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 Swift Energy (NYSE:SBOW) dropped as much as 26% today after the energy explorer reported earnings.

So what: Fourth-quarter revenue dropped 7.5% to $146 million and narrowly missed analysts' estimates. Adjusted earnings of $0.13 per share were also in line with estimates. However, management said it expects production in 2014 to be between 11.3 and 11.8 million barrels of oil equivalent, which will likely be down from 11.75 million barrels of oil equivalent in 2013.  

Now what: A decline in production would likely hurt earnings and that's why the stock is down big today. It looks like management expects a steady decline in production from the fourth quarter as well. That will keep me out of the stock today, but it's worth pointing out that proved reserve volumes were up 14% last year, which is a good sign for long-term value.

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