U.S. natural gas prices struggled to hold above the key $3 level last week as traders weighed rising storage levels against uneven weather-driven demand. Cooler forecasts heading into early June reduced expectations for stronger power-sector consumption, even as liquefied natural gas (“LNG”) exports remained active.

At this time, investors may want to keep a close watch on natural gas-focused companies such as Antero Resources (AR Quick QuoteAR - Free Report) , Expand Energy (EXE Quick QuoteEXE - Free Report) and Cheniere Energy (LNG Quick QuoteLNG - Free Report) as the market moves into the critical summer demand season.

Storage Growth Keeps Prices in Check

The biggest pressure point for natural gas last week came from another large inventory build. The U.S. Energy Information Administration reported a 101 billion cubic feet (Bcf) storage injection for the week ending May 15. That was above market expectations and also higher than the five-year average injection for the same period.

Working gas inventories climbed to 2,391 Bcf, leaving storage levels about 7% above the five-year average. Strong supply growth has kept the market comfortably supplied, limiting bullish momentum despite periods of hotter weather.

U.S. dry gas production also stayed resilient above 103 Bcf per day. That steady output has made it difficult for prices to sustain rallies.

Natural Gas Prices Swing Through the Week

Natural gas futures experienced sharp swings throughout the week before ending under pressure. Prices began the week with strong momentum as hotter temperatures across parts of the eastern United States lifted cooling demand expectations. June futures climbed above $3 and briefly reached a seven-week high near $3.11 per million British thermal units (MMBtu).

However, sentiment weakened later in the week after cooler forecasts emerged and the larger-than-expected storage build reinforced oversupply concerns. By Thursday and Friday, futures slipped back below the important $3 level, with June gas settling near $2.91 per MMBtu. Overall, natural gas posted a weekly loss as traders focused more on rising inventories and softer near-term weather demand than on temporary heat-driven consumption gains.

LNG Exports Offer Support, But Not Enough Yet

LNG exports continued to provide some support to the market. Cheniere Energy’s Corpus Christi facility reported near-record feedgas flows during the week as new expansion trains continued ramping up operations.

Still, overall LNG feedgas demand softened because of maintenance activity at several export plants, including Golden Pass and Freeport LNG. Average flows to major U.S. LNG terminals declined from April’s record highs, reducing one of the market’s key balancing forces.

That left domestic supply levels too large for current demand conditions. Mild early June forecasts are also expected to limit near-term electricity demand for air conditioning.

Summer Heat Could Shift the Market

Despite recent weakness, the outlook for natural gas is not entirely negative. The market is entering the most weather-sensitive period of the year, and any prolonged heat wave could quickly tighten supply-demand balances. Stronger cooling demand would increase power-sector gas consumption and slow the pace of storage injections.

Hurricane risks also remain an important wildcard during the summer months. Any disruption to Gulf Coast production or LNG operations could rapidly shift sentiment and lift prices.

3 Natural Gas Stocks Worth a Closer Look

For long-term investors, this remains a market driven by timing and weather. Companies such as Antero Resources, Expand Energy and Cheniere Energy could benefit if stronger summer demand eventually helps absorb today’s oversupply conditions.

Antero Resources:It is an independent energy producer focused on natural gas and liquids in the Appalachian Basin. Headquartered in Denver, this Zacks Rank #3 (Hold) company develops low-cost assets in the Marcellus and Utica shales, holding about 515,000 net acres. Antero Resources’ production mix is weighted toward natural gas and NGLs, with minimal oil exposure. AR is also one of the largest U.S. suppliers of natural gas and LPG to export markets. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Resources is supported by its midstream affiliate, Antero Midstream, in which it owns roughly 29%. This integrated setup secures transportation and market access from Appalachia to the Gulf Coast. A low debt profile and steady drilling results provide flexibility and support long-term growth. The Zacks Consensus Estimate for Antero Resources’ 2026 earnings per share indicates a 152.1% year-over-year surge.

Expand Energy:Expand Energy has emerged as the largest natural gas producer in the United States after completing the Chesapeake-Southwestern merger. With a strong footprint in the Haynesville and Marcellus basins, the company is well-positioned to benefit from rising natural gas demand fueled by LNG exports, growing AI and data-center power needs, EV adoption and broader electrification trends.

The Zacks Consensus Estimate for Expand Energy’s 2026 earnings per share indicates a 44.3% year-over-year improvement. The firm, with a Zacks Rank of 3, has a trailing four-quarter earnings surprise of roughly 4.1%, on average.

Cheniere Energy:It is a leading U.S. LNG producer and exporter, operating large-scale facilities along the Gulf Coast. Since starting exports in 2016, it has grown into the largest LNG producer in the United States, supplying customers across more than 40 global markets with reliable and cleaner-burning energy.

Backed by firm gas supply agreements for its Sabine Pass and Corpus Christi facilities, this Zacks #3 Ranked company enjoys strong cash flow visibility and solid long-term growth prospects. The Zacks Consensus Estimate for Cheniere Energy’s 2026 earnings per share indicates 36.1% year-over-year growth.