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Will CVR Refining Pay Distributions in 2017?



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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