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 (NYSE: GDP) jumped 12% today after a competitor said it was lowering natural gas production.

So what: Chesapeake Energy (NYSE: CHK) said it was cutting back natural gas production by 500 million cubic feet per day and would reduce investments in gas fields by 70% this year. Natural gas futures jumped 10% on the news, and natural gas investors breathed a sigh of relief.

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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