Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 6-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'NTI | ' |
Entity Registrant Name | 'Northern Tier Energy LP | ' |
Entity Central Index Key | '0001533454 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 92,707,773 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $129.40 | $85.80 |
Receivables, less allowance for doubtful accounts | 237 | 242 |
Inventories | 219.5 | 173.5 |
Other current assets | 13.2 | 23.7 |
Total current assets | 599.1 | 525 |
NON-CURRENT ASSETS | ' | ' |
Equity method investment | 87.6 | 86.2 |
Property, plant and equipment, net | 446.5 | 446.2 |
Intangible assets | 33.8 | 33.8 |
Other assets | 25.9 | 26.6 |
Total Assets | 1,192.90 | 1,117.80 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 404.3 | 367 |
Accrued liabilities | 45.2 | 48.5 |
Total current liabilities | 449.5 | 415.5 |
NON-CURRENT LIABILITIES | ' | ' |
Long-term debt | 275 | 275 |
Lease financing obligation | 8.4 | 8.4 |
Other liabilities | 17.8 | 17.8 |
Total liabilities | 750.7 | 716.7 |
Commitments and contingencies | 0 | 0 |
EQUITY | ' | ' |
Accumulated other comprehensive loss | -1.9 | -2 |
Partners' capital (92,707,773 and 92,100,363 units issued and outstanding at March 31, 2014 and December 31, 2013, respectively) | 444.1 | 403.1 |
Total equity | 442.2 | 401.1 |
Total Liabilities and Equity | $1,192.90 | $1,117.80 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Partners' capital, units issued | 92,707,773 | 92,100,363 |
Partners' capital, units outstanding | 92,707,773 | 92,100,363 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Income Statement [Abstract] | ' | ' | ||
Revenues | $1,346.30 | [1] | $1,115 | [1] |
COSTS, EXPENSES AND OTHER | ' | ' | ||
Cost of sales | 1,156.30 | [1] | 879.2 | [1] |
Direct operating expenses | 66.4 | 64.3 | ||
Turnaround and related expenses | 0.5 | 9.7 | ||
Depreciation and amortization | 9.9 | 8.6 | ||
Selling, general and administrative | 27 | 25.5 | ||
Reorganization and related costs | 9.4 | 0.4 | ||
Other income, net | -1 | -4.9 | ||
Operating Income | 77.8 | 132.2 | ||
Gains (losses) from derivative activities | 0 | -6.5 | ||
Interest expense, net | -6.2 | -6.4 | ||
INCOME BEFORE INCOME TAXES | 71.6 | 119.3 | ||
Income tax provision | -0.1 | 0.1 | ||
NET INCOME | 71.5 | 119.4 | ||
Other comprehensive income, net of tax | 0.1 | 0.1 | ||
COMPREHENSIVE INCOME | $71.60 | $119.50 | ||
BASIC AND DILUTED: | ' | ' | ||
Weighted average number of units outstanding (in shares) | 92,166,841 | 91,915,000 | ||
Earnings per common unit (in dollars per share) | $0.77 | $1.30 | ||
[1] | Excise taxes included in revenue and cost of sales $ 316.4 $ 300.1 $ 242.9 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $71.50 | $119.40 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 9.9 | 8.6 |
Non-cash interest expense | 0.6 | 0.6 |
Equity-based compensation expense | 4.3 | 5.3 |
Equity based compensation related to reorganization | 3.1 | ' |
Income from equity method investment | -1.5 | -3.4 |
(Gain) loss from the change in fair value of outstanding derivatives | 0.2 | -11.2 |
Changes in assets and liabilities, net: | ' | ' |
Accounts receivable | 5 | -5.5 |
Inventories | -46 | -55.4 |
Other current assets | 10.5 | -10.8 |
Accounts payable and accrued expenses | 34 | -7.9 |
Other, net | -0.1 | -1.6 |
Net cash provided by operating activities | 91.5 | 41.5 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -10 | -26.9 |
Return of capital from investments | 0 | 1.5 |
Net cash used in investing activities | -10 | -25.4 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Equity distributions | -37.9 | -116.7 |
Net cash used in financing activities | -37.9 | -116.7 |
CASH AND CASH EQUIVALENTS | ' | ' |
Change in cash and cash equivalents | 43.6 | -100.6 |
Cash and cash equivalents at beginning of period | 85.8 | 272.9 |
Cash and cash equivalents at end of period | $129.40 | $172.30 |
Description_of_the_Business_an
Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of the Business and Basis of Presentation | ' |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | |
Description of the Business | |
Northern Tier Energy LP (“NTE LP” or the “Company”) is an independent downstream energy company with refining, retail and pipeline operations that serve the Petroleum Administration for Defense District II (“PADD II”) region of the United States. NTE LP holds 100% of the membership interest in Northern Tier Energy LLC (“NTE LLC”) and was organized in such a way as to be treated as a master limited partnership (“MLP”) for tax purposes. | |
NTE LP includes the operations of NTE LLC, St. Paul Park Refining Co. LLC (“SPPR”), Northern Tier Retail Holdings LLC (“NTRH”) and Northern Tier Oil Transport LLC (“NTOT”). NTRH is the parent company of Northern Tier Retail LLC (“NTR”) and Northern Tier Bakery LLC (“NTB”). NTR is the parent company of SuperAmerica Franchising LLC (“SAF”). In connection with the Company's IPO on July 31, 2012, NTE LLC contributed all of its membership interests in NTR, NTB and SAF to NTRH in exchange for all of the membership interests in NTRH. Effective August 1, 2012, NTRH elected to be treated as a corporation for income tax purposes in order to preserve the MLP tax status of NTE LP. SPPR has a 17% interest in MPL Investments Inc. (“MPLI”) and a 17% interest in Minnesota Pipe Line Company, LLC (“MPL”). MPLI owns 100% of the preferred interest in MPL, which owns and operates a 455,000 barrel per day (“bpd”) crude oil pipeline in Minnesota (see Note 2). NTOT is a crude oil trucking business in North Dakota that collects crude oil directly from wellheads in the Bakken Shale and transports it to regional pipeline and rail facilities. | |
On November 12, 2013, a new subsidiary of Western Refining, Inc. (“Western Refining”) acquired 100% of Northern Tier Energy GP LLC ("NTE GP"), the general partner of NTE LP, and 35,622,500 common units, or 38.7%, of NTE LP for total consideration of $775 million plus the distribution on the common units acquired with respect to the quarter ended September 30, 2013. The balance of the limited partner units remain publicly traded. NTE LP received no proceeds from this transaction. | |
As of March 31, 2014, SPPR, which is located in St. Paul Park, Minnesota, has total crude oil throughput capacity of 89,500 barrels per calendar day or 96,500 barrels per stream day. Refining operations include crude fractionation, catalytic cracking, hydrotreating, reforming, alkylation, sulfur recovery and a hydrogen plant. The refinery processes predominately North Dakota and Canadian crude oils into products such as gasoline, diesel, jet fuel, kerosene, asphalt, propane, propylene and sulfur. The refined products are sold to markets primarily located in the Upper Great Plains of the United States. | |
As of March 31, 2014, NTR operates 164 convenience stores under the SuperAmerica brand and SAF supports 79 franchised stores which also utilize the SuperAmerica brand. These 243 SuperAmerica stores are primarily located in Minnesota and Wisconsin and sell gasoline, merchandise and, in some locations, diesel fuel. There is a wide range of merchandise sold at the stores including prepared foods, beverages and non-food items. The merchandise sold includes a significant number of proprietary items. | |
NTB prepares and distributes food products under the SuperMom’s Bakery brand primarily to SuperAmerica branded retail outlets. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for the periods reported have been included. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014, or for any other period. The consolidated balance sheet at December 31, 2013 has been derived from the audited financial statements of NTE LP at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying consolidated financial statements should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K. |
Summary_of_Principal_Accountin
Summary of Principal Accounting Policies | 3 Months Ended | |
Mar. 31, 2014 | ||
Accounting Policies [Abstract] | ' | |
Summary of Principal Accounting Policies | ' | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
The significant accounting policies set forth in Note 2 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, appropriately represent, in all material respects, the current status of accounting policies and are incorporated herein by reference. | ||
Principles of Consolidation | ||
NTE LP is a Delaware limited partnership which consolidates all accounts of NTE LLC and its subsidiaries - SPPR, NTRH and NTOT. All intercompany accounts have been eliminated in these consolidated financial statements. | ||
The Company’s common equity interest in MPL is accounted for using the equity method of accounting. Equity income from MPL represents the Company’s proportionate share of net income available to common equity owners generated by MPL. | ||
The equity method investment is assessed for impairment whenever changes in facts or circumstances indicate a loss in value has occurred. When the loss is deemed to be other than temporary, the carrying value of the equity method investment is written down to fair value, and the amount of the write-down is included in net income. See Note 6 for further information on the Company’s equity method investment. | ||
MPLI owns all of the preferred membership units of MPL. This investment in MPLI, which provides the Company no significant influence over MPLI, is accounted for as a cost method investment. The investment in MPLI is carried at a value of $6.8 million at March 31, 2014 and December 31, 2013 and is included in other noncurrent assets within the consolidated balance sheets. | ||
Use of Estimates | ||
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Actual results could differ from those estimates. | ||
Operating Segments | ||
The Company has two reportable operating segments; Refining and Retail (see Note 18 for further information on the Company’s operating segments). The Refining and Retail operating segments consist of the following: | ||
• | Refining – operates the St. Paul Park, Minnesota refinery, terminal and related assets, NTOT and includes the Company’s interest in MPL and MPLI, and | |
• | Retail – operates 164 convenience stores primarily in Minnesota and Wisconsin. The retail segment also includes the operations of NTB and SAF. | |
Property, Plant and Equipment | ||
Property, plant and equipment is recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets. Such assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset. | ||
When property, plant and equipment depreciated on an individual basis is sold or otherwise disposed of, any gains or losses are reported in the consolidated statements of operations. Gains on the disposal of property, plant and equipment are recognized when earned, which is generally at the time of sale. If a loss on disposal is expected, such losses are generally recognized when the assets are classified as held for sale. | ||
Expenditures for routine maintenance and repair costs are expensed when incurred. Refinery process units require periodic major maintenance and repairs that are commonly referred to as “turnarounds.” The required frequency of the maintenance varies by unit, but generally is every two to six years depending on the processing unit involved. Turnaround costs are expensed as incurred. | ||
Derivative Financial Instruments | ||
The Company is exposed to earnings and cash flow volatility based on the timing and change in refined product prices and crude oil prices. To manage these risks, the Company may use derivative instruments associated with the purchase or sale of crude oil and refined products. Crack spread future and swap contracts may be used to hedge the volatility of refining margins. The Company also may use futures contracts to manage price risks associated with inventory quantities above or below target levels. The Company does not enter into derivative contracts for speculative purposes. All derivative instruments are recorded in the consolidated balance sheet at fair value and are classified depending on the maturity date of the underlying contracts. Changes in the fair value of its contracts are accounted for by marking them to market and recognizing any resulting gains or losses in its statements of operations. Gains and losses from derivative activity specific to the risk mitigation on inventory quantities in excess of target inventory levels are included within cost of sales. Gains and losses from derivative activity specific to the risk mitigation on the crack spread future and swap derivatives, initially entered into at the Company's inception, are included within gains (losses) on derivative activities. Derivative gains and losses are reported as operating activities within the consolidated statement of cash flows. | ||
Excise Taxes | ||
The Company is required by various governmental authorities, including federal and state, to collect and remit taxes on certain products. Such taxes are presented on a gross basis in revenue and cost of sales in the consolidated statements of operations. These taxes totaled $88.9 million and $70.8 million for the three months ended March 31, 2014 and 2013, respectively. | ||
Cost of Sales | ||
Cost of sales in the consolidated statements of operations and comprehensive income excludes depreciation and amortization of refinery assets and the direct labor and overhead costs related to the operation of the refinery. These costs are included in the consolidated statements of operations and comprehensive income in the depreciation and amortization and direct operating expenses line items, respectively. | ||
Product Exchanges | ||
The Company enters into exchange contracts whereby it agrees to deliver a particular quantity and quality of crude oil or refined products at a specified location and date to a particular counterparty and to receive from the same counterparty a particular quantity and quality of crude oil or refined products at a specified location on the same or another specified date. The exchange receipts and deliveries are nonmonetary transactions, with the exception of associated grade or location differentials that are settled in cash. These transactions are not recorded as revenue because they involve the exchange of inventories held in the ordinary course of business to facilitate sales to customers or delivery of feedstocks to the Company's refinery. The exchange transactions are recognized net within cost of sales at the carrying amount of the inventory transferred plus or minus any cash settlement due to grade or location differentials. Contracts for crude oil or refined products deliveries or receipts that do not meet the requirements to allow for netting are recognized as separate revenue and cost of sales transactions. | ||
Reclassification | ||
Certain reclassifications have been made to the prior-year financial information in order to conform to the Company’s current presentation. Specifically, $0.3 million in net gains from derivative activity related to risk mitigation on refined product inventory in excess of targeted levels have been reclassified from gains (losses) from derivative activities to cost of sales for the three months ended March 31, 2013 within the consolidated statements of operations and comprehensive income. | ||
Accounting Developments | ||
Recently issued accounting pronouncements that have been adopted in the current period did not materially impact the consolidated financial statements, and no material impact is expected from accounting pronouncements issued and pending implementation. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
RELATED PARTY TRANSACTIONS | |
The original investors in NTE LLC, which included ACON Refining Partners L.L.C. and TPG Refining L.P., were related parties of the Company from inception through November 12, 2013, the date they sold their remaining indirect interest in the Company to a subsidiary of Western Refining (see Note 1). Upon execution of that transaction, Western Refining became a related party to the Company. For the three months ended March 31, 2014, the Company purchased crude oil from a subsidiary of Western Refining of $6.3 million. Also for the three months ended March 31, 2014, the Company realized $0.9 million in revenue from the sales of asphalt and renewable identification numbers and $0.1 million in lease revenue from the sublease of railcars to such subsidiary. | |
MPL is also a related party of the Company, however the Company has a crude oil supply and logistics agreement with a third party and has had no direct supply transactions with MPL. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
NTE LP is organized in such a way as to be treated as a MLP for tax purposes. However, NTRH, the parent company of NTR and NTB, is taxed as a corporation for federal and state income tax purposes. No provision for income tax is calculated on the earnings of the Company or its subsidiaries other than NTRH, as these entities are non-taxable pass-through entities for tax purposes. | |
The Company’s effective tax rate for the three months ended March 31, 2014 and 2013, was 0.1% (expense) and less than 0.1% (benefit), respectively, as compared to the Company's consolidated federal and state expected statutory tax rate of 42.0% and 40.4%, respectively. The Company's effective tax rate for the three months ended March 31, 2014 and 2013 was primarily due to the fact that only the retail operations of the Company are taxable entities. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
INVENTORIES | ||||||||
March 31, | December 31, | |||||||
(in millions) | 2014 | 2013 | ||||||
Crude oil and refinery feedstocks | $ | 16.1 | $ | 29.4 | ||||
Refined products | 167.1 | 106.7 | ||||||
Merchandise | 21.6 | 22.6 | ||||||
Supplies and sundry items | 14.7 | 14.8 | ||||||
Total | $ | 219.5 | $ | 173.5 | ||||
The LIFO method accounted for 84% and 78% of total inventory value at March 31, 2014 and December 31, 2013, respectively. |
Equity_Method_Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Equity Method Investment | ' |
EQUITY METHOD INVESTMENT | |
The Company has a 17% common equity interest in MPL. The carrying value of this equity method investment was $87.6 million and $86.2 million at March 31, 2014 and December 31, 2013, respectively. | |
As of March 31, 2014 and December 31, 2013, the carrying amount of the equity method investment was $6.4 million higher than the underlying net assets of the investee, respectively. The Company is amortizing this difference over the remaining life of MPL’s primary asset (the fixed asset life of the pipeline). | |
No distributions were received from MPL in the three months ended March 31, 2014. For the three months ended March 31, 2013, the Company received $4.9 million of distributions from MPL. Equity income from MPL was $1.5 million and $3.4 million for the three months ended March 31, 2014 and 2013, respectively. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Property, Plant and Equipment | ' | |||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||
Major classes of property, plant and equipment (“PP&E”) consisted of the following: | ||||||||||
Estimated | March 31, | December 31, | ||||||||
(in millions) | Useful Lives | 2014 | 2013 | |||||||
Land | $ | 9 | $ | 9 | ||||||
Retail stores and equipment | 2 - 22 years | 57.4 | 54.9 | |||||||
Refinery and equipment | 5 - 24 years | 407.6 | 403.5 | |||||||
Buildings and building improvements | 25 years | 8.8 | 8.9 | |||||||
Software | 5 years | 18.7 | 18.6 | |||||||
Vehicles | 5 years | 4.7 | 4.7 | |||||||
Other equipment | 2 - 7 years | 8.6 | 8.5 | |||||||
Precious metals | 10.2 | 10.2 | ||||||||
Assets under construction | 29.6 | 26.3 | ||||||||
554.6 | 544.6 | |||||||||
Less: accumulated depreciation | 108.1 | 98.4 | ||||||||
Property, plant and equipment, net | $ | 446.5 | $ | 446.2 | ||||||
PP&E includes gross assets acquired under capital leases of $9.2 million at both March 31, 2014 and December 31, 2013, with related accumulated depreciation of $1.3 million and $1.2 million, respectively. The Company had depreciation expense related to capitalized software of $0.9 million for both the three months ended March 31, 2014 and 2013. |
Intangible_Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Intangible Assets | ' |
INTANGIBLE ASSETS | |
Intangible assets are comprised of franchise rights and trade names amounting to $33.8 million at both March 31, 2014 and December 31, 2013. At both March 31, 2014 and December 31, 2013, the franchise rights and trade name intangible asset values were $12.4 million and $21.4 million, respectively. These assets have an indefinite life and therefore are not amortized, but rather are tested for impairment annually or sooner if events or changes in circumstances indicate that the fair value of the intangible asset has been reduced below carrying value. |
Derivatives
Derivatives | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Derivatives | ' | ||||||||
DERIVATIVES | |||||||||
The Company is subject to crude oil and refined product market price fluctuations caused by supply conditions, weather, economic conditions and other factors. At inception, the Company entered into crack spread derivative contracts as a strategy to mitigate refining margin risk on a portion of its 2011 through 2013 projected refining production. The Company also periodically uses futures contracts to manage price risks associated with inventory quantities above target levels. | |||||||||
Under its risk mitigation strategy, the Company may buy or sell an amount equal to a fixed price times a certain number of barrels, and to buy or sell in return an amount equal to a specified variable price times the same amount of barrels. Physical volumes are not exchanged and these contracts are net settled with cash. The contracts are not being accounted for as hedges for financial reporting purposes. The Company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet and any related net gain or loss is recorded within the consolidated statements of operations. Net gains or losses for contracts to mitigate price risk associated with inventory quantities above target levels are recorded in cost of sales. Net gains or losses for contracts to mitigate refining margin risk are recorded in gains (losses) from derivative activities. Observable quoted prices for similar assets or liabilities in active markets (Level 2 as described in Note 12) are considered to determine the fair values for the purpose of marking to market the derivative instruments at each period end. As of December 31, 2013, all of the Company's outstanding crack spread derivative contracts, initially entered into at inception, had expired and, as such, at both December 31, 2013 and March 31, 2014, the Company had no open crack spread derivative instruments. However, the Company did have outstanding futures contracts at March 31, 2014 to manage price risks on inventory quantities above target levels. | |||||||||
All derivative contracts are marked to market at period end and the resulting gains and losses are recognized in earnings. Recognized gains and losses on derivatives were as follows: | |||||||||
Three Months Ended March 31, | |||||||||
(in millions) | 2014 | 2013 | |||||||
Gain (loss) on the change in fair value of outstanding derivatives | $ | (0.2 | ) | $ | 11.2 | ||||
Settled derivative gains (losses) | (0.7 | ) | (17.4 | ) | |||||
Total recognized gain (loss) | $ | (0.9 | ) | $ | (6.2 | ) | |||
Gain (loss) recognized in Cost of sales | $ | (0.9 | ) | $ | 0.3 | ||||
Loss recognized in Losses from derivative activities | — | (6.5 | ) | ||||||
Total recognized net loss on derivatives | $ | (0.9 | ) | $ | (6.2 | ) | |||
The Company’s outstanding derivative instruments as of March 31, 2014 were $0.2 million, located in accrued liabilities. The Company had no outstanding positions at December 31, 2013. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
DEBT | |
2020 Secured Notes | |
NTE LLC has outstanding $275 million in aggregate principal amount of 7.125% senior secured notes due 2020 (the “2020 Secured Notes”). The 2020 Secured Notes are guaranteed, jointly and severally, on a senior secured basis by all of the Company’s existing and future 100% direct and indirect subsidiaries on a full and unconditional basis; however, there are certain obligations not on a full and unconditional basis as a result of subsidiaries being able to be released as guarantors under certain customary circumstances for such arrangements. A subsidiary guarantee can be released under customary circumstances, including (a) the sale of the subsidiary, (b) the subsidiary being declared “unrestricted,” (c) the legal or covenant defeasance or satisfaction and discharge of the indenture, or (d) liquidation or dissolution of the subsidiary. Separate condensed consolidating financial information is not included as the guarantor company, Northern Tier Energy LP, does not have independent assets or operations. The 2020 Secured Notes and the subsidiary note guarantees are secured on a pari passu basis with certain hedging agreements by a first-priority security interest in substantially all present and hereinafter acquired tangible and intangible assets of NTE LLC and each of the subsidiary guarantors and by a second-priority security interest in the inventory, accounts receivable, investment property, general intangibles, deposit accounts and cash and cash equivalents collateralized by the ABL Facility. Additionally, the 2020 Secured Notes are fully and unconditionally guaranteed on a senior unsecured basis by NTE LP. The Company is required to make interest payments on May 15 and November 15 of each year, which commenced on May 15, 2013. There are no scheduled principal payments required prior to the notes maturing on November 15, 2020. Effective in October 2013, the 2020 Secured Notes were registered with the SEC and became publicly traded debt. | |
At any time prior to the maturity date of the notes, the Company may, at its option, redeem all or any portion of the notes for the outstanding principal amount plus unpaid interest and a make-whole premium as defined in the indenture. If the Company experiences a change in control or makes certain asset dispositions, as defined under the indenture, the Company may be required to repurchase all or part of the notes plus unpaid interest and, in certain cases, pay a redemption premium. | |
The 2020 Secured Notes contain certain covenants that, among other things, limit the ability, subject to certain exceptions, of the Company to incur additional debt or issue preferred stock, to purchase, redeem or otherwise acquire or retire its equity interests, to make certain investments, loans and advances, to sell, lease or transfer any of its property or assets, to merge, consolidate, lease or sell substantially all of the Company’s assets, to suffer a change of control and to enter into new lines of business. | |
ABL Facility | |
The Company's ABL facility (the “ABL Facility”) is a $300 million secured asset-backed revolving credit facility with a maturity date of July 17, 2017. | |
The ABL Facility includes a springing financial covenant to provide that, if the amount available under the revolving credit facility is less than the greater of (i) 12.5% (changed from 15%) of the lesser of (x) the $300 million commitment amount and (y) the then-applicable borrowing base and (ii) $22.5 million, the Company must comply with a minimum Fixed Charge Coverage Ratio (as defined in the ABL Facility) of at least 1.0 to 1.0. Other covenants include, but are not limited to: restrictions, subject to certain exceptions, on the ability of the Company and its subsidiaries to sell or otherwise dispose of assets, incur additional indebtedness or issue preferred stock, pay dividends and distributions or repurchase capital stock, create liens on assets, make investments, loans or advances, make certain acquisitions, engage in mergers or consolidations, and engage in certain transactions with affiliates. | |
Borrowings under the ABL Facility bear interest, at the Company’s option, at either (a) an alternative base rate, plus an applicable margin (ranging between 1.00% and 1.50%) or (b) a LIBOR rate plus applicable margin (ranging between 2.00% and 2.50%). The alternate base rate is the greater of (a) the prime rate, (b) the Federal Funds Effective rate plus 50 basis points, or (c) the one-month LIBOR rate plus 100 basis points and a spread of up to 225 basis points based upon percentage utilization of this facility. In addition to paying interest on outstanding borrowings, the Company is also required to pay an annual commitment fee ranging from 0.375% to 0.500% and letter of credit fees. | |
As of March 31, 2014, the borrowing base under the ABL Facility was $262.9 million and availability under the ABL Facility was $234.8 million (which is net of $28.1 million in outstanding letters of credit). The Company had no borrowings under the ABL Facility at March 31, 2014 or December 31, 2013. |
Equity
Equity | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Equity | ' | ||||||||||||
EQUITY | |||||||||||||
Public Offerings | |||||||||||||
During the year ended December 31, 2013, Northern Tier Holdings LLC (NT Holdings), the owner of NTE GP LLC prior to November 12, 2013, completed three secondary public offerings of 37,605,000 NTE LP common units in total. These offerings did not increase the total common units outstanding and the Company received no proceeds. Under the Company’s partnership agreement, the offering costs from subsequent offerings of common units to the public by NT Holdings were incurred by the Company. For the three months ended March 31, 2013, the Company expensed $0.4 million of offering costs from these secondary offerings (see Note 19). | |||||||||||||
Western Refining Acquisition | |||||||||||||
On November 12, 2013, NT Holdings formed a new subsidiary, NT InterHoldCo LLC, and contributed all of its interest in NTE LP and NTE GP, the general partner of NTE LP, to NT InterHoldCo LLC. Subsequent to the contribution, NT Holdings entered into a definitive agreement to sell all of its interests in NT InterHoldCo LLC to Western Refining for total consideration of $775 million plus the cash distribution payable to the holders of the common units acquired with respect to the quarter ended September 30, 2013. As a result of this transaction, Western Refining now indirectly owns 100% of Northern Tier Energy GP LLC and 35,622,500 common units, or 38.7%, of NTE LP. The balance of the limited partner units remain publicly traded. NTE LP received no proceeds from this transaction. As of the purchase date, NT InterHoldCo LLC, as the owner of the general partner of NTE LP, has the ability to appoint all of the members of the general partner’s board of directors. | |||||||||||||
Distribution Policy | |||||||||||||
The Company expects to make cash distributions to unitholders of record on the applicable record date within 60 days after the end of each quarter. Distributions will be equal to the amount of available cash generated in such quarter. Available cash for each quarter will generally equal the Company’s cash flow from operations for the quarter excluding working capital changes, less cash required for maintenance capital expenditures, reimbursement of expenses incurred by the general partner of NTE LP and its affiliates, debt service and other contractual obligations and reserves for future operating or capital needs that the board of directors of the general partner of NTE LP deems necessary or appropriate, including reserves for turnaround and related expenses. The amount of quarterly distributions, if any, will vary based on operating cash flow during such quarter. As a result, quarterly distributions, if any, will not be stable and will vary from quarter to quarter as a direct 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, (iv) capital expenditures and (v) cash reserves deemed necessary or appropriate by the board of directors of NTE LP’s general partner. Such variations in the amount of the quarterly distributions may be significant. The Company’s general partner has no incentive distribution rights. | |||||||||||||
The following table details the quarterly distributions paid to common unitholders during the year ended December 31, 2013 and the three months ended March 31, 2014 (in millions, except per unit amounts): | |||||||||||||
Date Declared | Date Paid | Common Units (in millions) | Distribution per common unit | Total Distribution (in millions) | |||||||||
2013 Distributions: | |||||||||||||
11-Feb-13 | February 28, 2013 | 91.9 | $ | 1.27 | $ | 116.7 | |||||||
13-May-13 | May 30, 2013 | 92.2 | $ | 1.23 | 113.4 | ||||||||
13-Aug-13 | August 29, 2013 | 92.2 | $ | 0.68 | 62.7 | ||||||||
11-Nov-13 | 27-Nov-13 | 92.2 | $ | 0.31 | 28.6 | ||||||||
Total distributions paid during 2013 | $ | 3.49 | $ | 321.4 | |||||||||
2014 Distributions: | |||||||||||||
7-Feb-14 | 28-Feb-14 | 92.4 | $ | 0.41 | $ | 37.9 | |||||||
Total distributions paid during 2014 | $ | 0.41 | $ | 37.9 | |||||||||
On May 6, 2014, the board of directors of NTE LP's general partner declared a quarterly distribution of $0.77 per unit to common unitholders of record on May 19, 2014, payable on May 30, 2014. This distribution of approximately $71 million in aggregate is based on available cash generated during the three months ended March 31, 2014. | |||||||||||||
Changes in Partners' Equity | |||||||||||||
(in millions) | Accumulated Other Comprehensive Income | Partners' Capital | Total Partners' Equity | ||||||||||
Balance at December 31, 2013 | $ | (2.0 | ) | $ | 403.1 | $ | 401.1 | ||||||
Net income | — | 71.5 | 71.5 | ||||||||||
Distributions | — | (37.9 | ) | (37.9 | ) | ||||||||
Equity-based compensation expense | — | 7.4 | 7.4 | ||||||||||
Amortization of net prior service cost on defined benefit plans | 0.1 | — | 0.1 | ||||||||||
Balance at March 31, 2014 | $ | (1.9 | ) | $ | 444.1 | $ | 442.2 | ||||||
During the three months ended March 31, 2014, the Company's common units issued and outstanding increased by 607,410, all of which were attributable to equity-based compensation awards, net of forfeitures (see Note 14). | |||||||||||||
Earnings per Unit | |||||||||||||
The following table illustrates the computation of basic and diluted earnings per unit for the three months ended March 31, 2014 and 2013. The Company has outstanding restricted common units under its LTIP program (see Note 14) that participate in non-forfeitable distributions, which requires the Company to calculate earnings per unit under the two-class method. Under this method, distributed earnings and undistributed earnings (loss) are allocated between unrestricted common units and restricted common units. | |||||||||||||
Three Months Ended March 31, | |||||||||||||
(in millions, except unit and per-unit data) | 2014 | 2013 | |||||||||||
Net income available to common unitholders | $ | 71.5 | $ | 119.4 | |||||||||
Less: distributed and undistributed earnings to participating restricted common units | (0.3 | ) | — | ||||||||||
Net income attributable to unrestricted common units | $ | 71.2 | $ | 119.4 | |||||||||
Weighted average unrestricted common units - basic & diluted | 92,166,841 | 91,915,000 | |||||||||||
Basic & diluted earnings per unit | $ | 0.77 | $ | 1.3 | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
As defined in GAAP, fair value is the price that would be received for the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP describes three approaches to measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach, each of which includes multiple valuation techniques. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to measure fair value by converting future amounts, such as cash flows or earnings, into a single present value amount using current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace the service capacity of an asset. This is often referred to as current replacement cost. The cost approach assumes that the fair value would not exceed what it would cost a market participant to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. | |||||||||||||||||
Accounting guidance does not prescribe which valuation technique should be used when measuring fair value and does not prioritize among the techniques. Accounting guidance establishes a fair value hierarchy that prioritizes the inputs used in applying the various valuation techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the fair value hierarchy while Level 3 inputs are given the lowest priority. The three levels of the fair value hierarchy are as follows: | |||||||||||||||||
• | Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||
• | Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | ||||||||||||||||
• | Level 3 – Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||||||||||||||
The Company uses a market or income approach for recurring fair value measurements and endeavors to use the best information available. Accordingly, valuation techniques that maximize the use of observable inputs are favored. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy. | |||||||||||||||||
The Company’s current asset and liability accounts contain certain financial instruments, the most significant of which are trade accounts receivables and trade payables. The Company believes the carrying values of its current assets and liabilities approximate fair value. The Company’s fair value assessment incorporates a variety of considerations, including the short-term duration of the instruments, the Company’s historical incurrence of insignificant bad debt expense and the Company’s expectation of future insignificant bad debt expense, which includes an evaluation of counterparty credit risk. | |||||||||||||||||
The following table provides the assets and liabilities carried at fair value measured on a recurring basis at March 31, 2014 and December 31, 2013: | |||||||||||||||||
Balance at | Quoted prices in active markets | Significant other observable inputs | Unobservable inputs | ||||||||||||||
(in millions) | March 31, 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 129.4 | $ | 129.4 | $ | — | $ | — | |||||||||
$ | 129.4 | $ | 129.4 | $ | — | $ | — | ||||||||||
LIABILITIES | |||||||||||||||||
Derivative liability - current | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | $ | — | |||||||
$ | (0.2 | ) | $ | — | $ | (0.2 | ) | $ | — | ||||||||
Balance at | Quoted prices in active markets | Significant other observable inputs | Unobservable inputs | ||||||||||||||
(in millions) | December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 85.8 | $ | 85.8 | $ | — | $ | — | |||||||||
$ | 85.8 | $ | 85.8 | $ | — | $ | — | ||||||||||
As of March 31, 2014 and December 31, 2013, the Company had no Level 3 fair value assets or liabilities. | |||||||||||||||||
The Company’s policy is to recognize transfers in and transfers out as of the actual date of the event or of the change in circumstances that caused the transfer. For the three months ended March 31, 2014 and 2013, there were no transfers in or out of Levels 1, 2 or 3. | |||||||||||||||||
Assets not recorded at fair value on a recurring basis, such as property, plant and equipment, intangible assets and cost method investments, are recognized at fair value when they are impaired. During the three months ended March 31, 2014 and 2013, there were no adjustments to the fair value of such assets. | |||||||||||||||||
The carrying value of debt, which is reported on the Company’s consolidated balance sheets, reflects the cash proceeds received upon its issuance, net of subsequent repayments. The fair value of the 2020 Secured Notes disclosed below was determined based on quoted prices in active markets (Level 1). | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
(in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
2020 Secured Notes | $ | 275 | $ | 296.7 | $ | 275 | $ | 291.1 | |||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||
Asset Retirement Obligations | ' | ||||||||
ASSET RETIREMENT OBLIGATIONS | |||||||||
The following table summarizes the changes in asset retirement obligations: | |||||||||
Three Months Ended | |||||||||
(in millions) | March 31, 2014 | March 31, 2013 | |||||||
Asset retirement obligation balance at beginning of period | $ | 2.2 | $ | 1.9 | |||||
Accretion expense | 0.1 | — | |||||||
Asset retirement obligation balance at end of period | $ | 2.3 | $ | 1.9 | |||||
EquityBased_Compensation
Equity-Based Compensation | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||
Equity-Based Compensation | ' | |||||||||
EQUITY-BASED COMPENSATION | ||||||||||
The Company maintains an equity-based compensation plan designed to encourage employees and directors of the Company to achieve superior performance. The current plan is maintained by the general partner of NTE LP and is referred to as the 2012 Long-Term Incentive Plan (“LTIP”). A former equity-based plan (the “NT Investor Plan”) was sponsored by members of NT Investors, the parent company of NT Holdings, and granted profit unit interests in NT Investors. All equity-based compensation expense related to both plans is recognized by the Company. The Company recognized equity-based compensation expense of $4.3 million and $5.3 million for the three months ended March 31, 2014, and 2013, respectively, related to these plans. | ||||||||||
LTIP | ||||||||||
Approximately 9.2 million NTE LP common units are reserved for issuance under the LTIP. The LTIP was created concurrent with the IPO and permits the award of unit options, restricted units, phantom units, unit appreciation rights and other awards that derive their value from the market price of NTE LP’s common units. As of March 31, 2014, approximately 0.5 million units were outstanding under the LTIP, the majority of these units are restricted. | ||||||||||
For the majority of these awards, fifty percent of the restricted unit grant is subject to time-based vesting conditions and fifty percent are subject to performance-based vesting conditions. For the performance-based restricted units, the target number of units granted may be proportionally adjusted up or down subject to the Company meeting certain financial metrics, namely cash available for distribution. The Company recognizes the expense on these restricted units ratably from the grant date until all units become unrestricted. Awards generally vest ratably over a three-year period beginning on the award's first anniversary date. Compensation expense related to these restricted units is based on the grant date fair value as determined by the closing market price on the grant date, reduced by the fair value of estimated forfeitures. For awards to employees, the Company estimates a 10% forfeiture rate which is subject to revision depending on the actual forfeiture experience. During the three months ended March 31, 2014, the Company recognized $3.1 million of equity-based compensation related to the accelerated vesting of LTIP grants as part of a plan that includes the relocation of its corporate offices and the reorganization of various positions within the Company (see Note 19). | ||||||||||
A summary of the LTIP unit activity is set forth below: | ||||||||||
Number of | Weighted | Weighted | ||||||||
LTIP units | Average Grant | Average Term | ||||||||
(in thousands) | Date Price | Until Maturity | ||||||||
Outstanding at December 31, 2013 | 306.6 | $ | 27.02 | 2.9 | ||||||
Awarded | 482.8 | 24.28 | 2 | |||||||
Cancelled | (1.9 | ) | 26.52 | 2.4 | ||||||
Vested | (277.1 | ) | 25.68 | - | ||||||
Outstanding at March 31, 2014 | 510.4 | $ | 25.15 | 2.6 | ||||||
As of March 31, 2014 and December 31, 2013, the total unrecognized compensation cost for LTIP restricted units was $9.7 million and $6.1 million, respectively. | ||||||||||
NT Investor Plan | ||||||||||
The NT Investor Plan was an equity participation plan which provided for the award of profit interest units in NT Investors to certain employees and independent non-employee directors of NTE LLC. Approximately 29 million profit interest units in NT Investors were reserved for issuance under the plan. The exercise price for a profit interest unit was not to be less than 100% of the fair market value of NT Investors equity units on the date of grant. Profit interest units were to vest in annual installments over a period of five years after the date of grant and expire ten years after the date of grant. Upon NT Investors meeting certain thresholds of distributions from NTE LLC and NTE LP, profit interest unit vesting would accelerate. Continued employment in any subsidiary of NT Investors was a condition of vesting and, as such, compensation expense was recognized in the Company’s financial statements based upon the fair value of the award on the date of grant. This compensation expense was a non-cash expense of the Company. The NT Investor Plan awards were satisfied by cash distributions made from NT Holdings and did not dilute cash available for distribution to the unitholders of NTE LP. | ||||||||||
In January 2013, upon completion of the Company’s secondary public offering of 10.7 million common units owned by NT Holdings, all outstanding and unvested profit interest units under the NT Investor Plan became immediately fully-vested. As a result, the Company accelerated all remaining unrecognized expense related to this plan resulting in a non-cash expense of $5.3 million recorded during the three months ended March 31, 2013 related to this plan. This expense is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. No further awards will be issued from the NT Investor Plan. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
EMPLOYEE BENEFIT PLANS | |
Cash Balance Plan | |
The Company sponsors a defined benefit cash balance pension plan (the “Cash Balance Plan”) for eligible employees. Company contributions are made to the cash account of the participants equal to 5.0% of eligible compensation. Participants’ cash accounts also receive interest credits each year based upon the average thirty-year United States Treasury bond rate published in September preceding the respective plan year. Participants become fully-vested in their accounts after three years of service. The net periodic benefit cost related to the Cash Balance Plan for both the three months ended March 31, 2014 and 2013 was $0.5 million, related primarily to current period service costs. | |
Retiree Medical Plan | |
The Company also sponsors a plan to provide retirees with health care benefits prior to age 65 (the “Retiree Medical Plan”) for eligible employees. Eligible employees may participate in the Company’s health care benefits after retirement subject to cost-sharing features. To be eligible for the Retiree Medical Plan, employees must have completed at least 10 years of service with the Company or its predecessor and be between the ages of 55 and 65 years old. The net periodic benefit cost related to the Retiree Medical Plan for both the three months ended March 31, 2014 and 2013 was $0.2 million related primarily to current period and prior service costs. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Supplemental cash flow information is as follows: | ||||||||
Three Months Ended | ||||||||
(in millions) | March 31, 2014 | March 31, 2013 | ||||||
Net cash from operating activities included: | ||||||||
Interest paid | $ | 0.9 | $ | 1.1 | ||||
Income taxes paid | — | 0.4 | ||||||
Noncash investing and financing activities include: | ||||||||
Capital expenditures included in accounts payable | $ | 3 | $ | 3.7 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
The Company is the subject of, or party to, contingencies and commitments involving a variety of matters. Certain of these matters are discussed below. The ultimate resolution of these contingencies could, individually or in the aggregate, be material to the Company’s consolidated financial statements. | |
Environmental Matters | |
The Company is subject to federal, state, local and foreign laws and regulations relating to the environment. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance. At both March 31, 2014 and December 31, 2013, liabilities for remediation totaled $1.5 million. These liabilities are expected to be settled over at least the next 10 years. Receivables for recoverable costs from the state, under programs to assist companies in clean-up efforts related to underground storage tanks at retail marketing outlets, and others were $0.1 million at both March 31, 2014 and December 31, 2013. | |
The Company is currently in negotiations with the Minnesota Pollution Control Agency relating to a permit for an upgraded waste water treatment plant at its St. Paul Park refinery. As part of the permitting process, the refinery may be required to conduct additional testing of its remaining lagoon. The refinery is evaluating options and alternatives relating to this lagoon and associated fire water resources, some of which may result in future remediation or capital spending. While the amounts of any potential future remediation cost or capital spending are not yet estimable, we do not anticipate that it would have a material impact on the Company's financial condition, results of operations or cash flows. | |
It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred by the Company or the penalties that may be imposed. Furthermore, environmental remediation costs may vary from estimates for which a liability has been recorded because of changes in laws, regulations and their interpretation; additional information on the extent and nature of site contamination; and improvements in technology. | |
Franchise Agreements | |
In the normal course of its business, SAF enters into ten-year license agreements with the operators of franchised SuperAmerica brand retail outlets. These agreements obligate SAF or its affiliates to provide certain services including information technology support, maintenance, credit card processing and signage for specified monthly fees. | |
Guarantees | |
Certain agreements related to assets sold in the normal course of business contain performance and general guarantees, including guarantees regarding inaccuracies in representations, warranties, covenants and agreements, and environmental and general indemnifications that require the Company to perform upon the occurrence of a triggering event or condition. These guarantees and indemnifications were part of the normal course of selling assets. | |
The Company is not typically able to calculate the maximum potential amount of future payments that could be made under such contractual provisions because of the variability inherent in the guarantees and indemnities. Most often, the nature of the guarantees and indemnities is such that there is no appropriate method for quantifying the exposure because the Company has little or no past experience associated with the underlying triggering event upon which a reasonable prediction of the outcome can be based. The Company is not currently making any payments relating to such guarantees or indemnifications. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||
The Company has two reportable operating segments: Refining and Retail. Each of these segments is organized and managed based upon the nature of the products and services they offer. The segment disclosures reflect management’s current organizational structure. | |||||||||||||||||
• | Refining – operates the St. Paul Park, Minnesota refinery, terminal, NTOT and related assets, and includes the Company’s interest in MPL and MPLI, and | ||||||||||||||||
• | Retail – operates 164 convenience stores primarily in Minnesota and Wisconsin. The retail segment also includes the operations of NTB and SAF. | ||||||||||||||||
Operating results for the Company’s operating segments are as follows: | |||||||||||||||||
(in millions) | |||||||||||||||||
Three months ended March 31, 2014 | Refining | Retail | Other | Total | |||||||||||||
Revenues | |||||||||||||||||
Customer | $ | 1,011.20 | $ | 335.1 | $ | — | $ | 1,346.30 | |||||||||
Intersegment | 232.4 | — | — | 232.4 | |||||||||||||
Segment revenues | 1,243.60 | 335.1 | — | 1,578.70 | |||||||||||||
Elimination of intersegment revenues | — | — | (232.4 | ) | (232.4 | ) | |||||||||||
Total revenues | $ | 1,243.60 | $ | 335.1 | $ | (232.4 | ) | $ | 1,346.30 | ||||||||
Net income (loss) | $ | 97.8 | $ | 1.6 | $ | (27.9 | ) | $ | 71.5 | ||||||||
Income from equity method investment | $ | 1.5 | $ | — | $ | — | $ | 1.5 | |||||||||
Depreciation and amortization | $ | 8 | $ | 1.7 | $ | 0.2 | $ | 9.9 | |||||||||
Capital expenditures | $ | 8.8 | $ | 1.1 | $ | 0.1 | $ | 10 | |||||||||
(in millions) | |||||||||||||||||
Three months ended March 31, 2013 | Refining | Retail | Other | Total | |||||||||||||
Revenues | |||||||||||||||||
Customer | $ | 771.8 | $ | 343.2 | $ | — | $ | 1,115.00 | |||||||||
Intersegment | 246.8 | — | — | 246.8 | |||||||||||||
Segment revenues | 1,018.60 | 343.2 | — | 1,361.80 | |||||||||||||
Elimination of intersegment revenues | — | — | (246.8 | ) | (246.8 | ) | |||||||||||
Total revenues | $ | 1,018.60 | $ | 343.2 | $ | (246.8 | ) | $ | 1,115.00 | ||||||||
Net income (loss) | $ | 142.1 | $ | 0.7 | $ | (23.4 | ) | $ | 119.4 | ||||||||
Income from equity method investment | $ | 3.4 | $ | — | $ | — | $ | 3.4 | |||||||||
Depreciation and amortization | $ | 6.7 | $ | 1.8 | $ | 0.1 | $ | 8.6 | |||||||||
Capital expenditures | $ | 26.5 | $ | 0.4 | $ | — | $ | 26.9 | |||||||||
Intersegment sales from the refining segment to the retail segment consist primarily of sales of refined products which are recorded based on contractual prices that are market-based. Revenues from external customers are nearly all in the United States. | |||||||||||||||||
Total assets by segment were as follows: | |||||||||||||||||
(in millions) | Refining | Retail | Corporate/Other | Total | |||||||||||||
At March 31, 2014 | $ | 906.8 | $ | 124.9 | $ | 161.2 | $ | 1,192.90 | |||||||||
At December 31, 2013 | $ | 875.6 | $ | 138.2 | $ | 104 | $ | 1,117.80 | |||||||||
Total assets for the refining and retail segments exclude all intercompany balances. All cash and cash equivalents are included as corporate/other assets. All property, plant and equipment are located in the United States. |
Reorganization_and_Related_Cos
Reorganization and Related Costs (Notes) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Reorganization and Related Costs | ' | ||||
REORGANIZATION AND RELATED COSTS | |||||
During the first quarter of 2014, the Company initiated a plan that included a planned relocation of its corporate offices and the reorganization of various positions within the Company, primarily among senior management. In relation to this reorganization plan, it was determined during the three months ended March 31, 2014 that certain employees of the Company will be terminated. The Company recognized $9.4 million of expense during the three months ended March 31, 2014, which included compensation related to the severance of employment and the acceleration of unvested equity based compensation. These costs are recognized in the reorganization and related costs line within the consolidated statements of operations and comprehensive income. The Company expects to recognize an additional $3.2 million in reorganization costs during the three months ending June 30, 2014, at which time it expects the reorganization plans related to its corporate offices to be complete. As of March 31, 2014, the Company had $4.0 million in unpaid reorganization expenses included in the accrued liabilities line item of the consolidated balance sheets. | |||||
(in millions) | Three Months Ended | ||||
March 31, 2014 | |||||
Reorganization and related costs incurred during period | $ | 9.4 | |||
Less: non-cash equity based awards with accelerated vesting | (3.1 | ) | |||
Cash payments made to severed employees | (2.3 | ) | |||
Ending liability for cash portion of reorganization costs | $ | 4 | |||
For the three months ended March 31, 2013, the Company recognized a charge of $0.4 million for offering costs that did not meet the requirements for deferral, related to a secondary public offering of common units held by the owner of the Company's general partner interest at that time, NT Holdings (see Note 11). |
Summary_of_Principal_Accountin1
Summary of Principal Accounting Policies (Policies) | 3 Months Ended | |
Mar. 31, 2014 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation | ||
NTE LP is a Delaware limited partnership which consolidates all accounts of NTE LLC and its subsidiaries - SPPR, NTRH and NTOT. All intercompany accounts have been eliminated in these consolidated financial statements. | ||
The Company’s common equity interest in MPL is accounted for using the equity method of accounting. Equity income from MPL represents the Company’s proportionate share of net income available to common equity owners generated by MPL. | ||
The equity method investment is assessed for impairment whenever changes in facts or circumstances indicate a loss in value has occurred. When the loss is deemed to be other than temporary, the carrying value of the equity method investment is written down to fair value, and the amount of the write-down is included in net income. See Note 6 for further information on the Company’s equity method investment. | ||
MPLI owns all of the preferred membership units of MPL. This investment in MPLI, which provides the Company no significant influence over MPLI, is accounted for as a cost method investment. The investment in MPLI is carried at a value of $6.8 million at March 31, 2014 and December 31, 2013 and is included in other noncurrent assets within the consolidated balance sheets. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Actual results could differ from those estimates. | ||
Operating Segments | ' | |
Operating Segments | ||
The Company has two reportable operating segments; Refining and Retail (see Note 18 for further information on the Company’s operating segments). The Refining and Retail operating segments consist of the following: | ||
• | Refining – operates the St. Paul Park, Minnesota refinery, terminal and related assets, NTOT and includes the Company’s interest in MPL and MPLI, and | |
• | Retail – operates 164 convenience stores primarily in Minnesota and Wisconsin. The retail segment also includes the operations of NTB and SAF. | |
Property, Plant and Equipment | ' | |
Property, Plant and Equipment | ||
Property, plant and equipment is recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets. Such assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset. | ||
When property, plant and equipment depreciated on an individual basis is sold or otherwise disposed of, any gains or losses are reported in the consolidated statements of operations. Gains on the disposal of property, plant and equipment are recognized when earned, which is generally at the time of sale. If a loss on disposal is expected, such losses are generally recognized when the assets are classified as held for sale. | ||
Expenditures for routine maintenance and repair costs are expensed when incurred. Refinery process units require periodic major maintenance and repairs that are commonly referred to as “turnarounds.” The required frequency of the maintenance varies by unit, but generally is every two to six years depending on the processing unit involved. Turnaround costs are expensed as incurred. | ||
Derivative Financial Instruments | ' | |
Derivative Financial Instruments | ||
The Company is exposed to earnings and cash flow volatility based on the timing and change in refined product prices and crude oil prices. To manage these risks, the Company may use derivative instruments associated with the purchase or sale of crude oil and refined products. Crack spread future and swap contracts may be used to hedge the volatility of refining margins. The Company also may use futures contracts to manage price risks associated with inventory quantities above or below target levels. The Company does not enter into derivative contracts for speculative purposes. All derivative instruments are recorded in the consolidated balance sheet at fair value and are classified depending on the maturity date of the underlying contracts. Changes in the fair value of its contracts are accounted for by marking them to market and recognizing any resulting gains or losses in its statements of operations. Gains and losses from derivative activity specific to the risk mitigation on inventory quantities in excess of target inventory levels are included within cost of sales. Gains and losses from derivative activity specific to the risk mitigation on the crack spread future and swap derivatives, initially entered into at the Company's inception, are included within gains (losses) on derivative activities. Derivative gains and losses are reported as operating activities within the consolidated statement of cash flows. | ||
Excise Taxes | ' | |
Excise Taxes | ||
The Company is required by various governmental authorities, including federal and state, to collect and remit taxes on certain products. Such taxes are presented on a gross basis in revenue and cost of sales in the consolidated statements of operations. These taxes totaled $88.9 million and $70.8 million for the three months ended March 31, 2014 and 2013, respectively. | ||
Product Exchanges | ' | |
Product Exchanges | ||
The Company enters into exchange contracts whereby it agrees to deliver a particular quantity and quality of crude oil or refined products at a specified location and date to a particular counterparty and to receive from the same counterparty a particular quantity and quality of crude oil or refined products at a specified location on the same or another specified date. The exchange receipts and deliveries are nonmonetary transactions, with the exception of associated grade or location differentials that are settled in cash. These transactions are not recorded as revenue because they involve the exchange of inventories held in the ordinary course of business to facilitate sales to customers or delivery of feedstocks to the Company's refinery. The exchange transactions are recognized net within cost of sales at the carrying amount of the inventory transferred plus or minus any cash settlement due to grade or location differentials. | ||
Reclassifications | ' | |
Reclassification | ||
Certain reclassifications have been made to the prior-year financial information in order to conform to the Company’s current presentation. Specifically, $0.3 million in net gains from derivative activity related to risk mitigation on refined product inventory in excess of targeted levels have been reclassified from gains (losses) from derivative activities to cost of sales for the three months ended March 31, 2013 within the consolidated statements of operations and comprehensive income. | ||
Accounting Developments | ' | |
Accounting Developments | ||
Recently issued accounting pronouncements that have been adopted in the current period did not materially impact the consolidated financial statements, and no material impact is expected from accounting pronouncements issued and pending implementation. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventories | ' | |||||||
March 31, | December 31, | |||||||
(in millions) | 2014 | 2013 | ||||||
Crude oil and refinery feedstocks | $ | 16.1 | $ | 29.4 | ||||
Refined products | 167.1 | 106.7 | ||||||
Merchandise | 21.6 | 22.6 | ||||||
Supplies and sundry items | 14.7 | 14.8 | ||||||
Total | $ | 219.5 | $ | 173.5 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Property, Plant and Equipment | ' | |||||||||
Major classes of property, plant and equipment (“PP&E”) consisted of the following: | ||||||||||
Estimated | March 31, | December 31, | ||||||||
(in millions) | Useful Lives | 2014 | 2013 | |||||||
Land | $ | 9 | $ | 9 | ||||||
Retail stores and equipment | 2 - 22 years | 57.4 | 54.9 | |||||||
Refinery and equipment | 5 - 24 years | 407.6 | 403.5 | |||||||
Buildings and building improvements | 25 years | 8.8 | 8.9 | |||||||
Software | 5 years | 18.7 | 18.6 | |||||||
Vehicles | 5 years | 4.7 | 4.7 | |||||||
Other equipment | 2 - 7 years | 8.6 | 8.5 | |||||||
Precious metals | 10.2 | 10.2 | ||||||||
Assets under construction | 29.6 | 26.3 | ||||||||
554.6 | 544.6 | |||||||||
Less: accumulated depreciation | 108.1 | 98.4 | ||||||||
Property, plant and equipment, net | $ | 446.5 | $ | 446.2 | ||||||
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Recognized Gains and Losses on Derivatives | ' | ||||||||
Recognized gains and losses on derivatives were as follows: | |||||||||
Three Months Ended March 31, | |||||||||
(in millions) | 2014 | 2013 | |||||||
Gain (loss) on the change in fair value of outstanding derivatives | $ | (0.2 | ) | $ | 11.2 | ||||
Settled derivative gains (losses) | (0.7 | ) | (17.4 | ) | |||||
Total recognized gain (loss) | $ | (0.9 | ) | $ | (6.2 | ) | |||
Gain (loss) recognized in Cost of sales | $ | (0.9 | ) | $ | 0.3 | ||||
Loss recognized in Losses from derivative activities | — | (6.5 | ) | ||||||
Total recognized net loss on derivatives | $ | (0.9 | ) | $ | (6.2 | ) |
Equity_Tables
Equity (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Limited Partners' Capital Account by Class [Table Text Block] | ' | ||||||||||||
Changes in Partners' Equity | |||||||||||||
(in millions) | Accumulated Other Comprehensive Income | Partners' Capital | Total Partners' Equity | ||||||||||
Balance at December 31, 2013 | $ | (2.0 | ) | $ | 403.1 | $ | 401.1 | ||||||
Net income | — | 71.5 | 71.5 | ||||||||||
Distributions | — | (37.9 | ) | (37.9 | ) | ||||||||
Equity-based compensation expense | — | 7.4 | 7.4 | ||||||||||
Amortization of net prior service cost on defined benefit plans | 0.1 | — | 0.1 | ||||||||||
Balance at March 31, 2014 | $ | (1.9 | ) | $ | 444.1 | $ | 442.2 | ||||||
Distributions Paid During or Pertaining to Available Cash Generated | ' | ||||||||||||
The following table details the quarterly distributions paid to common unitholders during the year ended December 31, 2013 and the three months ended March 31, 2014 (in millions, except per unit amounts): | |||||||||||||
Date Declared | Date Paid | Common Units (in millions) | Distribution per common unit | Total Distribution (in millions) | |||||||||
2013 Distributions: | |||||||||||||
11-Feb-13 | February 28, 2013 | 91.9 | $ | 1.27 | $ | 116.7 | |||||||
13-May-13 | May 30, 2013 | 92.2 | $ | 1.23 | 113.4 | ||||||||
13-Aug-13 | August 29, 2013 | 92.2 | $ | 0.68 | 62.7 | ||||||||
11-Nov-13 | 27-Nov-13 | 92.2 | $ | 0.31 | 28.6 | ||||||||
Total distributions paid during 2013 | $ | 3.49 | $ | 321.4 | |||||||||
2014 Distributions: | |||||||||||||
7-Feb-14 | 28-Feb-14 | 92.4 | $ | 0.41 | $ | 37.9 | |||||||
Total distributions paid during 2014 | $ | 0.41 | $ | 37.9 | |||||||||
Computation of Basic and Diluted Earnings Per Unit | ' | ||||||||||||
Three Months Ended March 31, | |||||||||||||
(in millions, except unit and per-unit data) | 2014 | 2013 | |||||||||||
Net income available to common unitholders | $ | 71.5 | $ | 119.4 | |||||||||
Less: distributed and undistributed earnings to participating restricted common units | (0.3 | ) | — | ||||||||||
Net income attributable to unrestricted common units | $ | 71.2 | $ | 119.4 | |||||||||
Weighted average unrestricted common units - basic & diluted | 92,166,841 | 91,915,000 | |||||||||||
Basic & diluted earnings per unit | $ | 0.77 | $ | 1.3 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Carried at Fair Value Measured on Recurring Basis | ' | ||||||||||||||||
The following table provides the assets and liabilities carried at fair value measured on a recurring basis at March 31, 2014 and December 31, 2013: | |||||||||||||||||
Balance at | Quoted prices in active markets | Significant other observable inputs | Unobservable inputs | ||||||||||||||
(in millions) | March 31, 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 129.4 | $ | 129.4 | $ | — | $ | — | |||||||||
$ | 129.4 | $ | 129.4 | $ | — | $ | — | ||||||||||
LIABILITIES | |||||||||||||||||
Derivative liability - current | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | $ | — | |||||||
$ | (0.2 | ) | $ | — | $ | (0.2 | ) | $ | — | ||||||||
Balance at | Quoted prices in active markets | Significant other observable inputs | Unobservable inputs | ||||||||||||||
(in millions) | December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 85.8 | $ | 85.8 | $ | — | $ | — | |||||||||
$ | 85.8 | $ | 85.8 | $ | — | $ | — | ||||||||||
Fair Value of Secured Notes | ' | ||||||||||||||||
The fair value of the 2020 Secured Notes disclosed below was determined based on quoted prices in active markets (Level 1). | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
(in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
2020 Secured Notes | $ | 275 | $ | 296.7 | $ | 275 | $ | 291.1 | |||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||
Changes in Asset Retirement Obligations | ' | ||||||||
The following table summarizes the changes in asset retirement obligations: | |||||||||
Three Months Ended | |||||||||
(in millions) | March 31, 2014 | March 31, 2013 | |||||||
Asset retirement obligation balance at beginning of period | $ | 2.2 | $ | 1.9 | |||||
Accretion expense | 0.1 | — | |||||||
Asset retirement obligation balance at end of period | $ | 2.3 | $ | 1.9 | |||||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||
Summary of LTIP Unit Activity | ' | |||||||||
A summary of the LTIP unit activity is set forth below: | ||||||||||
Number of | Weighted | Weighted | ||||||||
LTIP units | Average Grant | Average Term | ||||||||
(in thousands) | Date Price | Until Maturity | ||||||||
Outstanding at December 31, 2013 | 306.6 | $ | 27.02 | 2.9 | ||||||
Awarded | 482.8 | 24.28 | 2 | |||||||
Cancelled | (1.9 | ) | 26.52 | 2.4 | ||||||
Vested | (277.1 | ) | 25.68 | - | ||||||
Outstanding at March 31, 2014 | 510.4 | $ | 25.15 | 2.6 | ||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental cash flow information is as follows: | ||||||||
Three Months Ended | ||||||||
(in millions) | March 31, 2014 | March 31, 2013 | ||||||
Net cash from operating activities included: | ||||||||
Interest paid | $ | 0.9 | $ | 1.1 | ||||
Income taxes paid | — | 0.4 | ||||||
Noncash investing and financing activities include: | ||||||||
Capital expenditures included in accounts payable | $ | 3 | $ | 3.7 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating Results for Operating Segments | ' | ||||||||||||||||
Operating results for the Company’s operating segments are as follows: | |||||||||||||||||
(in millions) | |||||||||||||||||
Three months ended March 31, 2014 | Refining | Retail | Other | Total | |||||||||||||
Revenues | |||||||||||||||||
Customer | $ | 1,011.20 | $ | 335.1 | $ | — | $ | 1,346.30 | |||||||||
Intersegment | 232.4 | — | — | 232.4 | |||||||||||||
Segment revenues | 1,243.60 | 335.1 | — | 1,578.70 | |||||||||||||
Elimination of intersegment revenues | — | — | (232.4 | ) | (232.4 | ) | |||||||||||
Total revenues | $ | 1,243.60 | $ | 335.1 | $ | (232.4 | ) | $ | 1,346.30 | ||||||||
Net income (loss) | $ | 97.8 | $ | 1.6 | $ | (27.9 | ) | $ | 71.5 | ||||||||
Income from equity method investment | $ | 1.5 | $ | — | $ | — | $ | 1.5 | |||||||||
Depreciation and amortization | $ | 8 | $ | 1.7 | $ | 0.2 | $ | 9.9 | |||||||||
Capital expenditures | $ | 8.8 | $ | 1.1 | $ | 0.1 | $ | 10 | |||||||||
(in millions) | |||||||||||||||||
Three months ended March 31, 2013 | Refining | Retail | Other | Total | |||||||||||||
Revenues | |||||||||||||||||
Customer | $ | 771.8 | $ | 343.2 | $ | — | $ | 1,115.00 | |||||||||
Intersegment | 246.8 | — | — | 246.8 | |||||||||||||
Segment revenues | 1,018.60 | 343.2 | — | 1,361.80 | |||||||||||||
Elimination of intersegment revenues | — | — | (246.8 | ) | (246.8 | ) | |||||||||||
Total revenues | $ | 1,018.60 | $ | 343.2 | $ | (246.8 | ) | $ | 1,115.00 | ||||||||
Net income (loss) | $ | 142.1 | $ | 0.7 | $ | (23.4 | ) | $ | 119.4 | ||||||||
Income from equity method investment | $ | 3.4 | $ | — | $ | — | $ | 3.4 | |||||||||
Depreciation and amortization | $ | 6.7 | $ | 1.8 | $ | 0.1 | $ | 8.6 | |||||||||
Capital expenditures | $ | 26.5 | $ | 0.4 | $ | — | $ | 26.9 | |||||||||
Total Assets by Segment | ' | ||||||||||||||||
Total assets by segment were as follows: | |||||||||||||||||
(in millions) | Refining | Retail | Corporate/Other | Total | |||||||||||||
At March 31, 2014 | $ | 906.8 | $ | 124.9 | $ | 161.2 | $ | 1,192.90 | |||||||||
At December 31, 2013 | $ | 875.6 | $ | 138.2 | $ | 104 | $ | 1,117.80 | |||||||||
Reorganization_and_Related_Cos1
Reorganization and Related Costs (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Schedule of Reorganization Reserve | ' | ||||
(in millions) | Three Months Ended | ||||
March 31, 2014 | |||||
Reorganization and related costs incurred during period | $ | 9.4 | |||
Less: non-cash equity based awards with accelerated vesting | (3.1 | ) | |||
Cash payments made to severed employees | (2.3 | ) | |||
Ending liability for cash portion of reorganization costs | $ | 4 | |||
Description_of_the_Business_an1
Description of the Business and Basis of Presentation - Additional Information (Details) (USD $) | 0 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
Nov. 12, 2013 | Mar. 31, 2014 | Nov. 12, 2013 | Nov. 12, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Store | Western Refining, Inc. | Western Refining, Inc. | Mpl Investments Inc | Minnesota Pipe Line Company [Member] | St Paul Park Refining Company | Northern Tier Retail Company | Super America Franchising Company | Northern Tier Energy LLC | ||
Northern Tier Energy GP LLC | bbl | bbl | Company-owned | Franchised | ||||||
Store | Store | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Membership Interest | ' | ' | ' | ' | 17.00% | 17.00% | ' | ' | ' | 100.00% |
Preferred interest by parent | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Crude oil pipeline capacity (in barrels) | ' | ' | ' | ' | ' | 455,000 | ' | ' | ' | ' |
Common units owned | ' | ' | 35,622,500 | ' | ' | ' | ' | ' | ' | ' |
Sale of stock, percentage of ownership after transaction | ' | ' | 38.70% | 100.00% | ' | ' | ' | ' | ' | ' |
Business acquisition, price | ' | ' | $775,000,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from transaction | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of barrels of refinery crude oil capacity per calendar day | ' | ' | ' | ' | ' | ' | 89,500 | ' | ' | ' |
Number of barrels of refinery crude oil capacity per stream day | ' | ' | ' | ' | ' | ' | 96,500 | ' | ' | ' |
Number of stores | ' | 243 | ' | ' | ' | ' | ' | 164 | 79 | ' |
Summary_of_Principal_Accountin2
Summary of Principal Accounting Policies - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment | |||
Store | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Investment in MPLI at cost | $6.80 | ' | $6.80 |
Reportable operating segments | 2 | ' | ' |
Retail operated convenience stores | 243 | ' | ' |
Required Frequency of the maintenance, minimum | '2 years | ' | ' |
Required Frequency of the maintenance, maximum | '6 years | ' | ' |
Excise taxes | 88.9 | 70.8 | ' |
Derivative gain | -0.9 | -6.2 | ' |
Gain (loss) recognized in Cost of sales | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Derivative gain | ($0.90) | $0.30 | ' |
Northern Tier Retail Company | Company-owned | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Retail operated convenience stores | 164 | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Crude Oil [Member] | ' |
Related Party Transaction [Line Items] | ' |
Related party transaction, amounts of transaction | $6.30 |
Refined Product [Member] | ' |
Related Party Transaction [Line Items] | ' |
Related party transaction, amounts of transaction | 0.9 |
RINs and Rail Car Lease [Member] | ' |
Related Party Transaction [Line Items] | ' |
Related party transaction, amounts of transaction | $0.10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective tax rate | 0.10% | 0.10% |
Combined federal income tax rate and state income tax rate, net of federal benefit | 42.00% | 40.40% |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Crude oil and refinery feedstocks | $16.10 | $29.40 |
Refined products | 167.1 | 106.7 |
Merchandise | 21.6 | 22.6 |
Supplies and sundry items | 14.7 | 14.8 |
Total | $219.50 | $173.50 |
Inventories_Additional_Informa
Inventories - Additional Information (Details) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ' | ' |
Percentage of LIFO Inventory | 84.00% | 78.00% |
Equity_Method_Investment_Addit
Equity Method Investment - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Equity Method Investments and Joint Ventures [Abstract] | ' | ' | ' |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $6.40 | ' | $6.40 |
Common interest in Minnesota Pipe Line | 17.00% | ' | ' |
Carrying value of equity method investment | 87.6 | ' | 86.2 |
Distribution received | 0 | 4.9 | ' |
Equity Income from Minnesota Pipe Line | $1.50 | $3.40 | ' |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | $554.60 | $544.60 |
Less: accumulated depreciation | 108.1 | 98.4 |
Property, plant and equipment, net | 446.5 | 446.2 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | 9 | 9 |
Retail stores and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | 57.4 | 54.9 |
Retail stores and equipment | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '2 years | ' |
Retail stores and equipment | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '22 years | ' |
Refinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | 407.6 | 403.5 |
Refinery and equipment | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '5 years | ' |
Refinery and equipment | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '24 years | ' |
Buildings and building improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '25 years | ' |
Gross | 8.8 | 8.9 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '5 years | ' |
Gross | 18.7 | 18.6 |
Vehicles | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '5 years | ' |
Gross | 4.7 | 4.7 |
Other equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | 8.6 | 8.5 |
Other equipment | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '2 years | ' |
Other equipment | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Lives | '7 years | ' |
Precious Metals | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | 10.2 | 10.2 |
Asset under Construction | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | $29.60 | $26.30 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | Capitalized Software | Capitalized Software | ||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Gross assets acquired under capital leases | $9.20 | $8.60 | ' | ' |
Accumulated depreciation | 1.3 | 1.2 | ' | ' |
Depreciation expense | ' | ' | $0.90 | $0.90 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Franchise rights acquisition | $12.40 | $12.40 |
Trademarks acquisition | 21.4 | 21.4 |
Intangible assets | $33.80 | $33.80 |
Derivatives_Additional_Informa
Derivatives - Additional Information (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Derivative liability | $0.20 | $0 |
Refined Products Futures And Swaps | ' | ' |
Derivative [Line Items] | ' | ' |
Open commodity derivative instruments (in barrels) | 0 | 0 |
Derivatives_Recognized_Gains_a
Derivatives Recognized Gains and Losses on Derivative (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) on the change in fair value of outstanding derivatives | ($0.20) | $11.20 |
Settled derivative gains (losses) | -0.7 | -17.4 |
Total recognized gain (loss) | -0.9 | -6.2 |
Gain (loss) recognized in Cost of sales | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Total recognized gain (loss) | -0.9 | 0.3 |
Loss recognized in Losses from derivative activities | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Total recognized gain (loss) | $0 | ($6.50) |
Debt_Additional_Information_De
Debt - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||
Jul. 17, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 17, 2012 | Jul. 17, 2012 | Mar. 31, 2014 | Jul. 17, 2012 | Jul. 17, 2012 | Jul. 17, 2012 | Jul. 17, 2012 | Jul. 17, 2012 | Jul. 17, 2012 | Jul. 17, 2012 | Jul. 17, 2012 | Jul. 17, 2012 | Nov. 08, 2012 | |
Minimum | Maximum | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Alternate Base Rate | Alternate Base Rate | LIBOR rate plus | LIBOR rate plus | Federal Funds Rate Plus | One-month LIBOR rate plus | One-month LIBOR rate plus | Secured Notes 2020 Issue | |||||
Before Amendment | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.13% |
Debt principal amount | ' | $275,000,000 | $275,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $275,000,000 |
Maturity date of revolving credit facility | ' | ' | ' | ' | ' | ' | 17-Jul-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Springing financial covenant percentage | ' | ' | ' | ' | ' | ' | ' | 12.50% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment amount | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Criteria credit availability minimum amount | 22,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum fixed charge coverage ratio | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.50% | 2.00% | 2.50% | ' | ' | ' | ' |
Margin over index rate in determining alternate base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 100.00% | 225.00% | ' |
Annual commitment fee | ' | ' | ' | ' | 0.38% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, interest rate description | ' | '(a)B an alternative base rate, plus an applicable margin (ranging between 1.00% and 1.50%) or (b)B a LIBOR rate plus applicable margin (ranging between 2.00% and 2.50%). The alternate base rate is the greater of (a)B the prime rate, (b)B the Federal Funds Effective rate plus 50 basis points, or (c)B the one-month LIBOR rate plus 100 basis points and a spread of up to 225 basis points based upon percentage utilization of this facility. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, borrowing capacity | ' | 262,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability under the revolving credit facility | ' | 234,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letter of credit | ' | 28,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility outstanding | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Additional_Information_
Equity - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 24 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 12, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | 6-May-16 | Nov. 12, 2013 | Nov. 12, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | |
Subsequent Event | Western Refining, Inc. | Western Refining, Inc. | Partners' Capital | Partners' Capital | ||||
Northern Tier Energy GP LLC | Secondary Public Offering | Secondary Public Offering | ||||||
Times | ||||||||
Limited Partners' Capital Account [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Common units | ' | 92,707,773 | 92,100,363 | ' | ' | ' | ' | ' |
Number of secondary public offerings | ' | ' | ' | ' | ' | ' | ' | 3 |
Parent's equity units in registrant sold through public offerings | ' | ' | ' | ' | ' | ' | ' | 37,605,000 |
Formation and offering costs | ' | ' | ' | ' | ' | ' | $400,000 | ' |
Business acquisition, price | ' | ' | ' | ' | 775,000,000 | ' | ' | ' |
Common units owned | ' | ' | ' | ' | 35,622,500 | ' | ' | ' |
Sale of stock, percentage of ownership after transaction | ' | ' | ' | ' | 38.70% | 100.00% | ' | ' |
Proceeds from transaction | 0 | ' | ' | ' | ' | ' | ' | ' |
Number of days after the end of the quarter to make cash distributions to units holders | ' | '60 days | ' | ' | ' | ' | ' | ' |
Quarterly distribution declared to common unitholders | ' | ' | ' | $0.77 | ' | ' | ' | ' |
Distribution declaration date | ' | ' | ' | 6-May-14 | ' | ' | ' | ' |
Distribution date of record | ' | ' | ' | 19-May-14 | ' | ' | ' | ' |
Distribution payable date | ' | ' | ' | 30-May-14 | ' | ' | ' | ' |
Distributions declared | ' | ' | ' | $71,000,000 | ' | ' | ' | ' |
Increase in units issued and outstanding | ' | 607,410 | ' | ' | ' | ' | ' | ' |
Distributions_Paid_During_or_P
Distributions Paid During or Pertaining to Available Cash Generated (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 07, 2014 | Nov. 27, 2013 | Aug. 29, 2013 | 30-May-13 | Feb. 28, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Cash Distribution | Cash Distribution | Cash Distribution | Cash Distribution | Cash Distribution | Cash Distribution | Cash Distribution | |||
Distribution Made to Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date Declared | ' | ' | 7-Feb-14 | 11-Nov-13 | 13-Aug-13 | 13-May-13 | 11-Feb-13 | ' | ' |
Date Paid | ' | ' | 28-Feb-14 | 27-Nov-13 | 29-Aug-13 | 30-May-13 | 28-Feb-13 | ' | ' |
Common units | 92,707,773 | 92,100,363 | 92,400,000 | 92,200,000 | 92,200,000 | 92,200,000 | 91,900,000 | ' | ' |
Distributions per common unit (in dollars per share) | ' | ' | $0.41 | $0.31 | $0.68 | $1.23 | $1.27 | $410,000 | $3.49 |
Total Distribution | $37.90 | ' | $37.90 | $28.60 | $62.70 | $113.40 | $116.70 | $37.90 | $321.40 |
Equity_Partners_Capital_Accoun
Equity Partners' Capital Account (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Limited Partners' Capital Account [Line Items] | ' | ' |
Balance | $401.10 | ' |
Net income | 71.5 | 119.4 |
Distributions | -37.9 | ' |
Equity-based compensation expense | 7.4 | ' |
Amortization of net prior service cost on defined benefit plans | 0.1 | ' |
Balance | 442.2 | ' |
Accumulated Other Comprehensive Income | ' | ' |
Limited Partners' Capital Account [Line Items] | ' | ' |
Balance | -2 | ' |
Net income | 0 | ' |
Distributions | 0 | ' |
Equity-based compensation expense | 0 | ' |
Amortization of net prior service cost on defined benefit plans | 0.1 | ' |
Balance | -1.9 | ' |
Partners' Capital | ' | ' |
Limited Partners' Capital Account [Line Items] | ' | ' |
Balance | 403.1 | ' |
Net income | 71.5 | ' |
Distributions | -37.9 | ' |
Equity-based compensation expense | 7.4 | ' |
Amortization of net prior service cost on defined benefit plans | 0 | ' |
Balance | $444.10 | ' |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Unit (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity [Abstract] | ' | ' |
Net income | $71.50 | $119.40 |
Participating Securities, Distributed and Undistributed Earnings | 0.3 | 0 |
Net income attributable to unrestricted common unitholders | $71.20 | $119.40 |
Weighted average unrestricted common units - basic & diluted (in shares) | 92,166,841 | 91,915,000 |
Basic & diluted earnings per share (in dollars per share) | $0.77 | $1.30 |
Assets_and_Liabilities_Carried
Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $129.40 | $85.80 |
Total Assets | 129.4 | 85.8 |
LIABILITIES | ' | ' |
Derivative liability - current | -0.2 | 0 |
Total Liabilities | -0.2 | ' |
Quoted prices in active markets (Level 1) | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 129.4 | 85.8 |
Total Assets | 129.4 | ' |
LIABILITIES | ' | ' |
Derivative liability - current | 0 | ' |
Total Liabilities | 0 | ' |
Significant other observable inputs (Level 2) | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 0 | 0 |
Total Assets | 0 | ' |
LIABILITIES | ' | ' |
Derivative liability - current | -0.2 | ' |
Total Liabilities | -0.2 | ' |
Unobservable inputs (Level 3) | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 0 | 0 |
Total Assets | 0 | ' |
LIABILITIES | ' | ' |
Derivative liability - current | 0 | ' |
Total Liabilities | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $200,000 | ' | $0 | $0 |
Fair value adjustment to assets | $0 | $0 | ' | ' |
Fair_Value_of_Secured_Notes_De
Fair Value of Secured Notes (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Secured Notes, Carrying Amount | $275,000,000 | $275,000,000 |
Secured Notes 2020 Issue | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Secured Notes, Carrying Amount | 275,000,000 | 275,000,000 |
Secured Notes, Fair Value | $296,700,000 | $291,100,000 |
Changes_in_Asset_Retirement_Ob
Changes in Asset Retirement Obligations (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' |
Asset retirement obligation balance at beginning of period | $2.20 | $1.90 |
Accretion expense | 0.1 | 0 |
Asset retirement obligation balance at end of period | $2.30 | $1.90 |
EquityBased_Compensation_Addit
Equity-Based Compensation - Additional Information (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Partners' Capital | LTIP | LTIP | NT Investor Plan | NT Investor Plan | |||
Secondary Public Offering | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Equity-based compensation expense | $4.30 | $5.30 | ' | ' | ' | ' | ' |
Common units reserved for issuance | ' | ' | ' | 9,200,000 | ' | 29,000,000 | ' |
Restricted stock units outstanding | ' | ' | ' | 500,000 | 300,000 | ' | ' |
Expected forfeiture rate | ' | ' | ' | 10.00% | ' | ' | ' |
Equity based compensation related to reorganization | 3.1 | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | ' | ' | ' | 9.7 | 6.1 | ' | ' |
Minimum percentage of the grant date equity fair value that the awards shall be priced at | ' | ' | ' | ' | ' | 100.00% | ' |
Vesting period | ' | ' | ' | ' | ' | '5 years | ' |
Profit interest expire period (Years) | ' | ' | ' | ' | ' | 'P10Y | ' |
Common stock issued | 92,707,773 | 92,100,363 | 10,700,000 | ' | ' | ' | ' |
Equity based compensation recognized due to accelerated vesting event | ' | ' | ' | ' | ' | ' | $5.30 |
Summary_of_LTIP_Unit_Activity_
Summary of LTIP Unit Activity (Details) (LTIP, USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
LTIP | ' | ' |
Number of LTIP units | ' | ' |
Number of LTIP units, outstanding beginning balance | 300,000 | ' |
Number of LTIP units, Awarded | 482,800 | ' |
Number of LTIP units, Cancelled | -1,900 | ' |
Number of LTIP units, Vested | -277,100 | ' |
Number of LTIP units, outstanding ending balance | 500,000 | 300,000 |
Weighted Average Grant Date Price | ' | ' |
Weighted Average Grant Date Price outstanding (in dollars per share) | $27.02 | ' |
Weighted Average Grant Date Price awarded (in dollars per share) | $24.28 | ' |
Weighted Average Grant Date Price Cancelled (in dollars per share) | $26.52 | ' |
Weighted Average Grant Date Price Vested (in dollars per share) | $25.68 | ' |
Weighted Average Grant Date Price outstanding (in dollars per share) | $25.15 | $27.02 |
Weighted Average Term Until Maturity | ' | ' |
Weighted Average Term Until Maturity Awarded | '2 years | ' |
Weighted Average Term Until Maturity Cancelled | '2 years 4 months 24 days | ' |
Weighted Average Term Until Maturity | '2 years 7 months 6 days | '2 years 10 months 24 days |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Remaining Contractual Terms | '1 year 6 months | ' |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Balance Plan | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Employers contribution | 5.00% | ' |
US treasury bond maturity term used to determine employer contributions | '30 years | ' |
Participants full vested period | 'P3Y | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | $0.50 | $0.50 |
Retiree Medical Plan | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Participants full vested period | 'P10Y | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | $0.20 | $0.20 |
Retiree Medical Plan | Minimum | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Health care benefit plan for employees, age limit | '55 years | ' |
Retiree Medical Plan | Maximum | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Health care benefit plan for employees, age limit | '65 years | ' |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net cash from operating activities included: | ' | ' |
Interest paid | $0.90 | $1.10 |
Income taxes paid | 0 | 0.4 |
Noncash investing and financing activities include: | ' | ' |
Capital expenditures included in accounts payable | $3 | $3.70 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Liabilities for remediation | $1.50 | ' | $1.50 |
Period of remediation liabilities | '10 years | '10 years | ' |
Receivables for recoverable costs | $0.10 | ' | $0.10 |
Super America Franchising Company | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Period for license agreements | '10 years | ' | ' |
Segment_Information_Additional
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Store | |
Segment Reporting Information [Line Items] | ' |
Reportable operating segments | 2 |
Number of convenience stores | 243 |
Retail | ' |
Segment Reporting Information [Line Items] | ' |
Number of convenience stores | 164 |
Operating_Results_for_Operatin
Operating Results for Operating Segments (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues | ' | ' | ||
Revenues | $1,346.30 | [1] | $1,115 | [1] |
Net income (loss) | 71.5 | 119.4 | ||
Income from equity method investment | 1.5 | 3.4 | ||
Depreciation and amortization | 9.9 | 8.6 | ||
Capital expenditures | 10 | 26.9 | ||
Total revenues | ' | ' | ||
Revenues | ' | ' | ||
Revenues | 1,346.30 | 1,115 | ||
Refining | ' | ' | ||
Revenues | ' | ' | ||
Revenues | 1,011.20 | 771.8 | ||
Net income (loss) | 97.8 | 142.1 | ||
Income from equity method investment | 1.5 | 3.4 | ||
Depreciation and amortization | 8 | 6.7 | ||
Capital expenditures | 8.8 | 26.5 | ||
Refining | Elimination of intersegment revenues | ' | ' | ||
Revenues | ' | ' | ||
Revenues | 232.4 | 246.8 | ||
Refining | Total revenues | ' | ' | ||
Revenues | ' | ' | ||
Revenues | 1,243.60 | 1,018.60 | ||
Retail | ' | ' | ||
Revenues | ' | ' | ||
Revenues | 335.1 | 343.2 | ||
Net income (loss) | 1.6 | 0.7 | ||
Income from equity method investment | 0 | 0 | ||
Depreciation and amortization | 1.7 | 1.8 | ||
Capital expenditures | 1.1 | 0.4 | ||
Retail | Total revenues | ' | ' | ||
Revenues | ' | ' | ||
Revenues | 335.1 | 343.2 | ||
Other | ' | ' | ||
Revenues | ' | ' | ||
Revenues | 0 | 0 | ||
Net income (loss) | -27.9 | -23.4 | ||
Income from equity method investment | 0 | 0 | ||
Depreciation and amortization | 0.2 | 0.1 | ||
Capital expenditures | 0.1 | 0 | ||
Other | Elimination of intersegment revenues | ' | ' | ||
Revenues | ' | ' | ||
Revenues | -232.4 | -246.8 | ||
Other | Total revenues | ' | ' | ||
Revenues | ' | ' | ||
Revenues | ($232.40) | ($246.80) | ||
[1] | Excise taxes included in revenue and cost of sales $ 316.4 $ 300.1 $ 242.9 |
Total_Assets_by_Segment_Detail
Total Assets by Segment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | $1,192.90 | $1,117.80 |
Refining | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 906.8 | 875.6 |
Retail | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 124.9 | 138.2 |
Corporate/Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | $161.20 | $104 |
Reorganization_and_Related_Cos2
Reorganization and Related Costs (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2014 |
Employee Severance | Scenario, Forecast | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Expected cost | ' | ' | ' | $3.20 |
Reorganization and related costs incurred during period | 9.4 | 0.4 | ' | ' |
Less: non-cash equity based awards with accelerated vesting | -3.1 | ' | ' | ' |
Cash payments made to severed employees | ' | ' | -2.3 | ' |
Ending liability for cash portion of reorganization costs | $4 | ' | ' | ' |