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

Published on March 15, 2013 at 5:30 pm by The Motley Fool in News

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CVR Energy and Carl Icahn

CVR Refining LP (NYSE:CVRR) Refining was split off from CVR Energy, Inc. (NYSE:CVI), and this was made possible by Carl Icahn’s Icahn Enterprises LP (NASDAQ:IEP). CVR Energy, Inc. (NYSE:CVI) is a holding company that is involved in petroleum refining and nitrogen fertilizer manufacturing. They own two limited partnerships: CVR Refining LP (NYSE:CVRR) Partners, which owns and operates the nitrogen fertilizer manufacturing business, and CVR Refining, which owns the refining business, as mentioned before. As a whole, CVR Energy reported record earnings for 2012 and is only getting stronger.

Icahn Enterprises LP (NASDAQ:IEP) noticed the value in CVR Energy, Inc. (NYSE:CVI) before anyone else. As a company it was solid, but Icahn knew that by splitting off the refining unit, it would unlock more value. Therefore, in early 2012, Icahn Enterprises LP (NASDAQ:IEP) began buying up the stock with an activist strategy, gaining a 14.5% stake and then trying to discuss his ideas with managers. CVR Energy, Inc. (NYSE:CVI)’s management fought back against the idea, but eventually gave in and let Icahn build an 82% ownership stake. By building a majority stake, Icahn Enterprises LP (NASDAQ:IEP) was then able to split off CVR Refining in January of 2013, as well as offer a special dividend and increase the annual dividend of CVR Energy, Inc. (NYSE:CVI). Since Icahn got involved, CVR Energy’s stock has risen well over 100%.

The Foolish Bottom Line

The growth and high yield of CVR Refining LP (NYSE:CVRR) make it an incredible play in the energy bull market. Carl Icahn Enterprises LP (NASDAQ:IEP)’s control will ensure that this company continues to impress and return maximum value to shareholders. After reporting earnings, the stock hit its 52 week high, so wait for it to come down a bit before starting a position. This is a great long term investment to make as soon as possible.