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Jim Cramer's Mad Dash: Stocks to Buy for Permian Basin Boom

NEW YORK (TheStreet) -- On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, focused on Aubrey McClendon, owner of privately held American Energy Partners, and his company's recent land purchase in the Permian Basin.

McClendon paid Enduring Resources LLC $2.5 billion for 63,000 acres.

The area can pump 60,000 barrels of oil per day, Cramer said, adding that McClendon "is overpaying, unless he knows more than we do."

But McClendon likely does, Cramer said. The former CEO of Chesapeake Energy (CHK) is a "genius" at buying energy-rich land, Cramer said. Companies have figured out the "code" to drilling in the Permian Basin, and McClendon is unlikely to have overpaid in the long run, he said. 

McClendon is building a powerhouse, Cramer concluded, saying that investors can benefit from the Permian Basin boom by buying stocks such as EOG Resources (EOG), Cimarex (XEC), and Pioneer Natural Resources (PXD). Cramer endorsed Pioneer the most.

At the time of publication, Cramer's Action Alerts PLUS portfolio held no shares of stocks mentioned.

-- Written by Bret Kenwell in Petoskey, Mich.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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