I would like the following info if anyone has it:
1. How does CVRR hedge its crack spread?
2. Is this hedge for 100% of the total?
3. I had read in an article that if the spead drops below 25; CVRR will not
be able to pay the distributions investors are looking for. I have been watching
the spread and it seems to be dropping now at 31.79. Dont know if this is anything to be concerned about
at this point. This is why the answer to #2 is important.
they hedged 40-50%. The WTI Brent spread is collapsing here. under $13 today from $21 earlier. I am expecting CVI to offer more units of CVRR while it is still at this very high relative price. up 35%+ from the $25 offering. This is how icahn can cash out of his holdings. Sell more CVRR and have CVI issue a special dividend. Based on public valuaitons, CVRR is only worth around $25/share on comparative refinery valuations. HFC is trading at just $21,000 per BPD capcaity. Compared to $27,500 for CVRR.