CVR Energy to buy two Marathon refineries and a marketing business for $4.2 billion
+4 new sources since this summary was written
CVR Energy announced a definitive agreement to purchase Marathon Petroleum’s St. Paul Park refinery in Minnesota and the Mandan refinery in North Dakota, together with a regional marketing platform. The $4.2 billion transaction will raise CVR’s crude‑oil throughput to about 384,000 barrels per day and is slated to close by the end of 2026, subject to antitrust clearance. The company plans to finance the deal with $2.5 billion of secured debt, a $500 million equity contribution pledged by its controlling shareholder, an $800 million equity injection from Trafigura US Holdings, and cash on hand, and expects roughly $70 million of annual run‑rate synergies.
Why it matters
The acquisition expands CVR’s refining capacity and should lift pro‑forma EBITDA to around $2.0 billion for the nine months to September 30, 2026, according to the company’s own calculations. The financing mix and anticipated synergies could improve cash flow and earnings per share on a pro‑forma basis.
Key facts
- 1The purchase price is approximately $4.2 billion, plus net working capital. investing.com
- 2The deal adds the 105,000‑bpd St. Paul Park refinery and the 72,000‑bpd Mandan refinery to CVR’s portfolio. investing.com
- 3CVR’s total crude‑oil throughput capacity will rise from roughly 207,000 to about 384,000 barrels per day. investing.com
- 4The acquired assets generated about $1.2 billion of EBITDA in the trailing twelve months ended September 30, 2026. investing.com
- 5Funding will consist of $2.5 billion of committed secured debt, a $500 million equity contribution pledged by the controlling shareholder, an $800 million equity injection from Trafigura US Holdings, and cash on hand. investing.com
- 6CVR expects roughly $70 million of annual run‑rate synergies from the transaction. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.