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Icahn said he plans to talk with the Houston, Texas-based company's management team and perhaps vie for board seats "if appropriate." Discussions will focus on "operations, capital expenditures, financings, and executive compensations," according to a 13D filing.
News of Icahn's interest sent LNG stock surging more than 7% intraday Friday to $70.09.
Icahn sees potential in Cheniere, which is poised to become the first exporter of natural gas from U.S. shale formations.
"The idea of U.S. natural gas exports is so strong and unstoppable, it has the power to change the world," Money Morning Global Energy Strategist Dr. Kent Moors said in April 2014. "It's the result of one of the biggest reversals of fortune I have ever witnessed."
Amid a volatile natural gas market, Cheniere booked a loss of $388.2 million, or $1.71 per share, over the first half of the year. Its revenue was up 1% to $136.4 million.
Natural gas has been the most volatile commodity on the Bloomberg Commodity Index this year. At Thursday's close of $2.81/MMBtu, natural gas is off 2.6% year to date. Over the last 52 weeks, however, the commodity is down 27.4%,
Icahn, a business magnate, savvy investor, and corporate raider, is known for tussling with the boards of companies like Apple Inc. (Nasdaq: AAPL), Yahoo! Inc. (Nasdaq: YHOO), eBay Inc. (Nasdaq: EBAY), and Hertz Global Holdings Inc. (NYSE: HTZ). Additionally, he invested $100 million in Lyft, a startup that competes with ride-hailing service Uber.
Read more about Money Morning's outlook for Cheniere here.
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- Bloomberg: Icahn Doubles Down on Energy With Gas Exporter Stake
- CNBC: Icahn Takes Seat in Cheniere Energy, Seeks Board Seat
- The Wall Street Journal: Carl Icahn Group Discloses 8.18% Stake in Cheniere Energy