Icahn raises stake in Chesapeake Energy to 11 percent

Mon Mar 23, 2015 7:53pm EDT
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(Reuters) - Activist investor Carl Icahn raised his stake in Chesapeake Energy Corp (CHK.N: Quote) to almost 11 percent even as the company continues to cope with low oil and gas prices.

Chesapeake's stock rose 3.8 percent to $14.64 in late trade.

Icahn increased his stake to 10.98 percent from 9.98 percent with 73.05 million shares held in Chesapeake, according to a regulatory filing on Monday. (1.usa.gov/1HsJzA0)

Icahn will remain the second-largest owner in the company with his increased stake, according to Thomson Reuters data.

In a separate announcement, Chesapeake further reduced its 2015 capital budget to a range of $3.5 billion to $4 billion from $4 billion to $4.5 billion in response to low crude oil prices. The company reported capital expenditures of $6.7 billion in 2014.

Icahn said in February he believed oil prices would continue to decline in the near term.

Last year, Icahn's publicly traded investment fund Icahn Enterprises LP (IEP.O: Quote) posted its first annual loss since 2008, undone by plummeting oil prices.

U.S. oil prices CLc1 have fallen by 50 percent since June to below $50 per barrel as growing supplies of oil from shale and oil sands in North America overwhelm weak global demand.

(Reporting by Kanika Sikka in Bengaluru; Editing by Bernard Orr)

Billionaire activist investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York February 11, 2014.  REUTERS/Brendan McDermid