United States 12 Month Natural Gas Fund Reports Improved Net Income Amid Asset Decline

The United States 12 Month Natural Gas Fund, LP (UNL) reported a significant decline in its financial performance for the six months ended June 30, 2025, compared to the same period in 2024. The fund recorded a net income of $1.8 million, a stark contrast to a net loss of $1.1 million in the previous year. However, the total income for the current period was $1.9 million, which included a realized gain of $2.3 million on closed commodity futures contracts, offset by a substantial unrealized loss of $724,744 on open contracts. The fund's total assets decreased to $12.3 million from $19.0 million at the end of 2024, primarily due to a reduction in cash and cash equivalents and unrealized gains on futures contracts.

In terms of operational metrics, UNL's average daily total net assets fell to $15.2 million from $17.8 million year-over-year. The number of limited partner shares outstanding decreased from 2.3 million to 1.4 million, reflecting a net redemption of shares during the period. The net asset value (NAV) per share increased to $8.73 from $8.12, indicating a positive return for investors despite the overall decline in assets. The fund's market value per share also saw a slight increase, closing at $8.71.

Strategically, UNL has maintained its focus on investing in natural gas futures contracts traded on the NYMEX, holding a total of 304 contracts as of June 30, 2025. The fund did not engage in any acquisitions or significant organizational changes during the reporting period. However, it did experience a reduction in management fees from 0.75% to 0.60% per annum, effective May 1, 2024, which may help improve profitability moving forward.

The filing also highlighted the impact of market conditions on UNL's performance. The average price of the Benchmark Natural Gas Futures Contracts increased by approximately 11.26% during the reporting period, which contributed to the fund's positive NAV performance. However, the fund's exposure to market volatility, particularly due to geopolitical events such as the Russia-Ukraine war, continues to pose risks. The management anticipates that ongoing fluctuations in natural gas prices, driven by both domestic supply and international demand, will influence future performance.

Looking ahead, UNL's management remains cautious but optimistic about the potential for recovery in the natural gas market. The fund aims to closely track the average daily percentage changes in the prices of its Benchmark Futures Contracts, with a target of maintaining its NAV within a 10% range of these changes. The management believes that as market conditions stabilize, UNL could see improved performance, particularly if interest rates remain favorable and demand for natural gas continues to rise.