMarch1,2019,tounitholdersofrecordonFebruary15,2019.

ThePartnershipanticipatesitwillmaintainthecurrentquarterlydistributionrateof$0.4000perunituntiltheclosingoftheSimplificationTransaction,discussedinPartIandNote1toourconsolidatedfinancialstatements.PartnershipcommonunitholderswillreceiveaprorateddistributionperunitpayableinSunCokecommonsharesbaseduponaquarterlydistributionof$0.4000perunitfortheperiodbeginningwiththefirstdayofthemostrecentfullcalendarquarterwithrespecttowhichanyPartnershipunitholderdistributionrecorddatehasnotoccurred(orifthereisnosuchfullcalendarquarter,thenbeginningwiththefirstdayofthepartialcalendarquarterinwhichtheclosingoccurs)andendingonthedaypriortothecloseoftheSimplificationTransaction.

Covenants

AsofDecember31,2018,thePartnershipwasincompliancewithalldebtcovenants.Wedonotanticipateviolationofthesecovenantsnordoweanticipatethatanyofthesecovenantswillrestrictouroperationsorourabilitytoobtainadditionalfinancing.SeeNote11totheconsolidatedfinancialstatementsfordetailsondebtcovenants.

WeexpectthePartnership'scurrentdebtstructuretoremainunchangedatthetimeoftheSimplificationTransactionclosing.TheSimplificationTransactionwillnottriggeranychange-of-controlprovisions.

CreditRating

InFebruary2018,S&PGlobalRatingsreaffirmedSunCoke'scorporatefamilycreditratingofBB-(stable).Additionally,inMay2018,Moody’sInvestorsServicereaffirmedSunCoke'scorporatefamilycreditratingofB1(stable).

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CashFlowSummary

Thefollowingtablesetsforthasummaryofthenetcashprovidedby(usedin)operating,investingandfinancingactivitiesfortheyearsendedDecember31,2018,2017and2016:

Years Ended December 31,

2018 2017 2016 (Dollars in millions)Netcashprovidedbyoperatingactivities $ 162.8 $ 136.7 $ 183.6Netcashusedininvestingactivities (60.6) (39.0) (35.0)Netcashusedinfinancingactivities (96.2) (133.4) (172.6)Netincrease(decrease)incash,cashequivalentsandrestrictedcash $ 6.0 $ (35.7) $ (24.0)

Cash Provided by Operating Activities

Netcashprovidedbyoperatingactivitiesincreased$26.1millionto$162.8millionin2018ascomparedto2017.Theincreasewasdrivenbyafavorableyear-over-yearchangeofapproximately$31millioninprimaryworkingcapital,whichiscomprisedofaccountsreceivable,inventoriesandaccountspayable,primarilyasaresultofthetimingofcoalpurchasesandthesettlementofbalanceswithSunCokeduring2017.Additionally,thecurrentyearperiodbenefitedfrom$7.6millionoflowerinterestpayments,netofcapitalizedinterest,asaresultofthePartnership'sdebtrestructuringinthesecondquarterof2017,whichimpactedthetimingofinterestpaymentsandresultedinadditionalpaymentsin2017.

Netcashprovidedbyoperatingactivitiesdecreasedby$46.9millionin2017ascomparedto2016.Thedecreaseinoperatingcashflowswasprimarilydrivenbytheunfavorableyear-over-yearchangeinprimaryworkingcapital,ofwhichapproximately$25millionwasduetofluctuatingcoalpricesandinventorylevels.Furthercontributingtotheunfavorableyear-over-yearchangewasthepaymentof$7.0millionofthedeferredcorporateallocatedcoststoSunCokeduringthesecondquarterof2017,whichhadbeendeferredintheprioryearperiodandhighercashinterestpaymentsduring2017ascomparedto2016dueprimarilytochangesinthetimingofinterestpaymentsasaresultofthePartnershiprefinancingitsdebtobligations.

Cash Used in Investing Activities

Netcashusedininvestingactivitiesincreased$21.6millionto$60.6millionin2018ascomparedto2017.TheincreasewasduetohighercapitalspendingontheenvironmentalremediationprojectatGraniteCityduring2018aswellashigherspendingforongoingcapitalexpenditurescomparedto2017.

Netcashusedininvestingactivitiesincreased$4.0millionto$39.0millionin2017comparedto2016.TheincreasewasduetohighercapitalspendingontheenvironmentalremediationprojectatGraniteCityduring2017ascomparedto2016.

Cash Used in Financing Activities

Netcashusedinfinancingactivitieswas$96.2millionin2018andwasprimarilyrelatedtothePartnership'sdistributionpaymentstounitholdersandnoncontrollinginterestof$88.6millionandthePartnership'srepaymentof$25.0milliononitsrevolvingcreditfacilityduringthethirdquarterof2018.Pursuanttotheomnibusagreement,SunCoke,throughthegeneralpartner,madecapitalcontributionsof$20.0milliontousduring2018forcertainknownenvironmentalremediationprojects.SeeNote11toourconsolidatedfinancialstatementsforfurtherdiscussionofdebtactivities.

Netcashusedinfinancingactivitieswas$133.4millionin2017andwasprimarilyrelatedtothePartnership'sdistributionpaymentstounitholdersandnoncontrollinginterestof$121.9million.Additionally,during2017,thePartnershiprefinanceditsdebtobligations,forwhichthePartnershipmaderepaymentsofdebt,netofproceeds,of$11.5million.

Netcashusedinfinancingactivitieswas$172.6millionin2016.InconnectionwiththePartnership'sde-leveringactivities,thePartnershipmaderepaymentsofdebt,netofproceedsfromthesale-leasebackarrangement,of$61.1million.Additionally,during2016,thePartnershippaiddistributionstounitholdersandnoncontrollinginterestof$119.9million.TherepaymentsofdebtanddistributionswerepartiallyoffsetbycapitalcontributionsfromSunCokeof$8.4millionfromthereimbursementholiday.

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Capital Requirements and Expenditures

Ourcokemakingoperationsarecapitalintensive,requiringsignificantinvestmenttoupgradeorenhanceexistingoperationsandtomeetenvironmentalandoperationalregulations.Theleveloffuturecapitalexpenditureswilldependonvariousfactors,includingmarketconditionsandcustomerrequirements,andmaydifferfromcurrentoranticipatedlevels.Materialchangesincapitalexpenditurelevelsmayimpactfinancialresults,includingbutnotlimitedtotheamountofdepreciation,interestexpenseandrepairandmaintenanceexpense.

Ourcapitalrequirementshaveconsisted,andareexpectedtoconsist,primarilyof:

• Ongoingcapitalexpendituresrequiredtomaintainequipmentreliability,ensuretheintegrityandsafetyofourcokeovensandsteamgeneratorsandtocomplywithenvironmentalregulations.Ongoingcapitalexpendituresaremadetoreplacepartiallyorfullydepreciatedassetsinordertomaintaintheexistingoperatingcapacityoftheassetsand/ortoextendtheirusefullivesandalsoincludenewequipmentthatimprovestheefficiency,reliabilityoreffectivenessofexistingassets.Ongoingcapitalexpendituresdonotincludenormalrepairsandmaintenanceexpenses,whichareexpensedasincurred;

• Environmentalremediationprojectexpendituresrequiredtoimplementdesignchangestoensurethatourexistingfacilitiesoperateinaccordancewithexistingenvironmentalpermits;and

• Expansioncapitalexpenditurestoacquireand/orconstructcomplementaryassetstogrowourbusinessandtoexpandexistingfacilitiesaswellascapitalexpendituresmadetoenabletherenewalofacokesalesagreementand/orlogisticsserviceagreementandonwhichweexpecttoearnareasonablereturn.

Thefollowingtablesummarizesongoing,environmentalremediationprojectandexpansioncapitalexpenditures:

Years Ended December 31,

2018 2017 2016 (Dollars in millions)Ongoingcapital $ 30.2 $ 18.2 $ 15.8Environmentalremediationproject(1) 29.8 19.4 7.8Expansioncapital(2) 0.8 1.4 13.5Total $ 60.8 $ 39.0 $ 37.1

(1) Includes$3.2million,$1.1millionand$2.7millionofcapitalizedinterestinconnectionwiththegassharingprojectsfortheyearsendedDecember31,2018,2017and2016,respectively.

(2) PrimarilyconsistsofcapitalexpendituresfortheshiploaderexpansionprojectfundedwithcashwithheldinconjunctionwiththeacquisitionofCMT.Additionally,thisincludescapitalizedinterestof$2.3millionfortheyearendedDecember31,2016.

In2019,weexpectourcapitalexpenditurestobebetween$55millionand$60million.

Weretainedanaggregateof$119millioninproceedsfromourIPOandsubsequentdropdownstocomplywiththeexpectedtermsofaconsentdecreeattheHaverhillandGraniteCitycokemakingoperations.SunCokeandthePartnershipanticipatespendingapproximately$150milliontocomplywiththeseenvironmentalremediationprojects.Pursuanttotheomnibusagreement,anyamountsthatwespendontheseprojectsinexcessofthe$119millionwillbereimbursedbySunCoke.Priortoourformation,SunCokespentapproximately$7millionrelatedtotheseprojects.ThePartnershiphasspentapproximately$131milliontodateandexpectstospendtheremainingcapitalthroughthefirsthalfof2019.SunCokehasreimbursedthePartnershipapproximately$20millionfortheestimatedadditionalspendingbeyondwhathaspreviouslybeenfunded.

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Contractual Obligations

ThefollowingtablesummarizesoursignificantcontractualobligationsasofDecember31,2018:

Payment Due Dates

Total 2019 2020-2021 2022-2023 Thereafter (Dollars in millions)Totalborrowings:(1)

Principal $ 815.1 $ 2.8 $ 7.3 $ 105.0 $ 700.0Interest 359.1 58.6 116.7 107.2 76.6

Operatingleases(2) 1.5 1.1 0.3 0.1 —Purchaseobligations:

Coal(3) 434.0 434.0 — — —Transportationandcoalhandling(4) 89.1 23.6 26.2 12.9 26.4Other(5) 7.1 2.4 2.0 1.8 0.9

Total $ 1,705.9 $ 522.5 $ 152.5 $ 227.0 $ 803.9

(1) AtDecember31,2018,debtconsistsof$700.0millionofPartnershipNotes,$105.0millionofPartnershipRevolverand$10.1millionofPartnershipFinancingObligation.ProjectedinterestcostsonvariablerateinstrumentswerecalculatedusingmarketratesatDecember31,2018.

(2) Ouroperatingleasesincludeleasesforofficespace,land,locomotives,officeequipmentandotherpropertyandequipment.Operatingleasesincludealloperatingleasesthathaveinitialnoncancelabletermsinexcessofoneyear.

(3) CertaincoalprocurementcontractsincludedinthetableabovewerenotexecutedatDecember31,2018.Weestimatethesecontractstobeapproximately$68millionofpurchaseobligationsin2019andexpectthesetobefinalizedinthefirstquarterof2019.

(4) Transportationandcoalhandlingservicesconsistprimarilyofrailroadandterminalservicesattributabletodeliveryandhandlingofcokesales.Long-termcommitmentsgenerallyrelatetolocationsforwhichlimitedtransportationoptionsexistandmatchthelengthoftherelatedcokesalesagreement.

(5) Primarilyrepresentsopenpurchaseordersformaterials,suppliesandservices.

Apurchaseobligationisanenforceableandlegallybindingagreementtopurchasegoodsorservicesthatspecifiessignificantterms,including:fixedorminimumquantitiestobepurchased;fixed,minimumorvariablepriceprovisions;andtheapproximatetimingofthetransaction.Ourprincipalpurchaseobligationsintheordinarycourseofbusinessconsistofcoalandtransportationandcoalhandlingservices,includingrailroadservices.Ourcoalpurchaseobligationsaregenerallyfortermsofoneyearandarebasedonfixedprices.Thesepurchaseobligationsgenerallyincludefixedorminimumvolumerequirements.Transportationandcoalhandlingobligationsalsotypicallyincluderequiredminimumvolumecommitmentsandareforlong-termagreements.Thepurchaseobligationamountsinthetableabovearebasedontheminimumquantitiesorservicestobepurchasedatestimatedpricestobepaidbasedoncurrentmarketconditions.Accordingly,theactualamountsmayvarysignificantlyfromtheestimatesincludedinthetable.

Off-Balance Sheet Arrangements

Wehaveoff-balancesheetarrangements,whichincludeoperatingleasesdisclosedinNote12totheconsolidatedfinancialstatements.Otherthanthesearrangements,thePartnershiphasnotenteredintoanytransactions,agreementsorothercontractualarrangementsthatwouldresultinmaterialoff-balancesheetliabilities.

Impact of Inflation

Althoughtheimpactofinflationhasbeenrelativelylowinrecentyears,itisstillafactorintheU.S.economyandmayincreasethecosttoacquireorreplaceproperties,plants,andequipmentandmayincreasethecostsoflaborandsupplies.Totheextentpermittedbycompetition,regulationandexistingagreements,wehavegenerallypassedalongincreasedcoststoourcustomersintheformofhigherfees.Weexpecttocontinuethispractice.

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Critical Accounting Policies

ThediscussionandanalysisofourfinancialconditionandresultsofoperationsarebasedupontheconsolidatedfinancialstatementsofSunCokeEnergyPartners,L.P.,whichhavebeenpreparedinaccordancewithGAAP.Thepreparationofthesefinancialstatementsrequirestheuseofestimatesandassumptionsthataffectthereportedamountsofassets,liabilities,revenuesandexpensesandrelateddisclosureofcontingentassetsandliabilities.Accountingforimpairmentsissubjecttosignificantestimatesandassumptions.Althoughourmanagementbasesourestimatesonhistoricalexperienceandvariousotherassumptionsthatarebelievedtobereasonableunderthecircumstances,actualresultsmaydiffertosomeextentfromtheestimatesonwhichourconsolidatedfinancialstatementshavebeenpreparedatanypointintime.Despitetheseinherentlimitations,ourmanagementbelievesthe“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”andconsolidatedfinancialstatementsandfootnotesprovideameaningfulandfairperspectiveofourfinancialcondition.

Accounting for Impairments of Goodwill

Goodwill,whichrepresentstheexcessofthepurchasepriceoverthefairvalueofthenetassetsacquired,istestedforimpairmentasofOctober1ofeachyear,orwheneventsoccurorcircumstanceschangethatwould,morelikelythannot,reducethefairvalueofthereportingunittobelowitscarryingvalue.Weperformourannualgoodwillimpairmenttestbycomparingthefairvalueofthereportingunitwithitscarryingamount.Wewouldrecognizeanimpairmentchargefortheamountbywhichthecarryingamountexceedsthereportingunit’sfairvalue.

TheLogisticsreportingunithad$73.5millionofgoodwillatDecember31,2018.ThesteponeanalysisasofOctober1stresultedinthefairvalueoftheLogisticsreportingunit,whichwasdeterminedbasedonadiscountedcashflowanalysis,exceedingitscarryingvaluebyapproximately30percent.Asignificantportionofourlogisticsbusinessholdslong-term,take-or-paycontractswithMurrayAmericanCoal,Inc.("Murray")andForesightEnergyLLC("Foresight").Keyassumptionsinourgoodwillimpairmenttestincludecontinuedcustomerperformanceagainstlong-term,take-or-paycontracts,renewaloffuturelong-term,take-or-paycontracts,incrementalmerchantbusinessanda14percentdiscountraterepresentingtheestimatedweightedaveragecostofcapitalforthisbusinessline.Theuseofdifferentassumptions,estimatesorjudgments,suchastheestimatedfuturecashflowsofLogisticsandthediscountrateusedtodiscountsuchcashflows,couldsignificantlyimpacttheestimatedfairvalueofareportingunit,andtherefore,impacttheexcessfairvalueabovecarryingvalueofthereportingunit.A100basispointchangeinthediscountratewouldnothavereducedthefairvalueofthereportingunitbelowitscarryingvalue.

Recent Accounting Standards

SeeNote2totheconsolidatedfinancialstatements.

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Non-GAAP Financial Measures

InadditiontotheGAAPresultsprovidedintheAnnualReportonForm10-K,wehaveprovidedanon-GAAPfinancialmeasure,AdjustedEBITDA.Ourmanagement,aswellascertaininvestors,usesthisnon-GAAPmeasuretoanalyzeourcurrentandexpectedfuturefinancialperformanceandliquidity.Thismeasureisnotinaccordancewith,orasubstitutefor,GAAPandmaybedifferentfrom,orinconsistentwith,non-GAAPfinancialmeasuresusedbyothercompanies.SeeNote15inourconsolidatedfinancialstatementsforboththedefinitionofAdjustedEBITDAandthereconciliationsfromGAAPtothenon-GAAPmeasurementfor2018,2017and2016.

Belowarereconciliationsof2019estimatedAdjustedEBITDAfromitsclosestGAAPmeasures:

2019

Low High (Dollars in millions)Net Income $ 46 $ 61Add:

Depreciationandamortizationexpense 110 105Interestexpense 60 60Incometaxexpense 2 3

Adjusted EBITDA $ 218 $ 229Subtract:

AdjustedEBITDAattributabletononcontrollinginterest(1) 3 4Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 215 $ 225

2019

Low High (Dollars in millions)Net cash provided by operating activities $ 145 $ 160Add:

Cashinterestpaid 60 60Cashincometaxespaid 2 3Changesinworkingcapitalandother 11 6

Adjusted EBITDA $ 218 $ 229Subtract:

AdjustedEBITDAattributabletononcontrollinginterest(1) 3 4

Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 215 $ 225

(1) Reflectsnetincomeattributabletononcontrollinginterestadjustedfornoncontrollinginterest'sshareofinterest,taxes,depreciationandamortization.

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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Wehavemadeforward-lookingstatementsinthisAnnualReportonForm10-K,including,amongothers,inthesectionsentitled“RiskFactors,”“QuantitativeandQualitativeDisclosuresAboutMarketRisk”and“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations.”Suchforward-lookingstatementsarebasedonmanagement’sbeliefsandassumptionsandoninformationcurrentlyavailable.Forward-lookingstatementsincludetheinformationconcerningourpossibleorassumedfutureresultsofoperations,businessstrategies,financingplans,competitiveposition,potentialgrowthopportunities,potentialoperatingperformance,theeffectsofcompetitionandtheeffectsoffuturelegislationorregulations.Forward-lookingstatementsincludeallstatementsthatarenothistoricalfactsandmaybeidentifiedbytheuseofforward-lookingterminologysuchasthewords“believe,”“expect,”“plan,”“intend,”“anticipate,”“estimate,”“predict,”“potential,”“continue,”“may,”“will,”“should”orthenegativeofthesetermsorsimilarexpressions.Inparticular,statementsinthisAnnualReportonForm10-KconcerningfuturedistributionsaresubjecttoapprovalbyourBoardofDirectorsandwillbebaseduponcircumstancesthenexisting.

Forward-lookingstatementsinvolverisks,uncertaintiesandassumptions.Actualresultsmaydiffermateriallyfromthoseexpressedintheseforward-lookingstatements.Youshouldnotputunduerelianceonanyforward-lookingstatements.Wedonothaveanyintentionorobligationtoupdateanyforward-lookingstatement(oritsassociatedcautionarylanguage),whetherasaresultofnewinformationorfutureevents,afterthedateofthisAnnualReportonForm10-K,exceptasrequiredbyapplicablelaw.

Theriskfactorsdiscussedin“RiskFactors”couldcauseourresultstodiffermateriallyfromthoseexpressedintheforward-lookingstatementsmadeinthisAnnualReportonForm10-K.Therealsomaybeotherrisksthatweareunabletopredictatthistime.Suchrisksanduncertaintiesinclude,withoutlimitation:

• changesinlevelsofproduction,productioncapacity,pricingand/ormarginsforcoalandcoke;

• variationinavailability,qualityandsupplyofmetallurgicalcoalusedinthecokemakingprocess,includingasaresultofnon-performancebyoursuppliers;

• changesinthemarketplacethatmayaffectourlogisticsbusiness,includingthesupplyanddemandforthermalandmetallurgicalcoals;

• changesinthemarketplacethatmayaffectourcokemakingbusiness,includingthesupplyanddemandforourcoke,aswellasincreasedimportsofcokefromforeignproducers;

• competitionfromalternativesteelmakingandothertechnologiesthathavethepotentialtoreduceoreliminatetheuseofcoke;

• ourdependenceon,relationshipswith,andotherconditionsaffecting,ourcustomers;

• ourdependenceon,relationshipswith,andotherconditionsaffecting,oursuppliers;

• severefinancialhardshiporbankruptcyofoneormoreofourmajorcustomers,ortheoccurrenceofacustomerdefaultorothereventaffectingourabilitytocollectpaymentsfromourcustomers;

• volatilityandcyclicaldownturnsinthecoalmarket,inthecarbonsteelindustry,andotherindustriesinwhichourcustomersand/orsuppliersoperate;

• ourabilitytorepairagingcokeovenstomaintainoperationalperformance;

• ourabilitytoenterintonew,orrenewexisting,long-termagreementsuponfavorabletermsforthesaleofcokesteam,orelectricpower,orforcoalhandlingservices(includingtransportation,storageandmixing);

• ourabilitytoidentifyacquisitions,executethemunderfavorabletermsandintegratethemintoourexistingbusinessoperations;

• ourabilitytorealizeexpectedbenefitsfrominvestmentsandacquisitions;

• ourabilitytoconsummateinvestmentsunderfavorableterms,includingwithrespecttoexistingcokemakingfacilities,whichmayutilizeby-producttechnology,intheU.S.andCanada,andintegratethemintoourexistingbusinessesandhavethemperformatanticipatedlevels;

• ourabilitytodevelop,design,permit,construct,startuporoperatenewcokemakingfacilitiesintheU.S.;

• ourabilitytosuccessfullyimplementourgrowthstrategy;

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• ageof,andchangesinthereliability,efficiencyandcapacityofthevariousequipmentandoperatingfacilitiesusedinourcokemakingand/orlogisticsoperations,andintheoperationsofourmajorcustomers,businesspartnersand/orsuppliers;

• changesintheexpectedoperatinglevelsofourassets;

• ourabilitytomeetminimumvolumerequirements,coal-to-cokeyieldstandardsandcokequalitystandardsinourcokesalesagreements;

• changesinthelevelofcapitalexpendituresoroperatingexpenses,includinganychangesinthelevelofenvironmentalcapital,operatingorremediationexpenditures;

• ourabilitytoserviceouroutstandingindebtedness;

• ourabilitytocomplywiththerestrictionsimposedbyourfinancingarrangements;

• ourabilitytocomplywithapplicablefederal,stateorlocallawsandregulations,including,butnotlimitedto,thoserelatingtoenvironmentalmatters;

• nonperformanceorforcemajeureby,ordisputeswith,orchangesincontracttermswith,majorcustomers,suppliers,dealers,distributorsorotherbusinesspartners;

• availabilityofskilledemployeesforourcokemakingand/orlogisticsoperations,andotherworkplacefactors;

• effectsofrailroad,barge,truckandothertransportationperformanceandcosts,includinganytransportationdisruptions;

• effectsofadverseeventsrelatingtotheoperationofourfacilitiesandtothetransportationandstorageofhazardousmaterialsorregulatedmedia(includingequipmentmalfunction,explosions,fires,spills,impoundmentfailureandtheeffectsofsevereweatherconditions);

• effectsofadverseeventsrelatingtothebusinessorcommercialoperationsofourcustomersand/orsuppliers;

• disruptioninourinformationtechnologyinfrastructureand/orlossofourabilitytosecurelystore,maintain,ortransmitdataduetosecuritybreachbyhackers,employeeerrorormalfeasance,terroristattack,powerloss,telecommunicationsfailureorotherevents;

• ourabilitytoenterintojointventuresandothersimilararrangementsunderfavorableterms;

• ourabilitytoconsummateassetssales,otherdivestituresandstrategicrestructuringinatimelymanneruponfavorableterms,and/orrealizetheanticipatedbenefitsfromsuchactions;

• changesintheavailabilityandcostofequityanddebtfinancing;

• impactsonourliquidityandabilitytoraisecapitalasaresultofchangesinthecreditratingsassignedtoourindebtedness;

• changesincredittermsrequiredbyoursuppliers;

• risksrelatedtolaborrelationsandworkplacesafety;

• proposedorfinalchangesinexisting,ornew,statutes,regulations,rules,governmentalpoliciesandtaxes,ortheirinterpretations,includingthoserelatingtoenvironmentalmattersandtaxes;

• theexistenceofhazardoussubstancesorotherenvironmentalcontaminationonpropertyownedorusedbyus;

• receiptofrequiredpermitsandotherregulatoryapprovalsandcompliancewithcontractualobligationsinconnectionwithourcokemakingand/orlogisticsoperations;

• risksrelatedtoenvironmentalcompliance;

• claimsofnoncompliancewithanystatutoryorregulatoryrequirements;

• theaccuracyofourestimatesofanynecessaryreclamationand/orremediationactivities;

• proposedorfinalchangesinaccountingand/ortaxmethodologies,laws,regulations,rules,orpolicies,ortheirinterpretations,includingthoseaffectinginventories,leases,income,orothermatters;

• ourindebtednessandcertaincovenantsinourdebtdocuments;

• changesinproductspecificationsforthecokethatweproduceorthecoalsthatwemix,storeandtransport;

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• changesininsurancemarketsimpactingcostsandthelevelandtypesofcoverageavailable,andthefinancialabilityofourinsurerstomeettheirobligations;

• inadequateprotectionofourintellectualpropertyrights;and

• effectsofgeologicconditions,weather,naturaldisastersandotherinherentrisksbeyondourcontrol.

Thefactorsidentifiedabovearebelievedtobeimportantfactors,butnotnecessarilyalloftheimportantfactors,thatcouldcauseactualresultstodiffermateriallyfromthoseexpressedinanyforward-lookingstatementmadebyus.Otherfactorsnotdiscussedhereincouldalsohavematerialadverseeffectsonus.Allforward-lookingstatementsincludedinthisAnnualReportonForm10-Kareexpresslyqualifiedintheirentiretybytheforegoingcautionarystatements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Ourprimaryareasofmarketriskincludechangesinthepriceofcoal,whichisthekeyrawmaterialforourcokemakingbusinessandinterestrates.Wedonotenterintoanymarketrisksensitiveinstrumentsfortradingpurposes.

Priceofcoal

Wedidnotusederivativestohedgeanyofourcoalpurchases.Althoughwehavenotpreviouslydoneso,wemayenterintoderivativefinancialinstrumentsfromtimetotimeinthefuturetoeconomicallymanageourexposurerelatedtothesemarketrisks.

Thelargestcomponentofthepriceofourcokeiscoalcost.However,underthecokesalesagreementsatallofourcokemakingfacilities,coalcostsareapass-throughcomponentofthecokeprice,providedthatweareabletorealizecertaintargetedcoal-to-cokeyields.Assuch,whentargetedcoal-to-cokeyieldsareachieved,thepriceofcoalisnotasignificantdeterminingfactorintheprofitabilityofthesefacilities.

Theprovisionsofourcokesalesagreementsrequireustomeetminimumproductionlevelsandgenerallyrequireustosecurereplacementcokesuppliesattheprevailingmarketpriceifwedonotmeetcontractualminimumvolumes.Becausemarketpricesforcokearegenerallyhighlycorrelatedtomarketpricesformetallurgicalcoal,totheextentanyofourfacilitiesareunabletoproducetheircontractualminimumvolumes,wearesubjecttomarketriskrelatedtotheprocurementofreplacementsupplies.

InterestRates

Weareexposedtochangesininterestratesasaresultofourborrowingactivitiesandourcashbalances.Thedailyaverageoutstandingbalanceonborrowingswithvariableinterestrateswas$127.9millionand$184.3millionduringtheyearsendedDecember31,2018and2017,respectively.Assuminga50basispointchangeinLIBOR,interestexpensewouldhavebeenimpactedby$0.6millionand$0.9millionin2018and2017,respectively.AtDecember31,2018,wehadoutstandingborrowingswithvariableinterestratesof$105.0millionunderthePartnershipRevolver.

AtDecember31,2018and2017,wehadcashandcashequivalentsof$12.6millionand$6.6million,respectively,whichaccruesinterestatvariousrates.Assuminga50basispointchangeintherateofinterestassociatedwithourcashandcashequivalents,interestincomewouldhavebeenimpactedbyzeroand$0.1millionfortheyearsendedDecember31,2018and2017.

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Item 8. Financial Statements and Supplementary Data

INDEX TO FINANCIAL STATEMENTS

Page

ReportofIndependentRegisteredPublicAccountingFirm 58

ConsolidatedStatementsofOperationsfortheYearsEndedDecember31,2018,2017and2016 60

ConsolidatedBalanceSheetsatDecember31,2018and2017 61

ConsolidatedStatementsofCashFlowsfortheYearsEndedDecember31,2018,2017and2016 62

ConsolidatedStatementsofEquityfortheYearsEndedDecember31,2018,2017and2016 63

NotestoConsolidatedFinancialStatements 64

1.GeneralandBasisofPresentation 64

2.SummaryofSignificantAccountingPolicies 65

3.RelatedPartyTransactions 67

4.CustomerConcentrations 69

5.NetIncomeperUnitandCashDistribution 70

6.IncomeTaxes 73

7.Inventories 75

8.Properties,PlantsandEquipment,Net 75

9.GoodwillandOtherIntangibleAssets 75

10.RetirementandOtherPost-EmploymentBenefitsPlans 77

11.DebtandFinancingObligation 77

12.CommitmentsandContingentLiabilities 79

13.FairValueMeasurements 80

14.RevenuefromContractswithCustomers 81

15.BusinessSegmentInformation 83

16.SelectedQuarterlyData(unaudited) 86

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Report of Independent Registered Public Accounting Firm

Totheunitholdersandboardofdirectors

SunCokeEnergyPartnersL.P.:

OpinionsontheConsolidatedFinancialStatementsandInternalControlOverFinancialReporting

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofSunCokeEnergyPartners,L.P.,andsubsidiaries(the“Partnership”)asofDecember31,2018and2017,therelatedconsolidatedstatementsofoperations,equity,andcashflowsforeachoftheyearsinthethree‑yearperiodendedDecember31,2018,andtherelatednotes(collectively,the“consolidatedfinancialstatements”).WealsohaveauditedthePartnership’sinternalcontroloverfinancialreportingasofDecember31,2018,basedoncriteriaestablishedinInternalControl-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.

Inouropinion,theconsolidatedfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionofthePartnershipasofDecember31,2018and2017,andtheresultsofitsoperationsanditscashflowsforeachoftheyearsinthethree‑yearperiodendedDecember31,2018,inconformitywithU.S.generallyacceptedaccountingprinciples.Alsoinouropinion,thePartnershipmaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofDecember31,2018,basedoncriteriaestablishedinInternalControl-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.

BasisforOpinion

ThePartnership’smanagementisresponsiblefortheseconsolidatedfinancialstatements,formaintainingeffectiveinternalcontroloverfinancialreporting,andforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting,includedintheaccompanyingManagement’sReportonInternalControloverFinancialReporting.OurresponsibilityistoexpressanopiniononthePartnership’sconsolidatedfinancialstatementsandanopiniononthePartnership’sinternalcontroloverfinancialreportingbasedonouraudits.WeareapublicaccountingfirmregisteredwiththePublicCompanyAccountingOversightBoard(UnitedStates)(“PCAOB”)andarerequiredtobeindependentwithrespecttothePartnershipinaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB.

WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsarefreeofmaterialmisstatement,whetherduetoerrororfraud,andwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.

Ourauditsoftheconsolidatedfinancialstatementsincludedperformingprocedurestoassesstherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetoerrororfraud,andperformingproceduresthatrespondtothoserisks.Suchproceduresincludedexamining,onatestbasis,evidenceregardingtheamountsanddisclosuresintheconsolidatedfinancialstatements.Ourauditsalsoincludedevaluatingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatements.Ourauditofinternalcontroloverfinancialreportingincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditsprovideareasonablebasisforouropinions.

DefinitionandLimitationsofInternalControlOverFinancialReporting

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

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Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

/s/KPMGLLP

WehaveservedasthePartnership’sauditorsince2015.

Chicago,Illinois

February15,2019

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SunCoke Energy Partners, L.P.Consolidated Statements of Operations

Years Ended December 31,

2018 2017 2016

(Dollars and units in millions, except per unit amounts)Revenues Salesandotheroperatingrevenue $ 892.1 $ 845.6 $ 779.7Costs and operating expenses Costofproductssoldandoperatingexpenses 648.9 586.7 517.2Selling,generalandadministrativeexpenses 33.6 32.5 38.7Depreciationandamortizationexpense 92.4 83.6 77.7Totalcostsandoperatingexpenses 774.9 702.8 633.6Operating income 117.2 142.8 146.1Interestexpense,net 59.4 56.4 47.7Loss(gain)onextinguishmentofdebt,net — 20.0 (25.0)Incomebeforeincometax(benefit)expense 57.8 66.4 123.4Incometax(benefit)expense (1.6) 83.9 2.0Net income (loss) 59.4 (17.5) 121.4Less:Netincomeattributabletononcontrollinginterests 1.9 0.6 2.3Net income (loss) attributable to SunCoke Energy Partners, L.P. 57.5 (18.1) 119.1

Generalpartner'sinterestinnetincome $ 1.2 $ 7.1 $ 23.6Limitedpartners'interestinnetincome(loss) $ 56.3 $ (25.2) $ 95.5Netincome(loss)percommonunit(basicanddiluted) $ 1.22 $ (0.54) $ 2.07Weightedaveragecommonunitsoutstanding(basicanddiluted) 46.2 46.2 46.2

(SeeAccompanyingNotes)

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SunCoke Energy Partners, L.P.Consolidated Balance Sheets

December 31,

2018 2017 (Dollars in millions)Assets Cashandcashequivalents $ 12.6 $ 6.6Receivables 48.8 42.2Receivablesfromaffiliates,net 3.1 5.7Inventories 79.0 79.4Othercurrentassets 1.0 1.9Totalcurrentassets 144.5 135.8Properties,plantsandequipment(netofaccumulateddepreciationof$499.9million,and$423.1millionatDecember31,2018and2017,respectively) 1,245.1 1,265.6Goodwill 73.5 73.5Otherintangibleassets 155.8 166.2Deferredchargesandotherassets 0.2 0.3Totalassets $ 1,619.1 $ 1,641.4Liabilities and Equity Accountspayable $ 68.8 $ 54.9Accruedliabilities 13.5 14.6Deferredrevenue 3.0 1.7Currentportionoflong-termdebtandfinancingobligation 2.8 2.6Interestpayable 3.2 4.0Totalcurrentliabilities 91.3 77.8Long-termdebtandfinancingobligation 793.3 818.4Deferredincometaxes 115.7 119.2Otherdeferredcreditsandliabilities 12.1 10.1Totalliabilities 1,012.4 1,025.5Equity Heldbypublic: Commonunits17,727,249,and17,958,420unitsissuedatDecember31,2018and2017,respectively) 194.1 207.0Heldbyparent: Commonunits28,499,899and28,268,728unitsissuedatDecember31,2018and2017,respectively) 351.6 365.4Generalpartner'sinterest 49.3 31.2Partners’capitalattributabletoSunCokeEnergyPartners,L.P. 595.0 603.6Noncontrollinginterest 11.7 12.3Totalequity 606.7 615.9Totalliabilitiesandequity $ 1,619.1 $ 1,641.4

(SeeAccompanyingNotes)

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SunCoke Energy Partners, L.P.Consolidated Statements of Cash Flows

Years Ended December 31,

2018 2017 2016

(Dollars in millions)Cash Flows from Operating Activities: Netincome(loss) $ 59.4 $ (17.5) $ 121.4Adjustmentstoreconcilenetincome(loss)tonetcashprovidedbyoperatingactivities:

Depreciationandamortizationexpense 92.4 83.6 77.7Deferredincometax(benefit)expense (3.5) 81.3 (0.1)Loss(gain)onextinguishmentofdebt — 20.0 (25.0)Changesinworkingcapitalpertainingtooperatingactivities:

Receivables (6.6) (2.5) 0.3Receivablesfromaffiliates,net 2.6 (9.0) 4.7Inventories 0.4 (12.5) 10.2Accountspayable 13.2 3.1 2.3Accruedliabilities (0.9) 2.7 0.5Deferredrevenue 1.3 (0.8) 0.4Interestpayable (0.8) (10.7) (2.8)

Other 5.3 (1.0) (6.0)Netcashprovidedbyoperatingactivities 162.8 136.7 183.6Cash Flows from Investing Activities: Capitalexpenditures (60.8) (39.0) (37.1)Otherinvestingactivities 0.2 — 2.1Netcashusedininvestingactivities (60.6) (39.0) (35.0)Cash Flows from Financing Activities: Proceedsfromissuanceofcommonunits,netofofferingcosts — — —Proceedsfromissuanceoflong-termdebt — 693.7 —Repaymentoflong-termdebt — (644.9) (66.1)Debtissuancecosts — (15.8) (0.2)Proceedsfromrevolvingcreditfacility 179.5 350.0 28.0Repaymentofrevolvingcreditfacility (204.5) (392.0) (38.0)Proceedsfromfinancingobligation — — 16.2Repaymentoffinancingobligation (2.6) (2.5) (1.0)Distributionstounitholders(publicandparent) (86.1) (119.2) (116.4)Distributionstononcontrollinginterest(SunCokeEnergy,Inc.) (2.5) (2.7) (3.5)CapitalcontributionsfromSunCoke 20.0 — 8.4Netcashusedinfinancingactivities (96.2) (133.4) (172.6)Netincrease(decrease)incashandcashequivalentsandrestrictedcash 6.0 (35.7) (24.0)Cash,cashequivalentsandrestrictedcashatbeginningofyear 6.6 42.3 66.3Cash,cashequivalentsandrestrictedcashatendofyear $ 12.6 $ 6.6 $ 42.3

Supplemental Disclosure of Cash Flow Information Interestpaid,netofcapitalizedinterestof$3.2million,$1.1millionand$5.0million,respectively $ 56.9 $ 64.5 $ 49.0Incometaxespaid $ 2.9 $ 1.4 $ 1.5

(SeeAccompanyingNotes)

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SunCoke Energy Partners, L.P.Consolidated Statements of Equity

Common - Public Common -SunCoke Subordinated

- SunCoke General Partner -SunCoke Non- controlling

Interest Total

(Dollars in millions)At December 31, 2015 $ 300.0 $ 211.0 $ 203.3 $ 15.1 $ 15.6 $ 745.0Partnershipnetincome 46.1 49.4 — 23.6 2.3 121.4Conversionofsubordinatedunitstocommonunits — 203.3 (203.3) — — —Distributiontounitholders,netofunitissuances (49.2) (60.4) — (8.0) — (117.6)Distributiontononcontrollinginterest — — — — (3.5) (3.5)SunCokecapitalcontributions — 7.0 — 1.4 — 8.4At December 31, 2016 $ 296.9 $ 410.3 $ — $ 32.1 $ 14.4 $ 753.7Partnershipnet(loss)income (13.5) (11.7) — 7.1 0.6 (17.5)Distributiontounitholders,netofunitissuances

(46.8) (62.8) — (8.0) — (117.6)PublicunitsacquiredbySunCoke (29.6) 29.6 — — — —Distributiontononcontrollinginterest — — — — (2.7) (2.7)At December 31, 2017 $ 207.0 $ 365.4 $ — $ 31.2 $ 12.3 $ 615.9Partnershipnetincome 21.7 34.6 — 1.2 1.9 59.4Distributiontounitholders (31.9) (51.1) — (3.1) — (86.1)Distributionstononcontrollinginterest — — — — (2.5) (2.5)PublicunitsacquiredbySunCoke (2.7) 2.7 — — — —SunCokecapitalcontributions — — — 20.0 — 20.0

At December 31, 2018 $ 194.1 $ 351.6 $ — $ 49.3 $ 11.7 $ 606.7(SeeAccompanyingNotes)

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SunCoke Energy Partners, L.P.

Notes to Consolidated Financial Statements

1. General

Description of Business

SunCokeEnergyPartners,L.P.,(the“Partnership,”“we,”“our”and“us”),primarilyproducescokeusedintheblastfurnaceproductionofsteel.Cokeisaprincipalrawmaterialintheblastfurnacesteelmakingprocessandisproducedbyheatingmetallurgicalcoalinarefractoryoven,whichreleasescertainvolatilecomponentsfromthecoal,thustransformingthecoalintocoke.Wealsoprovidehandlingand/ormixingservicesofcoalandotheraggregatesatourlogisticsterminals.

AtDecember31,2018,weowneda98percentinterestinHaverhillCokeCompanyLLC(“Haverhill”),MiddletownCokeCompany,LLC(“Middletown”)andGatewayEnergyandCokeCompany,LLC(“GraniteCity”)andSunCokeEnergy,Inc.(“SunCoke”)ownedtheremaining2percentinterestineachofHaverhill,Middletown,andGraniteCity.ThePartnershipalsoownsa100percentinterestinallofitslogisticsterminals.Throughitssubsidiary,SunCokeowneda60.4percentlimitedpartnershipinterestinusandindirectlyownedandcontrolsourgeneralpartner,whichholdsa2percentgeneralpartnerinterestinusandallofourincentivedistributionrights(“IDRs”).

Ourcokemakingovenshavecollectivecapacitytoproduce2.3milliontonsofcokeannuallyandutilizeefficient,modernheatrecoverytechnologydesignedtocombustthecoal’svolatilecomponentsliberatedduringthecokemakingprocessandusetheresultingheattocreatesteamorelectricityforsale.Thisdiffersfromby-productcokemaking,whichseekstorepurposethecoal’sliberatedvolatilecomponentsforotheruses.WehaveconstructedtheonlygreenfieldcokemakingfacilitiesintheUnitedStates(“U.S.”)inapproximately30yearsandaretheonlyNorthAmericancokeproducerthatutilizesheatrecoverytechnologyinthecokemakingprocess.Weprovidesteampursuanttosteamsupplyandpurchaseagreementswithourcustomers.Electricityissoldintotheregionalpowermarketorpursuanttoenergysalesagreements.

Ourlogisticsbusinessprovidescoalhandlingand/ormixingservicestosteel,coke(includingsomeofourdomesticcokemakingfacilities),electricutilityandcoalminingcustomers.ThelogisticsbusinesshasterminalsinIndiana,WestVirginia,andLouisianawiththecollectivecapacitytomixand/ortransloadmorethan40milliontonsofcoalannuallyandhastotalstoragecapacityofapproximately3milliontons.

OnFebruary5,2019,SunCokeandthePartnershipannouncedthattheyhaveenteredintoadefinitiveagreementwherebySunCokewillacquirealloutstandingcommonunitsofthePartnershipnotalreadyownedbySunCokeinastock-for-unitmergertransaction(the“SimplificationTransaction”).Pursuanttothetermsofthisagreement(“MergerAgreement”),Partnershipunaffiliatedcommonunitholderswillreceive1.40SunCokecommonshares,plusafractionofaSunCokecommonsharebasedonaratioasfurtherdescribedintheMergerAgreement,foreachPartnershipcommonunit.OnbehalfofthePartnershipanditspublicunitholders,thetermsoftheSimplificationTransactionwerenegotiated,reviewedandapprovedbytheconflictscommitteeoftheBoardofDirectorsofthePartnership'sgeneralpartner,whichconsistedsolelyofindependentdirectors.ThetransactionwasapprovedbytheBoardofDirectorsofthegeneralpartnerofthePartnershipandtheBoardofDirectorsofSunCoke.

FollowingcompletionoftheSimplificationTransaction,thePartnershipwillbecomeawholly-ownedsubsidiaryofSunCoke,thePartnership'scommonunitswillceasetobepubliclytradedandthePartnership'sIDRswillbeeliminated.TheSimplificationTransactionisexpectedtocloselateinthesecondquarterof2019orearlyinthethirdquarterof2019,subjecttocustomaryclosingconditions,includingtheapprovalbyholdersofamajorityoftheoutstandingSunCokecommonsharesandPartnershipcommonunits,aswellascustomaryregulatoryapprovals.SunCokeindirectlyownsthemajorityofthePartnershipcommonunits,whichissufficienttoapprovethetransactiononbehalfoftheholdersofPartnershipcommonunits.

WewereorganizedinDelawarein2012andareheadquarteredinLisle,Illinois.Webecameapublicly-tradedpartnershipin2013,andourstockislistedontheNewYorkStockExchange(“NYSE”)underthesymbol“SXCP.”

Consolidation and Basis of Presentation

TheconsolidatedfinancialstatementsofthePartnershipanditssubsidiarieswerepreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheU.S.(“GAAP”)andincludetheassets,liabilities,revenuesandexpensesofthePartnershipandallsubsidiarieswherewehaveacontrollingfinancialinterest.Intercompanytransactionsandbalanceshavebeeneliminatedinconsolidation.NetincomeattributabletononcontrollinginterestrepresentsSunCoke'srespectiveownershipinterestinHaverhill,MiddletownandGraniteCityduringyearsendedDecember31,2018,2017and2016.

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2. Summary of Significant Accounting Policies

Use of Estimates

ThepreparationoffinancialstatementsinconformitywithGAAPrequiresmanagementtomakeestimatesandassumptionsthataffecttheamountsreportedintheconsolidatedfinancialstatementsandaccompanyingnotes.Actualamountscoulddifferfromtheseestimates.

Reclassifications

Certainamountsinthepriorperiodconsolidatedfinancialstatementshavebeenreclassifiedtoconformtothecurrentyearpresentation.See"RecentlyAdoptedAccountingPronouncements"forfurtherdetails.

Revenue Recognition

ThePartnershipsellscokeaswellassteamandelectricityandalsoprovidesmixingandhandlingservicesofcoalandotheraggregates.SeeNoteNote14.

SubstantiallyallofthecokeproducedbythePartnershipissoldpursuanttolong-termcontractswithitscustomers.ThePartnershipevaluateseachofitscontractstodeterminewhetherthearrangementcontainsaleaseundertheapplicableaccountingstandards.Ifthespecificfactsandcircumstancesindicatethatitisremotethatpartiesotherthanthecontractedcustomerwilltakemorethanaminoramountofthecokethatwillbeproducedbytheproperty,plantandequipmentduringthetermofthecokesupplyagreement,andthepricethatthecustomerispayingforthecokeisneithercontractuallyfixedperunitnorequaltothecurrentmarketpriceperunitatthetimeofdelivery,thenthelong-termcontractisdeemedtocontainalease.Theleasecomponentofthepriceofcokerepresentstherentalpaymentfortheuseoftheproperty,plantandequipment,andallsuchpaymentsareaccountedforascontingentrentalsastheyareonlyearnedbythePartnershipwhenthecokeisdeliveredandtitlepassestothecustomer.ThetotalamountofrevenuerecognizedbythePartnershipforthesecontingentrentalsrepresentslessthan10percentofsalesandotheroperatingrevenuesforeachoftheyearsendedDecember31,2018,2017and2016.UponadoptionofAccountingStandardCodification("ASC")842,"Leases"in2019,theselong-termcontractstosellcokewillnolongerbedeemedtocontainoperatingleases.

Cash Equivalents

ThePartnershipconsidersallhighlyliquidinvestmentswitharemainingmaturityofthreemonthsorlessatthetimeofpurchasetobecashequivalents.Thesecashequivalentsconsistprincipallyofmoneymarketinvestments.

Inventories

Inventoriesarevaluedatthelowerofcostornetrealizablevalue.Costisdeterminedusingthefirst-in,first-outmethod,exceptforthePartnership’smaterialsandsuppliesinventory,whicharedeterminedusingtheaverage-costmethod.ThePartnershiputilizesthesellingpricesunderitslong-termcokesupplycontractstorecordlowerofcostornetrealizablevalueinventoryadjustments.

Properties, Plants and Equipment

Plantsandequipmentaredepreciatedonastraight-linebasisovertheirestimatedusefullives.Cokeandenergyplant,machineryandequipmentaregenerallydepreciatedover25to30years.Logisticsplantandequipmentaregenerallydepreciatedover15to35years.DepreciationandamortizationisexcludedfromcostofproductssoldandoperatingexpensesandispresentedseparatelyintheConsolidatedStatementsofOperations.Gainsandlossesonthedisposalorretirementoffixedassetsarereflectedinearningswhentheassetsaresoldorretired.Amountsincurredthatextendanasset’susefullife,increaseitsproductivityoraddproductioncapacityarecapitalized.ThePartnershipaccountsforchangesinusefullives,whenappropriate,asachangeinestimate,withprospectiveapplicationonly.ThePartnershipcapitalizedinterestof$3.2million,$1.1millionand$5.0millionin2018,2017and2016,respectively.Directcosts,suchasoutsidelabor,materials,internalpayrollandbenefitscosts,incurredduringcapitalprojectsarecapitalized;indirectcostsarenotcapitalized.Normalrepairsandmaintenancecostsareexpensedasincurred.

Impairment of Long-Lived Assets

Long-livedassetsarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountoftheassetsmaynotberecoverable.Along-livedasset,orgroupofassets,isconsideredtobeimpairedwhentheundiscountednetcashflowsexpectedtobegeneratedbytheassetarelessthanitscarryingamount.Suchestimatedfuturecashflowsarehighlysubjectiveandarebasedonnumerousassumptionsaboutfutureoperationsandmarketconditions.Theimpairmentrecognizedistheamountbywhichthecarryingamountexceedsthefairmarketvalueoftheimpairedasset,orgroupofassets.Itisalsodifficulttopreciselyestimatefairmarketvaluebecausequotedmarketpricesfor

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ourlong-livedassetsmaynotbereadilyavailable.Therefore,fairmarketvalueisgenerallybasedonthepresentvaluesofestimatedfuturecashflowsusingdiscountratescommensuratewiththerisksassociatedwiththeassetsbeingreviewedforimpairment.

Goodwill and Other Intangibles

Goodwill,whichrepresentstheexcessofthepurchasepriceoverthefairvalueofnetassetsacquired,istestedforimpairmentasofOctober1ofeachyear,orwheneventsoccurorcircumstanceschangethatwould,morelikelythannot,reducethefairvalueofareportingunittobelowitscarryingvalue.ThePartnershipperformsitsannualgoodwillimpairmenttestbycomparingthefairvalueofthereportingunitwithitscarryingamount.ThePartnershipwouldrecognizeanimpairmentchargefortheamountbywhichthecarryingamountexceedsthereportingunit’sfairvalue.SeeNote9.

Intangibleassetsareprimarilycomprisedofpermits,customercontractsandcustomerrelationships.Intangibleassetsareamortizedovertheirusefullivesinamannerthatreflectsthepatterninwhichtheeconomicbenefitoftheintangibleassetisconsumed.Intangibleassetsareassessedforimpairmentwhenatriggeringeventoccurs.

Asset Retirement Obligations

Thefairvalueofaliabilityforanassetretirementobligationisrecognizedintheperiodinwhichitisincurredifareasonableestimateoffairvaluecanbemade.Theassociatedassetretirementcostsarecapitalizedaspartofthecarryingamountoftheassetanddepreciatedoveritsremainingestimatedusefullife.AtDecember31,2018and2017,GraniteCityhadassetretirementobligationsof$7.0millionand$6.5million,respectively,primarilyrelatedtocostsassociatedwithrestoringlandtoitsoriginalstate,whichareincludedinotherdeferredcreditsandliabilitiesontheConsolidatedBalanceSheets.

Shipping and Handling Costs

ShippingandhandlingcostsareincludedincostofproductssoldandoperatingexpensesontheConsolidatedStatementsofOperationsandaregenerallypassedthroughtoourcustomers.ThePartnershiphaselectedthepracticalexpedientunderASC606,"RevenuefromContractswithCustomers",toaccountforshippingandhandlingactivitiesasapromisetofulfillthetransferofcoke.

Income Taxes

Deferredtaxassetandliabilitiesaremeasuredusingenactedtaxratesexpectedtoapplytotaxableincomeintheyearsinwhichthosedifferencesareprojectedtoberecoveredorsettled.

ThePartnershiprecognizesuncertaintaxpositionsinitsfinancialstatementswhenminimumrecognitionthresholdandmeasurementattributesaremetinaccordancewithcurrentaccountingguidance.SeeNote6.

Fair Value Measurements

ThePartnershipdeterminesfairvalueasthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Asrequired,thePartnershiputilizesvaluationtechniquesthatmaximizetheuseofobservableinputs(levels1and2)andminimizetheuseofunobservableinputs(level3)withinthefairvaluehierarchyincludedincurrentaccountingguidance.Assetsandliabilitiesareclassifiedwithinthefairvaluehierarchybasedonthelowestlevel(leastobservable)inputthatissignificanttothemeasurementinitsentirety.SeeNote13.

Recently Adopted Accounting Pronouncements

InMay2014,FinancialAccountingStandardsBoard("FASB")issuedAccountingStandardsUpdate("ASU")2014-09,“RevenuefromContractswithCustomers(Topic606),”whichsupersedestherevenuerecognitionrequirementsin“RevenueRecognition(Topic605),”andrequiresentitiestorecognizerevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangeforthosegoodsorservices.ThePartnershipadoptedthisstandardonJanuary1,2018,usingthemodifiedretrospectivemethodwithnomaterialimpactonourrevenuerecognitionmodelonanannualbasis.SeeNote14.

InNovember2016,theFASBissuedASU2016-18,“StatementofCashFlows(Topic230):Restrictedcash.”ThePartnershipretrospectivelyadoptedthisASUinthefirstquarter2018andmodifiedthecashflowpresentationtoincluderestrictedcashwithcashandcashequivalentswhenreconcilingthebeginning-of-periodandend-of-periodtotalamountsshownonthestatementofcashflows.Historicalrestrictedcashbalanceswererelatedtocashwithheldfromthe2015acquisitionofCMTtofundthecompletionofcertainexpansioncapitalimprovements,andtherelatedimmaterialimpacts

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havebeenreclassifiedonthestatementofcashflowsfortheyearsendedDecember31,2017and2016.TherestrictedcashbalancewaszeroatbothDecember31,2018andDecember31,2017.

Recently Issued Pronouncements

InFebruary2016,theFASBissuedASU2016-02,"Leases(Topic842)."ASU2016-02requiresleasestoberecognizedasassetsandliabilitiesonthebalancesheetfortherightsandobligationscreatedbyallleaseswithtermsofmorethan12months.Subsequently,theFASBhasissuedvariousASUstoprovidefurtherclarificationaroundcertainaspectsofASC842,"Leases".ThisstandardiseffectiveforannualandinterimperiodsinfiscalyearsbeginningafterDecember15,2018,withearlyadoptionpermitted.Amulti-disciplinedimplementationteamhasgainedanunderstandingoftheaccountinganddisclosureprovisionsofthestandardandanalyzedtheimpactstoourbusiness,includingthedevelopmentofnewaccountingprocessestoaccountforourleasesandsupporttherequireddisclosures.Wehaveimplementedatechnologytooltoassistwiththeaccountingandreportingrequirementsofthisstandard.Whilewearestillfinalizingtheimpactofadoptingthisstandard,weexpectthatuponadoptiontheright-of-useassetsandleaseliabilities,suchasland,theleaseofourcorporateofficespaceandcertainequipmentrentals,willincreasethereportedassetsandliabilitiesonourConsolidatedBalanceSheetsbylessthan$5million.ThePartnershipadoptedthisstandardonJanuary1,2019,byapplyingthemodifiedretrospectivetransitionapproachandelectingnottoadjustpriorcomparativeperiods.

Labor Concentrations

Wearemanagedandoperatedbytheofficersofourgeneralpartner.Ouroperatingpersonnelareemployeesofouroperatingsubsidiaries.Ouroperatingsubsidiarieshadapproximately545employeesatDecember31,2018.Approximately43percentofouroperatingsubsidiaries'employeesarerepresentedbytheUnitedSteelworkersunion.Additionally,approximately5percentarerepresentedbytheInternationalUnionofOperatingEngineers.ThelaboragreementsatKRT,LakeTerminalandHaverhillwillexpireonApril30,2019,June30,2019andNovember1,2019,respectively.Wewillnegotiatetherenewaloftheseagreementsin2019anddonotanticipateanyworkstoppages.

3. Related Party Transactions

Transactions with Affiliate

LogisticsprovidescoalhandlingandmixingservicestocertainSunCokecokemakingoperations.During2018,2017,and2016,Logisticsrecorded$13.1million,$17.3millionand$17.1million,respectively,inrevenuesderivedfromservicesprovidedtoSunCoke’scokemakingoperations.ThePartnershipalsopurchasedcoalandotherservicesfromSunCokeanditsaffiliatestotaling$4.8millionin2016.

Allocated Expenses

Wewereallocatedexpensesof$27.2million,$27.6millionand$27.9millionin2018,2017and2016,respectively,forservicesprovidedtousbySunCoke.SunCokecentrallyprovidesengineering,operations,procurementandinformationtechnologysupporttoitsfacilities.Inaddition,allocatedcostsincludelegal,accounting,tax,treasury,insurance,employeebenefitcosts,communicationsandhumanresources.CorporateallocationsarerecordedbasedupontheomnibusagreementunderwhichSunCokewillcontinuetoprovideuswithcertainsupportservices.SunCokewillchargeusforalldirectcostsandexpensesincurredonourbehalfandafeeassociatedwithsupportservicesprovidedtoouroperations.

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Inthefirsthalfof2016,SunCoketookcertainactionstosupportthePartnership'sstrategytode-leveritsbalancesheetandmaintainasolidliquidityposition.Duringthefirstquarterof2016,SunCokeprovideda"reimbursementholiday"onthe$7.0millionofcorporatecostsallocatedtothePartnershipandalsoreturnedits$1.4millionIDRcashdistributiontothePartnership("IDRgiveback"),resultingincapitalcontributionsof$8.4million.Duringthesecondquarterof2016,SunCokeprovidedthePartnershipwithdeferredpaymenttermsuntilApril2017onthereimbursementofthe$7.0millionofallocatedcorporatecoststothePartnershipandthe$1.4millionIDRcashdistribution,resultinginanoutstandingpayabletoSunCokeof$8.4millionincludedinpayabletoaffiliate,netontheConsolidatedBalanceSheetsasofDecember31,2016.During2017,thePartnershippaidtheamountsduetoSunCoke.

Omnibus Agreement

Inconnectionwiththeclosingofourinitialpublicoffering("IPO"),weenteredintoanomnibusagreementwithSunCokeandourgeneralpartnerthataddressescertainaspectsofourrelationshipwiththem,including:

BusinessOpportunities.Wehavepreferentialrightstoinvestin,acquireandconstructcokemakingfacilitiesintheU.S.andCanada.SunCokehaspreferentialrightstoallotherbusinessopportunities.

EnvironmentalIndemnity.SunCokewillindemnifyustothefullextentofanyremediationattheHaverhill,MiddletownandGraniteCitycokemakingfacilitiesarisingfromanyknownenvironmentalmatterdiscoveredandidentifiedasrequiringremediationpriortotheclosingoftheIPOandtheGraniteCityDropdown,respectively.InconnectionwiththeIPOandsubsequentassetdropdowns,SunCokehascontributed$119millioninpartialsatisfactionofthisobligationandcontributedanadditional$20millionduring2018.SunCokewillreimburseusforadditionalspendinginexcessof$139millionasrequiredforsuchknownremediationobligations.

OtherIndemnification.SunCokewillfullyindemnifyuswithrespecttoanyadditionaltaxliabilityrelatedtoperiodspriortoorinconnectionwiththeclosingoftheIPOortheGraniteCityDropdowntotheextentnotcurrentlypresentedontheConsolidatedBalanceSheets.Additionally,SunCokewilleithercureorfullyindemnifyusforlossesresultingfromanymaterialtitledefectsatthepropertiesownedbytheentitiesacquiredinconnectionwiththeclosingoftheIPOortheGraniteCityDropdowntotheextentthatthosedefectsinterferewithorcouldreasonablybeexpectedtointerferewiththeoperationsoftherelatedcokemakingfacilities.WewillindemnifySunCokeforeventsrelatingtoouroperationsexcepttotheextentthatweareentitledtoindemnificationbySunCoke.

License.SunCokehasgrantedusaroyalty-freelicensetousethename“SunCoke”andrelatedmarks.Additionally,SunCokehasgrantedusanon-exclusiverighttouseallofSunCoke'scurrentandfuturecokemakingandrelatedtechnology.Wehavenotpaidandwillnotpayaseparatelicensefeefortherightswereceiveunderthelicense.

ExpensesandReimbursement.SunCokewillcontinuetoprovideuswithcertaincorporateandotherservices,andwewillreimburseSunCokeforalldirectcostsandexpensesincurredonourbehalfandaportionofcorporateandothercostsandexpensesattributabletoouroperations.SunCokemayconsiderprovidingadditionalsupporttothePartnershipinthefuturebyprovidingacorporatecostreimbursementholiday,wherebythePartnershipwouldnotberequiredtoreimburseSunCokeforcosts.Additionally,wepaidallfeesinconnectionwithourseniornotesofferingandourrevolvingcreditfacilityandhaveagreedtopayalladditionalfeesinconnectionwithanyfuturefinancingarrangemententeredintoforthepurposeofreplacingthecreditfacilityortheseniornotes.

SolongasSunCokecontrolsourgeneralpartner,theomnibusagreementwillremaininfullforceandeffectunlessmutuallyterminatedbytheparties.IfSunCokeceasestocontrolourgeneralpartner,theomnibusagreementwillterminate,butourrightstoindemnificationanduseofSunCoke'sexistingcokemakingandrelatedtechnologywillsurvive.Theomnibusagreementcanbeamendedbywrittenagreementofallpartiestotheagreement,butwemaynotagreetoanyamendmentthatwould,inthereasonablediscretionofourgeneralpartner,beadverseinanymaterialrespecttotheholdersofourcommonunitswithoutpriorapprovaloftheconflictscommittee.

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4. Customer Concentrations

In2018,thePartnershipsoldapproximately2.2milliontonsofcokeunderlong-termtake-or-paycontractstoitsthreeprimarycustomers:AKSteelCorporation("AKSteel"),ArcelorMittalUSALLCand/oritsaffiliates(“AMUSA”)andUnitedStatesSteelCorporation("U.S.Steel").

ThetablebelowshowssalestothePartnership'ssignificantcustomers:

Years ended December 31,

2018 2017 2016

Sales and otheroperatingrevenue

Percent ofPartnership sales

and otheroperating revenue

Sales and otheroperatingrevenue

Percent ofPartnership sales

and otheroperating revenue

Sales and otheroperatingrevenue

Percent ofPartnership sales

and otheroperating revenue

(Dollars in millions)AMUSA(1) $ 171.9 19.3% $ 182.4 21.6% $ 142.5 18.3%AKSteel(1) $ 377.9 42.4% $ 331.3 39.2% $ 350.0 44.9%U.S.Steel(2) $ 206.8 23.2% $ 214.1 25.3% $ 185.3 23.8%

(1)RepresentsrevenuesincludedinourDomesticCokesegment.

(2)RepresentsrevenuesincludedinourDomesticCokeandLogisticssegments.

ThePartnershipgenerallydoesnotrequireanycollateralwithrespecttoitsreceivables.AtDecember31,2018,thePartnership’sreceivablesbalanceswereprimarilyduefromAMUSA,AKSteelandU.S.Steel.Asaresult,thePartnershipexperiencesconcentrationsofcreditriskinitsreceivableswiththesethreecustomers.Theseconcentrationsofcreditriskmaybeaffectedbychangesineconomicorotherconditionsaffectingthesteelindustry.

ThetablebelowshowsreceivablesduefromthePartnership'ssignificantcustomers:

December 31,

2018 2017 (Dollars in millions)AMUSA $ 8.4 $ 7.0AKSteel $ 25.3 $ 13.2U.S.Steel $ 5.2 $ 5.6

OurlogisticsbusinessprovidescoalhandlingandstorageservicestoMurrayEnergyCorporation,Inc.("Murray")andForesightEnergyLLC("Foresight"),whoarethetwoprimarycustomersintheLogisticssegment.

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ThetablebelowshowssalestoMurrayandForesight:

Years ended December 31,

2018 2017 2016 (Dollars in millions)Salesandotheroperatingrevenue $ 62.5 $ 57.8 $ 53.5PercentofPartnershipsalesandotheroperatingrevenue 7.0% 6.8% 6.9%PercentofLogisticssegmentsalesandotheroperatingrevenue,includingintersegmentsales 51.1% 51.4% 51.4%

ThetablebelowshowsreceivablesduefromMurrayandForesight:

December 31,

2018 2017 (Dollars in millions)

MurrayandForesight $ 3.2 $ 9.7

5. Net Income Per Unit and Cash Distribution

Cash Distributions

ThePartnershipdistributesavailablecashonoraboutthefirstdayofeachofMarch,June,SeptemberandDecembertotheholdersofrecordofcommonunitsonoraboutthe15thdayofeachsuchmonth.Availablecashisgenerallyallcashonhand,lessreservesestablishedbythegeneralpartnerinitsdiscretion.OurgeneralpartnerhasbroaddiscretiontoestablishcashreservesthatitdeterminesarenecessaryorappropriatefortheproperconductofPartnership’sbusiness.

ThePartnershipintendstomakequarterlydistributions,totheextentthereissufficientcashfromoperationsafterestablishmentofcashreservesandpaymentoffeesandexpenses,includingpaymentstothegeneralpartner.Ourgeneralpartner'sboardofdirectorswillevaluatetheappropriatelevelofcashdistributionsonaquarterlybasis.ThereisnoguaranteethatthePartnershipwillpayaquarterlydistributiononthecommonunitsinanyquarter.Additionally,thePartnershipwillbeprohibitedfrommakinganydistributionstounitholdersifitwouldcauseaneventofdefault,oraneventofdefaultexists,underthecreditfacilityortheseniornotes.SeeNote11.

Ingeneral,thePartnershippayscashdistributionseachquartertoourunitholdersandourgeneralpartneraccordingtothefollowingpercentageallocations:

Total Quarterly Distribution Per Unit Amount

Marginal Percentage Interest in Distributions

Unitholders General PartnerFirstTargetDistribution upto$0.412500 98% 2%SecondTargetDistribution above$0.474375 upto$0.515625 85% 15%ThirdTargetDistribution above$0.515625 upto$0.618750 75% 25%Thereafter above$0.618750 50% 50%

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Ourdistributionsaredeclaredsubsequenttoquarterend.Thetablebelowrepresentstotalcashdistributionsapplicabletotheperiodinwhichthedistributionswereearned:

Earned in Quarter Ended Total Quarterly

Distribution Per Unit

Total Cash Distribution,including general partner's

IDRs Date of Distribution Unitholders Record Date

(Dollars in millions) December31,2017 $ 0.5940 $ 29.5 March1,2018 February15,2018March31,2018 $ 0.4000 $ 18.9 June1,2018 May15,2018June30,2018 $ 0.4000 $ 18.9 September4,2018 August15,2018September30,2018 $ 0.4000 $ 18.9 December3,2018 November15,2018December31,2018(1) $ 0.4000 $ 18.9 March1,2019 February15,2019

(1) OnJanuary28,2019,ourBoardofDirectorsdeclaredacashdistributionof$0.4000perunit.ThedistributionwillbepaidonMarch1,2019,tounitholdersofrecordonFebruary15,2019.

Allocation of Net Income

Ourpartnershipagreementcontainsprovisionsfortheallocationofnetincometotheunitholdersandthegeneralpartner.Forpurposesofmaintainingpartnercapitalaccounts,thepartnershipagreementspecifiesthatitemsofincomeandlossshallbeallocatedamongthepartnersinaccordancewiththeirrespectivepercentageinterest.Normalallocationsaccordingtopercentageinterestsaremadeaftergivingeffect,ifany,topriorityincomeallocationsinanamountequaltoincentivecashdistributionsallocated100percenttothegeneralpartner.

Thecalculationofnetincomeallocatedtothegeneralandlimitedpartnerswasasfollows:

Years Ended December 31,

2018 2017 2016 (Dollars in millions)Netincome(loss)attributabletoSunCokeEnergyPartnersL.P. $ 57.5 $ (18.1) $ 119.1Less:ExpenseallocatedtoCommon-SunCoke(1) — — (7.0)Netincome(loss)attributabletopartners 57.5 (18.1) 126.1

Generalpartner'sincentivedistributionrights — 7.5 21.0Netincome(loss)attributabletopartners,excludingincentivedistributionrights 57.5 (25.6) 105.1Generalpartner'sownershipinterest 2.0% 2.0% 2.0%

Generalpartner'sallocatedinterestinnetincome(loss)(2) 1.2 (0.4) 2.6Generalpartner'sincentivedistributionrights — 7.5 21.0

Total general partner's interest in net income $ 1.2 $ 7.1 $ 23.6

Common-publicunitholder'sinterestinnetincome(loss) $ 21.6 $ (13.5) $ 46.1Common-SunCokeinterestinnetincome(loss):

Common-SunCokeinterestinnetincome(loss) 34.7 (11.7) 56.4ExpensesallocatedtoCommon-SunCoke(1) — — (7.0)

Totalcommon-SunCokeinterestinnetincome(loss) 34.7 (11.7) 49.4

Total limited partners' interest in net income (loss) $ 56.3 $ (25.2) $ 95.5

(1) Pertheamendedpartnershipagreement,expensespaidonbehalfofthePartnershiparetobeallocatedentirelytothepartnerwhopaidthem.Duringthefirstquarterof2016,SunCokepaid$7.0millionofallocatedcorporatecostsonbehalfofthePartnershipandwillnotseekreimbursementforthosecosts.SeeNote3.TheseexpensesarerecordedasadirectreductiontoSunCoke'sinterestinnetincomefortheyearendedDecember31,2016.

(2) Ournetincomeisallocatedtothegeneralpartnerandlimitedpartnersinaccordancewiththeirrespectivepartnershippercentages,aftergivingeffecttopriorityincomeallocationsforincentivedistributions,ifany,toourgeneralpartner,pursuanttoourpartnershipagreement.Thetableaboverepresentsasimplifiedpresentationofthecalculation,andtherefore,amountsmaynotrecalculateprecisely.

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Earnings Per Unit

Ournetincomeisallocatedtothegeneralpartnerandlimitedpartnersinaccordancewiththeirrespectivepartnershippercentages,aftergivingeffecttopriorityincomeallocationsforincentivedistributions,ifany,toourgeneralpartner,pursuanttoourpartnershipagreement.Distributionslessthanorgreaterthanearningsareallocatedinaccordancewithourpartnershipagreement.Paymentsmadetoourunitholdersaredeterminedinrelationtoactualdistributionsdeclaredandarenotbasedonthenetincomeallocationsusedinthecalculationofnetincomeperunit.

Inadditiontothecommonunits,wehavealsoIDRsasparticipatingsecuritiesandusethetwo-classmethodwhencalculatingthenetincomeperunitapplicabletolimitedpartners,whichisbasedontheweighted-averagenumberofcommonunitsoutstandingduringtheperiod.Basicanddilutednetincomeperunitapplicabletolimitedpartnersarethesamebecausewedonothaveanypotentiallydilutiveunitsoutstanding.

Thecalculationofearningsperunitisasfollows:

Years Ended December 31,

2018 2017 2016 (Dollars in millions, except per unit amounts)Netincome(loss)attributabletoSunCokeEnergyPartnersL.P. $ 57.5 $ (18.1) $ 119.1Less:ExpenseallocatedtoCommon-SunCoke(1) — — (7.0)Netincome(loss)attributabletoallpartners 57.5 (18.1) 126.1

Generalpartner'sdistributions(includingzero,$5.6millionand$5.6millionofcashincentivedistributionrightsdeclared,respectively) 1.6 8.0 8.0

Limitedpartners'distributionsoncommonunits 73.8 109.8 109.8Distributions(greaterthan)lessthanearnings (17.9) (135.9) 8.3General partner's earnings:

Distributions(includingzero,$5.6millionand$5.6millionofcashincentivedistributionrightsdeclared,respectively) 1.6 8.0 8.0

Allocationofdistributions(greaterthan)lessthanearnings (0.4) (0.9) 15.6Totalgeneralpartner'searnings 1.2 7.1 23.6Limited partners' earnings on common units:

Distributions 73.8 109.8 109.8ExpensesallocatedtoCommon-SunCoke — — (7.0)Allocationofdistributions(greaterthan)lessthanearnings (17.5) (135.0) (7.3)

Totallimitedpartners'earningsoncommonunits 56.3 (25.2) 95.5Weighted average limited partner units outstanding:

Common-basicanddiluted 46.2 46.2 46.2Net income per limited partner unit:

Common-basicanddiluted $ 1.22 $ (0.54) $ 2.07

(1) Pertheamendedpartnershipagreement,expensespaidonbehalfofthePartnershiparetobeallocatedentirelytothepartnerwhopaidthem.Duringthefirstquarterof2016,SunCokepaid$7.0millionofallocatedcorporatecostsonbehalfofthePartnershipandwillnotseekreimbursementforthosecosts.SeeNote3.TheseexpensesarerecordedasadirectreductiontoSunCoke'sinterestinnetincomefortheyearendedDecember31,2016.

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Unit Activity

UnitactivityfortheyearsendedDecember31,2018,2017and2016isasfollows:

Common - Public Common - SunCoke Total Common Subordinated -

SunCoke

At December 31, 2015 20,787,744 9,705,999 30,493,743 15,709,697Unitsissuedtodirectors 12,437 — 12,437 —Conversionofsubordinateunitstocommonunits(1) — 15,709,697 15,709,697 (15,709,697)At December 31, 2016 20,800,181 25,415,696 46,215,877 —Unitsissuedtodirectors 11,271 — 11,271 —CommonunitsacquiredbySunCoke (2,853,032) 2,853,032 — —At December 31, 2017 17,958,420 28,268,728 46,227,148 —CommonUnitsacquiredbySunCoke (231,171) 231,171 — —At December 31, 2018 17,727,249 28,499,899 46,227,148 —

(1) Uponpaymentofthecashdistributionforthefourthquarterof2015,thefinancialrequirementsfortheconversionofallsubordinatedunitsweresatisfied.Asaresult,the15,709,697subordinatedunitsconvertedintocommonunitsonaone-for-onebasisin2016.

6. Income Taxes

ThePartnershipisalimitedpartnershipfortaxpurposes,andassuchisgenerallynotsubjecttofederalorstateincometax.

InJanuary2017,theIRSissuedfinalregulations(the"FinalRegulations")undersection7704(d)(1)(E)oftheInternalRevenueCode,whichexcludedcokemakingasaqualifyingincomeactivityforpurposesofthequalifyingincomeexceptionforpubliclytradedpartnerships.Subsequenttothe10-yeartransitionperiodundertheFinalRegulations,certaincokemakingentitiesinthePartnershipwillbecometaxableascorporations.

ThePartnershipalsoholdsaninterestinGatewayCogenerationCompany,LLC,whichissubjecttoincometaxesforbothfederalandstatetaxpurposes.InadditiontoGraniteCity,theMiddletownoperationsinthePartnershiparesubjecttostateandlocalincometaxes.

Thecomponentsofincometax(benefit)expenseareasfollows:

Years Ended December 31,

2018 2017 2016

(Dollars in millions)Currenttaxexpense:

U.S.federal $ 0.7 $ 1.7 $ 2.1U.S.stateandlocal 1.2 0.9 —

Totalcurrenttaxexpense 1.9 2.6 2.1

Deferredtax(benefit)expense: U.S.federal (3.4) 72.5 (1.1)U.S.stateandlocal (0.1) 8.8 1.0

Totaldeferredtax(benefit)expense (3.5) 81.3 (0.1)Total $ (1.6) $ 83.9 $ 2.0

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ThereconciliationofPartnershipincometax(benefit)expenseattheU.S.statutoryrateisasfollows:

Years Ended December 31,

2018 2017 2016

(Dollars in millions)IncometaxexpenseatU.S.statutoryrate $ 12.1 21.0% $ 23.3 35.0% $ 43.2 35.0%(Reduction)increaseinincometaxesresultingfrom:

ImpactofFinalRegulations(1) (3.6) (6.2)% 148.6 223.5% — —%ImpactofTaxLegislation(2) — —% (68.8) (103.1)% — —%Partnershipincomenotsubjecttotax (11.2) (19.4)% (21.8) (32.8)% (42.2) (34.1)%StateandlocaltaxforMiddletownandGraniteCityoperations 1.1 1.8% 2.6 3.7% 1.2 0.9%Other — —% — —% (0.2) (0.2)%

Totaltaxprovision $ (1.6) (2.8)% $ 83.9 126.3% $ 2.0 1.6%

(1) AsaresultoftheFinalRegulationsdiscussedabove,thePartnershiprecordedadeferredincometaxbenefitof$3.6millionand$148.6millionrelatedtoitschangesinitsprojecteddeferredtaxliabilityassociatedwithprojectedbooktotaxdifferencesattheendofthe10-yeartransitionperiodin2018and2017,respectively.Thebenefitrecordedin2018wasdrivenbycurrentperiodadditionsandchangesinestimatedusefullivesofcertainassets.

(2) OnDecember22,2017,theTaxLegislationwasenacted.TheTaxLegislationsignificantlyrevisedtheU.S.corporateincometaxstructure,includingloweringcorporateincometaxrates.Asaresult,thePartnershiprecordedanincometaxbenefitof$68.8millionfortheremeasurementofitsU.S.deferredincometaxliabilities,reversingaportionofthedeferredincometaxexpenserecordedfromtheFinalRegulationsinthefirstquarterof2017.

Thetemporarydifferencesthatcomprisethenetdeferredincometaxassetsandliabilitiesareasfollows:

December 31,

2018 2017

(Dollars in millions)Deferredtaxassets $ — $ —Deferredtaxliabilities:

Properties,plantsandequipment (114.7) (118.4)Otherliabilities (1.0) (0.8)

Totaldeferredtaxliabilities (115.7) (119.2)Netdeferredtaxliability $ (115.7) $ (119.2)

ThePartnershipiscurrentlyopentoexaminationunderstatutebytheIRSforthetaxyearsendedDecember31,2015andforward.Stateandlocalincometaxreturnsaregenerallysubjecttoexaminationforaperiodofthreeyearsafterfilingoftherespectivereturns.Pursuanttotheomnibusagreement,SunCokewillfullyindemnifyuswithrespecttoanytaxliabilityarisingpriortoorinconnectionwiththeclosingofourIPO.TherearenouncertaintaxpositionsrecordedasofDecember31,2018or2017,andtherewasnoassociatedinterestorpenaltiesrecognizedfortheyearsendedDecember31,2018,2017or2016.ThePartnershipdoesnotexpectthatanyunrecognizedtaxbenefitspertainingtoincometaxmatterswillberequiredinthenexttwelvemonths.

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7. Inventories

ThePartnership’sinventoryconsistsofmetallurgicalcoal,whichistheprincipalrawmaterialforthePartnership’scokemakingoperations;coke,whichisthefinishedgoodssoldbythePartnershiptoitscustomers;andmaterials,suppliesandother.

Thecomponentsofinventorieswereasfollows:

December 31,

2018 2017 (Dollars in millions)Coal $ 40.3 $ 41.0Coke 6.4 9.5Materials,supplies,andother 32.3 28.9Totalinventories $ 79.0 $ 79.4

8. Properties, Plants, and Equipment, Net

Thecomponentsofnetproperties,plantsandequipmentwereasfollows:

December 31,

2018 2017 (Dollars in millions)Cokeandenergyplant,machineryandequipment(1) $ 1,367.3 $ 1,339.9Logisticsplant,machineryandequipment 210.8 208.6Landandlandimprovements 96.9 95.9Construction-in-progress 63.6 38.4Other 6.4 5.9Grossinvestment,atcost $ 1,745.0 $ 1,688.7

Less:accumulateddepreciation(1) (499.9) (423.1)Totalproperties,plantandequipment,net $ 1,245.1 $ 1,265.6

(1) Includesassets,consistingmainlyofcokeandenergyplant,machineryandequipment,withagrossinvestmenttotaling$877.1millionand$835.0millionandaccumulateddepreciationof$231.8millionand$196.6millionatDecember31,2018and2017,respectively,whicharesubjecttolong-termcontractstosellcokeandaredeemedtocontainoperatingleases.UponadoptionofASC842,"Leases",in2019,thesecontractswillnolongerbedeemedtocontainoperatingleases.

9. Goodwill and Other Intangible Assets

GoodwillallocatedtothePartnership'sreportablesegmentswas$73.5millionatDecember31,2018and2017,respectively.TherewerenochangesinthecarryingamountofgoodwillduringtheyearsendedDecember31,2018and2017:

Logistics (Dollars in millions)

BalanceatDecember31,2018and2017 $ 73.5

ThePartnershipperformeditsannualgoodwillimpairmenttestasofOctober1,2018,withnoindicationofimpairment.ThefairvalueoftheLogisticsreportingunit,whichwasdeterminedbasedonadiscountedcashflowanalysis,exceededcarryingvalueofthereportingunitbyapproximately30percent.Asignificantportionofourlogisticsbusinessholdslong-term,take-or-paycontractswithMurrayandForesight.Keyassumptionsinourgoodwillimpairmenttestincludecontinuedcustomerperformanceagainstlong-term,take-or-paycontracts,renewaloffuturelong-term,take-or-paycontracts,incrementalmerchantbusinessanda14percentdiscountraterepresentingtheestimatedweightedaveragecostofcapitalforthisbusinessline.Theuseofdifferentassumptions,estimatesorjudgments,suchastheestimatedfuturecashflowsofLogisticsandthediscountrateusedtodiscountsuchcashflows,couldsignificantlyimpacttheestimatedfairvalueofareportingunit,andtherefore,impacttheexcessfairvalueabovecarryingvalueofthereportingunit.A100basispointchangeinthediscountratewouldnothavereducedthefairvalueofthereportingunitbelowitscarryingvalue.

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Thefollowingtablesummarizesthecomponentsofgrossandnetintangibleassetbalances:

December 31, 2018 December 31, 2017

Weighted -Average

RemainingAmortization

Years Gross Carrying

Amount AccumulatedAmortization Net

Gross CarryingAmount

AccumulatedAmortization Net

(Dollars in millions)Customercontracts 4 $ 24.0 $ 11.0 $ 13.0 $ 24.0 $ 7.8 $ 16.2Customerrelationships 13 28.7 7.5 21.2 28.7 5.7 23.0Permits 24 139.0 17.4 121.6 139.0 12.2 126.8Tradename - 1.2 1.2 — 1.2 1.0 0.2

Total $ 192.9 $ 37.1 $ 155.8 $ 192.9 $ 26.7 $ 166.2

ThepermitsaboverepresenttheenvironmentalandoperationalpermitsrequiredtooperateacoalexportterminalinaccordancewiththeUnitedStatesEnvironmentalProtectionAgencyandotherregulatorybodies.Intangibleassetsareamortizedovertheirusefullivesinamannerthatreflectsthepatterninwhichtheeconomicbenefitoftheassetisconsumed.Thepermits’usefulliveswereestimatedtobe27yearsatacquisitionbasedontheexpectedusefullifeofthesignificantoperatingequipmentatthefacility.Wehavehistoricalexperienceofrenewingandextendingsimilararrangementsatourotherfacilitiesandintendtocontinuetorenewourpermitsastheycomeupforrenewalfortheforeseeablefuture.ThepermitswererenewedregularlypriortoouracquisitionofCMT.Thesepermitshaveanaverageremainingrenewaltermofapproximately2.4years.

Totalamortizationexpenseforintangibleassetssubjecttoamortizationwas$10.4million,$10.5millionand$10.7millionfortheyearsendedDecember31,2018,2017and2016,respectively.Basedonthecarryingvalueoffinite-livedintangibleassetsasofDecember31,2018,weestimateamortizationexpenseforeachofthenextfiveyearsasfollows:

(Dollars in millions)2019 10.32020 10.32021 10.32022 10.32023 7.0Thereafter 107.6

Total $ 155.8

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10. Retirement and Other Post-Employment Benefits Plans

CertainemployeesofthePartnership'soperatingsubsidiariesparticipateindefinedcontributionandpostretirementhealthcareandlifeinsuranceplanssponsoredbySunCoke.ThePartnership’scontributionstothedefinedcontributionplans,whichareprincipallybasedonitsallocableportionofSunCoke’spretaxincomeandtheaggregatecompensationlevelsofparticipatingemployees,arechargedagainstincomeasincurred.Thesechargesamountedto$4.1million,$3.9millionand$3.4millionin2018,2017and2016,respectively,andarereflectedincostofproductssoldandoperatingexpensesintheConsolidatedStatementsofOperations.ThepostretirementbenefitplansareunfundedandthecostsarebornebythePartnership.TheexpenseallocatedtothePartnershipforotherpostretirementbenefitplanswasimmaterialforallperiodspresented.

11. Debt and Financing Obligation

Totaldebtandfinancingobligationconsistedofthefollowing:

December 31,

2018 2017 (Dollars in millions)

7.500percentseniornotes,due2025("PartnershipNotes") $ 700.0 $ 700.0Revolvingcreditfacility,due2022("PartnershipRevolver") 105.0 130.05.82percentfinancingobligation,due2021("PartnershipFinancingObligation") 10.1 12.7

Totalborrowings $ 815.1 $ 842.7Discount (5.4) (5.9)Debtissuancecosts (13.6) (15.8)

Totaldebtandfinancingobligation $ 796.1 $ 821.0Less:currentportionoflong-termdebtandfinancingobligation 2.8 2.6

Totallong-termdebtandfinancingobligation $ 793.3 $ 818.4

Partnership Notes

ThePartnershipNotesaretheseniorunsecuredobligationsofthePartnership,andareguaranteedonaseniorunsecuredbasisbyeachofthePartnership’sexistingandcertainfuturesubsidiaries.InterestonthePartnershipNotesispayablesemi-annuallyincashinarrearsonJune15andDecember15ofeachyear,whichcommencedonDecember15,2017.

ThePartnershipmayredeemsomeorallofthePartnershipNotesatanytimeonorafterJune15,2020atspecifiedredemptionpricesplusaccruedandunpaidinterest,ifany,totheredemptiondate.BeforeJune15,2020,andfollowingcertainequityofferings,thePartnershipalsomayredeemupto35percentofthePartnershipNotesatapriceequalto107.5percentoftheprincipalamount,plusaccruedandunpaidinterest,ifany,totheredemptiondate.Inaddition,atanytimepriortoJune15,2020,thePartnershipmayredeemsomeorallofthePartnershipNotesatapriceequalto100percentoftheprincipalamount,plusaccruedandunpaidinterest,ifany,totheredemptiondate,plusa“make-whole”premium.

ThePartnershipisobligatedtooffertopurchasealloraportionofthePartnershipNotesatapriceof(a)101percentoftheirprincipalamount,togetherwithaccruedandunpaidinterest,ifany,tothedateofpurchase,upontheoccurrenceofcertainchangeofcontroleventsand(b)100percentoftheirprincipalamount,togetherwithaccruedandunpaidinterest,ifany,tothedateofpurchase,upontheoccurrenceofcertainassetdispositions.TheserestrictionsandprohibitionsaresubjecttocertainqualificationsandexceptionssetforthintheIndenture,includingwithoutlimitation,reinvestmentrightswithrespecttotheproceedsofassetdispositions.

ThePartnershipNotescontainscovenantsthat,amongotherthings,limitthePartnership’sabilityandtheabilityofcertainofthePartnership’ssubsidiariesto(i)incurindebtedness,(ii)paydividendsormakeotherdistributions,(ii)prepay,redeemorrepurchasecertainsubordinateddebt,(iv)makeloansandinvestments,(v)sellassets,(vi)incurliens,(vii)enterintotransactionswithaffiliates,(viii)enterintoagreementsrestrictingtheabilityofsubsidiariestopaydividendsand(ix)consolidateormerge.

Partnership Revolver

TheproceedsofanyborrowingsmadeunderthePartnershipRevolvercanbeusedtofinanceworkingcapitalneeds,acquisitions,capitalexpendituresandforothergeneralcorporatepurposes.ThePartnershipRevolverprovidestotalaggregate

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commitmentsfromlendersof$285.0millionandupto$200.0millionuncommittedincrementalrevolvingcapacity.TheobligationsunderthePartnershipRevolverareguaranteedbythePartnership’ssubsidiariesandsecuredbyliensonsubstantiallyallofthePartnership’sandtheguarantors’assets.

AsofDecember31,2018,thePartnershiphad$1.9millionoflettersofcreditoutstandingandanoutstandingbalanceof$105.0million,leaving$178.1millionavailable.CommitmentfeesarebasedontheunusedportionofthePartnershipRevolveratarateof0.4percent.

ThePartnershipRevolverborrowingsbearinterestatavariablerateofLIBORplus250basispointsoranalternativebaserateplus150basispoints.ThespreadissubjecttochangebasedonthePartnership'sconsolidatedleverageratio,asdefinedinthecreditagreement.Theweighted-averageinterestrateforborrowingsunderthePartnershipRevolverwas4.8percent,3.8percent,3.3percentduring2018,2017and2016,respectively

Partnership Financing Obligation

ThePartnership'ssale-leasebackarrangementofcertaincokeandlogisticsequipmenthasaninitialleaseperiodof60monthsandanearlybuyoutoptionafter48monthstopurchasetheequipmentat34.5percentoftheoriginalleaseequipmentcost.Thearrangementisaccountedforasafinancingtransaction,resultinginafinancingobligationontheConsolidatedBalanceSheets.ThefinancingobligationisguaranteedbythePartnership.

CovenantsUnderthetermsofthePartnership'screditagreement,thePartnershipissubjecttoamaximumconsolidatedleverageratioof4.5:1.0priortoJune30,

2020and4.0:1.0afterJune30,2020andaminimumconsolidatedinterestcoverageratioof2.5:1.0.ThePartnership'screditagreementcontainsothercovenantsandeventsofdefaultthatarecustomaryforsimilaragreementsandmaylimitourabilitytotakevariousactionsincludingourabilitytopayadividendorrepurchaseourstock.

Ifwefailtoperformourobligationsundertheseandothercovenants,thelenders'creditcommitmentcouldbeterminatedandanyoutstandingborrowings,togetherwithaccruedinterest,underthePartnershipRevolvercouldbedeclaredimmediatelydueandpayable.ThePartnershiphaveacrossdefaultprovisionthatappliestoourindebtednesshavingaprincipalamountinexcessof$35.0million.

AsofDecember31,2018,thePartnershipwasincompliancewithalldebtcovenants.Wedonotanticipateviolationofthesecovenantsnordoweanticipatethatanyofthesecovenantswillrestrictouroperationsorourabilitytoobtainadditionalfinancing.

Maturities

AsofDecember31,2018,thecombinedaggregateamountofmaturitiesforlong-termborrowingsforeachofthenextfiveyearsisasfollows:

(Dollars in millions)2019 $ 2.82020(1) 7.32021 —2022 105.02023 —2024-Thereafter 700.0

Total $ 815.1

(1) AssumesthePartnershipFinancingObligationearlybuyoutoptionisexercisedin2020.

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12. Commitments and Contingent Liabilities

Lease Obligations

ThePartnership,aslessee,hasnoncancelableoperatingleasesforland,officespace,equipmentandrailcars.Theaggregateamountoffutureminimumannualrentalsapplicabletononcancelableoperatingleasesisasfollows:

Minimum Rental

PaymentsYear ending December 31: (Dollars in millions)2019 $ 1.12020 0.22021 0.12022 0.12023 —2024-Thereafter —Total $ 1.5

Totalrentalexpenseforalloperatingleaseswas$5.7million,$4.1millionand$4.9millionin2018,2017and2016,respectively.

Legal Matters

TheEPAissuedNoticesofViolations(“NOVs”)fortheHaverhillandGraniteCitycokemakingfacilitieswhichstemmedfromallegedviolationsofairoperatingpermitsforthesefacilities.WeareworkinginacooperativemannerwiththeEPA,theOhioEnvironmentalProtectionAgencyandtheIllinoisEnvironmentalProtectionAgencytoaddresstheallegations,andhaveenteredintoaconsentdegreeinfederaldistrictcourtwiththeseparties.Theconsentdecreeincludesa$2.2millioncivilpenaltypaymentthatwaspaidbySunCokein2014,aswellascapitalprojectsunderwaytoimprovethereliabilityoftheenergyrecoverysystemsandenhanceenvironmentalperformanceattheHaverhillandGraniteCitycokemakingfacilities.Inthethirdquarterof2018,theCourtenteredanamendmenttotheconsentdecreewhichprovidestheHaverhillandGraniteCityfacilitieswithadditionaltimetoperformnecessarymaintenanceonthefluegasdesulfurizationsystemswithoutexceedingconsentdecreelimits.Theemissionsassociatedwiththismaintenancewillbemitigatedinaccordancewiththeamendment,andtherearenocivilpenaltypaymentsassociatedwiththisamendment.TheprojectatGraniteCitywasduetobecompletedinFebruary2019,butthePartnershipnowexpectstocompletetheprojectinJuly2019andisindiscussionswiththegovernmententitiesregarding,amongotherthings,thetimingthereof.

Weretainedanaggregateof$119millioninproceedsfromourIPOandsubsequentdropdownstocomplywiththeexpectedtermsofaconsentdecreeattheHaverhillandGraniteCitycokemakingoperations.SunCokeandthePartnershipanticipatespendingapproximately$150milliontocomplywiththeseenvironmentalremediationprojects.Pursuanttotheomnibusagreement,anyamountsthatwespendontheseprojectsinexcessofthe$119millionwillbereimbursedbySunCoke.Priortoourformation,SunCokespentapproximately$7millionrelatedtotheseprojects.ThePartnershiphasspentapproximately$131milliontodateandexpectstospendtheremainingcapitalthroughthefirsthalfof2019.SunCokehasreimbursedthePartnershipapproximately$20millionfortheestimatedadditionalspendingbeyondwhathaspreviouslybeenfunded.

ThePartnershipisapartytocertainotherpendingandthreatenedclaims,includingmattersrelatedtocommercialandtaxdisputes,productliability,employmentclaims,personalinjuryclaims,premises-liabilityclaims,allegationsofexposurestotoxicsubstancesandgeneralenvironmentalclaims.Althoughtheultimateoutcomeoftheseclaimscannotbeascertainedatthistime,itisreasonablypossiblethatsomeportionoftheseclaimscouldberesolvedunfavorablytothePartnership.ManagementofthePartnershipbelievesthatanyliabilitywhichmayarisefromclaimswouldnothaveamaterialadverseimpactonourconsolidatedfinancialstatements.

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13. Fair Value Measurements

ThePartnershipmeasurescertainfinancialandnon-financialassetsandliabilitiesatfairvalueonarecurringbasis.Fairvalueisdefinedasthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityintheprincipalormostadvantageousmarketinanorderlytransactionbetweenmarketparticipantsonthemeasurementdate.Fairvaluedisclosuresarereflectedinathree-levelhierarchy,maximizingtheuseofobservableinputsandminimizingtheuseofunobservableinputs.

Thevaluationhierarchyisbaseduponthetransparencyofinputstothevaluationofanassetorliabilityonthemeasurementdate.Thethreelevelsaredefinedasfollows:

• Level1—inputstothevaluationmethodologyarequotedprices(unadjusted)foranidenticalassetorliabilityinanactivemarket.

• Level2—inputstothevaluationmethodologyincludequotedpricesforasimilarassetorliabilityinanactivemarketormodel-derivedvaluationsinwhichallsignificantinputsareobservableforsubstantiallythefulltermoftheassetorliability.

• Level3—inputstothevaluationmethodologyareunobservableandsignificanttothefairvaluemeasurementoftheassetorliability.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Certainassetsandliabilitiesaremeasuredatfairvalueonarecurringbasis.ThePartnership’scashequivalentsaremeasuredatfairvaluebasedonquotedpricesinactivemarketsforidenticalassets.TheseinputsareclassifiedasLevel1withinthevaluationhierarchy.ThePartnershipdidnothaveanycashequivalentsatDecember31,2018andcashequivalentswereimmaterialatDecember31,2017.

Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certainassetsandliabilitiesaremeasuredatfairvalueonanonrecurringbasis;thatis,theassetsandliabilitiesarenotmeasuredatfairvalueonanongoingbasis,butaresubjecttofairvalueadjustmentsincertaincircumstances(e.g.,whenthereisevidenceofimpairment).AtDecember31,2018,nomaterialfairvalueadjustmentsorfairvaluemeasurementswererequiredforthesenon-financialassetsorliabilities.

Convent Marine Terminal Contingent Consideration

InconnectionwiththeCMTacquisition,thePartnershipenteredintoacontingentconsiderationarrangementthatrunsthrough2022andrequiresthePartnershiptomakefuturepaymentstoTheClineGroupbasedonfuturevolumeoveraspecifiedthreshold,price,andcontractrenewals.Thefairvalueofthecontingentconsiderationwasestimatedbasedonaprobability-weightedanalysisusingsignificantinputsthatarenotobservableinthemarket,orLevel3inputs.KeyassumptionsincludedprobabilityadjustedlevelsofcoalhandlingservicesprovidedbyCMT,anticipatedpricepertononfuturesalesandprobabilityofcontractrenewal,includinglengthoffuturecontracts,volumecommitment,andanticipatedpriceperton.Thefairvalueofthecontingentconsiderationwas$5.0millionand$2.5millionatDecember31,2018and2017,respectively,andwasprimarilyincludedinotherdeferredchargesandliabilitiesontheConsolidatedBalanceSheets.

During2018,CMTachievedrecordvolumesandthePartnershipincreasedCMT’sthroughputvolumeprojectionsinfutureperiodsforcertaincustomersduetofavorablecoalprices,whichareexpectedtoincreaseexportvolumethroughCMT.Thecombinedimpactofthestrong2018volumesandimprovedvolumeprojectionsresultedinanincreasetothefairvalueofthePartnership'scontingentconsiderationbalanceof$2.5million,whichwasrecordedasachargetocostsofproductssoldandoperatingexpensesintheConsolidatedStatementsofOperationsduring2018.

During2017and2016,asaresultofadverseminingconditionsfacedbyoneofourthermalcoalcustomersaswellasfluctuatingexportcoalpricing,thePartnershiploweredCMT'sthroughputvolume,whichreducedthePartnership'scontingentconsiderationliabilitybalanceby$1.7millionand$6.4million,respectively.Additionally,duringMarch2016,asapartofcommercialactivitiessubsequenttotheacquisitionofCMT,thePartnershipandTheClineGroupsignedanamendedagreement,whichmodifiedthecontingentconsiderationtermsbyincreasingthevolumethresholdrequiredforthePartnershiptomakepaymentstoTheClineGroupinexchangeforfuturepricingmodifications,resultingina$3.7millionreductiontothecontingentconsiderationliability.ThesedecreasesinfairvaluewererecordedasreductionstocostsofproductssoldandoperatingexpensesontheConsolidatedStatementsofIncomeduring2017and2016.

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Certain Financial Assets and Liabilities not Measured at Fair Value

AtDecember31,2018and2017,theestimatedfairvalueofthePartnership’slong-termdebtwasestimatedtobe$778.9millionand$875.0million,respectively,comparedtoacarryingamountof$815.1millionand$842.7million,respectively.ThefairvaluewasestimatedbymanagementbaseduponestimatesofdebtpricingprovidedbyfinancialinstitutionsandareconsideredLevel2inputs.

14. Revenue from Contracts with Customers

Cokemaking

Substantiallyallourcokesalesaremadepursuanttolong-term,take-or-payagreementswithAMUSA,AKSteelandU.S.Steel,whoarethreeofthelargestblastfurnacesteelmakersinNorthAmerica.Thetake-or-payprovisionsofouragreementsrequireustodeliverminimumannualtonnage,whichvariesbycontract,butcoversatleast90percentofeachfacility'sannualcapacity.Thetake-or-payprovisionsalsorequireourcustomerstopurchasesuchvolumesofcokeorpaythecontractpriceforanytonnagetheyelectnottotake.Thesecokesalesagreementshaveanaverageremainingtermofapproximatelysevenyears,andtodate,ourcokecustomershavesatisfiedtheirobligationsundertheseagreements.

Ourcokesalespricesincludeanoperatingcostcomponent,acoalcostcomponentandareturnofcapitalcomponent.Operatingcostsunderoneofourcokesalesagreementsarecontractual,subjecttoanannualadjustmentbasedonaninflationindex.Underourotherthreecokesalesagreementsoperatingcostsarepassedthroughtotherespectivecustomerssubjecttoanannuallynegotiatedbudget,insomecasessubjecttoacapannuallyadjustedforinflation,andgenerallyweshareanydifferenceincostsfromthebudgetedamountswithourcustomers.Ourcokesalesagreementscontainpass-throughprovisionsforcoalandcoalprocurementcosts,subjecttomeetingcontractualcoal-to-cokeyields.Totheextentthattheactualcoal-to-cokeyieldsarelessthanthecontractualstandard,weareresponsibleforthecostoftheexcesscoalusedinthecokemakingprocess.Conversely,totheextentouractualcoal-to-cokeyieldsarehigherthanthecontractualstandard,werealizegains.Thereimbursementofpass-throughoperatingandcoalcostsfromthesecokesalesagreementsareconsideredtobevariableconsiderationcomponentsincludedinthecokemakingsalesprice.Thereturnofcapitalcomponentforeachtonofcokesoldtothecustomerisdeterminedatthetimethecokesalesagreementissignedandiseffectiveforthetermofeachsalesagreement.Thiscomponentofourcokesalespricesisintendedtoprovideanadequatereturnoninvestedcapitalandmaydifferbasedoninvestmentlevelsandotherconsiderations.Theactualreturnoninvestedcapitalatanyfacilityisalsoimpactedbyfavorableorunfavorableperformanceonpass-throughcostitems.Revenuesarerecognizedwhenperformanceobligationstoourcustomersaresatisfiedinanamountthatreflectstheconsiderationthatweexpecttoreceiveinexchangeforthecoke.

Logistics

Inourlogisticsbusiness,handlingand/ormixingservicesareprovidedtosteel,coke(includingsomeofourandSunCokes'sdomesticcokemakingfacilities),electricutility,coalproducingandothermanufacturingbasedcustomers.Materialsaretransportedinnumerousways,includingrail,truck,bargeorship.Wedonottakepossessionofmaterialshandled,butratheractasintermediariesbetweenourcustomersandendusers,derivingourrevenuesfromservicesprovidedonapertonbasis.Thehandlingandmixingservicesconsistprimarilyoftwoperformanceobligations,unloadingandloadingofmaterials.Ourlogisticsbusinesshaslong-term,take-or-payagreementsrequiringustohandleover15milliontonsannually.Thetake-or-payprovisionsintheseagreementsrequireourcustomerstopurchasesuchhandlingservicesorpaythecontractpriceforservicestheyelectnottotake.Estimatedtake-or-payrevenueofapproximately$365millionfromallofourlong-termlogisticscontractsisexpectedtoberecognizedoverthenextfiveyearsforunsatisfiedorpartiallyunsatisfiedperformanceobligationsasofDecember31,2018.Todate,ourcustomershavesatisfiedtheirobligationsundertheseagreements.Includedwiththeselong-term,take-or-payarrangementsareourcontractswithMurrayandForesight,whichcover10milliontonsofCMT'sannualtransloadingcapacityof15milliontons.Revenuesinourlogisticsbusinessarerecognizedwhenthecustomerreceivesthebenefitsoftheservicesprovided,inanamountthatreflectstheconsiderationthatwewillreceiveinexchangeforthoseservices.BillingstoCMTcustomersfortake-or-payvolumeshortfallsbasedonpro-ratavolumecommitmentsundertake-or-paycontractsthatareinexcessofbillingsearnedforservicesprovidedarerecordedascontractliabilitiesandcharacterizedasdeferredrevenueontheConsolidatedBalanceSheets.Deferredrevenueisrecognizedattheearliestofi)whentheperformanceobligationissatisfied;ii)whentheperformanceobligationhasexpired,basedonthetermsofthecontract;oriii)whenthelikelihoodthatthecustomerwouldexerciseitsrighttotheperformanceobligationbecomesremote.

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ThefollowingtableprovideschangesinthePartnership'sdeferredrevenue:

2018 2017 (Dollars in millions)BeginningbalanceatDecember31,2017and2016,respectively $ 1.7 $ 2.5Reclassificationofthebeginningcontractliabilitiestorevenue,asaresultofperformanceobligationsatisfied (1.4) (2.1)Billingsinexcessofservicesperformed,notrecognizedasrevenue 2.7 1.3

EndingbalanceatDecember31,2018and2017,respectively $ 3.0 $ 1.7

Energy

Ourenergysalesaremadepursuanttoeithersteamorenergysupplyandpurchaseagreementsorissoldintotheregionalpowermarket.Ourcokemakingovensutilizeefficient,modernheatrecoverytechnologydesignedtocombustthecoal’svolatilecomponentsliberatedduringthecokemakingprocessandusetheresultingheattocreatesteamorelectricityforsale.Theenergyprovidedunderthesearrangementsresultintransferofcontrolovertime.Revenuesarerecognizedasenergyisdeliveredtoourcustomers,inanamountbasedonthetermsofeacharrangement.

DisaggregatedSalesandOtherOperatingRevenue

Thefollowingtableprovidesdisaggregatedsalesandotheroperatingrevenuebyproductorservice,excludingintersegmentrevenues:

Years Ended December 31,

2018 2017 2016

(Dollars in millions)Sales and other operating revenue: Cokemaking 720.6 686.9 623.6Energy 49.7 52.7 53.7Logistics 114.4 102.6 96.3Other 7.4 3.4 6.1

Salesandotheroperatingrevenue 892.1 845.6 779.7

DisaggregatedsalesandotheroperatingrevenuebycustomerisdiscussedinNote4.

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15. Business Segment Information

ThePartnershipderivesitsrevenuesfromtheDomesticCokeandLogisticsreportablesegments.DomesticCokeoperationsarecomprisedoftheHaverhill,MiddletownandGraniteCitycokemakingfacilities,whichusesimilarproductionprocessestoproducecokeandtorecoverwasteheatthatisconvertedtosteamorelectricity.

LogisticsoperationsarecomprisedofCMT,LakeTerminalandKRT.HandlingandmixingresultsarepresentedintheLogisticssegment.

Corporateandotherexpensesthatcanbeidentifiedwithasegmenthavebeenincludedindeterminingsegmentresults.TheremainderisincludedinCorporateandOther.

ThefollowingtableincludesAdjustedEBITDA,whichisthemeasureofsegmentprofitorlossandliquidityreportedtothechiefoperatingdecisionmakerforpurposesofallocatingresourcestothesegmentsandassessingtheirperformance:

Years Ended December 31,

2018 2017 2016

(Dollars in millions)Sales and other operating revenue: DomesticCoke $ 776.7 $ 739.7 $ 681.8Logistics 115.4 105.9 97.9Logisticsintersegmentsales 6.9 6.5 6.1Eliminationofintersegmentsales (6.9) (6.5) (6.1)

Totalsalesandotheroperatingrevenue $ 892.1 $ 845.6 $ 779.7

Adjusted EBITDA: DomesticCoke $ 157.5 $ 170.3 $ 167.0Logistics 71.6 69.7 63.2CorporateandOther (16.6) (15.3) (17.2)

TotalAdjustedEBITDA $ 212.5 $ 224.7 $ 213.0

Depreciation and amortization expense: DomesticCoke(1) $ 68.1 $ 59.9 $ 53.4Logistics 24.3 23.7 24.3

Totaldepreciationandamortizationexpense $ 92.4 $ 83.6 $ 77.7

Capital expenditures: DomesticCoke $ 57.2 $ 35.0 $ 22.1Logistics 3.6 4.0 15.0

Totalcapitalexpenditures $ 60.8 $ 39.0 $ 37.1

(1) WerevisedtheestimatedusefullivesofcertainassetsinourDomesticCokesegment,primarilyasaresultofplanstoreplacemajorcomponentsofcertainheatrecoverysteamgeneratorswithupgradedmaterialsanddesign,resultinginadditionaldepreciationof$9.2million,or$0.20percommonunit,duringtheyearendedDecember31,2018.

ThefollowingtablesetsforththePartnership'ssegmentassets:

December 31,

2018 2017 (Dollars in millions)Segmentassets: DomesticCoke $ 1,158.4 $ 1,151.4Logistics 458.7 489.8CorporateandOther 2.0 0.2

Total Assets $ 1,619.1 $ 1,641.4

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ThePartnershipevaluatestheperformanceofitssegmentsbasedonsegmentAdjustedEBITDA,whichrepresentsearningsbeforeinterest,taxes,depreciationandamortization("EBITDA"),adjustedforloss(gain)onextinguishmentofdebt,transactioncostsrelatedtotheSimplificationTransactionandchangestoourcontingentconsiderationliabilityrelatedtoouracquisitionofCMTandtheexpirationofcertainacquiredcontractualobligations.AdjustedEBITDAdoesnotrepresentandshouldnotbeconsideredanalternativetonetincomeoroperatingincomeunderGAAPandmaynotbecomparabletoothersimilarlytitledmeasuresinotherbusinesses.

ManagementbelievesAdjustedEBITDAisanimportantmeasureoftheoperatingperformanceandliquidityofthePartnership'snetassetsanditsabilitytoincurandservicedebt,fundcapitalexpendituresandmakedistributions.AdjustedEBITDAprovidesusefulinformationtoinvestorsbecauseithighlightstrendsinourbusinessthatmaynototherwisebeapparentwhenrelyingsolelyonGAAPmeasuresandbecauseiteliminatesitemsthathavelessbearingonouroperatingperformanceandliquidity.EBITDAandAdjustedEBITDAarenotmeasurescalculatedinaccordancewithGAAP,andtheyshouldnotbeconsideredanalternativetonetincome,operatingcashfloworanyothermeasureoffinancialperformancepresentedinaccordancewithGAAP.SetforthbelowisadditionaldiscussionofthelimitationsofAdjustedEBITDAasananalyticaltool.

Limitations. OthercompaniesmaycalculateAdjustedEBITDAdifferentlythanwedo,limitingitsusefulnessasacomparativemeasure.AdjustedEBITDAalsohaslimitationsasananalyticaltoolandshouldnotbeconsideredinisolationorasasubstituteforananalysisofourresultsasreportedunderGAAP.SomeoftheselimitationsincludethatAdjustedEBITDA:

• doesnotreflectourcashexpenditures,orfuturerequirements,forcapitalexpendituresorcontractualcommitments;

• doesnotreflectitemssuchasdepreciationandamortization;

• doesnotreflectchangesin,orcashrequirementsfor,workingcapitalneeds;

• doesnotreflectourinterestexpense,orthecashrequirementsnecessarytoserviceinterestonorprincipalpaymentsofourdebt;

• doesnotreflectcertainothernon-cashincomeandexpenses;

• excludesincometaxesthatmayrepresentareductioninavailablecash;and

• includesnetincomeattributabletononcontrollinginterests.

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BelowarereconciliationsofAdjustedEBITDAfromnet(loss)incomeandnetcashprovidedbyoperatingactivities,whichareitsmostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP:

Years Ended December 31,

2018 2017 2016

(Dollars in millions)Net income (loss) $ 59.4 $ (17.5) $ 121.4Add:

Depreciationandamortizationexpense 92.4 83.6 77.7Interestexpense,net 59.4 56.4 47.7Loss(gain)onextinguishmentofdebt — 20.0 (25.0)Incometax(benefit)expense (1.6) 83.9 2.0Contingentconsiderationadjustments(1) 2.5 (1.7) (10.1)TransactionCosts 0.4 — —Non-cashreversalofacquiredcontractualobligations(2) — — (0.7)

Adjusted EBITDA (3) $ 212.5 $ 224.7 $ 213.0Subtract:

AdjustedEBITDAattributabletononcontrollinginterest(5) 3.1 3.4 3.3

Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 209.4 $ 221.3 $ 209.7

Years Ended December 31,

2018 2017 2016

(Dollars in millions)Net cash provided by operating activities $ 162.8 $ 136.7 $ 183.6Add:

Cashinterestpaid,netofcapitalizedinterest 56.9 64.5 49.0Cashtaxespaid 2.9 1.4 1.5Changesinworkingcapital (10.0) 19.0 (17.8)Contingentconsiderationadjustments(1) 2.5 (1.7) (10.1)TransactionCosts 0.4 — —Non-cashreversalofacquiredcontractualobligation(2) — — (0.7)Otheradjustmentstoreconcilecash(usedin)providedbyoperatingactivitiestoAdjusted

EBITDA (3.0) 4.8 7.5Adjusted EBITDA $ 212.5 $ 224.7 $ 213.0Subtract:

AdjustedEBITDAattributabletononcontrollinginterest(3) 3.1 3.4 3.3

Adjusted EBITDA attributable to SunCoke Energy Partners, L.P. $ 209.4 $ 221.3 $ 209.7

(1) Asaresultofchangesinthefairvalueofthecontingentconsiderationliability,thePartnershiprecognizedexpenseof$2.5millionin2018andbenefitsof$1.7millionand$10.1millionduringand2017and2016,respectively.SeeNote13.

(2) InassociationwiththeacquisitionofCMT,weassumedcertainperformanceobligationsunderexistingcontractsandrecordedliabilitiesrelatedtosuchobligations.In2016,thefinalacquiredcontractualperformanceobligationsexpiredwithoutthecustomerrequiringperformance.Therefore,thePartnershipreversedtheliabilityaswenolongerhaveanyobligationsunderthecontracts.

(3) Reflectsnetincomeattributabletononcontrollinginterestadjustedfornoncontrollinginterest'sshareofinterest,taxes,income,anddepreciationandamortization.

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16. Selected Quarterly Data (unaudited)

2018 2017

First

Quarter SecondQuarter

ThirdQuarter

FourthQuarter (1)

FirstQuarter (2)

SecondQuarter (3)

ThirdQuarter

FourthQuarter (1)(4)

(Dollars in millions, except per unit amounts)Salesandotheroperatingrevenue $ 214.8 $ 228.6 $ 224.1 $ 224.6 $ 195.6 $ 200.6 $ 214.0 $ 235.4Grossprofit(5) $ 36.2 $ 43.4 $ 38.8 $ 32.4 $ 38.6 $ 29.7 $ 47.6 $ 59.4Netincome(loss) $ 15.7 $ 19.4 $ 15.7 $ 11.6 $ (131.7) $ (12.5) $ 23.3 $ 103.4Netincome(loss)attributableto

SunCokeEnergyPartners,L.P. $ 15.3 $ 18.8 $ 15.3 $ 11.2 $ (129.3) $ (12.9) $ 22.6 $ 101.5Netincome(loss)percommonunit

(basicanddiluted)(6) $ 0.32 $ 0.40 $ 0.32 $ 0.24 $ (2.77) $ (0.30) $ 0.45 $ 0.65Cashdistributionperunitpaidduring

period $ 0.5940 $ 0.4000 $ 0.4000 $ 0.4000 $ 0.5940 $ 0.5940 $ 0.5940 $ 0.5940

(1) ThePartnershiprecognizeddeferredrevenuefromLogisticstake-or-paybillingsforminimumvolumeshortfallsof$16.4millionintorevenueinthefourthquarterof2017.Asaresultoftheincreaseintonshandledthroughout2018,therewerenoshortfallstoberecognizedduringfourthquarter.

(2) Duringthefirstquarterof2017,thePartnershiprecorded$148.6millionofdeferredincometaxexpenseasaresultoftheIRSFinalRegulationsonqualifyingincome.SeeNote6.

(3) Duringthesecondquarterof2017,thePartnershipincurred$19.9millionoflossesinconnectionwithdebtrefinancing.

(4) Duringthefourthquarterof2017,thePartnershiprecorded$68.8millionoftaxbenefitsasaresultofthenewTaxLegislation.SeeNote6.

(5)Grossprofitequalssalesandotheroperatingrevenuelesscostofproductssoldandoperatingexpensesanddepreciationandamortization.

(6) Netincomepercommonunitiscomputedindependentlyforeachofthequarterspresented.Therefore,thesumofquarterlynetincomepercommonunitinformationmaynotequalannualnetincomepercommonunit.Thedeferredtaxliabilitiesrecordedinthefirstquarterof2017asaresultoftheFinalRegulationsonqualifyingincomewererevisedbythenewTaxLegislation,enactedinthefourthquarterof2017.Ourfullyearnetlosspercommonunitcalculationwasimpactedasaresult.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Management’s Evaluation of Disclosure Controls and Procedures

Ourmanagement,withtheparticipationofourprincipalexecutiveofficerandprincipalfinancialofficer,isresponsibleforevaluatingtheeffectivenessofourdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e)).OurdisclosurecontrolsandproceduresaredesignedtoprovidereasonableassurancethattheinformationrequiredtobedisclosedbyusinreportsthatwefileorsubmitundertheExchangeActisaccumulatedandcommunicatedtoourmanagement,includingourprincipalexecutiveofficerandprincipalfinancialofficer,asappropriatetoallowtimelydecisionsregardingrequireddisclosureandisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedintherulesandformsoftheSEC.Baseduponthatevaluation,ourprincipalexecutiveofficerandprincipalfinancialofficerconcludedthat,asoftheendoftheperiodcoveredbythisreport,ourdisclosurecontrolsandprocedureswereeffectiveatthereasonableassurancelevel.

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Management’s Report on Internal Control over Financial Reporting

Themanagementofourgeneralpartner,withtheparticipationofourprincipalexecutiveofficerandprincipalfinancialofficer,isresponsibleforestablishingandmaintainingadequateinternalcontroloverourfinancialreporting,assuchtermisdefinedunderExchangeActRule13a-15(f).Ourinternalcontrolsystemwasdesignedtoprovidereasonableassurancetothemanagementofourgeneralpartnerregardingthepreparationandfairpresentationofpublishedfinancialstatements.

InevaluatingtheeffectivenessofourinternalcontroloverfinancialreportingasofDecember31,2018,themanagementofourgeneralpartnerusedtheframeworksetforthbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommissioninInternalControl-IntegratedFramework(2013).Basedonsuchevaluation,themanagementofourgeneralpartnerconcludedthatourinternalcontroloverfinancialreportingwaseffectiveasofDecember31,2018.

Themanagementofourgeneralpartner,includingourprincipalexecutiveofficerandprincipalfinancialofficer,doesnotexpectthatourdisclosurecontrolsandproceduresorourinternalcontrolsoverfinancialreportingwillpreventallerrorsandallfraud.Acontrolsystem,nomatterhowwellconceivedandoperated,canprovideonlyreasonable,notabsolute,assurancethattheobjectivesofthecontrolsystemaremet.Further,thedesignofacontrolsystemmustreflectthefactthatthereareresourceconstraints,andthebenefitsofcontrolsmustbeconsideredrelativetotheircosts.Becauseoftheinherentlimitationsinallcontrolsystems,noevaluationofcontrolscanprovideabsoluteassurancethatallcontrolissues,misstatements,errors,andinstancesoffraud,ifany,withinourpartnershiphavebeenorwillbepreventedordetected.Theseinherentlimitationsincludetherealitiesthatjudgmentsindecision-makingcanbefaultyandthatbreakdownscanoccurbecauseofsimpleerrorormistake.Controlsalsocanbecircumventedbytheindividualactsofsomepersons,bycollusionoftwoormorepeople,orbymanagementoverrideofthecontrols.Thedesignofanysystemofcontrolsisbasedinpartoncertainassumptionsaboutthelikelihoodoffutureevents,andtherecanbenoassurancethatanydesignwillsucceedinachievingitsstatedgoalsunderallpotentialfutureconditions.Projectionsofanyevaluationofcontrolseffectivenesstofutureperiodsaresubjecttorisksthatinternalcontrolsmaybecomeinadequateasaresultofchangesinconditions,orthroughthedeteriorationofthedegreeofcompliancewithpoliciesorprocedures.

KPMGLLP,ourindependentregisteredpublicaccountingfirm,issuedanattestationreportonourinternalcontroloverfinancialreporting,whichiscontainedinItem8,“FinancialStatementsandSupplementaryData.”

Changes in Internal Control over Financial Reporting

Duringthefirstquarterof2018,weimplementedanewenterpriseresourceplanning("ERP")system.Accordingly,wemodifiedthedesignanddocumentationofcertaininternalcontrolprocessesandproceduresrelatingtothenewERPsystematthattime.OtherthantheERPandrelatedsystemsimplementation,therehavebeennochangesinthePartnership'sinternalcontroloverfinancialreportingthatmateriallyaffected,orarereasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.

Item 9B. Other Information

None.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance

Management of SunCoke Energy Partners, L.P.

WearemanagedandoperatedbytheBoardofDirectorsandexecutiveofficersofourgeneralpartner.AsofJanuary31,2019,SunCokeowns,directlyorindirectly,61.7percentofouroutstandingcommonunitsandallofourincentivedistributionrights("IDRs").Asaresultofitsownershipofourgeneralpartner,SunCokehastherighttoappointallmembersoftheBoardofDirectorsofourgeneralpartner,includingtheindependentdirectors.Ourunitholdersarenotentitledtoappointthedirectorsofourgeneralpartnerorotherwisedirectlyparticipateinourmanagementoroperation.OurgeneralpartnerowescertaindutiestoourunitholdersaswellasafiduciarydutytoSunCoke.

SunCoke indirectly controls our general partner and indirectly owns a significant limited partner interest in us. All of our general partner’s namedexecutiveofficersareemployedasexecutiveofficersofSunCoke.Ourgeneralpartner’sexecutiveofficersallocatetheirtimebetweenmanagingourbusinessandaffairsandthoseofSunCoke.Suchexecutiveofficersdevoteasmuchtimetothemanagementofourbusinessandaffairsasisnecessaryfortheproperconductofourbusinessandaffairs. Inadditiontorenderingservicestous,theseexecutiveofficersdevotedamajorityoftheir professionaltimetoSunCokeduring2018.TheseexecutivesparticipateintheemployeebenefitplansandcompensationarrangementsofSunCoke,andtheCompensationCommitteeofSunCoke’sBoardofDirectors sets the components of their compensation, including base salary and annual and long-term incentives. We have no control over this compensationdetermination process. Please refer to SunCoke Energy, Inc.’s 2019 Annual Meeting Proxy Statement for information on the compensation of these executiveofficers.

Under the terms of our omnibus agreement with SunCoke, we do not pay a management fee or other compensation in connection with our generalpartner’smanagementofourbusiness.However,wereimburseourgeneralpartneranditsaffiliates(includingSunCoke)fordirectcostsandexpensestheyincurandpayments theymakeinprovidinggeneral andadministrative servicesfor ourbenefit. Corporateandother costs andexpensesincurredbySunCokeanditsaffiliatesthataredirectlyattributabletoPartnershipentitieswillbeallocatedtous.AportionofallremainingcorporateandothercostsandexpensesincurredbySunCokeanditsaffiliatesareallocatedtous,basedonSunCoke’sestimateoftheproportionatelevelofeffortattributabletoouroperations.SunCokeallocatesthesecorporateandothercostsonthebasisofthecostsandthelevelofsupportattributabletotheapplicableoperatingfacilitiesforeachfunctionperformedbythesponsor(e.g.,HR,legal,finance,tax,treasury,communications,engineering,insurance,etc.),ratherthanonthebasisoftimespentbyindividualofficersactingwithin a function. The estimated cost and level of support for each of our operating facilities is based on a weighted average of certain factors determined bymanagementofSunCoke,includingthetypeofoperationsandproductsproduced,aswell ascontract andbusinesscomplexityat eachfacility. Ourpartnershipagreementdoesnotsetalimitontheamountofexpensesforwhichourgeneralpartneranditsaffiliatesmaybereimbursed.

Eachyear,ourgeneralpartnerdeterminestheaggregateamounttobereimbursedtoSunCoke,byus,takingintoaccountthetotalityofservicesperformedforourbenefitbythenamedexecutiveofficersduringthecalendaryear.TheamountsreimbursedtoSunCokearenotcalculatedwithregardtoanexecutiveofficer'stimespentonourbusinessmattersversusthoseofSunCoke.Thereisnospecificallocationofaportionofasharedofficer'scompensationinconnectionwithservicesrenderedonourbehalf.During2018,SunCokeallocated$27.2millionofexpensesintheaggregatefortheservicestheyrendertous.SeeItem13,“CertainRelationshipsandRelatedTransactions,andDirectorIndependence”forfurtherdiscussionofourrelationshipsandtransactionswithSunCokeanditsaffiliates.

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Executive Officers and Directors of Our General Partner

Ourgeneralpartnerhassevendirectors,threeofwhom,Messrs.BledsoeandSomerhalderandMs.Carnes;meetapplicableindependenceandexperiencestandardsestablishedbytheNYSEandtheExchangeAct.TheNYSEdoesnotrequirealistedpubliclytradedpartnership,suchasours,tohaveamajorityofindependentdirectorsontheBoardofDirectorsofitsgeneralpartnerortoestablishacompensationcommitteeoranominatingcommittee.Directorsareappointedforaone-yeartermandholdofficeuntiltheirsuccessorshavebeenelectedorqualifiedoruntiltheearlieroftheirdeath,resignation,removalordisqualification.Executiveofficersserveatthediscretionoftheboard.Therearenofamilyrelationshipsamonganyofourdirectorsorexecutiveofficers.

Thefollowingtableshowsinformationforthecurrentexecutiveofficersanddirectorsofourgeneralpartner:

Our Directors, Executive Officers and Other Key Executives

Name Age Position with Our General Partner

MichaelG.Rippey 61 Chairman,PresidentandChiefExecutiveOfficerFayWest 49 SeniorVicePresident,ChiefFinancialOfficerandDirectorKatherineT.Gates 42 SeniorVicePresident,GeneralCounsel,ChiefComplianceOfficerandDirectorP.MichaelHardesty

56

SeniorVicePresident,CommercialOperations,BusinessDevelopment,Terminals,and

InternationalCokeandDirectorAllisonS.Lausas 39 VicePresident,FinanceandControllerGaryP.Yeaw 61 SeniorVicePresident,HumanResourcesMarthaZ.Carnes 58 DirectorJohnW.Somerhalder,II 62 DirectorAlvinBledsoe 71 Director

MichaelG.Rippey.Mr.RippeywasnamedPresidentandChiefExecutiveOfficerandappointedasChairmanoftheBoardofourgeneralpartneronDecember1,2017.AlsoonDecember1,2017,Mr.RippeywasappointedPresidentandChiefExecutiveOfficerofSunCokeEnergy,Inc.PriortojoiningSunCokeEnergy,Inc.,heservedasSeniorAdvisortoNipponSteel&SumitomoMetalCorporation(aleadingglobalsteelmaker),since2015.From2014to2015,heservedasChairmanoftheBoardofArcelorMittalUSA(amajordomesticsteelmanufacturer),andfromAugust2006throughOctober2014,hewasArcelorMittalUSA’sPresidentandChiefExecutiveOfficer.Mr.RippeycurrentlyservesontheBoardofDirectorsofOlympicSteel,Inc.(NASDAQ:ZEUS),amajorsteelservicecenterheadquarteredinOhio,whereheisamemberoftheNominatingCommittee,andservesasChairoftheAuditandComplianceCommittee.Mr.Rippeyisanaccomplishedseniorexecutivewithawealthoffinance,sales,operationsandmanagementexperienceinthemetalsindustry.Hehassuccessfullydealtwithdynamicandchallengingbusinessenvironmentsand,asapastexecutiveofficerandChairmanofArcelorMittalUSA,hehasanintimateknowledgeandunderstandingofthechallengesandopportunitiesfacingSunCokeasitcontinuestoservethesteelindustry.

FayWest.Ms.WestwasappointedasSeniorVicePresidentandChiefFinancialOfficerofbothourgeneralpartnerandofSunCokeinOctober2014and,atthattime,wasalsoappointedtotheBoardofDirectorsofourgeneralpartner.Priortothattime,sheservedasVicePresidentandControllerofourgeneralpartnersinceJuly2012,andasVicePresidentandControllerofSunCokesinceFebruary2011.PriortojoiningSunCoke,Ms.WestwasAssistantControlleratUnitedContinentalHoldings,Inc.(anairlineholdingcompany)fromApril2010toJanuary2011.ShewasVicePresident,AccountingandFinancialReportingforPepsiAmericas,Inc.(amanufactureranddistributorofbeverageproducts)fromDecember2006throughMarch2010andDirectorofFinancialReportingfromDecember2005toDecember2006.Ms.WestisadirectorofQuakerChemicalCorporation(aleadingmanufacturerandsupplierofprocessfluidsandspecialtychemicals)whereshealsoservesasamemberofitsAuditCommittee.Ms.West’sfinancialandaccountingexpertiseandherbroadindustryandmanagementexperience,aswellasherexperiencewithSunCoke,providestheboardwithvaluableexpertiseinseniorlevelstrategicplanningandfinancialdisclosureandreportingmatters.

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KatherineGates.Ms.GateswasappointedSeniorVicePresident,GeneralCounselandChiefComplianceOfficerofbothourgeneralpartnerandofSunCokeeffectiveOctober22,2015.Ms.GatesjoinedSunCokeinFebruary2013,asSeniorHealth,EnvironmentandSafety(“HES”)Counsel.ShewaspromotedtoVicePresidentandAssistantGeneralCounselofbothourgeneralpartnerandofSunCokeinJuly2014.Ms.GatesbeganherlegalcareerinprivatepracticeasaPartneratthelawfirmofBeveridge&Diamond,P.C.Sheservedonthefirm’sManagementcommittee,wheresheaddressedbudget,compensation,commercialandotherissues.Ms.Gatesalsoco-chairedtheCivilLitigationSectionofthefirm’sLitigationPracticeGroup.ShealsoclerkedfortheU.S.DepartmentofJustice.WebelievethatMs.Gates’legalknowledgeandskill,aswellasherexperiencewithSunCoke’soperations,providestheBoardofDirectorswithvaluableexpertiseregardingseniorlevelstrategicplanningandrelevantlegalmatters,includingthoserelatedtocorporategovernance,litigation,health,environment,safety,mergers,acquisitions,complianceandcommercialmatters.

P.MichaelHardesty.Mr.HardestywasappointedSeniorVicePresident,CommercialOperations,BusinessDevelopment,TerminalsandInternationalCokeofSunCokeeffectiveOctober1,2015.Atthattime,healsowasappointedasaDirectorofourgeneralpartner.Mr.HardestyhasbeenaSeniorVicePresidentofourgeneralpartnersincejoiningSunCokein2011asitsSeniorVicePresident,SalesandCommercialOperations.Hehasmorethan30yearsofexperienceintheminingindustry.BeforejoiningSunCoke,Mr.HardestyservedasSeniorVicePresidentforInternationalCoalGroup,Inc.(“ICG”),wherehewasresponsibleforleadingthesalesandmarketingfunctionsandwasakeymemberoftheexecutivemanagementteam.PriortoICG,Mr.HardestyservedasVicePresidentofCommercialOptimizationatArchCoal,wherehedevelopedandexecutedtradestrategies,optimizedproductionoutputanddirectedcoalpurchasingactivities.HeisapastboardmemberandSecretary-TreasurerofthePutnamCountyDevelopmentAuthorityinWestVirginia.WebelievethatMr.Hardesty’sextensiveindustryexperience,aswellashisexperiencewithSunCoke,providestheBoardofDirectorswithvaluableexpertiseincommercialoperations,marketingandlogistics.Mr.Hardestyalsopossesseshealth,environmentandsafetyoversightexperiencebyvirtueofhisoversightexperienceasasenior-levelexecutiveatICG.

AllisonS.Lausas.Ms.LausaswasappointedVicePresident,FinanceandControllerofbothourgeneralpartnerandofSunCokeonMay3,2018.PriortothatfromOctober2014toMay2018,Ms.LausaswasVicePresidentandControllerofbothCompanies.Ms.LausasjoinedSunCokein2011andmostrecentlyheldtheroleofAssistantController.PriortojoiningSunCokeEnergy,Inc.,sheworkedasanauditoratKPMG,LLP,anaudit,advisoryandtaxservicesfirm,from2002to2011wheresheservedbothpublicandprivatecorporationsintheconsumerandindustrialmarkets.

GaryP.Yeaw.Mr.YeawwasappointedSeniorVicePresident,HumanResourcesofSunCokeonNovember1,2015andalsowasappointedasSeniorVicePresidentofourgeneralpartneratthattime.Priortothat,hewasVicePresident,HumanResourcesofSunCoke.Mr.YeawleadsthehumanresourcesfunctionatSunCoke,andisresponsibleforkeyorganizationalactivities.PriortojoiningSunCoke,hewasExecutiveVicePresident,HumanResourcesandCommunicationsforChemturaCorporation.Mr.YeawalsoservedasVicePresident,HumanResourcesforAmericanStandardCompanies,aswellasVicePresident,HumanResourcesOperationalExcellenceinchargeofglobalbenefitprograms,laborrelations,HRsystemsandemployeeservices.Mr.YeawholdsprofessionaldesignationsasaSeniorHumanResourcesProfessional,CertifiedCompensationProfessionalandwasachartermemberoftheInternationalSocietyofEmployeeBenefitsSpecialists.

MarthaZ.Carnes.Ms.CarneswasappointedtotheBoardofDirectorsofourgeneralpartnereffectiveSeptember1,2017.From1982untilherretirementfromthefirminJune2016,Ms.CarnesservedinvariousseniorrolesatPricewaterhouseCoopers,orPwC(aninternationalaccountingfirm),includingas:(i)AssurancePartnerservinglarge,publiclytradedcompaniesintheenergyindustry;(ii)ManagingPartnerofPwC’sHouston,Texasoffice;and(iii)PwC'sEnergyandMiningleaderfortheUnitedStates,wheresheledthefirm'senergyandminingassurance,taxandadvisorypractices.Ms.CarnescurrentlyservesasadirectorontheSupervisoryBoardofCoreLaboratoriesN.V.[NYSE:CLB],aNetherlandscompany(oneoftheworld’slargestprovidersofreservoirdescriptionandproductionenhancementservicestotheoilandgasindustry),wheresheisChairmanoftheAuditCommittee.SheisalsoadirectorofMatrixServiceCompany[NASDAQ:MTRX](aproviderofdesign,engineering,construction,repairandmaintenanceservicestoindustrialandenergyclientsinNorthAmerica),wheresheChairstheAuditCommitteeandservesontheCompensation,andNominatingandCorporateGovernancecommittees.Ms.Carnesisanexperiencedfinanceandpublicaccountingexecutive,havingspentherentire34-yearcareerwithPwC.Byvirtueofherexperience,Ms.Carnespossessesstrategicplanning,managerialandleadershipexpertise,havingledthedesignandexecutionofmarketandsectorstrategies,businessdevelopment,compensation,professionaldevelopment,successionplanning,andclientsatisfactioninitiativesforclientsinthemining,utilitiesandenergyindustries.Inaddition,Ms.Carnesbringsvastexperiencewithcapitalmarketsandfinancingactivities,havingservedasleadauditpartneronsomeofthelargestmergerandacquisitiontransactionscompletedintheenergysector.

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JohnW.Somerhalder,II.Mr.SomerhalderwasappointedtotheBoardofDirectorsofourgeneralpartnereffectiveSeptember1,2017.FromFebruary2017toSeptember2017,heservedastheInterimPresidentandChiefExecutiveOfficerofprivatelyheldColonialPipelineCompany(oneofthenation’slargestrefinedproductspipelinecompanies). HewasChairmanandChiefExecutiveOfficer ofAGLResourcesInc. (a formerpubliclytradedenergyservicesholdingcompanyacquiredbySouthernCompany,oneofthenation'slargestnaturalgas-distributors)fromMay2015throughDecember2015.FromNovember2007toMay2015,hewasChairman,PresidentandChiefExecutiveOfficer,andfromMarch2006toNovember2007,hewasPresidentandChiefExecutiveOfficerofAGLResources Inc. Prior to that, Mr. Somerhalder served as Executive Vice President of El Paso Corporation (a natural gas and energy products provider),including, from 2000 to May 2005. Since 2013, Mr. Somerhalder has served as a director of Crestwood Equity Partners (from 2010 to 2013 as a director ofCrestwoodGasServices,LLCandfrom2007to2010asadirectorofQuicksilverGasServices,LLC),andsinceOctober2016,Mr.Somerhalderhasservedasadirector of CenterPoint Energy, Inc. (a major publicly traded electric and natural gas utility). Mr. Somerhalder also is a past Chairman of the American GasAssociationandtheInterstateNaturalGasAssociationofAmerica.Withoverfourdecadesintheenergyindustry,Mr.Somerhalderisasenior-levelexecutivewithmanagerial and leadership expertise, and experience in general operations, strategic planning, business development, marketing and corporate restructuring(includingmergersandacquisitions).Inaddition,Mr.Somerhalderbringsextensiveknowledgeoftheenergyindustry,andterminallingandlogisticsbusinessesandhehashadextensivedealingswithgovernmentalandotherregulatoryagenciesinmultiplejurisdictions.

Alvin Bledsoe . Mr. Bledsoe was appointed as a director of general partner in September 2017, and since June 2011, he also has been a director of oursponsor,SunCokeEnergy,Inc.From1972untilhisretirementfromthefirmin2005,Mr.BledsoeservedinvariousseniorrolesatPricewaterhouseCoopersLLP,or PwC (an international accounting firm). In 2007, he joined the Board of Directors of Crestwood Gas Services GP LLC, the general partner of CrestwoodMidstream Partners LP (a natural gas and crude oil logistics master limited partnership). Upon the October 2013 merger and subsequent related corporaterestructuring between Crestwood Midstream Partners LP, Inergy, L.P. and Inergy Midstream, L.P., Mr. Bledsoe was appointed to the Boards of CrestwoodMidstreamGPLLC,thegeneralpartnerofCrestwoodMidstreamPartnersLPandCrestwoodEquityGPLLC,thegeneralpartnerofCrestwoodEquityPartnersLP(anaturalgasandcrudeoillogisticsmasterlimitedpartnershipholdingcompany),wherehechairedtheAuditCommitteesofbothcompanies.In2015,CrestwoodEquityPartnersL.P.acquiredCrestwoodMidstreamPartnersL.P.andeliminatedtheneedforaseparateBoardofDirectorsat CrestwoodMidstreamGPLLC.Followingthis acquisition, Mr. Bledsoeis a director of CrestwoodEquityGPLLC,andchair its Audit Committee. Mr. Bledsoeis anexperiencedfinanceandpublicaccountingexecutive,havingspenthisentire33-yearcareerwithPwC.Byvirtueofhisexperience,Mr.Bledsoeisknowledgeableaboutfinance,mergerandacquisitiontransactionsandmajorcostrestructuringsandpossessesknowledgeofthemining,utilitiesandenergyindustries.Inaddition,hebringsrelevantindustryexpertise, havingservedclients withintheseindustrysectorsandhavingservedastheglobal leaderforPwC’sEnergy, MiningandUtilities IndustriesAssuranceandBusinessAdvisoryServicesGroup.WhileatPwC,Mr.Bledsoealsogainedexperienceworkingwithboardsofdirectorsbyinterfacingwiththeboardsofdirectorsofhisclients.

Director Independence

TheBoardofDirectorsofourgeneralpartnerhasdeterminedthateachofMessrs.BledsoeandSomerhalderandMs.CarnesareindependentasdefinedunderapplicableindependencestandardsestablishedbytheNYSEandtheExchangeAct.InevaluatingdirectorindependencewithrespecttoMessrs.BledsoeandSomerhalderandMs.Carnes,theBoardofDirectorsofourgeneralpartnerassessedwhethereachofthempossessestheintegrity,judgment,knowledge,experience,skillandexpertisethatarelikelytoenhancetheboard’sabilitytomanageanddirectouraffairsandbusiness,including,whenapplicable,toenhancetheabilityofcommitteesoftheboardtofulfilltheirduties.

Board Meetings; Committees of the Board of DirectorsTheBoardofDirectorsofourgeneralpartnerhasanauditcommitteeandaconflictscommittee.TheBoardofDirectorsofourgeneralpartnerdoesnot

haveacompensationcommittee,buttheBoardofDirectorsofourgeneralpartnerapprovesequitygrants.NograntsofPartnershipequitywereawardedtoexecutiveofficersduring2018.TheBoardofDirectorsofourgeneralpartnerheldsixregularmeetingsinfiscal2018.Eachdirectorwhoservedinfiscal2018attendedatleast75percentoftheaggregateofthetotalnumberofmeetingsoftheBoardandCommitteesonwhichheorsheservedduringtheperiodsthatheorsheservedinfiscal2018.

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Audit Committee

Theaudit committeeofourgeneral partner hasbeenestablishedinaccordancewithSection3(a)(58)(A)oftheExchangeAct, andconsists ofMessrs.BledsoeandSomerhalderandMs.Carnes,allofwhommeettheindependenceandexperiencestandardsestablishedbytheNYSEandtheExchangeAct.TheauditcommitteeischairedbyMr.Bledsoe.TheBoardofDirectorsofourgeneral partnerhasdeterminedthatMessrs. BledsoeandSomerhalderandMs.Carnesare“auditcommitteefinancialexperts”withinthemeaningoftheSECrules.Theauditcommitteeoperatespursuanttoawrittencharter,acopyofwhichisavailableon our website atwww.suncoke.com. The audit committee assists the Board of Directors in its oversight of the integrity of our financial statements and ourcompliancewithlegalandregulatoryrequirementsandpartnershippoliciesandcontrols.Theauditcommitteehasthesoleauthorityto(1)retainandterminateourindependentregisteredpublicaccountingfirm,(2)approveall auditingservicesandrelatedfeesandthetermsthereofperformedbyourindependentregisteredpublic accounting firm, and (3) pre-approve any non-audit services and tax services to be rendered by our independent registered public accounting firm, (4)oversee and monitor the Partnership’s internal audit function and independent auditors, and (5) monitor compliance with legal and regulatory requirements,includingourCodeofBusinessConductandEthics.Theauditcommitteeisalsoresponsibleforconfirmingtheindependenceandobjectivityofourindependentregistered public accounting firm. Our independent registered public accounting firm has unrestricted access to the audit committee and our management, asnecessary.Theauditcommitteemetseventimesinfiscal2018.

Conflicts Committee

Mr.SomerhalderandMs.Carnesserveontheconflictscommitteetoreviewspecificmattersthattheboardbelievesmayinvolveconflictsofinterestanddeterminestosubmittotheconflictscommitteeforreview.TheconflictscommitteeischairedbyMr.Somerhalder.Theconflictscommitteedeterminesiftheresolutionoftheconflictofinterestisinourbestinterest.Themembersoftheconflictscommitteemaynotbeofficersoremployeesofourgeneralpartnerordirectors,officersoremployeesofitsaffiliates,includingSunCoke,andmustmeettheindependencestandardsestablishedbytheNYSEandtheExchangeActtoserveonanauditcommitteeofaBoardofDirectors,alongwithotherrequirementsinourpartnershipagreement.Underourpartnershipagreement,anymattersapprovedbytheconflictscommittee(including,butnotlimitedto,therecentlyannouncedSimplificationTransaction)willbeconclusivelydeemedtobeinourbestinterest,approvedbyallofourpartnersandnotabreachbyourgeneralpartnerofanydutiesitmayoweusorourunitholders.

Executive Sessions of Non-Management Directors

TheBoardofDirectorsofourgeneralpartnerholdsregularexecutivesessionsinwhichthethreeindependentdirectorsmeetwithoutanymembersofmanagementpresent.Thepurposeoftheseexecutivesessionsistopromoteopenandcandiddiscussionamongtheindependentdirectors.TherulesoftheNYSErequirethatoneoftheindependentdirectorsmustpresideovereachexecutivesession,andtheroleofpresidingdirectorisrotatedamongeachoftheindependentdirectors.

Procedures for Contacting the Board of Directors

Ameans for interested parties to contact the Board of Directors (including the independent directors as a group) directly has been established in thegeneral partner’s Governance Guidelines, published on our website at www.suncoke.com . Information may be submitted confidentially and anonymously,althoughwemaybeobligatedbylawtodisclosetheinformationoridentityofthepersonprovidingtheinformationinconnectionwithgovernmentorprivatelegalactionsandincertainothercircumstances.

Code of Ethics

WehaveadoptedaCodeofBusinessConductandEthicsthatappliestoallofourofficers,directorsandemployees.Anelectroniccopyofthecodeisavailableonourwebsiteatwww.suncoke.com.Foradiscussionofothercorporategovernancematerialspostedonourwebsite,see“PartI.Item1.Business.”

Section-16(a) Beneficial Ownership Reporting Compliance

Section16(a)oftheSecuritiesExchangeActof1934requiresthedirectorsandexecutiveofficersofourgeneralpartner,aswellaspersonswhoownmorethantenpercentofthecommonunitsrepresentinglimitedpartnershipinterestsinus,tofilereportsofownershipandchangesofownershiponForms3,4and5withtheSecuritiesandExchangeCommission,orSEC.BaseduponourreviewofthefilingsmadewiththeSECandrepresentationsmadebyourdirectors,executiveofficersand>10%holders,webelievethatourgeneralpartner’sexecutiveofficersanddirectors,andouraffiliated>10%holders,timelyfiledallreportsrequiredunderSection16(a)oftheSecuritiesExchangeActduringthefiscalyearendedDecember31,2018.

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Item 11. Executive Compensation

Compensation Discussion and Analysis

Wearemanagedbytheexecutiveofficersofourgeneralpartnerwhoarealsoexecutiveofficersof,andareemployedby,SunCokeandtheyparticipateintheemployeebenefitplansandcompensationarrangementsofSunCoke.Neitherwenorourgeneralpartnerhaveacompensationcommittee.TheexecutiveofficersofourgeneralpartnerarecompensateddirectlybySunCoke.AlldecisionsastothecompensationoftheexecutiveofficersofourgeneralpartnerwhoareinvolvedinourmanagementaremadebytheCompensationCommitteeofSunCoke.Therefore,wedonothaveanypoliciesorprogramsrelatingtocompensationoftheexecutiveofficersofourgeneralpartnerandwemakenodecisionsrelatingtosuchcompensation.Wehavenocontroloverthiscompensationdeterminationprocess.OtherthananyawardsthatmaybegrantedinthefutureunderourLong-TermIncentivePlan,thecompensationofourgeneralpartner’sexecutiveofficerscurrentlyis,andinthefuture,willbe,setbySunCoke.TheexecutiveofficersofourgeneralpartnerwillcontinuetoparticipateinSunCoke’semployeebenefitplansandarrangements,includinganySunCokeplansthatmaybeestablishedinthefuture.PursuanttothetermsofouromnibusagreementwithSunCoke,wereimburseSunCokeforaportionofSunCoke’scompensationexpenserelatedtoourgeneralpartner’sexecutiveofficers(whichexpensesincludetheshareofthecompensationpaidtotheexecutiveofficersofourgeneralpartnerattributabletothetimetheyspendmanagingoutbusiness).See“Item10,Directors,ExecutiveOfficersandCorporateGovernance-ManagementofSunCokeEnergyPartners,L.P.”forinformationregardingtheomnibusagreementandallocationofexpensesbetweentheentitiesthatsharetheservicesoftheseexecutives.Noneoftheexecutiveofficersofourgeneralpartnerhaveemploymentagreementswithusorareotherwisespecificallycompensatedbyusfortheirserviceasanexecutiveofficerofourgeneralpartner.

AfulldiscussionofthepoliciesandprogramsoftheCompensationCommitteeofSunCokewillbesetforthintheproxystatementforSunCoke’s2019annualmeetingofstockholderswhichwillbeavailableuponitsfilingontheSEC’swebsiteatwww.sec.govandonSunCoke’swebsiteatwww.suncoke.comatthe “Investors - Financial Reports - Annual Report & Proxy” tab. SunCoke’s 2019 Proxy Statement also will be available free of charge from the CorporateSecretaryofourgeneralpartner.

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Summary Compensation Table

Thefollowingtable sets forth certain information with respect to SunCoke’s compensation of our general partner’s namedexecutive officers (NEOs),consistingof:(a)ourprincipalexecutiveofficer;(b)ourprincipalfinancialofficer;and(c)thethreemosthighlycompensatedexecutiveofficers(otherthantheprincipal executive officer and principal financial officer) who were serving as executive officers at the end of 2018. The table summarizes the compensationattributable to services performed for us by our general partner’s NEOs during fiscal years 2016, 2017 and 2018 but determined and paid by SunCoke. Theamounts reported in the table below were calculated based upon an estimate of the portion of each NEO’s total compensation paid by SunCoke which wasreimbursedbyuspursuanttothetermsoftheomnibusagreement.Furtherinformationregardingthecompensationofourgeneralpartner’sNEOs,whoalsoarenamedexecutiveofficersofSunCoke,willbesetforthinSunCoke’s2019ProxyStatement.CompensationamountssetforthinSunCoke’s2019ProxyStatementwillincludeallcompensationpaidbySunCoke,includingtheamountsshowninthetablebelow,whichareattributabletoservicesperformedforus.

Name and Principal Position (1) Year Salary Bonus Stock Awards (2) Option Awards(3)

Nonequity IncentivePlan Compensation (4)

Changes in PensionValue and

NonqualifiedDeferred

CompensationEarnings (5)

All otherCompensation (6) Total

MichaelG.RippeyChairman&CEO

2018 $408,963 $— $— $— $482,168 $— $20,133 $911,2642017 33,032 — 925,201 209,199 — — — 1,167,432

FayWestSVP&CFO

2018 431,079 — 286,230 67,361 337,922 — 75,466 1,198,0582017 422,080 — 173,218 43,301 512,067 — 80,202 1,230,8682016 384,198 — 244,940 32,919 528,348 — 17,706 1,208,111

P.MichaelHardestySVP,CommercialOps.,Bus.Dev.&Terminals

2018 235,460 — 168,888 39,743 188,376 — 68,104 700,5712017 225,749 — 95,391 23,847 239,644 — 69,861 654,492

2016 215,020 — 134,896 18,129 258,734 — 40,288 667,067

KatherineT.GatesSVP,Gen.Counsel&ChiefComplianceOfficer

2018 370,935 — 168,888 39,743 255,130 — 92,029 926,7252017 355,637 — 119,238 29,809 305,616 — 90,657 900,957

2016 301,253 — 100,579 13,517 274,056 — 51,655 741,060

GaryP.YeawSVP,HumanResources

2018 125,093 — 124,999 29,417 69,708 — 17,622 366,8392017 125,093 — 78,446 19,608 94,852 — 18,609 336,6082016 119,799 — 110,932 14,908 102,967 — 6,773 355,379

NOTES TO TABLE :

(1) NameandPrincipalPosition.EachofourNEOssplittheirprofessionaltimebetweenSunCokeandus,andallcompensationpaidtothemisdeterminedand paid by SunCoke. In accordance with SEC rules, a portion of the total compensation paid by SunCoke to the NEOs is allocated to the servicesperformedforus,basedonanestimateoftheportionofeachNEO’scompensationwhichwasreimbursedbyustoSunCokepursuanttothetermsoftheomnibusagreement,andwhichwebelieveaccuratelyreflectstheamountofcompensationeachNEOwaspaidfortheservicesprovidedtous.For2016,the applicable allocation percentage was approximately 56 percent, for 2017 the applicable allocation percentage was 59 percent and for 2018 theapplicableallocationpercentagewasapproximately62percent.ThetotalcompensationpaidbySunCoketotheNEOsin2016,2017and2018,aswellasadiscussionofhowtheircompensationwasdetermined,isdisclosedinSunCoke’2019AnnualMeetingProxyStatement.

(2) StockAwards. TheNEOsdonotreceiveanyequityawardsfromus. EquityawardsweregrantedtotheNEOspursuant tothetermsoftheSunCokeEnergy, Inc. Long-Term Performance Enhancement Plan (“ LTPEP ”), and such awards include time-based restricted common stock units andperformance-basedcommonstockunits(RSUsandPSUs,respectively)ofSunCoke.Theamountsshowninthetablearethegrantdatefairvaluefortheportionofsuchawardsattributabletous,computedinaccordancewithFASBASCTopic718.TheassumptionsusedbySunCoketodeterminethegrantdatefairvalueoftheseequityawardscanbefoundinSunCoke’sAnnualReportonForm10-Kfortheyear-endedDecember31,2018.ForeachNEO,thenumber and value of outstanding SunCoke equity awards (including unvested RSUs and PSUs) at year-end is reported in SunCoke’s 2019 AnnualMeetingProxyStatement.PSUsawardedundertheLTPEParesubjecttothree-year“cliff”vestingandaresettledinsharesof

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SunCokecommonstock,witheventualpayoutrangingfromzeroto250%oftarget,dependinguponthelevelofattainmentofspecifiedpre-determinedperformancegoalsandobjectivesforSunCoke.Thevalueoftheseperformance-basedawardsatgrantdatewascalculatedassumingthatthehighestlevelofperformanceconditionswillbeachieved.

(3) OptionAwards.TheNEO'sdonotreceiveanyoptionawardsfromus.NonqualifiedstockoptionawardsandNonqualifiedperformancestockoptionsawardsweregrantedunderthetermsofpursuanttothetermsoftheSunCokeLTPEP.Amountsshownarethegrantdatefair valueofSunCokestockoptionawardsattributabletouscomputedinaccordancewithFASBASCTopic718,excludingtheeffectofestimatedforfeitures.TheassumptionsusedbySunCoketodeterminethegrantdatefairvalueoftheoptionawardscanbefoundinNote15Share-BasedCompensation,inSunCoke’sAnnualReportonForm10-Kfortheyear-endedDecember31,2018.Oncevested,theoptionsmaybeexercisedtoacquiresharesofSunCoke’scommonstock.ForeachNEO, the number and value of outstanding SunCoke equity awards (including unexercised stock options) at year-end is reported in SunCoke’s 2019AnnualMeetingProxyStatement.

(4) Non-EquityIncentivePlan.SunCokeprovidesaperformance-basedannualcashincentiveplan(the“AIP”),inwhichourNEOsparticipate.PaymentsundertheAIParebaseduponthelevelsofattainmentofcertainpre-determinedfinancialandoperatinggoalsofSunCoke.TheAIPworksinconjunctionwithSunCoke’sSeniorExecutiveIncentivePlan,orSEIP,whichactsasanoverlaytotheAIPandsetsaperformance-basedceilingontheamountspaidundertheAIP.

(5) Change in Pension Value and Nonqualified Deferred Compensation Earnings . SunCoke does not maintain any defined benefit pension plan, orsupplemental executive retirement plan for its namedexecutive officers, including our NEOs. However, our NEOsdoparticipate in: (a) the SunCokeEnergy,Inc.401(k)Plan,atax-qualifieddefinedcontributionplanavailabletoallemployees;and(b)theSunCokeEnergy,Inc.SavingsRestorationPlan,anonqualifieddefinedcontributionplanforexecutiveswhosecompensationexceedsIRSlimitsoncompensationapplicabletoSunCoke’s401(k)plan.For the periods presented in the table, there were no above-market, or preferential, earnings on any compensation deferred under SunCoke’s SavingsRestorationPlan.Pleaserefertothe“NonqualifiedDeferredCompensation”tableinSunCoke’s2019ProxyStatementforfurtherdetailsofeachNEOsaggregateearningsandaccountbalanceunderSunCoke’sSavingsRestorationPlan.

(6) AllOtherCompensation.AmountsshownrepresentpaymentsmadebySunCokeonbehalfoftheNEOsandattributabletous.TheseamountsincludeannualandmatchingcontributionstoSunCoke’s401(k)and/orSavingsRestorationPlanandarelocationstipendforMr.HardestyandMs.Gates.Noneoftheseamountswereprovideddirectlybyus.NoperquisitesaredisclosedbecauseSunCokedoesnotprovideitsnamedexecutiveofficers(includingourNEOs)withperquisitesorotherpersonalbenefitssuchaspartnershipvehicles,clubmemberships,financialplanningassistance,ortaxpreparationservices.

Long-Term Incentive Plan

Inconnectionwiththecompletionofourinitialpublicofferingin2013,ourgeneralpartneradoptedtheSunCokeEnergyPartners,L.P.Long-TermIncentivePlan, or LTIP. TheLTIPallowsfor grants of (1) restricted units, (2) unit appreciation rights, referred to as UARs, (3) unit options, referred to as Options, (4)phantomunits,(5)unitawards,(6)substituteawards,(7)otherunit-basedawards,(8)cashawards,(9)performanceawardsand(10)distributionequivalentrights,referred to as DERs, collectively referred to as Awards. The LTIP provides our general partner with maximum flexibility with respect to the design ofcompensatoryarrangementsforemployees,officers,consultants,anddirectorsofourgeneralpartnerandanyofitsaffiliatesprovidingservicestous.However,theonlyequityissuedundertheLTIPasofDecember31,2018werequarterlypaymentsofcommonunitstothosenon-employeedirectorsofourgeneralpartnerwhodid not elect to defer receipt of their common unit retainer. Please see the section entitled “Director Compensation” for additional information regarding thecompensationprogramforthenon-employeedirectorsofourgeneralpartner.

TheLTIPisadministeredbytheBoardofDirectorsofourgeneralpartneroranalternativecommitteeappointedbytheBoardofDirectorsofourgeneralpartner,towhichwerefer,collectively,asthe“committee”forpurposesofthissummary.ThecommitteehasthepowertodeterminetowhomandwhenAwardswillbegranted,determinetheamountofAwards(measuredincashorinsharesofourcommonunits),proscribeandinterpretthetermsandprovisionsofeachAwardagreement(thetermsofwhichmayvary),acceleratethevestingprovisionsassociatedwithanAward,delegatedutiesundertheLTIPandexecuteallotherresponsibilitiespermittedorrequiredundertheLTIP.ThemaximumaggregatenumberofcommonunitsthatmaybeissuedpursuanttoanyandallAwardsundertheLTIPshallnotexceed1,600,000commonunits,subjectto

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adjustmentduetorecapitalizationorreorganization,orrelatedtoforfeituresortheexpirationofAwards,asprovidedundertheLTIP.

IfacommonunitsubjecttoanyAwardisnotissuedortransferred,orceasestobeissuableortransferableforanyreason,including(butnotexclusively)becauseunitsarewithheldorsurrenderedinpaymentoftaxesoranyexerciseorpurchasepricerelatingtoanAwardorbecauseanAwardisforfeited,terminated,expiresunexercised,issettledincashinlieuofcommonunits,orisotherwiseterminatedwithoutadeliveryofunits,thosecommonunitswillagainbeavailableforissue,transfer, orexercisepursuanttoAwardsundertheLTIP,totheextentallowablebylaw.CommonunitstobedeliveredpursuanttoawardsunderourLTIPmaybecommonunitsacquiredbyourgeneralpartnerintheopenmarket,fromanyotherperson,directlyfromus,oranycombinationoftheforegoing.

SunCoke Compensatory Plans, Agreements, and Programs

Theexecutiveofficersofourgeneralpartner,includingourNEOs,areemployedbySunCokeandtheyparticipateintheemployeebenefitplans,includingretirementplans,andcompensationarrangementsofSunCoke.Inaccordancewiththeomnibusagreement,wereimburseoursponsor,SunCoke,fortheportionofcostsandexpensesincurredbysponsorentitiesthatareallocatedtous,includingthecostofsalariesandotheremployeebenefits,suchas401(k),pension,bonusesand health insurance benefits relating to SunCoke employees who provide services to us (including our NEOs). The following is a brief description of theseverance,retirement,andchangeofcontrolbenefitsprovidedbySunCoke.

Retirement Benefits. SunCokedoesnotmaintainanytax-qualifieddefinedbenefitpensionplan,orsupplementalexecutiveretirementplan.However, o urNEOshavetheopportunitytoparticipateinthefollowingSunCokeEnergy,Inc.retirementplans:

• SunCoke 401(k) Plan. SunCokeoffers all of its employees, including the NEOs, the opportunity to participate in the SunCoke401(k) Plan, formerlyknownasSunCokeEnergyProfitSharingandRetirementPlan,whichisataxqualifieddefinedcontributionplanwith401(k)andprofitsharingfeaturesdesignedprimarily tohelpparticipatingemployeesaccumulate fundsfor retirement. OurNEOsmaymakeelectivecontributions, andSunCokemakescompanycontributionsconsistingofamatchingcontributionequalto100percentofemployeecontributionsupto5percentofeligiblecompensationandanemployercontributionequalto3percentofeligiblecompensation.AllNEOsareeligibletoreceivethesecontributions.

• Savings Restoration Plan. TheSavingsRestorationPlan,orSRP,isanunfunded,nonqualifieddeferredcompensationplanadministeredbySunCokeandmadeavailabletoparticipantsintheSunCoke401(k)PlanwhosecompensationexceedstheIRSlimitsoncompensationthatcanbetakenintoaccountunderthatPlan($270,000for2017and$275,000for2018).UndertheSRP,employeescanmakeanadvanceelectiontodeferonapre-taxbasisupto50percentoftheportionoftheirsalaryandbonusthatexceedsthecompensationlimit.Suchamountswillbecreditedtoabookkeepingaccountestablishedforeachparticipantasofthedatetheamountswouldotherwisehavebeenpaidtotheparticipant.Employercontributionswillbecreditedtotheaccountsof each employee who elects to defer compensation and they consist of (1) a matching contribution equal to 100 percent of the first 5 percent ofcompensation deferred by the participant under the SRP and (2) an additional contribution equal to 3 percent of the compensation deferred by theparticipantundertheSRP.SunCokeEnergycanalsomakeadditionaldiscretionarycontributions.Participantsarefullyvestedintheirowndeferralsaswellasthe3percentemployercontribution,andwillvestintheemployermatchingcontributionsreceivedforplanyearsanddiscretionarycontributionsinaccordancewiththevestingscheduleinthe401(k)Plan,whichprovidesfor100percentvestingafterthreeyearsofservice.Participantscandirecttheinvestment of their bookkeeping accounts among the same investment alternatives available under the 401(k) Plan. Unless the participant electsotherwise, distributions are made in a lump sum on the first day of the seventh month following termination of employment with SunCoke (orimmediately to the participant’s beneficiary in the event of the participant’s earlier death). The participant can elect, prior to his or her first year ofparticipation, to receive a distribution in installments over twoto ten years instead of a lumpsumif he or she terminates due to retirement, which isdefinedasterminationafterattainingatleastage55withcombinedagepluscontinuousyearsofservice,equalto65years.Inaddition,aparticipantcanelect,concurrentlywiththeannualdeferralelection,toreceiveanin-servicelumpsumdistributionoftheamountheorsheelectstodeferforsuchyear,withsuchpaymentdatenotearlierthanthreeyearsfromtheendoftheyearinwhichtheelectionismade.Aparticipantcanchangethetimeormethodofdistributioninlimitedcircumstances.

Severance and Change in Control Benefits. Our NEOs participate in the SunCoke Energy Executive Involuntary Severance Plan and the SunCoke EnergySpecialExecutiveSeverancePlan.Thepurposeoftheseplansistorecognizeanexecutive’sservicetoSunCokeEnergyandprovideamarketcompetitivelevelofprotectionandassistanceifanexecutiveisinvoluntarilyterminated.

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• Special Executive Severance Plan. SunCoke's Special Executive Severance Plan provides severance to designated executives whose employment isterminatedbySunCokeotherthanforcause,deathordisability,orwhoresignforgoodreason(assuchtermsaredefinedinthePlan)withintwoyearsfollowingachangeincontrolofSunCoke.Severanceisgenerallypayableinalumpsum,equaltotwotimesthesumoftheexecutive’sannualbasesalaryandthegreaterof(i)100percentoftheexecutive’stargetannualincentiveineffectimmediatelybeforethechangeincontrolor,ifhigher,employmentterminationdate,or(ii)theaverageannualincentiveawardedtotheexecutivewithrespecttothethreeyearsendingbeforethechangeincontrolor,ifhigher,endingbeforetheemploymentterminationdate,withthemultipledependingontheexecutive’sposition.Executivesarealsoentitledto(x)aprorata portion of the current year Annual Incentive at Company performance if termination occurs after the first quarter of the calendar year, (y) thecontinuationofmedicalplanbenefits(includingdental) atactiveemployeeratesforthebenefit extensionperiodoftwoyears(whichrunconcurrentlywithCOBRA),and(z)continuationoflifeinsurancecoverageequaltoonetime’stheexecutive’sbasesalaryandoutplacementservices

• Executive Involuntary Severance Plan. TheExecutiveInvoluntarySeverancePlanprovidesseverancetodesignatedexecutiveswhoseemploymentisterminatedbySunCokeotherthanforcause(asdefinedinthePlan),deathordisability.Severanceispaidinmonthlyinstallmentsandrangesfromonetooneandhalftimesthesumoftheexecutive’sannualbasesalaryandtargetannualincentive,dependingontheexecutive’sposition.ExecutivesarealsoentitledtoaprorataportionofthecurrentyearAnnualIncentiveatCompanyperformanceifterminationoccursafterthefirstquarterofthecalendaryear,thecontinuation of medical planbenefits (excludingdental) at active employeerates for the salarycontinuationperiodof oneto oneanda half years(which run concurrently with COBRA), and continuation of life insurance coverage equal to one time’s the executive’s base salary and outplacementservices. Severanceis subject totheexecutionofareleaseofclaimsagainst SunCokeandits affiliates, includingus, at thetimeofterminationoftheexecutive’semployment.

Other SunCoke Benefits.

OurNEOsparticipate inthesamebasicbenefits packageandonthesametermsasother eligible SunCokeemployees. Thebenefits packageincludesthesavingsprogramdescribedabove,aswellasmedicalanddentalbenefits,disabilitybenefits,insurance(life,travelandaccident),deathbenefitsandvacationsandholidays.

Foradditionaldetailedinformationregardingthecompensatoryplans,agreementsandprogramsofSunCokeinwhichourNEOsparticipate,weencourageyoutoreadSunCokeEnergy,Inc.’s2019AnnualMeetingProxyStatement.

Compensation Committee Interlocks and Insider Participation

Aspreviouslydiscussed,ourgeneralpartner’sBoardofDirectorsisnotrequiredtomaintain,anddoesnotmaintain,acompensationcommittee.During2018,all compensation decisions with respect to our NEOs were made by the Compensation Committee of the Board of Directors of SunCoke, which is comprisedentirelyofindependentmembersofSunCoke’sBoard.Inaddition,noneoftheseindividualsreceiveanycompensationdirectlyfromusorourgeneralpartner.

Compensation Policies and Practices as They Relate to Risk Management

Wedonothaveanyemployees.WearemanagedandoperatedbythedirectorsandofficersofourgeneralpartnerandemployeesofSunCokeperformservicesonourbehalf.Wedonothaveanycompensationpoliciesorpracticesthatneedtobeassessedorevaluatedfortheeffectonouroperations.ForananalysisofanyrisksarisingfromSunCoke’scompensationpoliciesandpractices,pleasereadSunCoke’s2019ProxyStatement.

Board Report on Compensation

Neither we nor our general partner has a compensation committee. The Board of Directors of our general partner has reviewed and discussed withmanagementtheCompensationDiscussionandAnalysissetforthaboveandbasedonthisreviewanddiscussionhasapproveditforinclusioninthisForm10-K.

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Members of The Board:

• MichaelG.Rippey(Chairman)• JohnW.Somerhalder,II(ConflictsCommitteeChair)• AlvinBledsoe(AuditCommitteeChair)• MarthaZ.Carnes• FayWest• KatherineT.Gates• P.MichaelHardesty

Director Compensation

Currently,directorswhoarealsoemployeesofSunCokereceivenoadditionalcompensationforserviceonthegeneralpartner’sBoardofDirectorsoranycommitteesoftheBoard.Assuch,theyarenotincludedinthenarrativeortabulardisclosuresbelow.

Compensation Philosophy: TheBoardofDirectorsbelievesthatthecompensationprogramforindependentdirectorsshouldbedesignedto:(i)attractexperiencedandhighlyqualifiedindividuals;(ii)provideappropriatecompensationfortheircommitmentandcontributionstothePartnershipanditscommonunitholders;and(iii)aligntheinterestsoftheindependentdirectorsandunitholders.

Retainers and Fees: Thetablebelowsummarizesthecurrentstructureofourindependentdirectorcompensationprogram:

Summary of Independent Director Compensation

Mr. Alvin Bledsoe (1)Ms. Martha Z.

CarnesMr. John W.

Somerhalder IIAnnualRetainer(CashPortion) $ 72,000 $ 89,000 $ 99,000AnnualRetainer(CommonUnitPortion) 68,000 85,000 85,000SUBTOTAL(BaseRetainersOnly) 140,000 174,000 184,000 AuditCommitteeChairRetainer(Cash) 20,000 Notapplicable NotapplicableAuditCommitteeMemberRetainer(Cash) Notapplicable 10,000 10,000ConflictsCommitteeChairRetainer(Cash) Notapplicable Notapplicable 24,000ConflictsCommitteeMemberRetainer(Cash) Notapplicable 14,000 Notapplicable

TOTAL $ 160,000 $ 198,000 $ 218,000

(1) Mr.BledsoealsoservesasanindependentdirectorontheBoardofDirectorsof,SunCoke,wherehechairstheAuditCommittee,andiscompensatedbySunCokeEnergy,Inc.

Long-Term Incentive Plan: Eachofthegeneralpartner’sindependentdirectorsisentitledtoreceiveanumberofvestedcommonunits,paidquarterly,undertheSunCokeEnergyPartnersGPLLCLong-TermIncentivePlan.Thesecommonunits,representinglimitedpartnerinterestsinthePartnership,haveanaggregatefairmarketvalueof$85,000onanannualizedbasis.Thefairmarketvalueofeachquarterlypaymentiscalculatedasofthepaymentdate,bydividingone-fourthoftheaggregateportionoftheannualcommonunitretainervaluebytheaverageclosingpriceforacommonunitduringthetentradingdaysontheNYSEimmediatelypriortothepaymentdate.

Directors’ Deferred Compensation Plan: TheSunCokeEnergyPartners,L.P.Directors’DeferredCompensationPlan,orDeferredCompensationPlan,permitsthegeneralpartner’sindependentdirectorstodeferaportionoftheircashand/orcommonunitcompensation.PaymentsofcompensationdeferredundertheDirectors’DeferredCompensationPlanarerestrictedintermsoftheearliestandlatestdatesthatpaymentsmaybegin.PaymentsofcompensationdeferredundertheDeferredCompensationPlanwillbemadeat,orcommenceon,January15ofthecalendaryearfollowingthecalendaryearinwhichanindependentdirectorleavestheBoard,withanysuccessiveannualinstallmentpaymentstobemadenoearlierthanJanuary15ofeachsuchyear.Eachindependentdirectorhastheoptiontodeferhisorhercompensationintheformofphantomunitcredits,cashunitsoracombinationofboth.CashunitsaccrueinterestataratesetannuallybytheBoard.AphantomunitcreditistreatedasthoughinvestedinPartnershipcommonunits,butthephantomunitcreditsdonothavevotingrights.Phantomunitcreditsarecreditedwithdistributionequivalentrights(intheformofadditionalphantomunitcredits),ontheapplicabledate(s)forthePartnership’scashdistributions.Phantomunitcreditsaresettledin

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cashbasedupontheaverageclosingpriceforthePartnership’scommonunitsduringthetentradingdaysontheNYSEimmediatelypriortothepaymentdate.

Unit Ownership Guidelines : Thegeneralpartner’sindependentdirectorsarenotrequiredtoholdanyminimumamountofPartnershipcommonunits.PursuanttothePartnership’slimitedpartnershipagreement,theindependentmembersofthegeneralpartner’sConflictsCommitteearenotpermittedtoholdanyownershipinterest(includingcommonstock)inSunCokeEnergy,Inc.[NYSE:SXC].

Other Benefits : Aspartoftheircompensationpackage,thegeneralpartner'sindependentthedirectorsarereimbursedfortheirout-of-pocketexpensesrelatedtoattendanceatBoardandBoardCommitteemeetingsincluding:hotelrooms/lodging,meals,andtransportation(e.g.,commercialflights,trains,cars,parking,etc.).

Directors’ & Officers’ Insurance and Indemnification Agreements: Thegeneralpartner’slimitedliabilitycompanyoperatingagreement(the“LLCAgreement”)requiresthatthegeneralpartnerindemnifyitsdirectorsandofficers,tothefullestextentpermittedbyapplicablelaw,againstanycosts,expenses(includinglegalfeesandexpenses)andotherliabilitiestowhichtheymaybecomesubjectbyreasonoftheirservicetothegeneralpartnerand/orthePartnership.Thegeneralpartnermaintainsanappropriateprogramofliabilityinsuranceforitsdirectorsandofficersandhasenteredintoindemnificationagreementswithitsindependentdirectorsandcertainkeyexecutiveofficers.ThisinsuranceandtheindemnificationagreementssupplementtheindemnificationobligationscontainedinprovisionsintheLLCAgreement.

Director Compensation Table

Thefollowingtablesetsforththecompensationforourindependentdirectorsinfiscal2018:

Name (1)

FeesEarned or

Paid in Cash (2)

UnitAwards (3)

All OtherCompensation (4)

Total

AlvinBledsoe $72,000 $68,000 $4,911 $144,911MarthaZ.Carnes $89,000 $85,000 $2,998 $176,998JohnW.Somerhalder,II $99,000 $85,000 $12,999 $196,999C.ScottHobbs(5) $— $— $998,285 $998,285WayneL.Moore(5) $— $— $432,046 $432,046NancyM.Snyder(5) $— $— $738,652 $738,652

NOTES TO TABLE :

(1) Messrs. Hobbs and Moore, and Ms. Snyder, each resigned from our general partner’s Board of Directors effective September 1, 2017, and Messrs.BledsoeandSomerhalder,andMs.Carnes,wereappointedtoourgeneralpartner’sBoardofDirectorseffectiveSeptember1,2017.

(2) Theamountsinthiscolumnincludeall retainerandmeetingfeespaidordeferredpursuanttotheDirectors’ DeferredCompensationPlanin2018.Ascompensationfortheirtimeandeffortspentduringthefourthquarterof2018ontheSimplificationTransaction,Ms.CarnesandMr.Somerhalderwerepaid$2,000eachforConflictsCommitteemeetingattendedinpersonand$1,000foreachConflictsCommitteemeetingattendedtelephonically.

(3) Theamountsinthiscolumnrepresentthefair valueofthecommonunit retainerpaymentsmadetoeachdirectorinfiscal 2018asofthedateofeachquarterlypayment,calculatedpursuanttoFASBASCTopic718.ThenumberofcommonunitsgrantedtoeachindependentdirectorwasdeterminedbydividingthequarterlycommonunitretainerpaymentbytheaverageclosingpriceofaPartnershipcommonunitforthetentradingdaysprecedingthepaymentdatein2018.Messrs.Bledsoe,andSomerhaldereachdeferredtheirrespectivecommonunitretainersintotheDirectors’DeferredCompensationPlan.

(4) Theamountsshowninthiscolumnreflectthevalueofdistributionequivalentsearnedondeferredcompensationaccountbalancesduring2018.

(5) OnJanuary22,2018,ourformerdirectors, Messrs. HobbsandMoore,andMs.Snyderreceivedpaymentincashfortheentirebalanceofall deferredcompensationcreditedtotheirrespectivedeferredcompensationaccounts.InaccordancewiththetermsoftheDirectors’DeferredCompensationPlan,compensationdeferredintheformofphantomunitcreditswasvaluedusingtheaverageclosingpriceforourcommonunitsfortheperiodoften(10)tradingdaysimmediatelypriortoJanuary15,2018.Mr.Hobbsreceivedacashpaymentof$998,285,Mr.Moorereceivedacashpaymentof$432,046,andMs.Snyderreceivedacashpaymentof$738,652.

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Business Expenses: Eachindependentdirectorisreimbursedforout-of-pocketexpensesinconnectionwithattendingmeetingsoftheBoardofDirectorsorcommittees,includingroom,mealsandtransportationtoandfromthemeetings.

Indemnification: Eachdirectorwillbeindemnifiedfullybyusforactionsassociatedwithbeingamemberofourgeneralpartner’sBoardofDirectors,tothefullestextentpermittedunderapplicablestatelaw.

Independent Director Stock Ownership Guidelines: Consistentwithourpartnershipagreement,Ms.CarnesandMr.Somerhalder,asindependentdirectorsnototherwiseaffiliatedwithourgeneralpartner,orSunCokeEnergy,Inc.,areexpectednottomaintainanyownershipinterestinthecommonstockofSunCoke.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

ThefollowingtablesetsforthasofJanuary31,2019,thebeneficialownershipofcommonunitsofSunCokeEnergyPartners,L.P.heldby:(i)affiliatesofourgeneralpartner;(ii)eachofthecurrentdirectorsandnamedexecutiveofficersofourgeneralpartner;and(iii)allcurrentdirectorsandexecutiveofficersofourgeneralpartnerasagroup.

Name of Beneficial Owner (1)

CommonUnits

BeneficiallyOwned

Percentage ofCommon

UnitsBeneficially

Owned

SunCoal&CokeLLC(2) 28,499,899 61.7%MichaelG.Rippey — *FayWest — *P.MichaelHardesty 6,031 *GaryP.Yeaw 2,500 *KatherineT.Gates — *AllisonS.Lausas 300 *AlvinBledsoe(3) 1,000 *MarthaZ.Carnes

1,668 *JohnW.Somerhalder,II(3) — *Alldirectorsandexecutiveofficersasagroup(9people) 11,499 *

* Lessthanonepercentofouroutstandingcommonunits.

(1) ThebusinessaddressforSunCokeEnergyPartners,L.P.andeachindividualis1011WarrenvilleRoad,Suite600,Lisle,Illinois60532.

(2) SunCoal&CokeLLCisawhollyowneddirectsubsidiaryofSunCokeEnergy,Inc.,andisthesolememberofourgeneralpartner.

(3) CertaindirectorshaveelectedtodeferalloraportionoftheircompensationintophantomunitcreditsundertheSunCokeEnergyPartners,L.P.Directors’Deferred Compensation Plan described in the section entitled “Executive Compensation-Director Compensation---Directors' Deferred CompensationPlan.” Each phantom unit credit is treated as if it were invested in common units representing limited partnership interests in the Partnership, anddistributionequivalentsarecreditedintheformofadditionalphantomunitcredits.Thesephantomunitcreditsdonothavevotingrights.Suchphantomunitcreditsultimatelywillbesettledincashfollowingterminationofthedirector’sserviceontheBoard,basedupontheaverageclosingpriceforourcommonunitsforthetentradingdaysontheNYSEimmediatelypriortothepaymentdate.Thefollowingdirectorsholdsuchphantomunitcredits:Mr.Bledsoe:6,188.31phantomunitcredits;Ms.Carnes:5,847.96phantomunitcreditsandMr.Somerhalder:16,723.64phantomunitcredits.

Beneficial Stock Ownership of Unaffiliated Persons Owning More Than Five Percent of Our Common Units

AsofJanuary31,2019,therewerenoreportedcommonunitsbeneficiallyownedbyunitholders,nototherwiseaffiliatedwithus,inamountsgreaterthanfivepercentoftheoutstandingcommonunitsrepresentinglimitedpartnershipinterestsinthePartnership.

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Beneficial Ownership of Our Sponsor’s Common Stock by the Directors and Executive Officers of Our General Partner

ThefollowingtablesetsforthcertaininformationregardingbeneficialownershipofSunCokeEnergy,Inc.’scommonstock,asofJanuary31,2019,bydirectorsofourgeneralpartner,byeachnamedexecutiveofficerandbyalldirectorsandexecutiveofficersofourgeneralpartner,asagroup.Unlessotherwisenoted,eachindividualexercisessolevotingorinvestmentpoweroverthesharesofSunCokecommonstockshowninthetable.Forpurposesofthistable,beneficialownershipincludessharesofSunCokecommonstockastowhichthepersonhassoleorsharedvotingorinvestmentpowerandalsoanysharesofSunCoke,Inc.commonstockthatsuchpersonhastherighttoacquirewithin60daysofJanuary31,2019,throughtheexerciseofanyoption,warrant,orright.

Name

Shares of SunCokeEnergy, Inc.

Common Stock

Right to AcquireWithin 60 Days

After January 31,2019 (1)

Total

Percentof SunCokeEnergy, Inc.

Common StockOutstanding

MichaelG.Rippey — 24,288 24,288 *FayWest 28,416 281,915 310,331 *

P.MichaelHardesty(2) 75,021 166,389 241,410 *GaryP.Yeaw 44,070 153,294 197,364 *

KatherineT.Gates(3) 7,916 84,853 92,769 *AllisonS.Lausas 5,006 18,443 23,449 *

AlvinBledsoe(4) 5,934 — 5,934 *

MarthaZ.Carnes(5) — — — *

JohnW.Somerhalder,II(5) — — — *Alldirectorsandexecutiveofficersasagroup(9people) 166,363 729,182 895,545 *

* LessthanonepercentofSunCoke'soutstandingcommonstock.

(1) TheamountsshowninthiscolumnreflectsharesofSunCokeEnergy,Inc.commonstockwhichthepersonslistedhavetherighttoacquireasaresultofthevestingofstockoptions,conversionofrestrictedshareunits,and/orsettlementofperformanceshareunitsat100%oftarget,within60daysafterJanuary31,2019undercertainplans,includingtheSunCokeEnergy,Inc.Long-TermPerformanceEnhancementPlan.

(2) Mr.Hardestyalsoholds9,981units,valuedat$4.61/unit,intheSunCoke401(k)Plan,and8,949units,valuedat$4.90/unit,intheSunCokeEnergy,Inc.SavingsRestorationPlan("SRP").Equivalentshareownershiprepresentedbytheseunitswasderived,ineachcase,bymultiplyingthenumberofunitsheldbythecurrentvalueperunit,andthendividingby$11.24/commonshare(NYSEclosingpriceonJanuary31,2019).Thus,Mr.Hardesty’sparticipationinthesefundsrepresentsanaggregateshareequivalentpositionofapproximately7,995sharesofSunCoke.Thispositionisnotreflectedinthedatashownintheforegoingtable.

(3) Ms.Gatesalsoholds3,433unitsintheSRP.Equivalentshareownershiprepresentedbytheseunitswasderivedbymultiplyingthenumberofunitsheldby$4.90/unit(currentvalue),andthendividingby$11.24/commonshare(NYSEclosingpriceonJanuary31,2019).Thus,Ms.Gates’participationintheSRPrepresentsashareequivalentpositionofapproximately1,497sharesofSunCoke.Thispositionisnotreflectedinthedatashownintheforegoingtable.

(4) Mr.BledsoeisalsoadirectorofSunCokeEnergy,Inc.andhehaselectedtodeferaportionofhiscompensationfromSunCokeintheformofShareUnitsundertheSunCokeEnergy,Inc.Directors’DeferredCompensationPlan.Mr.Bledsoecurrentlyholds67,906.49ShareUnits.TheseShareUnitsarenotreflectedinthedatashownintheforegoingtable.EachShareUnitistreatedasifitwereinvestedinSunCokecommonstock,anddividendequivalents(ifany)arecreditedintheformofadditionalShareUnits.TheseShareUnitsdonothavevotingrights.SuchShareUnitsultimatelywillbesettledincash(baseduponaten-dayaverageclosingpricefortrading

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ofSunCokecommonstockontheNYSEpriortopayment)followingterminationofMr.Bledsoe’sserviceonSunCoke’sBoardofDirectors.AdescriptionoftheSunCokeEnergy,Inc.Directors’DeferredCompensationPlanwillbeincludedintheproxystatementforSunCoke’s2019annualmeetingofstockholderswhichwillbeavailableuponitsfilingontheSEC’swebsiteatwww.sec.govandonSunCoke’swebsiteatwww.suncoke.comatthe“Investors-FinancialReports-AnnualReport&Proxy”tab.SunCoke’s2019ProxyStatementalsowillbeavailablefreeofchargefromtheCorporateSecretaryofourgeneralpartner.

(5) Consistentwithourpartnershipagreement,Ms.CarnesandMr.Somerhalder,asindependentdirectorsotherwiseunaffiliatedwithourgeneralpartner,orSunCoke,areexpectednottomaintainanyownershipinterestinthecommonstockofSunCokeEnergy,Inc.

Securities Authorized for Issuance under Equity Compensation Plans

Thefollowingtableprovidesinformation,asofDecember31,2018,regardingPartnershipcommonunitsthatmaybeissueduponconversion(assumingaone-for-oneconversion)ofsecuritiesgrantedunderthegeneralpartner’sLong-TermIncentivePlan.Formoreinformationaboutthisplan,whichdidnotrequireapprovalbythePartnership’slimitedpartners,referto"Item11.ExecutiveCompensation-Long-TermPerformanceEnhancementPlan.”

EQUITY COMPENSATION PLAN INFORMATION (1)

Plan Category

(a)Number of securities to be issued

upon exercise of outstandingoptions, warrants and rights

(b)Weighted-average exercise price ofoutstanding options warrants and

rights

(c)Number of securities remaining

available for future issuance underequity compensation plans

(excluding securities reflected incolumn (a))

Equitycompensationplansapprovedbysecurityholders NotApplicable NotApplicable NotApplicableEquitycompensationplansnotapprovedbysecurity

holders NotApplicable NotApplicable 1,554,640

(1) TheonlysecuritiesissuedunderSunCokeEnergyPartners,L.P.Long-TermIncentivePlansincethePartnership’sinitialpublicofferinghavebeencommonunitsissuedtodirectorsinpaymentoftheircommonunitretainers.AlthoughpermittedbythetermsoftheLong-TermIncentivePlan,norestrictedunits,unitappreciationrights,unitoptions,orotherunit-basedawardsconvertibleintocommonunitshavebeengrantedtoexecutiveofficersordirectors.

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Item 13. Certain Relationships and Related Transactions, and Director Independence

SunCoke,throughitsSunCoal&Cokesubsidiary,beneficiallyowns28,268,728commonunitsrepresentinganaggregatelimitedpartnershipinterestinusof60.4percent,andindirectlyownsandcontrolsourgeneralpartner.SunCokealsoappointsallofthedirectorsofourgeneralpartner.Inaddition,ourgeneralpartnerownsa2percentgeneralpartnerinterestinusandallofourIDRs.

Thetermsofthetransactionsandagreementsdisclosedinthissectionweredeterminedbyandamongaffiliatedentitiesand,consequently, arenottheresult of arm’slengthnegotiations. Thesetermsandagreements are not necessarily at least as favorable tousasthetermsthat couldhavebeenobtainedfromunaffiliatedthirdparties.

Distributions and Payments to Our General Partner and Its Affiliates

ThefollowingtablesummarizesthedistributionsandpaymentstobemadebyustoourgeneralpartneranditsaffiliatesinconnectionwiththeongoingoperationandanyliquidationofSunCokeEnergyPartners,L.P.

See"Item5.MarketforRegistrant'sCommonEquity,RelatedStockholdersMattersandIssuerPurchasesofEquitySecurities-ThePartnership'sDistributionPolicy,"foracompletedescriptionofthedistributionswemaketoourgeneralpartneranditsaffiliates.

Operational Stage

Paymentstoourgeneralpartneranditsaffiliates UnderthetermsofouromnibusagreementwithSunCoke,ourgeneralpartneranditsaffiliatesdonotreceiveamanagementfeeorothercompensationforitsmanagementofourpartnership,butwereimburseourgeneralpartneranditsaffiliatesforalldirectandindirectexpensestheyincurandpaymentstheymakeinprovidinggeneralandadministrativeservicesonourbehalf.Ourpartnershipagreementdoesnotsetalimitontheamountofexpensesforwhichourgeneralpartneranditsaffiliatesmaybereimbursed.Ourpartnershipagreementprovidesthatourgeneralpartnerwilldetermineingoodfaiththeexpensesthatareallocabletous.

Withdrawalorremovalofourgeneralpartner Ifourgeneralpartnerwithdrawsorisremoved,itsgeneralpartnerinterestanditsIDRswilleitherbesoldtothenewgeneralpartnerforcashorconvertedintocommonunits,ineachcaseforanamountequaltothefairmarketvalueofthoseinterests.

Liquidation Stage

Liquidation Uponourliquidation,thepartners,includingourgeneralpartner,willbeentitledtoreceiveliquidatingdistributionsaccordingtotheirparticularcapitalaccountbalances.

Agreements with Affiliates

WehaveenteredintocertainagreementswithSunCoke,asdescribedbelow.Whilewebelievetheseagreementsareontermsnolessfavorabletousthanthosethatcouldhavebeennegotiatedwithunaffiliatedthirdparties,theyarenottheresultofarm’s-lengthnegotiations.

Arrangements Between SunCoke Energy and the Partnership

Omnibus Agreement

TheomnibusagreementwithSunCokeandourgeneralpartneraddressescertainaspectsofourrelationship,including:

BusinessOpportunities.Wehaveapreferentialrighttoinvestin,acquireandconstructcokemakingfacilitiesintheU.S.andCanada.SunCokehasapreferentialrighttoallotherbusinessopportunities.IfwedecidenottopursueanopportunitytoconstructanewcokemakingfacilityandSunCokeoranyofitscontrolledaffiliatesundertakesuchconstruction,thenuponcompletionofsuchconstruction,wewillhavetheoptiontoacquiresuchfacilityataprice

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sufficienttogiveSunCokeaninternalrateofreturnonitsinvestedcapitalequaltothesumofSunCoke’sweightedaveragecostofcapital(asdeterminedingoodfaithbySunCoke)and6.0percent.Ifwedecidenottopursueanopportunitytoinvestinoracquireacokemakingfacility,SunCokeoranyofitscontrolledaffiliatesmayundertakesuchaninvestmentoracquisitionandifsuchacquisitioniscompletedbySunCoke,thecokemakingfacilitysoacquiredwillbesubjecttotherightoffirstofferdescribedbelow.IfabusinessopportunityincludescokemakingfacilitiesbutsuchfacilitiesrepresentaminorityofthevalueofsuchbusinessopportunityasdeterminedbySunCokeingoodfaith,SunCokewillhaveapreferentialrightastosuchbusinessopportunity.TheseagreementsastobusinessopportunitiesshallapplyonlysolongasSunCokecontrolsus,andshallnotapplywithrespecttoanybusinessopportunitySunCokeoranyofitscontrolledaffiliateswasactivelypursuingatthetimeoftheclosingofourIPO.

Right of First Offer . If SunCokeor anyof its controlled affiliates decides to sell, conveyor otherwise transfer to a third-party a cokemaking facilitylocatedintheU.S.orCanadaoraninteresttherein,weshallhavearightoffirstofferastosuchfacility.SunCokeshallhavethesamerightoffirstofferifwedecidetosell,conveyorotherwisetransfertoathird-partyanycokemakingfacilityoraninteresttherein.Intheeventapartydecidestosell,conveyorotherwisetransferacokemakingfacility,itwilloffertheotherparty,referredtoastheROFOParty,suchfacilitywithaproposedpriceforsuchassets.IftheROFOPartydoesnotexerciseitsright,thesellershallhavetherighttocompletetheproposedtransaction,ontermsnotmateriallymorefavorabletothebuyerthanthelastwrittenofferproposedduringnegotiationswiththeROFOParty,withathird-partywithin270days.Ifthesellerfailstocompletesuchatransactionwithin270days,thentherightoffirstofferisreinstated.ThisrightoffirstoffershallapplyonlysolongasSunCokecontrolsus.

Indemnity.SunCokewillindemnifythePartnershipwithrespecttoremediationarisingfromanyenvironmentalmatterdiscoveredandidentifiedasrequiringremediationpriortothecontributionbySunCoketousofaninterestintheHaverhill,MiddletownandGraniteCity(Gateway)cokemakingfacilities,exceptforanyliabilityorincreaseinliabilityresultingfromchangesinenvironmentalregulations;provided,however,that,ineachcase,SunCokewillbedeemedtohavecontributedinsatisfactionofthisobligation,asoftheeffectivedateofthecontributionofaninterestinthesecokemakingfacilities,theamountidentifiedintheapplicablecontributionagreementasbeingreservedtopre-fundexistingenvironmentalremediationprojects.

WewillindemnifySunCokeforeventsrelatingtoouroperationsexcepttotheextentthatweareentitledtoindemnificationbySunCoke.

Real Property .SunCokewilleithercureorfullyindemnifyusforlossesresultingfromanymaterialtitledefectsatthepropertiesownedbytheentitiesinwhichwehaveacquiredaninterestfromSunCoke,totheextentthatsuchdefectsinterferewith,orreasonablycouldbeexpectedtointerferewith,theoperationsoftherelatedcokemakingfacilities.

License.SunCokehasgrantedusaroyalty-freelicensetousethename“SunCoke”andrelatedmarks.Additionally,SunCokewillgrantusanon-exclusiverighttouseallofSunCoke’scurrentandfuturecokemakingandrelatedtechnology.Wehavenotpaidandwillnotpayaseparatelicensefeefortherightswereceiveunderthelicense.

ExpensesandReimbursement.SunCokewillcontinuetoprovideuswithcertaingeneralandadministrativeservices,andwewillreimburseSunCokeforalldirectcostsandexpensesincurredonourbehalfandtheportionofSunCoke’scorporateandothercostsandexpensesattributabletoouroperations.Additionally,wehaveagreedtopayallfees(i)dueunderourrevolvingcreditfacilityand/orexistingseniornotes;and(iii)inconnectionwithanyfuturefinancingarrangemententeredintoforthepurposeofamending,modifying,orreplacingourrevolvingcreditfacilityorourseniornotes.

Theomnibusagreementcanbeamendedbywrittenagreementofallpartiestotheagreement.However,wemaynotagreetoanyamendmentormodificationthatwould,inthereasonablediscretionofourgeneralpartner,beadverseinanymaterialrespecttotheholdersofourcommonunitswithoutpriorapprovaloftheconflictscommittee.SolongasSunCokecontrolsourgeneralpartner,theomnibusagreementwillremaininfullforceandeffectunlessmutuallyterminatedbytheparties.IfSunCokeceasestocontrolourgeneralpartner,theomnibusagreementwillterminate,provided(i)theindemnificationobligationsdescribedaboveand(ii)ournon-exclusiverighttouseallofSunCoke’sexistingcokemakingandrelatedtechnologywillremaininfullforceandeffectinaccordancewiththeirterms.

Procedures for Review, Approval and Ratification of Transactions with Related Persons

Ourgeneralpartnerhasadoptedpoliciesforthereview,approvalandratificationoftransactionswithrelatedpersons.Theboardhasalsoadoptedawrittencodeofbusinessconductandethics,underwhichadirectorisexpectedtobringtotheattentionofthechiefexecutiveofficerortheboardanyconflictorpotentialconflictofinterestthatmayarisebetweenthedirectororanyaffiliateofthedirector,ontheonehand,andusorourgeneralpartnerontheother.Theresolutionofanysuchconflictorpotentialconflictshould,atthediscretionoftheboardinlightofthecircumstances,bedeterminedbyamajorityofthedisinteresteddirectors.

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Ifaconflictorpotentialconflictofinterestarisesbetweenourgeneralpartneroritsaffiliates,ontheonehand,andusorourunitholders,ontheotherhand,theresolutionofanysuchconflictorpotentialconflictshouldbeaddressedbytheBoardofDirectorsofourgeneralpartnerinaccordancewiththeprovisionsofourpartnershipagreement.Atthediscretionoftheboardinlightofthecircumstances,theresolutionmaybedeterminedbytheboardinitsentiretyorbytheconflictscommitteeoftheBoardofDirectors.Pursuanttoourcodeofbusinessconduct,executiveofficersarerequiredtoavoidconflictsofinterestunlessapprovedbytheBoardofDirectorsofourgeneralpartner.

Inthecaseofanysaleofequitybyusinwhichanowneroraffiliateofanownerofourgeneralpartnerparticipates,ourpracticeistoobtainapprovaloftheboardforthetransaction.Theboardwilltypicallydelegateauthoritytosetthespecifictermstoapricingcommittee.Actionsbythepricingcommitteewillrequireunanimousapproval.ThecodeofbusinessconductandethicsdescribedabovewereadoptedinconnectionwiththeclosingofourIPO,andasaresult,thetransactionsdescribedabovewerenotreviewedaccordingtosuchprocedures.

Director Independence

See“Item10.Directors,ExecutiveOfficersandCorporateGovernance”forinformationregardingthedirectorsofourgeneralpartnerandindependencerequirementsapplicablefortheBoardofDirectorsofourgeneralpartneranditscommittees.

Item 14. Principal Accounting Fees and Services

Audit and Non-Audit Fees

KPMGservedasthePartnership'sprincipalindependentpublicaccountant.Thefollowingtableshowsthefeesbilledforaudit,audit-relatedservicesandallotherservicesforeachofthelasttwoyears:

Audit and Non-Audit Fees

2018 2017

Audit $ 795,919 $ 864,475

Audit Committee Pre-Approval Policy

Asoutlinedinitscharter,theAuditCommitteeoftheboardofdirectorsofourgeneralpartnermaintainsanauditorindependencepolicythatmandatesthattheAuditCommitteeofitsboardofdirectorspre-approvetheauditandnon-auditservicesandrelatedbudgetinadvance.Thepolicyidentifies:

(1) theguidingprinciplesthatmustbeconsideredbytheAuditCommitteeinapprovingservicestoensurethattheauditor’sindependenceisnotimpaired;

(2) describestheaudit,audit-relatedandtaxservicesthatmaybeprovidedandthenon-auditservicesthatareprohibited;and

(3) setsforthpre-approvalrequirementsforallpermittedservices.

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Insomecases,pre-approvalisprovidedbythefullAuditCommitteefortheapplicablefiscalyearforaparticularcategoryorgroupofservices,subjecttoanauthorizedamount.Inothercases,theAuditCommitteespecificallypre-approvesservices.Toensurecompliancewiththepolicy,thepolicyrequiresthatourVicePresidentandControllerreporttheamountoffeesincurredforthevariousservicesprovidedbytheauditornotlessfrequentlythansemiannually.TheAuditCommitteehasdelegatedauthoritytoitsChairtopre-approveoneormoreindividualauditorpermittednon-auditservicesforwhichestimatedfeesdonotexceed$50,000, as well as adjustments to any estimated pre-approval fee thresholds up to$25,000for any individual service. Any such pre-approvals must then bereportedatthenextscheduledmeetingoftheAuditCommittee.Alloftheauditfeesshownonthetableabovewerepre-approvedbytheAuditCommittee.

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PART IV

Item 15. Exhibits, Financial Statement Schedules

(a) thefollowingdocumentsareincludedwiththefilingofthisreport:

1 Consolidatedfinancialstatements

TheconsolidatedfinancialstatementsaresetforthunderItem8ofthisreport.

2 Financialstatementschedules:

Financialstatementschedulesareomittedbecauserequiredinformationisshownelsewhereinthisreport,isnotnecessaryorisnotapplicable.

3 Exhibits:

ExhibitNumber Description2.1

ContributionAgreement,datedasofJanuary12,2015,byandamongSunCoal&CokeLLC,SunCokeEnergyPartners,L.P.,SunCokeEnergy,Inc.and,solelywithrespecttoSection2.9thereof,GatewayEnergy&CokeCompany,LLC,incorporatedbyreferencetoExhibit2.1totheCurrentReportonForm8-K(FileNo.001-35782)filedonJanuary13,2015

2.2

ContributionAgreement,datedasofJuly20,2015,byandbetweenRavenEnergyHoldings,LLCandSunCokeEnergyPartners,L.P.,incorporatedbyreferencetoExhibit2.1totheCurrentReportonForm8-K(FileNo.001-35782)filedonAugust18,2015.

2.3

AgreementandPlanofMergerdatedasofFebruary4,2019,byandamongSunCokeEnergy,Inc.,SCEnergyAcquisitionLLC,SunCokeEnergyPartners,L.P.,andSunCokeEnergyPartnersGPLLC.(incorporatedbyreferencetoExhibit2.1ofthecurrentReportonform8-K,(fileNo.001-35782)filedFebruary5,2019.)

3.1

CertificateofLimitedPartnershipofSunCokeEnergyPartners,L.P.incorporatedbyreferencetoExhibit3.1totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

3.2

FirstAmendedandRestatedAgreementofLimitedPartnershipofSunCokeEnergyPartners,L.P.,datedasofJanuary24,2013,incorporatedbyreferencetoExhibit3.1totheCurrentReportonForm8-K(FileNo.001-35782)filedonJanuary24,2013

3.2.1

AmendmentNo.1toFirstAmendedandRestatedAgreementofLimitedPartnershipofSunCokeEnergyPartners,L.P.,datedDecember23,2015,incorporatedbyreferencetoExhibit3.1totheCurrentReportonForm8-K(FileNo.001-35782)filedonDecember30,2015.

3.2.2

AmendmentNo.2toSecondAmendedandRestatedAgreementofLimitedPartnershipofSunCokeEnergyPartners,L.P.,datedOctober17,2017,incorporatedbyreferencetoExhibit3.1totheCurrentReportonForm8-K(FileNo.001-35782)filedonOctober17,2017

4.1

SeniorNotesIndenture,datedasofMay24,2017,byandamongSunCokeEnergyPartners,L.P.,SunCokeEnergyPartnersFinanceCorp.,theGuarantorsnamedtherein,andTheBankofNewYorkMellon,astrustee,incorporatedbyreferencetoExhibit4.1totheCurrentReportonForm8-K(FileNo.001-35782)filedonMay25,2017.

10.1

OmnibusAgreement,datedJanuary24,2013,incorporatedbyreferencetoExhibit10.2totheCurrentReportonForm8-K(FileNo.001-35782)filedonJanuary24,2013

10.1.1

AmendmentNo.1toOmnibusAgreement,datedMarch17,2014,incorporatedbyreferencetoExhibit10.1totheQuarterlyReportonForm10-Q(FileNo.001-35782)filedonOctober28,2014

10.1.2 AmendmentNo.2toOmnibusAgreement,datedasofJanuary13,2015,incorporatedbyreferencetoExhibit10.4.2totheAnnualReportonForm10-K(FileNo.001-35782)filedonFebruary24,2015.

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10.2

CreditAgreement,datedMay24,2017,incorporatedbyreferencetoExhibit10.2totheCurrentReportonForm8-K(FileNo.001-35782)filedonMay25,2017.

10.3†

CokePurchaseAgreement,datedasofOctober28,2003,byandbetweenHaverhillCokeCompanyLLC,ArcelorMittalClevelandInc.(f/k/aISGClevelandInc.)andArcelorMittalIndianaHarborInc.(f/k/aISGIndianaHarborInc.),incorporatedbyreferencetoExhibit10.6totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.3.1†

AmendmentNo.1toCokePurchaseAgreement,datedasofDecember5,2003,byandbetweenHaverhillCokeCompanyLLC,ArcelorMittalClevelandInc.(f/k/aISGClevelandInc.)andArcelorMittalIndianaHarborInc.(f/k/aISGIndianaHarborInc.),incorporatedbyreferencetoExhibit10.7totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.3.2†

LetterAgreement,datedasofMay7,2008,betweenArcelorMittalUSAInc.,HaverhillCokeCompanyLLC,JewellCokeCompany,L.P.andISGSparrowsPointLLC,servingasAmendmentNo.2totheCokePurchaseAgreement,byandbetweenHaverhillCokeCompanyLLC,ArcelorMittalClevelandInc.(f/k/aISGClevelandInc.)andArcelorMittalIndianaHarborInc.(f/k/aISGIndianaHarborInc.),incorporatedbyreferencetoExhibit10.8totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.3.3†

AmendmentNo.3toCokePurchaseAgreement,datedasofMay8,2008,byandbetweenHaverhillCokeCompanyLLC,ArcelorMittalClevelandInc.(f/k/aISGClevelandInc.)andArcelorMittalIndianaHarborInc.(f/k/aISGIndianaHarborInc.),incorporatedbyreferencetoExhibit10.9totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.3.4†

AmendmentNo.4toCokePurchaseAgreement,datedasofJanuary26,2011,byandbetweenHaverhillCokeCompanyLLC,ArcelorMittalClevelandInc.(f/k/aISGClevelandInc.)andArcelorMittalIndianaHarborInc.(f/k/aISGIndianaHarborInc.),incorporatedbyreferencetoExhibit10.10totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.3.5†

AmendmentNo.5toCokePurchaseAgreement,datedasofJanuary26,2012,byandbetweenHaverhillCokeCompanyLLC,ArcelorMittalClevelandInc.(f/k/aISGClevelandInc.)andArcelorMittalIndianaHarborInc.(f/k/aISGIndianaHarborInc.),incorporatedbyreferencetoExhibit10.11totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.3.6†

AmendmentNo.6toCokePurchaseAgreement,datedasofMarch15,2012,byandbetweenHaverhillCokeCompanyLLC,ArcelorMittalClevelandInc.(f/k/aISGClevelandInc.)andArcelorMittalIndianaHarborInc.(f/k/aISGIndianaHarborInc.),incorporatedbyreferencetoExhibit10.12totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.4†

CokePurchaseAgreement,datedasofAugust31,2009,byandbetweenHaverhillCokeCompanyLLCandAKSteelCorporation,incorporatedbyreferencetoExhibit10.13totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.4.1†

AmendmentNo.1toCokePurchaseAgreement,datedasofMay8,2012,byandbetweenHaverhillCokeCompanyLLCandAKSteelCorporation,incorporatedbyreferencetoExhibit10.14totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.5†

EnergySalesAgreement,datedasofAugust31,2009,byandbetweenHaverhillCokeCompanyLLCandAKSteelCorporation,incorporatedbyreferencetoExhibit10.15totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.5.1†

SupplementalEnergySalesAgreement,datedasofJune1,2012,byandbetweenHaverhillCokeCompanyLLCandAKSteelCorporation,incorporatedbyreferencetoExhibit10.16totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.6†

CokeSaleandFeedWaterProcessingAgreement,datedasofFebruary28,2008,byandbetweenGatewayEnergy&CokeCompany,LLCandU.S.SteelCorporation,incorporatedbyreferencetoExhibit10.32toSunCokeEnergyInc.'sAmendmentNo.7toRegistrationStatementonFormS-1(FileNo.333-173022)filedJuly20,2011

10.6.1†

AmendmentNo.1toCokeSaleandFeedWaterProcessingAgreement,datedasofNovember1,2010,byandbetweenGatewayEnergy&CokeCompany,LLCandU.S.SteelCorporation,incorporatedbyreferencetoExhibit10.33toSunCokeEnergy,Inc.'sAmendmentNo.2toRegistrationStatementonFormS-1(FileNo.333-173022)filedJune3,2011

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10.6.2

AmendmentNo.2toCokeSaleandFeedWaterProcessingAgreement,datedasofJuly6,2011,byandbetweenGatewayEnergy&CokeCompany,LLCandU.S.SteelCorporation,incorporatedbyreferencetoExhibit10.9.2totheAnnualReportonForm10-K(FileNo.001-35782)filedonFebruary24,2015.

10.6.3†

AmendmentNo.3toCokeSaleandFeedWaterProcessingAgreement,datedasofJanuary12,2015,byandamongGatewayEnergy&CokeCompany,LLC,GatewayCogenerationCompanyLLCandU.S.SteelCorporation,incorporatedbyreferencetoExhibit10.9.3totheAnnualReportonForm10-K(FileNo.001-35782)filedonFebruary24,2015.

10.7

AmendedandRestatedCokePurchaseAgreement,datedasofSeptember1,2009byandbetweenMiddletownCokeCompany,LLCandAKSteelCorporation,incorporatedhereinbyreferencetoExhibit10.17totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.8

SecondAmendedandRestatedEnergySalesAgreement,datedasofMay8,2012,byandbetweenMiddletownCokeCompany,LLCandAKSteelCorporation,incorporatedhereinbyreferencetoExhibit10.18totheRegistrationStatementonFormS-1(FileNo.333-183162)filedAugust8,2012

10.9**

SunCokeEnergyPartners,L.P.Long-TermIncentivePlan,incorporatedbyreferencetoExhibit10.4toAmendmentNo.6totheRegistrationStatementonFormS-1(FileNo.333-183162)filedNovember21,2012

10.10**

SunCokeEnergyPartners,L.P.Directors’DeferredCompensationPlan,incorporatedbyreferencetoExhibit10.19toAmendmentNo.6totheRegistrationStatementonFormS-1(FileNo.333-183162)filedNovember21,2012

10.11

SupportAgreement,datedasofFebruary4,2019,byandbetweenSunCokeEnergyPartners,L.P.,andSunCoal&CokeLLC.(incorporatedbyreferencetoExhibit10.1totheCurrentReportonForm8-K(FileNo.001-35782)filedonFebruary5,2019.

21.1* ListofSubsidiariesofSunCokeEnergyPartners,L.P.(filedherewith) 23.1* ConsentofKPMGLLP(filedherewith) 24.1* PowersofAttorney(filedherewith) 31.1*

CertificationofChiefExecutiveOfficerPursuanttoSection302oftheSarbanes-OxleyActof2002(18U.S.C.Section7241)(filedherewith)

31.2*

CertificationofChiefFinancialOfficerPursuanttoSection302oftheSarbanes-OxleyActof2002(18U.S.C.Section7241)(filedherewith)

32.1*

CertificationofChiefExecutiveOfficerPursuanttoSection906oftheSarbanes-OxleyActof2002(18U.S.C.Section1350)(furnishedherewith)

32.2*

CertificationofChiefFinancialOfficerPursuanttoSection906oftheSarbanes-OxleyActof2002(18U.S.C.Section1350)(furnishedherewith)

95.1* MineSafetyDisclosure(filedherewith) 101.INS* XBRLInstanceDocument(filedherewith) 101.SCH* XBRLTaxonomyExtensionSchemaDocument(filedherewith) 101.CAL* XBRLTaxonomyExtensionCalculationLinkbaseDocument(filedherewith) 101.DEF* XBRLTaxonomyExtensionDefinitionLinkbaseDocument(filedherewith) 101.LAB* XBRLTaxonomyExtensionLabelLinkbaseDocument(filedherewith) 101.PRE* XBRLTaxonomyExtensionPresentationLinkbaseDocument(filedherewith)

* Providedherewith.

** Managementcontractorcompensatoryplanorarrangement

† Certainportionshavebeenomittedpursuanttoconfidentialtreatmentrequests.OmittedinformationhasbeenseparatelyfiledwiththeSecuritiesandExchangeCommission.

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SIGNATURES

PursuanttotherequirementsofSection13or15(a)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized,onFebruary15,2019.

SunCokeEnergyPartners,L.P. By: SunCokeEnergyPartnersGPLLC,itsgeneralpartner By: /s/FayWest

FayWestSeniorVicePresidentandChiefFinancialOfficer

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesindicatedonFebruary15,2019.

Signature Title

/s/MichaelG.Rippey* Chairman,PresidentandChiefExecutiveOfficer

(PrincipalExecutiveOfficer)MichaelG.Rippey /s/FayWest SeniorVicePresident,ChiefFinancialOfficer

andDirector(PrincipalFinancialOfficer)FayWest

/s/AllisonS.Lausas* VicePresident,FinanceandController

(PrincipalAccountingOfficer)AllisonS.Lausas /s/KatherineT.Gates* SeniorVicePresident,GeneralCounsel,ChiefComplianceOfficerand

DirectorKatherineT.Gates /s/P.MichaelHardesty* SeniorVicePresident,CommercialOperations,BusinessDevelopment,

Terminals,andInternationalCokeandDirectorP.MichaelHardesty /s/MarthaZ.Carnes* DirectorMarthaZ.Carnes /s/JohnW.Somerhalder,II* DirectorJohnW.Somerhalder,II /s/AlvinBledsoe* DirectorAlvinBledsoe *FayWest,pursuanttopowersofattorneydulyexecutedbytheaboveofficersanddirectorsofSunCokeEnergyPartners,L.P.andfiledwiththeSECinWashington,D.C.,herebyexecutesthisAnnualReportonForm10-Konbehalfofeachofthepersonsnamedaboveinthecapacitysetforthoppositehisorhername. /s/FayWest February15,2019FayWest

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Exhibit 21.1

SunCoke Energy Partners, L.P.Subsidiaries of the Registrant

Name Registration HaverhillCokeCompanyLLC(98%)* DE -----HaverhillCogenerationCompanyLLC DE -----FFFarmsHoldingsLLC DE MiddletownCokeCompany,LLC(98%)* DE -----MiddletownCogenerationCompanyLLC DE GatewayEnergy&CokeCompany,LLC(98%)* DE -----GatewayCogenerationCompanyLLC DE SunCokeEnergyPartnersFinanceCorp. DE SunCokeLogisticsLLC DE -----SunCokeLakeTerminalLLC DE -----KanawhaRiverTerminalsLLC DE ----------MarigoldDock,Inc. DE ----------CeredoLiquidTerminal DE -----RavenEnergyLLC DE ----------CMTLiquidsTerminal,LLC DE

*Remainingequityinterestheldindirectlybyoursponsor,SunCokeEnergy,Inc.

Exhibit23.1

Consent of Independent Registered Public Accounting Firm

TheBoardofDirectorsSunCokeEnergyPartners,L.P.:

Weconsenttotheincorporationbyreferenceintheregistrationstatement(No.333-187428)onFormS-8ofSunCokeEnergyPartners,L.P.ofourreportdatedFebruary15,2019,withrespecttotheconsolidatedbalancesheetsofSunCokeEnergyPartners,L.P.asofDecember31,2018and2017,andtherelatedconsolidatedstatementsofoperations,equity,andcashflowsforeachoftheyearsinthethree-yearperiodendedDecember31,2018,andtherelatednotes(collectively,the“combinedandconsolidatedfinancialstatements”),andtheeffectivenessofinternalcontroloverfinancialreportingasofDecember31,2018,whichreportsappearintheDecember31,2018annualreportonForm10-KofSunCokeEnergyPartners,L.P.

/s/KPMGLLP

Chicago,IllinoisFebruary15,2019

Exhibit 24.1

POWER OF ATTORNEY

Theundersigned,adirectorofSunCokeEnergyPartnersGPLLC,herebyconstitutesandappointsMichaelG.Rippey,FayWestandKatherineT.Gates,andeachofthem,hisorhertrueandlawfulattorneys-in-factandagentswithfullpowerofsubstitutionandre- substitution,forhimorherandinhisorhernameplaceandstead,inanyandallcapacities,tosignforhimorherinthecapacities indicated below the Annual Report of SunCoke Energy Partners, L.P. on Form 10-K for the fiscal year endedDecember31,2018andanyandallamendmentstosuchAnnualReportonForm10-K,andtocausethesametobefiledwithallexhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteanddesirable to be done in and about the premises as fully and to all intents and purposes as the undersigned might or could do inperson,herebyratifyingandconfirmingallactsandthingsthatsaidattorneys-in-factandagentsoranyofthem,ortheirorhisorhersubstituteorsubstitutesmaylawfullydoorcausetobedonebyvirtuehereof.

INWITNESSWHEREOF,theundersignedhasexecutedthisPowerofAttorneyasofthis15thdayofFebruary2019.

Signature:/s/JohnW.Somerhalder,IIName:JohnW.Somerhalder,II

Title:Director

POWER OF ATTORNEY

Theundersigned,adirectorofSunCokeEnergyPartnersGPLLC,herebyconstitutesandappointsMichaelG.Rippey,FayWestandKatherineT.Gates,andeachofthem,hisorhertrueandlawfulattorneys-in-factandagentswithfullpowerofsubstitutionandre- substitution,forhimorherandinhisorhernameplaceandstead,inanyandallcapacities,tosignforhimorherinthecapacities indicated below the Annual Report of SunCoke Energy Partners, L.P. on Form 10-K for the fiscal year endedDecember31,2018andanyandallamendmentstosuchAnnualReportonForm10-K,andtocausethesametobefiledwithallexhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteanddesirable to be done in and about the premises as fully and to all intents and purposes as the undersigned might or could do inperson,herebyratifyingandconfirmingallactsandthingsthatsaidattorneys-in-factandagentsoranyofthem,ortheirorhisorhersubstituteorsubstitutesmaylawfullydoorcausetobedonebyvirtuehereof.

INWITNESSWHEREOF,theundersignedhasexecutedthisPowerofAttorneyasofthis15thdayofFebruary2019.

Signature:/s/MarthaZ.CarnesName:MarthaZ.Carnes

Title:Director

POWER OF ATTORNEY

Theundersigned,adirectorofSunCokeEnergyPartnersGPLLC,herebyconstitutesandappointsMichaelG.Rippey,FayWestandKatherineT.Gates,andeachofthem,hisorhertrueandlawfulattorneys-in-factandagentswithfullpowerofsubstitutionandre- substitution,forhimorherandinhisorhernameplaceandstead,inanyandallcapacities,tosignforhimorherinthecapacities indicated below the Annual Report of SunCoke Energy Partners, L.P. on Form 10-K for the fiscal year endedDecember31,2018andanyandallamendmentstosuchAnnualReportonForm10-K,andtocausethesametobefiledwithallexhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteanddesirable to be done in and about the premises as fully and to all intents and purposes as the undersigned might or could do inperson,herebyratifyingandconfirmingallactsandthingsthatsaidattorneys-in-factandagentsoranyofthem,ortheirorhisorhersubstituteorsubstitutesmaylawfullydoorcausetobedonebyvirtuehereof.

INWITNESSWHEREOF,theundersignedhasexecutedthisPowerofAttorneyasofthis15thdayofFebruary2019.

Signature:/s/AlvinBledsoeName:AlvinBledsoe

Title:Director

POWER OF ATTORNEY

Theundersigned,anofficeranddirectorofSunCokeEnergyPartnersGPLLC,herebyconstitutesandappointsMichaelG.Rippey,FayWestandKatherineT.Gates,andeachofthem,hisorhertrueandlawfulattorneys-in-factandagentswithfullpowerofsubstitutionandre- substitution,forhimorherandinhisorhernameplaceandstead,inanyandallcapacities,tosignforhimorherinthecapacitiesindicatedbelowtheAnnualReportofSunCokeEnergyPartners,L.P.onForm10-KforthefiscalyearendedDecember31,2018andanyandallamendmentstosuchAnnualReportonForm10-K,andtocausethesametobefiledwithallexhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteanddesirable to be done in and about the premises as fully and to all intents and purposes as the undersigned might or could do inperson,herebyratifyingandconfirmingallactsandthingsthatsaidattorneys-in-factandagentsoranyofthem,ortheirorhisorhersubstituteorsubstitutesmaylawfullydoorcausetobedonebyvirtuehereof.

INWITNESSWHEREOF,theundersignedhasexecutedthisPowerofAttorneyasofthis15thdayofFebruary2019.

Signature:/s/FayWestName:FayWest

Title:SeniorVicePresidentChiefFinancialOfficerandDirector

(PrincipalFinancialOfficer)

POWER OF ATTORNEY

Theundersigned,anofficeranddirectorofSunCokeEnergyPartnersGPLLC,herebyconstitutesandappointsMichaelG.Rippey,FayWestandKatherineT.Gates,andeachofthem,hisorhertrueandlawfulattorneys-in-factandagentswithfullpowerofsubstitutionandre- substitution,forhimorherandinhisorhernameplaceandstead,inanyandallcapacities,tosignforhimorherinthecapacitiesindicatedbelowtheAnnualReportofSunCokeEnergyPartners,L.P.onForm10-KforthefiscalyearendedDecember31,2018andanyandallamendmentstosuchAnnualReportonForm10-K,andtocausethesametobefiledwithallexhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteanddesirable to be done in and about the premises as fully and to all intents and purposes as the undersigned might or could do inperson,herebyratifyingandconfirmingallactsandthingsthatsaidattorneys-in-factandagentsoranyofthem,ortheirorhisorhersubstituteorsubstitutesmaylawfullydoorcausetobedonebyvirtuehereof.

INWITNESSWHEREOF,theundersignedhasexecutedthisPowerofAttorneyasofthis15thdayofFebruary2019.

Signature:/s/KatherineT.GatesName:KatherineT.GatesTitle:SeniorVicePresident,

GeneralCounsel,ChiefComplianceOfficerandDirector

POWER OF ATTORNEY

Theundersigned,anofficeranddirectorofSunCokeEnergyPartnersGPLLC,herebyconstitutesandappointsMichaelG.Rippey,FayWestandKatherineT.Gates,andeachofthem,hisorhertrueandlawfulattorneys-in-factandagentswithfullpowerofsubstitutionandre- substitution,forhimorherandinhisorhernameplaceandstead,inanyandallcapacities,tosignforhimorherinthecapacitiesindicatedbelowtheAnnualReportofSunCokeEnergyPartners,L.P.onForm10-KforthefiscalyearendedDecember31,2018andanyandallamendmentstosuchAnnualReportonForm10-K,andtocausethesametobefiledwithallexhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteanddesirable to be done in and about the premises as fully and to all intents and purposes as the undersigned might or could do inperson,herebyratifyingandconfirmingallactsandthingsthatsaidattorneys-in-factandagentsoranyofthem,ortheirorhisorhersubstituteorsubstitutesmaylawfullydoorcausetobedonebyvirtuehereof.

INWITNESSWHEREOF,theundersignedhasexecutedthisPowerofAttorneyasofthis15thdayofFebruary2019.

Signature:/s/MichaelG.RippeyName:MichaelG.RippeyTitle:Chairman,President,and

ChiefExecutiveOfficer(PrincipalExecutiveOfficer)

POWER OF ATTORNEY

Theundersigned,anofficerofSunCokeEnergyPartnersGPLLC,herebyconstitutesandappointsMichaelG.Rippey,FayWestandKatherineT.Gates,andeachofthem,hisorhertrueandlawfulattorneys-in-factandagentswithfullpowerofsubstitutionandre- substitution,forhimorherandinhisorhernameplaceandstead,inanyandallcapacities,tosignforhimorherinthecapacities indicated below the Annual Report of SunCoke Energy Partners, L.P. on Form 10-K for the fiscal year endedDecember31,2018andanyandallamendmentstosuchAnnualReportonForm10-K,andtocausethesametobefiledwithallexhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteanddesirable to be done in and about the premises as fully and to all intents and purposes as the undersigned might or could do inperson,herebyratifyingandconfirmingallactsandthingsthatsaidattorneys-in-factandagentsoranyofthem,ortheirorhisorhersubstituteorsubstitutesmaylawfullydoorcausetobedonebyvirtuehereof.

INWITNESSWHEREOF,theundersignedhasexecutedthisPowerofAttorneyasofthis15thdayofFebruary2019.

Signature:/s/AllisonS.LausasName:AllisonS.Lausas

Title:VicePresident,FinanceandController(PrincipalAccountingOfficer)

POWER OF ATTORNEY

Theundersigned,anofficeranddirectorofSunCokeEnergyPartnersGPLLC,herebyconstitutesandappointsMichaelG.Rippey,FayWestandKatherineT.Gates,andeachofthem,hisorhertrueandlawfulattorneys-in-factandagentswithfullpowerofsubstitutionandre- substitution,forhimorherandinhisorhernameplaceandstead,inanyandallcapacities,tosignforhimorherinthecapacitiesindicatedbelow,theAnnualReportofSunCokeEnergyPartners,L.P.onForm10-KforthefiscalyearendedDecember31,2018andanyandallamendmentstosuchAnnualReportonForm10-K,andtocausethesametobefiledwithallexhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteanddesirable to be done in and about the premises as fully and to all intents and purposes as the undersigned might or could do inperson,herebyratifyingandconfirmingallactsandthingsthatsaidattorneys-in-factandagentsoranyofthem,ortheirorhisorhersubstituteorsubstitutesmaylawfullydoorcausetobedonebyvirtuehereof.

INWITNESSWHEREOF,theundersignedhasexecutedthisPowerofAttorneyasofthis15thdayofFebruary2019.Signature:/s/P.MichaelHardesty

Name:P.MichaelHardestyTitle:SeniorVicePresident,SalesandCommercialOperations,Terminalsand

InternationalCokeandDirector

Exhibit 31.1

CERTIFICATION

I,MichaelG.Rippey,certifythat:

1.IhavereviewedthisAnnualReportonForm10-KforthefiscalyearendedDecember31,2018ofSunCokeEnergyPartners,L.P.(the“registrant”);

2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4.Theregistrant’sothercertifyingofficer(s)andIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

(a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c)Evaluatedtheeffectivenessoftheregistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d)Disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’sfourthfiscalquarterthathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting;and

5.Theregistrant’sothercertifyingofficer(s)andIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’sinternalcontroloverfinancialreporting.

/s/MichaelG.RippeyMichaelG.RippeyChairman,PresidentandChiefExecutiveOfficer

February15,2019

Exhibit 31.2

CERTIFICATION

I,FayWest,certifythat:

1.IhavereviewedthisAnnualReportonForm10-KforthefiscalyearendedDecember31,2018ofSunCokeEnergyPartners,L.P.(the“registrant”);

2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4.Theregistrant’sothercertifyingofficer(s)andIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

(a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c)Evaluatedtheeffectivenessoftheregistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d).Disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’sfourthfiscalquarterthathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting;and

5.Theregistrant’sothercertifyingofficer(s)andIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b)Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’sinternalcontroloverfinancialreporting.

/s/FayWestFayWestSeniorVicePresidentandChiefFinancialOfficer

February15,2019

Exhibit 32.1

CERTIFICATION OFCHIEF EXECUTIVE OFFICER

OF SUNCOKE ENERGY PARTNERS GP LLCPURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Annual Report on Form 10-K of SunCoke Energy Partners, L.P. for the fiscal year endedDecember31,2018,I,MichaelG.Rippey,Chairman,PresidentandChiefExecutiveOfficerofSunCokeEnergyPartnersGPLLC,the general partner of SunCoke Energy Partners, L.P., hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant toSection906oftheSarbanes-OxleyActof2002,that:

1. This Annual Report on Form 10-K for the fiscal year ended December 31, 2018 fully complies with therequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934;and

2. TheinformationcontainedinthisAnnualReportonForm10-KforthefiscalyearendedDecember31,2018fairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsofSunCokeEnergyPartners,L.P.fortheperiodspresentedtherein.

/s/MichaelG.RippeyMichaelG.Rippey

Chairman,PresidentandChiefExecutiveOfficer

February15,2019

Exhibit 32.2

CERTIFICATION OFCHIEF FINANCIAL OFFICER

OF SUNCOKE ENERGY PARTNERS GP LLCPURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Annual Report on Form 10-K of SunCoke Energy Partners, L.P. for the fiscal year endedDecember 31, 2018 , I, Fay West, Senior Vice President and Chief Financial Officer of SunCoke Energy Partners GP LLC, thegeneralpartnerofSunCokeEnergyPartners,L.P.,herebycertifypursuantto18U.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-OxleyActof2002,that:

1. This Annual Report on Form 10-K for the fiscal year ended December 31, 2018 fully complies with therequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof1934;and

2. TheinformationcontainedinthisAnnualReportonForm10-KforthefiscalyearendedDecember31,2018fairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsofSunCokeEnergyPartners,L.P.fortheperiodspresentedtherein.

/s/FayWestFayWest

SeniorVicePresidentandChiefFinancialOfficer

February15,2019

Exhibit 95.1

SunCoke Energy PartnersMine Safety Disclosures for the Period Ended December 31, 2018

Wearecommittedtomaintainingasafeworkenvironmentandworkingtoensureenvironmentalcomplianceacrossallofouroperations.Thehealthandsafetyofouremployeesandlimitingtheimpacttocommunitiesinwhichweoperatearecriticaltoourlong-termsuccess.Weemploypracticesandconducttrainingtohelpensurethatouremployeesworksafely.Furthermore,weutilizeprocessesformanaging,monitoringandimprovingsafetyandenvironmentalperformance.

WehaveconsistentlyoperatedwithinthetopquartilefortheU.S.OccupationalSafetyandHealthAdministration’srecordableinjuryratesasmeasuredandreportedbytheAmericanCokeandCoalChemicalsInstitute.WealsohaveworkedtomaintainlowinjuryratesreportabletotheU.S.DepartmentofLabor’sMineSafetyandHealthAdministration(“MSHA”).

ThefollowingtablepresentstheinformationconcerningminesafetyviolationsandotherregulatorymattersthatwearerequiredtoreportinaccordancewithSection1503(a)oftheDodd-FrankWallStreetReformandConsumerProtectionAct.WheneverMSHAbelievesthataviolationoftheFederalMineSafetyandHealthActof1977(the“MineAct”),anyhealthorsafetystandard,oranyregulationhasoccurred,itmayissueacitationwhichdescribestheallegedviolationandfixesatimewithinwhichtheoperatormustabatetheviolation.Inthesesituations,MSHAtypicallyproposesacivilpenalty,orfine,thattheoperatorisorderedtopay.Inevaluatingthefollowingtableregardingminesafety,investorsshouldtakeintoaccountfactorssuchas:(1)thenumberofcitationsandorderswillvarydependingonthesizeofacoalmine,(2)thenumberofcitationsissuedwillvaryfrominspectortoinspector,minetomineandMSHAdistricttodistrictand(3)citationsandorderscanbecontestedandappealed,andduringthatprocessareoftenreducedinseverityandamount,andaresometimesdismissed.

TheminedataretrievalsystemmaintainedbyMSHAmayshowinformationthatisdifferentthanwhatisprovidedinthetablebelow.AnysuchdifferencemaybeattributedtotheneedtoupdatethatinformationonMSHA’ssystemorotherfactors.Ordersandcitationsissuedtoindependentcontractorswhoworkatourminesitesarenotreportedinthetablebelow.AllsectionreferencesinthetablebelowrefertoprovisionsoftheMineAct.

Mine or OperatingName/MSHA Identification

Number

Section 104S&S Citations

(#)(2)

Section104(b)

Orders (#)(3)

Section104(d)

Citations andOrders (#)(4)

Section 110(b)(2) Violations

(#)(5)

Section107(a)

Orders (#)(6)

Total Dollar Value ofMSHA Assessments

Proposed ($)(7)

TotalNumber of

MiningRelated

Fatalities (#)

ReceivedNotice ofPattern ofViolations

UnderSection 104(e)

(yes/no)(8)

ReceivedNotice of

Potential toHave Pattern

UnderSection 104(e)

(yes/no)(9)

Legal ActionsPending as ofLast Day of

Period (#)(10)(11)

LegalActionsInitiatedDuring

Period (#)(12)

LegalActions

ResolvedDuring

Period (#)(13)

CeredoDock/46-09051 1 0 0 0 0 $ 1,239 0 0 0 0 0 0

QuincyDock/46-07736 2 0 0 0 0 $ 118 0 0 0 0 0 0

Belfry#5/15-10789 0 0 0 0 0 0 0 0 0 0 0 0

Total 3 0 0 0 0 $ 1,357 0 0 0 0 0 0

(1) Thetabledoesnotincludethefollowing:(i)facilitieswhichhavebeenidleorclosedunlesstheyreceivedacitationororderissuedbyMSHA,(ii)permittedminingsiteswherewehavenotbegunoperationsor(iii)minesthatareoperatedonourbehalfbycontractorswhoholdtheMSHAnumbersandhavetheMSHAliabilities.

(2) Allegedviolationsofmandatoryhealthorsafetystandardsthatcouldsignificantlyandsubstantiallycontributetothecauseandeffectofacoalorotherminesafetyorhealthhazard.

(3) Allegedfailurestototallyabateacitationwithintheperiodoftimespecifiedinthecitation.

(4) Allegedunwarrantablefailure(i.e.,aggravatedconductconstitutingmorethanordinarynegligence)tocomplywithaminingsafetystandardorregulation.

(5) Allegedflagrantviolationsissued.

(6) Allegedconditionsorpracticeswhichcouldreasonablybeexpectedtocausedeathorseriousphysicalharmbeforesuchconditionorpracticecanbeabated.

(7) AmountsshownincludeassessmentsproposedduringtheyearendedDecember31,2018anddonotnecessarilyrelatetothecitationsorordersreflectedinthistable.AssessmentsforcitationsorordersreflectedinthistablemaybeproposedbyMSHAafterDecember31,2018.

(8) Allegedpatternofviolationsofmandatoryhealthorsafetystandardsthatareofsuchnatureascouldhavesignificantlyandsubstantiallycontributedtothecauseandeffectofcoalorotherminehealthorsafetyhazards.

(9) Allegedpotentialtohaveapatternofviolationsofmandatoryhealthorsafetystandardsthatareofsuchnatureascouldhavesignificantlyandsubstantiallycontributedtothecauseandeffectofcoalorotherminehealthorsafetyhazards.

(10) ThisnumberreflectslegalproceedingswhichremainpendingbeforetheFederalMineSafetyandHealthReviewCommission(the“FMSHRC”)asofDecember31,2018.ThependinglegalactionsmayrelatetothecitationsorordersissuedbyMSHAduringthereportingperiodortocitationsorordersissuedinpriorperiods.TheFMSHRChasjurisdictiontohearnotonlychallengestocitations,orders,andpenaltiesbutalsocertaincomplaintsbyminers.Thenumberof“pendinglegalactions”reportedherereflectsthenumberofcontestedcitations,orders,penaltiesorcomplaintswhichremainpendingasofDecember31,2018.

(11) ThelegalproceedingswhichremainpendingbeforetheFMSHRCasofDecember31,2018arecategorizedasfollowsinaccordancewiththecategoriesestablishedintheProceduralRulesoftheFMSHRC.

Mine or Operating Name/MSHAIdentification Number

Contests of Citationsand Orders (#)

Contests of ProposedPenalties (#)

Complaints forCompensation (#)

Complaints forDischarge,

Discrimination orInterference Under

Section 105 (#)Applications for

Temporary Relief (#)

Appeals of Judges’Decisions or Orders

(#)CeredoDock/46-09051 0 0 0 0 0 0QuincyDock/46-07736 0 0 0 0 0 0Belfry#5/15-10789 0 0 0 0 0 0Total 0 0 0 0 0 0

(12) ThisnumberreflectslegalproceedingsinitiatedbeforetheFMSHRCduringtheyearendedDecember31,2018.Thenumberof“initiatedlegalactions”reportedheremaynothaveremainedpendingasofDecember31,2018.

(13) ThisnumberreflectslegalproceedingsbeforetheFMSHRCthatwereresolvedduringtheyearendedDecember31,2018.