Cramer isn’t the only person who thinks natural gas prices are headed higher. UPL CEO Michael Watford set his price target at $6, very close to the Mad Money host’s estimate. That’s probably why Ultra Petro is ramping up its drilling, especially in the Marcellus Shale. The company is digging 35 wells there, well above the originally planned 23.

Chevron (CVX) and Ultra Pete (UPL) have turned up, and can the others be that far behind? I find these two stocks, one oil, one gas, have been good barometers of the group. They aren't as good as Schlumberger (SLB) or Occidental (OXY) -- both down badly -- but it does say the group may not be down for the count." "Don't Write Off Oil and Gas Stocks," 6-12-09

What's really telling is that anyone who can switch easily from oil to natural gas already has, so there's not a lot of arbitrage. Yet Ultra Petroleum (UPL), Apache (APA), XTO Energy (XTO) and Chesapeake (CHK) trade like houses on fire.

I do not know how many of these big natural gas companies -- Chesapeake (CPK), Apache (APA), Anadarko (APC), Southwestern Energy (SWN), Cabot Oil & Gas (COG), Ultra Petroleum (UPL), XTO Energy (XTO) and Devon (DVN) -- can make their earnings with natural gas at $3.60/MMBTU and going lower because of the end of the winter heating season.

Mad About Options: Ultra Petroleum Flashback: The Mad About Options crew takes a look back at Jim Cramer's comments about Ultra Petroleum.

Click here to watch the video.

Wait a minute, it is freezing cold for much of the nation and getting much colder as the week goes on. I could see, right now, picking up as many natural gas stocks as I could find, everything from Ultra Petroleum (UPL) to Devon (DVN), Apache (APA) and Chesapeake (CHK). You always buy nat gas stocks when it gets cold. That's a time-honored trade. Not this year. Natural gas, astoundingly, just took out $5. That's incredible, just incredible. Can you imagine where it would be if it were warm? Where would we put this stuff? These stocks, every one of them, seem like shorts to me.

From a recent Mad Money show:"I want you to buy more. Natural gas is done going down, that's my prediction. They are the lowest cost producer. I want to buy Ultra."

Mad About Options: Ultra Petroleum: The Mad About Options crew reviews Jim Cramer's recent semi-bullish comments about Ultra Petroleum and offers options strategies for traders and investors.


Click here to watch the video.

From a recent Mad Money show: "Short term it's going to be rough sledding for Ultra. But I think it's OK longer term since they're a low cost producer."

We are in the season where natural gas should have fallen more before it got here, because without some sort of unseasonably warm snap, we will now believe that nat gas is permanently above $5 and change, where a whole host of prudent companies, like Equitable (EQT) for yield and Ultra (UPL) for growth, make a lot of money.

Too volatile

lost money

Bad advice

past growth