Why InterOil Shares Popped Today
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 energy explorer InterOil jumped 18% today after the company reported earnings.
So what: Third-quarter revenue dropped 6.6% to $305.2 million and the company swung to a net loss of $6.3 million, or $0.13 per share. Management also announced a $250 million secured syndicated capital expenditure facility, which will fund the company until it can complete asset sales.
Now what: The loan is a lifeline that will keep InterOil afloat until assets in Papua New Guinea are up and running or other asset sales are completed. The company is making progress in Papua New Guinea, announcing a seismic data acquisition and drilling program that will drill six wells in the area. This has been a high-potential stock for a long time, but with the loss last quarter and many unknowns in the future it's too risky for me to bet on right now.
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The article Why InterOil Shares Popped Today 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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