Can anyone quantify how a $1 change in the spread between the two affects distributable cash?
I have called IR but they havent responded
Good luck quantifying that. There are way too many variables in play. Does CVRR hedge its spread exposure?
All I can show is some numbers.
Brent/wti spread 12/31/12 was $19.29
6/21/13 was $7.22
6/28/13 was $ 5.60
That equals out to a -71% drop between the two for the year.
Easy to calculate the change in Refining margin excluding hedges..Any way you slice it it's bad news.