This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chesapeake Energy vs. Carl Icahn: 2 Burning Questions

NEW YORK (TheStreet) -- It's Aubrey McClendon versus Carl Icahn, as the investor activist makes his play for Chesapeake Energy (CHK).

On Monday, investors reacted to the news that Icahn was getting into the Chesapeake fray enthusiastically, sending Chesapeake Energy shares up to their highest price since June, on the hope that, finally, the long frustrated group who have thrown in their lot with Chesapeake's stock would see the embedded value unlocked.

Icahn is now the second-largest shareholder in Chesapeake Energy, with a 5.9% stake, behind only Southeastern Asset Management, which owns more than 12% of the independent oil and gas producer's shares. Icahn was previously the 6th-largest Chesapeake shareholder, with a 2.5% stake.

The heavyweights of the traditional asset management world which Icahn has now passed among the ranks of Chesapeake shareholders include The Vanguard Group, Blackrock and State Street Global Advisors.

Icahn has been actively increasing his Chesapeake Energy play throughout the year, starting with a first quarter 2010 investment of more than two million shares.

The gradual increase in Icahn's position in Chesapeake Energy was drowned out by Icahn's surpassing of the 5% threshold last Friday: the gloves come off at the 5% level -- or, in the least, Aubrey needs to invite Carl to a white-gloved lunch before they throw down the gloves and declare a duel for the future of the energy company. Indeed, a Chesapeake Energy spokesman said on Monday that the company looked forward to a dialogue with Icahn and they had already met on Monday for a friendly discussion.

In any event, beneath the splashy headlines about the battle that pits the "controversial" and "bull-headed' CEO of one of the energy sector's biggest underperforming stocks versus the long-time activist investor, who only has money on his mind regardless of sector, there are several themes that should resonate for energy investors.

From the outlook for natural gas prices in 2011, to the calculations going through the mind of Carl Icahn and the long-range, long-debated strategy of Aubrey McClendon, not even to mention the long-held Chesapeake shareholder frustration, it's all reached its culmination in Icahn's upping of his Chesapeake stock ante.

Here are 2 key questions to explore as a result of the looming battle between Carl Icahn and Aubrey McClendon.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs