Activist investor Carl Icahn gave his blessing Friday to Freeport-McMoRan's recent cost cuts, saying battered commodities companies need to take steps to stay afloat.
"I absolutely agree with it ... you have to conserve capital at these companies," he said on CNBC's "Fast Money: Halftime Report."
Icahn holds more than 8 percent of outstanding Freeport stock as its largest shareholder, according to FactSet. The mining giant is among the companies cutting back on dividends and other expenses amid prolonged lower prices for many commodities.
On Wednesday, Freeport suspended its annual dividend and announced deeper reductions in capital spending and copper production. The changes come amid a 70 percent plunge for the stock this year. Pipeline operator Kinder Morgan also slashed its dividend by 75 percent this week.
"These companies I don't think are in danger of a bankruptcy or anything like that," Icahn said.
With his Freeport holdings and nearly 14 percent stake in Cheniere Energy, Icahn has significant exposure to the commodities crunch.
He contended that conditions for the energy sector "could very easily get worse."