Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, December 21, 2018

Article Excerpt

CVR ENERGY INC., $31.09, symbol CVI on New York, is a holding company that owns 81% of CVR Refining LP (symbol CVRR on New York), a refiner of oil, and 34% of CVR Partners LP (symbol UAN on New York), a producer of nitrogen fertilizer. The refining business generates about 96% of the company’s annual revenues. Activist investor Carl Icahn first invested in CVR Energy in May 2012 through a tender offer to purchase all of the company’s shares. He managed to secure 69% of the holding company. Today, he owns almost 72% of its shares. In the three months ended September 30, 2018, CVR’s revenues increased 33.1%, to $1.94 billion from $1.45 billion a year earlier. Sales were higher due to stronger results for the refining business. Excluding one-time items, CVR earned $90.0 million. That was up 184.4% from $32.0 million. Earnings per share rose 156.8%, to $0.95 from $0.37, on more shares outstanding. The outlook for CVR is positive. Refiners are in…