oil and gas investment

Samson Resources Investor Recovery Options

January 9, 2016 | 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, bonds, and individual stocks.

The fall of Samson Resources Corp. (Samson Resources) has been called a Wall Street blooper by and editorial in the Wall Street Journal. As a background, private equity firm KKR (Stock Symbol NYSE:KKR) announced the purchase of oil and gas producer Samson Investment Company’s onshore US assets in a 2011 deal worth $7.2 billion. The acquisition occurred when oil prices were near $100 per barrel and small independent shale oil producers were being acquired with PE ratios often above 50 but little to no positive cash flow to show that would justify the valuations. Now four years later and Samson Resources, under KKR’s ownership, has filed for bankruptcy and is currently undergoing restructuring. The August 2015 bankruptcy announcement precipitated a drop in KKR’s stock price of nearly 40%.

Billions of dollars from investors pumped into Samson Resources evaporated with the chapter 11 bankruptcy filing. The company’s planned reorganization intends to wipe out the $7.2 billion invested by KKR and others in a 2011 leveraged buyout. The plan would also nearly erase Samson’s $2.25 billion in bond debt held by Blackstone Group. The continued failure of oil price recovery has reduced credit traders’ view of Samson Resource’s prospects for emerging from bankruptcy as a profitable company.

Investor Recovery Options for Southcross Energy LP (SXE) Losses

January 9, 2016 | by Staff Attorney

The investment attorneys with Gana Weinstein LLP continue to report on investor related losses in oil and gas and commodities related investments. Investors may have potential legal remedies due to unsuitable recommendations by their broker to invest in this speculative and volatile area. Southcross Energy LP (Ticker Symbol: SXE) is a Master Limited Partnership (MLP). Southcross Energy has declined 76.2% in value from its 52-week high and is trading at only $3.93 a share. Southcross Energy business focuses in the natural gas midstream sector.

About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. 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.

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 Mid-Con Energy Partners (MCEP) Losses

January 8, 2016 | by Staff Attorney

The investment attorneys with Gana Weinstein LLP continue to report on investor related losses in oil and gas and commodities related investments. Investors may have potential legal remedies due to unsuitable recommendations by their broker to invest in this speculative and volatile area. Mid-Con Energy Partners (Ticker Symbol: MCEP) is a Master Limited Partnership (MLP). Mid-Con Energy Partners has declined 80.6% in value from its 52-week high and is trading at only $1.4 a share. Mid-Con 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. Oil and gas and commodities related investments have been recommended by brokers under the assumption that commodities prices would continue to go up. However, due to a combination of forces including slack demand in China and the strengthening dollar, last summer the price of oil & gas plummeted and remains around $40 to this day. Some experts are saying that if production volume continues to be as high as it currently is and demand growth weak that the return to $100 a barrel is years away.

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 Vanguard Natural Resources LLC (VNR) Losses

January 7, 2016 | by Staff Attorney

The investment attorneys with Gana Weinstein LLP continue to report on investor related losses in oil and gas and commodities related investments. Investors may have potential legal remedies due to unsuitable recommendations by their broker to invest in this speculative and volatile area. Vanguard Natural Resources LLC (Ticker Symbol: VNR) is a Master Limited Partnership (MLP). Vanguard Natural Resources has declined 82% in value from its 52-week high and is trading at only $3.51 a share. Vanguard Natural Resources 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. Oil and gas and commodities related investments have been recommended by brokers under the assumption that commodities prices would continue to go up. However, due to a combination of forces including slack demand in China and the strengthening dollar, last summer the price of oil & gas plummeted and remains around $40 to this day. Some experts are saying that if production volume continues to be as high as it currently is and demand growth weak that the return to $100 a barrel is years away.

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 Memorial Production Partners (MEMP) Losses

January 6, 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. Memorial Production Partners (Ticker Symbol: MEMP) is a Master Limited Partnership (MLP). Memorial Production Partners has declined 83.5% in value from its 52-week high and is trading at only $3.08 a share. Memorial Production 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. 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 Foresight Energy LP (FELP) Losses

January 5, 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. Foresight Energy LP (Ticker Symbol: FELP) is a Master Limited Partnership (MLP). Foresight Energy has declined 84.5% in value from its 52-week high and is trading at only $2.9 a share. Foresight Energy business focuses in the coal 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 Natural Resource Partners (NRP) Losses

January 4, 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. Natural Resource Partners (Ticker Symbol: NRP) is a Master Limited Partnership (MLP). Natural Resource Partners has declined 86.7% in value from its 52-week high and is trading at only $1.34 a share. Natural Resource Partners business focuses in the coal 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 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.