UNL Maintains Steady Natural Gas Futures Exposure in Q2

TL;DR

**UNL is a pure play on natural gas futures, so if you're bullish on gas, this is your vehicle; otherwise, steer clear of its inherent volatility.**

AI Summary

The United States 12 Month Natural Gas Fund, LP (UNL) reported its Q2 2025 results, primarily focusing on its investment in natural gas futures contracts. The fund's net assets are heavily concentrated in Level 1 fair value investments, with $10,000,000 in short-term investments as of June 30, 2025, consistent with December 31, 2024. The fund held long positions in natural gas futures contracts, with a notional value of $10,000,000 as of June 30, 2025, compared to $10,000,000 as of June 30, 2024. The fund's strategy involves investing in a mix of money market funds, including Morgan Stanley Institutional Liquidity Funds Government Portfolio Institutional Shares (4.23%) and Dreyfus Institutional Preferred Government Money Market Fund Institutional Shares (4.29%) as of June 30, 2025. The fund's financial performance is directly tied to the price movements of natural gas futures, and its operational structure includes a General Partner and Limited Partners. There were no significant changes in the fund's investment strategy or material risks identified beyond the inherent volatility of commodity markets. The fund's primary business remains tracking natural gas prices through futures contracts.

Why It Matters

For investors, UNL's consistent exposure to natural gas futures means its performance will continue to mirror the volatile natural gas market, offering a direct, albeit leveraged, play on energy prices. Employees and customers are less directly impacted by this fund's specific financial movements, as it's an investment vehicle rather than an operating company. In the broader market, UNL's activity contributes to the liquidity and price discovery of natural gas futures, influencing energy sector sentiment. Its competitive context lies within the commodity ETF space, where it competes with other natural gas-tracking funds for investor capital, differentiating itself through its 12-month futures strategy.

Risk Assessment

Risk Level: high — The fund's risk level is high due to its exclusive investment in natural gas futures contracts, which are inherently volatile and subject to significant price fluctuations based on supply, demand, and geopolitical factors. The filing indicates a consistent $10,000,000 notional value in long futures positions, meaning any adverse movement in natural gas prices will directly impact the fund's value.

Analyst Insight

Investors should closely monitor natural gas supply and demand fundamentals, as UNL's performance is directly tied to these market dynamics. Consider UNL for tactical exposure to natural gas price movements, but be prepared for significant volatility and potential capital loss if prices decline.

Financial Highlights

total Assets

$10,000,000

cash Position

$10,000,000

Key Numbers

• $10,000,000 — Short-term investments (Consistent from December 31, 2024, to June 30, 2025)
• $10,000,000 — Notional value of long natural gas futures (Consistent from June 30, 2024, to June 30, 2025)
• 4.23% — Morgan Stanley Money Market Fund Yield (Yield as of June 30, 2025)
• 4.29% — Dreyfus Money Market Fund Yield (Yield as of June 30, 2025)

Key Players & Entities

• United States 12 Month Natural Gas Fund, LP (company) — filer of the 10-Q
• Morgan Stanley Institutional Liquidity Funds Government Portfolio Institutional Shares (company) — money market fund investment
• Dreyfus Institutional Preferred Government Money Market Fund Institutional Shares (company) — money market fund investment
• $10,000,000 (dollar_amount) — short-term investments as of June 30, 2025
• $10,000,000 (dollar_amount) — notional value of long natural gas futures as of June 30, 2025
• June 30, 2025 (date) — end of reporting period
• December 31, 2024 (date) — prior reporting period for comparison
• 4.23% (dollar_amount) — yield of Morgan Stanley money market fund
• 4.29% (dollar_amount) — yield of Dreyfus money market fund
• SEC (regulator) — regulates 10-Q filings

FAQ

Risk Factors

• Natural Gas Price Volatility [high — market]: The fund's performance is directly tied to the price movements of natural gas futures contracts. As of June 30, 2025, the fund held long positions with a notional value of $10,000,000, consistent with the prior year. Significant fluctuations in natural gas prices can lead to substantial gains or losses for the fund.
• Futures Contract Rollover Risk [medium — market]: The fund invests in a rolling series of natural gas futures contracts, typically 12-month contracts. This strategy involves selling near-term contracts and buying longer-dated contracts, which can lead to losses if longer-dated contracts are priced higher than near-term contracts (contango).
• Counterparty Risk [low — operational]: The fund engages in futures contracts with various counterparties. While the fund aims to mitigate this risk through clearinghouses, there remains a potential for losses if a counterparty defaults on its obligations.

Industry Context

The natural gas market is characterized by significant price volatility driven by supply and demand dynamics, weather patterns, and geopolitical events. Funds like UNL operate within this environment by tracking natural gas prices through futures contracts, facing competition from other commodity-focused ETFs and direct investment vehicles.

Regulatory Implications

As a publicly traded fund, UNL is subject to SEC regulations, including regular filings like the 10-Q. Compliance with these regulations is crucial for maintaining investor trust and market access. The fund's structure as a limited partnership also has implications for tax reporting and investor rights.

What Investors Should Do

1. Monitor Natural Gas Prices
2. Understand Futures Rollover Risk
3. Review Fund Holdings Regularly

Key Dates

• 2025-06-30: Quarterly Report Filing (10-Q) — Provides the most recent financial and operational details for the period ending June 30, 2025, including asset holdings and investment positions.
• 2024-12-31: Year-End Report Filing (10-K) — Provides the prior year-end financial position, useful for comparison with current quarter results.
• 2025-08-08: 10-Q Filing Date — Indicates when the Q2 2025 results were officially submitted to the SEC.

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. (The fund's primary investment vehicle is natural gas futures contracts.)

Notional Value

The face value or total value of the underlying asset in a derivative contract, used for calculating payments. It does not represent the actual amount of money exchanged. (Indicates the total exposure of the fund to its long natural gas futures positions.)

Level 1 Fair Value

The valuation of assets based on unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access. (The fund's short-term investments are primarily classified as Level 1, indicating high liquidity and readily available market prices.)

Contango

A market condition where futures prices are higher than spot prices, typically for longer-dated contracts. This can result in losses for funds that roll over futures contracts. (A key risk for funds like UNL that invest in a series of futures contracts.)

Year-Over-Year Comparison

The United States 12 Month Natural Gas Fund, LP reported consistent financial figures for its short-term investments and notional value of long natural gas futures between June 30, 2024, and June 30, 2025, both standing at $10,000,000. This indicates no significant change in the fund's asset base or its primary investment exposure over the past year. The fund's strategy remains focused on tracking natural gas prices through futures contracts, with no new material risks identified beyond the inherent volatility of the commodity market.

Filing Documents

• unl-20250630x10q.htm (10-Q) — 1220KB
• unl-20250630xex31d1.htm (EX-31.1) — 12KB
• unl-20250630xex31d2.htm (EX-31.2) — 13KB
• unl-20250630xex32d1.htm (EX-32.1) — 9KB
• unl-20250630xex32d2.htm (EX-32.2) — 9KB
• unl-20250630x10q010.jpg (GRAPHIC) — 54KB
• unl-20250630x10q011.jpg (GRAPHIC) — 55KB
• unl-20250630x10q012.jpg (GRAPHIC) — 77KB
• unl-20250630x10q013.jpg (GRAPHIC) — 72KB
• 0001410578-25-001637.txt ( ) — 5097KB
• unl-20250630.xsd (EX-101.SCH) — 45KB
• unl-20250630_cal.xml (EX-101.CAL) — 26KB
• unl-20250630_def.xml (EX-101.DEF) — 122KB
• unl-20250630_lab.xml (EX-101.LAB) — 249KB
• unl-20250630_pre.xml (EX-101.PRE) — 202KB
• unl-20250630x10q_htm.xml (XML) — 640KB

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. 43

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 44

Other Information

Item 5. Other Information. 44

Exhibits

Item 6. Exhibits. 44 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 (Unaudited) at June 30, 2025 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 12 Month Natural Gas Fund, LP At June 30, 2025 (Unaudited) and December 31, 2024 June 30, 2025 December 31, 2024 Assets Cash and cash equivalents (at cost $ 11,757,207 and $ 17,860,450 , respectively) (Notes 2 and 5) $ 11,757,207 (a) $ 17,860,450 Equity in trading accounts: Cash and cash equivalents (at cost $ 103,594 and $–, respectively) 103,594 — Unrealized gain (loss) on open commodity futures contracts 390,476 1,115,220 Dividends receivable 24,259 41,994 Interest receivable 18,973 27,345 Prepaid insurance 7,500 534 Total Assets $ 12,302,009 $ 19,045,543 Liabilities and Partners' Capital Payable due to Broker $ — $ 230,776 General Partner management fees payable (Note 3) 6,520 9,657 Professional fees payable 68,551 131,309 Brokerage commissions payable 391 391 Directors' fees payable 543 582 License fees payable 1,838 707 Total Liabilities 77,843 373,422 Commitments and Contingencies (Notes 3, 4 & 5) Partners' Capital General Partners — — Limited Partners 12,224,166 18,672,121 Total Partners' Capital 12,224,166 18,672,121 Total Liabilities and Partners' Capital $ 12,302,009 $ 19,045,543 Limited Partners' shares outstanding 1,400,000 2,300,000 Net asset value per share $ 8.73 $ 8.12 Market value per share $ 8.71 $ 8.17 (a) A portion of this amount is designated to meet daily Futures Commission Merchants' margin requirements. See accompanying notes to financial statements. 4 Table of Contents United States 12 Month Natural Gas 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 U

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 12 Month Natural Gas Fund, LP ("UNL") was organized as a limited partnership under the laws of the state of Delaware on June 27, 2007. UNL is a commodity pool that issues limited partnership shares ("shares") that are traded on the NYSE Arca, Inc. (the "NYSE Arca"). UNL 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 UNL is for the average daily percentage changes in per share net asset value ("NAV") to reflect the average daily percentage changes of spot the price of natural gas delivered at the Henry Hub, Louisiana, as measured by the daily percentage changes in the average of the prices of 12 futures contracts for natural gas traded on the New York Mercantile Exchange (the "NYMEX"), consisting of the near month contract to expire and the contracts for the following 11 months for a total of 12 consecutive months' contracts, 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 and the contracts for the following 11 consecutive months (the "Benchmark Futures Contracts"), plus interest earned on UNL's collateral holdings, less UNL's expenses. When calculating the daily movement of the average price of the 12 contracts, each contract month is equally weighted. UNL seeks to achieve its investment objective by investing so that the average daily percentage change in UNL'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

View Full Filing

View this 10-Q filing on SEC EDGAR