Oil briefly dropped below $30 per barrel today. For those who drive SUVs, this may feel like a blessing. However, for those who are heavily invested in Oil and Gas, it can be frightening. People who invested in Oil and Gas at the recommendation of their financial advisor may be feeling anger and confusion, in addition to that fear – these investors rightfully want answers.
Aside from buying Oil and Gas futures directly, there are two frequently used products that investors use to invest in Oil and Gas – Master Limited Partnerships (MLPs) and Exchange Traded Funds (ETFs).
As we wrote here last year, investors lost millions as gas prices dropped at the beginning of 2015. As prices have continued to slide over the past 12 months, losses have compounded. This is terrible news for those whose financial advisors recommended that they invest in Oil and Gas, and then convinced them to stay in and “ride it out” on promises of a price recovery.
Unfortunately, MLPs can be very risky investments. Normally reserved for sophisticated and high-net-worth individuals, these can be completely inappropriate for your normal “mom and pop” investors. Unfortunately, some financial advisors sell them to their clients anyway, without fully disclosing the potentially devastating risks – as we highlighted here in 2014.
According to reports, a number of oil and gas MLPs have lost more than 60% in the past twelve months. These include:
- EMES Emerge Energy Services LP -88.88%
- LNCO LinnCo -83.00%
- LINE Linn Energy LLC -81.69%
- BBEP BreitBurn Energy Partners LP -80.39%
- HCLP Hi-Crush Partners LP -78.80%
- MCEP Mid-Con Energy Partners LP -76.07%
- EVEP EV Energy Partners LP -75.15%
- LGCY Legacy Reserves LP -74.32%
- MEMP Memorial Production Ptrs LP -73.48%
- VNR Vanguard Nat. Resources LLC -73.23%
- SDLP Seadrill Partners LLC -64.67%
- PAGP Plains GP Holdings -63.98%
- KMI Kinder Morgan Inc -62.68%
- ETE Energy Transfer Equity LP -61.01%
Investors who lost money in these investments at the recommendation of their financial advisor may be entitled to recover their losses.
It is the right of any and all investors who believe they may have suffered losses as a result of recommendations of their financial advisor to contact our offices to explore their legal rights and options. If you or a family member invested in Oil and Gas MLPs, contact the investment fraud lawyers at Malecki Law for a free consultation and case evaluation at (212) 943-1233.
Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel.