Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of InterOil (NYSE: IOC) fell 12% today as pressure on the company’s liquid natural gas, or LNG, project continues.

So what: Last week, InterOil’s shares plunged after Papua New Guinea’s government said the current LNG project the company is planning doesn’t meet their previous agreement. Today, shares are sinking after the company hired Morgan Stanley (NYSE: MS) and UBS (NYSE: UBS) to find a joint partner for the LNG project.

Now what: InterOil almost certainly needs a partner for the project simply based on the size the government of Papua New Guinea is requiring. The question now becomes how good, or bad, the terms of that venture will be for InterOil. LNG is attractive when oil prices are high, but with oil sinking it’s hard to see why experienced LNG operators will bid attractive prices for the project.

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