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 Goodrich Petroleum
So what: Chesapeake Energy
Now what: The price of natural gas has been hitting record lows, and it was only a matter of time before someone blinked. Since Chesapeake is one of the biggest producers in the country, this is at least a positive sign in the short-term for smaller natural gas producers. To put this production cut into perspective, Goodrich produced an average of 116.2 million cubic feet per day, so this is a big reduction for the industry.
The glut of natural gas will likely continue, though, and I'm not sure this will lead to an extended rally for the industry, but only time will tell.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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