Mad Money

Cramer: Subtle message from Aubrey McClendon?

Cramer: Aubrey McClendon 'a visionary'

(Click for video linked to a searchable transcript of this Mad Money segment)

New developments involving energy mogul Aubrey McClendon suggest to Jim Cramer that the energy revolution underway in North America, may be bigger than even he expected.

You may remember McClendon as the beleaguered former CEO of Chesapeake Energy, who stepped down in April 2013 amid intense scrutiny of his business dealings.

However, since that time, McClendon has started a new company called , and this week his firm announced with Cramer most intrigued by McClendon's $2.5 billion spend, for 63,000 acres in the Permian Basin.

"Aubrey is universally known as a shrewd accumulator of properties," Cramer explained.

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"Yet, Aubrey's buying his acreage with a very high price tag: $156,000 per flowing barrel according to reports about the transaction," Cramer explained.

The question becomes, why is McClendon paying so much, especially for an oil field that's 100 years old?

After sifting through details of the purchase, Cramer believes there are several powerful messages. "First, I think McClendon is telling us that the Permian is pure gold; horizontal drilling is able to unlock that much oil and gas."

Also Cramer thinks McClendon is saying that new pipelines will soon open, and as they do, the opportunities will grow exponentially larger.

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"Aubrey is a visionary," Cramer said. "He's also shrewd. I don't think he would have bought the quantity of acreage he bought at the price he paid, if he didn't believe there was a lot of money to be made."

Because of the purchase, "I have to wonder just how much more Pioneer, currently valued at $31 billion, might be worth. I often talk about EOG because it's so levered to the Permian but Apache and Occidental have some terrific acreage, too."

All told, Cramer thinks McClendon is sending a clear message. Opportunity in the Permian is substantial. "I think Aubrey's deal revalues all of these stocks, higher."

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