When asked about where Carrizo's oil goes after it's drilled, Johnson said his company sells its oil to companies, which haul it to the Gulf coast via truck, rail or barge. There, he said, it is sold at the higher Brent crude prices and usually refined into diesel fuel and sold into the Latin American marke,t which offers the highest margins for the refiners.

When asked about margins, Johnson explained Carrizo is essentially producing oil for a scant $30 a barrel and selling it for $100 a barrel, affording it a tremendous gross margin at today's prices.

Cramer said Carrizo has everything he's looking for including great assets, production growth and a solid plan for the future.

Off The Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Caroline Boroden over the direction of the markets and of three stocks in particular. Boroden's predictions of the markets have been spot-on in recent months, as she's called the S&P 500's June retracement, its September top and subsequent lows in November.

So which stocks are Boroden focusing on now? Cramer said they are Amazon.com ( AMZN), Michael Kors ( KORS) and Schlumberger ( SLB), another stock Cramer owns for Action Alerts PLUS.

Boroden noted that after topping out in January, shares of Amazon have been sliding lower. But she sees support between $243 and $245 a a share and also between $236 and $239. She said that either range is buyable once the stock has tested and held either level.

A similar pattern exists for Kors, with supports $57, $53 and $49 a share, and Schlumberger, with supports between $72 and $74 a share and also at $70 a share. In both cases, Boroden suggested waiting to confirm the stocks have held those levels before buying.

Cramer said he once again agrees with Boroden on these three stocks, but rather than buying in at certain technical levels he prefers using wide scales and buying more on weakness.

Lightning Round

In the Lightning Round, Cramer was bullish on HomeStreet ( HMST), Royal Dutch Shell ( RDS.A) and McDonald's ( MCD).

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