Heightened geopolitical risk following the Palestinian militant group Hamas' attack on Israel over the weekend helped push crude prices up around 4% Monday — even as the impact on Club energy names Pioneer Natural Resources and Coterra Energy has been colored by acquisition talks and surging gas prices. West Texas Intermediate crude, the U.S. oil benchmark, traded over $86 a barrel Monday, and global standard Brent crude traded at around $88 a barrel.
Jim Cramer on Monday argued Coterra's stock price still does not appropriately capture the move higher in natural gas and the lift in profits the company should experience as a result. Houston-based Coterra's revenues are split roughly 50-50 between natural gas and crude, while Pioneer is more levered to oil. "I reiterate that Coterra should go to $35" per share, Jim said.