The U.S. Energy Department’s latest storage report showed an injection slightly above analyst expectations but still below the five-year average, signaling steady market balance as the heating season begins. As a result, natural gas futures posted a nearly 5% weekly gain, marking a third straight advance. Early cold weather forecasts and strong LNG export activity continued to support sentiment, suggesting the market remains positioned for stability — and potentially higher prices — as winter demand builds.

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 Larger Than Market Expectations

Stockpiles held in underground storage in the lower 48 states rose by 33 billion cubic feet (Bcf) for the week ended Oct. 31, higher than analysts’ guidance of a 31 Bcf addition. The increase compared with the five-year (2020-2024) average net addition of 42 Bcf and last year’s growth of 68 Bcf for the reported week.

The latest build put total natural gas stocks at 3,915 Bcf, just 6 Bcf (0.2%) below the 2024 level but 162 Bcf (4.3%) higher than the five-year average.

Natural Gas Futures Extend Weekly Rally

U.S. natural gas futures advanced for the third straight week, as traders positioned themselves for the first major cold snap of the season. December futures closed at $4.315 on the New York Mercantile Exchange on Friday, up 4.6% for the week. Early heating demand and continued strength in LNG exports lent firm support to prices despite steady production and comfortable storage levels. While slightly higher than expectations, the latest EIA report showed a modest storage build. With the market now entering withdrawal season, the tone remains cautiously bullish — weather-driven demand could sustain momentum through mid-November.

Final Thoughts

Natural gas continues to carve out a strong position in the global energy landscape, with prices holding firm above $4. Early winter forecasts, record LNG exports exceeding 17 Bcf/day, and steady industrial demand have strengthened market sentiment even as production remains elevated. The latest EIA report also showed a small storage build, reinforcing a sense of balance in supply and demand ahead of the withdrawal season. With global buyers — from Europe to Asia — leaning heavily on U.S. LNG, the market’s underlying tone remains solid.

Looking into 2026, natural gas appears poised for further gains, reflecting expectations of tighter fundamentals and robust export growth. Demand from AI-driven data centers and expanding LNG capacity adds another layer of structural support. For investors, these conditions offer both stability and upside potential, making natural gas one of the more compelling energy stories as the world transitions toward cleaner and more resilient fuel systems.

For the time, though, a measured yet steady approach appears reasonable. Attention may be better directed toward companies with solid fundamentals and the resilience to handle near-term market fluctuations.

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

The Zacks Consensus Estimate for the company’s 2025 earnings per share indicates 9.9% year-over-year growth. Williams Companies’ expected EPS growth rate for three to five years is currently 13.6%, which compares favorably with the industry's growth rate of 7.5%.

Cheniere Energy: Cheniere Energy holds a clear competitive edge as the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal. Strong operations and long-term contracts position the company for substantial growth in both revenue and earnings.

Backed by firm gas supply agreements for its Sabine Pass and Corpus Christi facilities, the Zacks Rank #3 company enjoys strong cash flow visibility and solid long-term growth prospects. Notably, over the past 60 days, the Zacks Consensus Estimate for Cheniere Energy’s 2025 earnings has moved up 28.3%.

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 8.7% year-over-year growth. This #3 Ranked firm has a trailing four-quarter earnings surprise of roughly 26.7%, on average.