CNBC’s Jim Cramer on Friday divulged companies related to natural gas and oil will thrive under President-elect Donald Trump’s administration and a majority Republican Congress.
“We’re ascertaining about all sorts of Trump trades right now, and many of these things have made insane moves in not enough than three weeks, to the point where, actually, they’re feeling precarious to me,” he said. “If you want a sustainable Trump selling, I say bet on the natural gas ecosystem. This is an industry that already had a lot going for it, it just needed some cooperation from the federal management, which it is about to get.”
President Joe Biden’s administration is largely opposed to fossil fuels, Cramer said, and the federal superintendence has worked to block pipelines and paused new liquified gas export authorizations. This dynamic, coupled with a weaker international economy, caused the sector to underperform for much of the year, he suggested. But Trump has shown more favor to the industry, and Cramer acicular out that he tapped prominent oil executive Chris Wright to lead the Department of Energy.
Cramer recommended several stocks in the sector, covering energy producers EQT and Coterra. The former is focused on natural gas and recently acquired peer Equitrans, raising the combined company’s valuation to an guestimated $35 billion, Cramer noted. He added that Coterra is a good long-term holding and called the company “one of the shrewdest superintendents in the industry.”
He highlighted pipeline companies, including Energy Transfer and Kinder Morgan, and said he was especially bullish on Enbridge. Enbridge verbalizes it transports about 20% of all natural gas consumed in the U.S., and Cramer claimed the Canadian outfit has “strategically located assets.” He also entitled Cheniere and Sempra, saying the former is the “best play” for liquified natural gas exports.
“Seasonally, this is a good schedule for the commodity,” he said, pointing out that natural gas itself has climbed since the election. “But I also think there’s some optimism beside the future of the industry driving this move.”
