SUNNY ISLES BEACH, FL—Carl Icahn, through IEP Energy Holding LLC, has increased his stake in CVR Partners, LP (NYSE:UAN) by acquiring common units valued at approximately $1.8 million. The transactions occurred over three days, from November 22 to November 26, 2024.
The purchases were made at prices ranging from $70.72 to $72.36 per share. Following these transactions, Icahn's holdings in CVR Partners have increased to 141,844 shares.
These acquisitions reflect Icahn's continued interest in CVR Partners, a company known for its involvement in the agriculture chemicals industry. The transactions were disclosed in a recent SEC filing, detailing the changes in beneficial ownership of securities.
In other recent news, CVR Partners, a leading producer of nitrogen fertilizer products, has disclosed its Q3 2024 financial results. The company reported net sales of $125 million, net income of $4 million, and EBITDA of $36 million. Additionally, a third-quarter distribution of $1.19 per common unit was declared, demonstrating the company's stable business model despite market fluctuations. The company also noted a robust operational performance with consolidated ammonia plant utilization at 97%.
Amid these recent developments, CVR Partners also experienced some unplanned downtime at the upgrading units, impacting UAN sales volumes. However, the company remains optimistic due to the strong demand and rising prices for ammonia and UAN. The company's outlook for Q4 2024 estimates an ammonia utilization rate between 92% and 97%, with direct operating expenses projected to be between $60 million and $70 million. Total (EPA:TTEF) capital spending for Q4 2024 is expected to be between $19 million and $23 million. Despite potential geopolitical risks, CVR Partners continues to demonstrate commitment to long-term operational efficiency and market responsiveness.
InvestingPro Insights
Carl Icahn's recent investment in CVR Partners aligns with several positive indicators highlighted by InvestingPro. The company's high shareholder yield and significant dividend payments, as noted in InvestingPro Tips, may have attracted Icahn's attention. CVR Partners boasts a dividend yield of 6.77%, which is particularly noteworthy in the current market environment.
The company's valuation metrics also paint an interesting picture. With a P/E ratio of 14.17 and a price-to-book ratio of 2.58, CVR Partners appears to be reasonably valued, especially considering its strong free cash flow yield mentioned in the InvestingPro Tips. This could suggest that Icahn sees potential for value creation in the company.
Despite a 29.88% decline in revenue over the last twelve months, CVR Partners has maintained profitability, as indicated by one of the InvestingPro Tips. The company's operating income margin stands at 15.69%, demonstrating its ability to generate profits even in challenging market conditions.
Investors interested in a deeper analysis of CVR Partners can access 7 additional InvestingPro Tips, providing a more comprehensive view of the company's financial health and market position.
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