• CNBC's Jim Cramer on Tuesday said that investors bullish on oil should consider betting on HighPeak Energy.
• "If you believe the price of oil can stay elevated here, possibly because the war in Ukraine will turn into a drawn-out stalemate, then you'll likely get more upside out of an aggressive oil producer like HighPeak Energy," he said.

CNBC's Jim Cramer on Tuesday said that investors bullish on oil should consider betting on HighPeak Energy.

"If you believe the price of oil can stay elevated here, possibly because the war in Ukraine will turn into a drawn-out stalemate, then you'll likely get more upside out of an aggressive oil producer like HighPeak Energy," he said.

The stock is riskier than Devon Energy or Pioneer Natural Resources due to its "huge variable dividends, but if you believe in oil here, this is the one for you," he added.

One reason HighPeak stock is attractive is that it's relatively cheap compared to its competitors, according to the "Mad Money" host. The company stock rose 3.94% on Tuesday to $21.88.

Cramer, who last month encouraged investors to own an oil stock as Russia's invasion of Ukraine drives prices up at the pump, said that HighPeak's production ramp-up separates it from competitors like Devon. CEO Rick Muncrief told Cramer last month that Devon will not increase oil production as prices topped $100 a barrel.

HighPeak said in its 2021 fourth-quarter results that it acquired its third drilling rig in October of last year and a fourth rig in January of this year, adding that the company plans to operate at least four drilling rigs and two frac fleets on average this year. 

"Most players in this industry have been loath to drill or expand because they're happy with the current status quo," Cramer said. "But when everybody else is being disciplined, a company like HighPeak Energy can get away" with boosting production without affecting crude prices, he added.

"Perhaps most important, they're drilling really aggressively at the right time, and that time is now," he said.

Disclosure: Cramer's Charitable Trust owns shares of Devon Energy.

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