Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

As Energy Markets Swoon, Many MLP Investors Suffer Huge Losses

Many income investors, particularly retirees, have been sold energy-related stocks in recent years based on the promise of attractive yields and steady income streams. Unfortunately, because of the recent tumult in the global energy market, many of these investors have also seen their portfolios decimated in only a few short weeks. One type of investment that has been particularly hit hard are Master Limited Partnerships, or MLPs.

On March 8, 2020, Saudi Arabia rocked oil markets by starting a price war with Russia and announcing unexpected price discounts of $6 to $8 per barrel to customers in Europe, Asia, and the US. The energy markets responded in kind, with oil prices dropping as much as 30 percent in a single day.

In the days that have followed, energy stocks, commodities, and other related investments have continued to fall substantially. Many MLPs in particular have sustained significant losses.

MLPs service the energy sector by providing pipelines, processing plants, storage, and refineries. Most MLPs earn money by charging oil-and-gas producers to transport or store their products. Brokers often sell MLPs to retirees as income-producing vehicles. The promise of attractive yields can be especially enticing to investors who are living on a fixed income. Too many brokers sell MLPs without adequately disclosing the numerous risks involved with these investments. Oftentimes, investors’ portfolios become over-concentrated in these products. When energy markets decline substantially, investors who are invested heavily in MLPs can be wiped out.

Since the beginning of this year, several commonly held MLPs have lost nearly all of their value. Genesis Energy L.P., which trades on the New York Stock Exchange, is down a stunning 83 percent year-to-date. Another well-known MLP, Chesapeake Energy Corporation, is down 79 percent. Other prominent MLPs suffering significant losses so far this year include Tortoise Energy (down 84 percent) and Kayne Anderson (down 68 percent).

Over the years, my law firm and I have successfully represented numerous investors who have been improperly sold MLPs and suffered significant losses. If you have questions or concerns about the MLPs in your investment account, please do not hesitate to contact us for a free consultation.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram