United States Natural Gas Fund, LP

What they do

UNG is a Delaware limited partnership that invests primarily in natural gas futures contracts traded on NYMEX, ICE Futures, and other exchanges, with the goal that its NAV's daily percentage change tracks the Benchmark Futures Contract (Henry Hub natural gas near-month future) within +/-10% over 30 days. It may also hold cash-settled options, forwards, cleared swaps, and OTC transactions as 'Other Natural Gas-Related Investments' to meet regulatory or liquidity needs. The general partner, United States Commodity Funds LLC, manages operations. Shares trade on NYSE Arca, and the fund earns interest on collateral holdings.

Revenue drivers

• Natural gas futures price movements — The fund's revenue is driven by daily changes in the price of the Benchmark Futures Contract on NYMEX; gains and losses on these futures are the primary source of net income.
• Interest on collateral — The fund holds cash and cash equivalents in collateral accounts, earning interest that adds to revenues; as of 2026-06-30, cash and equivalents were $287.6 million.
• Other natural gas-related investments — Returns from options, swaps, forwards, and OTC instruments based on natural gas and petroleum products contribute to revenue when held, though the fund primarily uses futures.

Recent performance

For fiscal year 2025, UNG reported net income of $34.2 million on revenue of $80.0 million, compared to net income of $65.1 million on revenue of $-197.4 million in 2024. Operating cash flow was $127.1 million in 2025 versus $47.5 million in 2024. Quarterly revenue for 2025 was volatile: $210.8 million (Q1), $-121.3 million (Q2), $-54.5 million (Q3), and $5.4 million (Q4). As of 2026-06-30, total assets were $421.7 million and total liabilities were $4.0 million.

Strategy

The fund's stated strategy is to maintain its investment objective by investing in futures contracts and other natural gas-related investments to track the Benchmark Futures Contract's daily price changes. It may use other investments to improve liquidity or pricing under certain market conditions. The general partner continuously monitors the portfolio to ensure the 30-day tracking corridor is met. No new strategic initiatives or capital projects are disclosed; the focus remains on operational execution of the commodity pool's mandate.

Risks

• Contango and backwardation — The natural gas futures curve can cause the fund's NAV to deviate from spot natural gas prices over time, potentially reducing returns for investors.
• Futures price volatility — Natural gas prices are highly volatile, as reflected in UNG's quarterly revenue swings (e.g., $210.8M gain in Q1 2025 vs. $121.3M loss in Q2 2025).
• Regulatory and counterparty risks — UNG relies on futures commission merchants and counterparties; regulatory changes or counterparty defaults could disrupt operations or cause losses.
• Tracking error — The fund's objective allows for up to +/-10% average daily deviation over 30 days, meaning performance may differ from the Benchmark Futures Contract over longer periods.

Outlook

Management does not provide forward-looking financial guidance. The outlook is tied to natural gas market conditions, including volatility and futures curve dynamics, as well as macroeconomic factors such as inflation, geopolitical events (Russia-Ukraine, Middle East), and market volatility. The fund will continue to manage its portfolio to meet the 30-day tracking objective, adjusting holdings as necessary to maintain liquidity and regulatory compliance.