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CVR Refining Stock Up 7% in After-Hours Trading

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CVR Refining’s Q3 earnings

CVR Refining (CVRR) reported its third-quarter results on October 24 after the markets closed. The stock rose 7.2% in after-hours trading yesterday. CVR Refining’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose to $221 million compared to $139 million in Q3 2017. The refiner’s performance was driven by strong crack spreads, wider crude oil differentials, and lower RIN (renewable identification number) costs during the quarter.

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CVRR’s distributions

CVR Refining’s available cash for distribution for the quarter was $133 million compared to $97 million in Q2 and $139 million in Q3 2017. The company announced a distribution of 90 cents per unit for the quarter. The above chart shows how CVR Refining’s available cash for distribution and per unit distributions trended over three years. CVR Refining is a variable distribution MLP.

CVR Energy’s Q3 results

CVR Energy (CVI), which holds 81% of CVR Refining’s common units, reported adjusted EBITDA of $172 million for Q3 2018. Its adjusted EBITDA for the year-ago quarter was $91 million. CVR Energy declared a dividend of 75 cents per share for Q3.

CVR Refining contributed $176 million to CVR Energy’s Q3 operating income. CVR Energy’s nitrogen fertilizer business, CVR Partners (UAN), contributed $3 million to its operating income.

Calumet Specialty Products Partners (CLMT) is expected to release its Q3 results in the third week of November. Let’s next take a look at CVR Refining’s throughput volumes and refining margins in Q3.

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