Tuesday, March 3, 2009

CHK down 13.7% after cutting production

The energy sector as a whole sold off huge on the day while CHK suffered even more so due to news that the company will further curtail daily production by 240 million cubic feet equivalent/day. The company is also debating a further 10% reduction in drilling activity from their already reduced 110 rig count. These events are to be expected as the economic condition is contributing to reduced commercial demand for natural gas. I maintain my belief in this investment over the long term.

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