Oil Refiner CVR Energy Weighs Spinoff of Renewables Business
(Bloomberg) -- CVR Energy Inc., the oil refiner controlled by billionaire investor Carl Icahn, may split off its renewable-fuels business to tap a broader universe of capital.
“We are taking a long-term view and want to prepare for the future,” CVR Chief Executive Officer Dave Lamp said during a conference call with analysts on Tuesday. “This could potentially provide us with more opportunity to access a greater pool of investors.”
CVR plunged as much as 15% after posting disappointing third-quarter results. Lamp said he doesn’t see much opportunity for growth in traditional, petroleum-based motor fuels and estimated the U.S. market has 1 million barrels of excess daily crude-processing capacity. The company is converting some equipment at refineries in Oklahoma and Kansas to make renewable diesel.
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