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Jul.14
7:39 PM ET

Cramer’s favored natural-gas stocks took a weeklong beating, but the success of Chesapeake Energy’s [CHK  Loading...      ()   ] secondary offering heralded their return. He’s talked endlessly about the sector for some time now, covering virtually every company that owns a drill. But he hasn’t spent too much time on the pipeliners, those firms that handle the gas once it’s out of the ground.

Pipeline stocks make good plays because there’s a ton of natural gas being discovered and moved to market right now. The more gas that gets pumped, the more money these guys make. Cramer highlighted Spectra Energy [SE  Loading...      ()   ] back on July 2, and today Williams [WMB  Loading...      ()   ] got the nod.

Williams owns one of the most valuable pipelines in the U.S., the Transco, which stretches from the Gulf of Mexico to the Northeast. This property offers Williams the chance to expand into the mid-Atlantic, too, Cramer said. And there are plans for a pipeline from the Rockies to New York City.

Williams operates a midstream business, where it gathers, treats and processes nat gas. Planned projects total $1.4 billion, with the potential for another $3 billion to $4 billion through 2010.

But this company explores for and produces natural gas as well. If the historical oil to natural gas ratio of 6 to 1 holds true, that doubles the price per 1,000 cubic feet to $24, which should do wonders for WMB's stock.

Sure, President Bush wants more offshore drilling. But there’s little chance that’s going to happen. So why not focus on a much more realistic play on the oil and gas sector? Cramer said Williams is it.




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