Why did Cheniere Energy's stock price fall?

Cheniere Energy's stock fell due to shrinking profit margins caused by high US natural gas prices and lower international LNG prices.

What is impacting the profitability of US LNG producers like Cheniere?

Profitability is impacted by the narrowing price spread between US natural gas and global LNG markets, driven by rising domestic prices and anticipated oversupply abroad.

What is the outlook for Cheniere Energy and LNG exporters?

The outlook suggests continued pressure on profit margins due to rising natural gas prices and increasing US LNG export capacity.

Home / Business and Economy / Cheniere Energy Stock Plummets 7.46%

Cheniere Energy Stock Plummets 7.46%

12 Dec

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Summary

Cheniere Energy's stock fell 7.46% from December 3-10, 2025.
Eroding margins due to soaring natural gas prices pressure LNG producers.
Shrinking spreads between US and Asian/European gas prices impact exports.

Cheniere Energy, a leading US liquefied natural gas producer, experienced a significant share price decline of 7.46% in the week of December 3 to December 10, 2025. This downturn places the company among energy stocks that have seen substantial losses recently.

The pressure on Cheniere and other LNG operators stems from diminishing profit margins. This is a consequence of rapidly increasing natural gas prices in the United States, with Henry Hub prices nearing a three-year high. Simultaneously, LNG prices in key Asian and European markets have weakened as anticipation grows for a global supply surplus next year, largely expected from the United States.

The gap between US domestic natural gas prices and international benchmarks like European TTF has narrowed to its lowest point since April 2021. This compression directly squeezes the profitability of LNG exporters. With forecasts indicating a continued rise in US natural gas prices and the addition of new LNG export facilities, these profit margins face further contraction in the coming years.