Why LRR Energy's Shares Popped
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 LRR Energy jumped 10% today after updating second-quarter operating results.
So what: Management said that production during April and May averaged 6,450 barrels of oil equivalent per day. That was up from 5,900 Boe/d in the first quarter, and at the high end of the expected production for the year of between 6,250 and 6,550 Boe/d.
Now what: The results were within expectations, but investors clearly think the company can outperform management's guidance this year. They didn't change guidance giving the second quarter results, so officially, the outlook remains the same, but investors' are raising the bar today. I think this is a positive sign, but, with the company posting a loss in the first quarter, I'd like to see a solid profit before jumping in.
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The article Why LRR Energy's Shares Popped 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.