8-K: UNL Reports July 2025 Net Asset Value Decline

United States 12 Month Natural Gas Fund, LP reported a net loss of $881,569 and a decrease in Net Asset Value to $10,911,985 for the month ended July 31, 2025.

Summary

• Net Income (Loss) for July 2025 was $(881,569).
• Total Income (Loss) for the month was $(859,324), primarily driven by an unrealized loss of $(978,174) on commodity futures.
• Total Expenses amounted to $22,245.
• Net Asset Value (NAV) decreased from $12,224,166 at the beginning of July to $10,911,985 at month-end.
• The fund experienced net withdrawals of 50,000 shares, with 50,000 shares added and 100,000 shares withdrawn.
• NAV per share at July 31, 2025, was $8.08 based on 1,350,000 shares outstanding.

Sentiment

Score: 3

Explanation: The fund experienced a significant net loss and a decline in Net Asset Value, primarily due to unrealized losses on commodity futures, coupled with net share withdrawals. This indicates a challenging month for performance and investor sentiment.

Positives

• Realized trading gain on commodity futures of $76,503.
• Generated dividend income of $27,819 and interest income of $13,828.

Negatives

• Significant unrealized loss of $978,174 on the market value of commodity futures.
• Overall net loss of $881,569 for the month.
• Net Asset Value declined by over $1.3 million during the month.
• Net withdrawals of 50,000 shares indicate decreased investor interest or redemptions.

Future Outlook

NA

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, General Partner of United States 12 Month Natural Gas Fund, LP, certified that the information contained in the Account Statement for the month ended July 31, 2025, is accurate and complete to the best of his knowledge and belief.

Industry Context

The fund's performance is directly tied to the volatility and price movements in the natural gas futures market. The significant unrealized loss suggests a challenging month for natural gas prices or the fund's specific futures positions, potentially reflecting broader market trends or specific hedging strategies. The net withdrawals indicate a potential shift in investor sentiment or portfolio rebalancing away from natural gas exposure during this period.

Comparison to Industry Standards

• As a commodity fund, UNL's performance is benchmarked against natural gas futures indices. A significant unrealized loss of nearly $1 million in a single month for a fund of this size ($10.9 million NAV) indicates underperformance relative to a stable or rising natural gas market.
• While specific comparable funds or projects are not detailed in the filing, similar natural gas-focused ETFs or managed futures programs would likely be experiencing similar pressures if the underlying commodity market was weak. For instance, a fund tracking the Henry Hub Natural Gas Futures Index would reflect the general market direction.
• The net outflows suggest that investors may be seeking better returns or lower risk elsewhere, potentially in funds tracking other energy commodities or broader market indices.

Related Party Transactions

• General Partner Management Fees of $5,973 were paid to United States Commodity Funds LLC, the fund's general partner.

Stakeholder Impact

• Shareholders: Experienced a decline in Net Asset Value per share from the beginning to the end of the month, indicating a decrease in investment value.
• General Partner: Received management fees of $5,973, which is a positive for the general partner despite the fund's overall loss.

Key Dates

Recommendation

The fund experienced a substantial net loss and a significant decline in Net Asset Value for the month, driven by large unrealized losses in its core commodity futures holdings. Coupled with net share withdrawals, this indicates poor performance and potentially waning investor confidence. While commodity markets are inherently volatile, this specific filing points to a challenging period for the fund's strategy or the underlying natural gas market, suggesting a 'sell' recommendation for investors seeking to mitigate further potential losses or reallocate capital to better-performing assets.

Keywords

Natural Gas Fund, Commodity Futures, Net Asset Value, UNL, Monthly Statement, Investment Fund, Energy Futures