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American Capital Agency Corp. Message Board

  • l3l_00lvl l3l_00lvl Jan 24, 2013 9:32 AM Flag

    Potential oppertunity

    So some big news today from CVI group, I like their recent CVRR but thought I'd share

    CVR Energy Inc. (CVI) has declared a special $5.50 per-share dividend and also unveiled plans to initiate a per-share quarterly dividend of 75 cents.
    Shares jumped 6% to $54.49 in recent premarket trading. Through Wednesday's close, the stock has more than doubled over the past 12 months.
    CVR Energy noted it expects cash flows of $700 million for 2013 from its interests in CVR Refining LP (CVRR) and CVR Partners LP (UAN), and based on this its board has declared the quarterly dividend.
    CVR Energy owns a majority interest in CVR Partners, a nitrogen fertilizer master limited partnership. It also recently currently holds a stake of about 84% in CVR Refining, a newly formed master limited partnership that will distribute all of its available cash each quarter.
    CVR Energy said estimated cash distributions for 2013 from CVR Refining are about $700 million. Under the current ownership structure, the new unit holders of CVR Refining would collectively receive about $115 million, generating an annualized yield of roughly 19% and CVR Energy would receive about $585 million, for the year ending Dec. 31.
    CVR Energy will begin paying the quarterly dividend of 75 cents a share in the second quarter.
    "Our board's decision to adopt a quarterly dividend policy at this time underscores our commitment to returning capital to shareholders and enhancing shareholder value," said CVR Energy Chairman Carl C. Icahn. "The policy reflects the strength of our balance sheet, our fundamental ability to generate free cash flow and our confidence in the future prospects of our business."
    The special dividend is payable Feb. 19 to shareholders of record on Feb. 5. CVR Energy said the total amount of the special dividend payment will be about $480 million, leaving it with "abundant liquidity."

19.480.00(0.00%)Oct 21 4:00 PMEDT