CVR Refining's Second Quarter: Cash Hoard Raises Questions
For the seventh quarter in a row, CVR Refining (NYSE: CVRR) hasn't been able to do what its investors expect it to do as a master limited partnership: pay a distribution. That is due in part to the challenging refining market, but there may be more to the story. The company is holding on to a lot of cash right now, which seems unusual. Let's take a look at CVR's most recent results and contemplate what this cash pile could be used for in the future.
CVR Refining's results continue to be thrown around by the whims of the oil and refined-product markets. After the prior quarter's surprise profit, the company's second-quarter results slid right back into the loss column as refining margins retreated to $7.48 per barrel, after adjusting for inventory-value impacts. That margin is simply too low for CVR to cover its expenses and turn a profit.
Source: Fool.com