Jim Kramer of CNBC advised investors on Friday to buy shares energy superiority While she is stealing.
“The stock is a little cheaper than Cheniere Energy, which is the king of LNG exports here in the US, at least when you judge it based on last year’s EBITDA. … the evaluation seems reasonable to me,mad money‘ said the host.
“If you’re looking for a way to participate in the LNG rally, which you should, I think Excelerate Energy is a great way to play it, especially now that the stock has fallen off its highs,” he added.
Shares of Excelerate Energy rose 2.02% on Friday but reached a 52-week low earlier in the day.
Kramer said he loves the company because it’s an LNG game over time “The rest of the world is in dire need of importing LNG from the United States.” He also highlighted the company’s strong financial statements.
“Excelerate had huge profit margins. EBITDA margin came in at 29.5% last year – I think EBITDA margin is the right thing to watch because it is a very capital intensive business, so it is important to undo the financial hit it took from the start – paper depreciation of gas stations Their natural floating issue,” referring to the company’s profitability.
However, Cramer also highlighted some of the company’s downsides, including that it is a controlled company with founder George Kaiser holding 77% of the voting power.
Kramer added that the Xelrate program also does not represent direct manipulation of US LNG exports.
“However, as more and more countries conclude deals to buy US natural gas, they will need the infrastructure to offload those shipments. This is where Excelerate comes in,” he said.
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