Schiller continued there are tons of synergies that will be realized from the merger of two Gulf drillers. He said boats and helicopters that are running at 60% capacity can now run at 80% or more, saving money. Insurance costs can be combined, saving money. Add that to the boost in reserves and the deal is clearly a big winner.
Cramer agreed, saying at this new lower price shares of Energy XXI, with EPL included, are a steal.
When Breaking Up Doesn't Work
Cramer has long been a fan of corporate breakups as a way of unlocking shareholder value. Sometimes, however, not breaking up may be the best course of action. That's the case with Dow Chemical (DOW - Get Report) despite activist investor Dan Loeb suggesting otherwise.
Cramer said while it's true Dow makes both commodity and specialty chemicals, the stock's performance, up 10% so far this year and 50% over the past 12 months, proves Dow's vertically integrated model is working just fine.
Unlike other chemical breakups, Dow makes commodity chemicals that it then uses as feedstock for its specialty operations. Dow has already announced plans to spin off a few ancillary businesses, making its remaining business all the more focused.
After delivering a 22-cents-a-share earnings beat on a 3.4% rise in revenue, Cramer said there's little more investors could ask for. Dow has already announced an increase to its buyback program as well as a boost of its dividend to 3%.
Trading at just 14 times earnings, Cramer said there's nothing better than a motivated CEO with an activist push.