Why Centennial Resource Development Stock Fell as Much as 7% Today

Shares of onshore U.S. exploration and production company Centennial Resource Development (NASDAQ: CDEV) fell 7% out of the gate on Nov. 3. Then they shot up to a gain of around 3% before turning lower again and trickling back down to a 7% price decline by roughly 2 p.m. EST. At around 3 p.m., however, the shares had recouped some ground and were off by just 3.5% or so. Here's what was going on.

After the close on Monday, Centennial Resource Development reported earnings. It wasn't particularly great reading, which isn't a surprise given the painful supply/demand imbalance that energy markets are working through. The driller's production fell roughly 10% year over year in the third quarter. Revenue was off by 35%, which was driven by lower production and lower selling prices. The company lost $0.19 per share in the third quarter compared to a loss of a penny a share in the same period of 2019. It's understandable that investors weren't too pleased at the start of the day.

Image source: Getty Images.

Source Fool.com