NEW YORK (TheStreet) -- Jim Cramer, the portfolio manager at Action Alerts PLUS, and Research Director Jack Mohr have been making changes to the charitable portfolio when it comes to energy companies.

Cramer summed up their position succinctly by describing EOG (EOG) as their growth story, Occidental Petroleum (OXY) as their income story, and Energy Transfer Partners (ETP) as a mispriced transformation story.

To break each position down, Cramer says ETP has the highest yield and "is a very aggressive company that is doing exactly what's right in the pipes around the country." he said investors can be a bit more aggressive on pipelines by owning ETP. 

Similarly, Cramer says to own OXY for its yield, even though yields might not protect investors as much as they have in the past, given that rates are expected to rise. Mohr reiterated Cramer's point by adding that OXY and ETP both have very strong coverage ratios and balance sheet protection. Mohr especially likes ETP because after taking on a lot of acquisitions, ETP has transitioned from being a strictly natural gas company to a diversified energy company but Wall Street is still trading ETP without pricing in this change.

Cramer said that by not pumping and waiting for higher prices, EOG has made the smartest move in the current oil price situation despite people's reservations. Mohr said investors need to diversify themselves when investing in the energy sector and to make sure they do not get too tied up in any single area of the sector.

Their conclusion: When it comes to energy, "you want to be in this group."

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.

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