Related Party Transactions

12 Months Ended

Dec. 31, 2021

(14) Related Party Transactions

Activity associated with the Company’s related party arrangements for the years ended December 31, 2021, 2020, and 2019 is summarized below:


Expenses with related parties
	Year Ended December 31,
(in millions)	2021		2020		2019
Cost of materials and other:



Enable Joint Venture Transportation Agreement	$	11	$	11	$	12

Payments (received) made:

Dividends (1)	348		85		218

AEP Tax Allocation Agreement	—		—		(3)

(1)See below for a summary of the dividends paid to IEP for the years ended December 31, 2021, 2020, and 2019.

Enable Joint Venture Agreement

CVR Refining is party to a transportation agreement as part of the Enable JV for an initial term of 20 years under which Enable provides transportation services for crude oil purchased within a defined geographic area. Additionally, CVR Refining

entered into a terminalling services agreement with Enable JV under which it receives access to Enable JV’s terminal in Lawrence, Oklahoma to unload and pump crude oil into Enable JV’s pipeline for an initial term of 20 years.

Midway Joint Venture

For the years ended December 31, 2021, 2020, and 2019, CRRM incurred costs, which are included in Cost of materials and other, of $20 million, $17 million, and $21 million, respectively, from crude oil transportation services incurred on the Midway JV through Vitol as the intermediary purchasing agent.

Dividends to CVR Energy Stockholders

Dividends, if any, including the payment, amount and timing thereof, are determined in the discretion of CVR Energy’s board of directors (the “Board”). IEP, through its ownership of the Company’s common stock, is entitled to receive dividends that are declared and paid by the Company based on the number of shares held at each record date. No dividends were declared related to the fourth quarter of 2021, and there were no quarterly dividends declared or paid during 2021 related to the first, second, and third quarters of 2021 and fourth quarter of 2020. During the years ended December 31, 2020 and 2019, the Company paid dividends totaling $1.20 and $3.05 per common share, or $121 million and $306 million, respectively. Of these dividends, IEP received $85 million and $218 million, respectively, for the same periods.

On May 26, 2021, the Company announced a special dividend of approximately $492 million, or equivalent to $4.89 per share of the Company’s common stock, to be paid in a combination of cash (the “Cash Distribution”) and the Stock Distribution. On June 10, 2021, the Company distributed an aggregate amount of approximately $241 million, or $2.40 per share of the Company’s common stock, pursuant to the Cash Distribution, and approximately 10,539,880 shares of Delek common stock, which represented approximately 14.3% of the outstanding shares of Delek common stock, pursuant to the Stock Distribution. IEP received approximately 7,464,652 shares of common stock of Delek and $171 million in cash. The Stock Distribution was recorded as a reduction to equity through a derecognition of our investment in Delek, and the Company recognized a gain of $112 million from the initial investment in Delek through the date of the Stock Distribution.

Distributions to CVR Partners’ Unitholders

Distributions, if any, including the payment, amount and timing thereof, are subject to change at the discretion of the UAN GP Board. The following table presents distributions paid by CVR Partners to CVR Partners’ unitholders, including amounts received by the Company, as of December 31, 2021.



				Distributions Paid (in millions)
Related Period	Date Paid	Distribution Per Common Unit		Public Unitholders		CVR Energy		Total
2021 - 2nd Quarter	August 23, 2021	$	1.72	$	11	$	7	$	18
2021 - 3rd Quarter	November 22, 2021	2.93		20		11		31
Total dividends		$	4.65	$	31	$	18	$	49

There were no distributions declared or paid by CVR Partners related to the first quarter of 2021 and fourth quarter of 2020, and no distributions were declared or paid during 2020. During the year ended December 31, 2019, CVR Partners paid distributions totaling $4.00 per common unit on a split-adjusted basis, or $45 million. Of these distributions, CVR Energy received $16 million.

For the fourth quarter of 2021, CVR Partners, upon approval by the UAN GP Board on February 21, 2022, declared a distribution of $5.24 per common unit, or $56 million, which is payable March 14, 2022 to unitholders of record as of March 7, 2022. Of this amount, CVR Energy will receive approximately $20 million, with the remaining amount payable to public unitholders.