Sunoco to Continue Separation of SunCoke Following Settlement with ArcelorMittal on Coke Pricing

Sunoco, Inc. SUN said today that it will move forward with the planned separation of SunCoke Energy after reaching an agreement with ArcelorMittal MT that resolves the lawsuit concerning coke pricing for the Jewell facility. The settlement agreement, which is effective retroactively to Jan. 1, 2011, includes the following terms: Renegotiation of the Jewell coke contract, including the elimination of the Jewell coal cost multiplier and an increase in fees. The pricing of Jewel coal will be based upon the third-party coal price at SunCoke's Haverhill facility. Renegotiation and increase in fees paid under the Haverhill agreement. The take-or-pay basis of the Jewell and Haverhill agreements with ArcelorMittal will be extended through 2020. This extension provides SunCoke a guaranteed outlet for this coke production through 2020. Both of these contracts were previously structured to convert to a basis of ArcelorMittal's U.S. requirements effective October 2012. No compensatory damages. Additional information regarding the planned separation of SunCoke Energy from Sunoco will be discussed on the previously announced Feb. 3 earnings call.