Tags: Carl Icahn | Chesapeake | Energy | Stock

Carl Icahn Boosts Stake in Chesapeake Energy Amid Stock Slump

Monday, 23 Mar 2015 09:39 PM

Billionaire investor Carl Icahn increased his stake in U.S. shale gas producer Chesapeake Energy Corp. for the first time in two years amid the stock’s worst quarterly performance since 2008.

Icahn’s High River LP, Icahn Partners LP and Icahn Partners Master Fund LP collectively bought 6.6 million Chesapeake shares on March 11 at $14.15 each, bringing the investor’s total stake in the company to 11 percent, according to a filing on Monday. Prior to the purchases, Icahn controlled about 9.9 percent of Oklahoma City-based Chesapeake. That compares with an 11.11 percent stake owned by Southeastern Asset Management Inc. as of Dec. 31, the largest holding according to the latest filings.

The second-largest U.S. gas producer has been hamstrung as a glut of North American supply pushed prices to an average of $2.82 per million British thermal units so far this year, a 33 percent drop from the 2014 average of $4.26.

Chesapeake shares lost 28 percent of their value since the end of December. If the trend holds through the end of this month, it’ll be Chesapeake’s worst quarterly crash since 2008.

Icahn was among the activist investors who pressured former Chairman and Chief Executive Officer Aubrey McClendon to depart the company in 2013 after a shareholder revolt over the CEO’s personal stakes in company-owned wells.

The last time Icahn increased his Chesapeake holdings was the second quarter of 2013, when shares averaged about $19, according to data compiled by Bloomberg.

Chesapeake rose 3.4 percent to $14.59 at 6:30 p.m. in after-hours trading.


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Billionaire investor Carl Icahn increased his stake in U.S. shale gas producer Chesapeake Energy Corp. for the first time in two years amid the stock's worst quarterly performance since 2008.
Carl Icahn, Chesapeake, Energy, Stock
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2015-39-23
Monday, 23 Mar 2015 09:39 PM
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