Cramer's a fan of pipeline master limited partnerships, or MLPs. Although he often talks about the big boys, here he takes a look at some niche players.
"Smaller pipeline master limited partnerships are levered to specific commodities, like oil, natural gas, and natural gas liquids," Cramer said. "So, in the interest of giving you more options, following are three more names for your radar."
MarkWest Energy Partners
"If you want a pipeline operator that's specifically focused on natural gas, then in my view the most valuable player is MarkWest Energy Partners," Cramer said.
MarkWest provides natural gas gathering, transportation, processing and fractionation services.
"The company's gathering systems are basically small networks of pipelines that collectnatural gas from the wells where it's produced so it can be taken to a larger pipeline. Nat gas processing and fractionation is where you remove contaminants and then separate the pipeline quality natural gas from the nat gas liquids, like ethane and propane. So, if you're a natural gas producer, you need somebody like MarkWest to actually bring your gas to market," Cramer explained.
Although this stock is an MLP, Cramer added that there's a very important distinction between MarkWest and a lot of the other pipeline MLP's that he regularly talks about.
"Unlike Kinder Morgan and Enterprise Products Partners, which I talk about often, MarkWest is not simply a toll road," Cramer said. "The company gets 40% of its cash flows from fee-based business and the rest, comes from a percentage of the gas it processes."
That means this stock has some exposure to fluctuating commodity prices. And the spot price of nat gas has been a source of pain for more than a few investors.
However, the exposure may decline in the years ahead.
"MarkWest is moving aggressively to become more fee-based. By 2015, nearly two-thirds of MarkWest's business is expected to be of the fee-based toll road variety," Cramer said.
Therefore, if you believe that nat gas is the energy of the future, this stock belongs on your radar.