Carl Icahn, along with affiliates IEP Energy Holding LLC and American Entertainment Properties Corp., increased their stake in CVR Partners, LP (NYSE: ), a $794 million market cap company, through 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 InvestingProthe company maintains an “EXCELLENT” financial health rating of 3.15 out of 5.
The purchases were made through indirect ownership, with the common units held by American Entertainment Properties Corp. The acquisition reflects Icahn’s continued interest in CVR Partners, a nitrogen fertilizer company. The company currently offers an attractive 6.3% dividend yield and appears undervalued on a fundamental basis InvestingProFair value analysis.
After these transactions, the total number of shares owned by the obligor increased, although the specific number of shares after the transaction was not disclosed in the filing. The announcement also highlighted the complex ownership structure of the entities involved, with Icahn companies (NASDAQ:) Holdings LP is a significant shareholder.
These transactions underscore Carl Icahn’s active role as a major investor in the company, leveraging his considerable influence through various holding companies.
In other recent news, CVR Partners disclosed executive compensation details in a regulatory filing. The new contract, effective Jan. 1, 2025, will increase CEO David L. Lamp’s base salary from $1.1 million to $1.2 million annually, with entitlement to an annual cash bonus and a long-term plan award incentive. The terms also include severance payments, except in 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 also released its financial results for the third quarter of 2024, reporting net sales of $125 million, net income of $4 million and EBITDA of $36 million. A distribution of $1.19 per common unit was declared, indicating strong operating performance with ammonia plant utilization reaching 97%.
Looking ahead, CVR Partners estimates that the ammonia utilization rate for the fourth quarter of 2024 will be between 92% and 97%. Direct operating costs are expected to be in the range of $60 million to $70 million, with total capital expenditures projected to be between $19 million and $23 million. Despite the unplanned outages at the upgrading units which affected the sales volume of UAN, the company saw an increase in the prices of ammonia and UAN.
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