Southwestern Energy (SWN) , which are down 4.5% after the company announced
a 20.25 million share secondary offering.
The company, which was recently considered as a possible takeover target, is
doing the secondary offering in order to improve its balance sheet. It's
only a matter of time before other companies start doing the same.
"This is the beginning of companies trying to cure their balance sheets,"
Cramer said, which will cause short-term pain to these companies' share
prices.
There are a lot of companies that need oil to go higher or they will have to
take similar actions, Cramer said. They include Halcon Resources (HK) ,
Goodrich Petroleum (GDP) , and Laredo Petroleum Holdings (LPI) .