Cramer has time and again made his case for natural gas: It’s cleaner than crude oil and coal. The US sits on trillions of cubic feet of potential reserves. And the transition to nat gas could create millions of jobs, which would be a crucial piece to a full economic recovery here in the States.
And just look at the stocks’ returns: Over the last 10 years, natural gas plays XTO Energy , Chesapeake Energy and Range Resource are up 3,355%, 1,159% and 2,488%, respectively.
Moves into the sector by both Exxon Mobil and Total seem to portend the Cramer’s called-for transition, and there’s a nat-gas bill working its way through Congress right now. All of this could translate into a big bump in business for Mad Money’s favorite speculative play on the sector: Clean Energy Fuels .
CLNE designs, builds, finances and operates fueling stations that supply compressed natural gas and liquefied natural gas, mainly to heavy-duty vehicles involved in public transport, refuse hauling and trucking. Speculative or not, the business seems to be doing well. Clean Energy in November reported a strong third quarter, with volumes up 58% year-over-year, and the company has received $34 billion in stimulus money to build 11 natural-gas fueling stations.
Then there’s the Natural Gas Act. The bill would push through a 50-cent tax credit per gasoline gallon equivalent of compressed or liquefied natural gas, which could cover as much as 50% of the cost of converting a vehicle’s engine to run on nat gas. If President Obama signs this legislation, then CLNE would surely benefit.
Oh, and here’s a news peg: The big talk this week is Detroit’s auto show and its focus on battery-powered cars. But Cramer was more concerned with Clean Energy’s new contract to build airport-adjacent filling stations at Dallas/Ft. Worth, Houston and Las Vegas for their respective shuttle operators.
CLNE has enjoyed a big run, climbing 89% since CEO Andrew Littlefair’s Aug. 11 visit to Mad Money. And over the past 14 months, the stock is up 412%. Given recent events, Cramer wanted to check in with the chief executive to discuss where the company – and natural gas – goes from here. Watch the video for the full interview.
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