Cobalt International Energy Shares Popped: What You Need to Know
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 Cobalt International Energy (NYS: CIE) fell 10% in intraday trading today after the company said it was having technical difficulties in Angola.
So what: The company will be abandoning one of two wells in Angola because of a technical problem. This puts into question when drilling might resume on a new well -- and therefore pushes out any cash flow potential.
Now what: That will impact the future, but reported results for the second quarter, which also came out today, were actually better than expected. Cobalt reported a $0.05 loss per share, which beat estimates by $0.03. But that little bit of good news was quickly overshadowed by the failure in Angola.
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