Why Cobalt International Energy's Shares Popped

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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 Cobalt International Energy (NYSE: CIE  ) jumped 10% today after Anadarko Petroleum (NYSE: APC  ) announced an oil discovery.

So what: The oil field is in the Gulf of Mexico and was called a "potentially giant project" by Anadarko's head of exploration. Cobalt owns 20% of the field, so it will see a big impact if the project is as big as initial testing suggests.  

Now what: Analysts are saying this is the largest discovery  in the Gulf of Mexico and may be twice as big as previous estimates. The well is 6 miles deep, and we're still quite a way from generating significant revenue for any company involved. Still, this is major progress for Cobalt, and I think the stock can continue to run higher as it gets closer to generating revenue from this huge project.

Interested in more info on Cobalt International Energy? Add it to your watchlist by clicking here.

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Related Tickers

9/30/2016 9:40 AM
CIE $1.21 Down -0.04 -2.82%
Cobalt Internation… CAPS Rating: ***
APC $62.70 Up +0.12 +0.19%
Anadarko Petroleum CAPS Rating: ****