Activist investor Carl Icahn said he is pleased with the new board at Chesapeake and that he is not interested in selling out just yet.
In an interview on CNBC Monday, he seemed to embrace a long-term view of the Oklahoma City energy company.
I think natural gas prices are going to go quite a bit higher and Chesapeake will be there to take advantage of it. I think — I hope you’re going to see a much higher price on Chesapeake. I would not sell it at all now,” Icahn said.
The billionaire investor repeated his view on the company and CEO Aubrey McClendon.
Chesapeake is in my mind a very undervalued asset,” Icahn said. “I think that Aubrey is a very bright guy. He’s put a lot of great assets together. The problem is they couldn’t afford to buy some of them. They gambled too much in buying them, and therefore you have this cash gap. You have to cut expenses drastically there. I think you can.”
Icahn began the interview by criticizing biotech company Forest Laboratories CEO Howard Soloman over the timing of his stock sales.
The discussion of Chesapeake begins at 7:38.