CVR Energy Declares $5.50 Special Dividend And Announces Adoption of Quarterly Dividend Policy

CVR Energy Declares $5.50 Special Dividend And Announces Adoption of Quarterly
                               Dividend Policy

PR Newswire

SUGAR LAND, Texas, Jan. 24, 2013

SUGAR LAND, Texas, Jan. 24, 2013 /PRNewswire/ --CVR Energy, Inc. (NYSE: CVI)
("CVR Energy") recently contributed its petroleum refining and related
logistics assets to CVR Refining, LP (NYSE: CVRR) ("CVR Refining"), a
newly-formed master limited partnership, and successfully completed the
initial public offering of CVR Refining's common units. CVR Energy currently
retains an approximate 84% interest in CVR Refining and the new unitholders
holdthe remainingapproximate 16%.Pursuant to its cash distribution policy,
CVR Refining will make a distribution of 100% of its available cash each
quarter. Estimated cash distributions for 2013 are approximately $700 million
on a full year basis. As a result, under the current ownership structure, the
new unitholders of CVR Refining would collectively receive approximately $115
million, generating an annualized yield of approximately 19% (based on the
initial public offering price of the common units), and CVR Energy would
receive approximately $585 million, in each case, for the year ending December
31, 2013. Approximately 40% ofCVR Refining'sforecasted production is hedged
through 2013 at an attractiveweighted average crack spread of over $26 per


In addition to its majority ownership in CVR Refining, CVR Energy owns a
majority interest in CVR Partners, LP (NYSE: UAN) ("CVR Partners"), a nitrogen
fertilizer master limited partnership. As a result of forecasted cash flows of
approximately $700 million for 2013 from its interests in CVR Refining and CVR
Partners, CVR Energy announced today that its Board of Directors has adopted a
quarterly cash dividend policy.Subject to declaration by its Board of
Directors, CVR Energy's initial quarterly dividend is expected to be $0.75 per
share, or $3.00 per share on an annualized basis, which the company plans to
begin paying in the second quarter of 2013. In addition, utilizing a portion
of the company's cash-on-hand of approximately $725 million, the Board of
Directors of CVR Energy has declared a special dividend of $5.50 per share
payable on February 19, 2013, to shareholders of record at the close of
business on February 5, 2013. The total amount of the special dividend payment
will be approximately $480 million based on the current number of shares
outstanding, leaving CVR Energy with abundant liquidity.

"Our Board's decision to adopt a quarterly dividend policy at this time
underscores our commitment to returning capital to shareholders and enhancing
shareholder value," said CVR Energy Chairman Carl C. Icahn. "The policy
reflects the strength of our balance sheet, our fundamental ability to
generate free cash flow and our confidence in the future prospects of our

Forward-Looking Statements
This news release contains forward-looking statements. You can generally
identify forward-looking statements by our use of forward-looking terminology
such as "anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "might," "plan," "potential," "predict," "seek," "should," or
"will," or the negative thereof or other variations thereon or comparable
terminology. These forward-looking statements are only predictions and involve
known and unknown risks and uncertainties, many of which are beyond our
control. For a discussion of risk factors which may affect our results, please
see the risk factors and other disclosures included in our Annual Report on
Form10-K for the year ended Dec. 31, 2011, and any subsequently filed
quarterly reports on Form 10-Q. These risks may cause our actual results,
performance or achievements to differ materially from any future results,
performance or achievements expressed or implied by these forward-looking
statements. Given these risks and uncertainties, you are cautioned not to
place undue reliance on such forward-looking statements. The forward-looking
statements included in this press release are made only as of the date hereof.
CVR Energy undertakes no duty to update its forward-looking statements.

The ownership information and certain financial information contained in this
news release (i) do not reflect the potential exercise of the over-allotment
option granted to the underwriters in CVR Refining's initial public offering,
which expires on February 15, 2013, (ii) do not reflect potential future sales
or issuances of CVR Refining or CVR Partners units and (iii) are calculated on
a full-year basis as if the closing of CVR Refining's initial public offering
occurred on January 1, 2013.

Stockholders should consult their tax advisors regarding the tax effects of
the dividends to them.

About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding
company primarily engaged in the petroleum refining and nitrogen fertilizer
manufacturing industries through its holdings in two limited partnerships, CVR
Refining, LP and CVR Partners, LP. CVR Energy subsidiaries serve as the
general partner and own a majority of the common units representing limited
partner interests of CVR Refining and CVR Partners.

For further information, please contact:

Investor Relations:
Jay Finks
CVR Energy, Inc.

Media Relations:
Angie Dasbach
CVR Energy, Inc.

SOURCE CVR Energy, Inc.

Press spacebar to pause and continue. Press esc to stop.