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: Sometimes, life just isn't fair. To shareholders of Concho Resources (NYSE: CXO), this feels like one of those times. Their stock dropped as much as 10% this morning (it's recovered some of that loss since) even though the company reported $0.79 per share in pro forma earnings last night, a number that beat consensus estimates by $0.02.

Not only that; Concho also beat on revenues, collecting 10% more than analysts had expected of it. The news looked so good, in fact, that when it first came out the stock gained 3% in after-hours trading. Talk about adding insult to injury …

So what: Why the reversal of thinking (and fortune)? Maybe this is my bias toward free cash flow-accounting talking, but I suspect that one thing that has investors doing a rethink is Concho's announcement that it plans to up its capital spending by 23% this year. When you consider that the company has already burned through more than $1.7 billion in negative free cash flow over the past year -- that it's in fact only generated positive free cash flow in one year out of the past five -- the prospect of dropping more cash down the oil well may not appeal to investors.

Will Concho Resources ever actually -- you know -- make money at its business? Add it to your watchlist, and find out.

Fool contributor Rich Smith owns no shares of, nor is he short, any company named above. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.