CNBC’s Jim Cramer on Tuesday stated that financiers bullish on oil ought to think about banking on HighPeak Energy.
“If you believe the price of oil can stay elevated here, possibly because the war in Ukraine will turn into a drawn-out stalemate, then you’ll likely get more upside out of an aggressive oil producer like HighPeak Energy,” he stated.
The stock is riskier than Devon Energy or Pioneer Natural Resources due to its “huge variable dividends, but if you believe in oil here, this is the one for you,” he included.
One factor HighPeak stock is appealing is that it’s fairly low-cost compared to its rivals, according to the “Mad Money” host. The business stock increased 3.94% on Tuesday to $2188
Cramer, who last month motivated financiers to own an oil stock as Russia’s intrusion of Ukraine drives rates up at the pump, stated that HighPeak’s production ramp-up separates it from rivals likeDevon CEO Rick Muncrief informed Cramer last month that Devon will not increase oil production as rates topped $100 a barrel.
HighPeak stated in its 2021 fourth-quarter outcomes that it got its 3rd drilling rig in October of in 2015 and a 4th rig in January of this year, including that the business prepares to run a minimum of 4 drilling rigs and 2 frac fleets usually this year.
“Most players in this industry have been loath to drill or expand because they’re happy with the current status quo,” Cramer stated. “But when everybody else is being disciplined, a company like HighPeak Energy can get away” with improving production without impacting unrefined rates, he included.
“Perhaps crucial, they’re drilling truly strongly at the correct time, which time is now,” he stated.
Disclosure: Cramer’s Charitable Trust owns shares of Devon Energy.
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