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 Quicksilver Resources (NYSE: KWK) dropped 14% today after the oil and gas company reported earnings.
So what: First-quarter production dropped from 358 million cubic feet of natural gas equivalent per day, or MMcfed, to 246 million MMcfed and is expected to be 255-260 MMcfed next quarter. The result was a loss of $0.08 per share, which was a penny worse than expected.
Now what: Management has lowered debt to keep the company solvent, but still can't make meaningful progress in making a profit. Quicksilver has been swimming in red ink for a long time now, and it's simply a company I wouldn't bet on. There are better ways to play the energy market right now, particularly as liquids production increases around the country.
