Carl Icahn, along with its affiliated entities IEP Energy Holding LLC and American Entertainment Properties Corp., has increased its stake in CVR Partners, LP (NYSE:), a company with a market cap of $794 million, with a series of purchases totaling $535,706. The transactions, disclosed in a recent SEC filing, took place over several days in December, with unit prices ranging from $74.36 to $74.92. according to InvestingProThe company maintains an “outstanding” financial health score of 3.15 out of 5.
The purchases were made through indirect ownership, with American Entertainment Properties Corp. owning the condominium units. This acquisition reflects Icahn's continued interest in CVR Partners, a manufacturer of nitrogen fertilizer products. The company currently offers an attractive dividend yield of 6.3% and appears to be undervalued accordingly InvestingProFair value analysis.
Following these transactions, the total number of shares held by the reporting entities increased, although the specific number of shares held after the transaction was not disclosed in the filing. The disclosure also highlighted the complex ownership structure of the entities involved Icahn companies (NASDAQ:) Holdings LP is a major shareholder.
These transactions underscore Carl Icahn's active role as a major investor in the company, leveraging his significant influence through several holding companies.
In other recent news, CVR Partners disclosed executive compensation details in a regulatory filing. The new agreement, effective January 1, 2025, will see CEO David L. Lamb'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, except in cases of dismissal for cause or resignation without proper notice.
This employment agreement is part of a broader master services agreement between CVR Partners and its parent company CVR Energy (NYSE:). The company also released its third-quarter 2024 financial results, reporting net sales of $125 million, net income of $4 million, and EBITDA of $36 million. A distribution of $1.19 per shared unit was announced, indicating strong operational performance as the ammonia plant’s utilization rate reached 97%.
Looking ahead, CVR Partners estimates the ammonia utilization rate for the fourth quarter of 2024 at between 92% and 97%. Direct operating expenses are expected to range from $60 million to $70 million, and total capital spending is expected to range from $19 million to $23 million. Despite the unplanned discontinuation of upgrade units impacting UAN sales volumes, the company saw an increase in ammonia and UAN prices.
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