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...
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 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.
Falling oil can hinder explorers
Oil exploration is booming, but not all explorers are making big profits. As oil becomes harder to find, more money is spent on equipment and services, which is increasing demand for service providers. Our top analysts prepared a free report that reveals three stocks that are bound to soar as exploration expands, without betting so directly on the price of oil. To discover the identities of these stocks instantly, access your free report by clicking here now.