The U.S. Energy Department’s latest storage update showed a natural gas injection well above both market expectations and the five-year average. The larger build, alongside softer weather-driven demand and weaker LNG exports, weighed on prices, with the commodity down nearly 2% on the week. Still, analysts remain constructive, noting that robust industrial demand, steady U.S. output, and rising LNG exports are likely to tighten balances, supporting firmer natural gas pricing as the market moves into 2026.

At this time, we advise investors to focus on stocks such as The Williams Companies ((WMB Quick QuoteWMB - Free Report) ), Cheniere Energy ((LNG Quick QuoteLNG - Free Report) ) and Excelerate Energy ((EE Quick QuoteEE - Free Report) ).

EIA Reports a Build Greater Than Market Expectations

Stockpiles held in underground storage in the lower 48 states rose by 90 billion cubic feet (Bcf) for the week ended Sept. 12, bigger than analysts’ guidance of a 78 Bcf addition. The increase compared with the five-year (2020-2024) average net addition of 74 Bcf and last year’s growth of 56 Bcf for the reported week.

The latest build put total natural gas stocks at 3,433 Bcf, a meagre 4 Bcf (0.1%) below the 2024 level, but 204 Bcf (6.3%) higher than the five-year average.

The total supply of natural gas averaged 111.8 Bcf per day, down 0.6 Bcf per day on a weekly basis, due to a dip in dry production and lower shipments from Canada.

Meanwhile, daily natural gas consumption fell to 98.5 Bcf from 99.6 Bcf the week before, as lower residential/commercial demand offset the rise in power demand.

Natural Gas Prices Retreat

Natural gas futures struggled through the week, swinging around the $3 level before finishing lower. A bigger-than-expected storage injection expanded the surplus above the five-year norm to more than 200 Bcf, reinforcing concerns about oversupply. Softer weather patterns trimmed cooling demand, while weaker LNG exports added to pressure. October futures closed at $2.888 on the New York Mercantile Exchange on Friday, down 1.8% from the previous week. For investors, the near-term backdrop looks heavy, but longer-term trends in LNG growth and industrial demand still suggest opportunity.

Final Thoughts

While U.S. natural gas prices have struggled to hold above $3, the broader setup remains encouraging for investors. Storage builds are well above average, yet the cushion they provide reduces downside risks and keeps the market stable heading into the colder months. Late-season heat has added bursts of demand, trimming injections and offering support to near-term pricing.

Looking forward, industry observers expect prices to edge higher in the next 12 months, reflecting stronger LNG export demand and modest tightening as the shoulder season winds down. The long-term picture continues to favor natural gas. Global demand growth, especially in Asia, remains robust as countries prioritize electrification and grid reliability. Domestically, resilient production, paired with steady industrial consumption and expanding export capacity, signals enduring opportunity. Even if short-term fluctuations persist, the sector’s role as a key transition fuel and its structural growth drivers should give investors confidence that natural gas is positioned for a firmer trajectory into 2026 and beyond.

For now, a cautious but steady outlook seems appropriate. Investors may want to focus on companies with strong fundamentals and the flexibility to navigate short-term swings in the market.

3 Stocks to Focus on

The Williams Companies: With U.S. natural gas demand projected to grow significantly in the long term, The Williams Companies seems to be well-positioned to capitalize on the same, owing to its impressive portfolio of large-scale value-creating projects. With its extensive network handling a third of the U.S. natural gas and significant expansion projects in the pipeline, Zacks Rank #3 (Hold) Williams is set to benefit from favorable industry dynamics and growth prospects.

The Zacks Consensus Estimate for the company’s 2025 earnings per share indicates 14.5% year-over-year growth. Williams beat the Zacks Consensus Estimate for earnings in three of the last four quarters, with the average being 2.5%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cheniere Energy: Being the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal, Cheniere Energy certainly enjoys a distinct competitive advantage. The company is primed for significant revenue and earnings growth on the back of solid operations and long-term contracts.

Cheniere Energy’s Corpus Christi Stage 3 expansion is also progressing well, with construction 68% complete and Train 1 scheduled for initial gas introduction by year-end. The Zacks #3 Ranked company’s gas supply deals for its Sabine Pass and Corpus Christi projects offer excellent cash flow visibility in the coming years.

Excelerate Energy: Based in The Woodlands, TX, the company specializes in LNG infrastructure and services, focusing on Floating Storage Regasification Units (FSRUs) and related terminals. With operations across emerging and developed markets, Excelerate Energy represents 20% of the global FSRU fleet and 5% of global regasification capacity. Founded in 2003, the company aims to expand into LNG-to-power generation and gas distribution, delivering reliable and flexible energy solutions worldwide.

The Zacks Consensus Estimate for Excelerate Energy’s 2025 earnings per share indicates 5.5% year-over-year growth. This #3 Ranked firm has a trailing four-quarter earnings surprise of roughly 16.6%, on average.