(Click for video linked to a searchable transcript of this Mad Money segment)
Few parts of the market are moving more rapidly than the energy sector. And a announced Wednesday could potentially change the game in the Gulf of Mexico.
Specifically, Energy XXI announced a deal to buy its closest rival, EPL Oil & Gas, for $39 per share, or $1.53 billion, a premium of about 34 percent to EPL's Tuesday close.
The merger creates the largest publicly held independent oil producer on the Gulf of Mexico shelf and allows Energy XXI to compete more aggressively in the domestic energy renaissance underway in North America.
The move is expected to boost Energy XXI production to about 65,000 barrels of oil equivalent per day (boepd). (The company produced about 45,100 boepd in the second quarter ended Dec. 31.)
Shortly after the announcement became public, Energy XXI CEO John Schiller talked about the details with Jim Cramer on CNBC's "Mad Money."
"We think, at the end of the day, this is going to be the greatest acquisition for shareholders," said Schiller. "The properties fit together likes gloves."
Schiller explained that EPL offers areas of expertise that Energy XXI currently lacks and that the expertise can be leveraged against current assets. Conversely, "we do a good job on the production and technology side and what we do should benefit their fields. It's a very good marriage of the two technical teams."
Cramer thinks the acquisition presents a significant opportunity for investors.
Because part of the transaction will be funded with new stock, shares of Energy XXI fell sharply on Wednesday, ending the session down about 8 percent.
"To me, that smells like it might be a bargain," Cramer said.
-----------------------------------------------------------------
Read more from Mad Money with Jim Cramer
Bullish declines? Cramer says yes!
Growth bulls for rent
2 stocks that deserve more attention
-----------------------------------------------------------------
"See, Energy XXI has a history of making acquisitions and then using science and technology to get more out of their newly purchased oilfields than anybody even thought was there."
Cramer says the acquisition could be accretive over time.
"In addition, EPL has deeper shelf assets that it hasn't been able to exploit because its balance sheet was just too weak. The combined company should be able to explore these deeper shelf holdings, too," he said.
—Reuters contributed to this article.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? madmoney@cnbc.com
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com