United States 12 Month Natural Gas Fund, LP 10-Q for FY2024 Q1

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

10-Q 2024-05-09 For: 2024-03-31

Added on April 11, 2026

About this 10-Q

United States 12 Month Natural Gas Fund, LP filed this 10-Q on May 9, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: -$2.24M; compared with -$7.56M a year earlier
Net loss: $2.28M; compared with a net loss of $7.6M 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	☐

Part I. FINANCIAL INFORMATION	Page

Item I. Condensed Financial Statements.	3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	20

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

Item 4. Controls and Procedures.	39

Part II. OTHER INFORMATION

Item 1. Legal Proceedings.	40

Item 1A. Risk Factors.	42

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	43

Item 3. Defaults Upon Senior Securities.	43

Item 4. Mine Safety Disclosures.	43

Item 5. Other Information.	44

Item 6. Exhibits.	45

Documents		Page

Condensed Statements of Financial Condition at March 31, 2024 (Unaudited) and December 31, 2023		4

Condensed Schedules of Investments at March 31, 2024 (Unaudited) and December 31, 2023		5

Condensed Statements of Operations (Unaudited) for the three months ended March 31, 2024 and 2023		7

Condensed Statements of Changes in Partners’ Capital (Unaudited) for the three months ended March 31, 2024 and 2023		8

Condensed Statements of Cash Flows (Unaudited) for the three months ended March 31, 2024 and 2023		9

Notes to Condensed Financial Statements (Unaudited) for the period ended March 31, 2024		10


	March 31, 2024		December 31, 2023
Assets
Cash and cash equivalents (at cost $15,055,290 and $14,477,947, respectively) (Notes 2 and 5)	$	15,055,290	$	14,477,947
Equity in trading accounts:
Cash and cash equivalents (at cost $3,957,549 and $6,113,231, respectively)		3,957,549		6,113,231
Unrealized gain (loss) on open commodity futures contracts		(1,984,757)		(4,450,405)
Receivable from General Partner (Note 3)		61,732		168,223
Dividends receivable		48,681		53,943
Interest receivable		22,616		18,055
Prepaid license fees		5,989		6,623
Prepaid insurance		3,067		2,121
Total Assets	$	17,170,167	$	16,389,738

Liabilities and Partners’ Capital
General Partner management fees payable (Note 3)	$	10,763	$	10,902
Professional fees payable		55,604		79,649
Brokerage commissions payable		391		391
Directors’ fees payable		2,822		2,846
Total Liabilities		69,580		93,788

Commitments and Contingencies (Notes 3, 4 & 5)

Partners’ Capital
General Partners		—		—
Limited Partners		17,100,587		16,295,950
Total Partners’ Capital		17,100,587		16,295,950

Total Liabilities and Partners’ Capital	$	17,170,167	$	16,389,738

Limited Partners’ shares outstanding		2,200,000		1,900,000
Net asset value per share	$	7.77	$	8.58
Market value per share	$	7.74	$	8.58


				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 May 2024 contracts, expiring April 2024	$	1,253,040	51	$	(353,910)	(2.07)
NYMEX Natural Gas Futures NG June 2024 contracts, expiring May 2024		1,340,690	51		(322,220)	(1.89)
NYMEX Natural Gas Futures NG July 2024 contracts, expiring June 2024		1,411,310	51		(217,910)	(1.28)
NYMEX Natural Gas Futures NG August 2024 contracts, expiring July 2024		1,459,620	51		(214,200)	(1.25)
NYMEX Natural Gas Futures NG September 2024 contracts, expiring August 2024		1,449,870	51		(207,000)	(1.21)
NYMEX Natural Gas Futures NG October 2024 contracts, expiring September 2024		1,469,750	51		(179,450)	(1.05)
NYMEX Natural Gas Futures NG November 2024 contracts, expiring October 2024		1,686,268	51		(191,968)	(1.12)
NYMEX Natural Gas Futures NG December 2024 contracts, expiring November 2024		1,918,532	51		(163,112)	(0.95)
NYMEX Natural Gas Futures NG January 2025 contracts, expiring December 2024		1,987,439	52		(49,399)	(0.29)
NYMEX Natural Gas Futures NG February 2025 contracts, expiring January 2025		1,910,223	51		(99,213)	(0.58)
NYMEX Natural Gas Futures NG March 2025 contracts, expiring February 2025		1,660,435	52		3,565	0.02
NYMEX Natural Gas Futures NG April 2025 contracts, expiring March 2025		1,524,020	51		10,060	0.06
Total Open Futures Contracts*	$	19,071,197	614	$	(1,984,757)	(11.61)


	Shares/Principal				% of Partners’
	Amount		Market Value		Capital
Cash Equivalents
United States Money Market Funds
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Shares, 5.22%^#		11,000,000	$	11,000,000	64.33
Total United States Money Market Funds			$	11,000,000	64.33


	Three months ended		Three months ended
	March 31, 2024		March 31, 2023
Income
Gain (loss) on trading of commodity futures contracts:
Realized gain (loss) on closed commodity futures contracts	$	(4,924,948)	$	(8,253,388)
Change in unrealized gain (loss) on open commodity futures contracts		2,465,648		514,567
Dividend income		142,959		158,655
Interest income		73,645		19,037
ETF transaction fees		2,450		1,400
Total Income (Loss)	$	(2,240,246)	$	(7,559,729)

Expenses
General Partner management fees (Note 3)	$	31,687	$	31,333
Professional fees		59,321		29,342
Brokerage commissions		3,282		1,689
Directors’ fees and insurance		4,832		3,579
License fees		634		626
Total Expenses		99,756		66,569
Expense waiver (Note 3)		(61,732)		(28,970)
Net Expenses	$	38,024	$	37,599
Net Income (Loss)	$	(2,278,270)	$	(7,597,328)
Net Income (Loss) per limited partner share	$	(0.81)	$	(5.58)
Net Income (Loss) per weighted average limited partner share	$	(1.10)	$	(6.02)
Weighted average limited partner shares outstanding		2,074,725		1,262,222


	Limited Partners^*
	Three months ended		Three months ended
	March 31, 2024		March 31, 2023
Balances at beginning of period	$	16,295,950	$	24,991,934
Addition of 1,500,000 and 200,000 partnership shares, respectively		12,693,042		2,589,489
Redemption of (1,200,000) and (400,000) partnership shares, respectively		(9,610,135)		(5,409,930)
Net income (loss)		(2,278,270)		(7,597,328)

Balances at end of period	$	17,100,587	$	14,574,165


At March 31, 2024	Total		Level I		Level II		Level III
Short-Term Investments	$	11,000,000	$	11,000,000	$	—	$	—
Exchange-Traded Futures Contracts
United States Contracts		(1,984,757)		(1,984,757)		—		—


At December 31, 2023	Total		Level I		Level II		Level III
Short-Term Investments	$	11,000,000	$	11,000,000	$	—	$	—
Exchange-Traded Futures Contracts
United States Contracts		(4,450,405)		(4,450,405)		—		—


	Condensed
	Statements of
	Financial	Fair Value at		Fair Value at
Derivatives not Accounted for as Hedging Instruments	Condition Location	March 31, 2024		December 31, 2023
Futures - Commodity Contracts	Unrealized gain (loss) on open commodity futures contracts	$	(1,984,757)	$	(4,450,405)

Natural Gas - 10 Years
	Large Cap US	US Gov’t Bonds	Global Equities			Unleaded
Correlation Matrix 10 Years	Equities (S&P 500)	(BEUSG4 Index)	(FTSE World Index)	Crude Oil	Heating Oil	Gasoline	Natural Gas
Large Cap US Equities (S&P 500)	1.000	0.094	0.978	0.358	0.211	0.467	0.109
US Gov’t Bonds (BEUSG4 Index)		1.000	0.106	(0.261)	(0.410)	(0.192)	(0.183)
Global Equities (FTSE World Index)			1.000	0.410	0.260	0.515	0.072
Crude Oil				1.000	0.747	0.751	0.057
Heating Oil					1.000	0.641	0.103
Unleaded Gasoline						1.000	0.085
Natural Gas							1.000
Source: Bloomberg, NYMEX

Natural Gas - 1 Year
	Large Cap US	US Gov’t Bonds	Global Equities			Unleaded
Correlation Matrix 1 Year	Equities (S&P 500)	(BEUSG4 Index)	(FTSE World Index)	Crude Oil	Heating Oil	Gasoline	Natural Gas
Large Cap US Equities (S&P 500)	1.000	0.612	0.986	(0.047)	(0.074)	0.496	(0.423)
US Gov’t Bonds (BEUSG4 Index)		1.000	0.661	(0.287)	(0.365)	0.237	(0.593)
Global Equities (FTSE World Index)			1.000	0.006	(0.057)	0.464	(0.434)
Crude Oil				1.000	0.793	0.396	(0.008)
Heating Oil					1.000	0.256	0.019
Unleaded Gasoline						1.000	(0.421)
Natural Gas							1.000
Source: Bloomberg, NYMEX


	Three months ended			Three months ended
	March 31, 2024			March 31, 2023
Average daily total net assets	$	17,003,459		$	16,943,157
Dividend and interest income earned on Treasuries, cash and/or cash equivalents	$	216,604		$	177,692
Annualized yield based on average daily total net assets		5.12	%		4.25	%
Management fee	$	31,687		$	31,333
Total fees and other expenses excluding management fees	$	68,069		$	35,236
Total amount of the expense waiver	$	61,732		$	28,970
Expenses before the allowance of the expense waiver	$	99,756		$	66,569
Expenses after the allowance of the expense waiver	$	38,024		$	37,599
Total commissions accrued to brokers	$	3,282		$	1,689
Total commissions as annualized percentage of average total net assets		0.08	%		0.04	%


	Total
	Number of	Average Price Per
Period	Shares Redeemed	Share
1/1/24 to 1/31/24	200,000	$	9.32
2/1/24 to 2/29/24	1,000,000	$	7.75
3/1/24 to 3/31/24	—	$	—
Total	1,200,000

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).

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)

Date: May 9, 2024	By	/s/ John P. Love
	Name:	John P. Love
	Title:	President and Chief Executive Officer United States Commodity Funds LLC,
		General Partner of United States 12 Month Natural Gas Fund, LP