Invesco DB Energy Fund Files 2023 10-K

TL;DR

<b>Invesco DB Energy Fund (DBE) filed its 2023 10-K detailing commodity futures and U.S. Treasury holdings.</b>

AI Summary

Invesco DB Energy Fund (DBE) filed a Annual Report (10-K) with the SEC on February 23, 2024. The Invesco DB Energy Fund (DBE) filed its 10-K for the fiscal year ending December 31, 2023. The filing includes details on various commodity futures contracts, including RBOB Gasoline, Brent Crude Oil, Natural Gas, and NY Harbor ULSD. The fund holds U.S. Treasury Bills with varying interest rates and maturity dates, such as 5.250% due March 7, 2024, and 5.190% due June 6, 2024. Investments include affiliated entities like Invesco Government & Agency Portfolio, Institutional Class. The fund's structure involves general and limited partnership interests.

Why It Matters

For investors and stakeholders tracking Invesco DB Energy Fund, this filing contains several important signals. This 10-K provides a comprehensive overview of the fund's assets and liabilities for the fiscal year 2023, crucial for understanding its performance and risk exposure. The specific details on commodity futures and U.S. Treasury holdings offer insight into the fund's investment strategy and its sensitivity to energy market fluctuations and interest rate changes.

Risk Assessment

Risk Level: medium — Invesco DB Energy Fund shows moderate risk based on this filing. The fund's exposure to commodity futures and energy markets introduces significant price volatility and potential for substantial losses, as indicated by the nature of its long positions in RBOB Gasoline, Brent Crude Oil, Natural Gas, and NY Harbor ULSD futures.

Analyst Insight

Investors should review the specific commodity futures contracts and their associated risks detailed in the filing to assess the fund's exposure to energy market volatility.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-23 — Filing Date (Date the 10-K was filed)
• 5.250% — Interest Rate (U.S. Treasury Bill maturity March 7, 2024)
• 5.190% — Interest Rate (U.S. Treasury Bill maturity June 6, 2024)

Key Players & Entities

• Invesco DB Energy Fund (company) — Filer of the 10-K
• Invesco DB Multi-Sector Commodity Trust (company) — Former name of a related entity
• U.S. Treasury Bills, 5.250% due March 7, 2024 (dollar_amount) — Investment held by the fund
• U.S. Treasury Bills, 5.190% due June 6, 2024 (dollar_amount) — Investment held by the fund
• Invesco Government & Agency Portfolio, Institutional Class (company) — Affiliated investment held by the fund
• RBOB Gasoline NYM (company) — Commodity futures contract
• Brent Crude Oil IFE (company) — Commodity futures contract
• Natural Gas NYM (company) — Commodity futures contract

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The fund is subject to significant price volatility due to its investments in commodity futures contracts, which can lead to substantial losses.
• Interest Rate Risk [medium — financial]: Investments in U.S. Treasury Bills expose the fund to fluctuations in interest rates, impacting the value of these holdings.
• Counterparty Risk [medium — operational]: The fund's use of futures contracts involves counterparty risk, where the other party to the contract may default.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.

Filing Documents

• dbe-20231231.htm (10-K) — 1948KB
• dbe-ex23_1.htm (EX-23.1) — 5KB
• dbe-ex31_1.htm (EX-31.1) — 13KB
• dbe-ex31_2.htm (EX-31.2) — 13KB
• dbe-ex32_1.htm (EX-32.1) — 8KB
• dbe-ex32_2.htm (EX-32.2) — 8KB
• dbe-ex97_1.htm (EX-97.1) — 49KB
• img256905508_0.jpg (GRAPHIC) — 172KB
• img256905508_1.jpg (GRAPHIC) — 167KB
• 0000950170-24-019052.txt (&nbsp;) — 7433KB
• dbe-20231231.xsd (EX-101.SCH) — 657KB
• dbe-20231231_htm.xml (XML) — 1216KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 7 ITEM 1B. UNRESOLVED STAFF COMMENTS 22 ITEM 1C. CYBERSECURITY 22 ITEM 2.

PROPERTIES

PROPERTIES 22 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 22 ITEM 4. MINE SAFETY DISCLOSURES 23 PART II 24 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 24 ITEM 6. RESERVED 24 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 25 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 33 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 36 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 59 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 59 ITEM 9B. OTHER INFORMATION 59 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 59 PART III 60 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 60 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 62 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 63 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 63 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 63 PART IV 64 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 64 i CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K (this "Report") includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. The matters discussed throughout this Report that are not historical facts are forward-looking statements. These forward-looking statements are based on Invesco DB Energy Fund's (the "Fund") and Invesco Capital Management LLC's (the "Managing Owner") current expectations, estimates and projections about the future results, performance, prospects and opportunities of the Fund and the Fund's business and industry and their beliefs and assumptions about future events and speak only as of the date on which they are made. Words such as "anticipate," "expect," "intend," "plan," "believe," "seek," "outlook" and "estimate," as well as similar words and phrases, signify forward-looking statements. Forward-looking statements are not guarantees of future results. Future economic and industry trends that could potentially impact the Fund and its performance are difficult to predict. Conditions, risks and uncertainties in the markets for financial instruments that the Fund trades, in the markets for related physical commodities, in the legal and regulatory regimes applicable to the Managing Owner, the Fund, and the Fund's service providers, in the broader economy and in global politics may cause actual results to differ materially from those expressed by such forward-looking s

BUSINESS

ITEM 1. BUSINESS. Introduction Invesco DB Energy Fund (the "Fund"), a separate series of Invesco DB Multi-Sector Commodity Trust (the "Trust"), a Delaware statutory trust organized in seven separate series, was formed on August 3, 2006. The term of the Fund is perpetual (unless terminated earlier in certain circumstances) as provided for in the Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Trust, as amended (the "Trust Agreement"). The Fund has an unlimited number of shares authorized for issuance. Invesco Capital Management LLC has served as the managing owner (the "Managing Owner"), commodity pool operator and commodity trading advisor of the Trust and the Fund since February 23, 2015. The Managing Owner holds 40 general shares (the "General Shares") of the Fund. The fiscal year end of the Fund is December 31st. The Fund seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Energy Index Excess Return (the "Index") over time, plus the excess, if any, of the sum of the Fund's interest income from its holdings of United States Treasury Obligations ("Treasury Income"), dividends from its holdings in money market mutual funds (affiliated or otherwise) ("Money Market Income") and dividends or distributions of capital gains from its holdings of T-Bill ETFs (as defined below) ("T-Bill ETF Income") over the expenses of the Fund. The Fund invests in futures contracts in an attempt to track its Index. The Index is intended to reflect the change in market value of the energy sector. The commodities comprising the Index are Light Sweet Crude Oil, Ultra-Low Sulphur Diesel (also commonly known as Heating Oil), Brent Crude Oil, RBOB Gasoline (reformulated gasoline blendstock for oxygen blending, or "RBOB") and Natural Gas (each, an "Index Commodity," and collectively, the "Index Commodities"). The Fund may invest directly in United States Treasury Obligations. The Fund may also gain exposure to United S

View Full Filing

View this 10-K filing on SEC EDGAR