SUNNY ISLES BEACH, FL—Carl C. Icahn, through various entities, has made significant purchases of common units in CVR Partners, LP (NYSE:UAN), according to a recent SEC filing dated November 13, 2024. The transactions, spanning three consecutive days, reflect a strategic move by Icahn's investment vehicles.
On November 11, 2024, Icahn's entities acquired 10,697 common units at $71.82 per unit. The following day, an additional 8,708 units were purchased at $71.26 per unit. The buying spree continued on November 13, 2024, with 7,927 units acquired at $71.51 per unit. Collectively, these transactions amounted to a total investment of approximately $1,955,650, with the price per unit ranging from $71.26 to $71.82.
The transactions were executed through American Entertainment Properties Corp. and IEP Energy Holding LLC, entities associated with Icahn Enterprises (NASDAQ:IEP). These acquisitions have increased the total shares owned by these entities, underscoring Icahn's continued interest in CVR Partners.
In other recent news, CVR Partners released its Q3 2024 financial results, highlighting net sales of $125 million, net income of $4 million, and EBITDA of $36 million. The company also declared a third-quarter distribution of $1.19 per common unit, payable in mid-November. The operational performance remained robust with a consolidated ammonia plant utilization rate of 97%.
These recent developments also include an increase in ammonia and UAN prices, coupled with strong demand for summer UAN fill and fall ammonia prepay. However, the company did experience some unplanned downtime at the upgrading units, which affected UAN sales volumes. Geopolitical risks continue to be a concern for the nitrogen fertilizer industry.
Looking ahead, the company estimates an ammonia utilization rate of between 92% and 97% for Q4 2024. Direct operating expenses for the same quarter are anticipated to be between $60 million and $70 million, with total capital spending projected to be between $19 million and $23 million. Despite the challenges, CVR Partners maintains its commitment to operational efficiency and market responsiveness, as evidenced by its consistent distribution to unitholders.
InvestingPro Insights
Carl Icahn's recent purchases of CVR Partners, LP (NYSE:UAN) units align with several positive indicators highlighted by InvestingPro. The company's strong financial position is evident from its high shareholder yield and significant dividend payments, as noted in InvestingPro Tips. With a current dividend yield of 6.68%, UAN offers attractive returns to unitholders, which may have factored into Icahn's decision to increase his stake.
InvestingPro Data reveals that UAN's P/E ratio stands at 14.33, suggesting a relatively modest valuation compared to its earnings. This, coupled with the company's profitability over the last twelve months, supports the InvestingPro Tip that UAN's valuation implies a strong free cash flow yield.
The company's financial stability is further underscored by its liquid assets exceeding short-term obligations, as pointed out in another InvestingPro Tip. This solid financial footing may provide Icahn with confidence in the company's ability to weather market fluctuations and maintain its dividend payments.
It's worth noting that UAN has raised its dividend for three consecutive years, a trend that aligns with Icahn's value investing approach. The stock's low price volatility, as mentioned in the InvestingPro Tips, may also appeal to investors seeking stability in their portfolio.
For readers interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for UAN, providing deeper insights into the company's financial health and market position.
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