Bank of America Merrill Lynch 2014 Refining Conference March 2014
NORTHERN TIER ENERGY OVERVIEW
Overview of Northern Tier Energy NTE 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 day)…
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 80% Light Other Products 6% Asphalt Gasoline 11% 45% Distillates 35% Total Yield: 76,967 bpd St. Paul Park Refinery Crude Feedstock1 Mostly…
How NTE Makes Money NTE 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 is commonly referred to as a crack spread NTE enjoys…
Key Drivers of NTE's Strong Refining Margins NTE 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 Supply of Heavy Canadian and Light North Dakota Crude Western Canadian Crude Supply1 Canadian crude oil production is expected to double 7,000 Actual Forecast from 3.0 million bpd in 2011 to 6.2 million bpd in 2030 6,000…
Crude Pricing Differentials Help Support Strong Refining Margins NTE has the access and ability to process the plentiful and growing supplies of crude from Canada and North Dakota Ability to source inexpensive crude helps support strong…
Flexibility to Optimize Crude Oil Supply Configuration of NTEs refinery allows it to process a variety of light, heavy, sweet and sour crudes Provides NTE with the flexibility to take advantage of the prevailing crude / product market…
June 30, 2012 Integrated and Attractive Retail Distribution Operations NTEs retail distribution operations consist of 164 company- Fuel Sold / Store / Month (000 gallons) operated and 75 franchised SuperAmerica convenience stores 169…
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 NTE intends to pursue opportunities to grow its business Crude 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) 30.7 27.5 29.62 24.49 18.89 15.34 7.3 8.3 Q4 Full Year Q4 Full Year Group 3 Benchmark Crack Spread2 Direct Operating…
Cash Available for Distribution Reconciliation ( in millions) For the 3 months ending 12/31/13 Net income 20.6 Adjustments: Interest expense 7.9 Income tax benefit (0.1) Depreciation and amortization 10.3 EBITDA subtotal 38.7…
Low Leverage with Strong Liquidity Position Liquidity Overview Leverage Overview Available Revolver Capacity: 134 million1 Cash and Equivalents: 86 million1 Total Debt / LTM Adjusted EBITDA: 0.8x 2 Total Liquidity: 220 million NTE…
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 21
APPENDIX
St. Paul Park Refinery Aerial View St Paul Park Refinery Cottage Grove Storage 23
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 NTE 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 NTE 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 Year Ended Ended (Inception) to Year Ended Year Ended Year Ended December 31, November 30, December 31, December 31, December 31, December 31, 2009…
Refining Gross Product Margin Per Barrel of Throughput Reconciliation Predecessor Successor Eleven June 23, 2010 Year Ended Months Ended (Inception) to Year Ended Year Ended Year Ended December 31, November 30, December 31,…
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