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NEW YORK (TheStreet) -- FX Energy (FXEN) was jumping 19.1% to $5.54 Wednesday after reporting an estimated production rate of 24 million cubic feet a day (mmcf/d) for its Tuchola field.

The estimated production rate is based on the production test on the Tuchola-4K well the company first reported on April 21.The calculated absolute flow rate for the Tuchola-4K well was 117 mmcf/d, compared to a calculated absolute flow rate of 98 mmcf/d ffor the Tuchola-3K well. FX Energyt expects estimated initial stabilized production rate for the two wells to be about 24 mmcf/d.

In a statement vice president of operations for FX Energy call the flow rates "significantly better than we had hoped."

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TheStreet Ratings team rates FX ENERGY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate FX ENERGY INC (FXEN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, FX ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, FXEN has managed to keep a strong quick ratio of 2.04, which demonstrates the ability to cover short-term cash needs.
  • FXEN, with its decline in revenue, slightly underperformed the industry average of 7.5%. Since the same quarter one year prior, revenues fell by 12.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • FX ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FX ENERGY INC swung to a loss, reporting -$0.23 versus $0.08 in the prior year. This year, the market expects an improvement in earnings (-$0.06 versus -$0.23).
  • The gross profit margin for FX ENERGY INC is currently very high, coming in at 73.37%. Regardless of FXEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FXEN's net profit margin of 44.26% significantly outperformed against the industry.
  • You can view the full analysis from the report here: FXEN Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.