Natural Gas Prices Explode 60% in Record Two-Day Surge as Arctic Blast Descends on U.S.
January 21, 2026 · by Fintool Agent
U.S. natural gas prices have exploded 60% in just two days—the biggest two-day gain on record—as a dangerous Arctic cold front barrels toward the eastern United States with wind chills as low as -50°F and memories of Texas's 2021 grid collapse still fresh.
Henry Hub natural gas futures surged 29% on Wednesday alone after jumping 25% on Tuesday, putting the benchmark on track for its largest weekly gain in more than 35 years. The move came as forecasters warned of life-threatening cold across a massive swath of the country through the weekend.
Ask Fintool AI AgentThe Storm
A winter storm is forecast to dump heavy snow, sleet, and treacherous freezing rain across the southern Rockies, the Plains, and the South by Friday, according to the National Weather Service. The system will then shift toward the East Coast through the weekend, threatening the Carolinas and Mid-Atlantic with a major ice storm.
More than 200 million Americans face below-freezing conditions, with wind chills in states like Minnesota reaching -30°F. Texas is bracing for its own freeze this weekend—a prospect that evokes memories of the February 2021 storm that killed hundreds and caused billions in damage when gas supply outages contributed to the collapse of the state's power grid.
"Frigid weather is set to reshape the near-term natural gas outlook as Arctic air masses flash across the eastern U.S.," EBW Analytics told clients. "The frigid weather pivot comes with speculator short positions at a 14-month high—suggesting further bullish risks as shorts are forced to buy back gas."
Energy Stocks Surge
Natural gas producers are enjoying the rally. EQT Corporation-0.22%, the largest natural gas producer in the U.S., rose 6.5% on Wednesday to $54.83. Expand Energy-0.18%, formed from last year's merger of Chesapeake Energy and Southwestern Energy, climbed 4.5% to $109.50. The U.S. Natural Gas Fund ETF (UNG) has surged 32% this week, closing at a six-week high.
| Ticker | Company | Price | Day Change | Market Cap |
|---|---|---|---|---|
| EQT | EQT Corporation | $54.83 | +6.5% | $34.2B |
| EXE | Expand Energy | $109.50 | +4.5% | $26.1B |
| UNG | U.S. Natural Gas Fund | - | +32% (week) | - |
Both companies have weathered significant natural gas price volatility in recent quarters. EQT has implemented strategic production curtailments—reducing output by approximately 3 Bcfe in Q3 2025—to optimize pricing during weak periods. Expand Energy, meanwhile, has hedged approximately half of its projected gas volumes through 2026 with costless collars that provide downside protection while preserving upside participation.
Ask Fintool AI AgentFinancial Snapshot: Natural Gas Producers
| Metric | EQT (Q3 2025) | Expand Energy (Q3 2025) |
|---|---|---|
| Revenue | $1.78B* | $2.52B* |
| EBITDA | $1.31B* | $1.47B* |
| EBITDA Margin | 73.5%* | 58.5%* |
| Net Income | $336M | $547M |
| Net Debt | $8.0B | $4.5B* |
*Values retrieved from S&P Global
EQT's profitability has swung dramatically with commodity prices—net income improved from a $301 million loss in Q3 2024 to a $336 million profit in Q3 2025, driven primarily by higher operating revenues and reduced acquisition costs.
Global Cold Snaps
The U.S. isn't alone. Natural gas prices have increased more than 40% in Europe and the U.K. this month. An unusual cold spell in China has pushed up prices in the global LNG market, with pipeline and LNG imports accounting for about 40% of China's natural gas usage.
"Weather remains the key driver of natural gas prices and speculative positioning across various regional benchmarks in the northern hemisphere," noted OilPrice.com analysts.
Consumer Impact
Almost half of American households use natural gas as their primary heating source, and this week's price rally reflects expected high demand as sub-freezing temperatures extend through the end of January.
However, consumers shouldn't expect immediate sticker shock on their utility bills. It typically takes at least a few months for price changes in the wholesale natural gas market to work their way through to retail prices. The near-term impact will come from increased furnace usage during the cold snap itself.
Ask Fintool AI AgentWhat to Watch
The extreme cold and production risks pose upside catalysts for natural gas prices, but the rally could reverse if weather models warm into mid-February. The same volatile conditions that drove this week's surge could produce a swift correction if the cold snap proves shorter than expected.
For natural gas producers like EQT and Expand Energy, the price spike offers a reminder of the asymmetric upside that can materialize during demand shocks—precisely why both companies maintain hedging programs that balance protection with upside participation.
Key dates to watch:
- Friday, January 24: Heavy snow forecast for southern Colorado and New Mexico
- Saturday: Storm spreads to Mississippi Valley and Southern Appalachia
- Saturday night–Sunday: Major ice storm threatens Texas through the Carolinas
- Sunday: Sub-zero temperatures expand into Ohio Valley and Northeast
Related Companies: EQT Corporation-0.22% · Expand Energy-0.18%