Billionaire Carl Icahn’s Favorite Energy Stocks

#3 CVR Energy, Inc. (NYSE:CVI)

– Shares Held (as of June 30): 71.2 million
– Total Value (as of June 30): $1.1 billion

Like the two stocks mentioned before, Icahn lived up to his long-term investor persona and maintained his stake of 71.2 million shares in CVR Energy, Inc. (NYSE:CVI) despite the stock’s weak price action. Due to the previously mentioned narrowing of the crack spread, shares of CVR have steadily retreated since the beginning of 2016 and are now down by 56% year-to-date. Analysts at Goldman Sachs think the pain might soon be over, however, as they recently upgraded the stock to ‘Neutral’ from ‘Sell’ and set a $15 price target on it, though the stock has quickly eclipsed that mark, gaining 11% in the last three trading sessions. If the spread between inputs and products widens enough, CVR could do well.

#2 Freeport-McMoRan Inc (NYSE:FCX)

– Shares Held (as of June 30): 104 million
– Total Value (as of June 30): $1.16 billion

Although various analysts and many shareholders didn’t like the fact that Freeport-McMoRan Inc (NYSE:FCX) recently sold its offshore Gulf of Mexico assets to Anadarko Petroleum Corporation (NYSE:APC) for $2 billion, Icahn was a fan of the deal, saying:

“Yesterday’s announcement demonstrates the Company is making good on its stated goal of deleveraging and is on track to cut its net debt by half, from year end 2015 through the end of next year, at current copper prices. I applaud management and the whole Board of Directors for all steps taken in this regard… I completely endorse CEO Richard Adkerson’s recent comments that Freeport is “…open for all strategic moves, whether that means selling assets, [or] selling the company” to create value for all shareholders.”

Although Freeport-McMoRan could have potentially gotten more from the sale if it had waited and crude prices rose, Icahn is of the firm belief that deleveraging and focusing on the company’s core is the better choice for now. Icahn’s fund owned 104 million shares of the copper and energy company at the end of June.

#1 Cheniere Energy, Inc. (NYSEMKT:LNG)

– Shares Held (as of June 30): 32.68 million
– Total Value (as of June 30): $1.23 billion

While the near- and medium-term prospects for the LNG sector are muddy at best, Icahn maintained his stake of 32.68 million shares of Cheniere Energy, Inc. (NYSEMKT:LNG) during the second quarter, which was worth over $1.2 billion and accounted for 6.05% of the activist’s equity portfolio at the end of June. Like Icahn, many smart money funds also chose to stay put with their Cheniere stakes during the quarter. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 42 were long $4.51 billion worth of Cheniere Energy, Inc. (NYSEMKT:LNG) shares on June 30, which accounted for a gargantuan 51.00% of the float, making it one of the stocks hedge funds are most overweight. If LNG demand in Asia accelerates faster than expected, Cheniere will do well.

Disclosure: None