GO
Loading...

Behind the Boom: Gas producer too cheap?

As sellers hit energy stocks, Jim Cramer suggests buying strategically.

Long-term, the "Mad Money" host believes there's opportunity in the energy sector that outweighs any near-term headwinds.

"Remember, we're in the middle of a domestic energy renaissance that's transformed American oil and gas producers into some of the fastest growing companies around, and that growth doesn't go away just because their products have come down in price for the moment," Cramer said.




Source: CNBC

And of the many, many stocks in this space that Cramer has profiled, down 15 percent in 3 months, the "Mad Money" host thinks Range Resources belongs on your radar, right now.

"Range Resources is among the lowest cost producers in the space, with truly spectacular production growth," Cramer noted. "Wall Street expects the company's total production to increase by 22 percent this year and by 27 percent in 2015."

And with acreage in Pennsylvania's Marcellus shale, along with exposure to Ohio's Utica shale, the Nora field in Virginia, the more oily Mid-Continent play in Oklahoma and Texas, and some relatively untapped assets in Texas' red hot Permian Basin, Cramer thinks Range Resources is in the sweet spot.

That is, in years to come, he believes natural gas will become the fuel of choice for a wide range of items, from cars and trucks to utility grids, in part, because it's a cleaner alternative to other fuels, and in part, because of its abundance here in the US.

"The US is now the number one natural gas producer in the world," explained Range Resources CEO Jeffrey Ventura on "Mad Money." "I'm not sure how many Americans know that."

-----------------------------------------------------------
Read more from Mad Money with Jim Cramer
For bears, market riddled with landmines
Cramer thrilled UPS slashed forecast
New company to be coveted by pros
-----------------------------------------------------------

Therefore Cramer sees a long position in a stock such as Range Resources as a bet on the nation's energy future. And given the recent selloff, he thinks establishing a new position on the decline makes all the sense in the world.

Of course shares could fall further, especially if the spot price of nat gas slides lower, however, over time Cramer sees every reason for shares to rise. "Is this the bottom, I don't know. But look at what they've got; fabulous resources and declining costs to get it out. If you're looking for a stock to buy and put away, I'd look at Range Resources" Cramer said.




Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book