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 onshore oil and gas explorer Brigham Exploration (Nasdaq: BEXP) fell 10% today after the company released earnings.

So what: Revenue increased to $40 million from $32.6 million last year, but analysts were expecting $76.5 million in revenue, so you can see why investors were disappointed. Earnings per share came in at just a penny, well below the $0.25 analysts expected.

Now what: Hedging has its pluses and minuses, but this quarter it came back to bite Brigham. The company had $36.0 million in unrealized hedging losses in the quarter, which had the effect of lowering revenue and therefore profit as well. Brigham has limited its upside with hedging throughout 2011 and 2012, so this could be a drag on results.

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