United States 12 Month Natural Gas Fund, LP SEC 10-Q Report

The United States 12 Month Natural Gas Fund, LP (UNL), a fund that aims to track the average daily percentage changes in the spot price of natural gas, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant improvements in financial performance and provides insights into the fund's operational strategies and market conditions.

Financial Highlights

Net Income (Loss): UNL reported a net income of $453,047 for the nine months ended September 30, 2025, a substantial improvement compared to a net loss of $(1,696,155) for the same period in 2024.

Net Income (Loss) per Limited Partner Share: The net income per limited partner share was $(0.38) for the nine months ended September 30, 2025, compared to $(0.66) for the same period in 2024, reflecting improved earnings per share.

Total Income (Loss): The total income for the nine months ended September 30, 2025, was $628,170, compared to a total loss of $(1,477,433) for the same period in 2024, indicating a positive turnaround.

Total Expenses: Total expenses decreased to $175,123 for the nine months ended September 30, 2025, from $299,704 for the same period in 2024, demonstrating effective cost management.

Total Return: The total return for the nine months ended September 30, 2025, was (4.68)%, compared to (7.69)% for the same period in 2024, indicating better performance relative to the benchmark.

Business Highlights

Investment Objective: UNL aims for the average daily percentage changes in its NAV per share to reflect the average daily percentage changes of the spot price of natural gas delivered at the Henry Hub, Louisiana. This is measured by the daily changes in the average of the prices of 12 futures contracts for natural gas traded on the NYMEX, plus interest earned on UNL’s collateral holdings, less UNL’s expenses.

Futures Contracts Strategy: UNL invests primarily in natural gas futures contracts traded on the NYMEX and ICE Futures, and to a lesser extent in other natural gas-related investments such as cash-settled options, forward contracts, cleared swaps, and OTC transactions. This strategy provides investors with a cost-effective way to invest indirectly in natural gas and hedge against movements in the spot price of natural gas.

Market Conditions and Strategy: UNL's investment strategy is influenced by market conditions, regulatory requirements, and liquidity needs. The fund may invest in other natural gas-related investments to obtain greater liquidity or execute transactions with more favorable pricing.

Regulatory Environment: UNL operates under a regulatory framework that includes exchange accountability levels, position limits, and price fluctuation limits set by the NYMEX and ICE Futures. These regulations impact UNL's ability to invest in futures contracts and may require adjustments to its investment strategy.

Operational Performance: During the nine months ended September 30, 2025, UNL's NAV decreased by approximately 4.68%, reflecting the volatility in natural gas futures prices. The fund's performance is closely aligned with its benchmark, maintaining a tracking error within the established range.

Market Volatility: The natural gas futures market experienced both contango and backwardation during the reporting period, impacting the fund's total returns. UNL's strategy involves rolling the near-month futures contracts to manage these market conditions.

Future Outlook: UNL anticipates that market arbitrage opportunities will continue to cause daily changes in its share price on the NYSE Arca to closely track daily changes in its per share NAV. The fund expects to maintain its investment strategy to achieve its objective of tracking the average daily percentage changes in the prices of the Benchmark Futures Contracts.

Impact of External Factors: Natural disasters, public health disruptions, and geopolitical conflicts could impact the price of commodities and the value, pricing, and liquidity of UNL's investments. These factors could cause volatility in the natural gas market, affecting UNL's ability to meet its investment objective.

SEC Filing: United States 12 Month Natural Gas Fund, LP [ UNL ] - 10-Q - Nov. 07, 2025