Carl Icahn's CVR Nears $4 Billion-Plus Marathon Refinery Deal, WSJ Reports

Carl Icahn's CVR Energy is near a deal worth more than $4 billion to buy several refineries from Marathon Petroleum, the Wall Street Journal reported on Tuesday, November 3. The deal could be announced Tuesday morning, according to people familiar with the matter, assuming the talks do not fall apart. Marathon shares gained in premarket trading after the report, and Reuters noted it could not immediately verify the story — so this is a reported deal, not a confirmed one.

What happened

CVR Energy, the oil refiner controlled by investor Carl Icahn, is close to buying refineries from Marathon Petroleum in a transaction valued at more than $4 billion, the Wall Street Journal reported, citing people familiar with the matter. The Journal said the deal is set to be announced Tuesday morning, assuming the talks do not fall apart.

Reuters reported the same Journal story on Tuesday and said it could not immediately verify the report. Neither company has announced the deal in the reports cited here, and the reports do not name which refineries would change hands, how CVR would pay, or what approvals would be needed.

The market noticed quickly. In its Tuesday stocks-to-watch coverage, the Journal noted Marathon Petroleum shares gained premarket after the report, on a morning when Marathon was also set to report its own earnings before the bell. That timing helped the story spread fast.

Why it's blowing up

The size gap is the headline inside the headline. CVR has a market value of close to $6 billion, according to the Journal, while Marathon's market value is around $125 billion. CVR is the seventh-biggest publicly traded U.S. refiner, well behind Marathon, Valero Energy and Phillips 66. A more than $4 billion purchase would be a very large deal relative to CVR's own size.

Icahn's role is the other draw. Icahn owns roughly 71% of CVR's shares and has been a major investor in the company for years, the Journal reported, and his son Brett Icahn sits on its board.

CVR's stock is up roughly 120% so far this year through Monday, the Journal said, as it and its peers benefit from wide refining margins for diesel, gasoline and jet fuel. OilPrice, summarising the Journal report, noted that refining margins for U.S. Gulf Coast operators hit an all-time high of $72 per barrel in September, driven by refinery disruption in the Middle East and Russia and the fuel shortages that followed. Margins are off that peak but still well above a year ago, OilPrice added.

Key facts

Buyer: CVR Energy, controlled by Carl Icahn, who owns roughly 71% of its shares.

Seller: Marathon Petroleum, with a market value of around $125 billion, compared with close to $6 billion for CVR.

Reported price: More than $4 billion for several Marathon refineries. The specific plants have not been named in the reports.

Status: Reported by the Wall Street Journal citing people familiar with the matter. Reuters could not immediately verify it, and the Journal said an announcement was expected Tuesday morning assuming talks do not fall apart.

Why refineries are in demand: CVR's existing plants in Kansas and Oklahoma are banking lofty sales, the Journal said, as the Russia-Ukraine war and conflicts in the Middle East have taken out a big chunk of the world's fuel-making capacity. Last week Valero said it is buying a closed Houston refinery for $320 million to restart at 165,000 barrels a day by end-2027, and ExxonMobil and Chevron are also investing more in refining.

What's next

Next, watch for a formal announcement. If the Journal's timing holds, confirmation — or denial, or silence — should come Tuesday. A confirmed announcement would be expected to name the refineries, the exact price and structure, and any closing conditions. Until then, treat every detail beyond the outline above as unconfirmed.

Marathon's earnings, due Tuesday morning, add a second test: investors will listen for any comment on the reported sale and on refining margins. For CVR, the questions are scale and funding: a deal this size, against a roughly $6 billion market value, reshapes the company if it closes. This is reporting, not a recommendation to buy, sell or hold any stock.

FAQ

Is the CVR-Marathon deal confirmed?
No. The Wall Street Journal reported it on Tuesday, November 3, citing people familiar with the matter, and Reuters said it could not immediately verify the report. No formal announcement is cited in those reports.

How big is the reported deal?
More than $4 billion for several Marathon Petroleum refineries, according to the Journal. Which refineries are involved has not been named in the reports.

Who controls CVR Energy?
Investor Carl Icahn, who owns roughly 71% of CVR's shares, according to the Journal. His son Brett Icahn sits on the company's board.

Why are refineries selling for so much right now?
Refining margins are unusually wide. U.S. Gulf Coast margins hit an all-time high of $72 per barrel in September, OilPrice noted, as wars in the Middle East and between Russia and Ukraine disrupted global fuel supply.

Sources

Wall Street Journal — Carl Icahn's CVR Energy Near Over $4 Billion Deal for Marathon Refineries
Reuters — CVR Energy nears more than $4 billion deal for Marathon refineries, WSJ reports
OilPrice — CVR Energy Nears $4 Billion Refinery Deal With Marathon
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