CVI - CVR Energy: 2022 Is Looking Bright After Another Tough Year

• After CVR Energy enjoyed a reprieve during the third quarter of 2021, it seems this did not continue into the fourth quarter.
• Their operating cash flow was barely positive during the fourth quarter of 2021, regardless of temporary working capital movements.
• Apart from the difficult operating conditions, this was also dragged down by the continued elevated RIN prices.
• Thankfully their renewable diesel refining unit should start production during 2022 and thus materially lower their RIN exposure and the resulting associated costs.
• Since 2022 is looking bright with prospects of finally seeing the dividend reinstated, I believe that maintaining my buy rating is appropriate.

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