CVI – Although longer-term upside remains warranted, management’s concerns about crack spreads and their debt levels imply the potential for near-term headwinds

• CVR Energy, Inc. (CVI) currently trades near recent lows relative to UAFRS-based (Uniform) Assets, with a 1.1x Uniform P/B. Although this suggests a buying opportunity in the long run, given management’s concerns about crack spreads and their debt levels, near-term upside may be limited
• Specifically, management appears concerned about their debt levels, at both CVR Refining and CVR Partners, and the sustainability of improved NYMEX 2-1-1 crack spreads. As such, although valuations remain attractive in the long run, near-term equity upside is likely limited