8-K: United States 12 Month Natural Gas Fund Reports $2.54 Million Net Loss for October

The United States 12 Month Natural Gas Fund, LP reported a net loss of $2.54 million for the month of October 2024, primarily driven by losses in commodity futures trading.

Summary

• The United States 12 Month Natural Gas Fund, LP reported a net loss of $2,540,794 for the month ended October 31, 2024.
• This loss was primarily due to a realized trading loss of $342,181 and an unrealized loss of $2,248,379 on commodity futures.
• The fund also generated $44,785 in dividend income and $32,379 in interest income.
• Total expenses for the month were $28,098, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value decreased from $20,192,875 at the beginning of the month to $18,328,469 at the end of the month.
• The net asset value per share was $6.92 based on 2,650,000 shares.

Sentiment

Score: 2

Explanation: The document reports a significant net loss and a decrease in net asset value, indicating a negative sentiment from an investment perspective.

Positives

• The fund generated $44,785 in dividend income and $32,379 in interest income.

Negatives

• The fund experienced significant losses in commodity futures trading, both realized and unrealized.
• The fund's net asset value decreased substantially during the month.

Risks

• The fund is exposed to the volatility of commodity futures markets, which can lead to significant losses.
• Fluctuations in natural gas prices can significantly impact the fund's performance.

Management Comments

• The Chief Financial Officer, Stuart P. Crumbaugh, certified that the information in the account statement is accurate and complete to the best of his knowledge and belief.

Industry Context

This report reflects the performance of a natural gas-focused commodity fund, which is subject to the volatility of the energy markets. The losses are indicative of the risks associated with trading in commodity futures.

Comparison to Industry Standards

• The fund's performance is likely to be compared to other natural gas and commodity-focused exchange-traded products (ETPs).
• For example, other natural gas ETFs such as UNG (United States Natural Gas Fund) and BOIL (ProShares Ultra Bloomberg Natural Gas) would be considered peers.
• The reported loss is significant and would likely be considered a negative result compared to industry benchmarks if other similar funds had positive returns during the same period.

Stakeholder Impact

• Shareholders will experience a decrease in the value of their investment due to the reported losses.
• The fund's performance may impact investor confidence and future investment decisions.

Key Dates

Keywords

Natural Gas, Commodity Futures, Net Asset Value, Trading Loss, Investment Fund, UNL