UNL Q2 2025 Report: Income Surge Amid Losses and Market Volatility Challenges Ahead

United States 12 Month Natural Gas Fund, LP (NYSEARCA: UNL) - Q2 2025 Financial Report Summary

This report reviews the latest financial results for United States 12 Month Natural Gas Fund, LP (UNL) for the quarter ending June 30, 2025, including key changes and performance in their income statement.

Key Points from Income Statement

• Total Income: $1,912,138 for the six months ended June 30, 2025, compared to $(983,307) for the same period in 2024.
• Net Income: Reported a loss of $2,383,394 in Q2 2025 after generating a profit of $1,178,251 in Q2 2024.
• Net Income per Limited Partner Share: $(1.53) in Q2 2025 compared to $0.51 in Q2 2024.
• Average Daily Total Net Assets: Decreased from $18,514,342 in Q2 2024 to $12,782,273 in Q2 2025.
• Cash and Cash Equivalents: Totalled $11,757,207 as of June 30, 2025, down from $17,860,450 at the end of 2024.

Positive Aspects:

• Significant improvement in total income for the first half of 2025, marking a turnaround from 2024.
• The net asset value per share increased from $8.12 to $8.73, indicating growth in market perception.
• Market conditions led to an 11.26% increase in Benchmark Natural Gas Futures prices during the reporting period, contributing positively to potential future gains.

Negative Aspects:

• Substantial drop in net income due to losses on trading of commodity futures contracts, specifically a $2,953,638 unrealized loss on open contracts.
• Overall, the fund's operational costs remain high, increasing from $110,658 to $192,922, with a noted absence of past expense waivers that previously cushioned financial performance.
• A reduced number of outstanding shares (1,350,000 as of August 1, 2025, down from 2,300,000) may indicate diminishing investor interest or confidence.

Volatility and Market Factors:

• The market remains volatile due to geopolitical events such as the Russia-Ukraine war and fluctuating natural gas supply-demand dynamics.
• The potential impact of interest rate changes is a concern, particularly if they lead to unfavorable trading conditions for futures contracts.

Looking Ahead:

While UNL has shown some growth in asset value and income generation, ongoing performance will be contingent on improving trading conditions in the natural gas market and operational management of expenses. Stakeholders should stay informed on geopolitical factors and natural gas price trends as they will likely continue to influence fund performance.