Carl Icahn Boosts Stakes in Cheniere Energy, Freeport McMoRan ~ market folly

Monday, September 21, 2015

Carl Icahn Boosts Stakes in Cheniere Energy, Freeport McMoRan

Activist investor Carl Icahn has recently filed two amended 13D's with the SEC regarding his positions.

Boosts Cheniere Energy Stake

First, Icahn has disclosed a 9.59% stake in Cheniere Energy (LNG) with over 22.68 million shares.  This is an increase from the 19.35 million shares Icahn had exposure to when he first disclosed his position.

The new filing was made due to activity on September 14th, though he was also out buying on September 9th-11th at prices between $52.81 and $54.75.

Per Google Finance, Cheniere Energy is "an energy company engaged in Liquefied natural gas (LNG) businesses. The Company operates through two segments: LNG terminal business, and LNG and natural gas marketing business The Company owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners, L.P. (Cheniere Partners), which is a publicly traded limited partnership. The Company owns 100% of the general partner interest in Cheniere Partners and 80.1% of Cheniere Energy Partners LP Holdings, LLC (Cheniere Holdings), which is a publicly traded limited liability company that owns a 55.9% limited partner interest in Cheniere Partners. The Company is engaged in the development of two LNG terminal projects: the Sabine Pass LNG terminal in western Cameron Parish, Louisiana, and the Corpus Christi LNG terminal near Corpus Christi, Texas."

Increases Freeport McMoRan Position

Second, Icahn has also just revealed an increased position in Freeport McMoRan (FCX).  Per the 13D, he now owns 8.8% of the company with 100 million shares (via exposure from forward contracts).  You can view all the fine print about his exposure here.

The filing was made due to activity on September 18th and is an increase from the 88 million shares he previously had exposure to.  Icahn initially revealed a new FCX stake in late August.

Per Google Finance, Freeport McMoRan is "a natural resource company with an industry portfolio of mineral assets, oil and natural gas resources, and a production profile. FCX has organized its operations into six primary divisions: North America copper mines, South America mining, Indonesia mining, Africa mining, Molybdenum mines, and United States oil and gas operations. The Company’s portfolio of assets includes the Grasberg minerals district in Indonesia, mining operations in North and South America, the Tenke Fungurume (Tenke) minerals district in the Democratic Republic of Congo (DRC) in Africa, and oil and natural gas assets in North America. The Company is also engaged in operating copper conversion facilities located in North America, and a refinery, three rod mills and a specialty copper products facility. The Company’s Atlantic Copper smelts and refines copper concentrates and markets refined copper and precious metals in slimes."

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