Natural gas prices ended last week on a modestly positive note, even as supply-side pressures continued to weigh on sentiment. The latest EIA report showed an above-average storage injection, marking the fifth consecutive week of triple-digit builds. While production remains elevated, traders were encouraged by slightly stronger demand signals. In other words, the market appears to be navigating a complex mix of oversupply and seasonal shifts.
At this time, we advise investors to focus on stocks such as Expand Energy EXE, Gulfport Energy GPOR and Antero Resources AR.
EIA Reports a Build Larger Than Market Expectations
Stockpiles held in underground storage in the lower 48 states rose by 101 billion cubic feet (Bcf) for the week ended May 23, bigger than analysts’ guidance of a 99 Bcf addition. The increase compared with the five-year (2020-2024) average net addition of 98 Bcf and last year’s growth of 84 Bcf for the reported week.
The latest build put total natural gas stocks at 2,476 Bcf, 316 Bcf (11.3%) below the 2024 level, but 93 Bcf (3.9%) higher than the five-year average.
The total supply of natural gas averaged 112.5 Bcf per day, up 0.7 Bcf per day on a weekly basis, mainly due to higher shipments from Canada.
Meanwhile, daily natural gas consumption fell to 97.3 Bcf from 98.1 Bcf the week before as power demand weakened.
Natural Gas Prices Still End Up
U.S. natural gas futures ended the week slightly higher, settling at $3.447 per Mcf — up from $3.398 the previous Friday. Despite the gain, bearish pressure continued to dominate market sentiment. The EIA reported a fifth straight week of triple-digit builds, while production continues to be strong, adding to the oversupply backdrop. Mild weather and weak power burn further capped demand.
Forecasts suggest cooler-than-normal conditions will linger across key demand regions like the Midwest and Texas into early June. With electricity output down 4.4% year over year, gas usage from the power sector remains soft. LNG exports inched up to 14.4 Bcf/day, but global demand signals remain muted, especially with Europe’s storage levels still lagging the seasonal norm. Exports to Mexico held firm but lacked enough growth to offset oversupply.
Final Thoughts
The market continues to search for equilibrium under the weight of persistent oversupply. However, with warmer weather likely to emerge later in June, there’s potential for demand to pick up. If that coincides with steady export flows and key technical levels holding firm, prices could gain traction. A sustained heat wave or uptick in LNG activity may provide the needed lift. For now, a measured outlook makes sense. Investors might consider names with solid fundamentals and the agility to weather short-term uncertainty.
3 Stocks to Focus on
Expand Energy: Expand Energy has solidified itself as the largest natural gas producer in the United States, following the Chesapeake-Southwestern merger. With key assets in the Haynesville and Marcellus basins, Zacks Rank #3 (Hold) EXE is well-positioned to capitalize on the increasing demand for natural gas, driven by LNG exports, AI/data centers, EV expansion, and broader electrification trends.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Expand Energy’s 2025 earnings per share indicates a 444.7% year-over-year surge. Over the past 60 days, the Zacks Consensus Estimate for this firm’s 2025 earnings has moved up around 16.5%.
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, with a Zacks Rank of 3, 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 a 61.7% year-over-year surge. Valued at around $3.4 billion, GPOR has a trailing four-quarter earnings surprise of roughly 11.5%, on average.
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 306 billion cubic feet equivalent 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 1,485.7% year-over-year growth. Over the past 90 days, the Zacks Consensus Estimate for this #3 Ranked firm’s 2025 earnings has moved up around 5.1%.
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Gulfport Energy Corporation (GPOR): Free Stock Analysis Report Antero Resources Corporation (AR): Free Stock Analysis Report Expand Energy Corporation (EXE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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