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CVR Energy, Inc. Message Board

  • duncansfree duncansfree May 29, 2013 10:05 AM Flag

    So, Icahn uses CVRR as a piggy bank by dropping 11 million shares net, then

    robs CVRR's cash flow for a fat CVI dividend.

    Ouch.No wonder it's floundering at 30 bucks.


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    • Not exactly. CVRR isn't being robbed of anything. But he is slowly selling out of his CVI holdings synthetically by having CVI sell off CVRR and then having CVI pay out the cash. Having CVRR be a MLP has created a higher valuation for CVRR than other publicly traded refiners get. Brilliant move by him. Strangely recently CVI has gone from a discount to its holdings of CVRR and UAN, to a large premium. Not sure whats behind the move, but probably because of the low share float and stock market hitting all time highs. Maybe there were some long/short funds that were short CVI and long CVRR. And perhaps just decided to unwind at a bad time. No idea. I have always timed CVI very very poorly.

      • 1 Reply to csco_brat
      • Two things that may have nothing to do with this price drop, Magellan cut allocation through their pipelines which were running over capacity, and then we have an unscheduled refinery shutdown which I don't know how long, but production will decline from both. I bought my first position today in (CVI) kinda like buying some safety for a pullback. Getting the dividend on June 10 money in the bank.....I will be at a breakeven point if it declines to $55.92 pps.

        Just a note......Phillips 66 (PSX) will be doing the same thing later this year forming a new MLP IPO PSXP with drop down assets.

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