Carl Icahn increases stake in CVR Energy with $5.3 million purchase

SUNNY ISLES BEACH, FL—Carl C. Icahn, a prominent investor and ten percent owner in CVR Energy Inc . (NYSE:CVI), has increased his stake in the company through a series of stock purchases totaling approximately $5.3 million. The transactions were disclosed in a recent SEC filing. The company, currently valued at $1.82 billion, shows a FAIR financial health rating according to InvestingPro analysis.

Between March 10 and March 12, Icahn acquired a total of 295,221 shares of CVR Energy common stock. The purchase prices ranged from $18.01 to $18.15 per share. These acquisitions have increased Icahn’s total holdings in the company to 68,446,293 shares. The company stands out for its impressive 19.48% dividend yield and has maintained dividend payments for 12 consecutive years.

The shares were acquired indirectly, as noted in the filing, with ownership linked to various entities under Icahn’s control, including Icahn Enterprises (NASDAQ:IEP) Holdings L.P. and Icahn Enterprises G.P. Inc. The filing also clarifies that Icahn Enterprises, along with its subsidiaries, disclaims beneficial ownership of the shares except to the extent of their pecuniary interest.

This move by Icahn, known for his activist investment strategies, may signal confidence in CVR Energy’s future prospects. Investors will be watching closely to see if this increased stake will influence the company’s strategic direction.

In other recent news, CVR Energy Inc. reported a better-than-expected fourth-quarter earnings performance for 2024, with an adjusted loss per share of $0.13, surpassing the forecasted loss of $0.42. The company generated $1.95 billion in revenue, slightly exceeding the consensus estimate of $1.93 billion. Despite a year-over-year decline in net income, CVR Energy achieved a net income of $28 million for the quarter. The company’s petroleum segment showed resilience, with a throughput of 214,000 barrels per day and a crude utilization rate of 94%. CVR Energy’s renewables segment improved, processing 17 million gallons of vegetable oil feedstock and achieving a positive adjusted EBITDA. Analysts at Scotiabank (TSX:BNS) noted the strong refining operations and income tax benefits that offset pre-tax income, but highlighted a weaker-than-expected first-quarter outlook for 2025. Additionally, CVR Energy increased its liquidity by $408 million through a Term Loan and the sale of a 50% stake in Midway Pipeline. The company declared a cumulative cash dividend of $1.00 per share for 2024, and plans for geographical diversification and potential expansion westward remain in focus.

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