CVR Energy Inc. is evaluating potential strategic alternatives, which include a possible sale, tapping Bank of America Merrill Lynch to serve as its financial adviser.
In a May 21 release, CVR said it intends to evaluate the alternatives alongside its focus on accomplishing its objectives, managing costs and "operating its businesses safely and reliably." However, the company did not provide a timeline for the evaluation nor any assurances that it may lead to a transaction.
The company also announced that a subsidiary entered into an agreement with an unnamed affiliate of Plains All American Pipeline LP to sell its 1.5-million-barrel Cushing, Okla., crude oil terminal and related assets for $36 million. The deal was concurrently closed as well.
CVR's CEO Dave Lamp said the firm was committed to maximizing shareholder value and the sale of the Cushing terminal and the exploration of strategic alternatives support this.
"We are excited about the Company's prospects and ability to enhance stockholder value through our initiatives, regardless of the outcome of a strategic alternative process," Lamp said.
During CVR's April 25 earnings call, Lamp noted CVR Energy's refining business is well positioned to be acquired by a Permian Basin oil producer looking toward an integrated business model to manage their oil price risk.