Chasing Winter Gains: Why These 3 Natural Gas Stocks Could Rally as Cold Weather Arrives in January 2026

Natural gas markets are preparing for a potential winter surge, with forecasters predicting colder temperatures that could drive heating demand in January 2026. After climbing over 20% throughout 2025, the commodity has recaptured investor attention, particularly among those tracking LNG infrastructure and pipeline operators. Three standout companies—The Williams Companies (WMB), Cheniere Energy (LNG), and Excelerate Energy (EE)—are positioned to capitalize on what could be a pivotal period for sector demand.

Three Infrastructure Players to Watch

Cheniere Energy: LNG Export Leadership Under Pressure

Cheniere Energy maintains a distinct first-mover advantage as the pioneering LNG exporter, operating its 2.6 billion cubic feet per day Sabine Pass terminal with long-term supply contracts locked in. The company’s dual-facility strategy—combining Sabine Pass and Corpus Christi operations—creates multiple revenue streams tied to global LNG appetite. Recent analyst revisions paint an encouraging picture: over the past 60 days, consensus 2025 earnings estimates have surged 26.4%, signaling confidence in the company’s earnings trajectory. Ranked #3 by Zacks, Cheniere offers exposure to both domestic production growth and international energy demand.

The Williams Companies: Midstream Backbone with Expansion Potential

Handling roughly one-third of U.S. natural gas flows, The Williams Companies operates an unmatched pipeline infrastructure that directly benefits from production and export growth. With multiple value-creating projects underway, the company is positioned to capture expansion upside as energy demand evolves. Zacks projects 9.9% year-over-year earnings growth for 2025, though the medium-term outlook appears stronger: a projected three-to-five-year EPS growth rate of 17.6% significantly outpaces the industry average of 10.9%, suggesting structural tailwinds supporting the business.

Excelerate Energy: Floating Infrastructure Play

Excelerate Energy operates a specialized niche in global LNG infrastructure, controlling approximately 20% of the world’s floating storage and regasification units (FSRUs) and 5% of total regasification capacity. Since 2003, the Texas-based firm has built a diversified portfolio spanning emerging and developed markets, now branching into LNG-to-power and gas distribution. While 2025 earnings growth appears modest at 2.4% year-over-year, the company’s track record speaks volumes: a trailing four-quarter earnings surprise of roughly 26.7% demonstrates management’s consistent ability to exceed expectations.

Market Mechanics: What’s Really Driving Prices

Cold Weather Becomes the Dominant Factor

Late December delivered a dramatic 10% rebound in natural gas prices, with futures climbing toward the mid-$4.30s per million BTUs. This surge wasn’t driven by supply disruptions or fundamental shifts—instead, traders responding to deteriorating weather forecasts and closing short positions fueled the move. As January approaches, early temperature predictions are flashing cooler signals, enough to lift heating demand expectations and reshape market sentiment.

The sensitivity tells an important story: small forecast adjustments now trigger outsized price reactions, indicating how finely balanced current market conditions have become. This dynamic creates both risk and opportunity for investors positioned in the sector.

Production and Exports: The Stabilizing Force

U.S. natural gas production remains near record levels, which naturally caps upside price potential. However, LNG export facilities operating at capacity provide a reliable demand outlet, particularly when cold weather spikes heating needs. This dual dynamic—ample domestic supply paired with steady export demand—creates a floor beneath prices while leaving room for weather-driven upswings.

Current storage withdrawal rates track close to historical norms, suggesting supplies are adequate but not excessive. This equilibrium is crucial: it prevents panic-driven crashes while allowing tactical rallies on bullish weather updates.

The Setup Heading Into 2026

As 2026 begins, natural gas faces a constructive but not overwhelming backdrop. Colder trends would lift heating demand and support export economics, while production abundance prevents dramatic supply-driven rallies. For equity investors, this environment favors companies with diversified revenue streams tied to both domestic and international gas flows.

The three stocks highlighted above each offer distinct exposure angles: Cheniere captures global LNG export trends, Williams provides midstream infrastructure leverage, and Excelerate offers specialized floating terminal exposure. Together, they represent the infrastructure backbone supporting natural gas demand as weather patterns shift.

Staying alert to January temperature forecasts will be essential—small moves in cold weather predictions could easily translate into meaningful stock price reactions in this tightly balanced market.