Why Centennial Resource Development Stock Jumped 8% in Early Trading Today

Shares of exploration and production company Centennial Resource Development (NASDAQ: CDEV) rose roughly 8% at the open on Aug. 4. There wasn't any specific news today, but the company released earnings after the close on Aug. 3. Investors took solace in the fact that things weren't worse.

Centennial posted second-quarter 2020 earnings of $0.02 per share, down from $0.07 in the same period of 2019. However, that was a vast improvement over the writedown-driven loss of $1.99 per share in the first quarter of 2020. There were a couple of key takeaways from the second stanza of the year. Notably, Centennial worked quickly to reduce costs and production in the face of low oil prices. That helped it manage through the difficult period and, based on the choice early in the span to store some of the oil it was producing instead of selling into a weak market, allowed it to be prepared for a time when markets improved. That improvement started to take shape as the quarter progressed.

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Source Fool.com