The U.S. Energy Department's latest inventory report showed a higher-than-expected increase in natural gas supplies. Following the year’s first build, futures ended the week down.

Notwithstanding the weekly dip, natural gas prices remain resilient, driven by limited production growth and strong global demand. Trading around $4 after hitting its highest level since December 2022 earlier this month, the market remains firm. Given this backdrop, investors may focus on stocks such as Antero Resources (AR Quick QuoteAR - Free Report) , Coterra Energy (CTRA Quick QuoteCTRA - Free Report) and Gulfport Energy (GPOR Quick QuoteGPOR - Free Report) .

The First Natural Gas Injection of 2025

Stockpiles held in underground storage in the lower 48 states rose by 9 billion cubic feet (Bcf) for the week ended March 14, above analysts’ guidance of a 3 Bcf addition. The increase compared with the five-year (2020-2024) average net decline of 31 Bcf and last year’s injection of 5 Bcf for the reported week.

The first weekly build of 2025 put total natural gas stocks at 1,707 Bcf, 624 Bcf (26.8%) below the 2024 level, and 190 Bcf (10%) lower than the five-year average.

The total supply of natural gas averaged 110.6 Bcf per day, down 0.1 Bcf per day on a weekly basis due to lower shipments from Canada, partly offset by higher dry production.

Meanwhile, daily consumption fell to 104.3 Bcf from 110.1 Bcf in the previous week, mainly reflecting lower residential/commercial usage due to warm weather conditions across most of the country.

Prices Fall, But Supply Constraints Keep Market Tight

Natural gas prices fell last week following a larger-than-expected inventory injection. April futures closed at $3.98 on the New York Mercantile Exchange, marking a 3% decrease. 

Natural gas prices dipped last week after a larger-than-anticipated inventory build, with April futures settling at $3.98 on the New York Mercantile Exchange — a 3% decline.

Despite this pullback, prices remain elevated, having recently hit a two-year high of $4.491. A mix of cold weather, supply disruptions, and global demand has kept the market strong. The U.S. and Europe both experienced record storage withdrawals this winter, tightening supply conditions and supporting higher price levels.

In 2024, the natural gas market faced significant constraints due to extreme winter conditions and sluggish production growth. Multiple Arctic cold snaps in the United States drove up heating demand while causing freeze-offs in key production regions like Appalachia and the Permian, reducing output. By late February 2025, working gas storage had dropped 5% below the five-year average, further tightening supply.

Europe’s energy crisis has intensified with the Jan. 1, 2025, shutdown of Russian gas transit through Ukraine, leaving the continent increasingly dependent on LNG imports, especially from the United States. As the world’s top LNG supplier, the United States is exporting a record 16 Bcf per day, with European and Asian buyers competing for cargoes. This steady export demand is straining domestic supply, reinforcing upward pressure on prices despite temporary pullbacks.

Market Outlook

As summer 2025 approaches, attention will shift to storage injections. The EIA projects that U.S. natural gas inventories will end the withdrawal season in March by about 4% below the five-year average, which could keep prices supported. With electricity demand expected to climb during the warmer months and LNG exports remaining at record highs, natural gas prices are likely to stay around $4/MMBtu in the near term.

3 Stocks You Can Focus on

Antero Resources: It is one of the leading natural gas producers in the United States. Antero Resources has more than two decades of premium low-cost drilling inventory in the prolific Appalachian Basin, indicating a strong production outlook. AR churned out 316 billion cubic feet equivalent (Bcfe) in the most recent quarter, of which more than 60% was natural gas.

The Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates an astounding 1,381% year-over-year growth. Over the past 60 days, the Zacks Rank #1 (Strong Buy) AR has seen its 2025 EPS projection move up around 23.4%.
(AR Quick QuoteAR - Free Report)
You can see the complete list of today’s Zacks #1 Rank stocks here.

Coterra 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 183,000 net acres in the gas-producing Marcellus Shale of the Appalachian Basin. The Zacks Rank #3 (Hold) company’s share of natural gas in its overall production is around 65%.

Coterra’s expected earnings per share growth rate for three to five years is currently 15.5%, which compares favorably with the industry's growth rate of 11.4%. Valued at around $22 billion, the Zacks Consensus Estimate for CTRA’s 2025 earnings has moved up around 4.8% over the past 60 days.

Gulfport Energy: Gulfport Energy is a natural gas-focused exploration and production company headquartered in Oklahoma City, OK. Operating primarily in the Utica Shale in Ohio and the SCOOP play in Oklahoma, Gulfport has emerged from bankruptcy with a stronger balance sheet and a free cash flow-oriented strategy. With more than 90% natural gas production, the company prioritizes Utica development to drive free cash flow, reduce debt and align with ESG-focused investor expectations.

The Zacks Consensus Estimate for Gulfport Energy’s 2025 earnings per share indicates 62.2% year-over-year growth. This Zacks Rank #3 firm has a Growth Score of B. Over the past 60 days, the Zacks Consensus Estimate for GPOR’s 2025 earnings has gone up around 11.8%.