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

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

Company completes planned turnaround and throughput expansion project
resulting in 10% increased capacity and enhanced distillate yield moving
forward

-- Declares second quarter distribution of $0.68 per common unit that will be
paid in cash on August 29, 2013

-- Cumulative cash distributions since initial public offering of $4.66 per
common unit

PR Newswire

RIDGEFIELD, Conn., Aug. 12, 2013

RIDGEFIELD, Conn., Aug. 12, 2013 /PRNewswire/ --Northern Tier Energy LP and
its subsidiaries (NYSE: NTI) ("Northern Tier Energy") today reported results
for the second quarter ending June 30, 2013.

Net income was $63.9 million compared to $245.6 million for the second quarter
of 2012 and Adjusted EBITDA for the second quarter of 2013 was $85.9 million,
a decrease of $160.4 million compared to $246.3 million for the second quarter
of 2012. These decreases were driven by a 32% decline in refinery throughput
due to planned turnaround activities that resulted in a full plant shutdown
for part of the quarter. Tightened crude oil price differentials also
contributed to the decrease in Adjusted EBITDA. See thetable below for a
full reconciliation of non-GAAP performance measures.

"This quarter we successfully completed a planned major plant turnaround with
zero loss time injuries despite unseasonable weather conditions," said Hank
Kuchta, Chief Executive Officer and President of Northern Tier Energy."We
also took advantage of our planned downtime to complete a capital project that
both enhances our product yield and results in a 10% capacity enhancement of
our facility. While our quarterly operating results were impacted by lower
throughput due to the planned shutdown and tighter crude spreads, we remain
well positioned to protect our competitive advantages of access to price
advantaged crudes and favorable product gross margins. We anticipate that
unitholders will realize these competitive advantages through our variable
quarterly distributions."

"With this quarter's announced distribution, we will have paid cumulative cash
distributions to our unitholders of $4.66 per unit, which amounts to $429
million in the aggregate, since our IPO in July 2012," concluded Kuchta.

Quarterly Distribution

The Board of Directors of Northern Tier Energy GP LLC, the general partner of
Northern Tier Energy LP, has approved a second quarter distribution of $0.68
per unit that will be paid in cash on August 29, 2013 to common unit holders
of record as of the close of business on August 22, 2013. Cash available for
distribution totaled approximately $63 million for the second quarter of
2013.

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.

Second Quarter Operating Segment Highlights

Refining Segment
The Refining segment's operating income was $48.1 million for the second
quarter of 2013 compared to $235.1 million for the second quarter of 2012.
Refining gross product margins were $23.92 per barrel of throughput for the
second quarter of 2013 compared to $38.60 per barrel for the second quarter of
2012. This decrease is primarily due to tightened crude oil price
differentials versus the benchmark WTI crude oil prices as well as lower
benchmark crack spreads in the second quarter of 2013 compared to the second
quarter of 2012.

In addition to lower product margins per barrel, throughput and sales volumes
decreased compared to the prior year quarter. Total throughput was 55,486
barrels per day for the second quarter of 2013 compared to 81,906 barrels per
day for the prior year quarter. Sales volumes decreased to 68,395 barrels per
day for the second quarter of 2013 from 88,773 barrels per day for the second
quarter of 2012. These decreases were due to our planned spring turnaround
activities which resulted in downtime at the St. Paul Park refinery for a
portion of the 2013 second quarter.

Retail Segment
Retail operating income was $8.0 million in the second quarter of 2013
compared to $4.8 million in the second quarter of 2012. Fuel margins were
$0.23 per gallon for the second quarter of 2013 compared to $0.22 per gallon
for the same period last year. Fuel gallons sold at company-operated retail
stores were fairly consistent compared to 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 June 30, 2013, Northern Tier Energy's cash on hand and
availability under the ABL Facility amounted to $291 million as compared to
$284 million as of June 30, 2012. Northern Tier Energy continues to maintain a
strong balance sheet with a net debt to LTM EBITDA ratio of 0.4x.

Cash provided by operating activities for the second quarter of 2013 was $82.6
million compared to $154.7 million for the second quarter of 2012. Capital
expenditures for the second quarter of 2013 were $42.4 million of which $27.0
million was used to fund discretionary projects, primarily the refinery's
capacity expansion. 

Q3 2013 Operating and Rest of Year Capital Expenditure Guidance

Northern Tier Energy has provided key operating metrics for the third quarter
of 2013 and an update on rest of year capital expenditures. Northern Tier
Energy projects it will realize total throughput and sales of between 90,000
and 95,000 barrels per day at the Saint Paul Park Refinery. Direct operating
expense per barrel of throughput at the Saint Paul Park Refinery is expected
to be between $4.50 and $4.75, not including turnaround expenditures. Total
capital expenditures are expected to be $20 million and $17 million for the
third and fourth quarter of 2013, respectively. See thetable below for
additional key metric guidance.

Conference Call Information

The Northern Tier Energy conference call to discuss financial results for the
second quarter ending June 30, 2013 is scheduled for Tuesday, August 13, 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
877-280-4957 or 857-244-7314 and the passcode 61031520. 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 61070303.

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 92,500 barrels
per stream day refinery located in St. Paul Park, Minnesota. Northern Tier
Energy also operates 163 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 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  Six Months Ended
                                      June 30,            June 30,
                                      2013       2012     2013       2012
Revenue                               $        $      $        $  
                                      1,131.2    1,155.2  2,246.2    2,154.3
Costs, expenses and other:
Cost of sales                         965.0      825.0    1,844.5    1,664.8
Direct operating expenses             62.1       61.5     126.4      122.2
Turnaround and related expenses       27.3       11.5     37.0       15.0
Depreciation and amortization        9.4        7.8      18.0       16.3
Selling, general and administrative  20.9       24.8     46.4       45.1
Formation and offering costs          0.5        1.0      0.9        1.0
Contingent consideration loss        -          0.1      -          65.8
Other income, net                     (1.6)      (1.2)    (6.5)      (3.3)
Operating income                      47.6       224.7    179.5      227.4
Realized losses from derivative       (3.1)      (67.4)   (20.5)     (120.3)
activities
Loss on early extinguishment of       -          (92.2)   -          (136.8)
derivatives
Unrealized gains from derivative      28.7       191.3    39.9       102.9
activities
Interest expense, net                 (6.3)      (10.7)   (12.7)     (21.1)
Earnings before income taxes          66.9       245.7    186.2      52.1
Income tax provision                  (3.0)      (0.1)    (2.9)      (0.1)
Net earnings                          $      $     $       $    
                                      63.9      245.6   183.3     52.0
Net earnings per common unit, basic   $               $    
and diluted                           0.70               1.99





NORTHERN TIER ENERGY LP
SELECTED OPERATING SEGMENT DATA
(in millions, unaudited)
                               Three Months Ended    Six Months Ended
                               June 30,              June 30,
                               2013     2012         2013         2012
OPERATING INCOME:
Refining                       $     $   235.1  $   189.9  $   313.6
                               48.1
Retail                         8.0      4.8          8.6          4.0
Corporate and unallocated      (8.5)    (15.2)       (19.0)       (90.2)
costs
TOTAL OPERATING INCOME         47.6     224.7        179.5        227.4

                               25.6     31.7         19.4         (154.2)
Net gains (losses) on
derivative activities
Interest expense, net          (6.3)    (10.7)       (12.7)       (21.1)
Income tax provision           (3.0)    (0.1)        (2.9)        (0.1)
NET EARNINGS                   $     $   245.6  $   183.3  $    52.0
                               63.9





NORTHERN TIER ENERGY LP
SELECTED BALANCE SHEET AND CASH FLOW DATA
(in millions, unaudited)
                                       June 30,             December 31,
                                       2013                 2012
Cash and Cash Equivalents              $           $       
                                       98.5                 272.9
Total Assets                           $              $      
                                       1,085.3             1,136.8
Total Debt and Financing Obligations   $            $       
                                       282.3                282.5
Equity                                 $            $       
                                       442.8                483.8
                                       Six Months Ended June 30,
                                       2013                 2012
Net cash provided by operating         $            $        
activities                             124.1                99.9
Net cash used in investing activities  (68.4)               (12.4)
Net cash used in financing activities  (230.1)              (40.0)
Net increase (decrease) in cash and    $             $        
cash equivalents                       (174.4)             47.5



NORTHERN TIER ENERGY LP
SUPPLEMENTAL OPERATING DATA
(unaudited)
                                        Three Months Ended  Six Months Ended
                                        June 30,            June 30,
                                        2013       2012     2013      2012
REFINING SEGMENT
Key Operating Statistics
 Total refinery production (bpd)      55,594     82,069   70,752    79,253
 Total refinery throughput (bpd)      55,486     81,906   70,343    78,659
 Refined products sold (bpd)          68,395     88,773   76,499    83,348
 Per barrel of throughput:
 Refining gross margin             $23.92     $38.60   $25.06    $28.65
 Direct operating expenses         $6.79      $4.25    $5.65     $4.40
 Per barrel of refined products sold:
 Refining gross margin             $19.41     $35.61   $23.05    $27.04
 Direct operating expenses         $5.51      $3.92    $5.19     $4.15
Refinery product yields (bpd):
 Gasoline                             26,715     38,186   33,816    38,544
 Distillate                           19,093     26,742   23,848    25,451
 Asphalt                              6,212      12,455   8,408     10,389
 Other                                3,574      4,686    4,680     4,869
 Total                             55,594     82,069   70,752    79,253
Refinery throughput (bpd):
 Crude oil                            54,524     80,796   68,654    77,020
 Other feedstocks                     962        1,110    1,689     1,639
 Total                             55,486     81,906   70,343    78,659
Crude oil by type (bpd):
Light crude                             32,466     44,666   37,149    45,713
Synthetic crude                         9,449      13,337   14,134    12,473
Heavy crude                             12,609     22,793   17,371    18,834
 Total                             54,524     80,796   68,654    77,020
RETAIL SEGMENT
Company operated stores:
Fuel gallons sold (in millions)       77.0       77.5     151.6     151.6
Fuel margin per gallon                $0.23      $0.22    $0.20     $0.20
Merchandise sales (in millions)       $86.0      $90.7    $161.8    $169.6
Merchandise margin %                  27.0%      24.9%    27.2%     25.3%
Number of stores at period end        163        166      163       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 June 30, 2013
                        Refining    Retail       Other       Total
(in millions)
Net income           $    48.1  $     8.0  $         $   
                                                     7.8           63.9
Adjustments:
Interest expense        -             -              6.3           6.3
Income tax provision    -             -              3.0           3.0
Depreciation and        7.5           1.8            0.1           9.4
amortization
EBITDA subtotal         55.6          9.8            17.2          82.6
Minnesota Pipe Line     0.7           -              -             0.7
proportionate EBITDA
Turnaround and related  27.3          -              -             27.3
expenses
Equity-based            -             -              0.4           0.4
compensation expense
Unrealized gains on     -             -              (28.7)        (28.7)
derivative activities
Formation and offering  -             -              0.5           0.5
costs
Realized losses on      -             -              3.1           3.1
derivative activities
Adjusted EBITDA (a)   $    83.6  $     9.8  $          $   
                                                     (7.5)         85.9
                        Three Months Ended June 30, 2012
                        Refining    Retail       Other       Total
(in millions)
Net income            $   235.1   $     4.8  $         $   245.6
                                                     5.7
Adjustments:
Interest expense        -             -              10.7          10.7
Income tax provision    -             -              0.1           0.1
Depreciation and        6.1           1.6            0.1           7.8
amortization
EBITDA subtotal         241.2         6.4            16.6          264.2
Minnesota Pipe Line     0.7           -              -             0.7
proportionate EBITDA
Turnaround and related  11.5          -              -             11.5
expenses
Equity-based            -             -              0.5           0.5
compensation expense
Unrealized gains on     -             -              (191.3)       (191.3)
derivative activities
Contingent              -             -              0.1           0.1
consideration loss
Loss on early
extinguishment of       -             -              92.2          92.2
derivatives
Formation and offering  -             -              1.0           1.0
costs
Realized losses on      -             -              67.4          67.4
derivative activities
Adjusted EBITDA (a)   $   253.4   $     6.4  $   (13.5)  $   246.3
                        Six Months Ended June 30, 2013
                        Refining    Retail       Other       Total
(in millions)
Net income (loss)     $   189.9   $     8.6  $   (15.2)  $   183.3
Adjustments:
Interest expense        -             -              12.7          12.7
Income tax provision    -             -              2.9           2.9
Depreciation and        14.2          3.6            0.2           18.0
amortization
EBITDA subtotal         204.1         12.2           0.6           216.9
Minnesota Pipe Line     1.4           -              -             1.4
proportionate EBITDA
Turnaround and related  37.0          -              -             37.0
expenses
Equity-based            -             -              5.7           5.7
compensation expense
Unrealized gains on     -             -              (39.9)        (39.9)
derivative activities
Formation and offering  -             -              0.9           0.9
costs
Realized losses on      -             -              20.5          20.5
derivative activities
Adjusted EBITDA (a)   $   242.5   $    12.2   $   (12.2)  $   242.5
                        Six Months Ended June 30, 2012
                        Refining    Retail       Other       Total
(in millions)
Net income (loss)     $   313.6   $     4.0  $  (265.6)   $   
                                                                   52.0
Adjustments:
Interest expense        -             -              21.1          21.1
Income tax provision    -             -              0.1           0.1
Depreciation and        12.1          3.8            0.4           16.3
amortization
EBITDA subtotal         325.7         7.8            (244.0)       89.5
Minnesota Pipe Line     1.4           -              -             1.4
proportionate EBITDA
Turnaround and related  15.0          -              -             15.0
expenses
Equity-based            -             -              0.9           0.9
compensation expense
Unrealized gains on     -             -              (102.9)       (102.9)
derivative activities
Contingent              -             -              65.8          65.8
consideration loss
Formation and offering  -             -              1.0           1.0
costs
Loss on early
extinguishment of       -             -              136.8         136.8
derivatives
Realized losses on      -             -              120.3         120.3
derivative activities
Adjusted EBITDA (a)   $   342.1   $     7.8  $   (22.1)  $   327.8

(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 June 30, 2013
(in millions, unaudited)
Net income                                $      63.9
Adjustments:
Interest expense                            6.3
Income tax provision                        3.0
Depreciation and amortization               9.4
EBITDA subtotal                             82.6
Minnesota Pipe Line proportionate EBITDA    0.7
Turnaround and related expenses             27.3
Equity-based compensation impacts           0.4
Unrealized gains on derivative activities   (28.7)
Formation and offering costs                0.5
Realized losses on derivative activities    3.1
Adjusted EBITDA (a)                       85.9
Cash interest expense                       (5.1)
Current tax provision                       (0.4)
Minnesota Pipe Line proportionate EBITDA    (0.7)
Realized losses on derivative activities    (3.1)
Capital expenditures (b)                    (13.5)
Formation and offering costs                (0.5)
Reserve for turnaround and related expenses -
Cash Available for Distribution (c)       $      62.6

(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          Six Months Ended
                         June 30,                    June 30,
                         2013          2012          2013          2012
Refining revenue         $  1,014.8   $  1,039.2   $  2,033.4   $  1,933.7
Refining cost of sales   894.0         751.5         1,714.3       1,523.5
Refining gross product   $   120.8  $   287.7  $   319.1  $  
margin (d)                                                         410.2
                         Three Months Ended          Six Months Ended
                         June 30,                    June 30,
                         2013          2012          2013          2012
Retail gross margin:
Fuel margin              $          $          $          $   
                         17.7         17.1         30.3         30.3
Merchandise margin       23.2          22.6          44.0          42.9
Other margin             4.8           2.8           8.4           6.1
Retail gross margin      45.7          42.5          82.7          79.3
Expenses:
Direct operating        29.6          29.8          57.9          59.2
expenses
Depreciation and        1.8           1.6           3.6           3.8
amortization
Selling, general and    6.3           6.3           12.6          12.3
administrative
Retail segment operating $         $         $         $    
income (e)               8.0          4.8          8.6          4.0

(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.



NORTHERN TIER ENERGY LP
Q3 2013 OPERATING AND REST OF YEAR CAPITAL EXPENDITURE GUIDANCE
                                                         Q3 2013
                                                         Low     High
Refinery Statistics:
Total throughput (bpd)                                   90,000  95,000
Total refined products sold (bpd)                        90,000  95,000
Direct opex ex. turnaround ($/throughput bbl)            $4.50   $4.75
Retail Statistics:
Forecasted gallons (mm)                                  77
Retail fuel margin ($/gallon)                            $0.16
Merchandise sales ($ in mm)                              $93
Merchandise gross margin (%)                             27.0%
Direct operating expense ($ in mm)                       $31
Other Guidance ($ in mm):
Turnaround cash reserve                                  $5      $10
Expansion capital cash reserve                           $5      $10
SG&A                                                     $22
Depreciation & amortization                              $10
Cash interest expense                                    $6
Current tax expense                                      $1
Capital Program ($ in mm):                               Q313    Q413
Maintenance and replacement capital                      $8      $8
Waste Water Treatment (non recurring regulatory capital) 9       8
Discretionary capital                                    3       1
Total planned capital expenditures                       $20     $17



SOURCE Northern Tier Energy LP

Website: http://www.ntenergy.com
Contact: Alpha IR Group, Phone: (203) 244-6544, Email: NTI@alpha-IR.com
 
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