Top Stories
Top Stories

Skip Park Place, go directly to Boardwalk: Cramer

Cramer: BWP growth pipeline play

In Monopoly, Boardwalk is among the most coveted assets to own. Now, in the market, Boardwalk may be a stock worth coveting, too.

This kind of Boardwalk, however, is a far cry from Atlantic City's famed pier.

Instead, the Boardwalk Jim Cramer is talking about is "a $4.7 billion company that owns three interstate natural gas pipelines, and 11 underground natural gas storage stations that span some of our country's top oil and gas reserves, including the Permian, Eagle Ford, Marcellus, and Woodford shales," Cramer said.

Monopoly game
Getty Images

Although Cramer is broadly bullish on the renaissance underway in domestic energy, he's particularly keen on Boardwalk for the following reasons:

1. Boardwalk has spent $1.2 billion on acquisitions over the past two years, which should generate great synergies.
2. Boardwalk has invested $300 million on organic growth opportunities.
3. New projects underway, such as plans to reverse a pipeline between Ohio & Louisiana, could boost the bottom line.

Potentially giving the stock that much more upside, Boardwalk sold off earlier in the year when the company announced plans to slash its distribution.

"I can understand why so many people sold," Cramer said. "After all, this is a master limited partnership and most of the shareholders owned it for the yield. However, I think Boardwalk made the right decision. By investing in growth, they'll be able to boost the distribution much more dramatically once these investments start paying off," Cramer said.

Looking at recent earnings, Cramer thinks the strategy is already starting to pay. "When Boardwalk reported last week, the company blew away the numbers. I could easily see this stock traveling up to $25."

However, there's another catalyst that could move shares and although it's fairly speculative, Cramer thinks it's entirely reasonable.

"With Kinder Morgan buying up all of its master limited partnership subsidiaries, I can see someone buying Boardwalk, too," Cramer said.

Read more from Mad Money with Jim Cramer
Cramer's calendar of opportunities this week
2 stocks to buy on the way down
CEO charges Street obsessed with inversion mania

Therefore, not only is Boardwalk a bet on the renaissance in domestic energy, it's also a bet on a possible acquisition.

"We have so much newly discovered oil and gas in this country, it's created a huge shortage of pipeline capacity," Cramer said. Boardwalk has just the kinds of assets that could make it highly coveted. "I like this one so much I own it for my charitable trust."

(Click for video of this Mad Money segment)

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the "Mad Money" website?