CVR Energy Provides Update to Potential Spin-Off of its Fertilizer Business, Remains Focused on Renewables Opportunities
June 13 2023 - 4:21PM
CVR Energy, Inc. (NYSE: CVI) (“CVR Energy”) announced today that it
has concluded its previously announced exploration of a potential
spin-off of its interests in its nitrogen fertilizer business,
which is indirectly owned by CVR Energy through the general and
limited partner interests it holds in CVR Partners, LP, a publicly
traded limited partnership (“CVR Partners”), and its board of
directors (the “Board”) has determined not to pursue the potential
spin-off at this time.
The decision to retain CVR Energy’s interests in
its nitrogen fertilizer business at this time was made following a
thorough review by the Board of the potential transaction and
current market conditions and in consideration of the best
interests of CVR Energy and its stockholders.
“Included within our exploration of a potential
spin-off was how to create pure-play refining and fertilizer
entities while still retaining the operational efficiencies both
CVR Energy and CVR Partners enjoy from our current model,” said
Dave Lamp, President and Chief Executive Officer of CVR
Energy. “Following thoughtful and careful analysis, the
Board concluded that the complexity of a transaction that could
accomplish both goals may not deliver the appropriate value under
current conditions. We will continue to explore ways to capitalize
on the unique assets of each of CVR Energy and CVR Partners,
particularly within the Coffeyville complex, including their
proximity to the farm belt, excess hydrogen capacity and existing
CO2 sequestration capabilities. In addition, the pre-treatment unit
at Wynnewood remains on-track for mechanical completion in late
3Q23 which we expect to enhance the renewables capture rate and
profitability.” Forward-Looking
StatementsThis news release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Statements concerning current estimates,
expectations and projections about future results, performance,
prospects, opportunities, plans, actions and events and other
statements, concerns, or matters that are not historical facts are
“forward-looking statements,” as that term is defined under the
federal securities laws. These forward-looking statements include,
but are not limited to, statements regarding the potential spin-off
of our nitrogen fertilizer business in the future or at all
including our exploration thereof and the complexity thereof, the
Board’s decision not to pursue a spin-off at this time, our
operational efficiencies and business model, uniqueness of our
asserts and our ability to capitalize thereupon, and our proximity
to the farm belt, excess hydrogen capacity and existing CO2
sequestration capabilities; completion of the Wynnewood
pre-treatment unit in late 3Q23 or at all and benefits thereof
including renewables capture rate enhancement and profitability.
You can generally identify forward-looking statements by our use of
forward-looking terminology such as “outlook,” “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “explore,”
“evaluate,” “intend,” “may,” “might,” “plan,” “potential,”
“predict,” “seek,” “should,” or “will,” or the negative thereof or
other variations thereon or comparable terminology. These
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond our
control. Investors are cautioned that various factors may affect
these forward-looking statements, including the risks associated
with the termination of our plan to explore separating our nitrogen
fertilizer business from CVR Energy’s refining and renewables
business. For additional discussion of risk factors which may
affect our results, please see the risk factors and other
disclosures included in our most recent Annual Report on Form 10-K,
any subsequently filed Quarterly Reports on Form 10-Q and our other
SEC filings. These and other risks may cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied herein.
Given these risks and uncertainties, you are cautioned not to place
undue reliance on such forward-looking statements. The
forward-looking statements included in this news release are made
only as of the date hereof. CVR Energy disclaims any intention or
obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except to the extent required by law.
About CVR Energy,
Inc.Headquartered in Sugar Land, Texas, CVR Energy, Inc.
is a diversified holding company primarily engaged in the renewable
fuels, petroleum refining and marketing business as well as in the
nitrogen fertilizer manufacturing business through its interest in
CVR Partners, LP. CVR Energy subsidiaries serve as the general
partner and own 37 percent of the common units of CVR Partners.
Investors and others should note that CVR Energy
may announce material information using SEC filings, press
releases, public conference calls, webcasts and the Investor
Relations page of its website. CVR Energy may use these channels to
distribute material information about the Company and to
communicate important information about the Company, corporate
initiatives and other matters. Information that CVR Energy posts on
its website could be deemed material; therefore, CVR Energy
encourages investors, the media, its customers, business partners
and others interested in the Company to review the information
posted on its website.
For further information, please contact:
Investor RelationsRichard Roberts
CVR Energy, Inc.(281) 207-3205InvestorRelations@CVREnergy.com
Media RelationsBrandee StephensCVR
Energy, Inc.(281) 207-3516MediaRelations@CVREnergy.com
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