2024-03-19 08:21:40 ET
Summary
- CVR Energy has seen a 26% increase in shares over the past year, benefiting from a favorable refining environment.
- CVI operates two refineries in the US and owns a 37% stake in CVR Partners and should continue to benefit from wide refining margins.
- Carl Icahn's controlling stake and potential for share sales pose a risk, but the company's strong financials and potential for special dividends make it an attractive buy.
CVR Energy ( CVI ) has been a solid performer over the past year, with shares rising about 26% (alongside about 15% in regular and special dividends), as the company has benefitted from a favorable refining environment. While refining spreads narrowed during 2023, they have more recently rebounded, helping to push shares to a 52-week high. Since recommending shares as a buy in October 2023 , they have returned nearly 24% for investors, roughly in line with the S&P 500's gain. I still see upside and would stay long CVI...
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CVR Energy: Strong Cash Flow Provides Additional Upside