Energy infrastructure companies tied to natural gas are positioned to benefit from LNG exports, rising power demand and the rapid expansion of data centres across the United States.
BNN Bloomberg spoke with Jay Hatfield, founder, CEO and portfolio manager at Infrastructure Capital Advisors, about three energy stocks he believes are well positioned to capture long-term growth from natural gas infrastructure and export demand.
Key Takeaways
- Natural gas remains a central transition fuel, supporting long-term demand for export and pipeline infrastructure.
- LNG exporters benefit from persistent price arbitrage between North American and global natural gas markets.
- Temporary LNG oversupply risks are mitigated by long-term contracts and flexible global demand.
- Data centre expansion is driving new natural gas-fired power generation, particularly in the Permian basin.
- Midstream infrastructure offers exposure to rising volumes without direct commodity price risk.
Read the full transcript below:
ANDREW: Hot Picks. We’re looking at energy, and we’re in for a treat. We’re joined by Jay Hatfield, founder, CEO and portfolio manager at Infrastructure Capital Advisors. Jay, we always get fresh analysis from you. We usually talk about the broad market, economics, government balance sheets and inflation, but today we’re zeroing in on individual stocks. You want to start with Cheniere Energy, a major player in LNG exports.
JAY: Absolutely. This is a big holding in AMCA, our pipeline ETF, and I also founded an MLP, so we know the sector quite well. There are three stocks, but one core theme, and that’s natural gas. North America is the primary repository for natural gas. Because of its geology, the continent has a massive excess of hydrocarbons. One way to benefit from that is through exports. Cheniere is the leading exporter of natural gas out of the U.S. They were the pioneer in LNG. They have more trains coming online, which supports earnings growth, and they continue to benefit from the arbitrage between global natural gas prices and North American prices.
ANDREW: We’re tight for time. Are you concerned about the risk of a global LNG glut?
JAY: It’s actually not a major concern. As long as U.S. and North American prices stay relatively contained, there will still be an arbitrage opportunity. LNG typically trades fairly close to oil prices, so as long as oil doesn’t collapse, that spread should persist. There are also long-term contracts in place. Over the long run, natural gas is a critical transition fuel, so we think any temporary oversupply will be absorbed because it’s both flexible and relatively environmentally friendly.
ANDREW: Targa Resources, trading as TRGP in New York. What kind of energy player are they, and why do you like them?
JAY: They operate in the Permian Basin. They’re primarily a gathering and processing company, which can be a slightly riskier business, but in the Permian it isn’t. They’re benefiting from data centres being built in the region, because natural gas there is effectively very cheap due to limited takeaway capacity. As those data centres come online, new power generation will be built, and Targa should receive better offtake prices for the gas it processes. It’s a strong growth play in what we view as the best basin in North America.
ANDREW: And finally, Kinder Morgan, a huge player in pipelines and energy infrastructure — very much a picks-and-shovels supplier.
JAY: About 65 per cent of Kinder Morgan’s business is natural gas. That rounds out the theme. Instead of processing gas like Targa, Kinder Morgan transports it from producing regions like the Permian to export facilities such as Cheniere or to large natural gas plants that power the grid, particularly incremental demand from data centres. That’s how we like to play energy. We’re not particularly bullish on oil. Prices may bounce from current lows, but lower oil and natural gas prices are actually positive for North American exports because they support throughput volumes. We prefer not to take direct commodity price risk through producers.
ANDREW: Jay, always great to talk to you. Thanks very much, and have a great weekend.
JAY: You too, Andrew. Thank you.
ANDREW: Jay Hatfield of Infrastructure Capital Advisors.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| LNG NYSE | N | N | Y |
| TRGP NYSE | N | N | Y |
| KMI NYSE | N | N | Y |
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This BNN Bloomberg summary and transcript of the Dec. 12, 2025 interview with Jay Hatfield are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
