Carl Icahn, along with affiliated entities IEP Energy Holding LLC and American Entertainment Properties Corp., has increased their stake in CVR Partners, LP (NYSE:), a $794 million market cap company, with a series of purchases totaling $535,706. The transactions, disclosed in a recent SEC filing, occurred over several days in December, with unit prices ranging from $74.36 to $74.92. According to InvestingPro, the company maintains a “GREAT” financial health score of 3.15 out of 5.
The purchases were made through indirect ownership, with the common units being held by American Entertainment Properties Corp. This acquisition reflects Icahn’s continued interest in CVR Partners, a company engaged in the production of nitrogen fertilizer products. The company currently offers an attractive 6.3% dividend yield and appears undervalued based on InvestingPro’s Fair Value analysis.
Following these transactions, the total number of shares owned by the reporting entities increased, although the specific post-transaction share count was not disclosed in the filing. The disclosure also highlighted the complex ownership structure of the entities involved, with Icahn Enterprises (NASDAQ:) Holdings L.P. being a significant stakeholder.
These transactions underscore Carl Icahn’s active role as a major investor in the company, leveraging his substantial influence through various holding companies.
In other recent news, CVR Partners has disclosed executive compensation details in a regulatory filing. The new agreement, effective from January 1, 2025, will see the executive chairman David L. Lamp’s base salary increase from $1.1 million to $1.2 million annually, with eligibility for an annual cash bonus and a long-term incentive plan award. The terms also include severance payments, barring cases of dismissal for cause or resignation without proper notice.
This employment agreement is part of a broader corporate master services agreement between CVR Partners and its parent company, CVR Energy (NYSE:). The company has also released its third quarter financial results for 2024, reporting net sales of $125 million, a net income of $4 million, and EBITDA of $36 million. A distribution of $1.19 per common unit was declared, indicating a strong operational performance with ammonia plant utilization reaching 97%.
Looking forward, CVR Partners estimates the ammonia utilization rate for the fourth quarter of 2024 to be between 92% and 97%. Direct operating expenses are expected to range from $60 million to $70 million, with total capital spending projected to be between $19 million and $23 million. Despite unplanned downtime at the upgrading units impacting UAN sales volumes, the company saw an increase in ammonia and UAN prices.
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