Natural Gas Hovers Near $3 as Storage and Weather Set the Tone

Core Insights - Natural gas futures are stabilizing around $3 per million British thermal units (MMBtu), influenced by storage trends and weather forecasts, with LNG exports providing some support [1][2][4] Natural Gas Market Overview - Natural gas prices showed limited volatility, ending the week at $3.103 per MMBtu, approximately 2% lower than the previous week, with the February contract dropping to around $3.12, its lowest since mid-2020 [2] - Gas inventories decreased by 71 billion cubic feet (Bcf) for the week ending January 9, significantly below the five-year average draw of 146 Bcf, resulting in total storage of 3,185 Bcf, which is 106 Bcf above the five-year average [3] Weather and LNG Exports - Weather forecasts are a key factor for natural gas prices, with colder temperatures expected later in January, but recent mild conditions have limited heating demand [4] - Between January 8 and January 15, 33 LNG vessels departed U.S. ports carrying a total of 127 Bcf of gas, indicating steady demand despite high inventories [4] Investment Opportunities - Companies such as Expand Energy (EXE), Excelerate Energy (EE), and Coterra Energy (CTRA) are highlighted as potential investment opportunities due to their focus on natural gas and LNG demand [1][8] - Expand Energy has become the largest natural gas producer in the U.S. post-merger, with a projected 41.6% year-over-year earnings growth for 2026 [9][10] - Excelerate Energy, focusing on LNG infrastructure, is expected to see a 34.2% year-over-year earnings growth for 2026, with a significant share of the global FSRU fleet [11][12] - Coterra Energy, primarily engaged in natural gas production, has a projected earnings growth rate of 27.8% over the next three to five years, outperforming the industry average [13][14]