Cramer: As Oil Falls, Buy These 3 Names

As oil prices fell on Tuesday, Cramer guessed it may only go lower.

Oil companies that work best in this environment are those with the most growth, Cramer said. He likes the "wildcatters," which are companies that drill in untouched lands. The wildcatters are some of the most volatile names in the oil space. Cramer noted they also have the most potential upside because when they find new oil, their growth skyrockets.

The "Mad Money" host ranked oil companies that he thinks will work when oil is lower, so home gamers can leg into them on the way down. These stocks need to be on your radar screen, he said, because their entry point could come soon.

To start, Cramer's fave wildcatter is Hess . The New York City-based company has found great success in its strong, yet responsible approach to drilling. Hess was the first company to discover the Bakken shale, an oil-rich region that stretches from Montana to North Dakota along the Canadian border. Hess is now producing 25,000 barrels a day in the Bakken and operating 18 rigs.

Last quarter, Hess announced a large discovery off the coast of Ghana. The stock rallied 6 percent on the news, as the project could be worth up to $7 a share, Cramer said. It could add up to 500,000 barrels a day.

Hess also has projects in Egypt, the North Sea, Brazil, Australia and the Paris Basin. Its stock has begun to pullback because it's most tied to the price of oil. Being as it's roughly 7 points off its high of $87.40, Cramer thinks investors could put on a small position. He would wait for it go to lower before buying more, though.

Cramer recommends investors also look for Occidental Petroleum shares to fall. The Los Angeles-based oil company has assets around the world, Cramer said. He likes its wildcatting efforts in California, where he thinks it's changing the game. The company drills down vertically, so it can hit four to five shale formations instead of the usual one or two formations. It's already drilled roughly 150 wells in Kern County, Calif., which Cramer said could be worth up to $76 billion. Based on these unconventional California assets, Cramer thinks Occidental could double its share price. He recommends waiting for a pullback before buying OXY.

Finally, Cramer likes Anadarko Petroleum . He thinks it's a terrific company, but said it's stock is a little exploited. Yet he still considers it among the best wildcatters. It is an international wildcatter with international assets, including places like Ghana, New Zealand and more. He would let this stock come down before buying shares.

When this story was published, Cramer's charitable trust owned Hess.

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