Why a Big Storage Draw Failed to Lift Natural Gas Prices
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U.S. natural gas futures have pulled back sharply in recent sessions, even after the latest government data showed a triple-digit storage withdrawal. Prices moved lower as traders shifted focus away from storage and back toward weather forecasts and supply trends.At this time, we advise investors to focus on stocks such as Coterra Energy (CTRA), EQT Corporation (EQT) and Excelerate Energy (EE), which are positioned to benefit from longer-term natural gas demand tied to infrastructure and exports.Prices Slide as Weather Turns MilderNatural gas prices struggled throughout the week, finishing near their lowest levels since late October. The front-month futures contract fell more than 3% over the week, settling just below $4 per million British thermal units. Early attempts to rebound faded quickly as updated forecasts showed warmer-than-normal temperatures lasting into early January. With less cold weather expected, traders scaled back expectations for heating demand, putting steady pressure on prices.The market reaction highlighted how sensitive winter trading remains to short-term weather shifts. Even after a cold start to December, the lack of sustained freezing temperatures erased much of the earlier weather-driven premium.Supply Strength Outweighs Storage DrawThe latest Energy Information Administration weekly report showed a large 167 billion cubic feet (Bcf) storage withdrawal. While the draw was well above normal for this time of the year, total inventories remained slightly above the five-year average, suggesting that supply is still adequate to meet demand.At the same time, U.S. natural gas production continued to hover near record levels, averaging around 110 Bcf per day in December. This steady flow of supply has limited upside for prices, even as LNG exports provide a consistent baseline demand.Overall market signals point to caution. Traders do not appear concerned about a late-winter storage shortfall, treating cold-weather price spikes as chances to sell rather than the start of a lasting rally. Unless forecasts turn much colder, an ample supply is expected to keep prices under pressure.Looking Ahead With a Long-Term LensWhile near-term price action remains tied to weather and production, the longer-term outlook is more balanced. LNG exports, pipeline demand and global gas markets continue to provide structural support to U.S. natural gas over time.Short-term volatility is likely to persist through the heart of winter, but investors with a longer horizon may find opportunity in companies linked to natural gas infrastructure and exports. At this time, we advise investors to focus on stocks such as Coterra Energy, EQT and Excelerate Energy, which remain well-positioned as natural gas demand continues to evolve beyond short-term weather swings.3 Stocks to Focus onCoterra Energy: It is an independent upstream operator primarily engaged in the exploration, development and production of natural gas. Headquartered in Houston, TX, the firm owns some 186,000 net acres in the gas-producing Marcellus Shale of the Appalachian Basin. The company’s share of natural gas in its overall production is more than 60%.Coterra’s expected earnings per share growth rate for three to five years is currently 27.8%, which compares favorably with the industry's growth rate of 17.2%. Valued at over $19 billion, Coterra Energy — carrying a Zacks Rank #3 (Hold) — has a trailing four-quarter earnings surprise of roughly 6.6%, on average.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.EQT: EQT is the premier natural gas producer in the domestic market based on average daily sales volumes. With a primary emphasis on the Appalachian Basin, spanning Ohio, Pennsylvania and West Virginia, the company’s share of natural gas in its overall production/sales is more than 90%.EQT beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The Zacks #3 Ranked natural gas producer has a trailing four-quarter earnings surprise of roughly 16.7%, on average.Excelerate Energy: Headquartered in The Woodlands, TX, the company focuses on LNG infrastructure and services, particularly Floating Storage Regasification Units (FSRUs) and associated terminals. Operating across both emerging and developed markets, Excelerate Energy accounts for about 20% of the global FSRU fleet and 5% of total regasification capacity. Established in 2003, the company is now expanding into LNG-to-power and gas distribution, offering reliable and flexible energy solutions worldwide.The Zacks Consensus Estimate for Excelerate Energy’s 2025 earnings per share indicates 2.4% year-over-year growth. This #3 Ranked firm has a trailing four-quarter earnings surprise of roughly 26.7%, on average.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EQT Corporation (EQT): Free Stock Analysis Report Excelerate Energy, Inc. (EE): Free Stock Analysis Report Coterra Energy Inc. (CTRA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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