Natural gas had a positive week as unusually warm weather kept demand for electricity and air conditioning strong across much of the United States. Activity at LNG export plants also improved as maintenance work ended at several facilities. At the same time, recent increases in gas kept in storage were smaller than normal, which helped prices. However, plentiful U.S. production prevented prices from rising sharply. Overall, the market showed signs of improving demand, even as strong supply remained an important concern.

Given this improving backdrop, investors may want to focus on natural gas-related stocks, such as The Williams Companies (WMB Quick QuoteWMB - Free Report) , Range Resources (RRC Quick QuoteRRC - Free Report) and Expand Energy (EXE Quick QuoteEXE - Free Report) .

Prices End the Week Higher

Natural gas futures finished last week on a positive note, gaining about 3% to settle at $2.975 per MMBtu. Hotter-than-normal weather across much of the central and midwestern United States supported cooling demand. Total natural gas demand increased 2% during the week, helped mainly by a 12% jump in LNG feedgas consumption as maintenance outages ended at several export facilities. At the same time, strong U.S. production and comfortable overall inventory levels kept the rally in check. Still, improving demand conditions helped natural gas finish the week on firmer ground.

What Helped Natural Gas Prices?

Weather was one of the biggest factors. Temperatures were above average across much of the central and midwestern United States last week, supporting demand for cooling and electricity generation.

The latest government report also showed that only 30 billion cubic feet (Bcf) of gas was added to storage, below the five-year average build of 37 Bcf and last year’s 50 Bcf increase. Total working gas in storage was 3,214 Bcf, 5% above the five-year average but 2% below the year-ago level.

Demand from LNG export facilities also improved. LNG feedgas demand rose 12%, while the LNG-carrying capacity of vessels leaving U.S. ports increased to 123 Bcf from the previous week. However, U.S. gas supply also increased 1%, meaning supply remains plentiful.

Outlook: Reasons to Stay Hopeful

The outlook for natural gas appears cautiously positive, although some challenges remain. U.S. production is still high, and inventories remain above their five-year seasonal average. However, the latest storage increase was smaller than both the five-year average and last year’s build, suggesting that demand is absorbing available supply at a healthier pace. Moreover, total storage is now below the year-ago level despite remaining above its five-year average.

For investors, this means the natural gas market may have room to improve if demand stays healthy and supply growth becomes less aggressive. The recent increase in LNG feedgas demand is particularly encouraging, while stronger LNG shipping activity could provide another source of support. Strong production could limit a sharp price rally, but healthy cooling demand, growing exports and smaller-than-normal storage additions could help keep prices supported. With the balance between supply and demand becoming more favorable, natural gas-focused investors can remain hopeful.

3 Stocks to Focus On

Investors looking for exposure to this theme may consider Zacks Rank #3 (Hold) stocks The Williams Companies, Range Resources and Expand Energy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Williams Companies: Williams Companies is a natural gas infrastructure operator with businesses spanning transmission, gathering, processing, storage and related marketing. Its network is concentrated around major U.S. supply and demand centers, with Transco serving as a key pipeline corridor. The company also has large gathering positions in the Marcellus, Utica and Haynesville, which together account for most of its gathering volumes.

In the Haynesville, Williams is expanding its wellhead-to-market system, supported by gathering capacity, Gulf Coast connections and 120 Bcf of storage. Its assets are positioned to move gas toward power plants, industrial users and LNG export facilities, giving the company broad exposure to rising natural gas demand.

The Zacks Consensus Estimate for the company’s 2026 earnings per share indicates 20% year-over-year growth. Williams Companies’ expected EPS growth rate for three to five years is 19.6%, which compares favorably with the industry's growth rate of 12.5%.

Range Resources: Range Resources is a natural gas-focused producer centered in Pennsylvania’s Appalachian Basin, with development led by its core Marcellus acreage in southwest Pennsylvania. The company controls about 450,000 net acres there and another 70,000 in northeast Pennsylvania. Its large, contiguous position supports efficient drilling and gives RRC more than 30 years of high-quality Marcellus inventory.

Range Resources sells natural gas into several markets rather than relying on one local outlet. Roughly 30% goes to the Midwest, while about 25% each reaches the Gulf Coast and LNG/premium Gulf markets, with the balance serving local and Northeast customers. This market reach supports its long-term gas production strategy.

Range Resources beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The natural gas producer has a trailing four-quarter earnings surprise of roughly 22.5%, on average.

Expand Energy: Expand Energy is North America’s largest natural gas producer, with about 2.0 million net acres and 2026 production near 7.5 Bcfe per day. Its operations span three main areas: Haynesville, northeast Appalachia and southwest Appalachia. These assets provide deep drilling inventory and place production close to major demand centers, while an interconnected transportation network helps move gas to higher-value markets.

The company is also building a broader natural gas platform beyond production. Its planned Twin Eagle acquisition would expand marketing, storage and firm transportation capabilities across North America. That combination is designed to connect Expand’s gas supply with power, industrial and LNG customers from coast to coast.

The Zacks Consensus Estimate for Expand Energy’s 2026 earnings per share indicates a 44.9% year-over-year improvement. The firm has a trailing four-quarter earnings surprise of roughly 7.2%, on average.