Buy Excelerate Energy now for a bargain

On Friday CNBC’s Jim Cramer advised investors to buy stocks Excel energy while it is a theft.

“The title is a little cheaper than Chenière Energy, which is the king of LNG exports here in the United States, at least when judged by last year’s earnings before interest, taxes, depreciation and amortization. … The evaluation seems reasonable to me “, the”crazy money“said the host.

“If you’re looking for a way to participate in the rise of liquefied natural gas, which you should, I think Excelerate Energy is a great way to play it, especially now that the stock has retreated from its highs,” he added.

Shares in Excelerate Energy were up 2.02% on Friday, but hit a new 52-week low earlier in the day.

Cramer said he likes the company because it’s an LNG game at a time when “The rest of the world is desperate to import liquefied natural gas from the United States.” It also highlighted the financial strength of the company.

“Excelerate has outstanding margins. Their EBITDA margin was 29.5% last year – I think the EBITDA margin is the right one to keep an eye on because it’s a capital intensive business so it’s important to withdraw. the financial blow they suffer from the beginning – paper depreciation of their floating LNG terminals, “he said, also citing the company’s profitability.

However, Cramer also highlighted some negative aspects of the company, including the fact that it is a subsidiary with founder George Kaiser holding 77% of the voting power.

Excelerate isn’t even a direct game on U.S. liquefied natural gas exports, Cramer added.

“However, as more and more countries enter into agreements to buy American natural gas, they will need infrastructure to offload those shipments. And this is where Excelerate comes in,” he said.

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