Natural Gas Gains 2.7% for the Week: Is Momentum Building?

U.S. natural gas had a positive week, supported by hot weather, improving demand from LNG export facilities and a smaller increase in storage than normal. These factors helped offset concerns that demand could weaken as summer moves toward fall. While natural gas inventories are still above their five-year average, the gap has been narrowing, giving the market a somewhat stronger setup heading into September.

Against this backdrop, investors interested in the natural gas space may want to watch Cheniere Energy LNG, Antero Resources AR and Excelerate Energy EE.

Natural Gas Gains 2.7% for the Week

U.S. natural gas prices moved higher last week as hot weather, stronger LNG demand and a smaller-than-usual storage build supported the market. The October Nymex contract ended Aug. 28 at $2.888 per MMBtu, up 2.7% for the week. Expectations for continued heat into September helped because hotter weather usually lifts electricity demand for air conditioning, which can increase gas use by power plants. At the same time, recovering LNG feedgas flows added another source of demand. The market still faced some pressure from the approaching shoulder season, when cooling demand normally starts to ease, but the sentiment remained supportive overall.

Storage Trends Offer Some Encouragement

The latest storage report provided another positive signal. U.S. natural gas inventories grew by only 15 billion cubic feet (Bcf) for the week ended Aug. 21, much less than the five-year average increase of 33 Bcf. As a result, inventories stood 167 Bcf above the five-year average compared with a surplus of 185 Bcf in the prior week. In simple terms, gas is still plentiful, but the excess supply is gradually shrinking.

LNG exports could also remain an important source of demand. Per data intelligence firm Kpler, U.S. LNG exports during the first seven months of 2026 were 23% higher than a year earlier. Strong overseas gas prices and supply concerns could continue to support demand for U.S. LNG, although very high prices may cause some buyers to postpone purchases.

Outlook Remains Encouraging

Looking ahead, natural gas could remain elevated if hot weather continues into early September and storage additions stay below normal levels. Smaller injections would gradually reduce the inventory surplus and improve the supply-demand balance. LNG demand is another helpful factor, especially as feedgas flows recover and U.S. export capacity expands. These trends could give prices a firmer base even as summer cooling demand begins to fade, helping the market enter autumn on steadier footing.

There are still risks. Production could rise, inventories remain above the five-year average, and very high overseas gas prices may cause some buyers to delay purchases. Even so, the recent improvement in storage trends and the continuing role of LNG exports provide reasons for optimism.

3 Stocks to Focus On

Investors looking for natural gas exposure may therefore want to keep Zacks Rank #3 (Hold) stocks Cheniere Energy, Antero Resources and Excelerate Energy on their watchlists as the market moves toward the winter season. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cheniere Energy: Cheniere Energy is a leading U.S. LNG exporter, with large facilities at Sabine Pass and Corpus Christi. These plants process natural gas into LNG so it can be shipped to customers overseas. Together, they provide more than 55 million tons per year of operating production capacity, while additional capacity is under construction or being developed. This gives Cheniere a large role in connecting U.S. gas supply with global buyers.

The company is still expanding. Corpus Christi Stage 3 is nearing completion, while Sabine Pass Expansion Phase 1 is moving toward a final investment decision. Long-term contracts also provide cash-flow visibility and support the company’s LNG growth plans.

Cheniere Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 21.7%, on average.

Antero Resources: Antero Resources is an Appalachian natural gas producer with added exposure to natural gas liquids, including propane. Its business combines gas production with firm transportation that can move volumes to stronger markets. About 67% of production is already sold into premium markets, giving Antero access to demand centers stretching from West Virginia to the Gulf Coast.

Future demand is an important part of the story. Antero expects growth from LNG exports, Mexico exports, data centers and power generation through 2030. It is also returning to dry-gas drilling with newer well designs, while lower operating costs and hedging are intended to strengthen margins and reduce swings in cash flow.

The Zacks Consensus Estimate for Antero Resources’ 2026 earnings per share indicates a 151.5% year-over-year surge.

Excelerate Energy: Excelerate Energy helps move LNG into markets that need dependable natural gas supply. Its main assets include floating storage and regasification units, or FSRUs, which receive LNG, turn it back into gas and deliver it to local markets. The company has 12 floating regasification terminals in operation and has handled more than 8,300 Bcf of regasified LNG deliveries worldwide.

Growth is coming from new projects and better use of existing vessels. Excelerate is advancing Iraq’s first LNG import terminal, operating the Excelerate Acadia in Jordan and preparing to redeploy the Express to Colombia. It is also converting an LNG carrier into a Floating Storage and Regasification Unit for expected commercial use in 2028.

The Zacks Consensus Estimate for Excelerate Energy’s 2026 earnings per share indicates 22.7% year-over-year growth. This firm has a trailing four-quarter earnings surprise of roughly 11.8%, on average.

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