United States 12 Month Natural Gas Fund, LP 10-Q for FY2023 Q1

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

10-Q 2023-05-08 For: 2023-03-31

Added on April 11, 2026

About this 10-Q

United States 12 Month Natural Gas Fund, LP filed this 10-Q on May 8, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: -$7.56M; compared with $10.19M a year earlier
Net loss: $7.6M; compared with net income of $10.13M 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.	19

Item 3. Quantitative and Qualitative Disclosures About Market Risk.	38

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.	43

Item 6. Exhibits.	44


Documents		Page

Condensed Statements of Financial Condition at March 31, 2023 (Unaudited) and December 31, 2022		4

Condensed Schedule of Investments (Unaudited) at March 31, 2023		5

Condensed Statements of Operations (Unaudited) for the three months ended March 31, 2023 and 2022		6

Condensed Statements of Changes in Partners’ Capital (Unaudited) for the three months ended March 31, 2023 and 2022		7

Condensed Statements of Cash Flows (Unaudited) for the three months ended March 31, 2023 and 2022		8

Notes to Condensed Financial Statements (Unaudited) for the period ended March 31, 2023		9


	March 31, 2023		December 31, 2022
Assets
Cash and cash equivalents (at cost $12,208,139 and $22,036,438, respectively) (Notes 2 and 5)	$	12,208,139	$	22,036,438
Equity in trading accounts:
Cash and cash equivalents (at cost $10,234,734 and $11,220,362, respectively)		10,234,734		11,220,362
Unrealized gain (loss) on open commodity futures contracts		(7,905,173)		(8,419,740)
Receivable from General Partner (Note 3)		28,970		163,576
Dividends receivable		53,197		94,005
Interest receivable		6,391		7,826
Prepaid license fees		7,407		6,760
Prepaid insurance^*		7,453		760
Total Assets	$	14,641,118	$	25,109,987

Liabilities and Partners’ Capital
General Partner management fees payable (Note 3)	$	10,416	$	20,071
Professional fees payable		53,338		94,745
Brokerage commissions payable		391		391
Directors’ fees payable^*		2,808		2,846
Total Liabilities		66,953		118,053

Commitments and Contingencies (Notes 3, 4 & 5)

Partners’ Capital
General Partners		—		—
Limited Partners		14,574,165		24,991,934
Total Partners' Capital		14,574,165		24,991,934

Total Liabilities and Partners’ Capital	$	14,641,118	$	25,109,987

Limited Partners’ shares outstanding		1,250,000		1,450,000
Net asset value per share	$	11.66	$	17.24
Market value per share	$	11.58	$	17.23


				Fair
				Value/Unrealized
				Gain (Loss)
				on Open
	Notional		Number of	Commodity		% of Partners’
	Amount		Contracts	Contracts		Capital
Open Commodity Futures Contracts - Long
United States Contracts
NYMEX Natural Gas Futures NG May 2023 contracts, expiring April 2023	$	1,854,030	39	$	(989,790)	(6.79)
NYMEX Natural Gas Futures NG June 2023 contracts, expiring May 2023		1,882,255	39		(920,905)	(6.32)
NYMEX Natural Gas Futures NG July 2023 contracts, expiring June 2023		2,014,787	39		(949,307)	(6.51)
NYMEX Natural Gas Futures NG August 2023 contracts, expiring July 2023		1,823,282	39		(737,912)	(5.06)
NYMEX Natural Gas Futures NG September 2023 contracts, expiring August 2023		1,948,060	39		(875,560)	(6.01)
NYMEX Natural Gas Futures NG October 2023 contracts, expiring September 2023		2,185,724	40		(1,046,924)	(7.18)
NYMEX Natural Gas Futures NG November 2023 contracts, expiring October 2023		2,063,827	39		(801,007)	(5.50)
NYMEX Natural Gas Futures NG December 2023 contracts, expiring November 2023		2,042,344	39		(591,544)	(4.06)
NYMEX Natural Gas Futures NG January 2024 contracts, expiring December 2023		2,221,742	39		(692,162)	(4.75)
NYMEX Natural Gas Futures NG February 2024 contracts, expiring January 2024		1,724,276	39		(236,426)	(1.62)
NYMEX Natural Gas Futures NG March 2024 contracts, expiring February 2024		1,475,942	40		(74,342)	(0.51)
NYMEX Natural Gas Futures NG April 2024 contracts, expiring March 2024		1,246,654	39		10,706	0.07
Total Open Futures Contracts*	$	22,482,923	470	$	(7,905,173)	(54.24)


	Shares/Principal			% of Partners’
	Amount	Market Value		Capital
Cash Equivalents
United States Money Market Funds
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Shares, 4.73%^#	12,200,000	$	12,200,000	83.71
Total United States Money Market Funds		$	12,200,000	83.71


	Three months ended		Three months ended
	March 31, 2023		March 31, 2022
Income
Gain (loss) on trading of commodity futures contracts:
Realized gain (loss) on closed commodity futures contracts	$	(8,253,388)	$	3,730,416
Change in unrealized gain (loss) on open commodity futures contracts		514,567		6,451,954
Dividend income		158,655		2,959
Interest income^*		19,037		119
ETF transaction fees		1,400		1,750
Total Income (Loss)	$	(7,559,729)	$	10,187,198

Expenses
General Partner management fees (Note 3)	$	31,333	$	45,033
Professional fees		29,342		21,248
Brokerage commissions		1,689		2,187
Directors’ fees and insurance		3,579		3,264
License fees		626		901
Total Expenses		66,569		72,633
Expense waiver (Note 3)		(28,970)		(17,793)
Net Expenses	$	37,599	$	54,840
Net Income (Loss)	$	(7,597,328)	$	10,132,358
Net Income (Loss) per limited partner share	$	(5.58)	$	6.26
Net Income (Loss) per weighted average limited partner share	$	(6.02)	$	5.95
Weighted average limited partner shares outstanding		1,262,222		1,702,778


	Limited Partners^*
	Three months ended		Three months ended
	March 31, 2023		March 31, 2022
Balances at beginning of period	$	24,991,934	$	16,312,586
Addition of 200,000 and 550,000 partnership shares, respectively		2,589,489		6,897,367
Redemption of (400,000) and (650,000) partnership shares, respectively		(5,409,930)		(10,055,887)
Net income (loss)		(7,597,328)		10,132,358

Balances at end of period	$	14,574,165	$	23,286,424


At March 31, 2023	Total		Level I		Level II		Level III
Short-Term Investments	$	12,200,000	$	12,200,000	$	—	$	—
Exchange-Traded Futures Contracts
United States Contracts		(7,905,173)		(7,905,173)		—		—


At December 31, 2022	Total		Level I		Level II		Level III
Short-Term Investments	$	22,000,000	$	22,000,000	$	—	$	—
Exchange-Traded Futures Contracts
United States Contracts		(8,419,740)		(8,419,740)		—		—


	Condensed
	Statements of
	Financial	Fair Value at		Fair Value at
Derivatives not Accounted for as Hedging Instruments	Condition Location	March 31, 2023		December 31, 2022
Futures - Commodity Contracts	Assets	$	(7,905,173)	$	(8,419,740)


	Total
	Number of	Average Price Per
Period	Shares Redeemed	Share
1/1/23 to 1/31/23	300,000	$	14.10
2/1/23 to 2/28/23	—		—
3/1/23 to 3/31/23	100,000		11.80
Total	400,000


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).


	Three months ended		Three months ended
	March 31, 2023		March 31, 2022
Cash Flows from Operating Activities:
Net income (loss)	$	(7,597,328)	$	10,132,358
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Change in unrealized (gain) loss on open commodity futures contracts		(514,567)		(6,451,954)
(Increase) decrease in receivable from General Partner		134,606		110,955
(Increase) decrease in dividends receivable		40,808		(1,866)
(Increase) decrease in interest receivable		1,435		72
(Increase) decrease in prepaid other		(647)		260
(Increase) decrease in prepaid insurance^*		(6,693)		(2,887)
Increase (decrease) in payable due to Broker		—		4,871,212
Increase (decrease) in General Partner management fees payable		(9,655)		6,090
Increase (decrease) in professional fees payable		(41,407)		(24,176)
Increase (decrease) in directors' fees payable^*		(38)		(38)
Net cash provided by (used in) operating activities		(7,993,486)		8,640,026

Cash Flows from Financing Activities:
Addition of partnership shares		2,589,489		6,897,367
Redemption of partnership shares		(5,409,930)		(10,055,887)
Net cash provided by (used in) financing activities		(2,820,441)		(3,158,520)

Net Increase (Decrease) in Cash and Cash Equivalents		(10,813,927)		5,481,506

Total Cash, Cash Equivalents and Equity in Trading Accounts, beginning of period		33,256,800		15,705,957
Total Cash, Cash Equivalents and Equity in Trading Accounts, end of period	$	22,442,873	$	21,187,463

Components of Cash, Cash Equivalents, and Equity in Trading Accounts
Cash and cash equivalents	$	12,208,139	$	21,187,463
Equity in Trading Accounts:
Cash and cash equivalents		10,234,734		—
Total Cash, Cash Equivalents and Equity in Trading Accounts	$	22,442,873	$	21,187,463


	Three months ended			Three months ended
	March 31, 2023			March 31, 2022
Average daily total net assets	$	16,943,157		$	24,351,072
Dividend and interest income earned on Treasuries, cash and/or cash equivalents	$	177,692		$	3,078
Annualized yield based on average daily total net assets		4.25	%		0.05	%
Management fee	$	31,333		$	45,033
Total fees and other expenses excluding management fees	$	35,236		$	27,600
Total amount of the expense waiver	$	28,970		$	17,793
Expenses before the allowance of the expense waiver	$	66,569		$	72,633
Expenses after the allowance of the expense waiver	$	37,599		$	54,840
Total commissions accrued to brokers	$	1,689		$	2,187
Total commissions as annualized percentage of average total net assets		0.04	%		0.04	%


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 8, 2023	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