Chesapeake Winning Thru Cutting (CHK)

Chesapeak Energy Corporation (NYSE: CHK) is winning by cutting.  In an effort to match production supply with proper demand at a time when natural gas prices are so low, the natural gas player plans to cut its production by about 8%.  In short, the implication is that natural gas production in 2012 could be slightly down for the year.  One reason this really matters is because Chesapeake produces about 9% of the natural gas in America.

Natural gas futures slipped to $2.32 per 1,000 cubic feet last week but ended up around $2.34 on Friday.  T. Boone Pickens recently opined that natural gas could end up with a “one-handle” on it, meaning natural gas could go under $2.00, before a bottom gets put into place.