CVR Energy expands refinery holdings

Carl Icahn controlled CVR Energy, Inc., owner of refineries in Wynnewood, Oklahoma and Coffeyville, Kansas is adding to its family of refineries in a $4.2 billion deal to acquire Marathon Petroleum Corp. refineries in North Dakota and Minnesota. The company announced the refineries are in St.

Paul Park, Minnesota, and Mandan, North Dakota. CVR, headquartered in Sugar Land, Texas said the acquired business generated about $1.2 billion of EBITDA. “We are thrilled to deliver on our plan to strategically grow and diversify our business.

We are acquiring 2 well-maintained, highly productive refineries from Marathon that have generated more than $1.1 billion of EBITDA for the first nine months of 2026. In light of current favorable market conditions, we expect the Acquired Business to continue to generate substantial cash flows over at least the next twelve months,” said Dane Neumann, President and Chief Executive Officer of CVR Energy.

The sale was by Marathon Petroleum Corp. and MPLX LP. MPC will receive $3.45 billion for the refining assets and MPLX will receive $750 million for the related midstream assets. “Ensuring the long-term competitive position of our portfolio is a strategic commitment,” said Maryann Mannen, chairman, president, and chief executive officer of MPC and MPLX.

“This divestiture of quality assets in Minnesota and North Dakota advances our strategic priorities of maximizing value creation and meeting our return thresholds. We intend to reinvest this capital primarily in the Gulf Coast and to support MPLX’s growth in the Permian and Marcellus basins.” The St.

Paul Park refinery has a crude oil capacity of 105 thousand barrels per calendar day (bpcd), and the Mandan refinery has a crude oil capacity of 72 thousand bpcd. Following the transaction, MPC will continue to operate one of the nation’s largest refining systems, with an aggregate crude oil refining capacity of approximately 2.8 million bpcd.

MPLX’s midstream assets supporting each refinery’s operations include interest in a crude oil pipeline, storage capacity, and three terminals. The sale of the midstream assets represents a 9x multiple on forecast 2027 EBITDA. The transaction is expected to close at the end of 2026, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

CVR’s Wynnewood, Oklahoma refinery, located about 65 miles south of Oklahoma City, has a capacity of 74,500 bpd and predominantly produces gasoline, diesel fuel, military jet fuel, solvents and asphalt. It ships its finished products via pipeline, railcar and truck and focuses its efforts in Oklahoma and parts of Arkansas and eastern Missouri.

The CVR refinery in Coffeyville, Kansas has a capacity of 132,000 bpd and is about 100 miles from the Cushing Hub in Oklahoma. Its products include gasoline, diesel fuels and other refined products. Carl Icahn took control of CVR Energy in the spring of 2012 following a hostile tender offer and takeover battle.