Invesco DB Energy Fund 10-Q for FY2022 Q2

Invesco DB Energy Fund (DBE)

10-Q 2022-08-05 For: 2022-06-30

Added on April 11, 2026

About this 10-Q

Invesco DB Energy Fund filed this 10-Q on August 5, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $28.45M; up 73.9% from net income of $16.36M 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	10
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	30
ITEM 4.	Controls and Procedures	32

PART II.	OTHER INFORMATION	33

Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	33
Item 4.	Mine Safety Disclosures	33
Item 5.	Other Information	33
Item 6.	Exhibits	34

SIGNATURES		35

	June 30,		December 31,
	2022		2021
Assets
United States Treasury Obligations, at value (cost $118,328,625 and $37,999,658, respectively)	$	118,067,526	$	37,999,954
Affiliated investments, at value (cost $175,433,879 and $71,778,110, respectively)		175,455,356		71,801,967
Receivable for:
Dividends from affiliates		155,220		1,282
Total assets	$	293,678,102	$	109,803,203

Liabilities
Other investments:
Variation margin payable- Commodity Futures Contracts	$	11,902,566	$	2,193,062
Payable for:
Management fees		177,347		68,368
Brokerage commissions and fees		4,984		5,014
Total liabilities		12,084,897		2,266,444
Commitments and Contingencies (Note 10)

Equity
Shareholder's equity—General Shares		1,043		683
Shareholders' equity—Shares		281,592,162		107,536,076
Total shareholders' equity		281,593,205		107,536,759
Total liabilities and equity	$	293,678,102	$	109,803,203

General Shares outstanding	40			40
Shares outstanding		10,800,000		6,300,000
Net asset value per share	$	26.07	$	17.07
Market value per share	$	26.14	$	17.12

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.860% due July 21, 2022^(b)		2.13	%	$	5,996,696	$	6,000,000
U.S. Treasury Bills, 1.120% due September 1, 2022^(b)		2.83			7,979,144		8,000,000
U.S. Treasury Bills, 1.250% due October 20, 2022^(b)		7.06			19,882,602		20,000,000
U.S. Treasury Bills, 1.490% due November 17, 2022^(b)		5.28			14,881,705		15,000,000
U.S. Treasury Bills, 1.580% due December 1, 2022^(b)		14.08			39,626,212		40,000,000
U.S. Treasury Bills, 1.710% due December 8, 2022 ^(b)		10.55			29,701,167		30,000,000
Total United States Treasury Obligations (cost $118,328,625)		41.93	%	$	118,067,526
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $10,031,643)^(c)		3.57	%	$	10,053,120		95,200
Money Market Mutual Fund
Invesco Government & Agency Portfolio, Institutional Class, 1.39% (cost $165,402,236)^(c)(d)		58.74			165,402,236		165,402,236
Total Affiliated Investments (cost $175,433,879)		62.31	%	$	175,455,356
Total Investments in Securities (cost $293,762,504)		104.24	%	$	293,522,882

Open Commodity Futures Contracts	Number of Contracts	Expiration Date	Notional Value		Value^(e)			Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
ICE-UK Brent Crude	580	September - 2022	$	59,635,600	$	(174,062	)	$	(174,062	)
NYMEX Natural Gas	704	April - 2023		29,976,320		(584,588	)		(584,588	)
NYMEX NY Harbor ULSD	490	July - 2022		78,831,690		(7,387,611	)		(7,387,611	)
NYMEX RBOB Gasoline	506	November - 2022		59,409,966		9,875,450			9,875,450
NYMEX WTI Crude	573	December - 2022		53,672,910		9,804,573			9,804,573
Total Commodity Futures Contracts					$	11,533,762		$	11,533,762

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Income
Interest Income	$	184,532		$	4,889		$	200,254		$	9,763
Dividends from Affiliates		322,807			3,438			345,753			7,865
Total Income		507,339			8,327			546,007			17,628
Expenses
Management Fees		519,063			173,024			801,127			311,916
Brokerage Commissions and Fees		12,316			4,267			16,059			6,960
Interest Expense		2,654			468			3,258			745
Total Expenses		534,033			177,759			820,444			319,621
Less: Waivers		(44,878	)		(2,777	)		(48,803	)		(12,717	)
Net Expenses		489,155			174,982			771,641			306,904
Net Investment Income (Loss)		18,184			(166,655	)		(225,634	)		(289,276	)
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
United States Treasury Obligations		1			—			1			—
Commodity Futures Contracts		63,795,384			10,187,803			66,855,459			16,668,677
Net Realized Gain (Loss)		63,795,385			10,187,803			66,855,460			16,668,677
Net Change in Unrealized Gain (Loss) on
United States Treasury Obligations		(247,820	)		(4,299	)		(261,395	)		(401	)
Affiliated Investments		4,760			(1,428	)		(2,380	)		—
Commodity Futures Contracts		(35,118,216	)		6,341,209			5,372,655			12,716,862
Net Change in Unrealized Gain (Loss)		(35,361,276	)		6,335,482			5,108,880			12,716,461
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts		28,434,109			16,523,285			71,964,340			29,385,138
Net Income (Loss)	$	28,452,293		$	16,356,630		$	71,738,706		$	29,095,862

	General Shares					Shares						Total
	Shares		Total Equity			Shares			Total Equity			Shareholders' Equity
Balance at March 31, 2022		40	$	923			9,700,000		$	223,825,541		$	223,826,464
Purchases of Shares							1,700,000			45,681,580			45,681,580
Redemption of Shares							(600,000	)		(16,367,132	)		(16,367,132	)
Net Increase (Decrease) due to Share Transactions							1,100,000			29,314,448			29,314,448
Net Income (Loss)
Net Investment Income (Loss)				—						18,184			18,184
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				318						63,795,067			63,795,385
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				(198	)					(35,361,078	)		(35,361,276	)
Net Income (Loss)				120						28,452,173			28,452,293
Net Change in Shareholders' Equity		—		120			1,100,000			57,766,621			57,766,741
Balance at June 30, 2022		40	$	1,043			10,800,000		$	281,592,162		$	281,593,205

	Level 1			Level 2		Level 3		Total
Investments in Securities
United States Treasury Obligations	$	—		$	118,067,526	$	—	$	118,067,526
Exchange-Traded Fund		10,053,120			—		—		10,053,120
Money Market Mutual Fund		165,402,236			—		—		165,402,236
Total Investments in Securities		175,455,356			118,067,526		—		293,522,882
Other Investments - Assets ^(a)
Commodity Futures Contracts		19,680,023			—		—		19,680,023
Other Investments - Liabilities ^(a)
Commodity Futures Contracts		(8,146,261	)		—		—		(8,146,261	)

Total Other Investments		11,533,762			—		—		11,533,762
Total Investments	$	186,989,118		$	118,067,526	$	—	$	305,056,644

	June 30, 2022					December 31, 2021
Risk Exposure/Derivative Type ^(a)	Assets		Liabilities			Assets		Liabilities
Commodity risk
Commodity Futures Contracts	$	19,680,023	$	(8,146,261	)	$	6,161,107	$	—

		For the Three Months Ended
	Location of Gain (Loss) on Derivatives	June 30,
Risk Exposure/Derivative Type	Recognized in Income	2022			2021
Commodity risk
Commodity Futures Contracts	Net Realized Gain (Loss)	$	63,795,384		$	10,187,803
	Net Change in Unrealized Gain (Loss)		(35,118,216	)		6,341,209
Total		$	28,677,168		$	16,529,012

		For the Six Months Ended
	Location of Gain (Loss) on Derivatives	June 30,
Risk Exposure/Derivative Type	Recognized in Income	2022			2021
Commodity risk
Commodity Futures Contracts	Net Realized Gain (Loss)	$	66,855,459		$	16,668,677
	Net Change in Unrealized Gain (Loss)		5,372,655			12,716,862
Total		$	72,228,114		$	29,385,539

	Value 03/31/2022		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/2022		Dividend Income
Invesco Treasury Collateral ETF	$	10,048,360	$	—	$	—		$	4,760		$	—	$	10,053,120	$	6,804
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		181,661,958		196,012,241		(212,271,963	)		—			—		165,402,236		316,003
Total	$	191,710,318	$	196,012,241	$	(212,271,963	)	$	4,760		$	—	$	175,455,356	$	322,807

	Value 12/31/2021		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/2022		Dividend Income
Invesco Treasury Collateral ETF	$	10,055,500	$	—	$	—		$	(2,380	)	$	—	$	10,053,120	$	7,409
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		61,746,467		377,914,219		(274,258,450	)		—			—		165,402,236		338,344
Total	$	71,801,967	$	377,914,219	$	(274,258,450	)	$	(2,380	)	$	—	$	175,455,356	$	345,753

	Value 03/31/2021		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/2021		Dividend Income
Invesco Treasury Collateral ETF	$	10,061,212	$	—	$	—		$	(1,428	)	$	—	$	10,059,784	$	131
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		40,943,463		57,373,327		(39,258,037	)		—			—	$	59,058,753		3,307
Total	$	51,004,675	$	57,373,327	$	(39,258,037	)	$	(1,428	)	$	—	$	69,118,537	$	3,438

	Value 12/31/2020		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/2021		Dividend Income
Invesco Treasury Collateral ETF	$	10,059,784	$	—	$	—		$	—		$	—	$	10,059,784	$	1,628
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		28,209,192		109,169,835		(78,320,274	)		—			—		59,058,753		6,237
Total	$	38,268,976	$	109,169,835	$	(78,320,274	)	$	—		$	—	$	69,118,537	$	7,865

Index Commodity	Fund Weight (%)
Brent Crude Oil		21.17	%
Light Sweet Crude Oil		19.06
Natural Gas		10.65
RBOB Gasoline		21.10
Ultra-Low Sulphur Diesel		28.02
Closing Level as of June 30, 2022:		100.00	%

	Six Months Ended
	June 30,
	2022			2021
Cash flows from operating activities:
Net Income (Loss)	$	71,738,706		$	29,095,862
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Cost of securities purchased		(134,131,809	)		(32,993,567	)
Proceeds from securities sold and matured		54,002,300			13,000,000
Cost of affiliated investments purchased		(377,914,219	)		(109,169,835	)
Proceeds from affiliated investments sold		274,258,450			78,320,274
Net accretion of discount on United States Treasury Obligations		(199,457	)		(9,763	)
Net realized (gain) loss on United States Treasury Obligations and Affiliated Investments		(1	)		—
Net change in unrealized (gain) loss on United States Treasury Obligations and Affiliated Investments		263,775			401
Change in operating assets and liabilities:
Variation margin - Commodity Futures Contracts		9,709,504			51,968
Dividends from affiliates		(153,938	)		(612	)
Management fees		108,979			23,961
Brokerage commissions and fees		(30	)		6
Net cash provided by (used in) operating activities		(102,317,740	)		(21,681,305	)
Cash flows from financing activities:
Proceeds from purchases of Shares		118,684,872			39,621,226
Redemption of Shares		(16,367,132	)		(18,186,087	)
Net cash provided by (used in) financing activities		102,317,740			21,435,139
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	$	3,258		$	745

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Net Asset Value
Net asset value per Share, beginning of period	$	23.07		$	13.04		$	17.07		$	10.86
Net realized and change in unrealized gain (loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts ^(a)		3.00			2.59			9.03			4.79
Net investment income (loss) ^(b)		0.00			(0.03	)		(0.03	)		(0.05	)
Net income (loss)		3.00			2.56			9.00			4.74
Net asset value per Share, end of period	$	26.07		$	15.60		$	26.07		$	15.60
Market value per Share, beginning of period ^(c)	$	23.12		$	13.07		$	17.12		$	10.86
Market value per Share, end of period ^(c)	$	26.14		$	15.59		$	26.14		$	15.59

Ratio to average Net Assets ^(d)
Net investment income (loss)		0.03	%		(0.72	)%		(0.21	)%		(0.69	)%
Expenses, after waivers		0.71	%		0.75	%		0.72	%		0.73	%
Expenses, prior to waivers		0.77	%		0.77	%		0.77	%		0.76	%
Total Return, at net asset value ^(e)		13.00	%		19.63	%		52.72	%		43.65	%
Total Return, at market value ^(e)		13.06	%		19.28	%		52.69	%		43.55	%

	AGGREGATE RETURNS FOR INDICES IN THE DBIQ-OY ENERGY TR™
	Three Months Ended						Six Months Ended
	June 30,						June 30,
Underlying Index	2022			2021			2022			2021
DB Light Sweet Crude Oil Indices		5.98	%		23.07	%		35.67	%		53.00	%
DB Ultra-Low Sulphur Diesel Indices	31.23			18.31				86.21			40.74
DB Brent Crude Oil Indices		6.78			19.90			44.75			41.83
DB RBOB Gasoline Indices		9.53			19.51			38.31			50.46
DB Natural Gas Indices		8.76			14.29			74.21			16.67
AGGREGATE RETURNS		13.36	%		19.82	%		53.63	%		44.11	%

								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
April 1, 2022 to April 30, 2022		100,000	$	23.30
May 1, 2022 to May 31, 2022		—		—
June 1, 2022 to June 30, 2022		500,000		28.07
Total		600,000	$	27.28


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 – June 30, 2022 and December 31, 2021 (Unaudited), (ii) the Schedule of Investments of Invesco DB Energy Fund – June 30, 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 and Six Months Ended June 30, 2022 and 2021 (Unaudited), (v) the Statement of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Three Months Ended June 30, 2022 (Unaudited), (vi) the Statement of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Three Months Ended June 30, 2021 (Unaudited), (vii) the Statements of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Six Months Ended June 30, 2022 (Unaudited), (viii) the Statement of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Six Months Ended June 30, 2021 (Unaudited), (ix) the Statements of Cash Flows of Invesco DB Energy Fund – For the Six Months Ended June 30, 2022 and 2021 (Unaudited), and (x) Notes to Unaudited Financial Statements of Invesco DB Energy Fund – June 30, 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.

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101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

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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 June 30, 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: August 4, 2022		By:	/s/ ANNA PAGLIA
		Name:	Anna Paglia
		Title:	Principal Executive Officer

Dated: August 4, 2022		By:	/s/ KELLI GALLEGOS
		Name:	Kelli Gallegos
		Title:	Principal Financial and Accounting Officer, Investment Pools