Why TransGlobe Energy's Shares Dropped

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 TransGlobe Energy (NASDAQ: TGA  ) dropped 13% today after the company reduced guidance.

So what: Management lowered its 2013 production guidance from 21,000 to 4,000 barrels of oil per day to 19,000 to 20,000 barrels per day. The previous guidance figure was given in early May, so this is a quick reversal in the company's expected progress this year. 

Now what: Management said a portion of the planned production was delayed into 2014 and was outside of the company's control. Even so, investors weren't happy, and it doesn't look like production will grow much in 2013. It still expects $145 million in cash flow from operations this year, and that's not terrible for a company with a $450 million market cap, so I wouldn't panic too much today.

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


Read/Post Comments (2) | Recommend This Article (1)

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 Report this Comment icon found on every comment.

  • Report this Comment On June 20, 2013, at 6:56 PM, JAVKO wrote:

    Please explain what you mean exactly by:

    "Management lowered its 2013 production guidance from 21,000 to 4,000 barrels of oil per day to 19,000 to 20,000 barrels per day."

  • Report this Comment On August 22, 2013, at 10:34 AM, appalossole wrote:

    twas 21000 to 24000 before the change

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2501670, ~/Articles/ArticleHandler.aspx, 11/28/2014 8:50:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement