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The One Thing You Need to Know About MLP Refiners

By Aimee Duffy – Feb 24, 2014 at 11:00AM

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Investors considering CVR Refining and Northern Tier Energy need to know what the crack spread is and how it affects profitability.

News in the refining world is often dominated by talk of spreads. You've got the Brent-WTI spread and the crack spread. Though many investors think the former is what matters most, it's actually the latter that provides a direct connection to the profitability of any given refiner. Understanding the crack spread is crucial if you are thinking of buying a small master limited partnership refiner like CVR Refining (CVRR) or Northern Tier Energy (NYSE: NTI).

In this video, Fool.com contributor Aimee Duffy talks to Tyler Crowe about what crack spreads are, how to calculate them, and how they can indicate a refiner's profitability.

Aimee DuffyTyler Crowe, and The Motley Fool have no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

CVR Refining Stock Quote
CVR Refining
CVRR

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