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 Cimarex Energy (NYS: XEC) jumped 17% today after the company released earnings.
So what: Fourth-quarter revenue increased 6% to $417.5 million and earnings per share were $1.36, $0.06 better than estimates. Like other energy companies, Cimarex said it would focus most of its 2012 capital spending on oil-rich or natural-gas-liquid plays instead of natural gas, due to low natural gas prices.
Now what: The transition to liquids should come as no surprise and will be a positive move for the company. I'm also encouraged by the stronger results, especially because this was the third straight quarter results have beaten estimates. Hopefully the company can translate a focus on liquids into further revenue growth in the coming quarter.
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At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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.
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