7 Stocks Carl Icahn Can't Get Enough of

 |  Includes: BMY, CHK, CMC, ENZN, HAIN, LWSN, MSI
by: Investment Underground

Corporate raider and activist investor Carl Icahn has been busy both making news and adding positions to Icahn Capital Management’s portfolio.

Earlier this month, he told investors he’d be returning shareholder money, and stated:

Given the rapid market run-up over the past 2 years and our ongoing concerns about the economic outlook, and recent political tensions in the Middle East, I do not wish to be responsible to limited partners through another possible market crisis.

That being said, in the period ending 12/31/2010, he added positions in the seven companies below. We computed the position size of his seven newest stock holdings and have added some commentary on our favorite Icahn investment, Chesapeake Energy (NYSE:CHK).



Number of Shares Owned

% Weighting of Portfolio

Motorola Solution


30.64 million


Chesapeake Energy


20.88 million


Amylin Pharmaceutical


14.38 million


Hain Celestial Group


5.35 million


Lawson Software


13.58 million


Commercial Metals Company


3.69 million


Enzon Pharmaceutical


4.72 million


Click to enlarge

During the period, Ichan increased his position in Chesapeake Energy (CHK) 25.46%. The company announced recently that it would sell ~487,000 net acres of leasehold and producing natural gas properties in the Fayetteville Shale play in central Arkansas to BHP Billiton Petroleum (BHP) for $4.75 billion in cash. This includes existing net production of approximately 415 MMcfe of natural gas equivalent per day and midstream assets with approximately 420 miles of pipeline.

The company began 2010 with estimated proved reserves of 14.254 tcfe and ended the Q3 2010 with 16.223 Tcfe, an increase of 1.969 Tcfe, or 14%. It is also the second largest producer of natural gas and a Top 20 producer of oil and natural gas liquids in the US. It owns interests in approximately 45,100 producing natural gas and oil wells that are currently producing approximately 2.8 Bcfe per day, 88% of which is natural gas. Its strategy is focused on discovering and developing unconventional natural gas and oil fields onshore in the U.S., primarily in its "Big 6" shale plays: the Barnett Shale in the Fort Worth Basin of north-central Texas, the Haynesville and Bossier Shales in the Arkansas-Louisiana-Texas area of northwestern Louisiana and East Texas, the Fayetteville Shale in the Arkoma Basin of central Arkansas, the Marcellus Shale in the northern Appalachian Basin of West Virginia, Pennsylvania and New York and the Eagle Ford Shale in South Texas.

The company also has substantial operations in the liquids-rich plays of the Granite Wash in western Oklahoma and the Texas Panhandle regions, the Niobrara Shale and Frontier Sand plays of the Powder River and DJ Basins of Wyoming and Colorado, as well as various other liquids-rich plays, both conventional and unconventional, in the Mid−continent, Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast and Arkansas−Louisiana−Texas regions of the U.S. We have vertically integrated our operations and own substantial midstream, compression, drilling and oilfield service assets.

The company announced earlier this year that it is extending its strategy to apply the horizontal drilling expertise gained from its natural gas plays to unconventional oil reservoirs. The goal is to reach a balanced mix of natural gas and liquids revenue as quickly as possible through organic drilling, rather than through acquisitions. This transition is already apparent in the mix of natural gas and oil and natural gas liquids wells it drills. In 2010, the company expected that ~31% of drilling and completion capital expenditures will be allocated to liquids-rich plays, compared to 10% in 2009, and it is projecting that these expenditures will reach 65% in 2012. The company now owns approximately 3.1 million net leasehold acres in unconventional liquids-rich plays.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.