NEW YORK, Dec. 28, 2025, 12:36 p.m. ET — Market closed
Natural gas stocks are heading into Monday’s U.S. trading session with a familiar winter setup: a fast-changing weather outlook colliding with record-high production, strong LNG feedgas demand, and a key U.S. government storage report that’s been pushed into the start of the week.
While the U.S. stock market is shut for the weekend, the natural gas trade rarely stays quiet for long. Traders and investors are positioning around three near-term swing factors: (1) whether colder early-January forecasts stick, (2) whether LNG export demand remains near recent records, and (3) what the delayed Energy Information Administration (EIA) storage data says about the pace of withdrawals after December’s volatility.
The latest: Henry Hub ended the week higher as colder forecasts re-enter the conversation
In the most recent session referenced in market reporting, U.S. natural gas futures rose in thin holiday-week trading and finished the week with a gain, snapping a losing streak as forecasts pointed to colder weather and higher demand in the weeks ahead. The front-month contract was reported at $4.366 per MMBtu and up 9.6% on the week, helped by expectations for a cooler turn into early January. [1]
Energy Ventures Analysis President Robert DiDona said holiday liquidity can amplify price moves, but emphasized that the “real storyline” was the colder weather models—especially for the eastern U.S. [2]
For natural gas equities, that matters because the group’s day-to-day direction often tracks the Henry Hub narrative, particularly for upstream gas producers (cash-flow sensitivity), and for midstream and LNG names (volume, spreads, and export economics).
But supply remains the counterweight: record output and strong LNG flows
Even as weather can swing sentiment, supply has been stubbornly high. The same reporting cited record-average Lower 48 output around 109.8 Bcf/d in December, alongside LNG feedgas flows around 18.4 Bcf/d so far this month, near record territory. [3]
That combination—high production plus high export demand—is critical for stock pickers:
- Upstream producers can benefit quickly when price rises outpace cost inflation, but they’re still exposed to the risk that production stays too strong for too long.
- LNG-linked names tend to benefit when utilization is high and outages are limited; the market also watches terminal reliability as a driver of U.S. demand.
- Pipelines and midstream operators often behave more defensively, but their longer-term upside increasingly ties to infrastructure that can move associated gas from places like the Permian to the Gulf Coast.
On the LNG operations front, Freeport LNG confirmed earlier that its trains had resumed after a feedgas disruption—an example of the kind of operational headline that can ripple through both commodity prices and LNG-adjacent equities. [4]
The next catalyst: EIA storage data lands Monday at noon
For Monday’s session, the biggest scheduled macro catalyst for U.S. natural gas pricing is the EIA Weekly Natural Gas Storage Report—and the timing matters this week.
Due to the holiday schedule, the EIA shows the Christmas-delayed storage report will be released Monday, Dec. 29, 2025 at 12:00 p.m. ET. The New Year’s Day-delayed report is scheduled for Wednesday, Dec. 31, 2025 at 12:00 p.m. ET. [5]
That “back-to-back” cadence can compress reaction windows and potentially make early-week trading more headline-driven than usual—especially if weather models shift at the same time.
Where inventories stood most recently (and why Monday’s report is so watched)
The EIA’s most recently summarized weekly fundamentals underscored how quickly winter can tighten balances. For the week ending Dec. 12, the EIA reported net withdrawals of 167 Bcf, with working gas stocks at 3,579 Bcf—about 1% above the five-year average but 2% below the year-ago level. [6]
That matters for natural gas stocks because storage “surprises” (withdrawals bigger or smaller than expected) can quickly reprice the curve—often lifting or punishing producer equities first, then rippling through LNG and midstream based on what the move implies for demand and infrastructure utilization.
What the big-picture forecasts say for 2026
Beyond Monday’s near-term catalysts, investors are weighing whether the current winter strength is a short-lived weather premium or the start of a higher-price regime.
In its December Short-Term Energy Outlook, the EIA said it expects the Henry Hub spot price to average around $4.30/MMBtu during the winter heating season (Nov–Mar), and that milder weather in early 2026 and rising production should help moderate prices, with the Henry Hub price averaging about $4.00/MMBtu next year. [7]
The same outlook projects:
- U.S. dry natural gas production averaging about 109 Bcf/d in 2026 (up from 2025), and
- U.S. LNG exports rising from 14.9 Bcf/d in 2025 to 16.3 Bcf/d in 2026. [8]
For natural gas stocks, that forecast mix is important: higher production can cap upside unless demand grows fast enough (exports, power burn, industrial), but persistent LNG growth supports long-run volume and infrastructure buildout.
Infrastructure and the “Permian-to-Gulf” theme: a key tailwind for midstream
A fresh industry analysis circulating over the weekend spotlighted why pipeline capacity—not just commodity price—has become a central investment variable in the natural gas complex.
An Enverus Intelligence Research outlook highlighted the Permian Basin’s role in meeting rising LNG demand, projecting U.S. LNG feedgas demand could rise to 33 Bcf/d by 2030, with potential to approach 50 Bcf/d if expansions move forward, and pointing to substantial additional pipeline capacity aimed at moving gas toward Gulf Coast markets. [9]
Enverus director Alex Ljubojevic flagged that infrastructure may be sufficient to supply incremental LNG feedgas through 2030, but said the longer-term challenge is ensuring durable supply for additional expansions. [10]
Enverus analyst Josephine Mills added that the Permian’s inventory depth differs from maturing dry-gas plays, and expects Permian natural gas production to keep growing modestly over a multi-decade horizon. [11]
For equity investors, that strengthens the case that some pipeline and midstream businesses may be positioned to benefit from the long-run export buildout even if spot gas prices remain volatile.
The longer-term risk debate: will an LNG glut hit valuations?
Not all the recent analysis is bullish.
A Reuters Breakingviews commentary warned that rapid renewable deployment and falling battery costs could undermine long-term LNG demand growth, raising the risk that aggressive capacity additions create an oversupply “sinkhole” by 2030. The piece cited industry voices—including TotalEnergies CEO Patrick Pouyanné—who have cautioned the sector may be “building too much,” and also referenced cost and delivery bottlenecks for gas turbines that could delay gas-fired power buildouts in parts of Asia. [12]
This is a key valuation question for LNG-export-linked equities and long-duration LNG project developers: even if near-term utilization is strong, the market increasingly discounts what it sees as “peak LNG exuberance” risk.
What investors should know before the next session
With U.S. equities reopening Monday, natural gas stock investors will likely be watching a tight cluster of catalysts that can drive outsized moves—especially after a holiday week where liquidity can be thinner.
Key items to monitor heading into Monday (Dec. 29):
- The EIA storage report at 12:00 p.m. ET (delayed for the holiday) — the market will react to the withdrawal size versus expectations and what it implies for end-of-winter inventories. [13]
- Early-January weather model updates — the recent price rebound was explicitly tied to colder outlooks into early January; a warmer flip can unwind gains quickly, while sustained cold can keep the bid under gas prices. [14]
- LNG feedgas and terminal operations — flows near record levels have become a major support pillar; outages or resumptions can move the commodity and LNG-adjacent stocks. [15]
- Production trajectory — record output has been the core bearish counterargument; if supply stays elevated, rallies can stall unless demand accelerates. [16]
- The midweek follow-up storage print (Wednesday at noon ET) — two storage reports in one week can keep volatility elevated and shorten the “memory” of Monday’s data. [17]
Bottom line
Natural gas stocks enter the new week with momentum coming off a weather-driven rebound in futures, but with fundamentals still pulling in opposite directions: colder forecasts and strong LNG demand on one side, record production and ongoing longer-term LNG oversupply concerns on the other. [18]
For investors, Monday’s delayed EIA storage report—and the way the market interprets it alongside shifting January weather models—could set the tone not only for the first regular session after the weekend, but for how the natural gas equity complex trades into year-end. [19]
References
1. www.brecorder.com, 2. www.brecorder.com, 3. www.brecorder.com, 4. www.brecorder.com, 5. ir.eia.gov, 6. www.eia.gov, 7. www.eia.gov, 8. www.eia.gov, 9. www.mrt.com, 10. www.mrt.com, 11. www.mrt.com, 12. www.reuters.com, 13. ir.eia.gov, 14. www.brecorder.com, 15. www.brecorder.com, 16. www.brecorder.com, 17. ir.eia.gov, 18. www.brecorder.com, 19. ir.eia.gov
