Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Midstates Petroleum'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: Sharees of energy producer Midstates Petroleum (NASDAQOTH: MPOYQ  ) fell 10% today after the company reported earnings.

So what: Revenue rose 23% during the quarter to $126.0 million and the company swung to a profit of $629,000, or $0.01 per share. On an adjusted basis, the company lost $0.06 per share versus estimates for a $0.04 profit from Wall Street.  

Now what: Midstates is folding the recent Panther acquisition into the company so results were a bit unpredictable for the quarter. My bigger concern would be the company's value at over 20 times this year's earnings estimates, which will fall after the earnings miss. That's not enough value to jump in now but keep an eye on growth on both the top and bottom lines for signs that the value is getting better.

Interested in more info on Midstates Petroleum? Add it to your watchlist by clicking here.

Read/Post Comments (1) | Recommend This Article (0)

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 September 01, 2013, at 3:37 PM, adasand wrote:

    MPO is way undervalued, I think it is staying low because of the fear of another common share offering. If you listen to the conference call, Crum says, they will try to reduce the leverage to 1/2 (I think), even if they did so, still the companies P/B would be close to 0.5. This is a stock with easy 50% upside at current prices, a definite buy.

Add your comment.

Compare Brokers

Fool Disclosure

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: 2581946, ~/Articles/ArticleHandler.aspx, 10/1/2016 1:16:11 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...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes