8-K: United States Natural Gas Fund Reports $93 Million Net Loss for April 2025 Amid Trading Volatility

The United States Natural Gas Fund, LP (UNG) reported a net loss of over $93 million for the month ended April 30, 2025, primarily driven by significant realized and unrealized losses on commodity futures and swap contracts.

Summary

• For the month ended April 30, 2025, United States Natural Gas Fund, LP (UNG) reported a total income (loss) of $(92,917,008).
• The fund incurred significant realized trading losses on commodity futures of $(44,514,149) and realized losses on swap contracts of $(47,841,475).
• Unrealized losses on the market value of commodity futures amounted to $(1,805,212), partially offset by a small unrealized gain on swap contracts of $372.
• The fund generated positive dividend income of $477,846 and interest income of $734,610.
• Total expenses for the month were $392,169, including General Partner Management Fees of $195,218 and Professional Fees of $107,250.
• The net income (loss) for the month was $(93,309,177).
• Despite the net loss, the Net Asset Value (NAV) increased from $420,926,877 at the beginning of April to $428,703,283 at month-end.
• This NAV increase was primarily due to significant additions of 11,800,000 shares, contributing $199,350,676, which offset withdrawals of 5,600,000 shares totaling $(98,265,093) and the net loss.
• The Net Asset Value Per Share at the end of April 2025 was $16.65, based on 25,746,103 shares outstanding.

Sentiment

Score: 4

Explanation: The significant net loss from trading activities indicates a negative financial performance for the month. However, the overall Net Asset Value increased due to substantial capital inflows, which somewhat mitigates the negative sentiment, resulting in a mixed but leaning negative score.

Positives

• The Net Asset Value (NAV) of the fund increased from $420,926,877 to $428,703,283 during April 2025.
• Significant capital inflows from the addition of 11,800,000 shares, totaling $199,350,676, helped to grow the fund's overall asset base.
• The fund generated positive dividend income of $477,846 and interest income of $734,610.

Negatives

• The fund reported a substantial net income (loss) of $(93,309,177) for the month ended April 30, 2025.
• Realized trading losses on commodity futures amounted to $(44,514,149).
• Realized losses on swap contracts were significant at $(47,841,475).
• Unrealized losses on the market value of commodity futures contributed $(1,805,212) to the overall loss.

Future Outlook

The document does not contain any forward-looking statements or guidance regarding future performance or market conditions.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC (General Partner of United States Natural Gas Fund, LP), represented that, to the best of his knowledge and belief, the information contained in the Account Statement for the month ended April 30, 2025, is accurate and complete.

Industry Context

This filing provides a monthly performance snapshot for a natural gas exchange-traded fund (ETF). The significant trading losses reflect the inherent volatility of the natural gas commodity market during April 2025. As a fund designed to track natural gas prices, its performance is directly tied to movements in the underlying commodity, which can experience rapid and substantial price fluctuations due to supply, demand, geopolitical events, and weather patterns.

Comparison to Industry Standards

• The document does not provide specific comparable companies, projects, or results to assess the fund's performance against global benchmarks or other natural gas-focused investment vehicles. A comprehensive assessment would require comparing UNG's performance against the benchmark natural gas futures contracts (e.g., NYMEX Henry Hub futures) and other natural gas ETFs (e.g., BOIL, KOLD) over the same period to determine if its tracking error or operational efficiency is within industry norms.

Related Party Transactions

• General Partner Management Fees of $195,218 were paid to United States Commodity Funds LLC, which is the general partner of United States Natural Gas Fund, LP.

Stakeholder Impact

• Shareholders experienced a significant net loss on the fund's trading activities for the month, which could impact their investment returns.
• Despite the net loss, the fund's Net Asset Value per share increased slightly due to net capital inflows, indicating continued investor interest and liquidity for those looking to enter or exit the fund.

Key Dates

Recommendation

Keywords

Natural Gas Fund, UNG, Commodity Futures, Swap Contracts, Net Asset Value, SEC Filing, 8-K, Monthly Account Statement, Commodity Exchange Act, Trading Losses, Investment Fund