CVR Energy to Buy Two Marathon Refineries for $4.2B, Sees EPS Accretion Over 105%
CVI has more than doubled off its 52-week low of $19.62.
Summary
CVR Energy signed a definitive agreement to buy Marathon Petroleum's St. Paul Park, Minnesota and Mandan, North Dakota refineries plus the related marketing business for about $4.2 billion plus net working capital. The assets generated roughly $1.2 billion of EBITDA on a trailing twelve-month basis through September 30, 2026, and would have lifted CVR's nine-month EBITDA from about $900 million to about $2.0 billion pro forma. Pro forma EPS for that period would have jumped from $3.73 to $7.67, accretion of over 105%, before roughly $70 million of expected annual run-rate synergies. The deal nearly doubles crude throughput from about 207,000 to about 384,000 barrels per day and adds up to 590 branded marketing locations. Financing is $2.5 billion of committed secured debt, a $500 million equity commitment from the controlling shareholder, an $800 million equity investment from Trafigura, and cash on hand; existing 2028 notes get redeemed and the 2031 and 2034 notes become secured. This follows the Dow Jones report earlier today that a deal over $4 billion was near. Closing is expected by end of 2026 subject to HSR clearance, and the 10 a.m. ET earnings call today will cover the transaction.
At the time of this announcement, CVI was trading at $54.00 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 9 out of 10. Source: BusinessWire.