CVR Energy decides not to pursue spin-off of its nitrogen fertilizer business

HOUSTON (ICIS)–CVR Energy announced it has concluded its previously announced exploration of a potential spin-off of its interests in its nitrogen fertilizer business and its board of directors has determined not to pursue the potential spin-off at this time.

The company said the decision to retain interests in its nitrogen fertilizer business at this time was made following a thorough review by the board of the potential transaction and current market conditions and in consideration of the best interests of CVR Energy and its stockholders.

The nitrogen fertilizer manufacturing facilities, which primarily produce ammonia and urea ammonium nitrate (UAN) fertilizers, are located in Coffeyville, Kansas, and East Dubuque, Illinois.

“Included within our exploration of a potential spin-off was how to create pure-play refining and fertilizer entities while still retaining the operational efficiencies both CVR Energy and CVR Partners enjoy from our current model,” said Dave Lamp, CVR Energy President and CEO.

“Following thoughtful and careful analysis, the Board concluded that the complexity of a transaction that could accomplish both goals may not deliver the appropriate value under current conditions.”

Lamp said the company will continue to explore ways to capitalise on the unique assets of each of CVR Energy and CVR Partners.

“Particularly within the Coffeyville complex, including their proximity to the farm belt, excess hydrogen capacity and existing CO2 sequestration capabilities. In addition, the pre-treatment unit at Wynnewood remains on-track for mechanical completion in late Q3 ’23 which we expect to enhance the renewables capture rate and profitability,” Lamp said.