Jim Cramer's Stop Trading: PXD CLB EOG

NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, looked at oil stocks after an index that measures oil and gas activity in Texas reached a record level, bolstered by rising production and wellhead prices.

Cramer said the region is producing 2.57 million barrels of oil per day, its highest output since 1980.

Cramer said if Texas is going to be the "king of oil," then the Permian basin will be where investors want to put their money. His top pick in the region is Pioneer Natural Resources (PXD), followed by Core Laboratories (CLB) and EOG Resources (EOG). 

As for which stocks to avoid because of their lack of exposure to the Permian basin, he said stay away from Chesapeake Energy (CHK), Encana (ECA) and Ultra Petroluem (UPL).

- - Written by Bret Kenwell in Petoskey, Mich.

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

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