Why Endeavour International 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 independent oil and gas company Endeavour International climbed 10% today after its quarterly results topped Wall Street expectations.
So what: The stock has slumped over the past year on cash concerns and general energy malaise, but today's Q2 results -- loss of $12.6 million versus a loss of $17.4 million in the year-ago period -- are easing some that worry. In fact, sales volumes for the quarter -- 14,497 barrels of oil equivalent per day versus 4,677 boepd in the year-ago period -- were affected by two liftings at its important Alba field, giving analysts plenty of good vibes about the development.
Now what: Don't expect the momentum to slow anytime soon. "We remain focused and are making progress on operational matters related to the commencement of first production at Rochelle and improved performance at Alba," said Chairman and CEO William Transier. "The start-up of production from the Bacchus B-1 development is another achievement for the Company. The performance of this field continues to be very positive." So while Endeavour might still be too speculative for average investors, today's positive results, coupled with the fact that the shares remain well off their 52-week high, make the stock an interesting pick for energy-savvy Fools.
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The article Why Endeavour International Shares Popped originally appeared on Fool.com.Fool contributor Brian Pacampara 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.