Renowned investor Carl Icahn (Trades, Portfolio) has expanded his investment in CVR Energy (CVI, Financial), according to a recent regulatory filing. The billionaire acquired an additional 128,800 shares of the company's common stock. This increase in stake was completed through an option exercise, accumulating to a total transaction value of $2.3 million.
The move underscores Icahn's continued interest and confidence in CVR Energy's potential. As a prominent figure in the investment world, Icahn's strategic acquisitions often draw significant attention from market participants and analysts, potentially influencing the stock's future performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for CVR Energy Inc (CVI, Financial) is $18.75 with a high estimate of $21.00 and a low estimate of $16.00. The average target implies an upside of 4.87% from the current price of $17.88. More detailed estimate data can be found on the CVR Energy Inc (CVI) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, CVR Energy Inc's (CVI, Financial) average brokerage recommendation is currently 3.4, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CVR Energy Inc (CVI, Financial) in one year is $22.16, suggesting a upside of 23.94% from the current price of $17.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CVR Energy Inc (CVI) Summary page.
CVI Key Business Developments
Release Date: February 19, 2025
- Full Year 2024 Net Income: $45 million.
- Full Year 2024 EBITDA: $394 million.
- Fourth Quarter 2024 Net Income: $40 million.
- Fourth Quarter 2024 EBITDA: $122 million.
- Petroleum Segment EBITDA (Full Year 2024): $223 million.
- Fertilizer Segment EBITDA (Full Year 2024): $179 million.
- Renewable Segment EBITDA (Full Year 2024): $3 million.
- Fourth Quarter 2024 Earnings Per Share: $0.28.
- Adjusted EBITDA (Fourth Quarter 2024): $67 million.
- Adjusted Loss Per Share (Fourth Quarter 2024): $0.13.
- Cash Flow from Operations (Fourth Quarter 2024): $98 million.
- Free Cash Flow (Fourth Quarter 2024): $40 million.
- Consolidated Cash Balance (End of Fourth Quarter 2024): $987 million.
- Total Liquidity (End of Fourth Quarter 2024): Approximately $1.1 billion.
- Fourth Quarter 2024 Direct Operating Expenses (Petroleum Segment): $5.13 per barrel.
- Fourth Quarter 2024 Adjusted EBITDA (Renewable Segment): $9 million.
- Fourth Quarter 2024 Adjusted EBITDA (Fertilizer Segment): $50 million.
- Fourth Quarter 2024 Distribution Declared by CVR Partners: $1.75 per common unit.
- Capital Spending (Full Year 2024): $181 million.
- Turnaround Spending (Full Year 2024): $58 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CVR Energy Inc (CVI, Financial) reported a consolidated net income of $45 million and an EBITDA of $394 million for the full year of 2024.
- The fertilizer segment showed strong performance with an adjusted EBITDA of $50 million for the fourth quarter, driven by increased ammonia sales prices and lower feedstock costs.
- The renewable segment saw a significant improvement with an adjusted EBITDA of $9 million for the fourth quarter, compared to a negative $17 million in the same period last year.
- CVR Energy Inc (CVI) increased its liquidity significantly by generating $318 million from a term loan issuance and $90 million from the sale of its interest in the Midway pipeline.
- The company is optimistic about potential improvements in refining market conditions in 2025 due to expected supply rationalization and increased demand.
Negative Points
- The petroleum segment faced challenges with lower crack spreads, resulting in an adjusted EBITDA of only $9 million for the fourth quarter.
- The renewable diesel unit's capacity was reduced to 80 million gallons per year due to catalyst limitations, impacting production efficiency.
- CVR Energy Inc (CVI) is facing uncertainty in the renewable segment due to reliance on government subsidies, which are politically driven and unpredictable.
- The planned turnaround at Coffeyville is expected to extend by 10 to 15 days and increase costs by $10 million to $15 million due to unforeseen circumstances.
- The company is dealing with increased direct operating expenses in the petroleum segment, rising to $5.13 per barrel in the fourth quarter from $4.69 per barrel in the previous year.
