BOIL earnings analysis
What we found in BOIL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
BOIL’s Q2 2026 performance improved year over year, with the per-share NAV decline moderating to 13.7% from 45.7% and net loss narrowing to $24.6 million from $96.0 million. However, the Fund remained highly volatile, with a 38.7% first-half per-share NAV decline and $614.8 million of natural-gas futures notional exposure. The filing provides no numeric guidance and reports no material changes to previously disclosed risk factors; the principal ongoing risks are 2x daily leverage, compounding, commodity volatility, and possible substantial loss of capital.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Q2 loss moderated year over year
- BOIL’s per-share NAV declined 13.7% in Q2 2026 to $27.67, materially better than the 45.7% decline to $92.69 in Q2 2025. The benchmark fell 4.9% in Q2 2026 versus 22.2% in Q2 2025.
- Net loss narrowed substantially
- Net loss improved to $24.6 million in Q2 2026 from $96.0 million in Q2 2025, primarily because the decline in Henry Hub Natural Gas was smaller in 2026.
- First-half net income increased
- For the six months ended June 30, 2026, net income was $155.3 million versus $86.3 million in the prior-year period, driven by a $136.9 million change in net unrealized appreciation compared with a $127.0 million change in unrealized depreciation in 2025.
- Strong daily benchmark tracking
- The Fund maintained a daily correlation above 0.99 to 2x of its benchmark in both Q2 2026 and Q2 2025, indicating effective daily benchmark tracking before fees and expenses.
- Exposure remains highly geared
- Natural Gas futures notional exposure was $614.8 million as of June 30, 2026, compared with $669.5 million as of June 30, 2025, while the Fund generally targets $2.00 of benchmark exposure for each $1.00 of net assets.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Leveraged exposure amplified losses
- The Fund’s per-share NAV fell 38.7% for the six months ended June 30, 2026, compared with a 15.5% decline in the prior-year period, showing that leverage can amplify adverse commodity moves despite the improvement in Q2.
- Daily reset and compounding risk
- The filing states that the Fund seeks 2x daily performance and does not seek to achieve its objective over periods longer than one day. Its example shows a benchmark up 10% and then down 10% producing a theoretical two-times Fund return of negative 4%, versus a benchmark return of negative 1%.
- Large natural-gas futures exposure
- As of June 30, 2026, the Fund held 19,249 long Natural Gas futures contracts expiring September 2026 with a notional amount of $614,813,060, exposing shareholders to substantial commodity-price and futures-market risk.
- Capital-loss risk remains unchanged
- The filing states there were no other material changes to the risk factors from the December 31, 2025 Form 10-K, but it also states that losses could reach all or substantially all of investors’ capital; the Fund’s Q2 2026 NAV declined 18.8%.
- Meaningful shareholder redemptions
- Shareholder redemptions reduced shares outstanding from 11,811,524 at March 31, 2026 to 11,111,144 at June 30, 2026, a 5.9% decline, which contributed to the Fund’s lower NAV.
- Fees and trading costs increased
- The Fund incurred $948,756 of management fees and $439,496 of brokerage commissions in Q2 2026, compared with $548,526 and $288,858, respectively, in Q2 2025, creating an additional drag on leveraged returns.
What they said about what is next.
No quantitative revenue or EPS guidance was provided. The filing states that future returns cannot be estimated by simply multiplying the benchmark return by 2x and that the Fund does not seek its objective over periods longer than one day.
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing BOIL makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever