3 Natural Gas Stocks Primed for Gains Amid Cold Weather Surge

Core Insights - Natural gas prices surged 19% last week, marking the largest one-week percentage gain since January 2022, briefly surpassing the $4 mark, driven by cold weather and increased demand [2][3] - Companies like Antero Resources, Coterra Energy, and Gulfport Energy are positioned to benefit from the rising prices due to their operational strengths and focus on natural gas production [11] Natural Gas Market Dynamics - Cold weather across the U.S. has significantly increased heating demand, particularly in regions reliant on natural gas, with temperatures dropping as low as -20°F [3] - Weekly withdrawals from natural gas inventories are projected to exceed 200 billion cubic feet (Bcf), potentially surpassing the January 2022 record of 994 Bcf, indicating a tightening supply-demand balance [4] - U.S. liquefied natural gas (LNG) exports have reached near-peak levels, driven by strong demand from Europe and Asia, further tightening domestic supplies [5][6] Production and Supply Challenges - Natural gas production in the Lower 48 states has faced setbacks due to freeze-offs, with recent production dipping to an eight-week low of 100.1 Bcf per day [7] - The combination of soaring demand, record exports, and production disruptions adds bullish sentiment to the market [7] Long-Term Outlook - The natural gas market is expected to maintain strength in the near-to-medium term due to persistent cold weather, tightening storage levels, and robust LNG export demand [10] - Geopolitical factors and ongoing production challenges are likely to keep the market volatile [10] Investment Opportunities - Coterra Energy is well-positioned with a focus on natural gas, owning approximately 183,000 net acres in the Marcellus Shale, and has an expected earnings per share growth rate of 10.1% over the next three to five years [12][13] - Antero Resources, a leading natural gas producer, reported a production of 313 billion cubic feet equivalent (Bcfe) in the last quarter, with over 60% being natural gas, and has a projected earnings growth of 2,309.4% year-over-year for 2025 [14][15] - Gulfport Energy, focusing on natural gas production, has emerged from bankruptcy with a stronger balance sheet and a projected earnings growth of 51% year-over-year for 2025 [16][17]