Sorry for posting about another MLP, but NTI is also a refiner and doesn't have a Yahoo message board yet. Also, what it said this morning may affect CLMT's Q3 earnings. They are not directly comparable because CLMT has a lot of specialty oils, whereas NTI is purely gasoline, I think. Also NTI has some retail ops for selling some of the gas it produces. I think NTI is very similar to the Superior acquisition that CLMT made last year.
Anyway, when NTI went public in July, it projected EBITDA for Q3 around $ 120 MM. Today they announced the projection was a little off - EBITDA is now expected to be between $ 235 - $ 255 MM. So just in 3 months, the business produced twice as much EBITDA as they expected.
So CLMT should be having a bow-out Q, I would think. I don't know how long the good times will last, but for now, things are great.
Different approach to distributions. CLMT tries to maintain constant distributions that increase over time, so it retains its DCF in excess of the amount of distributions it decides to pay. NTI has a great Q, similar to CLMT, and as one of the new MLPs with variable distribution policies, it pays a great distribution - $ 1.48 on a $ 24 unit price. No promise that the distribution will continue at that level, of course, but as long as the refining businesses do well, the distribution should be fine.
So CLMT retains DCF, probably to help fund future refinery buy-outs, while NTI simply pays out its DCF.
Again, sorry for cluttering this board with NTI comments, but the 2 MLPs are sort of similar businesses, and there is no NTI board.