The difference between the cost of the feed stock at WTI price, and the end produced product valued at Brent had compressed, making the 22% dividend unsustainable.
Yesterdays 8% move up in CVRR share price came on news of a wider spread between WTI and Brent, also, confirmation of cheaper oil feed stock by rail, and perhaps news that the EPA will blink on their unreasonable requirements for inclusion of larger amounts of corn based ethanol into gasoline.
If I understand the ethanol issue correctly, it drives down profits for refinery's when they are required to purchase and blend this regardless of market price.
If I am incorrect somebody scold me please. By my standards, I have a lot on money bet on sustainability of an oversized dividend.
Do you prefer the far left's insane crusade against oil while throwing huge tax money at loosers like solar, wind and ethanol?
If you want to watch crazy people try to destroy the USA watch MSNBC. You alone might double their Nielson ratings.
CVRR needs to prove their production can return and remain at previous highs to be able to capture profits from increasing crack spreads. Todays sector upgrade by Dutsche bank remarked that future crack spread of $30 a barrel might double the equity value of refiners as a group next year. God I hope so, and I bought more today.