Carl Icahn, a well-known investor, has recently increased his stake in CVR Partners, LP (NYSE:UAN) through a series of transactions. According to a recent SEC filing, Icahn purchased a total of 11,589 common units over three days, from December 18 to December 20, 2024. The units were acquired at prices ranging from $73.99 to $74.55 per share, amounting to a total investment of $860,177. InvestingPro analysis shows the company currently offers a substantial 6.5% dividend yield and maintains a "GREAT" overall financial health score, with seven key ProTips available to subscribers.
The transactions were made indirectly through entities associated with Icahn, including American Entertainment Properties Corp. and IEP Energy Holding LLC. Following these acquisitions, Icahn's total holdings in CVR Partners stand at 162,457 common units. This move aligns with Icahn's strategy of consolidating his position in companies where he sees potential for value creation. According to InvestingPro data, the company appears undervalued based on its Fair Value analysis, with strong fundamentals including a healthy current ratio of 2.15 and impressive YTD returns of 22.58%.
In other recent news, CVR Partners, an agricultural chemicals firm, has announced crucial financial results and executive compensation details. The company reported third-quarter financial results with net sales of $125 million, a net income of $4 million, and EBITDA of $36 million. They also declared a distribution of $1.19 per common unit, reflecting robust operational performance with ammonia plant utilization reaching 97%.
In addition to financial results, CVR Partners disclosed a new employment agreement with executive chairman David L. Lamp. The agreement, effective January 1, 2025, increases Mr. Lamp's annual base salary from $1.1 million to $1.2 million and outlines severance payments and long-term incentive plan awards. This contract is part of a broader corporate agreement between CVR Partners and CVR Energy (NYSE:CVI), the parent company.
CVR Partners also provided an outlook for the fourth quarter of 2024, projecting an ammonia utilization rate between 92% and 97%, and estimating direct operating expenses to range from $60 million to $70 million. Total (EPA:TTEF) capital spending for the same period is anticipated to be between $19 million and $23 million. These recent developments demonstrate CVR Partners' commitment to operational efficiency and market responsiveness.
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