Why TransGlobe Energy's Shares Dropped
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 TransGlobe Energy dropped 13% today after the company reduced guidance.
So what: Management lowered its 2013 production guidance from 21,000 to 4,000 barrels of oil per day to 19,000 to 20,000 barrels per day. The previous guidance figure was given in early May, so this is a quick reversal in the company's expected progress this year.
Now what: Management said a portion of the planned production was delayed into 2014 and was outside of the company's control. Even so, investors weren't happy, and it doesn't look like production will grow much in 2013. It still expects $145 million in cash flow from operations this year, and that's not terrible for a company with a $450 million market cap, so I wouldn't panic too much today.
Interested in more info on TransGlobe Energy? Add it to your watchlist by clicking here.
The article Why TransGlobe Energy's Shares Dropped originally appeared on Fool.com.Fool contributor 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.