i think it's going to be eog resources. it's one of the larger independent oils that's been positioning itself to succeed even if the price of crude stays lower for longer, which is what it looks like after today's selloff. the thing that really sets eog apart is that it still has an ambitious agenda to increase its production, which makes this stock the best growth play in the oil patch, which is why i'm talking about it tonight, because it's got growth. let me give you some background. eog resources has assets all over the world including china, trinidad, united kingdom, but the most important holders are here in the u.s. more than 97% of the company's reserves, eog is the largest onshore producer of crude oil in the lower 48 states. it's the largest producer in the eagleford shale and the state of texas, and it's got some huge acreage in north dakota as well as the low-cost permian basin in west texas that we talk about so often. roughly 52% of the company's reserves are oil. 30% natural gas. eog is all about efficiency.

oil stocks traded like they were all parts of an etf, and no one cared at all that eog might have been better or worse than the others in the etf. every one of these oil stocks with the exception of exxon mobil had spent too much money, and they weren't able to rein in spending fast enough to deal crude. marathon was worse, though. here's a company that decided to split off its refining and marketing divisions from its exploration and production business at what amounted to the top of the cycle in crude. without that refining cushion, marathon was about as vulnerable as any of the cash-strapped independents. we saw the stock plummet from the 20s to the high teens before we booted it. fortunately we dodged the trip all the way down to $7, where the company had to issue more unfortunately, the trust took a major loss, which did not endear us to subscribers. it wasn't all that bad in the oil patch, though, because we had had some foresight when it came to the combination of kinder morgan that the entity's ceo rich kinder put together, deciding we had been greedy and not ringing the regist

production growth is set in places like the permian basin, you have eog resources that will grow their 15% to 20% per year between now and the end of the decade. you take that production growth, you had a little bit of price appreciation on there, and really accelerated cash flow growth. >> okay, okay. i hear everything you're saying, i know it is one of your favorite stocks. i got to push back. everybody is all happy about 49 and change in oil. let's not forget, a, oil has been above 50 a couple of times already this year and these stocks are suffering. and, b, the fact we're not at 50 with an opec cut of this size says to a lot of people that there is too much oil still in the world. why is 49 good on the way up, seemingly, and terrible on the way down? it is the same price point. >> well, it is more of stability going forward. i think that's really what's key here. we know that at this point, you know, i think last time i was on with you was on the 30s, and oil is probably going to $50 by the end of the year. we're at $49.90 and we're probably going higher from here if opec adheres

. >> eog also get -- >> oh, boy, eog goes to 100. >> harold hamm still talked about as something in theistration. >> national oil minister -- oh, no, they have in other countries. what this means, david, is that the united states is free to start pumping more without destroying the price. so i think you get 50. okay. at $50 the permian very, very good. at $50 eog, permian and continental resources is in scoop, which is in oklahoma area where you'll make a fortune at $50. so that one makes sense to be up a lot. >> all right. we're going to talk a lot more about oil given its importance overall to the market and some of these names jim just talked about when we get that opening bell just a couple minutes from now. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias.

. >> this is the eogs and it is the pioneer coming down here. they are looking much, much better. now is the time to buy western digital >> the stock is cheap and you got a lot of cash flow. >> susan in florida, susan. >> boo yah jim. >> i bought tech data after you recommended. >> well, that is conclusion of the lightning round. the lightning round is sponsored by td ameritrade. >> scary booyah. >> what kind of recommendation is that? >> an oil plate that they have >> booyah, jim, what's going on, sorry about the loss on sunday. >> it did not bother me, i did not care. i was fine. >> jim cramer for president. >> well, thank you very much. i am not a political guy but i appreciate it. i also don't really care, it is th >> threw the first pitch last year. so stick with cramer. ahh...still sick, huh? i'll take it from here. i'm good. i just took new mucinex clear and cool. ah! what's this sudden cooooling thing happening? it's got a menthol burst. you can feel it right away. ahh! this is awkward. new mucinex fast-max clear & cool. feel the menthol burst. and clear your worst cold sy

. >> this is the eogs and it is the pioneer coming down here.y are looking much, much better. >> dorothy in new mexico. >> hi jim. now is the time to buy western digital >> the stock is cheap and you got a lot of cash flow. >> susan in florida, susan. >> boo yah jim. >> i bought tech data after you recommended. >> well, that is conclusion of the lightning round. the lightning round is sponsored by td ameritrade. >> scary booyah. >> what kind of recommendation is that? >> an oil plate that they have tapped into the next big -- >> booyah, jim, what's going on, sorry about the loss on sunday. >> it did not bother me, i did not care. i was fine. >> jim cramer for president. >> well, thank you very much. i am not a political guy but i appreciate it. i also don't really care, it is not that i am not interested in baseball. >> threw the first pitch last year. so stick with cramer. seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with th

if you had fantastic growth like eog and the independents or chevron and the majors, you were saluted with higher prices. but if you had no growth like exxon or spent too much money, bought too high, occidental, you did yourself or your disappointing. the restaurants, miserable. people are staying home. other than cheesecake factory, the results were nothing to write home about. starbucks was mixed last week. we didn't get the kind of upside surprise we're spoiled by, but it wasn't disappointing. i fear starbucks is being carried up by the tape, though. it means that there's futures buying and it could drop back if futures take a header. domino's pizza is really a technology company that delivers speedy pizzas to your home as part of my stay-at-home thesis i've articulated night after night to you. meanwhile the home improvement thesis took a huge step back. weak numbers, sherwin williams, ppg, whirlpool. i think home depot is still a long term buy, but let's face it. the luster of that group seems lost for now. home depot had a nice bounce back today. into the week, we picked up some

hence how you can see gains in eog.they're prepared to reap the harvest of this saudi umbrella. now, why were the traders so wrong? why were they shorting oil so heavily? here's my bottom line. i think there was enough chatter about opec failing to reach a deal coming from all directions that the risk/reward on the short side seemed like a much better bet. turns out it wasn't. yet the smart money got played, and they got it wrong. the true believers? they got it right. gary in michigan, gary. >> caller: dr. jim. >> yeah. >> caller: i just bought a little bit of fxl, a midstream pipeline play. i figure with commitment to energy development, that natural gas pipeline should be relatively conservative play with a good yield. the problem is, jim, these are hard to figure out. these companies are owned by generational billionaire oil guys. they all know each other, and they've all got bits and pieces of everybody's company. it's like a big spider web. i want to know what do you think of slx? >> what you describe is why i don

eog reported a smaller loss than expected. say the stock, steph, is the best in class in the space. >> it truly is. this is the best management team that got the best permean assets. they continue to drive cost lower. it's not very many. any energy companies for that matter that are doing that. i think you still have to stay on board on this name. >> twilio, josh. still expected lower. >> it's going to be a rock 'n' roll stock in both directions. very high beta. very small. it's going to make outside reaction. it's benhamered enough that you can enter this if you want to be part of it. i personally am not. >> jimmy, record profits at starbucks. >> starbucks is a great, great company. let me make that point. i think the shares are pricey, even after languishing for the past year. it should be on everybody's buy list and maybe wait for it to get cheaper before you start to nibble. one thing i didn't like in this, i believe howard schultz referenced the uncertainty of the election as impacting u.s. sales. i don't think people are

chevron, devin, eog, halliburton, marathon, murphy, transocean. mean, they've ripped. >> absolutely. >> the lesson is you have -- >> some of the gains are absurd. some of the stocks i mentioned at the end devin, marathon, murphy and -- >> there are beta thames really going crazy today, scott. >> you don't sell on some of this news? >> i took off marathon oil based on the move that it made today, and the new 52-week high, and got a little lucky there because it could have gone either way. >> i know josh and i for a long time were -- you might still be in the xle. i was in the xle, and i have been in a lot of the big names. >> i talked about conoco about to break out. boom. here it is. >> how about the pipeline moves, though? look at kinder morgan. >> some of the areas in the marketplace are i don't think are getting covered very well. >> petroleum 26%, is judge. apache, we talked about it last week because of that wolf camp down in the permean basin. it was $1 trillion. at last week's prices for crude oil. that's $1.1 trillion now. >> when we talk

eog, concho, those shale survivors, you want to begin to put them back on. >> you own some of the refiners. >> i do own some of the refiners. marathon is up today. elliott took a position in there. i think when you are looking at refiners, you had -- this is a consolidation play. there are not too many refiners out there. you have lack of capacity coming on, and over time you're going to get pushed by these to consolidate. >> is there a fundamentally bullish back drop for stocks at this point, or is it all this sort of structural play here at this point? it's going to be further consolidation in the sector, and that's really the reason why i go in? >> well, depending what jeff has to say about how things go in vienna,ing there already more consolidation or less. a lot of them might get a wind at their back if they don't have to do deals. i'm still a big fan of a lot of the ones of the oil service stocks that do work in the permean and, of course, baker hughes being one of the biggest players out there as far as shale in general, but that discovery today or the discovery that's been announc

jts eog, apc, high-growth names that take market share in an environment where not everybody can playder your scenario, are there oil stocks that are a buy? >> service names. you have to play it close to your vest. obviously, in tim's world -- >> sorry. >> wouldn't oil service companies be the ones most at risk, if you see oil going lower because people are not doing the creative things and looking at the technology. >> i said the top to oil is 50 to 55. and they will be hedges on and people will produce a lot more. if if you produce a lot more, you have to service -- >> so there a lid on f 55. >> in production. >> because production will come back on. choose your own adventure. which way do you think? >> i wouldn't be surprised to see irrational actions among -- >> what's irrational? >> not having a deal. and having each of them pumping what they can -- >> and oil going -- >> in april, what would the oil market do? >> we're in a different world. the oil market was different, i'll give you that. but now we're looking at u.s. growth. >> demand is -- >> we were looking at 1% gdp in the

an eog or concho or chevron. these are names you want to have on your shopping list for days like tomorrow. if it doesn't go through with opec, they're going to get hit hard, but if you have a longer term projection, like i do, i think you really want to be involved in these names. especially if you think gdp here is going higher, and globally you are going to get fiscal policy on top of monetary policy. that will be very positive to 2017-18 for the commodity sector. >> here's what else is coming up on "the halftime report." >> health check. plays making key calls in the sector. we're talking about two big names next. one getting an upgrade. the other a cut. and smelting for the stocks of steel. a chance to get, in or a sign to sell? before the break, after q3 gdp came in at an annualized rate of 2.3%, our partners at kensho report when gdp is in the 3% to 4% range, energy stocks fair best. materials and telecom have done well. the s&p has jumped more than 5%. consumer staples and health care underperform. top pe

. >> it's interesting if you're growth oil like eog resources, you got some real pump today.s because they gave you a long-term plan. people are reading the readthrough from qorvo and they're selling apple. they're saying. no one's going to give apple a break here. >> i want to understand that. again, you said they had increase in demand at the last minute. >> right. >> the yield wasn't there. >> no one's going to believe it. >> why is that a bad thing? >> apple's not going to get a break any more than any other company. they're going to say come on. >> demand is demand, even if it came in late, it's still there. >> unless you're going to get a takeover bid or rumor of takeover bid, alexion because of a conference may have been canceled, you're stuck in a very difficult moment where you cannot seem to get any momentum. like at kraft heinz, they beat on the bottom line. top line wasn't so hot. wasn't horrible. doesn't matter. that's a pariah. >> wow, look at that. the question for kraft heinz really is when do they do the next deal. >> i know. >> that resonates amongst the cro

the break even cost of some of these companies like eog west texas is lower than some opec producers.shell oil is here to stay. it's going to be a long term the global market. funds.oise has eight up about 20% so far. it's best year basis, performer in the category of energy equity funds. making totments are this fund? using?sumptions are you >> investing in energy sector is not just about the direction of oil prices. oil prices don't have to go up or go down to impact or make sector. the energy that's what topics captures. it captures opportunity. based across the entire energy sector. there are a lot of interesting things. infrastructure, energy great thingse, going on. lot of new infrastructure being inlt in the marcella shell the northeast. lot of energy infrastructure andg built throughout texas oklahoma. investors 6.5% yield.d it raised dividend on average 7% 7%ry year over every year over that 10 year period. that's a great we to play it. the u.s. is really the saudi arabia of natural gas. opportunitiesof on the natural goose. right, rob thummel thank you so much for joining us