“Is what’s good for natural gas bad for Lufkin?” Jim Cramer asked Monday on CNBC’s “Mad Money.” He noted that Lufkin shares got hammered today in light of a dramatic slowdown in U.S. drilling for natural gas.
And while the name Lufkin may not be well-known, most are familiar with the “donkeys,” or the oilfield pumping units that Lufkin manufactures — Cramer described them as “the things that go up and down to bring out the oil or the natural gas once the drilling is done.”
Shares of Lufkin were down more than 21 percent by the close of trading on Monday. Meanwhile, Southwestern Energy, Cabot Oil & Gas and Range Resources all roared ahead.
Surprisingly, these opposite swings are “two sides of the same story,” Cramer said.