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What: Shares of independent oil and gas company Clayton Williams Energy (NYSE:CWEI) jumped 13% today after the company reported earnings.

So what: Third quarter revenue rose 3.2% from a year ago to $111.2 million, which may not sound impressive, but it crushed the $97.5 million consensus estimate. On the bottom line, earnings per share of $0.90 beat estimates of $0.69 in earnings.  

Now what: The company sold 95% of its oil and gas operations in Andres County, Texas, which makes the revenue comparison a little misleading. Despite the fact that production fell 12% from a year ago because of the sale, revenue increased because average realized oil prices increased to $103.75 from $89.48 per barrel a year ago. Gas prices also increased to $3.49 per Mcf from $3.29 a year ago. With oil prices down since then I think there will be pressure on earnings going forward, but Clayton Williams is on the right track operationally.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.