From Seeking Alpha
The following is a "small cap insight" column written by Sarfaraz A. Khan about a company with a market cap of less than $5 billion.
CVR Energy (CVI) is an oil refiner and marketer of petroleum fuels and a maker of
nitrogen fertilizer products. It primarily operates under two segments,
petroleum business, called CVR
Refining (CVRR), and
nitrogen fertilizer business, called CVR
Partners (UAN). Both
of its subsidiaries are Master Limited Partnerships. So essentially, CVR Energy
is a holding company of these two MLPs and owns significant common units of the
companies. The market cap of the three firms is presented below.
Market
Cap in $ Millions
|
|
CVR
Energy
|
3,650
|
CVR
Refining
|
3,870
|
CVR
Partners
|
1,320
|
The
main focus of the article is on the holding company. CVR Energy has reasonable
valuation and has also made significant improvements in their operations. It is
one of the best dividend stocks out there which pays like an MLP. In this
article, I will discuss the company's performance over the last five years, its
future prospects and present some of the main points which I believe makes this
relatively small energy play an attractive buy.
Carl
Icahn
Carl Icahn owns nearly 80% of CVR Energy. The billionaire investor initially
started with a 14.5% stake in the energy firm in January 2012. CVR Energy has
now become Icahn's second largest holding, behind only his Icahn Enterprises.
Quarterly
Results
