Doesn't CVRR hedge the crack spread? Even if it narrows, don't they hedge against that? Shouldn't we expect that their hedging strategy will yield a dividend within a consistent range? How vulnerable is the dividend to the crack spread?
a recent report has said crack spread is increasing due to major turnarounds so cvi is hittin on all 8
It was stated on the cc call that the $5.50 - $6.50 range for first years distributions is still good, but towards the lower end. To get to $5.50, the distribution would have to average around $1.30
From what I understand only between 40 to 50% is hedged.
Wonder what the duration of the hedge is? Basically what I want to know is how accurately they can predict the dividend or protect it.