Clayton Williams Energy Shares Popped: What You Need to Know (CWEI)

Clayton Williams Energy Shares Popped: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 independent oil and gas explorer Clayton Williams Energy (Nasdaq: CWEI ) jumped 23% today after the company released earnings.

So what: Revenue rose 16% to $101.1 million, but the bottom line is what really impressed this quarter. Earnings per share exploded to $74.5 million, or $6.13 per share, from $0.96 a year ago.

Now what: Before we get too excited, there was a derivatives gain of $92.3 million in the quarter versus a loss of $4 million a year ago. That gain alone accounts for the outstanding earnings growth and then some. Production did increase more than expected, but I think this move is a bit overdone even after a great-looking quarter on the surface.

Interested in more info on Clayton Williams Energy? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.