The recent uptick in oil prices has failed to bring relief to investors in Jagged Peak Energy as the company\u2019s weak earnings performance continues to hang heavy on confidence. The oil producer had missed estimates on both top and bottom lines the last time it reported results, but investors might have made a mistake by dumping the stock.\r\n\r\nLet\u2019s see why.\r\nJagged Peak is Operationally Sound \r\nDuring the first quarter of 2019, Jagged Peak Energy delivered oil production of 28.1 MBbls per day. This represents an increase of 29% year over year. Overall production volumes increased 33% as compared to the year-ago period.\r\n\r\nHowever, weak oil prices turned out to be an Achilles heel for Jagged Peak. The company was hamstrung by a 24% decline in the combined unhedged realized price during the first quarter, as a result of which its revenue remained almost flat as compared to the year-ago period.\r\n\r\nJagged Peak tried its best to offset the weak oil pricing scenario. It reduced its drilling, completion, and equipment costs to just $1,300 per lateral foot during the quarter. By comparison, Jagged Peak\u2019s D&C cost averaged $1,450 an ounce last year. Looking ahead, investors can expect further drops in the company\u2019s costs as it expects its D&C costs to average $1,250 a lateral foot in 2019.\r\n\r\nThere was a lot to like for the company during the quarter \u2014 the only sore point being weak oil prices. But the good part is that oil prices have started rising once again.\r\nAll Set to Step on the Gas\r\nWTI crude oil is close to hitting $60 per barrel once again, driven by the potential truce between the U.S. and China in their trade war. But this is not the only catalyst for oil prices, as OPEC and its allies are expected to continue supporting the price of the commodity.\r\n\r\nAs reported by CNBC:\r\n\r\n\u201cIf Russia, Saudi Arabia and the other key OPEC members keep production at the levels they produced in H1-19 they will ensure that the global oil market is not flowing over. They will only have to pay a small restraint while reaping a nice oil price of $60-70 a barrel,\u201d said SEB\u2019s Bjarne Schieldrop.\r\n\r\nIf oil keeps rising or at least maintains the $60 per barrel mark, don\u2019t be surprised to see an improvement in the financial performance of Jagged Peak Energy. In fact, analysts expect the company\u2019s revenue growth to take off next year, rising to the tune of more than 30%. Similarly, earnings growth is expected to take off as well.\r\n\r\nAll of this seems possible in a scenario where oil prices get better, and the good news is that such situations already persist in the market. So Jagged Peak investors would do well to build their long positions right now before the stock takes off in the future.