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Why CVR Rose 24% and Alon USA Fell 22% on September 16

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Rise and fall

On September 16, 2016, CVR Refining (CVRR) closed 24% higher than its previous close. On the other hand, another MLP in the refining space, Alon USA Partners (ALDW), fell 22% the same day. In comparison, Calumet Specialty Products Partners (CLMT) and the Alerian MLP ETF (AMLP) closed 2.6% down and 0.3% up, respectively.

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Smoke without fire?

CVR Refining’s huge rise and Alon USA Partners’ fall weren’t supported by any specific news directly from the companies themselves. As a result, investors speculated about the possible reasons behind the movements.

As the above graph shows, CVR Refining has returned nearly 90% since the beginning of August. On the other hand, Alon USA Partners’ returns during this period were -9% with the fall on September 16.

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