- Following CVR Energy paying their massive special dividend, it was hoped that they would reinstate regular quarterly dividends, but alas this has not eventuated.
- The primary reason stems from uncertainty regarding upcoming EPA policies that mandate the ethanol blending requirements, which has pushed the prices of RINs through the roof.
- If nothing changes, RINs are expected to run out in the coming years, and thus, it seems reasonable to expect policy changes and relief for small refiners to be forthcoming.
- Despite pushing their leverage into the very high territory after paying their massive special dividend, their financial position remains healthy thanks to their strong liquidity.
- This means that they can afford to continue waiting for the EPA policies to change, and thus, I am still maintaining my bullish rating.
For further details see:
CVR Energy: Waiting On The EPA For More Dividends