Carl Icahn, along with affiliates IEP Energy Holding LLC and American Entertainment Properties Corp., have increased their stake in CVR Partners, LP (NYSE: ), a $794 million market cap company, and listed purchase of $535,706. The transactions, reported in the latest SEC, took place over several days in December, with unit prices ranging from $74.36 to $74.92. According to InvestingProthe company maintains a “GREAT” financial health score of 3.15 out of 5.
The purchase was made through indirect ownership, with common units held by American Entertainment Properties Corp. This acquisition reflects Icahn's continued interest in CVR Partners, a company involved in the production of nitrogen fertilizer products. The company currently offers an attractive 6.3% dividend yield and appears to be undervalued based on InvestingPro's fair value analysis.
Following this transaction, the total number of shares owned by the reporting entity increased, although the post-transaction share count was not disclosed in the filing. The disclosure also highlighted the complex nature of the ownership of the entities involved, with Icahn Enterprises (NASDAQ:) Holdings LP to be a significant participant.
These transactions emphasize Carl Icahn's active role as a major investor in the company, using his considerable influence in various holding companies.
In other recent news, CVR Partners disclosed executive compensation details in a regulatory filing. The new agreement, effective from January 1, 2025, will see executive chairman David L. Lamp increase his base salary from $1.1 million to $1.2 million annually, as well as eligibility for an annual cash bonus and a long-term incentive plan award. The conditions also include severance payments, preventing cases of dismissal for cause or resignation without due notice.
This employment agreement is part of a comprehensive 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 sales of $125 million, revenue of $4 million, and EBITDA of $36 million. An offer of $1.19 per unit was announced, indicating strong performance and ammonia plant utilization reaching 97%.
Looking ahead, CVR Partners estimates the ammonia utilization rate in the fourth quarter of 2024 to be between 92% and 97%. Direct operating costs are expected to range from $60 million to $70 million, with total capital expenditures estimated to be between $19 million and $23 million. Despite the unscheduled downtime in upgrading units affecting UAN sales volume, the company saw an increase in ammonia and UAN prices.
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