New Attack on U.S. Nat Gas Fails, and Who Should We Look to Invest?

As the host of the Energy News Beat podcast, I’m always diving into the latest developments in the energy sector, and a recent article by David Blackmon in Forbes caught my eye. Titled “New Attack On U.S. Natural Gas Fails The Perspective Test,” it dismantles the narrative that booming U.S. LNG exports are driving up domestic natural gas prices and, by extension, electricity bills for American consumers.

Blackmon argues that this claim is overly simplistic and doesn’t hold up under scrutiny, backed by data from the U.S. Energy Information Administration (EIA). Let’s break it down and then shift gears to investment opportunities in natural gas companies, focusing on their recent earnings and which midstream, exploration, and LNG players look promising.

Debunking the Attack on U.S. Natural Gas

The core of the “attack” is the idea that increasing LNG exports are gobbling up a larger slice of domestic natural gas production, pushing prices higher at the Henry Hub benchmark and inflating electricity costs since natural gas powers about 40% of U.S. electricity generation. Critics, like the Industrial Energy Consumers of America (IECA), point to recent price spikes and argue that exports are to blame.

But Blackmon counters with hard facts: Despite LNG exports surging since 2016, U.S. natural gas prices have trended downward overall. The average Henry Hub price dropped from $7.24/MMBtu pre-2016 to $3.78/MMBtu post-2016, even adjusting for inflation. In 2025, prices averaged $3.52/MMBtu—affordable compared to historical highs. I have enjoyed all of my podcasts with David, and he is a wealth of knowledge. Our last interview with Doomberg has had over 16K in views on YouTube and listens on Spotify and Apple in 4 days. Having great guests that know what they are talking about makes a difference.

Volatility isn’t new; it’s driven by seasonal demand, weather events like Winter Storm Fern in early 2026, which briefly pushed prices to $7.62/MMBtu in January before dropping back to $2.90 by mid-February.

Regional disparities exist—higher prices in places like California and New York stem from infrastructure bottlenecks and policy restrictions, not exports. Blackmon highlights how low prices have boosted U.S. manufacturing competitiveness, with investor Jeremy Grantham crediting cheap gas for adding trillions to GDP by keeping industrial costs a third of those in Europe or Japan.

Organizations like the U.S. Oil and Gas Association (USOGA) and the American Petroleum Institute (API) echo this, emphasizing that abundant supply benefits consumers and the economy.

In short, the narrative fails because it ignores comprehensive data, inflation adjustments, and the broader demand picture. Natural gas remains a reliable, affordable cornerstone of U.S. energy, supporting growth without the price hikes critics claim.

Investment Opportunities in Natural Gas: Earnings Roundup and Insights

With the sector’s fundamentals strong—low prices fueling demand and exports providing global outlets—investors should eye natural gas companies. I’ve reviewed recent Q4 2025 and full-year earnings from key players in exploration (upstream), midstream (pipelines and storage), and LNG. Note that some Q4 reports (e.g., for LNG-focused firms) are upcoming as of early 2026, so I’ve incorporated available Q3 data and guidance where needed. Here’s a high-level comparison using a table for clarity:

Key Takeaways from Earnings

Exploration: EQT and Antero stood out with beats on production and earnings, generating robust free cash flow amid low prices. Chesapeake (as expanded) emphasized cost cuts and hedging, positioning for resilience.
Midstream: Kinder Morgan delivered record results with strong pipeline contributions, while Williams grew EBITDA significantly despite an EPS miss. Energy Transfer’s income dip highlights volatility but EBITDA growth shows underlying strength.
LNG: With Q4 reports pending, Cheniere’s Q3 reconfirmation of guidance signals stability. NextDecade and Tellurian are development-focused, with potential upside from project milestones but higher risk due to pre-revenue status.

Ideas for Investors

Given the sector’s affordability and growth tailwinds from exports, here are my picks:

Exploration: EQT Corporation – Their $2.5B free cash flow in 2025 and projected $3.5B in 2026 make them a cash machine. Strong Appalachia position and efficiency gains scream buy for growth-oriented investors.
Midstream: Kinder Morgan – Record earnings, high dividend yield (~6%), and massive projects like MSX ensure steady income. Less sensitive to price swings.
LNG: Cheniere Energy – As the U.S. LNG leader, they’re poised to benefit from export demand. Await Q4 results, but raised FY guidance suggests beats ahead. For risk-takers, watch NextDecade’s Train 6 progress.

Natural gas isn’t going anywhere—it’s essential for energy security and transition. As Blackmon points out, attacks like this ignore the facts, but savvy investors can capitalize. Tune into Energy News Beat for more insights!

We do not give investment advice; rather, we show people the tools we use and share the good and the bad of investing in energy. As always, get with your CPA, or certified investment professional. Like today, I got a haircut in my portfolio as the Supreme Court ruled against the Trump Tariffs. I did not have that on my bingo card. President Trump was on the way to balancing the deficit, and I have not gone through the ruling yet, but I am already sure I won’t agree with it.

I will be going through the stock charts of the listed companies on the next Energy News Beat Stand Up.

Author: Stu Turley

Sources: David Blackmon, forbes.com

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