During the 2nd quarter the strong Chicago 2-1-1 crack spread was 21.87. for the 3rd quarter it is 25.08 to date. Profits should rise 30%. However they will experience downtime in September. Distribution can be the same level as the second quarter imo. With oil continuing to collapse, CVRR has the potential to reach the 30s next year once all the maintenance work is done.
"continues to pay cash dividends from new debt and equity issuance, and unlike most every other dividend paying corporation, is not generating traditional free cash flow in excess of its dividend payout."
Barclays yesterday upgraded to 25 from 23. I don't trust upgrades very much but with the endless glut of oil, cvrr should be fine for years to come as long as they don't experience fires or explosions. I liked in the conference report when it was mentioned one day they would like a pipeline mlp.
2nd quarter spread is 3 dollars higher than 1st quarter. Should be a 30% rise in profits. I predict the dividend at 98 cents. Next quarter, with the spread having increased another 3 dollars, I predict 1.25.