Skip to main contentCITIBANK 2014 ICG MARKETS EQUITIES GLOBAL ENERGY AND UTILITIES CONFERENCE – Northern Tier Energy Lp Investor Presentation | Shale Experts
Citibank 2014 ICG Markets-Equities: Global Energy & Utilities Conference May 2014
NORTHERN TIER ENERGY OVERVIEW
Overview of Northern Tier Energy (NTI) NTI conducts its operations through two integrated businesses: the St. Paul Park refinery and SuperAmerica retail convenience stores 89,500 barrels per calendar day (and 96,500 barrels per stream…
Key Investment Highlights Strategically-Located Refinery with Advantageous Access to Crude Oil Supplies Attractive Regional Refined Products Supply / Demand Dynamics Integrated Refining and Retail Distribution Operations Flexible…
Northern Tier Energy Asset Overview St. Paul Park Refinery Product Yields1 82% Light Products Other 10% Asphalt 8% Gasoline 46% Distillates 36% Total Yield: 92,932 bpd St. Paul Park Refinery Crude Feedstock1 Mostly…
How NTI Makes Money NTI makes money by buying crude oil and selling refined products (i.e., gasoline and diesel) The difference between refined product prices and the cost of crude oil is commonly referred to as a crack spread NTI…
Key Drivers of NTI's Refining Margins NTI Product Premium Refinery Optimization Strategy to improve the yields of higher value products and Retail Growth at the refinery and grow SuperAmericas retail footprint Dedicated Retail…
Plentiful Crude Oil Supply North Dakota Crude Oil Production & Producing Wells 2 Western Canadian Crude Oil Supply1 Thousands of bbls/day 950 10,500 Crude Production: 934,000 bpd (Jan-2014) 850 Producing Wells: 10,105 (Jan-2014)…
Crude Oil Pricing Differentials Support Refining Margins NTI has the access and ability to process the plentiful and growing supplies of crude oil from Canada and North Dakota Ability to source inexpensive crude oil supports refining…
Crude Oil Supply Optionality Configuration of NTIs refinery allows it to process a variety of light, heavy, sweet and sour crude oils Many of the crude oils that NTI can process have historically priced at an average discount to the…
June 30, 2012 Integrated and Attractive Retail Distribution NTIs retail distribution operations consist of 164 company- Fuel Sold / Store / Month (000 gallons) operated and 79 franchised SuperAmerica convenience stores 173 163 157…
Flexible Refinery with Strong Operating and Safety Record Approximately 327 million invested since 2006 to upgrade and modernize the St. Paul Park refinery to enable: Operational Redundancy Production of ultra low sulfur diesel Crude…
Focus on Growth Opportunities Strategic Focus NTI intends to pursue opportunities to grow its business Crude Oil Capacity & Product and to reinforce its strategic focus Sourcing Throughput Pricing Seeks to enhance crude oil sourcing…
Key Refining Performance Metrics Gross Margin1 Throughput ( per throughput barrel) (millions of barrels) 8.3 7.7 25.85 18.08 Group 3 Benchmark Crack Spread2 Direct Operating Expenses3 ( per throughput barrel) 27.63…
Cash Available for Distribution Q1 2014 ( in millions) For the 3 months ending March 31, 2014 Net income 71.5 Adjustments: Interest expense 6.2 Income tax provision 0.1 Depreciation and amortization 9.9 EBITDA subtotal 87.7…
Operating and Capex Guidance Q2 2014 Q2 2014 Low High Refinery Statistics: Bakken (bpd) 58,000 60,000 Synthetic (bpd) 18,000 20,000 Western Canadian Select (bpd) 11,000 13,000 Total throughput (bpd) 87,000 93,000 Total refined…
Low Leverage with Ample Liquidity Position Liquidity Overview Leverage Overview Available Revolver Capacity: 235 million1 Cash and Equivalents: 129 million1 Total Debt / LTM Adjusted EBITDA: 0.9x 2 Total Liquidity: 364 million NTI…
Key Investment Highlights Strategically-Located Refinery with Advantageous Access to Crude Oil Supplies Attractive Regional Refined Products Supply / Demand Dynamics Integrated Refining and Retail Distribution Operations Flexible…
Q&A 22
APPENDIX
St. Paul Park Refinery Aerial View St Paul Park Refinery Cottage Grove Storage 24
Minnesota Pipeline Operations Integrated Crude Supply via Minnesota Pipeline Minnesota Pipeline Service Area Minnesota Pipeline is a 300-mile, 455,000 bpd crude oil pipeline system linking the Enbridge pipeline hub in Clearbrook,…
Insurance Coverage NTI has a comprehensive insurance package which covers property damage (PD) and business interruption (BI) on the refinery Maximum loss limit of up to 1 billion combined across PD and BI insurance Business…
Partnership Distribution Policy NTI intends to make distributions within 60 days after the end of each quarter Distributions for each quarter will be in an amount equal to the Available Cash generated in such quarter Available Cash for…
Adjusted EBITDA Reconciliation Predecessor Successor Eleven Months June 23, 2010 Ended (Inception) to Year Ended Year Ended Year Ended Quarter Quarter LTM Ended November 30, December 31, December 31, December 31, December 31, Ended…
Refining Gross Product Margin Per Barrel of Throughput Reconciliation Predecessor Successor Eleven June 23, 2010 Months Ended (Inception) to Year Ended Year Ended Year Ended Quarter Quarter November 30, December 31, December 31,…
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