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 Cabot Oil & Gas (NYSE: COG) have gained as much as 12.9% in early trading on tremendous volume, and they seem intent to keep climbing.

So what: The catalyst is a fourth-quarter earnings report with slightly disappointing earnings but acceptable sales. The good news propelling the stock consists of increased production guidance and a confidence-boosting update on operations.

Now what: Cabot delivered admirable performance despite low unit prices and gave optimistic guidance even though management expects the soft pricing environment to stick around. That might be too conservative a view in the light of recent events. Could this be the start of a turnaround for the embattled oil and gas producer?

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