United States 12 Month Natural Gas Fund Reports Net Loss of $1.1M for Q2 2026

The United States 12 Month Natural Gas Fund, LP (UNL) reported a net loss of $1,105,281 for the three months ending June 30, 2026, compared to a loss of $2,383,394 for the same period in 2025. For the six-month period, the fund's net loss was $1,765,430, a significant decline from a net income of $1,801,480 in the prior year. The total income for the first half of 2026 was $291,385, down from $318,208 in 2025, primarily due to lower average interest rates on short-term investments. The fund's average daily total net assets increased to $16,734,690 from $15,199,400 year-over-year, reflecting a rise in investor interest.

In terms of operational metrics, UNL's total assets decreased to $17,413,869 as of June 30, 2026, from $18,815,131 at the end of 2025. The fund's cash and cash equivalents also fell to $15,662,870 from $18,161,325. The number of limited partner shares outstanding increased to 2,700,000 from 2,550,000, with a net asset value per share of $6.42, down from $7.34 at the end of the previous fiscal year. The fund's unrealized loss on open commodity futures contracts improved to $(1,598,890) from $(2,070,955), indicating a reduction in the negative impact of market fluctuations.

Strategically, UNL continues to focus on its investment objective of tracking the average daily percentage changes in the net asset value (NAV) per share to reflect the average daily percentage changes of the spot price of natural gas. The fund holds 510 natural gas futures contracts traded on the NYMEX, with no positions in ICE Futures. The management fee was reduced from 0.75% to 0.60% effective May 1, 2024, which is expected to help improve profitability moving forward.

Market conditions have been volatile, with the average price of the Benchmark Natural Gas Futures Contracts decreasing by approximately 8.86% during the reporting period. The fund's performance has been affected by both contango and backwardation in the natural gas market, which can impact the returns on futures contracts. The fund's management anticipates that ongoing geopolitical tensions, particularly the Russia-Ukraine conflict, will continue to influence natural gas prices and market dynamics.

Looking ahead, UNL's management remains cautious but optimistic about the potential for recovery in natural gas prices, driven by increasing domestic demand and international market dynamics. The fund aims to maintain its strategy of closely tracking the Benchmark Futures Contracts while managing risks associated with market volatility and operational expenses.