The United States Natural Gas Fund, LP (UNG) reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with a net asset value (NAV) per share of $16.85, down from $20.36 in the previous year, representing a decrease of approximately 17.24%. The average daily total net assets also fell to $815.4 million from $1.04 billion in 2023. The fund's total income for the year was $75.3 million, a stark contrast to the loss of $660.7 million reported in the prior year. This shift was primarily attributed to lower natural gas prices, which impacted the value of the Natural Gas Futures Contracts held by UNG.
In terms of operational metrics, UNG's total expenses, excluding management fees, increased to $5.23 million from $4.25 million in 2023, largely due to higher tax reporting and professional fees. The management fee paid to United States Commodity Funds LLC (USCF), the fund's general partner, was $4.89 million, down from $6.25 million the previous year. The fund's brokerage commissions also decreased slightly to $2.56 million from $2.70 million, reflecting a lower number of Natural Gas Futures Contracts being traded.
Strategically, UNG underwent a 1-for-4 reverse share split on January 23, 2024, which reduced the number of outstanding shares from approximately 191.3 million to 47.8 million. This action was taken to enhance the trading price of the shares and improve marketability. As of December 31, 2024, UNG had 44,146,103 shares outstanding and reported a market value per share of $16.81. The fund's investment strategy continues to focus on tracking the daily changes in the price of natural gas delivered at the Henry Hub, Louisiana, through investments in futures contracts and other natural gas-related investments.
Looking ahead, UNG's management remains cautious about market conditions, particularly given the volatility in natural gas prices influenced by geopolitical events, including the ongoing Russia-Ukraine conflict. The fund's ability to meet its investment objective may be impacted by regulatory accountability levels and position limits imposed by exchanges. USCF aims to manage the portfolio to ensure that the average daily percentage change in UNG's NAV closely tracks the daily changes in the price of the Benchmark Futures Contract, although the fund acknowledges the inherent risks associated with commodity trading and market fluctuations.
About United States Natural Gas Fund, LP
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