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 Athlon Energy Inc (UNKNOWN:ATHL.DL) jumped 11% today after reporting earnings.

So what: Management reported a 109% increased in adjusted EBITDA to $63.3 million in the quarter and a 69% increase in daily production volumes to 12,960 BOE/day. That resulted in adjusted net income of $18.6 million, or $0.24 per share, which was ahead of Wall Street's $0.16 estimate.

Now what: This is the second straight quarter management has crushed estimates and clearly operations are improving rapidly. I think that a $2.6 billion market cap is a reasonable value given the EBITDA growth we saw last quarter. If management continues to exceed expectations the stock has a lot of upside potential, even at today's price.

Fool contributor Travis Hoium has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.