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 oil and gas producer Energy XXI (NYSE: EXXI) plunged as low as 11% today, one day after it announced it would be raising money in a public offering.

So what: Yesterday, management announced the sale of 9.5 million shares of its common stock and 800,000 shares of convertible preferred stock. Naturally, Mr. Market is worried that the capital-raise will be highly dilutive to current shareholders.

Now what: I'd consider looking into today's plunge as a possible opportunity. Just like its Gulf of Mexico partner McMoRan Exploration (NYSE: MMR), Energy XXI has highly attractive reserves but also very high debt levels. With management looking to use the proceeds to significantly strengthen its balance sheet, today's short-term hit might be a small price to pay for more secure long-term production.

Interested in more info on Energy XXI? Add it to your watchlist here by clicking here.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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