What’s going on here?
Natural gas prices at the Waha Hub in West Texas dipped to negative $1.26 per mmBtu on September 15, 2025, after pipeline maintenance and limited takeaway options left producers struggling to move their supply.
What does this mean?
When pipelines in the Permian basin get jammed up or shut for repairs, natural gas piles up fast – often sending prices plummeting. That’s exactly what just happened at the Waha Hub, where spot prices nosedived by over 2,300% from the previous session, landing in the red for the sixth time this year. Even though Waha’s 2025 average price of $1.66 per mmBtu is higher than last year, it still sits well below the five-year norm of $2.91. US output recently hit an all-time high, outpacing infrastructure upgrades like the Kinder Morgan Gulf Coast Express expansion and Energy Transfer’s Hugh Brinson pipeline, which won’t be ready until 2026. Until then, these price drops and negative sales could force oil and gas companies to rethink their drilling plans in this cornerstone US energy region.
Why should I care?
For markets: Pipeline bottlenecks ripple across energy stocks.
Negative natural gas prices are a red flag that production is outpacing infrastructure, which eats into profits for exploration and production companies. So far this year, US crude oil futures have dropped 12%, reflecting both global demand worries and local supply snarls. If these bottlenecks make companies pull back on drilling, that could eventually tighten supply and spark shifts in both energy stocks and future commodity pricing.
The bigger picture: Infrastructure gaps could cap future US energy growth.
The Permian basin remains a powerhouse for US oil and gas, shaping both domestic and global energy markets. Federal forecasts still predict record output for 2025, but production growth could slow in 2026 if infrastructure doesn’t catch up. While new pipelines are on the horizon, ongoing bottlenecks may keep a lid on future expansion and ramp up volatility across natural gas and oil markets worldwide.