Icahn Enterprises LP's stock fell 4% early Tuesday, after CVR Energy Inc., in which it owns a 66% stake, said it would suspend its third-quarter dividend, as unplanned outages and a weak macro environment pressured earnings.
CVR Partners has received attention for potential takeover after its parent company announced exploring strategic transactions. Despite speculation of high takeover prices, CVR Partners remains an attractive income investment at mid-cycle conditions with improving demand and feedstock cost savings. Forecasting a distribution of $2.65 per quarter in 4Q 2024 and 1Q 2025, offering a yield of 10.4% based on 2024 payout.
The chief executive of U.S. oil refiner CVR Energy on Tuesday said the Sugar Land, Texas, company is exploring strategic transactions in refining.
CVR Energy shares have only gained 6% in the past year and have lost 30% in the past quarter amid concerns about crack spreads. Recent financial results were mixed, with lower crack spreads impacting earnings, but CVI remains strongly cash generative. The refining macro has deteriorated, but may be bottoming out, with the potential for a rebound in crack spreads and demand.