UNG.NYSE ARCAUnited States Natural Gas Fund, Lp

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

Sentiment:

Annual Results 26 March 2025 10:07 AM

📋All filings for United States Natural Gas Fund, Lp

United States Natural Gas Fund, LP (UNG) releases its 2024 annual financial statements, showing a net income of $65.1 million after a significant loss in the previous year.

Better than expectedThe fund reported a net income of $65.1 million, a significant turnaround from the $671.3 million net loss in 2023.

Summary

United States Natural Gas Fund, LP (UNG) has released its annual financial statements for the year ended December 31, 2024.
The fund reported a net income of $65.1 million, a significant turnaround from the $671.3 million net loss in 2023.
UNG's investment objective is to reflect the daily changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana.
As of December 31, 2024, UNG held 14,459 futures contracts traded on the NYMEX.
A 1-for-4 reverse share split was effected on January 23, 2024.
The net asset value (NAV) per share was $16.85 as of December 31, 2024, compared to $20.36 at the end of 2023.
Total assets decreased from $987.8 million in 2023 to $790.0 million in 2024.
The fund invests primarily in natural gas futures contracts and, to a lesser extent, in other natural gas-related investments.
USCF is the general partner of UNG and is responsible for its management.
The fund is not subject to federal income taxes; partners report their share of income, gain, loss, deductions, or credits on their own tax returns.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the significant improvement in net income compared to the previous year, although the decrease in total assets and NAV per share temper the overall outlook.

Positives

UNG achieved a net income of $65.1 million in 2024, marking a substantial recovery from the previous year's $671.3 million loss.
The fund maintains effective internal control over financial reporting.
UNG has access to OTC swaps through ISDA agreements, providing investment flexibility.

Negatives

Total assets decreased from $987.8 million in 2023 to $790.0 million in 2024.
The NAV per share decreased from $20.36 at the end of 2023 to $16.85 as of December 31, 2024.
UNG is subject to market risks associated with trading futures contracts and swap contracts.

Risks

UNG is exposed to market risk from changes in the value of futures and swap contracts.
Credit risk exists if a counterparty fails to perform under a contract.
Significant market volatility in the natural gas markets could affect the value, pricing, and liquidity of UNG's investments.
The insolvency of UNG's FCM or custodian could result in a loss of assets.
UNG's investments in money market funds are subject to the risk of loss associated with those funds.

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 the 2024 financial statements are enclosed for UNG investors to satisfy annual reporting requirements.
John P. Love represents that the information contained in the Annual Report for the years ended December 31, 2024, 2023 and 2022 is accurate and complete to the best of his knowledge and belief.

Industry Context

UNG operates in the commodity pool sector, providing investors with exposure to natural gas futures contracts. Its performance is closely tied to the price movements of natural gas and the ability of USCF to manage the fund effectively.

Comparison to Industry Standards

UNG's performance can be compared to other commodity ETFs, such as the United States Oil Fund, LP (USO), which tracks crude oil prices.
The fund's expense ratio and tracking error are key metrics to compare against similar natural gas ETFs.
The use of futures contracts and OTC swaps is a common practice among commodity ETFs to achieve their investment objectives.
UNG's licensing agreement with the NYMEX is similar to arrangements other commodity funds have with exchanges for the use of settlement prices and service marks.

Related Party Transactions

USCF receives management fees for its services as the general partner of UNG.
UNG shares fees and expenses for directors and officers liability insurance with related public funds on a pro rata basis.
UNG pays licensing fees to the NYMEX under a licensing agreement.

Stakeholder Impact

Shareholders are impacted by the fund's performance, NAV, and market price of shares.
Authorized Participants are affected by the creation and redemption fees and processes.
The general partner, USCF, benefits from the management fees paid by UNG.

Key Dates

Date	Description
September 11, 2006	United States Natural Gas Fund, LP (UNG) was organized as a limited partnership under the laws of the state of Delaware.
April 18, 2007	UNG commenced investment operations and listed its shares on the AMEX under the ticker symbol UNG.
November 25, 2008	UNG switched to trading on the NYSE Arca under the same ticker symbol.
December 15, 2017	Fifth Amended and Restated Agreement of Limited Partnership dated.
January 4, 2018	UNG effected a 1-for-4 reverse share split.
March 20, 2020	USCF engaged The Bank of New York Mellon to provide UNG with certain custodial, administrative and accounting, and transfer agency services.
April 1, 2020	The BNY Mellon Agreements were effective.
April 26, 2022	The SEC declared effective a registration statement filed by UNG that registered an unlimited number of shares.
October 1, 2022	The agreement with the Marketing Agent has been amended, and the fee of the Marketing Agent is equal to 0.025% of UNGs total net assets.
January 23, 2024	UNG effected a 1-for-4 reverse share split.
January 24, 2024	Post-split shares of UNG began trading.
December 31, 2024	Date of the annual financial statements.
February 28, 2025	Date of the report of independent registered public accounting firm.
March 26, 2025	Date of the report (Date of earliest event reported).

Keywords

natural gas, futures contracts, UNG, United States Natural Gas Fund, financial statements, commodity pool, USCF, net asset value, reverse share split, OTC swaps

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