The Best Company to Own Right Now – CVR Refining LP (CVRR): CVR Energy, Inc. (CVI), Icahn Enterprises LP (IEP)

Page 1 of 2

CVR Energy, Inc. (NYSE: CVI)It is very rare to find a company with high growth and a high dividend. One company that recently went public has both of these traits. After releasing its first earnings report, it is clear that this is a stock everyone should own.

Overview of the Company

CVR Refining LP (NYSE:CVRR), as their name clearly states, is a petroleum refiner in the United States. They make money by buying crude oil and selling the refined products, mainly gasoline and diesel. They are strategically located in the central United States, giving them access to cheap mid-continent local and Canadian crude oils.

Fourth Quarter 2012 Results

CVR Refining LP (NYSE:CVRR)’s fourth quarter was strong and gave insight into how this company is growing. Here’s a summary of how CVR Refining LP (NYSE:CVRR) did in the fourth quarter of 2011:

Net income fell to $54.6 million from $77.5 million
Net sales increased 85.4% to $1.8162 billion
Adjusted EBITDA increased 342.9% to $196.2 million
Operating income increased to $120.4 million from a loss of $11.8 million

Full Year 2012 Results

Investors could not have asked for a better year than the one CVR Refining had in 2012. Here are some of the key statistics:

Net income increased 23.9% to $595.3 million
Net sales increased 74.3% to $8.2817 billion
Adjusted EBITDA increased 103.7% to $1.1762 billion
Operating income increased 117.6% to $993.9 million

The strength in 2012 came from “strong crack spreads, access to price-advantaged crudes, and high operating throughputs,” as stated by management. As free cash flow rises, they will be able to expand operations to increase output and obtain a higher market share. Any doubts people had should be all gone after seeing this report.

Massive Distribution

When CVR Refining LP (NYSE:CVRR) Refining went public in January, they had anticipated paying out $4.72 in dividends for the year. This would have represented a yield of about 18.8%. However, due to stronger financials, they have increased their distribution expectations to between $5.50 and $6.50 for the year. From the IPO price, this would make the stock yield around 22% to 26%.

Management stated, “We expect 2013 to be a rewarding year for the company and its unitholders.” This company is clearly dedicated to returning value to its investors.

Going Forward

For the full year of 2013, analysts currently project earnings to increase 28.3% to $6.31 per share. After the recent blowout quarter, I believe these estimates are much too low and will soon be increased. Sometimes it takes a quarter after going public to get analysts to take a deeper look at a company.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!