Chesapeake Energy Corp. (CHK) said Thursday it will curb its production by another 200 million cubic feet of natural gas a day in response to lower natural gas prices.

Chesapeake, the largest independent producer of natural gas by volume, has cut its natural gas output by a total 400 million cubic feet, or about 13% of its gross operated natural gas production capacity, since March. The bulk of the production curtailments have occurred in the Mid-Continent and the Barnett Shale, a vast natural gas field in North Texas.

"As a result of recession-related reduced demand and abundant U.S. production, natural gas prices have remained soft in recent months," Aubrey McClendon, Chesapeake's chief executive said in a news release, adding that lower drilling activity will help rebalance the natural gas market by late 2009 or early 2010.

-By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones.com

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