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Will CVR Refining Pay Distributions in 2017?

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Dividends likely in 2017?

CVR Refining (CVRR) has provided strong guidance of total crude oil throughput of 195,000–210,000 barrels per day for 1Q17.

In response to a question during the 4Q16 earnings call, Jack Lipinski, chief executive officer of CVR Refining, said, “But yes, short answer is, margins are only $12 right now, group cracks. I would hope that they would improve somewhat. But given the fact that RINs price—RINs expenses will be down if margins hold up a little bit, I can’t say for sure, but it looks to me like we’ll be back to dividends again this year.”

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Analyst recommendations for CVRR

Nearly 70% of analysts have rated CVR Refining (CVRR) as a “hold,” 20% rated it as a “buy,” and 10% rated CVRR as a “sell.” The median target price for the stock for the next year is $10.50. This implies a 7% downside over the next year from its current price of $11.25.

The above graph shows the changes in analyst recommendations for CVR Refining in recent months.

As for CVRR’s peers, 75% of the surveyed analysts rated Alon USA Partners (ALDW) as a “hold,” 25% rated it a “buy,” and 25% of the surveyed analysts rated Calumet Specialty Products Partners (CLMT) as a “sell.”

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