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Northern Tier Energy LP Message Board

  • boss1819 boss1819 Aug 15, 2013 10:22 AM Flag

    Increasing shareholder value

    Does anyone else think that shareholder value would be improved if NTI would sell the retail stores and just focus on refinery and pipeline operations?

    Sentiment: Buy

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    • I think selling off the retail division would be a mistake. There are 236 Super America locations that all receive their fuel supplies from the nearby NTI refinery. As a whole, this exclusive business represents a large customer for NTI refined products. The Super America brand is well recognized and respected in the communities where they are located just as the refinery in St. Paul maintains a good reputation and relationship in its local community. The retail segment of NTI may only produce about $8 Million in profits per quarter but they do a great job of bringing the refinery's products to the consumer within the region of the refinery.
      Should the retail segment be sold, many of these retail locations may purchase their fuel products from Flint Hills refinery located just a few miles away. This would surely be detrimental to the sales and profits of the NTI refinery. The refinery itself is limited in its ability to expand much further as it is located in a populated and developed area. Super America stores may play a key role in the growth of NTI as a whole in future years and I believe it would be a mistake to sell the retail division.

      Sentiment: Buy

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