Why Midstates Petroleum's Shares Jumped
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 Midstates Petroleum jumped as much as 10% today after the company released earnings.
So what: Revenue more than doubled, to $88.9 million, and the company's loss fell from $39.3 million a year ago, to just $2.4 million, or $0.04 per share. On an adjusted basis, which is what analysts compare to, the company earned a profit of $0.08 per share, above the $0.01 loss that analysts expected.
Now what: The company should continue growing with 30 gross wells spud during the quarter, 12 awaiting completion, and seven drilling. Proved reserves also increased 188% during the year, to 75.5 million barrels of oil equivalent. If the company can keep operations on track and expenses low, the stock should be a winner in 2013.
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The article Why Midstates Petroleum's Shares Jumped 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.
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