Enterprise Products Partners is exactly the kind of stock you need in this lousy environment, Cramer told viewers Monday.
Bonds aren’t providing safety or yields right now, the “Mad Money” host said. That’s why he thinks Enterprise Products Partners , a master limited partnership, is a great way to get yield without stretching. The pipeline operator has a 5.5 percent yield and just raised its distribution by about 1.25 percent.
According to Cramer, it’s all about demand.
“Money comes to these guys because people need pipelines to bring oil to market from all the new domestic finds I talk about here all the time,” Cramer said. “EPD is right in the thick of these new discoveries because they’re building out pipeline capacity areas that are at the heart of the North American drilling boom.”
The company has 50,200 miles of pipe and is committed to spending more than $5 billion over the next several years to expand its infrastructure in several of the shale plays.
What’s more, it also has some ancillary business that alot of other pipeline companies don't have. EPD has 192 million barrels of natural gas liquids storage capacity and 27 billion cubic feet of nat gas storage capacity. It also has a lot of exposure to natural gas liquids.
“EPD has a substantial gas gathering and process biz that helped them blow away the numbers last quarter,” Cramer said, “and thanks to the relative strength of these natural gas liquids, this business should keep working.”
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