Roth analysts: Rising US natural gas prices amid Summer heat, project delays

Investing.com - According to an analyst note from Roth on Tuesday, US natural gas prices are climbing across the entire futures curve as summer temperatures rise.

This trend persists despite clear indications that new US Liquefied Natural Gas (OTC:LNGLF) (LNG) export projects are experiencing delays.

Near-month Henry Hub natural gas prices have seen a significant increase, with the price moving up in 22 of the last 33 trading sessions and 8 of the last 10 trading sessions. The price is now up just over 20% for the year.

However, 2024 natural gas prices based on the futures curve have remained flat year-to-date, whereas 2025 futures have risen around 6% this year.

The analysts note that the recent strength in near-month Henry Hub gas prices aligns with the onset of warmer summer weather.

Interestingly, gas-focused US Exploration and Production (E&P) companies have not been performing in line with the positive price action in natural gas futures over recent weeks. Roth analysts suggest that equity investors may be more concerned about delays in LNG projects than gas traders/investors.

Despite these concerns and the recent strong performance of these stocks leading to some profit-taking, most investors Roth has spoken to recently are still inclined to stick with gas-focused US E&Ps as their preferred sector play.

This suggests a medium to long-term confidence in rising natural gas prices due to favorable demand and export dynamics, with gas-focused E&Ps seen as an excellent way to capitalize on this trend.