This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: Four Deals in the Oil Patch?

Editor's Note: This article was originally published on Real Money on Feb. 13. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

How can there NOT be more deals in the oil patch?

The other day EOG Resources (EOG) hit a 52-week high and while everyone seems to be focused on the potential acquisition of this company because its visionary CEO Mark Papa is retiring, I can't see it getting a $50 billion bid, which is pretty much what it would take to buy the behemoth.

Of course there is endless speculation that something can happen to Chesapeake (CPK) now that its visionary chief Aubrey McClendon is gone. I believe the company was not set up to be sold, given its huge number of joint ventures and would be very hard to negotiate a price that would make it worthwhile to cash out on so many of its entanglements. Just too complicated for most companies to ponder.

I see four others that are far more easily consumed because of their far-flung holdings that haven't been explored nearly enough, and yet, because of the soaring price of oil in the ground, just make too much sense to ignore. Plus, with the revolution in using natural gas as a surface fuel for trucks just a few years away, these are naturals to go.

The first is Hess (HESS), which remains ridiculously low vs. its vast holdings. Sure, Hess has run, but unlike EOG it is nowhere near its high. I can see this $22 billion company getting north of a $30 bid and the acquirer making a fortune developing its oil lands in the Bakken.

Speaking of the Bakken, how long can Whiting Petroleum (WLL), a $5 billion play, remain independent. Last year there were hot and heavy rumors that Statoil would buy them, but Statoil went to an extreme to deny that possibility.

That doesn't mean this one couldn't be bought for its extensive oil holdings.

Two others that could make sense that have done nothing but right things, yet been given zero credit for their efforts, are Linn Energy (LINE) and Carrizo (CRZO). They might be hard pressed to stay independent.

Linn's been a leader in developing properties cash off by others, including BP and then quickly bringing great returns to shareholders. I love that Linn offered Linn Co, with its bountiful 7% plus yield for non-taxable accounts. The company's growing its holdings like weeds, yet it stays at a ridiculously low $7 billion valuation.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs