United States Natural Gas Fund Reports $208.8 Million Net Income in Q1 2025

The United States Natural Gas Fund, LP (UNG) reported significant financial performance for the first quarter of 2025, with a net income of $208.8 million, a substantial recovery from a net loss of $164.6 million in the same period last year. This translates to a net income per limited partner share of $4.69, compared to a loss of $5.62 per share in the prior year. Total income for the quarter reached $210.8 million, driven primarily by realized gains on commodity futures and swap contracts, which amounted to $228.7 million, compared to a loss of $131.3 million in the previous year.

The fund's total assets decreased to $446.4 million as of March 31, 2025, down from $790.0 million at the end of 2024. This decline was largely attributed to a significant reduction in cash and cash equivalents, which fell from $593.5 million to $294.6 million. The number of limited partner shares outstanding also decreased from 44.1 million to 19.6 million, reflecting a net redemption of shares during the quarter. The net asset value (NAV) per share increased to $21.54, up from $16.85 at the end of the previous quarter.

Strategically, UNG has continued to focus on its investment objective of tracking the price of natural gas through futures contracts. As of March 31, 2025, the fund held 5,138 NYMEX Natural Gas Futures contracts. The fund's management, United States Commodity Funds LLC (USCF), has emphasized its commitment to maintaining a portfolio that closely aligns with the daily changes in the price of natural gas, despite the challenges posed by market volatility and regulatory constraints.

Operationally, the fund's average daily total net assets were approximately $612.4 million, down from $823.0 million in the prior year. The average yield on investments decreased to 3.80% from 4.78%, reflecting lower interest rates on cash and cash equivalents. The total expenses for the quarter were $1.9 million, a decrease from $2.6 million in the previous year, primarily due to lower brokerage commissions and management fees. The fund's management fees were $905,948, down from $1.2 million, as the average daily total net assets declined.

Looking ahead, UNG's management remains cautious about market conditions, particularly in light of ongoing geopolitical tensions and fluctuating natural gas prices. The fund's strategy will continue to adapt to these conditions, with a focus on maintaining liquidity and managing risks associated with commodity price volatility. The management team anticipates that the demand for natural gas, particularly for liquefied natural gas (LNG) exports, may provide opportunities for growth, although they acknowledge the potential for continued market fluctuations.