Oil stock Centennial Resource Development (NASDAQ: CDEV) went on a choppy ride on Wednesday, plunging and bouncing through the day. As of 2:30 p.m. EDT, the stock was down 9.2%.
The market was reacting to the oil producer's second-quarter numbers, which were released after market close on Aug. 3. Centennial incurred a big loss during the quarter despite significantly higher oil prices, and that didn't sit well with investors. However, there's more to this than meets the eye.
Centennial's net oil production was substantially lower in Q2, but revenue more than doubled to $232.6 million, thanks to higher average realized prices for oil. While its top-line growth handily beat consensus estimates, Centennial ended up incurring a net loss of $0.09 per share, versus a profit of $0.02 in the year-ago period.
For further details see:
Why This Small-Cap Oil Stock Plunged Today, Despite a Solid Outlook