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United States Natural Gas Fund (UNG-3.46%), LP has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net asset value (NAV) per share decrease from $20.36 to $16.43. The decrease is attributed to market conditions and changes in natural gas futures prices.
Total assets as of September 30, 2024, were $932,633,635, down from $987,758,866 at the end of 2023. The decline in assets is primarily due to the decrease in the value of natural gas futures contracts held by the fund.
UNG reported a net loss of $81,643,654 for the nine months ended September 30, 2024, compared to a net loss of $417,544,392 in the same period the previous year.
Cash provided by operating activities was negative $38,754,701, while cash used in financing activities was $71,586,125, resulting in a net decrease in cash and cash equivalents.
The fund's investment objective is to track the daily changes in the price of natural gas futures contracts, and it primarily invests in futures contracts traded on the NYMEX (CME-0.62%).
The filing details various legal proceedings involving USCF, the general partner of UNG, including the resolution of SEC and CFTC investigations and ongoing class action lawsuits.
UNG's management fee is calculated as a percentage of its total net assets, and total fees and expenses for the nine months ended September 30, 2024, were $7,615,320.
The fund's exposure to market risk is primarily through its holdings of natural gas futures contracts and other derivatives, which are subject to fluctuations in market value.
UNG does not anticipate borrowing money or using debt to meet its obligations and intends to maintain sufficient liquidity to meet margin and collateral requirements.
The filing also discusses regulatory risks, including potential impacts from geopolitical events such as the Russia-Ukraine war and conflicts in the Middle East, which could affect natural gas prices and market volatility.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the United States Natural Gas Fund quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.