With natural gas prices dropping to its lowest level since 2002 and with inventories 19% above their five-year average, you’d expect nat gas stocks to be at yearly lows. Instead, Cramer points out that they’ve been rallying furiously.
Cramer doesn’t see the reason for this move on the floor of the country’s stock or commodities exchanges, rather, the momentum in Natural gas companies is fueled by Washington and the possibility that the resource could be the next mainstream energy source. Cramer points out that natural gas could come into commonplace use much sooner than solar or wind ever could and strength in natural gas stocks can be attributed to Washington’s willingness to make the fuel a big part of the country’s future.
Cramer points out Anadarko Petroleum , a derivative natural gas play he’s been recommending since January 12th, and the stock has rallied over 40% since then, even with falling nat gas prices. If this commodity really will be part of the country’s energy future, Cramer thinks Anadarko is a great stock to own and a good growth energy play. The company has new discoveries n the Gulf of Mexico and Mississippi and a major new project in Ghana, with strategic hedging that will help if natural gas prices fluctuate.
However, the profitability of a name like Anadarko relies heavily on the future of the natural gas industry. To get the full story, Cramer is talking to the CEO of Anadarko, Jim Hackett, to get real perspective on the future of the industry from the front lines.
To see the full interview, check back for the video!
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