• CNBC's Jim Cramer said Wednesday he sees promise in Coterra Energy, a natural gas-focused firm formerly called Cabot Oil & Gas Corporation.
• "When you're picking among oil and gas exploration and production companies, I think this Coterra Energy absolutely now belongs on the menu," Cramer said.
• However, the "Mad Money" host noted he prefers Devon Energy and Pioneer Natural Resources at the moment.

CNBC's Jim Cramer said Wednesday he sees promise in Coterra Energy, a natural gas-focused firm formerly called Cabot Oil & Gas Corporation.

"When you're picking among oil and gas exploration and production companies, I think this Coterra Energy absolutely now belongs on the menu," said the "Mad Money" host, whose favorite E&P firms at the moment are Devon Energy and Pioneer Natural Resources.

"I prefer oil to natural gas, so I'd still prefer Pioneer or Devon," Cramer said. However, he added, "if you like natural gas more or something changes that hurts oil more than gas and you think this problem with Germany is intractable and Europe needs our natural gas, Coterra is the one you need to buy."

Coterra, in its current form, officially came together Oct. 1 through an all-stock merger involving Cabot and Cimarex Energy. About 75% of its revenue comes from natural gas operations, Cramer noted.

"Coterra's only run from $14 and change at its August lows to just under $23 today. That's a roughly 60% gain, but for reference, Devon has more than doubled over the same period," said Cramer, whose charitable trust has a position in Devon.

"I think Coterra has some room to play catch-up here, as the stock's still up only a few bucks from where it was trading when the big merger was announced last spring," Cramer said, despite the fact oil and gas prices have surged since then.

Coterra also is committed to returning capital to shareholders, adding to its investment potential, Cramer said. He estimated its dividend yield could be around 7%, given free cash flow estimates and projected payout ratios. That would fall between Devon's 6.3% yield and Pioneer's 7.75% yield.

However, Cramer said Coterra does have a lower enterprise multiple compared with Devon and Pioneer. "It doesn't hurt that they've got the best balance sheet of the three," he said. "This one is so good."

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