All Posts from October 1, 2012

Tampa ammonia price moves

It took a while, but major players have concluded new business for Tampa for October. New business has been concluded at $715/mt CFR, up $10/mt from September’s $705/mt.

CVR to do IPO for refinery

CVR Energy Inc. today announced that CVR Refining LP (CVR Refining), an indirect, wholly-owned subsidiary of the company, has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission in connection with a proposed initial public offering of its common units representing limited partner interests. CVR Refining intends to list its common units on the New York Stock Exchange under the symbol "CVRR." The number of common units to be offered and the price range for the offering have not yet been determined. All of the common units to be sold in this offering (including the common units that may be sold to satisfy the underwriters’ over-allotment option) will be sold by CVR Refining.

Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. will act as joint book-running managers for the proposed offering. The offering will be made only by means of a prospectus.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective.

Headquartered in Sugar Land, Texas, CVR Energy Inc.’s subsidiary and affiliated businesses operate independent refining assets in Coffeyville, Kan. and Wynnewood, Okla., with more than 185,000 barrels per day of processing capacity, a marketing network for supplying high value transportation fuels to customers through tanker trucks and pipeline terminals, and a crude oil gathering system serving central Kansas, Oklahoma, western Missouri, southwestern Nebraska and Texas. In addition, CVR Energy subsidiaries own a majority interest in and serve as the general partner of CVR Partners LP, a producer of ammonia and urea ammonium nitrate, or UAN, fertilizers.

Strike at Compass mine ends

Sifto Canada Corp., a subsidiary of Compass Minerals, Overland Park, Kan., has signed a new collective agreement with the Communications, Energy and Paperworkers Union Local 16-O, which represents approximately 400 employees at the company’s salt mine in Goderich, Ont. The agreement was ratified by the union membership on Sept. 29, ending the union’s strike which began Aug. 20.

A tentative agreement had been reached on Aug. 28. The union remained on strike an additional four weeks until the new three-year agreement was ratified on Saturday.
“We’re pleased that the union has ratified the mutually beneficial agreement, and we look forward to having all of our Goderich mine employees back to work,” said Angelo Brisimitzakis, Compass Minerals’ president and CEO. “Production and shipping continued during the strike; our customers should have all the salt they need this upcoming winter.”

The final agreement, which includes competitive wage increases, more flexible production scheduling and skill improvements associated with the company’s investment in continuous mining technology, has no material changes from terms of the tentative agreement the parties previously reached.

Compass Minerals is a leading producer of minerals, including salt, sulfate of potash specialty fertilizer and magnesium chloride.

CVR launches explosion investigation

CVR Energy, Inc. said Sept. 30 that it launched an immediate internal investigation into the cause of the boiler explosion that occurred at the Wynnewood, Okla., refinery on Friday evening, Sept. 28, fatally injuring one employee and critically injuring another.

The explosion occurred at approximately 6:20 p.m. as operators were restarting a boiler that had been temporarily shut down as part of the refinery’s turnaround process.

"I would like to express my deepest sympathy for the employees and families affected by this tragedy," said Jack Lipinski, CVR Energy CEO. "We are conducting a thorough investigation of the incident and cooperating fully with OSHA and the Oklahoma Department of Labor.

"Our focus is to determine how this accident occurred and what steps must be taken to avoid a repeat of this incident. We remain committed to providing a safe working environment for our employees and contractors," he said.

Damage at the refinery was limited to the boiler. Process units and other areas of the facility were unaffected. Additionally, there has been no evidence of environmental impact. No damage estimates were immediately available.

The turnaround, which is a periodic shutdown of the operations, allows for necessary maintenance and upkeep of operating units. The Wynnewood refinery turnaround resumed Saturday.

"We want to thank Wynnewood and Garvin County emergency response teams for their rapid response and assistance," said Wayne Leiker, vice president and refinery manager. "We had immediate support from the community, local clergy, the city and first responders.

"I especially want to thank our employees and contractors for their support, hard work and dedication during this difficult time," Leiker said.

Headquartered in Sugar Land, Texas, CVR Energy Inc.’s subsidiary and affiliated businesses operate independent refining assets in Coffeyville, Kan. and Wynnewood, Okla. with more than 185,000 barrels per day of processing capacity, a marketing network for supplying high value transportation fuels to customers through tanker trucks and pipeline terminals, and a crude oil gathering system serving Kansas, Oklahoma, western Missouri, southwestern Nebraska and Texas.

In addition, CVR Energy subsidiaries own a majority interest in and serve as the general partner of CVR Partners LP, a producer of ammonia and urea ammonium nitrate, or UAN, fertilizers.