CVR Energy expands board with two new directors

In a recent SEC filing, CVR Energy Inc . (NYSE:CVI) announced the appointment of Robert E. Flint and Colin Kwak to its Board of Directors, effective March 31, 2025. The appointments come as the company’s stock trades near its 52-week low of $15.60, having declined over 50% in the past year according to InvestingPro data. Flint has also been named the Chairperson of the Board and a member of the Special Committee, while Kwak joins the Compensation Committee and the Nominating and Corporate Governance Committee.

Both Flint and Kwak are associated with Icahn Enterprises L.P. (NASDAQ:IEP), which indirectly controls CVR Energy and holds approximately 68% of its outstanding common stock. Their appointments are a direct result of their roles at IEP, which is under the control of billionaire investor Carl C. Icahn.

The company clarified that Flint and Kwak are not involved in any reportable transactions that could present a conflict of interest. They will not receive additional compensation for their board service while employed by IEP. Furthermore, they will be covered under the company’s standard indemnification agreement, which protects directors against certain liabilities and allows for the advancement of expenses related to their board duties. Despite recent market challenges, the company maintains a strong dividend program, with a current yield of approximately 20% and a 12-year track record of consistent payments.

The appointments coincide with the resignation of Ted Papapostolou from the Board and its various committees due to personal reasons, not related to any disagreements with the company’s operations or practices. Following Papapostolou’s departure, the Board has increased its size from seven to eight directors.

This executive shuffle comes at a time when CVR Energy, a petroleum refining company based in Sugar Land, Texas, continues to navigate the complex energy market. The changes in the board’s composition reflect the company’s ongoing strategic alignment with its majority shareholder.

The information for this report is based on a press release statement filed with the SEC.

In other recent news, CVR Energy’s fourth-quarter earnings exceeded analysts’ expectations, reporting a narrower adjusted loss per share of $0.13 compared to the anticipated $0.42. The company also achieved a revenue of $1.95 billion, slightly surpassing the $1.93 billion forecast. Despite a year-over-year decline in net income, CVR Energy’s performance in the last quarter displayed resilience with a net income of $28 million. UBS analysts maintained a Neutral rating on CVR Energy, highlighting expected first-quarter challenges due to a significant maintenance event at the Coffeyville Refinery. This planned downtime is expected to result in a $12 million EBITDA loss, diverging from the street’s projection of a $21 million profit. Mizuho (NYSE:MFG) Securities also adjusted its price target for CVR Energy, raising it from $20 to $21, while maintaining a Neutral stance due to anticipated operational disruptions affecting earnings. Additionally, CVR Energy reported a $408 million increase in liquidity through a Term Loan and the sale of a 50% stake in Midway Pipeline. The company’s proactive financial measures and strategic transactions have contributed to positive investor sentiment following the earnings release.

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