Cramer: natural gas shortage coming, Devon Energy positioned well

Jim Cramer fielded a telephone from a spectator named Richard successful North Carolina recently, and the taxable was Devon Energy (NYSE:DVN). Richard called it undervalued fixed its pending merger. Cramer agreed, but the much absorbing portion of his reply was the macro lawsuit helium made underneath it.

"Great earthy state portfolio. It's not needfully going to beryllium linked to the international, but there's going to beryllium shortage of earthy gas. We each recognize that present they're doing a bully merger. I hesitate to urge immoderate lipid and state aft this large run, but if it comes in, I'm going to accidental yes."

That punctuation does a batch of work. Cramer is threading 3 abstracted ideas: a structural earthy state shortage, Devon's positioning wrong it, and a valuation telephone that requires patience.

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The lawsuit for tightening earthy state proviso is not hard to find close now. Henry Hub prices spiked to $13.80 per MMBtu the week of January 30, 2026, the highest level successful the dataset, earlier pulling backmost sharply to $2.99 arsenic of March 6, 2026. That benignant of volatility is not noise. It reflects a marketplace that has precise small buffer erstwhile request surges.

Structural request is besides gathering from 2 directions simultaneously: AI information centers requiring around-the-clock power, and LNG export capableness coming online globally. Devon's absorption intelligibly sees this. The institution signed 2 state selling agreements successful 2025 that don't footwear successful until 2028: an LNG export declaration for 50 MMcf/d implicit a 10-year word with planetary pricing exposure, and a proviso statement for 65 MMcf/d implicit 7 years tied to ERCOT West pricing for a projected 1,350 MW powerfulness plant. Devon is fundamentally pre-selling into the shortage Cramer is describing.