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Northern Tier Energy (NTI) sheds 4.8% premarket after announcing last night a quarterly...

Northern Tier Energy (NTI) sheds 4.8% premarket after announcing last night a quarterly distribution cut to $1.27/share from $1.48 in its first post-IPO payout. The annualized yield on this high-flyer drops to 17.2%. (PR)
Comments (10)
  • No, it doesn't. The annualized yield is calculated using the median of the two and would be around 19%. Regardless of that, MLPs usually do not give an 17 or 19% yield. There is upside I would say. Not sure why people sell when they get $1.27/share. Stock had a big run up though; my shares are up >20% right now.
    12 Feb 2013, 08:17 AM Reply Like
  • i think nti was in "straight up" mode the last week or so. Some thought the distribution would be higher than the previous $1.48
    12 Feb 2013, 08:24 AM Reply Like
  • Well, now only 2% down PM. Recovering quite nicely.
    12 Feb 2013, 08:26 AM Reply Like
  • i will "buy" the distribution if it falls below $28
    12 Feb 2013, 08:31 AM Reply Like
  • We find it more attractive at 1.27 the we did at $1.48, adding to our position.
    12 Feb 2013, 09:02 AM Reply Like
  • Exactly. The $1.48 also covered a period of 5 months -- from IPO to EOY. Uh, sadly but most 'investors' are too lazy too lazy to figure that out. We'll have one more divie for Q1- probably in the same $1.27 range -- then they will take down the refinery for major overhaul. So, I would expect very little dividend for Q2, then back to roaring 'normal' by Q3...


    All the very best,
    12 Feb 2013, 09:40 AM Reply Like
  • No, the $1.48 covered two months, from IPO to end of 3rd quarter. This payout was for 4th Quarter.
    12 Feb 2013, 11:33 AM Reply Like
  • They will only have a short interruption of 10 days now - they replaced the take down later in the year. So the impact of this will be in the next distribution.
    12 Feb 2013, 11:52 AM Reply Like
  • Also they spent 30 million on expansion. That works for me. They are a variable distribution company, they will share profits, but will not pay what they don't have. They will use some profits for growth. This should be a real winner.
    12 Feb 2013, 10:21 AM Reply Like
  • NTI's earnings are riding the perfect wave: A huge price advantage on feedstock coming in from the Bakken and Canada to their St. Paul, MN refinery vs. East Coast refiners dependent on Brent Crude, insufficient refining capacity in the Upper Plains, and good demand. I don't expect this can last, but NTI's location will allow a few dollars/barrel in transport cost advantage after the East Coast refineries have switched sourcing to domestic crude brought in by rail. NTI will continue to reward investors until the Administration and the EPA abandon their unstated policy of resisting American Energy Independence from OPEC.
    12 Feb 2013, 04:21 PM Reply Like
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