“There are companies that can benefit from higher oil prices,” Jim Cramer told fans of his “Mad Money” TV show Wednesday. “But they’re not who you might think.” Cramer pointed out that integrated oil stocks like Exxon (XOM), BP (BP) and Marathon Oil (MRO) have barely moved higher as oil has moved from $100 to $130. He explained that big oil stock with natural gas exposure are up an average of 33.8% since oil hit $100. The group is practically tracking oil’s move during the same period which was 36%. The companies of big oil with natural gas exposure includes names like XTO Energy (XTO), Southwestern Energy (SWN) and El Paso (EP). Cramer owns all these stocks for his charitable trust. He also recommended Ultra Petroleum (UPL), Apache (APA), Anadarko (APC) and Chesapeake Energy (CHK). Cramer thinks natural gas still has more room to move higher based on the historical ratio between the commodity and oil. This makes him believe the big oil with natural gas companies will continue higher. He also highlighted the large insider buying by Chesapeake Energy (CHK) CEO Aubrey McClendon, which is a sign of confidence for the group.
Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!