Barron's likes CVR Refining, Northern Tier Energy as surprising bargains

Barron's touted high-yield energy plays CVR Refining (CVRR +4.6%) and Northern Tier Energy (NTI +0.9%) over the weekend as looking attractive on a long-term perspective after both currently go for just 6x this year's projected earnings.

Wall Street analysts estimate NTI will pay out 44% of its unit price in total over three years through 2016; for CVRR, estimated payments over three years work out to 37% of its recent price.

Average analyst price targets suggest 13% upside for NTI over the next year and 19% for CVRR; add that to projected yields this year of 15% for each, and the result is potential for returns of more than 30%.

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Comments (5)
  • wgrogers
    , contributor
    Comments (109) | Send Message
    After their hatchet jobs on LINE/LNCO and KMI/KMP/KMR, who gives a hoot what Barron's thinks?
    10 Mar 2014, 12:44 PM Reply Like
  • rheimerl
    , contributor
    Comments (492) | Send Message
    its funny because barrons was negative on the "variable" payouts of nti and cvrr about a year ago
    10 Mar 2014, 12:48 PM Reply Like
  • aguyinthemidwest
    , contributor
    Comments (125) | Send Message
    did they mention APL ?
    10 Mar 2014, 12:49 PM Reply Like
  • IPOChaser
    , contributor
    Comments (62) | Send Message
    NTI is well positioned geographically in Minnesota. One of the most northern and central (major) refineries in the US. And with the current Administration's push back on exporting until we have more oil "in-house" the future looks bright if not blindingly so for NTI. IMHO.
    10 Mar 2014, 12:57 PM Reply Like
    , contributor
    Comments (28) | Send Message
    CVRR's geographical location and distribution makes it interesting.There are other advantages;ie,crude refining capabilities,gathering services are pluses.I was in the production business for over twenty years in SE Kansas.I'm a stockholder nad hope to be for a long time.
    10 Mar 2014, 01:00 PM Reply Like
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