CVR Refining, LPNYSE
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
Yesterday, 2:03 PM
Yesterday, 1:57 PM
- CVR Refining (CVRR -10.3%) plunges after suspending its dividend as it reports much lower than expected Q3 earnings on a 14.7% Y/Y decline in revenue to $1.16B.
- CVRR says its Q3 RINs expense totaled $58.3M, and estimates FY 2016 RINs expense at $210M-$250M; in today's earnings conference call, CEO Jack Lipinski called RINs "an egregious tax on our business."
- Parent company CVR Energy (CVI -7.4%) released an analysis saying that some of the world's biggest oil companies, including Chevron (NYSE:CVX), BP and Royal Dutch Shell (RDS.A, RDS.B), could reap a total of more than $1B this year by selling RINs, while smaller refiners are forced to spend hundreds of millions to buy credits to comply with EPA rules.
Yesterday, 8:35 AM
Wed, Oct. 26, 5:30 PM
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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