United States 12 Month Natural Gas Fund, LP 10-Q for FY2021 Q2

United States 12 Month Natural Gas Fund, LP (UNL)

10-Q 2021-08-11 For: 2021-06-30

Added on April 11, 2026

About this 10-Q

United States 12 Month Natural Gas Fund, LP filed this 10-Q on August 11, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.2M; compared with -$79.71K a year earlier
Net income: $2.18M; compared with a net loss of $88.08K a year earlier

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Delaware		26-0431733
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

Title of each class:		Trading Symbol(s)		Name of each exchange on which registered:
Shares of United States 12 Month Natural Gas Fund, LP		UNL		NYSE Arca, Inc.


Large Accelerated Filer	☐	Accelerated Filer	☐

Non-Accelerated Filer	☒	Smaller Reporting Company	☐

Emerging Growth Company	☐


	Page
Part I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements.	3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	19

Item 3. Quantitative and Qualitative Disclosures About Market Risk.	37

Item 4. Controls and Procedures.	38

Part II. OTHER INFORMATION

Item 1. Legal Proceedings.	39

Item 1A. Risk Factors.	41

Items 2. Unregistered Sales of Equity Securities and Use of Proceeds.	41

Item 3. Defaults Upon Senior Securities.	41

Item 4. Mine Safety Disclosures.	41

Item 5. Other Information.	41

Item 6. Exhibits.	42


Documents		Page

Condensed Statements of Financial Condition at June 30, 2021 (Unaudited) and December 31, 2020		4

Condensed Schedule of Investments (Unaudited) at June 30, 2021		5

Condensed Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020		6

Condensed Statements of Changes in Partners’ Capital (Unaudited) for the three and six months ended June 30, 2021 and 2020		7

Condensed Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020		8

Notes to Condensed Financial Statements (Unaudited) for the period ended June 30, 2021		9


	June 30, 2021		December 31, 2020
Assets
Cash and cash equivalents (at cost $8,784,452 and $6,497,522, respectively) (Notes 2 and 5)	$	8,784,452	$	6,497,522
Equity in trading accounts:
Cash and cash equivalents (at cost $- and $845,621, respectively)		—		845,621
Unrealized gain (loss) on open commodity futures contracts		1,738,576		(21,964)
Receivable from General Partner (Note 3)		69,684		60,535
Dividends receivable		146		9
Interest receivable		75		174
Prepaid license fees		1,329		983
Prepaid insurance^*		1,459		96

Total Assets	$	10,595,721	$	7,382,976

Liabilities and Partners' Capital
Payable due to Broker	$	586,229	$	—
General Partner management fees payable (Note 3)		6,416		4,095
Professional fees payable		20,796		25,000
Brokerage commissions payable		391		391
Directors’ fees payable^*		2,727		2,030

Total Liabilities		616,559		31,516

Commitments and Contingencies (Notes 3, 4 & 5)

Partners' Capital
General Partners		—		—
Limited Partners		9,979,162		7,351,460
Total Partners' Capital		9,979,162		7,351,460

Total Liabilities and Partners' Capital	$	10,595,721	$	7,382,976

Limited Partners' shares outstanding		1,000,000		950,000
Net asset value per share	$	9.98	$	7.74
Market value per share	$	10.18	$	7.59


				Fair
				Value/Unrealized
				Gain (Loss) on
				Open
			Number of	Commodity		% of Partners'
	Notional Amount		Contracts	Contracts		Capital
Open Commodity Futures Contracts - Long
United States Contracts
NYMEX Natural Gas Futures NG August 2021 contracts, expiring July 2021	$	664,967	25	$	247,533	2.48
NYMEX Natural Gas Futures NG September 2021 contracts, expiring August 2021		660,416	24		209,344	2.10
NYMEX Natural Gas Futures NG October 2021 contracts, expiring September 2021		686,463	24		182,097	1.82
NYMEX Natural Gas Futures NG November 2021 contracts, expiring October 2021		709,179	24		168,741	1.69
NYMEX Natural Gas Futures NG December 2021 contracts, expiring November 2021		747,691	24		150,629	1.51
NYMEX Natural Gas Futures NG January 2022 contracts, expiring December 2021		740,201	24		173,479	1.74
NYMEX Natural Gas Futures NG February 2022 contracts, expiring January 2022		777,710	25		153,540	1.54
NYMEX Natural Gas Futures NG March 2022 contracts, expiring February 2022		728,210	24		108,910	1.09
NYMEX Natural Gas Futures NG April 2022 contracts, expiring March 2022		619,657	25		129,843	1.30
NYMEX Natural Gas Futures NG May 2022 contracts, expiring April 2022		604,664	24		95,416	0.95
NYMEX Natural Gas Futures NG June 2022 contracts, expiring May 2022		622,856	24		83,464	0.84
NYMEX Natural Gas Futures NG July 2022 contracts, expiring June 2022		678,900	24		35,580	0.36
Total Open Futures Contracts^*	$	8,240,914	291	$	1,738,576	17.42


	Shares/Principal				% of Partners’
	Amount		Market Value		Capital
Cash Equivalents
United States Money Market Funds
Goldman Sachs Financial Square Government Fund - Institutional Shares, 0.03%^#		6,000,000	$	6,000,000	60.13
RBC U.S. Government Money Market Fund - Institutional Shares, 0.03%^#		1,000,000		1,000,000	10.02
Total United States Money Market Funds			$	7,000,000	70.15


	Three months ended		Three months ended		Six months ended		Six months ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Income
Gain (loss) on trading of commodity futures contracts:
Realized gain (loss) on closed commodity futures contracts	$	431,603	$	(331,877)	$	551,700	$	(693,179)
Change in unrealized gain (loss) on open commodity futures contracts		1,765,497		245,056		1,760,540		278,548
Dividend income		496		626		617		1,584
Interest income^*		137		5,781		765		16,874
ETF transaction fees		700		700		1,750		700
Total Income (Loss)	$	2,198,433	$	(79,714)	$	2,315,372	$	(395,473)

Expenses
General Partner management fees (Note 3)	$	16,998	$	6,598	$	31,519	$	12,392
Professional fees		38,666		18,773		67,664		35,472
Brokerage commissions		763		390		1,550		521
Directors' fees and insurance		3,270		151		6,144		387
License fees		340		132		630		248
Total Expenses		60,037		26,044		107,507		49,020
Expense waiver (Note 3)		(39,639)		(17,683)		(69,684)		(33,705)
Net Expenses	$	20,398	$	8,361	$	37,823	$	15,315
Net Income (Loss)	$	2,178,035	$	(88,075)	$	2,277,549	$	(410,788)
Net Income (Loss) per limited partner share	$	2.09	$	(0.08)	$	2.24	$	(0.88)
Net Income (Loss) per weighted average limited partner share	$	2.06	$	(0.20)	$	2.26	$	(0.97)
Weighted average limited partner shares outstanding		1,056,667		447,253		1,009,669		423,626


	Limited Partners*
	Three months ended		Three months ended		Six months ended		Six months ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Balances at beginning of period	$	8,281,204	$	3,051,181	$	7,351,460	$	3,373,894
Addition of 100,000, 200,000, 350,000 and 200,000 partnership shares, respectively		892,478		1,564,076		2,931,411		1,564,076
Redemption of (150,000), (-), (300,000) and (-) partnership shares, respectively		(1,372,555)		—		(2,581,258)		—
Net income (loss)		2,178,035		(88,075)		2,277,549		(410,788)

Balances at end of period	$	9,979,162	$	4,527,182	$	9,979,162	$	4,527,182


At June 30, 2021	Total		Level I		Level II		Level III
Short-Term Investments	$	7,000,000	$	7,000,000	$	—	$	—
Exchange-Traded Futures Contracts
United States Contracts		1,738,576		1,738,576		—		—


At December 31, 2020	Total		Level I		Level II		Level III
Short-Term Investments	$	1,000,000	$	1,000,000	$	—	$	—
Exchange-Traded Futures Contracts
United States Contracts		(21,964)		(21,964)		—		—


	Condensed
	Statements of
	Financial	Fair Value at		Fair Value at
Derivatives not Accounted for as Hedging Instruments	Condition Location	June 30, 2021		December 31, 2020
Futures - Commodity Contracts	Assets	$	1,738,576	$	(21,964)


	Total
	Number of	Average
	Shares	Price Per
Period	Redeemed	Share
4/1/21 to 4/30/21	—	$	—
5/1/21 to 5/31/21	—	$	—
6/1/21 to 6/30/21	150,000	$	9.15
Total	150,000


Exhibit Number		Description of Document
31.1(1)		Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2(1)		Certification by Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1(1)		Certification by Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2(1)		Certification by Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document.
101.SCH		XBRL Taxonomy Extension Schema.
101.CAL		XBRL Taxonomy Extension Calculation Linkbase.
101.DEF		XBRL Taxonomy Extension Definition Linkbase.
101.LAB		XBRL Taxonomy Extension Label Linkbase.
101.PRE		XBRL Taxonomy Extension Presentation Linkbase.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


	Six months ended			Six months ended
	June 30, 2021			June 30, 2020
Total commissions accrued to brokers	$	1,550		$	521
Total commissions as annualized percentage of average total net assets		0.04	%		0.03	%
Commissions accrued as a result of rebalancing	$	994		$	358
Percentage of commissions accrued as a result of rebalancing		64.13	%		68.71	%
Commissions accrued as a result of creation and redemption activity	$	556		$	163
Percentage of commissions accrued as a result of creation and redemption activity		35.87	%		31.29	%


	Six months ended			Six months ended
	June 30, 2021			June 30, 2020
Average daily total net assets	$	8,474,833		$	3,322,639
Dividend and interest income earned on Treasuries, cash and/or cash equivalents	$	1,382		$	18,458
Annualized yield based on average daily total net assets		0.03	%		1.11	%
Management fee	$	31,519		$	12,392
Total fees and other expenses excluding management fees	$	75,988		$	36,628
Total amount of the expense waiver	$	69,684		$	33,705
Expenses before the allowance of the expense waiver	$	107,507		$	49,020
Expenses after the allowance of the expense waiver	$	37,823		$	15,315
Total commissions accrued to brokers	$	1,550		$	521
Total commissions as annualized percentage of average total net assets		0.04	%		0.03	%
Commissions accrued as a result of rebalancing	$	994		$	358
Percentage of commissions accrued as a result of rebalancing		64.13	%		68.71	%
Commissions accrued as a result of creation and redemption activity	$	556		$	163
Percentage of commissions accrued as a result of creation and redemption activity		35.87	%		31.29	%


	Three months ended			Three months ended
	June 30, 2021			June 30, 2020
Average daily total net assets	$	9,090,990		$	3,538,221
Dividend and interest income earned on Treasuries, cash and/or cash equivalents	$	633		$	6,407
Annualized yield based on average daily total net assets		0.03	%		0.73	%
Management fee	$	16,998		$	6,598
Total fees and other expenses excluding management fees	$	43,039		$	19,446
Total amount of the expense waiver	$	39,639		$	17,683
Expenses before the allowance of the expense waiver	$	60,037		$	26,044
Expenses after the allowance of the expense waiver	$	20,398		$	8,361
Total commissions accrued to brokers	$	763		$	390
Total commissions as annualized percentage of average total net assets		0.03	%		0.04	%
Commissions accrued as a result of rebalancing	$	568		$	94
Percentage of commissions accrued as a result of rebalancing		74.44	%		24.10	%
Commissions accrued as a result of creation and redemption activity	$	195		$	296
Percentage of commissions accrued as a result of creation and redemption activity		25.56	%		75.90	%

By:	/s/ John P. Love
	John P. Love
	President and Chief Executive
	Officer (Principal executive officer)

By:	/s/ Stuart P. Crumbaugh
	Stuart P. Crumbaugh
	Chief Financial Officer
	(Principal financial and accounting officer)