UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported): July 24,
2009
UNITED
STATES NATURAL GAS FUND, LP
(Exact
name of registrant as specified in its charter)
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Delaware
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001-33096
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20-5576760
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
No.)
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1320
Harbor Bay Parkway, Suite 145
Alameda,
California 94502
(Address
of principal executive offices) (Zip Code)
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Registrant's
telephone
number,
including area
code
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(510)
522-3336
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Not
Applicable
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction
A.2. below):
o Written
communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item
8.01. Other Events
In recent
months, a number of published reports have attempted to make the case that last
year’s run-up in natural gas prices and their subsequent fall lasting into this
year, were the result of the investments made in the natural gas futures market
by large, un-levered and passive index funds. Many of these reports cited the
United States Natural Gas Fund, LP (“UNG” or the “Fund”) as an example of such a
fund whose buying and selling activities were alleged to be causing unusually
wide swings in natural gas prices.
UNG’s
management believes these reports significantly mischaracterize UNG’s
impact on the market price of natural gas and is providing factual information
to rebut those reports. UNG in no way intends that the information included in
this Form 8-K be considered an “offer” of its units.
Many of
the articles published on this topic have stated that UNG’s large size, and the
fact that it was the first publicly-offered, exchange traded vehicle that
offered exposure to natural gas futures, made it a key factor in the rapid rise
of natural gas prices in 2008. Furthermore, several articles continue to make
such claims for market activity continuing into 2009. However, the management of
UNG believes that readily available information from UNG’s website and other
widely available financial news and data sources indicate that many or most of
these claims lack merit.
The chart
below compares the price of the NYMEX front month natural gas contract (“NG”) to
the actual size of UNG’s natural gas futures contracts holdings. The time period
covered by this chart runs from UNG’s inception date, April 17, 2007, to June
30, 2009. The NG price, shown on the left hand axis, is in dollars per Million
BTU (“mbtu”). UNG’s natural gas futures contract holdings, shown on the right
hand axis, are in 10,000 mbtu contract equivalents.
The data
shows that during the run-up in natural gas prices during the time period of
September 2007 and $5.50 mbtu, to July 2008, and roughly $13.50 mbtu, UNG’s
holdings in natural gas futures contracts were essentially flat. UNG owned 8,093
contracts on September 7, 2007. The Fund owned 8,587 contracts on July 3,
2008. UNG’s
management does not believe that this data supports the notion that UNG's
investing activities could have been a driving force behind the increase in
natural gas prices over this time period.
More
recently, UNG has
seen a large increase in the number of natural gas contracts owned by it.
However, this increase occurred in 2009 during a period of time in which
natural gas prices have trended lower, not higher. UNG’s management believes the
data presented in the chart does not support the theory that UNG’s purchasing of
natural gas futures contracts has driven prices significantly higher because
natural gas prices did not rise significantly higher during the same time
period.
Source:
United States Natural Gas Fund, LP
In sum,
management strongly believes that the activities of UNG have not caused the
extreme swings in the price of natural gas as alleged in some published articles
during the above-noted time frame. However, due to the nature of these unfounded
claims about UNG and its investing practices, management has a legitimate
concern that the activities of UNG could be negatively impacted, to the
detriment of its thousands of unitholders, unless such claims are publicly
refuted.
UNG’s
management is of the view that the best source of information regarding its
investment objective and the risks associated with an investment in UNG is its
most current prospectus and the periodic reports it files with its regulators,
including the Securities and Exchange Commission (“SEC”). Copies of the most
current version of the foregoing can be found at UNG’s website, www.unitedstatesnaturalgasfund.com,
or through the SEC on its website, www.sec.gov. Copies
are also available on request from the UNG’s general partner, United States
Commodity Funds LLC.
Certain
matters discussed in this current report on Form 8-K, including any
statements that are predictive in nature or concern future market and economic
conditions, our future performance, or our future actions and their
expected results are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are
based on current expectations and projections about future events and are not
guarantees of future performance. We do not have a specific policy or intent of
updating or revising forward-looking statements. Actual events and results may
differ materially from those expressed or forecasted in forward-looking
statements due to a number of factors. Please see our periodic reports and other
filings with the SEC for a further discussion of these and other risks and
uncertainties applicable to our business. The forward-looking statements
and projections contained in this current report on Form 8-K are excluded from
the safe harbor protection provided by Section 21E of the Securities
Exchange Act of 1934.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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UNITED
STATES NATURAL GAS FUND, LP
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By:
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United
States Commodity Funds LLC, its general partner
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Date: July
24, 2009
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By:
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/s/ Howard
Mah
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Name:
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Howard
Mah
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Title:
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Chief
Financial Officer
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