Dividend Plays

[dav1234]

CVRR in 32.25..huge divi % on tap

Distributions and Guidance

On Jan. 23, 2013, CVR Refining closed its initial public offering and sold an aggregate 27.6 million common units (including the underwriters' subsequently exercised option to purchase additional common units), or 18.7 percent of the limited partnership interests, to the public at $25 per common unit. Distributions are expected to be made within 60 days after the end of each quarter beginning with the quarter ending March 31, 2013, to unitholders of record on the applicable record date. The first quarter distribution will be adjusted to exclude the period from Jan. 1, 2013, through Jan. 22, 2013.

In its prospectus dated Jan. 16, 2013, the company forecasted that the first quarter distribution would be $1.21 per common unit on a full quarter basis. Based on higher crack spreads than forecast in the prospectus, CVR Refining is expanding full quarter guidance to $1.30 to $1.55 per common unit. Adjusted for the period of Jan. 23 through the end of the quarter, the updated guidance for distributions to unitholders is $1.10 to $1.35 per common unit.

The company is also raising its previous distribution guidance for the 2013 full year of $4.72 per common unit, as reported in its prospectus, to $5.50 to $6.50 per common unit. An adjustment will be made to exclude the period of Jan. 1, 2013, through Jan. 22, 2013, as noted above.

"The increase in our guidance for the first quarter and 2013 full year is driven by continuing strong crack spreads and continued strength in crude differentials," Lipinski said. "We expect 2013 to be a rewarding year for the company and its unitholders