Why Shares of Halcon Resources Corp. Popped Today

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 Halcon Resources  (NYSE: HK  ) jumped as much as 13% today after reporting earnings.

So what: First quarter revenue jumped 44% to $275.1 million and easily passed the $256.1 million analysts expected. Adjusted for one-time items, net income was $11.9 million, or $0.03 per share, a penny ahead of estimates.  

Now what: Besides the solid results, management is looking to sell noncore assets if the price is right in 2014. But production isn't expected to increase much this year with first-quarter production of 36,622 barrels of oil equivalent per day (Boe/d) and full-year guidance of 38,000 to 42,000 Boe/d. I'd like to see more production growth or higher earnings before jumping in, but beating earnings was an incremental positive last quarter.

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