CVR Energy (NYSE:CVI – Get Free Report) released its quarterly earnings results on Tuesday. The oil and gas company reported $4.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.91 by $1.09, Zacks reports. The company had revenue of $3.28 billion during the quarter, compared to analysts’ expectations of $2.35 billion. CVR Energy had a net margin of 0.81% and a negative return on equity of 15.21%. The business’s quarterly revenue was up 68.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.40 earnings per share.
Here are the key takeaways from CVR Energy’s conference call:
- CVR Energy agreed to acquire Marathon Petroleum’s St. Paul Park and Mandan refineries, related marketing operations and logistics assets for approximately $4.2 billion. The deal would nearly double refining capacity to about 384,000 barrels per day and is expected to be more than 50% accretive to earnings and free cash flow in the first full year after closing.
- Management reported record third-quarter results, including $563 million of net income, $5.67 in earnings per share and $804 million of EBITDA. Adjusted petroleum EBITDA rose to $565 million from $120 million a year earlier, driven by stronger Group 3 crack spreads and higher throughput.
- Management expects the acquired assets to provide geographic diversification, stronger product placement, approximately $70 million of annual cost and operational synergies and lower consolidated RIN exposure through greater blending capacity. The transaction is expected to close by year-end 2026, subject to regulatory and customary conditions.
- The acquisition will increase leverage and require a mix of common equity, cash and debt, including $2.5 billion of bridge financing and an anticipated $3.8 billion of pro forma debt at closing. Although management plans to delever, the transaction competes with near-term capital returns and introduces financing and integration risks.
- Elevated renewable identification number costs continued to pressure refining economics, with net RIN expense of $235 million, or $11.20 per barrel, during the quarter. The fertilizer segment also declined to $20 million of adjusted EBITDA from $71 million a year earlier, partly due to the East Dubuque turnaround.
CVR Energy Stock Performance
CVR Energy stock traded down $7.21 during mid-day trading on Wednesday, reaching $41.39. The company had a trading volume of 8,488,713 shares, compared to its average volume of 1,161,237. The company has a quick ratio of 0.92, a current ratio of 1.42 and a debt-to-equity ratio of 2.38. CVR Energy has a 52 week low of $19.62 and a 52 week high of $63.51. The company has a 50 day moving average of $52.84 and a 200-day moving average of $35.88. The firm has a market cap of $4.16 billion, a price-to-earnings ratio of 60.96 and a beta of 0.85.
CVR Energy Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Monday, November 16th will be issued a $0.10 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $0.40 dividend on an annualized basis and a yield of 1.0%. CVR Energy’s dividend payout ratio is 58.82%.
More CVR Energy News
Here are the key news stories impacting CVR Energy this week:
- Positive Sentiment: Third-quarter earnings were $4.00 per share, above consensus estimates, while revenue rose 68.8% year over year to $3.28 billion. The earnings beat and sharp growth are positives for CVI. Article: CVR Energy Q3 Earnings and Revenues Beat Estimates
- Neutral Sentiment: CVR agreed to acquire Marathon Petroleum’s St. Paul Park and Mandan refineries in a deal valued at about $4.2 billion, a major expansion of its refining footprint that could offer growth opportunities but also brings significant execution and financing risks. CVR also announced a support agreement with Trafigura related to the acquisition. Article: CVR Energy makes major refining push with Marathon deal Article: Trafigura signs agreement to support acquisition
- Neutral Sentiment: CVR declared a quarterly dividend of $0.10 per share, payable November 23 to shareholders of record November 16. The payout provides a modest return but is unlikely to offset concerns about the transaction’s funding.
- Negative Sentiment: To help fund the refinery acquisition, CVR priced a public offering of 10.5 million shares at $47.55 each, with an underwriters’ option for up to another 1.58 million shares. The new shares dilute existing ownership, and the offering likely contributed to selling pressure despite the earnings beat. Article: CVR Energy Announces Pricing of Offering of Common Stock
Analyst Ratings Changes
A number of equities analysts have recently commented on CVI shares. Zacks Research upgraded CVR Energy from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 16th. Mizuho increased their target price on CVR Energy from $29.00 to $52.00 and gave the company an “underperform” rating in a research note on Thursday, October 8th. Wall Street Zen upgraded CVR Energy from a “buy” rating to a “strong-buy” rating in a research note on Saturday, October 10th. UBS Group raised their target price on CVR Energy from $35.00 to $53.00 and gave the company a “neutral” rating in a report on Friday, October 2nd. Finally, Weiss Ratings raised CVR Energy from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, CVR Energy has an average rating of “Reduce” and a consensus price target of $45.75.
Check Out Our Latest Analysis on CVR Energy
CVR Energy Company Profile
CVR Energy, Inc (NYSE:CVI) is a diversified energy company engaged primarily in petroleum refining and nitrogen fertilizer production. Through its refining operations, the company processes crude oil into transportation fuels and other refined products, including gasoline, diesel fuel, jet fuel and asphalt.
CVR Energy operates refineries in Coffeyville, Kansas, and Wynnewood, Oklahoma. The facilities primarily serve customers in the Midcontinent region of the United States and are supported by related logistics and distribution assets.
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