CVR Energy Inc., in a release dated June 13, said it has postponed indefinitely the initial public offering of CVR Partners LP. The previously filed registration statement will be withdrawn. CVR Partners was to include CVR Energy’s nitrogen assets, as well as some other properties.
CVR alluded to a possible change in direction of the IPO during its recent earnings call, as was reported in Green Markets (GM May 26, p. 1). CVR says that based on its review of public offering alternatives, the managing general partner has determined that current Master Limited Partnership (MLP) market conditions do not support the offering, which had been aimed at maximizing the value of the fertilizer business. It says keeping the fertilizer assets within CVR Energy provides greater value for its shareholders.
“The decision to withdraw the initial public offering of CVR Partners is based on MLP market conditions and is unrelated to the fundamentals and outlook for the fertilizer business, both of which continue to be strong,” said Jack Lipinski, CVR Energy CEO and the managing general partner of CVR Partners. “Given the positive environment in the agricultural sector and its related market performance, we believe more value is created for CVR Energy shareholders in our current form than in a publicly traded MLP at this time.”
Lipinski said CVR will continue to evaluate alternatives, including those in the public markets for maintaining and maximizing shareholder value for CVR’s fertilizer business.