24/7 Wall St. » CVI

CVR Energy: Refining Down, Fertilizer Up (CVI)

247wallst — Thu, 06 Nov 2008 09:26:32 +0000

Before the market opened this morning, CVR Energy (NYSE:CVI) released is third quarter earnings. EPS reached $1.16 and revenues totaled $1.58 billion. Analysts expected EPS of $0.75 on revenues of $1.04 billion, so CVR really blew out the doors. Shares are surging pre-market.

But back in June, CVR killed its plan to spin off its fertilizerbusiness as a master limited partnership. In August, stockholderskilled a plan to offer an additional 10 million shares in a secondaryoffering. Yesterday, CVR withdrew plans for a $125 million offering ofconvertible senior notes.

Operating income from CVR’s petroleum refining business was $20.2million in the quarter, compared with $46.5 million from the fertilizerbusiness. The company sees refining as a drag on its overallprofitability, but it can’t seem to find a way to get rid of it.

The company has only around $60 million in cash on hand, even thoughcash flow from operations in third quarter reached $81.5 million. Thatwas enough to cover $42.2 million of investments and financing, but thecompany can’t keep spending at that rate unless it can borrow orincrease its cash flow. Either case may be difficult going forward.

Regardless, shares are treating this as a win. Volume is thin but the stock is up 20% at $6.00 pre-market.

Paul Ausick
November 6, 2008

Posted in Earnings, Oil & Gas Tagged: CVI

52-Week Low Club (CCJ, CVI, EIX, MDR, SSRI, ZINC)

247wallst — Fri, 15 Aug 2008 14:35:00 +0000

The drop in commodities isn’t good for everyone apparently. Many metals stocks are on the list today, as are others. Here is a partial list of some semi-active stocks hitting 52-week lows today:

Cameco (NYSE: CCJ) continued uranium weakness after its Cigar Lake troubles persist… and persist… and persist…
CVR Energy (NYSE: CVI)… energy and fertilizer, recent IPO, so long for the fun times; becoming one of the worse performing post-IPO’s over the last year.

Edison International (NYSE: EIX)… becoming habitual to see power generation companies
McDermott (NYSE: MDR) after naming new CEO; stock back above lows but hit new 52-week lows this morning.
Silver Standard Resources Inc. (NASDAQ: SSRI), one of the many speculative metals plays on the list
Horsehead Holdings (NASDAQ: ZINC), again… it’s hard not to give this one at least two nicknames.

Jon C. Ogg
August 15, 2008

52-Week Low Club (AUO, CVI, DIET, ENTR, FDP, GLBL, OIIM, PCCC, SNE, TNC, TRID, ZRAN)

247wallst — Tue, 29 Jul 2008 14:35:00 +0000

Today’s list of stocks is somewhat void of financial stocks, yet many of these you’ll recognize. Here are today’s 52-week lows:

AU Optronics Corp. (NYSE: AUO) stock rose over prior lows but still looking weak after continued weakness.
CVR Energy, Inc. (NYSE: CVI) yet again.
eDiets.com (NASDAQ: DIET) preliminary earnings showing economics win over the need to lose weight and live healthy.
Entropic Communications (NASDAQ: ENTR) downgraded at Piper Jaffray a week ahead of earnings.
Fresh Del Monte Produce Inc. (NYSE: FDP) down 14% after earnings miss.
Global Industries Ltd. (NASDAQ: GLBL)…….. offshore oil & gas on lows?
O2Micro International Ltd. (NASDAQ: OIIM) down another 8%; now down over 2/3 from highs.
PC Connection Inc. (NASDAQ: PCCC) profit fell 12% and sees revenue flat in Q3; direct PC/IT marketing must not work for all.
Sony Corp. (NYSE: SNE) dismal earnings got them to 52-week lows.
Tennant Co. (NYSE: TNC) profit drop, weak guidance.. wow, even in cleaning solutions get weak.
Trident Microsystems Inc. (NASDAQ: TRID) disappointing earnings and at least 2 downgrades; shares down 26% late; now down 80% from highs.
Zoran Corp. (NASDAQ: ZRAN) weak outlook and five downgrades… chips are used in DVD players, home theater systems and other electronics, cited economic weakness and a slowdown in consumer spending. Go figure.

The market may have risen huge today, but that doesn’t mean there aren’t many losers when the economy is still in the tank.

Jon C. Ogg
July 29, 2008

52-Week Low Club (AEG, AMD, BKD, CHRT, CMG, CVI, GEHL, JOBS, LRCX, LSCC, MNI, MU, MSA, NOOF, RYL, THQI, VMED, WSM)

247wallst — Mon, 28 Jul 2008 14:54:04 +0000

Today was another ugly day on Wall Street as sellers are winning over the conviction that the rumors that the bear was dead might be grossly exaggerated. You’ll probably recognize many chip stocks on here today. While financials led the selling today, most financial stocks were not on 52-week lows. Here are today’s stocks that hit new 52-week lows:

Aegon (NYSE: AEG)
Advanced Micro Devices (NYSE: AMD)
Brookdale Senior Living (NYSE: BKD)
Chartered Semiconductor (NASDAQ: CHRT)
Chipotle Mexicann Grill (NYSE: CMG)
CVR Energy (NYSE: CVI)
Gehl Company (NASDAQ: GEHL)
51Job inc.. (NASDAQ: JOBS)
Lam Research (NASDAQ: LRCX)
Lattice Semiconductor (NASDAQ: LSCC)
McClatchy (NYSE: MNI)
Micron Tech (NYSE: MU)
Mine Safety Appliances (NYSE: MSA)
New Frontier (NASDAQ: NOOF)
Ryland Group (NYSE: RYL)
THQ Inc. (NASDAQ: THQI)
Virgin Media Inc. (NASDAQ: VMED)
William Sonoma (NYSE: WSM)

Jon C. Ogg
July 28, 2008

Energy Spin-Offs Still Outstanding (ETR, CVI)

247wallst — Mon, 19 May 2008 09:31:24 +0000

Last week, we noted in "Trouble Brewing in Oil & Gas MLP Land" that many MLP spin-offs had either not been coming public since their IPO filing dates, but there are more deals that are still either gone or still pending that would seem to be easy IPO’s in the current climate. Entergy (NYSE:ETR) and CVR Energy Inc. (NYSE:CVI) are two more that have pending deals, and others are canceled or pending.

Proposed MLP IPO’s are not the only ones that have either been withdrawn or are still pending. Forum Oilfield Technologies filed for an IPO in October 2007, but withdrew the filing on the same day that Plains pulled its proposed IPO. Forum cited "market conditions" as its reason from withdrawing.

Entergy (NYSE:ETR) announced a plan to spin-off its nuclear generating facilities in November 2007. Entergy has announced names and logos for the new company, Enexus Energy Corp, and for the nuclear operating company that Entergy and Enexus will create, EquaGen L.L.C. This one is still likely to happen, despite the silly names.

CVR Energy Inc. (NYSE:CVI) announced plans in February to spin off an MLP to own and operate its nitrogen fertilizer plant and other projects. CVR Energy reports first quarter earnings after market close today. We also covered this one much more in-depth in our Special Situation newsletter. The company told us in a telephone call that the spin-off IPO is still pending, but that was also before the company warned on results.

The failure, or slow pace, of IPOs even affected the hot renewable market. Renewable Energy Group filed for an IPO in July 2007, and withdrew its offering in March.

Oil is north of $120.00 per barrel. Energy IPOs, whether for MLPs or not, are having a tough time. A logic class would surmise that investors don’t want to catch the top-tick in what may be an unproven entity after a monumental run.

You can join our open email distribution list to hear about other IPO’s, secondaries, financings, spin-offs, and mergers.

Paul Ausick
May 19, 2008

CVR To Spin-Off Fertilizer Partners LP Unit in IPO (CVE, CVI)

247wallst — Thu, 28 Feb 2008 08:32:33 +0000

CVR Partners, LP has filed to come public via an initial public offering, and it will have the proposed ticker of "CVE" on the NYSE. The prospectus calls for a sale of 5.25 million units, and that is before a 787,500 unit overallotment.

CVR partners is a limited partnership formed by CVR Energy, Inc. to own and operate a nitrogen fertilizer facility and develop a diversified portfolio of assets that are complementary to its business and CVR Energy’s refining business. Its nitrogen fertilizer business produces ammonia and urea ammonia nitrate fertilizers.

This is a spin-off of CVR Energy, Inc. (NYSE: CVI), which it is reliant upon for management and for many key areas of operation. Upon the closing of this offering, CVR Energy will indirectly own approximately 87% of the outstanding units.

The company generated net sales and operating income of $173.5 million and $71.0 million for 2005, $170.0 million and $43 million for 2006, and $187.4 million and $48 million for 2007.

Jon C. Ogg
February 28, 2008