Papa went on further to say that technology is making all the difference. He said areas that were previously thought unproductive can now be unlocked by the same horizontal drilling techniques that have proved effective with natural gas wells. Papa noted that EOG has drilled 150 wells so far and has enjoyed a 100% success rate. "You'd have to be pretty unlucky to come up dry in the Eagleford," he explained.
Papa also noted that one of the biggest problems EOG faces is a lack of infrastructure to transport the oil out of the Eagleford area. He said with pipelines overwhelmed, the company has resorted to trucks and railcars to as far away as Louisiana to bring their oil to market at the highest possible prices.
Cramer said that rarely do investors get a chance to own such a great oil growth stock at such reduced prices.
Go for GrowthThe old investing wisdom says to focus on big, blue-chip companies that you can buy and hold forever. Cramer said there's only one problem with that wisdom ... it stinks! He said as companies age, they stagnate, and Wall Street rewards growth, not stagnation. That's why he likes DuPont (DD - Get Report), a company that has reinvented itself from an old-line cyclical stock to a secular growth company that does well in good times and in bad.
Cramer said the DuPont's transformation began in 1998, when the company began selling off its non-core divisions, like oil and gas, pharmaceuticals and textile fibers. But it wasn't until years later when the company was truly streamlined from 23 divisions to just 13, eliminating several layers of management in the process.The new DuPont is now focused on global mega-trends like increasing food production, saving on energy, boosting safety and concentrating on emerging markets. This new strategy has given the company sustainable performance while mitigating downside risks. Nearly 30% of DuPont's revenues now come from new products, said Cramer, and the company is growing at nearly 30%. DuPont's genetically altered seed division is now the largest segment of DuPont, accounting for 37% of sales.