Oil Refiner Weighs Spinoff of Renewables Business

Oil Refiner Weighs Spinoff of Renewables Business
"We are taking a long-term view and want to prepare for the future," CVR Chief Executive Officer Dave Lamp said.

CVR Energy Inc., the oil refiner controlled by billionaire investor Carl Icahn, may split off its renewable-fuels business to tap a broader universe of capital. 

“We are taking a long-term view and want to prepare for the future,” CVR Chief Executive Officer Dave Lamp said during a conference call with analysts on Tuesday. “This could potentially provide us with more opportunity to access a greater pool of investors.”

CVR plunged as much as 15% after posting disappointing third-quarter results. Lamp said he doesn’t see much opportunity for growth in traditional, petroleum-based motor fuels and estimated the U.S. market has 1 million barrels of excess daily crude-processing capacity. The company is converting some equipment at refineries in Oklahoma and Kansas to make renewable diesel. 


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