Feb. 2 (Bloomberg) -- United States Natural Gas Fund, the largest exchange-traded fund for the fuel, is planning a one- for-four reverse split as units trade near a record low.
The net asset value of each unit will quadruple immediately after the split, which will occur following the market close on Feb. 21, the fund said in a statement late yesterday.
The $828 million fund, based in Alameda California, tracks natural-gas futures traded on the New York Mercantile Exchange. The fund’s unit price has dropped 21 percent this year while gas futures are down 20 percent. Gas is the worse-performing commodity on the Standard & Poor’s GSCI commodity index amid surging production from U.S. shale formations.
United States Natural Gas Fund units rose 6 cents, or 1.2 percent, to $5.11 on the New York Stock Exchange after closing at a record low $5.03 on Jan. 19. The ETF was introduced in April 2007.
Gas futures rose 0.2 cent to $2.384 per million British thermal units at 9:22 a.m. today in New York. The futures slid to $2.231 per million Btu on Jan. 23, the lowest intraday price since February 2002.
--Editors: Bill Banker, Dan Stets
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