Northern Tier Energy Reports First Quarter 2013 Results and Declares Quarterly Cash Distribution

Northern Tier Energy Reports First Quarter 2013 Results and Declares Quarterly
                              Cash Distribution

- Declares first quarter distribution of $1.23 per common unit

- Adjusted EBITDA of $156.6 million for the first quarter of 2013 represents
an increase of $75.1 million compared to the first quarter of 2012

- Net income was $119.4 million for the first quarter of 2013 compared to a
loss of $193.6 million for the first quarter of 2012

PR Newswire

RIDGEFIELD, Conn., May 13, 2013

RIDGEFIELD, Conn., May 13, 2013 /PRNewswire/ -- Northern Tier Energy LP and
its subsidiaries (NYSE: NTI) ("Northern Tier Energy") today reported first
quarter 2013 net income of $119.4 million compared to a loss of $193.6 million
for the first quarter of 2012.

Net income for a respective reporting period may include the following special
items: (i) contingent consideration loss (income), (ii) unrealized gains
(losses) from derivative activities and (iii) a loss on early extinguishment
of derivatives. Excluding these special items, first quarter 2013 Adjusted
Net Income was $108.2 million compared to first quarter 2012 Adjusted Net
Income of $5.1 million.

Adjusted EBITDA for the first quarter 2013 was $156.6 million, an increase of
$75.1 million compared to $81.5 million for the first quarter 2012. This
increasewas primarily driven by favorable operating results in the Refining
segment.

Quarterly Distribution

The Board of Directors of Northern Tier Energy GP LLC, the general partner of
Northern Tier Energy LP, has approved a first quarter distribution of $1.23
per unit that will be paid in cash on May 30, 2013 to common unit holders of
record as of the close of business on May 23, 2013. Cash available for
distribution totaled $113.2 million for the first quarter 2013.

This will be the third quarterly cash distribution paid by Northern Tier
Energy since its initial public offering ("IPO") in July 2012 and will result
in cumulative cash distributions since the IPO of $3.98 per common unit.
Northern Tier Energy LP is a variable distribution master limited
partnership. As a result, its quarterly distributions, if any, will vary from
quarter to quarter as a result of variations in, among other factors, (i) its
operating performance, (ii) cash flows caused by fluctuations in the prices it
pays for crude oil and other feedstocks and the prices it receives for
finished products, (iii) capital expenditures, and (iv) other cash reserves
deemed necessary or appropriate by the board of directors of its general
partner.

First Quarter Operating Segment Highlights

Refining Segment
The Refining segment's operating income was $141.8 million for the first
quarter 2013 compared to $78.7 million for the first quarter 2012. Refining
gross product margins were $25.81 per barrel of throughput for the first
quarter 2013 compared to $17.71 per barrel for the first quarter 2012. This
increase is primarily due to favorable benchmark crack spreads as well as
favorable crude oil price differentials versus the benchmark WTI crude oil
prices in the 2013 first quarter compared to the 2012 first quarter.

In addition to higher product margins per barrel, throughput and sales volumes
increased compared to the prior year quarter. Total throughput was 85,365
barrels per day for the first quarter 2013 compared to 76,004 barrels per day
for the prior year quarter. Sales volumes increased to 84,694 barrels per day
for the first quarter 2013 from 77,923 barrels per day for the first quarter
2012.

Retail Segment
Retail operating income was $0.6 million in the first quarter 2013 compared to
an operating loss of $0.4 million in the first quarter 2012. Fuel margins
were $0.16 per gallon for the first quarter 2013 compared to $0.18 per gallon
for the first quarter 2012. Fuel gallons sold at company-operated retail
stores increased by 0.7% from the prior year period.

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 March 31, 2013, Northern Tier Energy's cash on hand and
availability under the ABL Facility amounted to $373 million as compared to
$405 million as of December 31, 2012.

Cash provided by operating activities for the first quarter 2013 was $41.5
million compared to cash used in operating activities of $54.8 million for the
first quarter 2012. The cash provided in the 2013 period relates primarily to
the strength of the Refining segment's operating results partially offset by
an increase in our refined products inventory in anticipation of a planned
major turnaround in April 2013. Capital expenditures for the first quarter
2013 were $26.9 million. 

Conference Call Information

The Northern Tier Energy conference call to discuss financial results for the
first quarter ending March 31, 2013 is scheduled for Tuesday, May 14, 2013 at
11:00 a.m. eastern time. Callers may listen to the live presentation, which
will be followed by a question and answer segment, by dialing 877-280-4956 or
857-244-7313 and the passcode 65355947. An audio webcast of the call along
with a slide presentation will be available at www.ntenergy.com within the
Investor section of the site. This audio webcast will be available on the
website for fourteen days after the conference call. A replay will also be
available by teleconference for seven days from the conference call. The
replay teleconference will be available by dialing 888-286-8010 or
617-801-6888 and the passcode 54074181.

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 an 84,500 barrels
per stream day refinery located in St. Paul Park, Minnesota. Northern Tier
Energy also operates 166 convenience stores and supports 73 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,
Adjusted Net Income 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 except per unit amounts, unaudited)
                                               Three Months Ended
                                               March 31,
                                               2013             2012
Revenue                                        $   1,115.0    $    999.1
Costs, expenses and other:
Cost of sales                                  879.5            839.8
Direct operating expenses                      64.3             60.7
Turnaround and related expenses                9.7              3.5
Depreciation and amortization                 8.6              8.5
Selling, general and administrative           25.5             20.3
Formation and offering costs                   0.4              -
Contingent consideration loss                 -                65.7
Other income, net                              (4.9)            (2.1)
Operating income                               131.9            2.7
Realized losses from derivative activities     (17.4)           (52.9)
Loss on early extinguishment of derivatives    -                (44.6)
Unrealized gains (losses) from derivative      11.2             (88.4)
activities
Interest expense, net                          (6.4)            (10.4)
Income (loss) before income taxes              119.3            (193.6)
Income tax benefit                             0.1              -
Net income (loss)                              $    119.4   $   (193.6)
Earnings per common unit, basic and diluted    $     1.30

NORTHERN TIER ENERGY LP
SELECTED OPERATING SEGMENT DATA
(in millions, unaudited)
                                    Three Months Ended
                                    March 31,
                                    2013         2012
OPERATING INCOME:
Refining                            $   141.8  $    78.7
Retail                              0.6          (0.4)
Corporate and unallocated costs     (10.5)       (75.6)
TOTAL OPERATING INCOME              131.9        2.7
Net losses on derivative activities (6.2)        (185.9)
Interest expense, net               (6.4)        (10.4)
Income tax benefit                  0.1          -
NET INCOME (LOSS)                   $   119.4  $  (193.6)

NORTHERN TIER ENERGY LP
SELECTED BALANCE SHEET AND CASH FLOW DATA
(in millions, unaudited)
                                         March 31,            December 31,
                                         2013                 2012
Cash and Cash Equivalents                $            $       
                                         172.3                272.9
Total Assets                             $              $      
                                         1,123.2             1,136.8
Total Debt and Financing Obligations     $            $       
                                         282.4                282.5
Equity                                   $            $       
                                         491.9                483.8
                                         Three Months Ended March 31,
                                         2013                 2012
Net cash provided by (used in) operating $           $       
activities                               41.5                 (54.8)
Net cash used in investing activities    (25.4)               (4.6)
Net cash used in financing activities    (116.7)              -
Net decrease in cash and cash            $             $       
equivalents                              (100.6)             (59.4)

NORTHERN TIER ENERGY LP
SUPPLEMENTAL OPERATING DATA
(unaudited)
                                        Three Months Ended
                                        March 31,
                                        2013       2012
REFINING SEGMENT
Key Operating Statistics
 Total refinery production (bpd)      86,079     76,437
 Total refinery throughput (bpd)      85,365     76,004
 Refined products sold (bpd)          84,694     77,923
 Per barrel of throughput:
 Refining gross margin             $25.81     $17.71
 Direct operating expenses         $4.89      $4.53
 Per barrel of refined products sold:
 Refining gross margin             $26.02     $17.28
 Direct operating expenses         $4.93      $4.41
Refinery product yields (bpd):
 Gasoline                             40,996     38,902
 Distillate                           28,656     24,160
 Asphalt                              10,629     8,323
 Other                                5,798      5,052
 Total                             86,079     76,437
RETAIL SEGMENT
Company operated stores:
Fuel gallons sold (in millions)       74.6       74.1
Fuel margin per gallon                $0.16      $0.18
Merchandise sales (in millions)       $75.8      $78.8
Merchandise margin %                  27.3%      25.8%
Number of stores at period end        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.



NORTHERN TIER ENERGY LP
ADJUSTED EBITDA RECONCILIATION
(in millions, unaudited)
                        Three Months Ended March 31, 2013
                        Refining    Retail       Other       Total
(in millions)
Net income (loss)     $   141.8   $     0.6  $   (23.0)  $   119.4
Adjustments:
Interest expense        -             -              6.4           6.4
Income tax benefit      -             -              (0.1)         (0.1)
Depreciation and        6.7           1.8            0.1           8.6
amortization
EBITDA subtotal         148.5         2.4            (16.6)        134.3
Minnesota Pipe Line     0.7           -              -             0.7
proportionate EBITDA
Turnaround and related  9.7           -              -             9.7
expenses
Equity-based            -             -              5.3           5.3
compensation expense
Unrealized gains on     -             -              (11.2)        (11.2)
derivative activities
Formation and offering  -             -              0.4           0.4
costs
Realized losses on      -             -              17.4          17.4
derivative activities
Adjusted EBITDA (a)   $   158.9   $     2.4  $          $   156.6
                                                     (4.7)
                        Three Months Ended March 31, 2012
                        Refining    Retail       Other       Total
(in millions)
Net income (loss)     $    78.7  $    (0.4)  $  (271.9)   $  (193.6)
Adjustments:
Interest expense        -             -              10.4          10.4
Depreciation and        5.8           1.8            0.9           8.5
amortization
EBITDA subtotal         84.5          1.4            (260.6)       (174.7)
Minnesota Pipe Line     0.7           -              -             0.7
proportionate EBITDA
Turnaround and related  3.5           -              -             3.5
expenses
Equity-based            -             -              0.4           0.4
compensation expense
Unrealized losses on    -             -              88.4          88.4
derivative activities
Contingent              -             -              65.7          65.7
consideration loss
Loss on early
extinguishment of       -             -              44.6          44.6
derivatives
Realized losses on      -             -              52.9          52.9
derivative activities
Adjusted EBITDA (a)   $    88.7  $     1.4  $          $   
                                                     (8.6)         81.5

(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, and contingent consideration arrangements. Adjusted EBITDA should
not be considered as an alternative to operating income or net income 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 and equity offerings. 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 March 31, 2013
(in millions, unaudited)
Net income                                $     119.4
Adjustments:
Interest expense                            6.4
Income tax provision                        (0.1)
Depreciation and amortization               8.6
EBITDA subtotal                             134.3
Minnesota Pipe Line proportionate EBITDA    0.7
Turnaround and related expenses             9.7
Equity-based compensation impacts           5.3
Unrealized gains on derivative activities   (11.2)
Formation and offering costs                0.4
Realized losses on derivative activities    17.4
Adjusted EBITDA (a)                       156.6
Cash interest expense                       (5.8)
Minnesota Pipe Line proportionate EBITDA    (0.7)
Realized losses on derivative activities    (17.4)
Capital expenditures (b)                    (9.1)
Formation and offering costs                (0.4)
Reserve for turnaround and related expenses (10.0)
Cash Available for Distribution (c)       $     113.2

(b) Capital expenditures include maintenance, replacement, and regulatory
capital projects. Expansion capital projects are not included.

(c) 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
                                               March 31,
                                               2013            2012
Refining revenue                               $  1,018.6     $   894.5
Refining cost of sales                         820.3           772.0
Refining gross product margin (d)              $   198.3    $   122.5
                                               Three Months Ended
                                               March 31,
                                               2013            2012
Retail gross margin:
Fuel margin                                    $    11.9   $    13.3
Merchandise margin                             20.7            20.3
Other margin                                   4.4             3.2
Retail gross margin                            37.0            36.8
Expenses:
Direct operating expenses                    28.3            29.4
Depreciation and amortization               1.8             1.8
Selling, general and administrative          6.3             6.0
Retail segment operating income (loss) (e)     $     0.6  $     (0.4)
                                               Three Months Ended
                                               March 31,
                                               2013            2012
Net income (loss)                              $   119.4    $   (193.6)
Adjusted for special items:
Contingent consideration loss                  -               65.7
Unrealized (gains) losses from derivative      (11.2)          88.4
activities
Loss on early extinguishment of derivatives    -               44.6
Adjusted Net Income (f)                        $   108.2    $     5.1

(d) 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.

(e) 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.

(f) Adjusted Net Income is a non-GAAP performance measure that Northern Tier
Energy believes is important to investors in evaluating its operating
performance. Northern Tier Energy's calculation of Adjusted Net Income may
differ from similar calculations of other companies in its industry, thereby
limiting their usefulness as comparative measures.

SOURCE Northern Tier Energy LP

Website: http://www.ntenergy.com
Contact: For Further Information, Contact: Maria Testani, Director, Planning
and Strategy, (203) 244-6550
 
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