Jim Cramer Revisits Diamondback Energy as Oil Nears $96
Cramer is back on FANG as crude climbs toward $96. Here's the tradeable angle you need to know.
Jim Cramer is turning his attention back to Diamondback Energy (FANG) just as oil prices push toward the $96 mark — a level that tends to get traders sitting up straight. When crude runs, Permian Basin pure-plays like Diamondback tend to run harder, and Cramer knows it.
Diamondback is one of the leanest operators in the Permian, meaning its margins expand fast when oil ticks higher. You don't need prices to stay at $96 forever — you just need the momentum to hold long enough for earnings estimates to get revised upward. That's the setup Cramer appears to be eyeing.
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Oil at this level also reignites the conversation around energy's role in a diversified portfolio. For months the sector got ignored while tech grabbed all the headlines. Now the trade is rotating, and names with tight cost structures and strong free cash flow — exactly what Diamondback delivers — are getting a second look from institutional money.
The risk here is real: oil is notoriously volatile, and a demand slowdown or surprise inventory build can unwind a move fast. But if you're looking for a leveraged play on sustained crude strength, FANG has consistently been one of the cleaner ways to express that view without taking on the operational messiness of a major integrated oil company.
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