CVR Refining LP shares the same general partner, CVR Energy (NYSE: CVI), as fertilizer producer CVR Partners LP (NYSE: UAN).
The V-MLP owns three primary assets:
CVR Refining’s two refineries have ready access to crude oil from the Bakken Shale in North Dakota and the Permian Basin in west Texas, two prolific unconventional plays where surging production has led to favorable pricing relative to international benchmarks.
In addition, the Coffeyville facility sources significant volumes of crude oil from Alberta, where Western Canada Select trades for about $87.00 per barrel–a significant discount to West Texas Intermediate (WTI), which goes for $107.00 per barrel. (We examined this pricing dynamic in Price Check on Canadian Oil and Gas.)
Access to cheaper North American crude oils has boosted CVR Refining’s profitability considerably.
And the V-MLP has invested in a series of upgrades to its refineries that enables them to process a wider variety of crude-oil grades, from the lighter output that predominates in major shale plays to heavy-sour varietals produced in Canada. Greater feedstock flexibility translates into superior profitability and ability.
In the first quarter of 2014, CVR Refining’s crude-oil costs averaged about $2.70 per barrel less than the price of WTI delivered to the hub in Cushing, Okla.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Feb. 27, 2018
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.