CVR Refining Maybe Bold Or Only A Hold

The energy sector includes six industries all related to bringing oil and gas to market. They are as follows: drilling, exploration, and production (E&P), equipment and services, integrated, midstream, refining & marketing.  all such oily and gassy enterprises.

Today I'm reviewing an oil and gas refining & marketing firm. It's a mid-cap stock with market capital between CVR Refining, LP  It's trading ticker symbol is CVRR

CVR Refining LP is an independent downstream energy limited partnership owning refining & related logistics assets that operate in the mid-continent region. Its business includes a complex full coking medium-sour crude oil refinery in Kansas, and a complex crude oil refinery in Oklahoma.

CVR Refining Group, LLC operates as the general partner of CVR Refining, LP. 

The company was founded in 2012 and is based in Sugar Land, Texas. CVR Refining, LP is a subsidiary of CVR Energy, Inc.

I use three key data points gauge the value of any dividend equity or fund like CVR Refining LP: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest.

However, it's those first three primary keys that best tell whether a company has made, is making, and will make money. 

CVRR Price

CVR Refining's price was $17.00 per share at yesterday's market close. A year ago its price was $9.05 for a gain of $7.95 per share in the past year.  

Assuming CVRR's price will trade between the range of $6.00 to $25.00 next year, its price could grow another $7.95 from $17.00 to $24.95 by April 2019. 

CVRR Dividends

CVR Refining's most recent variable quarterly dividend was $0.45 paid March 12th. Total annual dividend for 2018 is estimated at $1.39 per share for a yield of just over 8% at yesterdays $17.00 stock price.

Gains For CVRR?

The $7.95 estimated year over year price gain plus an anticipated dividend of  $1.39 makes a projected gross annual gain of $9.34, which will be reduced by the cost to trade these shares.  

$1,000.00 invested today at the $17.00 price buys 59 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts about $0.17 per share

Taking that $0.17 brokerage cost out of the estimated $9.34 gross gain leaves a net gain of $9.17 X 59 shares 

= $541.03

or a 54% potential net gain on a $1003.00 investment.

Therefore, CVR Refining, LP (whose ticker symbol is CVRR), now shows a possible 54% net gain including a 8% dividend yield. 

Seven analysts cover this stock. All seven rate it a hold with their combined wisdom ranking it at 3 on 1 to 5 Buy to Sell Scale.  As for price movement the 7 analysts median target price is lower at $16 instead of reflecting any gain for the year.

The forward-looking numbers were conjecture based on past year performance. Actual results remain to be seen.  They could turn out to be far higher or lower. More study is required for you to determine if CVR Refining, LP is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click ...

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