CVR Energy has entered into a definitive agreement for the sale of its 1.5-million-barrel crude oil storage terminal in Cushing, Oklahoma to Plains All American Pipeline for $36 million.
Additionally, the company is also evaluating potential strategic alternatives, including a potential sale. The company, which has appointed BofA Merrill Lynch as its financial advisor, intends to evaluate alternatives in combination with its ongoing focus on accomplishing its strategic objectives, prudently managing costs and operating its businesses safely and reliably.
CVR Energy does not have a defined timeline for the exploration of strategic alternatives and makes no assurances that its evaluation will result in any transaction being announced or consummated.
Dave Lamp, CVR Energy's CEO, says: 'CVR Energy is committed to maximising value for its stockholders. Both the sale of the Cushing terminal, which allowed us to derive value from an underutilised asset, and the exploration of potential strategic alternatives support this commitment.
'We are excited about the company's prospects and ability to enhance stockholder value through our initiatives, regardless of the outcome of a strategic alternative process.'
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