Bloomberg News

U.S. Natural Gas Fund Discount at 0.33% on Feb. 24

February 26, 2012

The U.S. Natural Gas Fund, the largest exchange-traded fund in the fuel, closed at a discount of 0.33 percent on Feb. 24, according to figures on the fund’s website. A discount means that the closing price of the shares is lower than the value of its underlying holdings in the fuel.

Natural gas for April delivery fell 6.6 cents, or 2.4 percent, to $2.695 per million British thermal units on the New York Mercantile Exchange on Feb. 24.

================================================================================
                        Feb. 24  Feb. 23  Feb. 22  Feb. 21  Feb. 17
                           2012     2012     2012     2012     2012
================================================================================
                          ----------------------Per Share----------------------
Premium/discount         -0.33%   -0.27%    0.50%    0.36%    0.18%
Net Asset Value          $21.42   $21.94   $22.06    $5.51    $5.61
Closing price            $21.35   $21.88   $22.17    $5.53    $5.62
                          ----------------Quantity of Fund Holdings-------------
NYMEX NG April 2012      11,357   11,357   11,357   11,357   11,635
================================================================================
                        Feb. 24  Feb. 23  Feb. 22  Feb. 21  Feb. 17
                           2012     2012     2012     2012     2012
================================================================================

NYMEX NN April 2012      17,952   17,952   17,952   17,952   17,952
ICE LOT Swap April 2012  44,568   44,568   44,568   44,568   44,568
================================================================================

NOTE: To sidestep position limits imposed by the Commodity Futures Trading Commission, the fund buys bilateral, over-the-counter swaps that are not subject to exchange limits. These swaps are fully collateralized with investment grade counterparties.

The fund aims to track the price of natural gas delivered at Henry Hub in Erath, Louisiana, the delivery point for the future traded on the New York Mercantile Exchange. The ETF buys the near-month contract, then rolls forward by selling it before expiration and buying the following month.

SOURCE: United States Natural Gas Fund

To contact the reporter on this story: Daniel Petrie in Sydney at dpetrie5@bloomberg.net

To contact the editor responsible for this story: Alex Tanzi at atanzi@bloomberg.net


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