CVR Refining's Unitholders Receive A Small Glimmer Of Hope In An Otherwise Ugly Situation
Tristan R. Brown • 29 Comments
Tristan R. Brown • 29 Comments
Tue, Sep. 20, 2:00 PM
Mon, Sep. 19, 3:54 PM
- CVR Refining (CVRR -13%) plunges following news it has acquired a 40% stake in a new joint venture with Velocity Midstream Partners for a new crude oil pipeline connecting the SCOOP play in central Oklahoma to Velocity's refinery in Wynnewood, Okla.; financial terms are not disclosed.
- Benzinga's Joel Elconin says Friday's sharp rise and today's drastic decline in CVRR shares is not related to any fundamental news; traders attempting to profit from a large sell imbalance on Friday's close were caught off-guard when the stock switched to a large buy imbalance moments before the closing bell, sending the shorts scrambling to cover, followed by today's rapid reversal and correction.
Mon, Sep. 19, 2:21 PM
Mon, Sep. 19, 12:57 PM
Mon, Sep. 19, 9:16 AM
Fri, Sep. 16, 5:46 PM
Mon, Sep. 12, 2:02 PM
Tue, Aug. 16, 4:42 AM
- Billionaire investor Carl Icahn has called on the EPA to make changes to the market for renewable fuel credits or else risk "the mother of all short squeezes" that could bankrupt refiners.
- "The RIN market is the quintessential example of a 'rigged' market where large gas station chains, big oil companies and large speculators are assured to make windfall profits at the expense of small and midsized independent refineries which have been designated the 'obligated parties' to deliver RINs."
- Related tickers: VLO, NTI, CLMT, MPC, TSO, ALDW, CVI, WNR, PBF, DK, HFC, CVRR, NTI, ALJ, TSO, WNR, PSX, XOM, PBF
Thu, Aug. 11, 6:57 PM
- Major U.S. refiners are on track to pay record amounts this year for credits to comply with U.S. renewable fuel rules, a trend that is bound to continue to hurt profits for the group, Reuters reports.
- A group of 10 refinery owners including Marathon Petroleum (NYSE:MPC) and Valero Energy (NYSE:VLO) spent at least $1.1B buying RINs, according to a Reuters review of their filings, placing them on track to surpass the annual record of $1.3B spent by the same group in 2013.
- RINs averaged ~$0.78 each during Q2, ~25% above the same period a year ago, according to the analysis, due to more ambitious targets from U.S. regulators on the volumes of ethanol required to be blended with gasoline.
- Other relevant tickers include PBF, CVRR, HFC, TSO, PSX, WNR, DK.
Fri, Aug. 5, 12:25 PM
- The American Fuel and Petrochemical Manufacturers trade group is petitioning the EPA to change the way the agency enforces the U.S. biofuel mandate, shifting the responsibility of program compliance with distributors who blend gasoline with ethanol for delivery to filling stations, not with refiners who make the fuels.
- The AFPM and other oil and gas groups have long been opposed to the Renewable Fuel Standard, which sets the amounts of biofuels such as ethanol that must be blended into U.S. gasoline and diesel supplies annually, arguing the mandates are costly for refiners and do not reflect actual gasoline demand, which has not risen as fast as lawmakers originally envisioned.
- Renewable fuel credits have surged 32% in the past two months, even as crude oil prices have dropped; this year, U.S. refiners will pay $1.8B for the RIN credits, adding to the pain of the lowest summer profit margins in five years.
- Relevant tickers include VLO, PBF, CVRR, HFC, REGI, PEIX, REX, GPRE
Thu, Aug. 4, 2:57 PM
- CVR Refining (CVRR -1.4%) is downgraded to Underweight from Overweight with a $6 price target, cut from $8, at Barclays.
- The firm cites the recent disclosure that Icahn Enterprises has sold 250K units, which triggered the clause in the general partner agreement that the ownership threshold for the GP's call right has been "permanently" reduced to 80% from 95%.
- Additionally, Barclays now assumes no distribution for the remainder of the year and expects cautious measures concerning cash reserve levels.
- Barclays makes the call even as it believes CVRR already has been oversold and that the underlying asset value and cash flow generating capability could justify a higher share price.
Mon, Aug. 1, 10:48 AM
Thu, Jul. 28, 8:34 AM
Wed, Jul. 27, 5:30 PM
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Fri, Jul. 1, 3:26 PM
- CVR Refining (CVRR -0.2%) says production rates remain below normal levels at its 115K bbl/day refinery at Coffeyville, Kan., amid an ongoing outage on Magellan Midstream Partners' (MMP -0.8%) refined products pipeline.
- MMP says the line, which carries as much as 30K bbl/day of Coffeyville's products to market, will not return to full service for 3-4 weeks; CVRR says the refinery will continue to operate at reduced rates until the pipeline is fully restored.
- Piper Jaffray downgrades CVRR to Underweight from Neutral with a $3 price target, believing that the company may not be able to distribute cash in Q2 as well as an unfavorable view of Q2 refining margin indicators.
Wed, Jun. 29, 3:58 PM
- Tesoro (TSO +1.9%) is upgraded to Buy from Neutral with a $100 price target, lifted from $96, at Goldman Sachs, citing a more constructive outlook for the California refining market, underappreciated value in non-refining assets, and limited risk from higher RINs and a lower Brent-WTI spread.
- Goldman thinks the California refining market will remain well-balanced, despite Torrance returning to service, driven by growing regional demand and the currently low inventories, and that investors have not been giving TSO fair value for its non-refining businesses.
- At the same time, the firm downgrades PBF Energy (PBF +1.2%) to Neutral from Buy with a $26 price target, cut from $37, expecting the company to be “disproportionately negatively impacted” by expectations of higher RINs prices.
- Along with TSO, Goldman rates Valero (VLO +0.1%) and Marathon Petroleum (MPC +4%) as Buys among refiners, while maintaining Sell ratings on Phillips 66 (PSX +1.2%), HollyFrontier (HFC +0.1%), CVR Energy (CVI -0.4%) and CVR Refining (CVRR -1%).