On Thursday, CNBC’s Jim Kramer said investors interested in oil should bet on hype energy.
“If you believe that oil prices could rise here, perhaps the war in Ukraine will turn into a pull-out stalemate, you will probably turn further away from an aggressive oil producer like Hypic Energy,” he said.
“The stock is more risky than Devon Energy or Pioneer Natural Resources because of the huge variable dividends, but if you believe in oil here, it’s for you,” he added.
One reason Hypic stock is attractive is that, according to the “Mad Money” host, it is relatively cheap compared to its competitors. The company’s stock rose 3.94% to $ 21.88 on Tuesday.
Kramer, who last month urged investors to own oil stocks because Russia’s attack on Ukraine raises prices at the pump, said the ramp-up of Hypic’s production sets it apart from competitors like Devon. CEO Rick Muncriff told Kramer last month that Devon would not increase oil production as prices were at শীর্ 100 per barrel.
Hypic said in its fourth quarter results for 2021 that it acquired its third drilling rig in October last year and a fourth rig in January this year, adding that the company plans to operate an average of at least four drilling rigs and two freak fleets. Years
“Most players in this industry hate to drill or expand because they are happy with the current situation,” Kramer said. “But while everyone else is being chained, a company like Hypic Energy can run away,” he said, adding that by increasing production without affecting crude prices.
“Perhaps most importantly, they are drilling really aggressively at the right time, and that time now,” He said.
Disclosure: Kramers Charitable Trust owns shares in Devon Energy.
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