CVR Energy to explore strategic alternatives

US-based oil refining company CVR Energy has announced that it is evaluating potential strategic alternatives, including a potential sale of the company.

The firm has appointed BofA Merrill Lynch as its financial adviser to assist it in pursuing alternatives.

While the efforts to evaluate alternatives will take place, the company will continue to focus on accomplishing its strategic objectives and managing costs.

Meanwhile, CVR Energy has signed a definitive agreement, through its subsidiary, to sell its 1.5-million-barrel crude oil terminal and related assets in Cushing, Oklahoma, to an affiliate of Plains All American Pipeline.

The $36m deal now stands closed.

CVR Energy CEO Dave Lamp said: “CVR Energy is committed to maximising value for its stockholders. Both the sale of the Cushing terminal, which allowed us to derive value from an underutilised asset and the exploration of potential strategic alternatives support this commitment.

“We are excited about the company’s prospects and ability to enhance stockholder value through our initiatives, regardless of the outcome of a strategic alternative process.”

In a statement, the company said: “CVR Energy does not have a defined timeline for the exploration of strategic alternatives and makes no assurances that its evaluation will result in any transaction being announced or consummated.”

CVR Energy’s subsidiary CVR Refining owns refining and related logistics assets in the Midcontinent US.

The operations include a full coking medium-sour crude oil refinery in Coffeyville, Kansas, and a crude oil refinery in Wynnewood, Oklahoma.

In January, CVR Energy purchased all of the issued and outstanding common units representing limited partner interests in CVR Refining for around $241m.

American billionaire investor Carl Icahn took a controlling state in the company in 2012.