CVR Energy Q3 Sales Nearly Double Consensus as Record Crack Spreads Drive Best Quarter Ever
CVI has more than doubled off its 52-week low of $19.62.
Summary
CVR Energy posted Q3 sales of $3.28 billion against a $2.29 billion consensus and adjusted EPS of $4 versus $2.43 expected. Management called it the best quarterly result in company history, driven by record crack spreads and strong operations. A $253 million liability came off the balance sheet after the EPA granted a full waiver for the Wynnewood refinery, a real balance-sheet improvement on top of the earnings beat. The nitrogen fertilizer segment was the weak spot: a planned turnaround at East Dubuque cut into results. Guidance points to Q4 petroleum throughput of 210,000-225,000 bpd at 95%-100% crude utilization, with ammonia utilization of 88%-93%. This lands alongside the separately announced $4.2 billion purchase of Marathon Petroleum's St. Paul Park and Mandan refineries, so the beat plus the EPA waiver strengthen the case for the deal. Note the sell-side is still bearish: the average rating is 'sell' and the median price target of $47 sits below the current price.
At the time of this announcement, CVI was trading at $58.49 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $19.62 to $63.51. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.