Master Limited Partnerships

Investors who are concentrated in Master Limited Partnership Investments (MLPs) likely saw alarming declines in their investments since the collapse in energy prices.

MLPs have been sold to investors in this low interest rate environment over the last few years as a means to generate safe income returns. There have been situations, however, where brokers have recommended that investors put too much of their principal in the MLP industry, or specific MLP issues, resulting in significant losses. These investors may be able to recover some of their losses, with Master Limited Partnerships having dropped so precipitously. Some examples of these MLPs include:

Emerge Energy Services LP
LinnCo
Linn Energy LLC
BreitBurn Energy Partners LP
Hi-Crush Partners LP
Mid-Con Energy Partners LP
EV Energy Partners LP
Legacy Reserves
Memorial Production Ptrs LP
Vanguard Nat. Resources LLC
Seadrill Partners LLC
Plains GP Holdings
Kinder Morgan Inc
Energy Transfer Equity LP
World Point Terminal LP
Markwest Energy Partners LP
Crestwood Equity Partners LP
Shell Midstream Partners LP
Rice Midstream Partners LP
Linn Energy Upstream LP
Legacy Reserves MLP
Alerian MLP ETF
Mid-Con Energy Partners
Enlink Midstream Partners LP
DCP Midstream Partners LP
Antero Midstream Partners LP
Enable Midstream Partners LP
Southcross Energy Partners LP
Cone Midstream Partners LP
Legacy Reserves MLP
TC Pipelines LP
American Midstream Partners
JP Energy Partners LP
Targa Resources Partners LP
Enbridge Energy Partners LP
Columbia Pipeline Partners
Williams Partners LP
Midcoast Energy Partners LP

MLP investments have taken off over the last few years, likely because of investor demand for income. MLPs can mostly be found in the oil and gas industry, whether they are companies that provide pipelines to transport oil or gas, or storage tanks to hold them, or both, among other things. MLPs have exploded as an investment for income investors over the last decade, but that does not mean that investment advisors may simply ignore the number one rule for investing, which is to make sure that an investor's portfolio is diversified, both within individual securities, and amongst different sectors of the economy.

Many of the risks associated with these types of MLP investments were never disclosed to investors. Such risks are now becoming evident, including possible negative tax consequences when the MLP goes into bankruptcy, or restructures debt. Such actions by an MLP could cause the MLP investor to have phantom income on their investment, requiring the payment of taxes on such income that is never received. This is potentially a concern now with highly distressed MLPs, including potentially Linn Energy. In addition to their share prices plummeting since the collapse in energy prices, many of these MLPs have also cut or eliminated distributions, the possibility of which investors in these products were never warned of. Failure to advise investors of such risks and failure to recommend suitable investments is negligence and a breach of fiduciary duty.

Contact Lawyer Jeffrey A. Feldman Today

If you have suffered significant financial losses in MLPs, attorney Jeffrey A. Feldman can analyze the actions of your broker or advisor and determine if there is a valid claim to recover your losses. Complete an online contact form for experienced legal representation in California or nationwide, or you may call Mr. Feldman at (415) 391-5555.

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