8-K: United States Gasoline Fund, LP Reports Annual Financial Results for 2024

United States Gasoline Fund, LP (UGA) releases its annual financial statements for the year ended December 31, 2024, showing a net income of $5.64 million.

Summary

• United States Gasoline Fund, LP (UGA) has released its annual financial statements for the year ended December 31, 2024.
• The fund reported a net income of $5.64 million, or $2.30 per limited partner share.
• At the end of 2024, UGA's net asset value (NAV) per share was $62.94, with 1,600,000 limited partner shares outstanding.
• The fund's total assets amounted to $100.98 million, while total liabilities were $0.27 million.
• The fund's investment objective is to reflect the daily changes in percentage terms of the spot price of gasoline.
• The fund primarily invests in gasoline futures contracts and other gasoline-related investments.
• The fund held 1,194 futures contracts for gasoline traded on the NYMEX as of December 31, 2024.
• The fund also held $35.5 million in United States Money Market Funds as of December 31, 2024.
• The fund's general partner, United States Commodity Funds LLC (USCF), receives a management fee equal to 0.60% per annum of average daily total net assets.
• Authorized Participants pay UGA a $350 transaction fee for each order they place to create or redeem baskets of 50,000 shares.

Sentiment

Score: 7

Explanation: The document presents a positive financial performance for UGA in 2024, with increased net income and NAV per share. While there are some risks and expenses, the overall tone is favorable.

Positives

• The fund reported a net income of $5.64 million for the year ended December 31, 2024, a significant improvement compared to the $0.54 million net income in 2023.
• The NAV per share increased from $60.64 at the end of 2023 to $62.94 at the end of 2024.
• The fund's total assets increased from $85.17 million in 2023 to $100.98 million in 2024.

Negatives

• The fund experienced a realized loss on closed commodity futures contracts of $2.72 million in 2024.
• Professional fees increased from $201,750 in 2023 to $299,886 in 2024.

Risks

• The fund is subject to market risk arising from changes in the market value of its futures contracts.
• The fund is exposed to credit risk, which is the risk of failure by another party to perform according to the terms of a contract.
• Significant market volatility in the unleaded gasoline markets could affect the value, pricing, and liquidity of the fund's investments.
• The fund's assets are subject to loss should the custodian and/or FCMs cease operations.
• The fund's investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of gasoline or any particular futures contract based on gasoline.

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, 'Thank you for your continued interest in UGA.'

Industry Context

UGA operates in the commodity ETF market, providing investors with exposure to gasoline futures contracts. Its performance is closely tied to the price movements of gasoline and the dynamics of the futures market, including contango and backwardation. UGA competes with other commodity-based exchange-traded funds, including those managed by USCF.

Comparison to Industry Standards

• UGA's expense ratio, implied from the management fee of 0.60% of average daily total net assets, is comparable to other commodity ETFs.
• The fund's investment strategy of primarily investing in near-month gasoline futures contracts is a common approach for gasoline ETFs.
• The fund's performance is benchmarked against the daily changes in the spot price of gasoline, similar to other gasoline-tracking ETFs.
• Comparable companies include Invesco DB Oil Fund (DBO) and United States Oil Fund (USO).

Related Party Transactions

• USCF, as the general partner, receives a management fee from UGA.
• UGA shares fees and expenses with Related Public Funds on a pro rata basis.
• UGA is party to a marketing agent agreement with ALPS Distributors, Inc., where USCF pays the marketing agent a fee.

Stakeholder Impact

• Shareholders benefit from the increased NAV per share and improved financial performance.
• Authorized Participants are able to create and redeem shares in Creation Baskets and Redemption Baskets.
• The fund's performance impacts investors seeking exposure to the gasoline market.

Key Dates

Keywords

gasoline, futures contracts, United States Gasoline Fund, USCF, financial statements, commodity pool, UGA, RBOB