Northern Tier Energy Announces Record Third Quarter Adjusted EBITDA and Declares Initial Cash Distribution

   Northern Tier Energy Announces Record Third Quarter Adjusted EBITDA and
                      Declares Initial Cash Distribution

- 3Q12 operating income of $199.4 million

- 3Q12 adjusted EBITDA of $249.5 million

- Successfully completed the initial public offering of Northern Tier Energy
LP

- Prorated 3Q12 distribution of $1.48 per unit declared

PR Newswire

RIDGEFIELD, Conn., Nov. 12, 2012

RIDGEFIELD, Conn., Nov. 12, 2012 /PRNewswire/ --Northern Tier Energy LP and
its subsidiaries (NYSE: NTI) ("Northern Tier Energy") today reported
consolidated earnings for the third quarter of 2012. In addition, Northern
Tier Energy announced a prorated cash distribution to unit holders of $1.48
per unit.

Third Quarter Results

Northern Tier Energy reported operating income of $199.4 million for the third
quarter of 2012, an increase of $33.7 million compared to the third quarter of
2011. This increase in operating income is primarily due to improved results
in the Refining segment which were driven by higher refined product margins
per barrel and increased throughput and sales volumes compared to the prior
year period. Adjusted EBITDA for the third quarter of 2012 was $249.5
million, an increase of $70.0 million compared to $179.5 million for the third
quarter of 2011 also driven by the favorable operating results in the Refining
segment.

Northern Tier Energy reported net income of $61.1 million for the third
quarter of 2012 compared to $2.2 million for the third quarter of 2011. The
$58.9 million improvement from the third quarter of 2011 is primarily
attributable to a $72.7 million increase in operating income in the Refining
segment and an improvement of $38.1 million related to derivative activities,
partially offset by a $35.1 million unfavorable impact in contingent
consideration loss, an $8.0 million non-cash charge for deferred income taxes
and a $4.6 million non-cash interest charge related to the write-off of
deferred financing costs.

Quarterly Distribution

The Board of Directors of Northern Tier Energy GP LLC, the general partner of
Northern Tier Energy LP, declared a prorated quarterly distribution of $1.48
per unit payable in cash on November 29, 2012 to common unit holders of record
at the close of business on November 21, 2012. Prorated cash available for
distribution totaled $136.1 million for the third quarter 2012. As noted in
Northern Tier Energy's IPO prospectus, the cash available for its first
distribution includes cash for the period from the closing date of the IPO
(July 31, 2012) through September 30, 2012.

In connection with Northern Tier Energy's recently completed debt refinancing
described under the heading "Subsequent Events" below, all payment in kind
(PIK) common units will convert to common units and there will be no PIK
common units issued for the third quarter distribution or any prospective
distribution.

Operating Segment Highlights

Refining Segment

The Refining segment's operating income was $246.7 million for the third
quarter of 2012 compared to $174.0 million for the third quarter of 2011.
Refining gross product margins were $36.69 per barrel of throughput for the
third quarter of 2012 compared to $28.54 per barrel for the third quarter of
2011. This increase is primarily due to favorable crude oil price
differentials versus the benchmark WTI crude oil prices in the 2012 third
quarter.

In addition to higher product margins per barrel, throughput and sales volumes
increased compared to the prior year quarter. Total throughput was 87,476
barrels per day for the third quarter of 2012 compared to 84,485 barrels per
day for the prior year quarter. Sales volumes increased to 94,105 barrels per
day for the third quarter of 2012 from 90,349 barrels per day for the third
quarter of 2011. The higher refinery throughput in the third quarter of 2012
compared to the same prior year period is primarily attributable to record
productivity at the St. Paul Park refinery.

Retail Segment

Retail operating income was $1.2 million in the third quarter of 2012 compared
to $4.9 million in the third quarter of 2011. Fuel margins were $0.12 per
gallon for the third quarter of 2012 compared to $0.22 per gallon for the
third quarter of 2011. This reduction in fuel margin per gallon relates to
competitive pricing actions that occurred during the middle of the third
quarter of 2012 in response to reduced sales volumes across the local market.
Fuel gallons sold at company-operated retail stores declined by 6.2% from the
prior year period. This sales volume decline is generally correlated to the
broader market decline for retail fuel sales in the period. Despite the
reduction in fuel gallons sold, the Retail segment experienced higher non-fuel
revenues driven primarily by merchandise revenues at company-operated stores.

Liquidity and Capital Spending

Northern Tier Energy's primary sources of liquidity are cash generated from
operating activities and its asset backed revolving credit facility (the "ABL
Facility"). As of September 30, 2012, the Company's cash on hand and
availability under the ABL Facility amounted to $491 million as compared to
$232 million as of December 31, 2011 and $148 million as of the closing date
of the Marathon Acquisition on December 1, 2010. The September 30, 2012 cash
on hand balance of $323.5 million includes the net use of cash related to the
completion of Northern Tier Energy LP's IPO.

Cash provided by operating activities for the third quarter of 2012 was $80.0
million compared to $61.1 million for the third quarter of 2011. The cash
provided in the 2012 period relates primarily to the strength of the Refining
segment's operating results partially offset by $132.0 million of payments
made out of the IPO proceeds to settle deferred derivative obligations and to
settle the contingent consideration arrangements. Capital expenditures for
the third quarter of 2012 were $6.3 million.

Subsequent Events

On October 17, 2012, Northern Tier Energy LLC, a wholly-owned subsidiary of
Northern Tier Energy LP, announced the commencement of a cash tender offer for
any and all of the $261 million outstanding principal amount of its existing
senior secured notes. In conjunction with the tender offer, Northern Tier
Energy LLC solicited consents to eliminate most of the covenants and certain
events of default applicable to the existing senior secured notes. At the
completion of the early tender period on November 1, 2012, $253.1 million of
the outstanding principal amount had been tendered and related consents
received.

As of November 8, 2012, Northern Tier Energy LLC amended the indenture
governing the existing notes in accordance with the approved consents. As a
result of the amendment, the PIK common units of Northern Tier Energy LP were
converted into Northern Tier Energy LP common units with the same rights and
limitations as the existing common units, effective November 9, 2012. The
supplemental indenture also amended covenants to ease the restrictions of cash
distributions to common unit holders. As a result of the conversion of the PIK
common units, there will be no distribution on such converted common units in
the form of additional PIK common units, and as a result, there will be no
dilution to the per unit cash distributions of common unit holders.

On November 8, 2012, Northern Tier Energy completed a private offering of $275
million in aggregate principal amount of 7.125% senior secured notes due
2020. The net proceeds of this offering were used to fund a portion of the
tender offer for its existing senior secured notes due 2017.

Conference Call Information

Northern Tier Energy will hold a conference call to discuss its third quarter
2012 results on Tuesday, November 13, 2012 at 11:00 AM Eastern Standard Time.
The call will be webcast live over the internet from Northern Tier Energy's
website at www.ntenergy.com. The call can also be heard by dialing (866)
783-2142, passcode: 64550770. The audio replay will be available on the
website through November 26, 2012.

About Northern Tier Energy

Northern Tier Energy LP (NYSE: NTI) is an independent downstream energy
company with refining, retail and pipeline operations that serves the PADD II
region of the United States. Northern Tier Energy operates a 84,500 barrels
per stream day refinery located in St. Paul Park, Minnesota. Northern Tier
Energy also operates 166 convenience stores and supports 68 franchised
convenience stores, primarily in Minnesota and Wisconsin, under the
SuperAmerica trademark, and owns a bakery and commissary under the SuperMom's
brand. Northern Tier Energy is headquartered in Ridgefield, Connecticut.

Non-GAAP Measures

This earnings release includes non-GAAP measures including adjusted EBITDA and
cash available for distribution. Northern Tier Energy believes that these
non-GAAP financial measures provide useful information about its operating
performance. However, these measures have important limitations as analytical
tools and should not be viewed in isolation or considered as alternatives to
comparable GAAP financial measures. Northern Tier Energy's non-GAAP financial
measures may also differ from similarly named measures used by other
companies. See the accompanying tables and footnotes in this release for
additional information on the non-GAAP measures used in this release and
reconciliations to the most directly comparable GAAP measures.

Forward-Looking Statements

This press release contains certain "forward-looking statements" which reflect
Northern Tier Energy's views and assumptions on the date of this press release
regarding future events. They involve known and unknown risks, uncertainties
and other factors, many of which may be beyond its control, that may cause
actual results to differ materially from any future results, performance or
achievements expressed or implied by the forward-looking statements. All
forward-looking statements speak only as of the date hereof. Northern Tier
Energy undertakes no obligation to update or revise publicly any such
forward-looking statements. Northern Tier Energy cautions you not to place
undue reliance on these forward-looking statements. Please refer to Northern
Tier Energy's filings with the SEC for more detailed information regarding
these risks, uncertainties and assumptions.

This release serves as a qualified notice to nominees and brokers as provided
for under Treasury Regulation Section 1.1446-4(b). Please note that 100
percent of Northern Tier Energy LP's distributions to foreign investors are
attributable to income that is effectively connected with a United States
trade or business. Accordingly, Northern Tier Energy LP's distributions to
foreign investors are subject to federal income tax withholding at the highest
effective tax rate.

NORTHERN TIER ENERGY LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, unaudited)
                           Three Months Ended         Nine Months Ended
                           September 30,              September 30,
                           2012           2011        2012         2011
Revenue                    $ 1,263.5     $ 1,159.5  $ 3,417.8   $ 3,192.0
Costs, expenses and other:
Cost of sales              929.2          890.2       2,594.0      2,578.2
Direct operating expenses  66.9           67.3        189.1        192.5
Turnaround and related     2.1            -           17.1         22.5
expenses
Depreciation and           8.3            7.4         24.6         22.3
amortization
Selling, general and       22.0           24.4        67.1         63.3
administrative
Formation costs            -              1.7         1.0          6.1
Contingent consideration   38.5           3.4         104.3        (37.6)
loss (income)
Other income, net          (2.9)          (0.6)       (6.2)        (2.4)
Operating income           199.4          165.7       426.8        347.1
Net losses on derivative   (115.0)        (153.1)     (269.2)      (580.9)
activities
Interest expense, net      (15.6)         (10.4)      (36.7)       (30.6)
Income (loss) before       68.8           2.2         120.9        (264.4)
income taxes
Income tax provision       (7.7)          -           (7.8)        -
Net income (loss)          $    61.1  $       $   113.1  $  (264.4)
                                          2.2



NORTHERN TIER ENERGY LP
SELECTED OPERATING SEGMENT DATA
(in millions, unaudited)
                                Three Months Ended        Nine Months Ended
                                September 30,             September 30,
                                2012        2011          2012       2011
OPERATING INCOME:
Refining                        $  246.7   $  174.0     $  560.3  $  326.7
Retail                          1.2         4.9           5.2        7.2
Corporate and unallocated costs (48.5)      (13.2)        (138.7)    13.2
TOTAL OPERATING INCOME          199.4       165.7         426.8      347.1
Net losses on derivative        (115.0)     (153.1)       (269.2)    (580.9)
activities
Interest expense, net           (15.6)      (10.4)        (36.7)     (30.6)
Income tax provision            (7.7)       -             (7.8)      -
NET INCOME (LOSS)               $   61.1  $    2.2  $  113.1  $ (264.4)



NORTHERN TIER ENERGY LP
SELECTED BALANCE SHEET AND CASH FLOW DATA
(in millions, unaudited)
                                  September 30,          December 31,
                                  2012                   2011
Cash and Cash Equivalents         $        323.5  $       123.5
Total Assets                      $      1,177.4   $       998.8
Total Debt and Financing          $        268.5  $       301.9
Obligations
Equity                            $        537.9  $       312.2
                                  Nine Months Ended,
                                  September 30,
                                  2012                   2011
Net cash provided by operating    $        174.8  $       194.9
activities
Net cash used in investing        (12.0)                 (138.5)
activities
Net cash provided by (used in)    37.2                   (2.5)
financing activities
Net increase in cash and cash     $        200.0  $        53.9
equivalents

NORTHERN TIER ENERGY LP
ADJUSTED EBITDA RECONCILIATION
(in millions, unaudited)
                             Three Months Ended September 30, 2012
                             Refining  Retail     Other      Total
(in millions)
Net income (loss)          $  246.7   $    1.2  $ (186.8)    $   61.1
Adjustments:
Interest expense             -           -            15.6         15.6
Income tax provision         -           -            7.7          7.7
Depreciation and             6.4         1.8          0.1          8.3
amortization
EBITDA subtotal              253.1       3.0          (163.4)      92.7
Minnesota Pipe Line          0.7         -            -            0.7
proportionate EBITDA
Turnaround and related       2.1         -            -            2.1
expenses
Equity-based compensation    -           -            0.5          0.5
expense
Unrealized losses on         -           -            70.3         70.3
derivative activities
Contingent consideration     -           -            38.5         38.5
loss
Realized losses on           -           -            44.7         44.7
derivative activities
Adjusted EBITDA (a)        $  255.9   $    3.0  $   (9.4)  $  249.5
                             Three Months Ended September 30, 2011
                             Refining  Retail     Other      Total
(in millions)
Net income (loss)         $  174.0   $    4.9  $ (176.7)    $    2.2
Adjustments:
Interest expense             -           -            10.4         10.4
Depreciation and             5.4         2.0          -            7.4
amortization
EBITDA subtotal              179.4       6.9          (166.3)      20.0
Minnesota Pipe Line          0.9         -            -            0.9
proportionate EBITDA
Equity-based compensation    -           -            0.4          0.4
expense
Unrealized losses on         -           -            40.6         40.6
derivative activities
Contingent consideration     -           -            3.4          3.4
loss
Formation costs              -           -            1.7          1.7
Realized losses on           -           -            112.5        112.5
derivative activities
Adjusted EBITDA (a)        $  180.3   $    6.9  $   (7.7)  $  179.5
NORTHERN TIER ENERGY LP
ADJUSTED EBITDA RECONCILIATION
(in millions, unaudited)
                             Nine Months Ended September 30, 2012
                             Refining  Retail     Other      Total
(in millions)
Net income (loss)          $  560.3   $    5.2  $ (452.4)    $  113.1
Adjustments:
Interest expense             -           -            36.7         36.7
Income tax provision         -           -            7.8          7.8
Depreciation and             18.5        5.6          0.5          24.6
amortization
EBITDA subtotal              578.8       10.8         (407.4)      182.2
Minnesota Pipe Line          2.1         -            -            2.1
proportionate EBITDA
Turnaround and related       17.1        -            -            17.1
expenses
Equity-based compensation    -           -            1.4          1.4
expense
Unrealized gains on          -           -            (32.6)       (32.6)
derivative activities
Contingent consideration     -           -            104.3        104.3
loss
Formation costs              -           -            1.0          1.0
Loss on early extinguishment -           -            136.8        136.8
of derivatives
Realized losses on           -           -            165.0        165.0
derivative activities
Adjusted EBITDA (a)        $  598.0   $   10.8   $  (31.5)   $  577.3
                             Nine Months Ended September 30, 2011
                             Refining  Retail     Other      Total
(in millions)
Net income (loss)          $  326.7   $    7.2  $ (598.3)    $ (264.4)
Adjustments:
Interest expense             -           -            30.6         30.6
Depreciation and             16.0        6.0          0.3          22.3
amortization
EBITDA subtotal              342.7       13.2         (567.4)      (211.5)
Minnesota Pipe Line          2.7         -            -            2.7
proportionate EBITDA
Turnaround and related       22.5        -            -            22.5
expenses
Equity-based compensation    -           -            1.1          1.1
expense
Unrealized losses on         -           -            334.5        334.5
derivative activities
Contingent consideration     -           -            (37.6)       (37.6)
income
Formation costs              -           -            6.1          6.1
Realized losses on           -           -            246.4        246.4
derivative activities
Adjusted EBITDA (a)        $  367.9   $   13.2   $  (16.9)   $  364.2



(a) Adjusted EBITDA is not a presentation made in accordance with GAAP and
Northern Tier Energy's computation of Adjusted EBITDA may vary from others in
its industry. In addition, Adjusted EBITDA contains some, but not all,
adjustments that are taken into account in the calculation of the components
of various covenants in the agreements governing the Secured Notes, ABL
Facility, earn-out, margin support agreement and management services
agreement. Adjusted EBITDA should not be considered as an alternative to
operating income or net income (loss) as measures of operating performance.
In addition, Adjusted EBITDA is not presented as, and should not be
considered, an alternative to cash flow from operations as a measure of
liquidity. Adjusted EBITDA is defined as net income (loss) before interest
expense, income taxes and depreciation and amortization, adjusted for EBITDA
from the Minnesota Pipe Line operations, turnaround and related expenses,
equity-based compensation expense, gains or losses from derivative activities,
fair value adjustments for contingent consideration arrangements and costs
related to Northern Tier Energy's formation. Adjusted EBITDA has limitations
as an analytical tool and should not be considered in isolation, or as a
substitute for analysis of the results as reported under GAAP.

NORTHERN TIER ENERGY LP
CASH AVAILABLE FOR DISTRIBUTION RECONCILIATION
For the Three Months Ended September 30, 2012
(in millions, unaudited)
Net income                                                   $     61.1
Adjustments:
Interest expense                                               15.6
Income tax provision                                           7.7
Depreciation and amortization                                  8.3
EBITDA subtotal                                                92.7
Minnesota Pipe Line proportionate EBITDA                       0.7
Turnaround and related expenses                                2.1
Equity-based compensation expense                              0.5
Unrealized loses on derivative activities                      70.3
Contingent consideration loss                                  38.5
Realized losses on derivative activities                       44.7
Adjusted EBITDA (a)                                          249.5
Cash interest expense                                          (9.9)
Current tax provision                                          (0.1)
Minnesota Pipe Line proportionate EBITDA                       (0.7)
Realized losses on derivative activities                       (44.7)
Capital expenditures                                          (6.3)
Reserve for turnaround and related expenses                    (10.0)
Working capital impacts                                        19.9
Cash available for distribution (b)                          197.7
Adjustment for period prior to initial public offering       (61.6)
Cash available for distribution subsequent to initial public  $    136.1
offering

(b) Cash available for distribution is a non-GAAP performance measure that
Northern Tier Energy believes is important to investors in evaluating its
overall cash generation performance. Cash available for distribution should
not be considered as an alternative to operating income or net income (loss)
as measures of operating performance. In addition, cash available for
distribution is not presented as, and should not be considered, an alternative
to cash flow from operations as a measure of liquidity. Northern Tier Energy
has reconciled cash available for distribution to adjusted EBITDA and in
addition reconciled adjusted EBITDA to net income. Cash available for
distribution has limitations as an analytical tool and should not be
considered in isolation, or as a substitute for analysis of the results as
reported under GAAP. Northern Tier Energy's calculation of cash available for
distribution may differ from similar calculations of other companies in its
industry, thereby limiting its usefulness as a comparative measure. Cash
available for distribution for each quarter will be determined by the board of
directors of Northern Tier Energy's general partner following the end of such
quarter.

NORTHERN TIER ENERGY LP
OTHER NON-GAAP PERFORMANCE MEASURES
(in millions, unaudited)
                             Three Months Ended,      Nine Months Ended,
                             September 30,            September 30,
                             2012        2011         2012         2011
Refining revenue             $ 1,151.1   $ 1,034.0    $ 3,084.8    $ 2,857.7
Refining cost of sales       855.8       812.2        2,379.3      2,370.7
Refining gross product       $  295.3  $  221.8   $  705.5   $  487.0
margin (c)
                             Three Months Ended,      Nine Months Ended,
                             September 30,            September 30,
                             2012        2011         2012         2011
Retail gross margin:
Fuel margin                  $       $   19.1  $   39.8  $   49.0
                             9.7
Merchandise margin           25.4        23.8         68.4         64.7
Other margin                 3.9         4.6          10.1         13.1
Retail gross margin          39.0        47.5         118.3        126.8
Expenses:
Direct operating expenses  30.4        33.3         89.6         93.8
Depreciation and            1.8         2.0          5.6          6.0
amortization
Selling, general and        5.6         7.3          17.9         19.8
administrative
Retail segment operating     $       $        $        $    
income (d)                   1.2         4.9          5.2          7.2

(c) Refining gross product margin per barrel is a financial measurement
calculated by subtracting refining costs of sales from total refining revenues
and dividing the difference by the total throughput or total refined products
sold for the respective periods presented. Refining gross product margin is a
non-GAAP performance measure that Northern Tier Energy believes is important
to investors in evaluating its refining segment performance as a general
indication of the amount above its cost of products that it is able to sell
refined products. Each of the components used in these calculations (revenues
and cost of sales) can be reconciled directly to Northern Tier Energy's
statements of operations. Northern Tier Energy's calculation of refining
gross product margin may differ from similar calculations of other companies
in its industry, thereby limiting its usefulness as a comparative measure.

(d) Retail fuel gross margin and retail merchandise gross margin are non-GAAP
performance measures that Northern Tier Energy believes are important to
investors in evaluating its retail performance. Northern Tier Energy's
calculation of retail fuel margin and retail merchandise margin may differ
from similar calculations of other companies in its industry, thereby limiting
their usefulness as comparative measures.

NORTHERN TIER ENERGY LP
SUPPLEMENTAL OPERATING DATA
(unaudited)
                                        Three Months Ended  Nine Months Ended
                                        September 30,       September 30,
                                        2012       2011     2012      2011
REFINING SEGMENT
Key Operating Statistics
 Total refinery production (bpd)      88,413     85,564   82,330    81,173
 Total refinery throughput (bpd)      87,476     84,485   81,697    80,694
 Refined products sold (bpd)          94,105     90,349   86,960    85,170
 Per barrel of throughput:
 Refining gross margin             $36.69     $28.54   $31.52    $22.11
 Direct operating expenses         $4.54      $4.36    $4.45     $4.48
 Per barrel of refined products sold:
 Refining gross margin             $34.11     $26.69   $29.61    $20.95
 Direct operating expenses         $4.22      $4.08    $4.18     $4.24
Refinery product yields (bpd):
 Gasoline                             41,623     41,611   39,578    40,238
 Distillate                           28,466     25,755   26,464    23,851
 Asphalt                              12,241     14,165   11,011    11,169
 Other                                6,083      4,033    5,277     5,915
 Total                             88,413     85,564   82,330    81,173
RETAIL SEGMENT
Company operated stores:
Fuel gallons sold (in millions)       80.1       85.4     231.6     245.8
Fuel margin per gallon                $0.12      $0.22    $0.17     $0.20
Merchandise sales (in millions)       $99.7      $92.3    $269.3    $253.9
Merchandise margin %                  25.5%      25.7%    25.4%     25.5%
Number of stores at period end        166        166      166       166

Note: See "Management's Discussion and Analysis of Financial Condition and
Results of Operations" included within Northern Tier Energy's quarterly report
on Form 10-Q for further information on operating statistic definitions.

SOURCE Northern Tier Energy LP

Website: http://www.ntenergy.com
Contact: Maria Testani, Director, Planning and Strategy, +1-203-244-6550