Northern Tier Energy (NTI) Declares Prorated Q2 Distribution

Northern Tier Energy (NYSE: NTI) announced the declaration of a cash distribution of $0.18 per common unit for the prorated period April 1, 2016, through June 13, 2016. Pursuant to the terms of the Agreement and Plan of Merger dated as of December 21, 2015, by and among Western Refining, Inc. (“WNR”), the Company and various of their respective affiliates, the prorated distribution is expected to be paid on the closing date of the merger to common unitholders of record immediately prior to the closing date. Subject to the approval of Northern Tier’s common unit holders at the Company’s special unitholder meeting on June 23, 2016, and other closing conditions, the merger is currently expected to close on or about June 24, 2016.

The distribution totals $17.3 million and includes estimated available cash generated from operations for the period April 1, 2016, through June 13, 2016, less prorated reserves for cash interest expense of $5.9 million, cash income taxes paid of $0.1 million, MPL proportionate depreciation expense of $0.6 million, maintenance and regulatory capital expenditures of $7.0 million, reserves for turnaround and related expenses of $6.1 million, reserves for organic growth projects of $6.1 million, and the replenishment of unfunded reserves from the first quarter 2016 cash available for distribution calculation of $11.5 million. The prorated estimated available cash also includes an increase of $14.4 million related to a decrease in the working capital reserve.

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) operating performance, (ii) cash flows caused by, among other things, fluctuations in the prices of crude oil and other feedstocks and the prices received for finished products, (iii) working capital requirements including inventory fluctuations, (iv) maintenance and regulatory capital expenditures, (v) reserves for organic growth capital expenditures and (vi) cash reserves deemed necessary or appropriate by the Board of Directors of Northern Tier's general partner, including amounts to replenish unfunded reserves from the calculation of first quarter 2016 cash available for distribution.

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