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
blog comments powered by Disqus
Insider Monkey Headlines
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

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!