CVR Energy Inc. (CVI) has declared a special $5.50 per-share dividend and also unveiled plans to initiate a per-share quarterly dividend of 75 cents. The special dividend is payable Feb. 19 to shareholders of record on Feb. 5. CVR Energy will begin paying the quarterly dividend of 75 cents a share in the second quarter.
The special dividend will have a 9.57% dividend yield. The quarterly dividend will have an annualized 5.22%.
CVR Energy Inc. (CVI) has an equity summary score of 9.7 out of 10 for a VERY Bullish outlook. CVI is projected to produce $6.62 in earnings in 2013. Based on a PE of 12, the 12-month price target is $79.
CVR Energy noted it expects cash flows of $700 million for 2013 from its interests in CVR Refining LP (CVRR) and CVR Partners LP (UAN) , and based on this its board has declared the quarterly dividend.
CVR Energy owns a majority interest in CVR Partners (UAN), a nitrogen fertilizer master limited partnership. It also recently currently holds a stake of about 84% in CVR Refining (CVRR), a newly formed master limited partnership that will distribute all of its available cash each quarter.
CVR Energy said estimated cash distributions for 2013 from CVR Refining (CVRR) are about $700 million. Under the current ownership structure, the new unit holders of CVR Refining (CVRR) would collectively receive about $115 million, generating an annualized yield of roughly 19% and CVR Energy would receive about $585 million, for the year ending Dec. 31.
Headquartered in Sugar Land, Texas, CVR ENERGY is an independent refiner and marketer of high value transportation fuels and, through a limited partnership, a producer of ammonia and urea ammonia nitrate fertilizers.
CVR Energy’s petroleum business includes full-coking sour crude refinery in Coffeyville, Kan. In addition, CVR Energy’s supporting businesses include a crude oil gathering system serving central Kansas, northern Oklahoma and southwest Nebraska; storage and terminal facilities for asphalt and refined fuels in Phillipsburg, Kan.; and a rack marketing division supplying product to customers through tanker trucks and at throughput terminals.