Chesapeake's stock rose 3.8 percent to $14.64 in late trade.
Icahn increased his stake to 10.98 percent from 9.98 percent with 73.05 million shares held in Chesapeake, according to a regulatory filing on Monday. (http://1.usa.gov/1HsJzA0)Icahn will remain the second-largest owner in the company with his increased stake, according to Thomson Reuters data.In a separate announcement, Chesapeake further reduced its 2015 capital budget to a range of $3.5 billion to $4 billion from $4 billion to $4.5 billion in response to low crude oil prices. The company reported capital expenditures of $6.7 billion in 2014.Icahn said in February he believed oil prices would continue to decline in the near term.Last year, Icahn's publicly traded investment fund Icahn Enterprises LP