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 oil and gas company TransGlobe Energy (Nasdaq: TGA) fell 16% at the open this morning after the company reported earnings.

So what: A damaged pipeline in Yemen ended up shutting down about 2,300 barrels of oil per day (bopd) in the quarter and had a huge impact on earnings. Earnings per share in the second quarter were just $0.29 and fell well short of the $0.40 analysts expected.

Now what: Oil’s drop today didn’t help matters, but management does expect full-year production to be between 13,000 and 13,500 bopd. I would be more concerned about the falling price of oil than anything else, because estimates from analysts put TransGlobe’s forward P/E at 6 times earnings right now. That could change after this report, but if oil recovers, this stock could become a real bargain.

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