United States Natural Gas Fund, LP Files 2023 Annual Report
Ticker: UNG · Form: 10-K · Filed: Feb 29, 2024 · CIK: 1376227
Sentiment: neutral
Topics: Natural Gas, Commodity ETF, Futures Contracts, UNG, 10-K Filing
TL;DR
<b>United States Natural Gas Fund, LP (UNG) filed its 2023 10-K, detailing its commodity contract operations and investment strategy focused on natural gas price tracking.</b>
AI Summary
United States Natural Gas Fund, LP (UNG) filed a Annual Report (10-K) with the SEC on February 29, 2024. The United States Natural Gas Fund, LP (UNG) filed its 10-K for the fiscal year ending December 31, 2023. The filing details the fund's operations involving commodity contracts, specifically futures and OTC swaps related to natural gas. UNG's investment strategy focuses on tracking the daily changes of natural gas prices. The report includes information on the fund's fair value measurements for its investments, categorized by input levels. Key dates related to fund activities, such as prior reverse splits, are noted within the filing.
Why It Matters
For investors and stakeholders tracking United States Natural Gas Fund, LP, this filing contains several important signals. This 10-K provides investors with a comprehensive overview of UNG's financial performance, investment holdings, and risk factors for the fiscal year 2023, crucial for understanding the fund's exposure to natural gas market volatility. The filing's detailed breakdown of commodity contracts and fair value measurements offers insights into how UNG manages its portfolio and navigates the complexities of the natural gas futures market.
Risk Assessment
Risk Level: medium — United States Natural Gas Fund, LP shows moderate risk based on this filing. The fund's performance is directly tied to the volatile price of natural gas, which can lead to significant fluctuations in its Net Asset Value and potentially underperform the spot price of natural gas over longer periods due to contango effects.
Analyst Insight
Investors should carefully review UNG's disclosures on commodity contract performance and expense ratios to assess its suitability for long-term investment in natural gas.
Financial Highlights
- revenue
- 191,284,588
- total Assets
- 191,284,588
- total Debt
- 47,821,147
Key Numbers
- 191,284,588 — Total Assets (As of 2023-12-31)
- 47,821,147 — Total Debt (As of 2023-12-31)
- 0.25 — Expense Ratio (As of 2023-12-31)
Key Players & Entities
- United States Natural Gas Fund, LP (company) — Filer name
- UNG (company) — Ticker symbol
- 10-K (regulator) — Filing type
- 2023-12-31 (date) — Fiscal year end
- 2024-02-29 (date) — Filing date
- Walnut Creek, CA (location) — Business address city and state
FAQ
When did United States Natural Gas Fund, LP file this 10-K?
United States Natural Gas Fund, LP filed this Annual Report (10-K) with the SEC on February 29, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by United States Natural Gas Fund, LP (UNG).
Where can I read the original 10-K filing from United States Natural Gas Fund, LP?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by United States Natural Gas Fund, LP.
What are the key takeaways from United States Natural Gas Fund, LP's 10-K?
United States Natural Gas Fund, LP filed this 10-K on February 29, 2024. Key takeaways: The United States Natural Gas Fund, LP (UNG) filed its 10-K for the fiscal year ending December 31, 2023.. The filing details the fund's operations involving commodity contracts, specifically futures and OTC swaps related to natural gas.. UNG's investment strategy focuses on tracking the daily changes of natural gas prices..
Is United States Natural Gas Fund, LP a risky investment based on this filing?
Based on this 10-K, United States Natural Gas Fund, LP presents a moderate-risk profile. The fund's performance is directly tied to the volatile price of natural gas, which can lead to significant fluctuations in its Net Asset Value and potentially underperform the spot price of natural gas over longer periods due to contango effects.
What should investors do after reading United States Natural Gas Fund, LP's 10-K?
Investors should carefully review UNG's disclosures on commodity contract performance and expense ratios to assess its suitability for long-term investment in natural gas. The overall sentiment from this filing is neutral.
Risk Factors
- Price Volatility of Natural Gas [high — market]: The fund's Net Asset Value is subject to significant volatility due to fluctuations in the price of natural gas, which can be influenced by weather, supply and demand, and geopolitical events.
- Tracking Error [medium — financial]: The fund may not perfectly track the daily changes in the price of natural gas due to factors such as fees, expenses, and the impact of rolling futures contracts (contango/backwardation).
- Reliance on Futures Contracts [medium — operational]: The fund's performance is based on its holdings of natural gas futures contracts, which carry inherent risks including margin calls and potential for large losses.
Key Dates
- 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
- 2024-02-29: Filing Date — Date the 10-K was officially submitted to the SEC.
Glossary
- Commodity Contract
- A contract whose value is derived from a commodity such as oil, natural gas, or metals. (UNG's primary investment vehicle involves these contracts, directly impacting its performance.)
Filing Stats: 4,714 words · 19 min read · ~16 pages · Grade level 12.1 · Accepted 2024-02-29 17:18:04
Filing Documents
- ung-20231231x10k.htm (10-K) — 1912KB
- ung-20231231xex23d1.htm (EX-23.1) — 2KB
- ung-20231231xex31d1.htm (EX-31.1) — 16KB
- ung-20231231xex31d2.htm (EX-31.2) — 16KB
- ung-20231231xex32d1.htm (EX-32.1) — 9KB
- ung-20231231xex32d2.htm (EX-32.2) — 9KB
- ung-20231231xex97d1.htm (EX-97.1) — 33KB
- ung-20231231x10k010.jpg (GRAPHIC) — 102KB
- ung-20231231x10k011.jpg (GRAPHIC) — 88KB
- ung-20231231x10k013.jpg (GRAPHIC) — 52KB
- ung-20231231x10k014.jpg (GRAPHIC) — 82KB
- ung-20231231x10k017.jpg (GRAPHIC) — 2KB
- ung-20231231x10k018.jpg (GRAPHIC) — 3KB
- 0001410578-24-000105.txt ( ) — 6552KB
- ung-20231231.xsd (EX-101.SCH) — 48KB
- ung-20231231_cal.xml (EX-101.CAL) — 31KB
- ung-20231231_def.xml (EX-101.DEF) — 111KB
- ung-20231231_lab.xml (EX-101.LAB) — 260KB
- ung-20231231_pre.xml (EX-101.PRE) — 219KB
- ung-20231231x10k_htm.xml (XML) — 829KB
Business
Item 1. Business. 1
Risk Factors
Item 1A. Risk Factors. 34
Unresolved Staff Comments
Item 1B. Unresolved Staff Comments. 51
Cybersecurity
Item 1C. Cybersecurity. 51
Properties
Item 2. Properties. 51
Legal Proceedings
Item 3. Legal Proceedings. 51
Mine Safety Disclosures
Item 4. Mine Safety Disclosures. 54 Part II
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 54
[Reserved]
Item 6. [Reserved]. 55
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 55
Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 74
Financial Statements and Supplementary Data
Item 8. Financial Statements and Supplementary Data. 76
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 100
Controls and Procedures
Item 9A. Controls and Procedures. 100
Other Information
Item 9B. Other Information. 100
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 100 Part III
Directors, Executive Officers and Corporate Governance
Item 10. Directors, Executive Officers and Corporate Governance. 101
Executive Compensation
Item 11. Executive Compensation. 106
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 107
Certain Relationships and Related Transactions, and Director Independence
Item 13. Certain Relationships and Related Transactions, and Director Independence. 107
Principal Accountant Fees and Services
Item 14. Principal Accountant Fees and Services. 108 Part IV
Exhibits and Financial Statement Schedules
Item 15. Exhibits and Financial Statement Schedules. 109
Form 10-K Summary
Item 16. Form 10-K Summary. 110 Exhibit Index. 109 Signatures. 111 i Table of Contents Part I
Business
Item 1. Business. What is UNG? The United States Natural Gas Fund, LP ("UNG") is a Delaware limited partnership organized on September 11, 2006. UNG maintains its main business office at 1850 Mt. Diablo Boulevard, Suite 640, Walnut Creek, California 94596. UNG is a commodity pool that issues limited partnership interests ("shares") traded on the NYSE Arca, Inc. (the "NYSE Arca"). UNG's shares began trading on April 18, 2007. It operates pursuant to the terms of the Fifth Amended and Restated Agreement of Limited Partnership dated as of December 15, 2017 (as amended from time to time, the "LP Agreement"), which grants full management control to its general partner, United States Commodity Funds LLC ("USCF"). The investment objective of UNG is for the daily changes in percentage terms of its per share net asset value ("NAV") to reflect the daily changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana, as measured by the daily changes in the price of a specified short-term futures contract called the "Benchmark Futures Contract", plus interest earned on UNG's collateral holdings, less UNG's expenses. The Benchmark Futures Contract is the futures contract on natural gas as traded on the New York Mercantile Exchange (the "NYMEX") that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire. UNG seeks to achieve its investment objective by investing so that the average daily percentage change in UNG's NAV for any period of 30 successive valuation days will be within plus/minus ten percent (10%) of the average daily percentage change in the price of the Benchmark Futures Contract over the same period. Additionally, by investing primarily in futures contracts for natural gas that are traded on the NYMEX, ICE Futures Europe and ICE Futures U.S. (together, "ICE Futures") or other U.S.