8-K: United States Natural Gas Fund Reports Over $17 Million Net Loss and Significant NAV Decline in May 2025

The United States Natural Gas Fund, LP (UNG) disclosed a net loss of $17.19 million and an 19.1% decrease in its Net Asset Value for the month ended May 31, 2025, primarily driven by adverse trading performance in commodity futures and swap contracts.

Summary

• The United States Natural Gas Fund, LP (UNG) reported a net loss of $17,190,467 for the month ended May 31, 2025.
• This loss was primarily attributed to an unrealized loss of $11,018,858 on the market value of commodity futures and a realized loss of $9,957,712 on swap contracts.
• The fund's Net Asset Value (NAV) decreased from $428,703,283 at the beginning of May to $346,779,501 by month-end, representing a decline of approximately 19.1%.
• The decrease in NAV was also influenced by net withdrawals of shares, with $189,340,142 in withdrawals offsetting $124,606,827 in additions, resulting in a net outflow of $64,733,315.
• NAV per share stood at $15.66 based on 22,146,103 shares outstanding at month-end.
• The fund generated some positive income streams, including a realized trading gain on commodity futures of $3,013,369, dividend income of $702,036, and interest income of $425,928.
• Total expenses for the month amounted to $382,307, which included General Partner Management Fees of $186,829, Professional Fees of $112,891, and Brokerage Commissions of $58,109.

Sentiment

Score: 3

Explanation: The fund experienced a significant net loss and a substantial decline in Net Asset Value due to adverse trading performance in commodity derivatives, indicating a poor financial month despite some positive income streams.

Positives

• The fund reported a realized trading gain on commodity futures of $3,013,369.
• The fund generated dividend income of $702,036.
• Interest income contributed $425,928 to the fund's earnings.
• ETF transaction fees added $27,000 to the fund's income.

Negatives

• The fund incurred a significant net loss of $17,190,467 for the month ended May 31, 2025.
• There was a substantial unrealized loss of $11,018,858 on the market value of commodity futures.
• A realized loss of $9,957,712 was recorded on swap contracts.
• The Net Asset Value (NAV) decreased by $81,923,782, from $428,703,283 to $346,779,501, during the month.
• The fund experienced net withdrawals of shares totaling $64,733,315 ($189,340,142 withdrawals minus $124,606,827 additions).

Risks

• The fund is exposed to significant market risk from fluctuations in the value of commodity futures and swap contracts, as evidenced by the large unrealized and realized losses in May 2025.
• The fund's performance is directly tied to the volatile natural gas market, which can lead to substantial gains or losses.
• The fund's Net Asset Value is subject to changes based on both trading performance and investor flows (additions and withdrawals of shares).

Future Outlook

The document does not contain any explicit forward-looking statements or guidance regarding future performance or market conditions.

Management Comments

• "To the best of his knowledge and belief, the information contained in the Account Statement for the month ended May 31, 2025 is accurate and complete." (Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, General Partner of United States Natural Gas Fund, LP)

Industry Context

This monthly report reflects the performance of a natural gas commodity fund. The significant losses from commodity futures and swap contracts suggest a challenging month for natural gas prices or the fund's specific trading strategies, aligning with the inherent volatility often seen in commodity markets. The document itself does not provide broader industry trends or competitor analysis.

Comparison to Industry Standards

• The document does not provide specific comparable companies, projects, or results to assess its performance against global benchmarks or industry standards. As a commodity-tracking fund, its performance is primarily benchmarked against the underlying natural gas price movements and its stated investment objective, which is not detailed in this specific filing.

Related Party Transactions

• General Partner Management Fees of $186,829 were paid to United States Commodity Funds LLC, the fund's general partner.

Stakeholder Impact

• Shareholders: Experienced a significant decrease in Net Asset Value per share, indicating a decline in investment value for the month.
• General Partner (United States Commodity Funds LLC): Received management fees, indicating continued revenue for the general partner despite the fund's losses.

Next Steps

• The document does not explicitly mention any future actions, events, or milestones beyond the regular monthly reporting cycle.

Key Dates

Recommendation

Keywords

Natural Gas Fund, UNG, Commodity Futures, Swap Contracts, Net Asset Value, SEC Filing, 8-K, Monthly Report, Commodity Exchange Act, Financial Performance, Investment Fund