UGA Navigates Volatile Gasoline Futures Market in Q2

TL;DR

**UGA is a pure play on gasoline prices, so if you're bullish on gas, buy it; otherwise, steer clear.**

AI Summary

The United States Gasoline Fund, LP (UGA) reported its 10-Q for the period ending June 30, 2025. The filing indicates that the fund primarily invests in gasoline futures contracts. While specific revenue and net income figures are not explicitly detailed in the provided excerpt, the fund's operations revolve around managing commodity contracts, specifically open and closed gasoline futures. The fund's financial instruments include short-term investments and foreign exchange futures, valued using Level 1, Level 2, and Level 3 fair value inputs. The general partner and limited partners' capital balances are tracked, with the general partner holding a 0.10% interest. The fund's strategic outlook remains focused on tracking the price of gasoline, with no major business changes or new risks highlighted beyond the inherent volatility of commodity markets. The fund's structure as a limited partnership means its performance is directly tied to the movements in gasoline prices.

Why It Matters

For investors, UGA's performance directly reflects the highly volatile gasoline market, impacting portfolio diversification and hedging strategies against energy price fluctuations. Employees of the fund's general partner, United States Commodity Funds LLC, are indirectly affected by the fund's operational efficiency and asset under management. Customers, particularly those in transportation and logistics, can use UGA as a benchmark or hedge for their fuel costs. The broader market sees UGA as a key indicator of speculative and investment interest in gasoline, influencing energy sector sentiment and competitive dynamics among commodity ETFs.

Risk Assessment

Risk Level: high — The fund's primary investment is in gasoline futures contracts, which are inherently volatile and subject to rapid price swings due to geopolitical events, supply chain disruptions, and demand fluctuations. The filing mentions 'commodity contracts' and 'foreign exchange futures,' indicating exposure to market risks that can lead to significant capital losses.

Analyst Insight

Investors should closely monitor global oil production, geopolitical stability, and seasonal demand trends for gasoline before investing in UGA. Consider UGA as a tactical allocation for short-term exposure to gasoline price movements, rather than a long-term core holding, due to its high volatility.

Key Numbers

• 0.10 — General Partner Interest (Represents the percentage interest held by the General Partner in the fund.)
• 2025-06-30 — Period End Date (The reporting period for this 10-Q filing.)
• 2025-08-08 — Filing Date (The date the 10-Q was filed with the SEC.)

Key Players & Entities

• United States Gasoline Fund, LP (company) — filer of the 10-Q
• United States Commodity Funds LLC (company) — general partner of UGA
• SEC (regulator) — recipient of the 10-Q filing
• 0.10% (dollar_amount) — general partner's interest in the fund
• June 30, 2025 (date) — end of the reporting period
• August 8, 2025 (date) — filing date of the 10-Q
• Walnut Creek, CA (location) — business address of UGA

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The fund's performance is directly tied to the price of gasoline futures contracts. Fluctuations in gasoline prices, driven by factors such as supply and demand, geopolitical events, and economic conditions, can lead to significant changes in the fund's net asset value. The inherent volatility of commodity markets presents a primary risk to investors.
• Futures Contract Risk [high — market]: As the fund invests in futures contracts, it is exposed to risks associated with the futures market, including leverage, margin calls, and potential for rapid price movements. The value of futures contracts can be influenced by factors beyond the spot price of gasoline, such as interest rates and currency exchange rates.
• Counterparty Risk [medium — financial]: The fund engages in derivative contracts, which may expose it to counterparty risk. This is the risk that the other party to a contract will default on its obligations. While the fund may mitigate this risk through collateral arrangements, significant defaults could impact the fund's value.
• Management Risk [medium — operational]: The fund's success depends on the expertise of its management in selecting and managing futures contracts. Ineffective management of the portfolio, including hedging strategies and contract selection, could lead to underperformance relative to gasoline prices.
• Foreign Exchange Risk [medium — financial]: The fund utilizes foreign exchange futures, exposing it to currency fluctuations. Changes in exchange rates between the US dollar and other currencies can impact the value of these contracts and, consequently, the fund's overall performance.

Industry Context

The United States Gasoline Fund, LP operates within the energy commodity sector, specifically focusing on gasoline. This market is characterized by significant price volatility driven by global supply and demand dynamics, geopolitical events, and seasonal consumption patterns. The competitive landscape includes other commodity-tracking ETFs and futures funds, as well as direct investments in energy companies. Trends such as the transition to renewable energy and evolving transportation technologies could impact long-term gasoline demand.

Regulatory Implications

As a publicly traded fund, UGA is subject to SEC regulations, including the requirement to file regular reports like this 10-Q. Compliance with these regulations ensures transparency for investors. Additionally, the fund's operations involving futures contracts are subject to oversight by regulatory bodies like the Commodity Futures Trading Commission (CFTC), which governs the derivatives markets.

What Investors Should Do

1. Review the fund's exposure to gasoline futures contracts.
2. Assess the fund's use of Level 3 fair value inputs.
3. Monitor news and events impacting global oil and gasoline markets.
4. Consider the fund's structure as a limited partnership.

Key Dates

• 2025-06-30: Period End Date — Marks the end of the reporting period for the 10-Q filing, providing a snapshot of the fund's financial position and performance.
• 2025-08-08: Filing Date — The date the 10-Q was officially submitted to the SEC, making the information publicly available to investors.
• 2024-01-01: Start of Comparative Period — Indicates the beginning of the period for which financial data is being compared in the filing, allowing for year-over-year analysis.
• 2024-06-30: Prior Period End Date — Represents the end of the comparable prior period, used for comparing financial performance and position against the current reporting period.

Glossary

Futures Contract

A standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. UGA uses these to track gasoline prices. (This is the primary financial instrument the fund uses to achieve its investment objective.)

General Partner

The entity that manages the limited partnership and has unlimited liability. In UGA, the General Partner holds a 0.10% interest. (Indicates the management structure and ownership stake of the fund's operator.)

Limited Partner

An investor in a limited partnership whose liability is limited to the amount of their investment. The majority of UGA's investors are limited partners. (Represents the investor base of the fund.)

Fair Value Inputs Level 1

Quoted prices in active markets for identical assets or liabilities. These are the most reliable fair value measurements. (Indicates that some of the fund's assets (like short-term investments and foreign exchange futures) are valued using readily available market prices.)

Fair Value Inputs Level 2

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets, or inputs that are observable for the asset or liability. (Suggests that some valuations rely on market data that is not for identical instruments but is still observable.)

Fair Value Inputs Level 3

Unobservable inputs, used when observable inputs are not available. These are based on the reporting entity's own assumptions and models. (Indicates that certain assets or liabilities are valued using internal models or assumptions, which can introduce more subjectivity.)

Open Contracts

Futures contracts that have been entered into but have not yet been settled or closed out. (Represents the fund's current exposure to the gasoline market through active futures positions.)

Closed Contracts

Futures contracts that have been settled or offset, resulting in a realized gain or loss. (Reflects past trading activity and the profit or loss generated from completed futures positions.)

Year-Over-Year Comparison

This filing covers the period ending June 30, 2025. Specific comparative metrics against the prior year's 10-Q (ending June 30, 2024) are not detailed in the provided excerpt. However, the fund's core strategy remains focused on tracking gasoline prices through futures contracts. No new significant risks beyond the inherent market volatility of commodities and derivative instruments were highlighted in the summary.

Filing Documents

• uga-20250630x10q.htm (10-Q) — 1095KB
• uga-20250630xex31d1.htm (EX-31.1) — 15KB
• uga-20250630xex31d2.htm (EX-31.2) — 17KB
• uga-20250630xex32d1.htm (EX-32.1) — 9KB
• uga-20250630xex32d2.htm (EX-32.2) — 10KB
• uga-20250630x10q008.jpg (GRAPHIC) — 52KB
• uga-20250630x10q009.jpg (GRAPHIC) — 53KB
• uga-20250630x10q010.jpg (GRAPHIC) — 75KB
• uga-20250630x10q011.jpg (GRAPHIC) — 74KB
• 0001410578-25-001641.txt ( ) — 4722KB
• uga-20250630.xsd (EX-101.SCH) — 40KB
• uga-20250630_cal.xml (EX-101.CAL) — 24KB
• uga-20250630_def.xml (EX-101.DEF) — 99KB
• uga-20250630_lab.xml (EX-101.LAB) — 225KB
• uga-20250630_pre.xml (EX-101.PRE) — 187KB
• uga-20250630x10q_htm.xml (XML) — 585KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Page Item I. Financial Statements. 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

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

Quantitative and Qualitative Disclosures About Market Risk

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

Controls and Procedures

Item 4. Controls and Procedures. 39

OTHER INFORMATION

Part II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 40

Risk Factors

Item 1A. Risk Factors. 43

Unregistered Sales of Equity Securities and Use of Proceeds

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

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 44

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 44

Other Information

Item 5. Other Information. 44

Exhibits

Item 6. Exhibits. 45 2 Table of Contents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Index to Financial Statements Documents Page 4 Schedules of Investments at June 30, 2025 (Unaudited) and December 31, 2024 5 7 8 9

Notes to Financial Statements (Unaudited) for the period ended June 30, 2025

Notes to Financial Statements (Unaudited) for the period ended June 30, 2025 10 3 Table of Contents United States Gasoline Fund, LP At June 30, 2025 (Unaudited) and December 31, 2024 June 30, 2025 December 31, 2024 Assets Cash and cash equivalents (at cost $ 58,794,599 and $ 75,857,796 , respectively) (Notes 2 and 5) $ 58,794,599 $ 75,857,796 Equity in trading accounts: Cash and cash equivalents (at cost $ 18,101,002 and $ 21,991,802 , respectively) 18,101,002 21,991,802 Unrealized gain (loss) on open commodity futures contracts ( 4,684,739 ) 2,757,430 Dividends receivable 150,582 135,525 Interest receivable 99,972 235,090 Prepaid insurance 21,217 2,252 Total Assets $ 72,482,633 $ 100,979,895 Liabilities and Partners' Capital General Partner management fees payable (Note 3) $ 36,712 $ 51,401 Professional fees payable 65,891 177,803 Brokerage commissions payable 21,403 21,403 Directors' fees payable 2,838 2,895 License fees payable 21,742 15,502 Total Liabilities 148,586 269,004 Commitments and Contingencies (Notes 3, 4 & 5) Partners' Capital General Partners — — Limited Partners 72,334,047 100,710,891 Total Partners' Capital 72,334,047 100,710,891 Total Liabilities and Partners' Capital $ 72,482,633 $ 100,979,895 Limited Partners' shares outstanding 1,200,000 1,600,000 Net asset value per share $ 60.28 $ 62.94 Market value per share $ 60.22 $ 62.99 See accompanying notes to financial statements. 4 Table of Contents United States Gasoline Fund, LP Schedule of Investments (Unaudited) At June 30, 2025 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 RBOB Gasoline Futures RB August 2025 contracts, expiring July 2025 * $ 77,0

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) For the period ended June 30, 2025 NOTE 1 — ORGANIZATION AND BUSINESS The United States Gasoline Fund, LP ("UGA") was organized as a limited partnership under the laws of the state of Delaware on April 13, 2007. UGA is a commodity pool that issues limited partnership interests ("shares") traded on the NYSE Arca, Inc. (the "NYSE Arca"). UGA's shares began trading on February 26, 2008. Prior to November 25, 2008, UGA's shares traded on the American Stock Exchange (the "AMEX"). UGA will continue in perpetuity, unless terminated sooner upon the occurrence of one or more events as described in its Third Amended and Restated Agreement of Limited Partnership dated as of December 15, 2017 (the "LP Agreement"), which grants full management and control to its general partner, United States Commodity Funds LLC ("USCF"). The investment objective of UGA is for the daily changes in percentage terms of its shares' per share net asset value ("NAV") to reflect the daily changes in percentage terms of the spot price of gasoline (also known as reformulated gasoline blendstock for oxygen blending, or "RBOB"), for delivery to the New York harbor), as measured by the daily changes in the price of a specified short-term futures contract on gasoline called the "Benchmark Futures Contract," plus interest earned on UGA's collateral holdings, less UGA's expenses. The Benchmark Futures Contract is the futures contract on gasoline as traded on 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. UGA seeks to achieve its investment objective by investing so that the average daily percentage change in UGA'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 Cont

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View this 10-Q filing on SEC EDGAR