MLP Tag Archives — Page 5 of 6 — Securities Lawyers Blog

Investor Recovery Options for EV Energy Partners LP (EVEP) Losses

January 3, 2016 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to unsuitable recommendations to investor in oil and gas and commodities related investments. EV Energy Partners LP (Ticker Symbol: EVEP) is a Master Limited Partnership (MLP). EV Energy Partners has declined 88% in value from its 52-week high and is trading at only $2.64 a share. EV Energy Partners business focuses in the oil and gas production sector.

About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. Since January 2013, over 30 new MLPs have entered the market. During 2014, 11 oil and gas MLP offerings generated proceeds of $5.1 billion. In recent years these investments have boomed and profited from the low interest rate environment coupled with favorable oil prices. These investments are often pitched to investors as generating income from consistent cash flow streams. In addition, these investments may also be pitched as growth opportunities from companies looking to grow their businesses and increase their distributions.

However, brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.

Investor Recovery Options for LinnCO LLC (LNCO) Losses

December 31, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to unsuitable recommendations to investor in oil and gas and commodities related investments. LinnCO LLC (Ticker Symbol: LNCO) is a Master Limited Partnership (MLP). LinnCO has declined 91.7% in value from its 52-week high and is trading at only $1.21 a share. LinnCO business focuses in the oil and gas production sector.

About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. While MLPs have the same liquid trading characteristics as common stocks they are very different from typical stock investments. For instance, MLP’s are pass through investment vehicles, that is they pass through the income to the investor without any company level taxation. In addition, while there is no set payout level required to be adhered to by the company, unlike real estate investment trusts (REITs), MLP’s must derive 90% of their revenues from natural resources activities. However, most MLP’s do pay out most of their earnings through distributions causing company growth to come through the issuance of more debt and shares.

However, brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.

Investor Recovery Options for Hi-Crush Partners (HCLP) Losses

December 30, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to unsuitable recommendations to investor in oil and gas and commodities related investments. Hi-Crush Partners (Ticker Symbol: HCLP) is a Master Limited Partnership (MLP). Hi-Crush Partners has declined 85.6% in value from its 52-week high and is trading at only $5.81 a share. Hi-Crush Partners business focuses in the fracking sand production sector.

About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. MLPs contain significant risks. MLPs tend to fluctuate wildly with the price of oil and gas. For example in 2008, when oil plummeted in the wake of the great recession the AMZ MLP Index declined by 36.9% in a single year. In addition, MLPs often grow their distributions at an accelerated rate in their first two years in order to attract positive research reports from Wall Street analysts. The increased distributions and positive reports serve to drive the stock price higher even though the long term yield of these MLPs are speculative and unknown.

However, brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.

Investor Recovery Options for New Source Energy Partners (NSLP) Losses

December 29, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to unsuitable recommendations to investor in oil and gas and commodities related investments. New Source Energy Partners (Ticker Symbol: NSLP) is a Master Limited Partnership (MLP). New Source Energy Partners has declined 99.6% in value from its 52-week high and is trading at only $.04 a share. New Source Energy Partners business focuses in the oil and gas production sector.

About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources. These companies have sprung up from the need for new energy infrastructure for the production and delivery of natural gas and crude oil from shale reserves.

However, brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.

Investor Recovery Options for Emerge Energy LP (EMES) Losses

December 29, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to unsuitable recommendations to investor in oil and gas and commodities related investments. Emerge Energy LP (Ticker Symbol: EMES) is a Master Limited Partnership (MLP). Emerge Energy has declined 93% in value from its 52-week high and is trading at only $4.71 a share. Emerge Energy business focuses in the Fracking Sand sector.

About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources. These companies have sprung up from the need for new energy infrastructure for the production and delivery of natural gas and crude oil from shale reserves.

However, brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.

Investor Recovery Options for Breitburn Energy LP (BBEP) Losses

December 28, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to unsuitable recommendations to investor in oil and gas and commodities related investments. Breitburn Energy LP (Ticker Symbol: BBEP) is a Master Limited Partnership (MLP). Breitburn Energy has declined 91.1% in value from its 52-week high and is trading at only $.84 a share. Breitburn Energy business focuses in the oil and gas production sector.

About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. While MLPs have the same liquid trading characteristics as common stocks they are very different from typical stock investments. For instance, MLP’s are pass through investment vehicles, that is they pass through the income to the investor without any company level taxation. In addition, while there is no set payout level required to be adhered to by the company, unlike real estate investment trusts (REITs), MLP’s must derive 90% of their revenues from natural resources activities. However, most MLP’s do pay out most of their earnings through distributions causing company growth to come through the issuance of more debt and shares.

However, brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.

Atlas Energy Group Investors May Have Suitability Claims to Recover Investment Losses

December 22, 2015 | by Staff Attorney

Atlas Energy Group (NYSE:ATLS) is the general partner of Atlas Resource Partners (NYSE:ARP), a sponsor of oil and gas private placements and investments. The investment attorneys at Gana Weinstein LLP continue to report on investor losses in oil and gas related investments, like Atlas.

Atlas Energy Group and Atlas Resource Partners stock have both completely collapsed recently with both losing over 95% of their value over the past 2 years. Trying to unravel the business of the Atlas entities is nearly impossible. Even Atlas’ website fails to provide any meaningful understanding as to the business.

The website states that the business of Atlas Energy involves the ownership of: 1) 100% general partner interest and incentive distribution rights of Atlas Resource Partners, LP an exploration and production MLP; 2) 25 million ARP units, which includes ~21 million common units and 3.75 million Class C Preferred units in ARP; 3) 80% general partner interest and incentive distribution rights, as well as an 8% limited partner interest in Atlas Energy’s E&P Development Subsidiary; 4) 16% general partner interest and 12% limited partner interest in Lightfoot Capital Partners, which has a 40% limited partner interest in Arc Logistics Partners LP (NYSE: ARCX), an independent U.S.-based energy logistics service provider. Did this description clarify things?

Oil and Gas Private Placement Losses: Investigation of Reef Oil and Gas Companies

December 21, 2015 | by Staff Attorney

Reef Oil and Gas Companies located in Richardson, Texas, is a sponsor of oil and gas private placements and investments. The investment attorneys at Gana Weinstein LLP continue to report on investor losses in oil and gas related investments, like Reef Oil and Gas.

Investors often do not appreciate the risks when investing in oil and gas private placements. Even before the collapse of oil prices it was rare for investors to make money on oil deals. According to Reuters, of 34 deals Reef Oil and Gas has issued since 1996, only 12 have paid out more cash to investors than they initially contributed. Reuters also found that Reef sold an additional 31 smaller deals between 1996 and 2010 taking $146 million from investors and only paying out just $55 million.

If investments in oil and gas private placements rarely succeed during oil booms, then they will certainly fail under current market conditions. According to Bloomberg, many oil companies are in trouble as U.S. high-yield debt issued to junk-rated energy companies grew four-fold to $208 billion. Most of these companies are now struggling to stay afloat with oil prices at $45. Many of these companies relied upon high energy prices in order to sustain their operations. As reported by the Wall Street Journal the drop in oil and energy prices and the industry downturn has made it difficult for many companies to refinance their debts.

Oil and Gas Bankruptcy List Expands Along with Investor Losses

December 4, 2015 | by Staff Attorney

The investment attorneys at Gana Weinstein LLP continue to report on investor losses in oil and gas related investments. Our firm is investigating potential securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks. See Oil and Gas Investments – What Remedies Do Investors Have?; Overconcentrated in Oil and Gas Investments?; Oil and Gas Investments – Issuers Profit While Investors Take All the Risk; Atlas Energy Oil and Gas Investments: A Risky Proposition Part I; Gana Weinstein LLP Investigates Investor Losses Tied to Oil and Commodities Linked ETNs; Gana Weinstein LLP Investigates Investor Losses In Oil-Linked Structured Notes

According to a recent news article tracking oil and gas bankruptcies the pain in the industry is expected to continue. Nearly two dozen oil and gas companies have gone bankrupt in the past year including RAAM Global Energy Co., Endeavour International Corp. (ENDRQ), Quicksilver Resources Inc. (KWKAQ), Sabine Oil & Gas Corp. (SOGCQ), Hercules Offshore Inc. (HEROQ), Cal Dive International Inc. (CDVIQ), Dune Energy Inc. (DUNRQ), BPZ Resources Inc. (BPZRQ), ERG Intermediate Holdings LLC, American Eagle Energy Corp. (AMZGQ), Saratoga Resources Inc. (SARAQ), Milagro Oil & Gas Inc., and Miller Energy Resources Inc. (MILLQ). Canadian companies that entered bankruptcy include Verity Energy Ltd., Gasfrac Energy Services Inc., Southern Pacific Resource Corp., Laricina Energy Ltd., and Shoreline Energy Corp.

Not only have oil and gas companies gone bankrupt but companies that provide services to oil and gas companies have also been effected including A&B Valve and Piping Systems LLC, CCNG Energy Partners LP, and Boomerang Tube LLC.

Oil and Gas Investors In Halcon Resources Suffer Major Losses

November 5, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating brokerage firms that placed investors in oil and gas related investments and who have suffered losses as a result. One company under investigation is oil and gas producer Halcón Resources Corporation (Halcón) (Stock Symbol: HK). According to news sources, Halcón received a de-listing warning from the New York Stock Exchange amid company moves to reduce its debt.

Halcón is a Houston based exploration and production company that recently worked out a deal to reduce its long-term debt by $548 million through private negotiations. Earlier this year, Halcón had its borrowing base cut by more than 50 percent as the company teeters on the edge during the ongoing oil downturn. The stock’s price has fallen under $1 after trading at about $3 just one year ago.

Our offices continue to report on investment losses suffered by investors in energy and oil and gas related investments that brokerage firms have increasingly recommended to retail investors in recent years. According to Bloomberg, U.S. high-yield debt issued to junk-rated energy companies grew four-fold to $208 billion. Most of these companies are now struggling to stay afloat with oil prices at $45. Investors have been exposed to energy investments through a variety of investment vehicles including private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks.