UNL.NYSE ARCAUnited States 12 Month Natural Gas Fund, Lp

8-K: United States 12 Month Natural Gas Fund, LP Reports Annual Financial Results for 2024

Sentiment:

Annual Results 26 March 2025 10:07 AM

📋All filings for United States 12 Month Natural Gas Fund, Lp

United States 12 Month Natural Gas Fund, LP (UNL) releases its annual financial statements for the year ended December 31, 2024, showing a net loss but an increase in partners' capital.

Worse than expectedThe fund reported a net loss of $(1,219,474) for the year ended December 31, 2024, compared to a net loss of $(13,280,208) for the year ended December 31, 2023.The NAV per share decreased from $8.58 to $8.12 year-over-year.

Summary

United States 12 Month Natural Gas Fund, LP (UNL) issued its annual financial statements for the year ended December 31, 2024.
The fund's investment objective is to reflect the average daily percentage changes of the spot price of natural gas.
UNL primarily invests in natural gas futures contracts.
The net loss for the year ended December 31, 2024, was $(1,219,474), or $(0.46) per limited partner share.
Limited partners' capital increased from $16,295,950 at the beginning of the year to $18,672,121 at the end of the year.
The fund held 515 futures contracts for natural gas as of December 31, 2024.
The fund's net asset value (NAV) per share was $8.12 as of December 31, 2024, compared to $8.58 at the end of 2023.
The fund's total assets were $19,045,543 as of December 31, 2024, compared to $16,389,738 as of December 31, 2023.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While the fund experienced a net loss, there was an increase in partners' capital and total assets. The reduction in management fees is a positive development.

Positives

Limited partners' capital increased from $16,295,950 to $18,672,121 during the year.
Total assets increased from $16,389,738 to $19,045,543 during the year.
The management fee paid to USCF was reduced from 0.75% to 0.60% per annum effective May 1, 2024.

Negatives

UNL reported a net loss of $(1,219,474) for the year ended December 31, 2024.
NAV per share decreased from $8.58 to $8.12 year-over-year.
The fund experienced a realized loss on closed commodity futures contracts of $(7,409,144).

Risks

The fund is exposed to market risk due to changes in the value of futures contracts.
The fund is exposed to credit risk if a counterparty fails to perform.
Significant market volatility in the natural gas markets could affect the value, pricing, and liquidity of the fund's investments.
The insolvency of an FCM could result in the loss of UNL's assets posted with that FCM.
The failure or insolvency of UNL's custodian could result in a substantial loss of UNL's assets.

Future Outlook

The document does not contain specific forward-looking statements or guidance beyond the fund's stated investment objective.

Management Comments

John P. Love, President and Chief Executive Officer of United States Commodity Funds LLC, states that additional information concerning UNL's 2024 results may be found in UNL's Annual Report on Form 10-K.

Industry Context

UNL operates in the commodity-based exchange-traded fund (ETF) sector, providing investors with a way to gain exposure to natural gas futures. The fund's performance is influenced by factors affecting the natural gas market, including supply and demand dynamics, weather patterns, and geopolitical events.

Comparison to Industry Standards

UNL's performance can be compared to other natural gas ETFs such as the United States Natural Gas Fund, LP (UNG).
The expense ratio and tracking error are key metrics for evaluating UNL's efficiency compared to its peers.
The impact of contango and backwardation on UNL's returns is a common factor affecting commodity futures-based ETFs.

Related Party Transactions

USCF, as the general partner, receives management fees from UNL.
UNL shares directors and officers liability insurance and independent director fees with related public funds on a pro rata basis.
UNL entered into a licensing agreement with the NYMEX, paying an asset-based fee for the license.

Stakeholder Impact

Shareholders are impacted by the fund's performance, including changes in NAV and market price.
Authorized Participants are affected by the transaction fees for creating and redeeming baskets of shares.
The general partner, USCF, benefits from the management fees paid by UNL.

Key Dates

Date	Description
June 27, 2007	United States 12 Month Natural Gas Fund, LP was organized as a limited partnership.
December 4, 2007	UNL entered into a licensing agreement with the NYMEX.
November 18, 2009	UNL commenced investment operations and listed its shares on the NYSE Arca.
October 20, 2011	Amendment to the licensing agreement with NYMEX.
October 10, 2013	UNL entered into a brokerage agreement with RBC Capital Markets LLC.
December 15, 2017	Third Amended and Restated Agreement of Limited Partnership.
March 20, 2020	Date of the BNY Mellon Agreements for custodial, administrative, accounting, and transfer agency services.
April 1, 2020	Effective date of the BNY Mellon Agreements.
May 28, 2020	Marex North America, LLC became an additional FCM to UNL.
June 5, 2020	Marex Capital Markets, Inc. became an additional FCM to UNL.
December 3, 2020	Macquarie Futures USA LLC became an additional FCM to UNL.
April 26, 2022	SEC declared effective the registration statement filed by UNL that registered an unlimited number of shares.
October 1, 2022	Amendment to the marketing agent agreement.
March 1, 2023	Date of the report of independent registered public accounting firm for the 2022 financial statements.
August 8, 2023	ADM Investor Services Inc. became an additional FCM to UNL.
April 30, 2024	Termination date of the expense waiver by USCF.
May 1, 2024	Effective date of the reduction in the management fee paid to USCF.
December 31, 2024	End of the reporting period for the annual financial statements.
March 4, 2025	Date of the report of independent registered public accounting firm for the 2024 financial statements.
March 26, 2025	Date of the 8-K filing and issuance of the annual financial statements.

Keywords

natural gas, futures contracts, financial statements, commodity fund, UNL, USCF

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