DBOMEDIUM SIGNALFINANCIAL10-K

DBO's cash position declined substantially by over 50% while the fund maintained its crude oil futures investment strategy with some operational refinements.

The significant reduction in cash reserves alongside continued share buybacks suggests active capital management, though investors should monitor whether the lower cash levels impact the fund's operational flexibility. The changes to index methodology language indicate efforts to optimize roll yield performance in volatile oil futures markets.

Comparing 2026-03-02 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

DBO's financial position showed mixed results with cash and equivalents declining substantially from $68.6M to $32.2M, while the fund continued returning capital through $7.1M in dividends and $124.4M in share buybacks. Operating performance weakened with operating income falling to $7.0M and net interest income declining to $8.5M, reflecting the challenging environment for commodity-focused ETFs. The overall picture suggests active capital management amid operational headwinds.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-53.1%
$68.6M$32.2M

Cash declined 53.1% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Interest Expense
P&L
+39%
$74K$103K

Interest expense surged 39% — significant debt increase or rising rates materially impacting earnings.

Operating Income
P&L
-31.3%
$10.2M$7.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Dividends Paid
Cash Flow
-30.5%
$10.2M$7.1M

Dividends cut 30.5% — significant signal of cash flow stress or capital reallocation priorities.

Net Interest Income
P&L
-28.8%
$11.9M$8.5M

Net interest income declined 28.8% — margin compression from rate changes or funding cost increases.

Share Buybacks
Cash Flow
+13.1%
$110.0M$124.4M

Share repurchases increased 13.1% — management returning capital, signals confidence in intrinsic value.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-02-26
ADDED
Treasury Bill, 4.400% due March 6, 2025 2024-12-31 0001383058 us-gaap:USTreasurySecuritiesMember 2024-12-31 0001383058 us-gaap:LimitedPartnerMember 2024-12-31 0001383058 srt:AffiliatedEntityMember 2024-12-31 dbo:CreationUnit iso4217:USD xbrli:shares xbrli:pure xbrli:shares dbo:Contract dbo:Shareseries iso4217:USD UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C.
The Index is intended to reflect the economic performance of investing in futures contracts on the crude oil sector.
Effective November 10, 2025, the single Index Commodity comprising the Index is Light, Sweet Crude Oil (WTI) (the Index Commodity ).
The Index is intended to reflect the economic performance of investing in futures contracts on the crude oil sector.
and European exchanges are eligible for inclusion in the Index.
The Index Sponsor selects the futures contract with the highest implied roll yield, aiming to maximize the potential roll benefits in backwardated markets and minimize the loss from rolling in contango markets.
If two futures contracts have the same implied roll yield, the futures contract with the minimum number of months to the exchange expiry month is selected.
Implied roll yield is calculated by dividing the closing price of the commodity futures contract which is to be notionally exited by the closing price of the relevant futures contract, raised to the power of one divided by the fraction of the year between the base futures contract and the relevant eligible futures contract, minus one.
On the first Index business day of each month, the futures contract currently included in the Index is tested for continued inclusion in the Index based on its delivery month.
If the delivery month for the contract is the next calendar month, a new contract is selected.
REMOVED
10-K false FY 0001383058 http://fasb.org/us-gaap/2024#USTreasuryBillSecuritiesMember http://fasb.org/us-gaap/2024#USTreasuryBillSecuritiesMember 2025-02-28 2024-12-31 http://fasb.org/us-gaap/2024#USTreasuryAndGovernmentMember http://fasb.org/us-gaap/2024#USTreasuryAndGovernmentMember http://fasb.org/us-gaap/2024#USTreasuryAndGovernmentMember two days 0001383058 United States Treasury Obligations, U.S.
The Index is intended to reflect the change in market value of the crude oil sector.
The single commodity comprising the Index is Light Sweet Crude Oil (WTI) (the Index Commodity ).
The notional amount of the Index Commodity included in the Index is intended to reflect the changes in market value of the Index Commodity within the Index.
The closing level of the Index is calculated on each business day by the Index Sponsor based on the closing price of the futures contracts for the Index Commodity and the notional amount of such Index Commodity.
The composition of the Index may be adjusted in the event that the Index Sponsor is not able to calculate the closing price of the Index Commodity.
The Index takes the impact of implied roll yield into consideration by selecting, as the replacement for an expiring futures contract, the futures contract with a delivery month within the next thirteen months that generates the most favorable implied roll yield under the current market conditions.
On average, total charges paid to the Commodity Broker were less than $6.00, $6.00 and $6.00 per round-turn trade 1 for the years ended December 31, 2024, 2023 and 2022, respectively.
Investors should consider carefully all of the risks described below, together with the other information contained in this Report and the Fund s prospectus dated August 26, 2024 (the Prospectus ), before making a decision to invest in Shares.
As a result of increasingly interconnected global economies and financial markets, armed conflict between countries or in a geographic region, for example the current conflicts between Russia and Ukraine in Europe and Hamas and Israel in the Middle East, may impact the Fund's investments.
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