Icahn Enterprises L.P. (IEP) Bundle
A Brief History of Icahn Enterprises
Icahn Enterprises L.P. is a diversified holding company founded by investor Carl Icahn. The company operates in various sectors, including Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma. As of 2024, Icahn Enterprises continues to evolve within these industries, focusing on strategic investments and management practices.
Financial Performance
As of September 30, 2024, Icahn Enterprises reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $2.8 billion | $3.0 billion | $7.5 billion | $8.2 billion |
| Net Income (Loss) | $22 million | $(6) million | $(347) million | $(545) million |
| Adjusted EBITDA | $183 million | $243 million | $162 million | $352 million |
| Basic and Diluted Income (Loss) per LP Unit | $0.05 | $(0.01) | $(0.75) | $(1.47) |
| Distributions Declared per LP Unit | $1.00 | $1.00 | $3.00 | $5.00 |
Asset Overview
As of September 30, 2024, Icahn Enterprises reported total assets of $17.4 billion, a decrease from $20.9 billion at the end of 2023. The breakdown of assets is as follows:
| Asset Category | Value (in millions) |
|---|---|
| Cash and Cash Equivalents | $2,294 |
| Investments | $2,585 |
| Accounts Receivable | $476 |
| Inventories | $883 |
| Property, Plant and Equipment | $3,865 |
| Total Liabilities | $12,616 |
| Total Equity | $4,827 |
Investment Strategy
Icahn Enterprises has adopted a strategy of maintaining a liquidity reserve to capitalize on market opportunities. As of October 31, 2024, the company reported approximately $2.3 billion in cash and cash equivalents. This liquidity is intended to support potential acquisitions and investments in undervalued companies.
In November 2024, the company announced a quarterly distribution reduction to $0.50 per depositary unit in order to preserve capital for investment purposes, reflecting a 16% annualized yield at the then-current share price.
Market Valuation
The indicative net asset value of Icahn Enterprises was approximately $3.6 billion as of September 30, 2024, down from $4.0 billion in June 2024. This decline was due to performance variances in various segments, particularly in automotive services and investments.
| Date | Indicative Net Asset Value (in millions) |
|---|---|
| September 30, 2024 | $3,560 |
| June 30, 2024 | $3,983 |
| December 31, 2023 | $4,758 |
As of the latest reports, Icahn Enterprises continues to navigate complex market conditions while seeking to optimize its portfolio and capitalize on strategic opportunities in various sectors.
A Who Owns Icahn Enterprises L.P. (IEP)
Ownership Structure
Ownership Structure
As of 2024, Icahn Enterprises L.P. (IEP) is primarily owned by its general partner, Icahn Enterprises Holdings L.P., which is controlled by Carl C. Icahn. The ownership distribution among limited partners and the general partner is crucial to understanding the control dynamics within the company.
| Owner | Type | Percentage Ownership | Units Owned |
|---|---|---|---|
| Carl C. Icahn | General Partner | ~90% | ~455 million units |
| Other Limited Partners | Limited Partners | ~10% | ~49 million units |
Recent Financial Performance
In the third quarter of 2024, Icahn Enterprises reported revenues of $2.8 billion and a net income of $22 million, demonstrating a year-over-year improvement from a net loss of $6 million in Q3 2023. The Adjusted EBITDA for the same quarter was $183 million, down from $243 million in the previous year.
Net Asset Value
The indicative net asset value of Icahn Enterprises as of September 30, 2024, was approximately $3.6 billion, a decrease of $423 million compared to June 30, 2024. This valuation is influenced by various factors, including performance in investment funds and distributions to unitholders.
| Period | Indicative Net Asset Value (in millions) | Change from Previous Period |
|---|---|---|
| September 30, 2024 | $3,560 | -$423 |
| June 30, 2024 | $3,983 | N/A | December 31, 2023 | $4,758 | N/A |
Distribution and Unit Information
Icahn Enterprises declared a quarterly distribution of $0.50 per depositary unit, effective for units held as of November 18, 2024. The total units outstanding as of September 30, 2024, were approximately 504 million units.
| Distribution Type | Amount per Unit | Record Date | Payment Date |
|---|---|---|---|
| Quarterly Distribution | $0.50 | November 18, 2024 | December 26, 2024 |
Debt and Equity Summary
As of September 30, 2024, Icahn Enterprises reported total assets of $17.4 billion and total liabilities of $12.6 billion, resulting in total equity of approximately $4.8 billion. The significant debt load includes approximately $6.4 billion in total debt.
| Category | Amount (in millions) |
|---|---|
| Total Assets | $17,443 |
| Total Liabilities | $12,616 |
| Total Equity | $4,827 |
| Total Debt | $6,447 |
Investment Segments
Icahn Enterprises operates through various segments, including Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma. Each segment contributes to the overall performance and valuation of the company.
| Segment | Value (in millions) |
|---|---|
| Energy | $1,536 |
| Automotive | $1,251 |
| Food Packaging | $254 |
| Real Estate | $442 |
| Home Fashion | $164 |
| Pharma | $221 |
Icahn Enterprises L.P. (IEP) Mission Statement
Company Overview
Icahn Enterprises L.P. is a diversified holding company with operations across various sectors including Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma. The company's commitment is to maximize shareholder value through strategic investments and operational efficiencies.
Mission Statement
The mission statement of Icahn Enterprises emphasizes a strong focus on value creation for its partners through prudent investment strategies and operational excellence. The company aims to leverage its expertise in identifying undervalued assets and transforming them into high-performing businesses.
Core Values
- Integrity: Maintaining the highest standards of ethics in all dealings.
- Accountability: Taking responsibility for actions and results.
- Innovation: Embracing change and fostering creativity in operations.
- Collaboration: Working together to achieve common goals.
- Performance: Committing to excellence in all business endeavors.
Recent Financial Performance
As of September 30, 2024, Icahn Enterprises reported significant financial metrics that reflect its operational performance:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenues | $2.8 billion | $3.0 billion | $7.5 billion | $8.2 billion |
| Net Income (Loss) | $22 million | $(6) million | $(347) million | $(545) million |
| Adjusted EBITDA | $183 million | $243 million | $162 million | $352 million |
| Basic Income (Loss) per LP Unit | $0.05 | $(0.01) | $(0.75) | $(1.47) |
| Quarterly Distribution per Unit | $0.50 | $1.00 | $3.00 | $5.00 |
Indicative Net Asset Value
The indicative net asset value (NAV) of Icahn Enterprises provides insight into the company's valuation as of September 30, 2024:
| Category | Value (in millions) |
|---|---|
| Holding Company Interest in Investment Funds | $2,745 |
| CVR Energy | $1,536 |
| Total Market-Valued Subsidiaries and Investments | $4,281 |
| Other Subsidiaries (Viskase, Real Estate, etc.) | $1,275 |
| Indicative Net Asset Value | $3,560 |
Strategic Focus
Icahn Enterprises continues to focus on identifying and capitalizing on undervalued investment opportunities across various sectors. The company maintains a robust liquidity position to pursue strategic acquisitions and investments.
Leadership Insights
Chairman Carl C. Icahn has emphasized the commitment to delivering high capital returns for investors, stating that the current market presents significant opportunities for value creation through strategic investments.
How Icahn Enterprises L.P. (IEP) Works
Company Structure and Operations
Icahn Enterprises L.P. is a diversified holding company operating through various segments, including Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma. As of 2024, the company maintains significant operational diversity, allowing it to leverage opportunities across different industries.
Financial Performance
For the third quarter of 2024, Icahn Enterprises reported the following financial metrics:
- Revenues: $2.8 billion
- Net income: $22 million
- Adjusted EBITDA: $183 million
Comparatively, in the third quarter of 2023, revenues were $3.0 billion, with a net loss of $6 million and Adjusted EBITDA of $243 million. This indicates a decline in revenue and Adjusted EBITDA year-over-year.
Year-to-Date Financials
For the nine months ended September 30, 2024, Icahn Enterprises reported:
- Revenues: $7.5 billion
- Net loss: $347 million
- Adjusted EBITDA: $162 million
In the same period of 2023, revenues were $8.2 billion, with a net loss of $545 million and Adjusted EBITDA of $352 million, indicating an improvement in net loss despite lower revenues.
Balance Sheet Overview
As of September 30, 2024, Icahn Enterprises' consolidated balance sheet is as follows:
| Assets | Amount (in millions) |
|---|---|
| Cash and cash equivalents | $2,294 |
| Investments | $2,585 |
| Property, plant, and equipment | $3,865 |
| Total Assets | $17,443 |
| Liabilities and Equity | Amount (in millions) |
|---|---|
| Accounts payable | $679 |
| Accrued expenses and other liabilities | $1,660 |
| Total Liabilities | $12,616 |
| Total Equity | $4,827 |
Market Valuation and Indicative Net Asset Value
As of September 30, 2024, the indicative net asset value of Icahn Enterprises is approximately $3.6 billion, reflecting a decrease of $423 million from the previous quarter. This valuation is derived primarily from the following market-valued subsidiaries and investments:
| Investment | Value (in millions) |
|---|---|
| Holding Company interest in Investment Funds | $2,745 |
| CVR Energy | $1,536 |
| Total Market-Valued Subsidiaries and Investments | $4,281 |
Distributions and Shareholder Returns
On November 6, 2024, the Board of Directors declared a quarterly distribution of $0.50 per depositary unit, a reduction from $1.00 per unit in the prior quarter. This decision reflects a strategic move to retain liquidity for future investments.
Debt and Interest Expenses
As of September 30, 2024, Icahn Enterprises reported total debt of $6.447 billion and interest expenses of $394 million for the nine months ended September 30, 2024.
Operational Segments Overview
The operational segments of Icahn Enterprises as of 2024 include:
- Investment Segment
- Energy Segment
- Automotive Segment
- Food Packaging Segment
- Real Estate Segment
- Home Fashion Segment
- Pharmaceutical Segment
How Icahn Enterprises L.P. (IEP) Makes Money
Overview of Revenue Streams
Icahn Enterprises L.P. (IEP) generates revenue through various business segments, including Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma. In 2024, the company reported total revenues of $7.5 billion for the nine months ended September 30, down from $8.2 billion in the same period of 2023.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Net Sales | $2,221 | $2,991 | -25.8% |
| Other Revenues from Operations | $192 | $203 | -5.4% |
| Net Gain (Loss) from Investment Activities | $257 | ($332) | +177.4% |
| Interest and Dividend Income | $115 | $143 | -19.6% |
| Other Income, Net | $7 | $3 | +133.3% |
| Total Revenues | $2,791 | $3,010 | -7.3% |
Investment Segment Performance
The Investment segment is a significant driver of revenue for IEP, with a net gain from investment activities of $257 million in Q3 2024, recovering from a loss of $332 million in the previous year. This segment focuses on identifying undervalued investments and executing activist strategies to enhance shareholder value.
Energy Business
The Energy sector is another crucial component, primarily through CVR Energy. The indicative net asset value of CVR Energy was approximately $1.5 billion as of September 30, 2024. The company has faced challenges due to fluctuating crude oil prices and refining margins, impacting overall profitability.
Automotive Services
In the Automotive segment, IEP operates through Icahn Automotive Group, which reported a decrease in indicative asset value to $1.25 billion as of September 30, 2024. The automotive sector has been under pressure due to supply chain disruptions and increased competition.
Financial Performance Metrics
For the nine months ended September 30, 2024, IEP reported a net loss of $347 million, an improvement from a loss of $545 million in the same period of 2023. Adjusted EBITDA for the nine months was $162 million, down from $352 million in the prior year.
| Financial Metric | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Net Income (Loss) | $22 | ($6) |
| Adjusted EBITDA | $183 | $243 |
| Net Asset Value | $3.56 billion | $4.75 billion |
| Distributions Declared per LP Unit | $0.50 | $1.00 |
Debt and Liquidity Position
As of September 30, 2024, Icahn Enterprises reported total liabilities of $12.62 billion, with debt amounting to $6.45 billion. The liquidity position remains robust, with cash and cash equivalents totaling $2.29 billion, providing the flexibility to pursue new investment opportunities.
Strategic Focus and Outlook
Iep's strategy focuses on maintaining a strong balance sheet while identifying and capitalizing on undervalued market opportunities. The company has a war chest of liquidity, approximately $2.3 billion, to fund strategic acquisitions and investments in its controlled businesses, particularly in sectors that show potential for recovery and growth.
| Liquidity and Debt Metrics | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $2,294 |
| Total Debt | $6,447 |
| Total Assets | $17,443 |
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Resources:
- Icahn Enterprises L.P. (IEP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Icahn Enterprises L.P. (IEP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Icahn Enterprises L.P. (IEP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.