CVI - CVR Energy will not pursue nitrogen fertilizer spinoff

2023-06-13 16:41:43 ET

CVR Energy ( NYSE: CVI ) said Tuesday it will not pursue a potential spinoff of its nitrogen fertilizer business, which it indirectly owns through general and limited partner interests held in CVR Partners ( UAN ).

President and CEO Dave Lamp said its exploration of a potential spinoff sought to determine "how to create pure-play refining and fertilizer entities while still retaining the operational efficiencies both CVR Energy and CVR Partners enjoy from our current model."

Lamp said the board concluded "the complexity of a transaction that could accomplish both goals may not deliver the appropriate value under current conditions."

The CEO also noted the pre-treatment unit at Wynnewood remains on track for mechanical completion in late Q3, "which we expect to enhance the renewables capture rate and profitability."

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