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What: Shares of oil and gas explorer Miller Energy Resources Inc (NASDAQOTCBB:MILL) continued to fall Wednesday, dropping another 12% at its bottom.

So what: This follows a drop Tuesday after the company reported earnings. For the fiscal fourth quarter, the company reported a nearly three-fold jump in revenue to $22.1 million but adjusted net loss ballooned to $17.2 million, or $0.38 per share. Analysts had expected revenue of $22.1 million and a loss of just $0.14 per share. 

Now what: Production and revenue is growing, but the continued losses are a concern because Miller Energy isn't exactly sitting on a strong balance sheet. Cash stood at just $6.4 million at the end of last quarter and even after receiving $21.8 million in Alaska production credits the continued quarterly losses can't continue. I'd take a cautious approach to Miller and wait for income and cash flow to improve, but there's upside if production continues to grow like it has recently.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.