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 explorer Clayton Williams Energy (Nasdaq: CWEI) jumped 23% today after the company released earnings.

So what: Revenue rose 16% to $101.1 million, but the bottom line is what really impressed this quarter. Earnings per share exploded to $74.5 million, or $6.13 per share, from $0.96 a year ago.

Now what: Before we get too excited, there was a derivatives gain of $92.3 million in the quarter versus a loss of $4 million a year ago. That gain alone accounts for the outstanding earnings growth and then some. Production did increase more than expected, but I think this move is a bit overdone even after a great-looking quarter on the surface.

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