Invesco DB Energy Fund 10-Q for FY2022 Q1

Invesco DB Energy Fund (DBE)

10-Q 2022-05-06 For: 2022-03-31

Added on April 11, 2026

About this 10-Q

Invesco DB Energy Fund filed this 10-Q on May 6, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $43.29M; up 239.8% from net income of $12.74M a year earlier

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Delaware	87-0778060
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, Illinois	60515
(Address of Principal Executive Offices)	(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units of Beneficial Interest	DBE	NYSE Arca, Inc.

Large Accelerated Filer	☐	Accelerated Filer	☐

Non-Accelerated Filer	☒	Smaller reporting company	☒

		Emerging growth company	☐


		Page
PART I.	FINANCIAL INFORMATION	1

ITEM 1.	Financial Statements	1
	Notes to Unaudited Financial Statements	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	26
ITEM 4.	Controls and Procedures	27

PART II.	OTHER INFORMATION	28

Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	29

SIGNATURES		30

	March 31,		December 31,
	2022		2021
Assets
United States Treasury Obligations, at value (cost $39,963,132 and $37,999,658, respectively)	$	39,949,853	$	37,999,954
Affiliated investments, at value (cost $191,693,601 and $71,778,110, respectively)		191,710,318		71,801,967
Receivable for:
Dividends from affiliates		18,328		1,282
Total assets	$	231,678,499	$	109,803,203

Liabilities
Other investments:
Variation margin payable- Commodity Futures Contracts	$	7,725,496	$	2,193,062
Payable for:
Management fees		121,595		68,368
Brokerage commissions and fees		4,944		5,014
Total liabilities		7,852,035		2,266,444
Commitments and Contingencies (Note 10)

Equity
Shareholder's equity—General Shares		923		683
Shareholders' equity—Shares		223,825,541		107,536,076
Total shareholders' equity		223,826,464		107,536,759
Total liabilities and equity	$	231,678,499	$	109,803,203

General Shares outstanding	40			40
Shares outstanding		9,700,000		6,300,000
Net asset value per share	$	23.07	$	17.07
Market value per share	$	23.12	$	17.12

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.170% due April 21, 2022^(b)		7.15	%	$	15,998,911	$	16,000,000
U.S. Treasury Bills, 0.360% due June 2, 2022^(b)		3.57			7,995,522		8,000,000
U.S. Treasury Bills, 0.380% due June 9, 2022^(b)		0.89			1,998,570		2,000,000
U.S. Treasury Bills, 0.365% due July 21, 2022^(b)		2.68			5,987,767		6,000,000
U.S. Treasury Bills, 0.670% due September 1, 2022^(b)		3.56			7,969,083		8,000,000
Total United States Treasury Obligations (cost $39,963,132)		17.85	%	$	39,949,853
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $10,031,643)^(c)		4.49	%	$	10,048,360		95,200
Money Market Mutual Fund
Invesco Government & Agency Portfolio, Institutional Class, 0.25% (cost $181,661,958)^(c)(d)		81.16			181,661,958		181,661,958
Total Affiliated Investments (cost $191,693,601)		85.65	%	$	191,710,318
Total Investments in Securities (cost $231,656,733)		103.50	%	$	231,660,171

Open Commodity Futures Contracts	Number of Contracts	Expiration Date	Notional Value		Value^(e)		Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
ICE-UK Brent Crude	490	May - 2022	$	50,337,700	$	11,145,503	$	11,145,503
NYMEX Natural Gas	440	April - 2022		24,824,800		7,644,158		7,644,158
NYMEX NY Harbor ULSD	403	May - 2022		54,178,433		12,542,829		12,542,829
NYMEX RBOB Gasoline	455	November - 2022		48,904,401		6,716,762		6,716,762
NYMEX WTI Crude	515	December - 2022		45,639,300		8,602,726		8,602,726
Total Commodity Futures Contracts					$	46,651,978	$	46,651,978

	Three Months Ended
	March 31,
	2022			2021
Income
Interest Income	$	15,722		$	4,874
Dividends from Affiliates		22,946			4,427
Total Income		38,668			9,301
Expenses
Management Fees		282,064			138,892
Brokerage Commissions and Fees		3,743			2,693
Interest Expense		604			277
Total Expenses		286,411			141,862
Less: Waivers		(3,925	)		(9,940	)
Net Expenses		282,486			131,922
Net Investment Income (Loss)		(243,818	)		(122,621	)
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts
Net Realized Gain (Loss) on
Commodity Futures Contracts		3,060,075			6,480,874
Net Realized Gain (Loss)		3,060,075			6,480,874
Net Change in Unrealized Gain (Loss) on
United States Treasury Obligations		(13,575	)		3,898
Affiliated Investments		(7,140	)		1,428
Commodity Futures Contracts		40,490,871			6,375,653
Net Change in Unrealized Gain (Loss)		40,470,156			6,380,979
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts		43,530,231			12,861,853
Net Income (Loss)	$	43,286,413		$	12,739,232

	General Shares					Shares					Total
	Shares		Total Equity			Shares		Total Equity			Shareholders' Equity
Balance at December 31, 2021	40		$	683			6,300,000	$	107,536,076		$	107,536,759
Purchases of Shares							3,400,000		73,003,292			73,003,292
Redemption of Shares							—		—			—
Net Increase (Decrease) due to Share Transactions							3,400,000		73,003,292			73,003,292
Net Income (Loss)
Net Investment Income (Loss)				(1	)				(243,817	)		(243,818	)
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				17					3,060,058			3,060,075
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				224					40,469,932			40,470,156
Net Income (Loss)				240					43,286,173			43,286,413
Net Change in Shareholders' Equity		—		240			3,400,000		116,289,465			116,289,705
Balance at March 31, 2022	40		$	923			9,700,000	$	223,825,541		$	223,826,464

	Level 1		Level 2		Level 3		Total
Investments in Securities
United States Treasury Obligations	$	—	$	39,949,853	$	—	$	39,949,853
Exchange-Traded Fund		10,048,360		—		—		10,048,360
Money Market Mutual Fund		181,661,958		—		—		181,661,958
Total Investments in Securities		191,710,318		39,949,853		—		231,660,171
Other Investments - Assets ^(a)
Commodity Futures Contracts		46,651,978		—		—		46,651,978
Total Investments	$	238,362,296	$	39,949,853	$	—	$	278,312,149

	March 31, 2022				December 31, 2021
Risk Exposure/Derivative Type ^(a)	Assets		Liabilities		Assets		Liabilities
Commodity risk
Commodity Futures Contracts	$	46,651,978	$	—	$	6,161,107	$	—

		For the Three Months Ended
	Location of Gain (Loss) on Derivatives	March 31,
Risk Exposure/Derivative Type	Recognized in Income	2022		2021
Commodity risk
Commodity Futures Contracts	Net Realized Gain (Loss)	$	3,060,075	$	6,480,874
	Net Change in Unrealized Gain (Loss)		40,490,871		6,375,653
Total		$	43,550,946	$	12,856,527

	Value 12/31/2021		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 03/31/2022		Dividend Income
Invesco Treasury Collateral ETF	$	10,055,500	$	—	$	—		$	(7,140	)	$	—	$	10,048,360	$	605
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		61,746,467		181,901,978		(61,986,487	)		—			—		181,661,958		22,341
Total	$	71,801,967	$	181,901,978	$	(61,986,487	)	$	(7,140	)	$	—	$	191,710,318	$	22,946

	Value 12/31/2020		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)		Realized Gain (Loss)		Value 03/31/2021		Dividend Income
Invesco Treasury Collateral ETF	$	10,059,784	$	—	$	—		$	1,428	$	—	$	10,061,212	$	1,497
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		28,209,192		51,796,508		(39,062,237	)		—		—		40,943,463		2,930
Total	$	38,268,976	$	51,796,508	$	(39,062,237	)	$	1,428	$	—	$	51,004,675	$	4,427

Index Commodity	Fund Weight (%)
Brent Crude Oil		22.48	%
Light Sweet Crude Oil		20.38
Natural Gas		11.10
RBOB Gasoline		21.84
Ultra-Low Sulphur Diesel		24.20
Closing Level as of March 31, 2022:		100.00	%

	Three Months Ended
	March 31,
	2022			2021
Cash flows from operating activities:
Net Income (Loss)	$	43,286,413		$	12,739,232
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Cost of securities purchased		(29,950,052	)		(22,995,678	)
Proceeds from securities sold and matured		28,002,300			8,000,000
Cost of affiliated investments purchased		(181,901,978	)		(51,796,508	)
Proceeds from affiliated investments sold		61,986,487			39,062,237
Net accretion of discount on United States Treasury Obligations		(15,722	)		(4,874	)
Net realized (gain) loss on United States Treasury Obligations and Affiliated Investments	—				—
Net change in unrealized (gain) loss on United States Treasury Obligations and Affiliated Investments		20,715			(5,326	)
Change in operating assets and liabilities:
Variation margin - Commodity Futures Contracts		5,532,434			1,359,901
Dividends from affiliates		(17,046	)		(622	)
Management fees		53,227			16,356
Brokerage commissions and fees		(70	)		14
Net cash provided by (used in) operating activities		(73,003,292	)		(13,625,268	)
Cash flows from financing activities:
Proceeds from purchases of Shares		73,003,292			17,319,130
Redemption of Shares		—			(3,940,028	)
Net cash provided by (used in) financing activities		73,003,292			13,379,102
Net change in cash		—			(246,166	)
Cash at beginning of period		—			246,166
Cash at end of period	$	—		$	—
Supplemental disclosure of cash flow information
Cash paid for interest	$	604		$	277

	Three Months Ended
	March 31,
	2022			2021
Net Asset Value
Net asset value per Share, beginning of period	$	17.07		$	10.86
Net realized and change in unrealized gain (loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts ^(a)		6.03			2.20
Net investment income (loss) ^(b)		(0.03	)		(0.02	)
Net income (loss)		6.00			2.18
Net asset value per Share, end of period	$	23.07		$	13.04
Market value per Share, beginning of period ^(c)	$	17.12		$	10.86
Market value per Share, end of period ^(c)	$	23.12		$	13.07

Ratio to average Net Assets ^(d)
Net investment income (loss)		(0.65	)%		(0.66	)%
Expenses, after waivers		0.75	%		0.71	%
Expenses, prior to waivers		0.76	%		0.77	%
Total Return, at net asset value ^(e)		35.15	%		20.07	%
Total Return, at market value ^(e)		35.05	%		20.35	%

	AGGREGATE RETURNS FOR INDICES IN THE DBIQ-OY ENERGY TR™
	Three Months Ended
	March 31,
Underlying Index	2022			2021
DB Light Sweet Crude Oil Indices		28.01	%		24.32	%
DB Ultra-Low Sulphur Diesel Indices	41.89			18.95
DB Brent Crude Oil Indices		35.56			18.29
DB RBOB Gasoline Indices		26.27			25.90
DB Natural Gas Indices		60.17			2.09
AGGREGATE RETURN		35.53	%		20.28	%

								For the Year Ended,
								December 31, 2021
Description	Net Assets		Daily Volatility			VaR* (99 Percentile)		Number of times VaR Exceeded
Invesco DB Energy Fund	$	107,536,759		1.46	%	$	3,650,574		13

Period of Redemption	Total Number of Shares Redeemed		Average Price Paid per Share
January 1, 2022 to January 31, 2022		—	$	—
February 1, 2022 to February 28, 2022		—		—
March 1, 2022 to March 31, 2021		—		—
Total		—	$	—


31.1		Certification required under Exchange Act Rules 13a-14 and 15d-14 (filed herewith)

31.2		Certification required under Exchange Act Rules 13a-14 and 15d-14 (filed herewith)

32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101	Interactive data file pursuant to Rule 405 of Regulation S-T: (i) the Statements of Financial Condition of Invesco DB Energy Fund – March 31, 2022 and December 31, 2021 (Unaudited), (ii) the Schedule of Investments of Invesco DB Energy Fund – March 31, 2022 (Unaudited), (iii) the Schedule of Investments of Invesco DB Energy Fund – December 31, 2021 (Unaudited), (iv) the Statements of Income and Expenses of Invesco DB Energy Fund – For the Three Months Ended March 31, 2022 and 2021 (Unaudited), (v) the Statements of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Three Months Ended March 31, 2022 (Unaudited), and (vi) the Statement of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Three Months Ended March 31, 2021 (Unaudited), (vii) the Statements of Cash Flows of Invesco DB Energy Fund – For the Three Months Ended March 31, 2022 and 2021 (Unaudited), and (viii) Notes to Unaudited Financial Statements of Invesco DB Energy Fund – March 31, 2022.

101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		The cover page of the Fund's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 formatted in Inline XBRL.

	Invesco DB Multi-Sector Commodity Trust on its own behalf and with respect to Invesco DB Energy Fund

		By: Invesco Capital Management LLC,
		its Managing Owner

Dated: May 5, 2022		By:	/s/ ANNA PAGLIA
		Name:	Anna Paglia
		Title:	Principal Executive Officer

Dated: May 5, 2022		By:	/s/ KELLI GALLEGOS
		Name:	Kelli Gallegos
		Title:	Principal Financial and Accounting Officer, Investment Pools