Why PDC Energy'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 energy company PDC Energy jumped 14% today after the company released earnings.

So what: The company increased revenue by 9.2% in the quarter to $108.6 million, ahead of estimates, but the bottom line came with a big shocker. The company recorded a $166.7 million impairment charge and that pushed the company to a $126.2 million loss, or a whopping $4.17 per share.  


Now what: The charge is related to the company's Piceance Basin proved oil and natural gas properties and doesn't look good on the balance sheet. The company would have had a loss even without the charge, something that will keep me away from the stock for now. I need to see more production improvement, and serious improvement on the bottom line, before speculating on this stock.

Interested in more info on PDC Energy? Add it to your watchlist by clicking here.

The article Why PDC Energy's Shares Jumped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDrawThe 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum