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.
3 Mysterious Things Now Happening at Chipotle
Porsche Electric vs. Tesla
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV