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  • How About Some MLP Love At A 19% Discount? 0 comments
    Apr 18, 2013 5:51 AM | about stocks: CVI

    Ok, so CVR energy (NYSE:CVI) is not an MLP. But it's only two assets, ownership stakes in CVR Refining partners (NYSE:CVRR) and CVR partners (NYSE:UAN), are. And that's all CVI has or does. CVI is of course famous for being a multi-bagger for one Carl

    CVR Energy, Inc. (<a href='http://seekingalpha.com/symbol/cvi' title='CVR Energy, Inc.'>CVI</a>)

    Icahn, but let's move on to why it's particularly ravishing today.

    As noted in the title, CVI is trading at a 19% discount to its sum-of-parts valuation. The discount is excessive even in consideration of a conglomerate discount that may/should exist. The math is simple:

    CVI owns 71% of UAN which is worth 1.257 billion dollars

    CVI owns 81.3% of CVRR which is worth 3.64 billion dollars

    Together, these two assets add up to 4.897 billion dollars vs. the current 3.96 billion market cap of CVI. this is a 19.1% discount! Sounds like some free MLP love to me.

    Themes: MLP refiners Stocks: CVI
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