What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 74 added, 54 removed, 380 unchanged (25% of the section changed)

29 unchanged sentences

USCF further believes that daily changes in the average prices of the Benchmark Futures Contracts have historically closely tracked the daily changes in spot price of natural gas.

USCF believes that the net effect of these relationships will be that the daily changes in the price of UNL’s shares on the NYSE Arca on a percentage basis will closely track the daily changes in the spot price of a MMBtu of natural gas on a percentage basis, plus interest earned on UNL’s collateral holdings, less UNL’s expenses.

USCF believes that the net effect of these relationships will be that the daily changes in the price of UNL’s shares on the NYSE Arca on a percentage basis will closely track the daily changes in the spot price of natural gas on a percentage basis, plus interest earned on UNL’s collateral holdings, less UNL’s expenses.

Regulatory Disclosure

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The foregoing accountability levels and position limits are subject to change.

As of March 31, 2026, UNL held 431 Natural Gas Futures NG contracts traded on the NYMEX and did not hold any ICE Natural Gas Futures contracts.

For the three months ended March 21, 2026, UNL did not exceed accountability levels imposed by the NYMEX and ICE Futures, however, the aggregated total of certain of the Related Public Funds did exceed the accountability levels.

As of June 30, 2026, UNL held 510 Natural Gas Futures NG contracts traded on the NYMEX and did not hold any ICE Natural Gas Futures contracts.

For the six months ended June 30, 2026, UNL did not exceed accountability levels imposed by the NYMEX and ICE Futures, however, the aggregated total of certain of the Related Public Funds did exceed the accountability levels.

No action was taken by NYMEX and UNL did not reduce the number of Futures Contracts held as a result.

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UNL “rolls” the near-month futures contracts in its portfolio when the near month futures contract is within two weeks of expiration.

For the three months ended March 31, 2026, UNL did not exceed any position limits imposed by the NYMEX and the ICE Futures.

For the six months ended June 30, 2026, UNL did not exceed any position limits imposed by the NYMEX and the ICE Futures.

Federal Position Limits

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Price Movements

Natural gas futures prices were volatile during the three months ended March 31, 2026.

The average price of the Benchmark Futures Contracts started the period at $3.723 per million British thermal shares (“MMBtu”).

Natural gas futures prices were volatile during the six months ended June 30, 2026.

The average price of the Benchmark Futures Contracts started the period at $3.723 per million British thermal unit (“MMBtu”).

The high of the period was on January 30, 2026 when the price of the Benchmark Futures Contracts reached $4.480 per MMBtu.

The low of the period was on January 9, 2026 when the price dropped to $3.304 per MMBtu.

The low of the period was on May 26, 2026 when the price dropped to $3.275 per MMBtu.

The period ended with the Benchmark Futures Contracts at $3.393 per MMBtu, a decrease of approximately (8.86)% over the period.

UNL’s per share NAV began the period at $7.34 and ended the period at $6.90 on March 31, 2026, a decrease of approximately (5.99)% over the period.

The Benchmark Futures Contracts prices listed above began with the February 2026 to January 2027 contracts and ended with the May 2026 to April 2027 contracts.

A decrease of approximately (3.28)% on the Benchmark Futures Contracts listed above is a hypothetical return only and would not actually be realized by an investor holding Futures Contracts.

UNL’s per share NAV began the period at $7.34 and ended the period at $6.42 on June 30, 2026, a decrease of approximately (12.53)% over the period.

The Benchmark Futures Contracts prices listed above began with the February 2026 to January 2027 contracts and ended with the August 2026 to July 2027 contracts.

The decrease of approximately (8.86)% on the Benchmark Futures Contracts listed above is a hypothetical return only and would not actually be realized by an investor holding Futures Contracts.

An investment in Futures Contracts would need to be rolled forward during the time period described in order to simulate such a result.

Furthermore, the change in the nominal price of these differing Futures Contracts, measured from the start of the period to the end of the period, does not represent the actual benchmark results that UNL seeks to track, which are more fully described below in the section titled “ Tracking UNL’s Benchmark .”

During the three months ended March 31, 2026, the natural gas futures market experienced states of both contango and backwardation.

During the six months ended June 30, 2026, the natural gas futures market experienced states of both contango and backwardation.

When the market is in a state of contango, the near month natural gas futures contract is lower than the price of the next month natural gas futures contract, or contracts further away from expiration.

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Results of Operations.

As of March 31, 2026, UNL had 2,250,000 shares outstanding.

As of June 30, 2026, UNL had 2,700,000 shares outstanding.

On April 26, 2022, the SEC declared effective the registration statement filed by UNL that registered an unlimited number of shares.

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More shares may have been issued by UNL than are outstanding due to the redemption of shares.

As of March 31, 2026, UNL had the following Authorized Participants:

As of June 30, 2026, UNL had the following Authorized Participants:

Citadel Securities LLC, Citigroup Global Markets, Inc., JP Morgan Securities Inc., Jane Street Capital LLC, Merrill Lynch Professional Clearing Corp., Morgan Stanley & Company Inc., RBC Capital Markets LLC, SG Americas Securities LLC and Virtu Americas LLC.

For the Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

For the Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

Six months ended

June 30, 2026

June 30, 2025

Average daily total net assets

Dividend and interest income earned on Treasuries, cash and/or cash equivalents

Annualized yield based on average daily total net assets

Management fee

Total fees and other expenses excluding management fees

Total commissions accrued to brokers

Total commissions as annualized percentage of average total net assets

Portfolio Expenses .

UNL’s expenses consist of investment management fees, brokerage fees and commissions, certain offering costs, licensing fees, registration fees, the fees and expenses of the independent directors of USCF and expenses relating to tax accounting and reporting requirements.

The management fee that UNL pays to USCF is calculated as a percentage of the total net assets of UNL.

The fee is accrued daily and paid monthly.

Average interest rates earned on short-term investments held by UNL, including cash, cash equivalents and Treasuries, were lower during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

As a result, the amount of income earned by UNL as a percentage of average daily total net assets was lower during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

To the degree that the aggregate yield is lower, the net expense ratio, inclusive of income, will be higher.

The increase in total fees and other expenses excluding management fees for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was due primarily to an increase in reporting costs and professional fees.

The increase in total commissions accrued to brokers for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, were due primarily to a higher number of Futures Contracts being held and traded.

For the Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Three months ended

March 31, 2026

March 31, 2025

June 30, 2026

June 30, 2025

Average daily total net assets

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The fee is accrued daily and paid monthly.

Average interest rates earned on short-term investments held by UNL, including cash, cash equivalents and Treasuries, were lower during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

As a result, the amount of income earned by UNL as a percentage of average daily total net assets was lower during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Average interest rates earned on short-term investments held by UNL, including cash, cash equivalents and Treasuries, were lower during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

As a result, the amount of income earned by UNL as a percentage of average daily total net assets was lower during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.

To the degree that the aggregate yield is lower, the net expense ratio, inclusive of income, will be higher.

The increase in total fees and other expenses excluding management fees for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was due primarily to an increase in reporting costs and professional fees.

The small decrease in total commissions accrued to brokers for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was due primarily to a similar number of Futures Contracts being held and traded.

The increase in total fees and other expenses excluding management fees for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due primarily to an increase in reporting costs and professional fees.

The increases in total commissions accrued to brokers for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was due primarily to a higher number of Futures Contracts being held and traded.

Tracking UNL’s Benchmark

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USCF believes that it is not practical to manage the portfolio to achieve such an investment goal when investing in Futures Contracts and Other Natural Gas-Related Investments.

For the 30-valuation days ended March 31, 2026, the average daily change in the average of the prices of the Benchmark Futures Contracts was (0.008)%, while the average daily change in the per share NAV of UNL over the same time period was 0.002%.

The average daily difference was 0.01% (or 1.0 basis points, where 1 basis point equals 1/100 of 1%), meaning that over this time period UNL’s NAV performed was within the plus or minus 10% range established as its benchmark tracking goal.

Since the commencement of the offering of UNL’s shares to the public on November 18, 2009 to March 31, 2026, the average daily change in the average price of the Benchmark Futures Contracts was (0.029)%, while the average daily change in the per share NAV of UNL over the same time period was (0.027)%.

For the 30-valuation days ended June 30, 2026, the average daily change in the average of the prices of the Benchmark Futures Contracts was (0.007)%, while the average daily change in the per share NAV of UNL over the same time period was (0.003)%.

The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%), meaning that over this time period UNL’s NAV performed within the plus or minus 10% range established as its benchmark tracking goal.

Since the commencement of the offering of UNL’s shares to the public on November 18, 2009 to June 30, 2026, the average daily change in the average price of the Benchmark Futures Contracts was (0.030)%, while the average daily change in the per share NAV of UNL over the same time period was (0.028)%.

The average daily difference was 0.002% (or 0.2 basis points, where 1 basis point equals 1/100 of 1%), meaning that over this time period UNL’s NAV performed within the plus or minus 10% range established as its benchmark tracking goal.

The following two charts demonstrate the correlation between the changes in UNL’s NAV and the changes in the Benchmark Futures Contracts.

The first chart below shows the daily movement of UNL’s per share NAV versus the daily movement of the Benchmark Futures Contracts for the 30 valuation day period ended March 31, 2026, the last trading day in March.

The second chart below shows the monthly total returns of UNL as compared to the monthly value of the Benchmark Futures Contracts for the five years ended March 31, 2026.

The first chart below shows the daily movement of UNL’s per share NAV versus the daily movement of the Benchmark Futures Contracts for the 30 valuation day period ended June 30, 2026, the last trading day in June.

The second chart below shows the monthly total returns of UNL as compared to the monthly value of the Benchmark Futures Contracts for the five years ended June 30, 2026.

*PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

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An alternative tracking measurement of the return performance of UNL versus the return of its Benchmark Futures Contracts can be calculated by comparing the actual return of UNL, measured by changes in its per share NAV, versus the expected changes in its per share NAV under the assumption that UNL’s returns had been exactly the same as the daily changes in the average of the prices of its Benchmark Futures Contracts.

For the three months ended March 31, 2026, the actual total return of UNL as measured by changes in its per share NAV was (5.99)%.

This is based on an initial per share NAV of $7.34 as of December 31, 2025 and an ending per share NAV as of March 31, 2026 of $6.90.

For the six months ended June 30, 2026, the actual total return of UNL as measured by changes in its per share NAV was (12.53)%.

This is based on an initial per share NAV of $7.34 as of December 31, 2025 and an ending per share NAV as of June 30, 2026 of $6.42.

During this time period, UNL made no distributions to its shareholders.

However, if UNL’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Futures Contracts, UNL would have had an estimated per share NAV of $6.87 as of March 31, 2026, for a total return over the relevant time period of (6.46)%.

However, if UNL’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Futures Contracts, UNL would have had an estimated per share NAV of $6.36 as of June 30, 2026, for a total return over the relevant time period of (13.34)%.

The difference between the actual per share NAV total return of UNL of (12.53)% and the expected total return based on the Benchmark Futures Contracts of (13.34)% was a difference over the time period of 0.81%, which is to say that UNL’s actual total return outperformed its benchmark by that percentage.

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The impact of these expenses, offset by interest and dividend income, and net of positive or negative execution, tends to cause daily changes in the per share NAV of UNL to track slightly lower or higher than daily changes in the price of the Benchmark Futures Contracts.

By comparison, for the three months ended March 31, 2025, the actual total return of UNL as measured by changes in its per share NAV was 26.35%.

This is based on an initial per share NAV of $8.12 as of December 31, 2024 and an ending per share NAV as of March 31, 2025 of $10.26.

By comparison, for the six months ended June 30, 2025, the actual total return of UNL as measured by changes in its per share NAV was7.51%.

This is based on an initial per share NAV of $8.12 as of December 31, 2024 and an ending per share NAV as of June 30, 2025 of $8.73.

During this time period, UNL made no distributions to its shareholders.

However, if UNL’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Futures Contracts, UNL would have had an estimated per share NAV of $10.19 as of March 31, 2025, for a total return over the relevant time period of 25.43%.

However, if UNL’s daily changes in its per share NAV had instead exactly tracked the changes in the daily total return of the Benchmark Futures Contracts, UNL would have had an estimated per share NAV of $8.62 as of June 30, 2025, for a total return over the relevant time period of 6.11%.

The difference between the actual per share NAV total return of UNL of 7.51% and the expected total return based on the Benchmark Futures Contracts of 6.11% was a difference over the time period of 1.40%, which is to say that UNL’s actual total return outperformed its benchmark by that percentage.

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First, UNL may buy or sell its holdings in the then current Benchmark Futures Contracts at a price other than the closing settlement price of that contract on the day during which UNL executes the trade.

In that case, UNL may pay a price that is higher, or lower, than the closing settlement price of the Benchmark Futures Contracts, which could cause the changes in the daily per share NAV of UNL to either be higher or lower to the daily changes in the average of the prices of the Benchmark Futures Contracts.

During the three months ended March 31, 2026, USCF attempted to minimize the effect of these transactions by seeking to execute its purchase or sale of the Benchmark Futures Contracts at, or as close as possible to, the end of the day settlement price.

In that case, UNL may pay a price that is higher, or lower, than the closing settlement price of the Benchmark Futures Contracts, which could cause the changes in the daily per share NAV of UNL to either be higher or lower relative to the daily changes in the average of the prices of the Benchmark Futures Contracts.

During the six months ended June 30, 2026, USCF attempted to minimize the effect of these transactions by seeking to execute its purchase or sale of the Benchmark Futures Contracts at, or as close as possible to, the end of the day settlement price.

However, it may not always be possible for UNL to obtain the settlement price and there is no assurance that failure to obtain the closing settlement price in the future will not adversely impact UNL’s attempt to track the Benchmark Futures Contracts.

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At the same time, UNL earns dividend and interest income on its cash, cash equivalents and Treasuries.

UNL is not required to distribute any portion of its income to its shareholders and did not make any distributions to shareholders during the three months ended March 31, 2026.

UNL is not required to distribute any portion of its income to its shareholders and did not make any distributions to shareholders during the six months ended June 30, 2026.

Interest payments, and any other income, were retained within the portfolio and added to UNL’s NAV.

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In that case, the error in tracking the Benchmark Futures Contracts could result in daily changes in the per share NAV of UNL that are either too high, or too low, relative to the daily changes in the average of the prices of the Benchmark Futures Contracts.

During the three months ended March 31, 2026, UNL did not hold any Other Natural Gas-Related Investments.

During the six months ended June 30, 2026, UNL did not hold any Other Natural Gas-Related Investments.

If UNL increases in size, and due to its obligations to comply with market conditions, regulatory limits, and risk mitigation measures imposed by its FCMs, UNL may invest in Other Natural Gas-Related Investments which may have the effect of increasing transaction related expenses and may result in increased tracking error.

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In this example, the value of an investment in the next month futures contract would tend to outperform the spot price of natural gas.

result, it would be possible for the new near month futures contract to rise 12% while the spot price of natural gas may have risen a lower amount, e.g., only 10%.

As a result, it would be possible for the new near month futures contract to rise 12% while the spot price of natural gas may have risen a lower amount, e.g., only 10%.

Similarly, the spot price of natural gas could have fallen 10% while the value of an investment in the futures contract might have fallen another amount, e.g., only 8%.

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The natural gas market spent time in both backwardation and contango during the last ten years.

The chart below shows the results from subtracting the average dollar price of the near 12-month contracts from the near month price for the 10-year period between March 31, 2016 and March 31, 2026.

The chart below shows the results from subtracting the average dollar price of the near 12-month contracts from the near month price for the 10-year period between June 30, 2016 and June 30, 2026.

Investors will note that the natural gas market spent time in both backwardation and contango.

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Natural Gas Market .

During the three months ended March 31, 2026, the average price of the Benchmark Natural Gas Futures Contracts traded in a range between $3.304 and $4.480.

The average price of the Benchmark Natural Gas Futures Contracts decreased (3.28)% from the end of 2025 through March 31, 2026, finishing the quarter at $3.601.

The number of rigs dedicated to natural gas production rose from 125 at the start of the year to 127 by the end of the quarter.

Natural Gas stored in the United States stood at 1.876 billion cubic feet as of March 31, 2026, about 3% below the five year average and 6% higher than the same time last year.

During the six months ended June 30, 2026, the average price of the Benchmark Natural Gas Futures Contracts traded in a range between $3.275 and $4.480.

The average price of the Benchmark Natural Gas Futures Contracts decreased (8.86)% from the end of 2025 through June 30, 2026, finishing the quarter at $3.393.

Natural Gas stored in the United States stood at 2,922 billion cubic feet as of June 30, 2026, about 0.8% lower than the same time last year and 6.4% above the five-year average level.

While both domestic demand and U.S.

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The increasing demand for LNG and the spate of new export facilities (both open and under construction) may lift prices, as could potential new demand for natural gas to power AI data centers.

However, any increased oil drilling in the United States, prompted by the global oil shortage in the wake of the Iran war, would increase byproduct natural gas production and could lower prices.

However, any increased oil drilling in the United States, prompted by geopolitical conflict in the Middle East or other disruptions to global oil supply, would increase byproduct natural gas production and could lower prices.

Natural gas prices in the United States have historically been driven by domestic supply and demand.

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energy industry to meet demand constrained natural gas prices over the previous decade and could lead to price constraints again in the future except during periods of extreme temperatures.

In recent years, natural gas exports have increased, including liquid natural gas (LNG) exported to Europe.

In recent years, natural gas exports have increased, including liquified natural gas (LNG) exported to Europe.

Rising international demand has had and will continue to have a growing impact on natural gas prices in the United States.

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The Russian invasion led the European Union to reduce its dependence on Russian fossil fuels and seek alternative imports.

Russia, in turn, slowed pipelines and cutoff supplies, reducing its natural gas supplied to Europe and then cutting off supply entirely at the start of 2025.

While some Russian flows may return to Europe once the war ends, some structural market changes may be permanent.

Russia, in turn, slowed pipelines and cutoff supplies, reducing its natural gas supplied to Europe.

Ukraine further restricted supply to Europe by halting transit of Russian gas to Europe through its pipeline network at the start of 2025 after a transit agreement expired.

The war increased the cost of natural gas globally, and while some Russian flows may return to Europe once the war ends, some structural market changes may be permanent.

Of course, many factors impact natural gas prices, and the impact of the Russia-Ukraine war must be balanced with other potential events, such as extreme weather, political unrest, attacks or threats of attack by terrorists, conflicts in the Middle East, or the potential for infectious disease outbreaks like COVID-19 and responses to such an outbreak.

3 unchanged sentences

The correlation is scaled between 1 and -1, where 1 indicates that the two investment options move up or down in price or value together, known as “positive correlation,” and -1 indicates that they move in completely opposite directions, known as “negative correlation.” A correlation of 0 would mean that the movements of the two are neither positively nor negatively correlated, known as “non-correlation.” That is, the investment options sometimes move up and down together and other times move in opposite directions.

For the ten-year time period between March 31, 2016 and March 31, 2026, the table below compares the monthly movements of natural gas prices versus the monthly movements of the prices of several other energy commodities, such as crude oil, diesel-heating oil, and unleaded gasoline, as well as several major non-commodity investment asset classes, such as large cap U.S.

For the ten-year time period between June 30, 2016 and June 30, 2026, the table below compares the monthly movements of natural gas prices versus the monthly movements of the prices of several other energy commodities, such as crude oil, diesel-heating oil, and unleaded gasoline, as well as several major non-commodity investment asset classes, such as large cap U.S.

equities, U.S.

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Income received from UNL’s investments in money market funds and Treasuries is paid to UNL.

During the three months ended March 31, 2026, UNL’s expenses did not exceed the income UNL earned and the cash earned from the sale of Creation Baskets and the redemption of Redemption Baskets.

During the three months ended March 31, 2026, UNL did not use other assets to pay expenses.

During the six months ended June 30, 2026, UNL’s expenses did not exceed the income UNL earned and the cash earned from the sale of Creation Baskets and the redemption of Redemption Baskets.

During the six months ended June 30, 2026, UNL did not use other assets to pay expenses.

To the extent income exceeds expenses, UNL’s NAV will be positively impacted.

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Such market conditions could prevent UNL from promptly liquidating its positions in Futures Contracts.

During the three months ended March 31, 2026, UNL

did not purchase or liquidate any of its positions while daily limits were in effect;

During the six months ended June 30, 2026, UNL did not purchase or liquidate any of its positions while daily limits were in effect;

however, UNL cannot predict whether such an event may occur in the future.

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Quantitative and Qualitative Disclosures About Market Risk” in this quarterly report on Form 10-Q for a discussion of OTC swaps.

As of March 31, 2026, UNL held cash deposits and short-term investments in the amount of $14,434,677 with the custodian and FCMs.

As of June 30, 2026, UNL held cash deposits and short-term investments in the amount of $18,956,490 with the custodian and FCMs.

Some or all of these amounts held by a custodian or an FCM, as applicable, may be subject to loss should UNL’s custodian or FCMs, as applicable, cease operations.

Off Balance Sheet Financing

As of March 31, 2026, UNL had no loan guarantee, credit support or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions relating to certain risks that service providers undertake in performing services which are in the best interests of UNL.

As of June 30, 2026, UNL had no loan guarantee, credit support or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions relating to certain risks that service providers undertake in performing services which are in the best interests of UNL.

While UNL’s exposure under these indemnification provisions cannot be estimated, they are not expected to have a material impact on UNL’s financial position.

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Either party may terminate these agreements earlier for certain reasons described in the agreements.

As of March 31, 2026, UNL’s portfolio consisted of 431 Natural Gas Futures NG contracts traded on the NYMEX.

As of March 31, 2026, UNL did not hold any Futures Contracts traded on the ICE Futures.

As of June 30, 2026, UNL’s portfolio consisted of 510 Natural Gas Futures NG contracts traded on the NYMEX.

As of June 30, 2026, UNL did not hold any Futures Contracts traded on the ICE Futures.

For a list of UNL’s current holdings, please see UNL’s website at www.uscfinvestments.com.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis