The national securities law firm, Levin Law, P.A. (“Levin Law”) is investigating brokerage firms that recommended and sold Master Limited Partnership (“MLPs”) to their customers. If your investment advisor, stockbroker or other financial professional recommended and sold any MLPs to you and you suffered significant losses, please contact us at (305) 402-9050 or email@example.com. Recently, investors have suffered catastrophic losses from their MLP investments, particularly when their advisors have recommended that they place a significant percentage of their portfolio assets in MLPs.
What is a Master Limited Partnership?
The MLP is a hybrid legal structure that combines elements of a partnership with elements of a corporation. An MLP issues units, which are like shares. Such units are often traded on public stock exchanges, which provides liquidity to investors. Unitholders are allocated a share of the MLP’s income, deductions, losses, and credits.
MLPs are complex investment vehicles that are difficult for most retails investors to understand.
MLPs are required to derive 90% of their revenues from the natural resources industry or real estate that is subject to “qualified income.” Thus, the performance of MLPs is tied almost entirely to the energy and real estate sectors. As such, MLPs are subject to the risks inherent in those sectors. Like other energy and real estate investments, MLPs are subject to the change in market conditions of those sectors. MLPs can be quite risky, but unfortunately many financial advisors inform their customers that the energy MLPs are “safe” or conservative. When making recommendations to purchase securities, including MLPs, financial advisors have the duty to fully explain all materials risks of such investments. Many financial advisors, however, fail to disclose the true risks inherent in MLPs, resulting in investors thinking that their MLP investments were “safe.” Such investors were justifiably surprised when their so-called safe investments dropped significantly during the most recent market decline, resulting in part due to the spread of the COVID-19.
MLPs typically are leveraged instruments. Thus, if interest rates increase or banks decrease their amount of lending, then MLP values may decrease. Further, many advisors highlight only the higher yields generated from MLPs and do not fully and accurately disclose the true risks of MLPs.
Financial Professionals Received High Commissions From Selling MLPs
Financial institutions selling MLPs – such as broker-dealers, investment advisors, and banks – typically are compensated well for selling MLPs. As a general matter, MLPs are expensive to the investor because of high commissions paid to the brokerage firm, high management fees, and other fees and compensation paid to the general partners and the selling broker-dealer.
MLPs are subject to interest rate risk. Thus, if interest rates increase or banks decrease their amount of lending, then MLP values may decrease. Further, many advisors highlight only the higher yields generated from MLPs and do not fully and accurately disclose the true risks of MLPs.
Many MLP and Energy Company Stock Prices Have Dropped Significantly During the Coronavirus Pandemic
During the rapid spread of COVID-19 and due to the decline in oil prices, many MLPs have dropped significantly in value. Some of the MLPs and energy companies that have suffered meaningful declines are as follows, some dropping as much as 90% in share/unit price in the last few months.
According to www.dividend.com, the following is a list of all current publicly-traded Master Limited Partnerships:
WES Western Gas Partners L.P.
AM Antero Midstream Partners LP
ENBL Enable Midstream Partners LP
USDP USD Partners LP
ARLP Alliance Resource Partners L.P.
GEL Genesis Energy L.P.
CEQP Crestwood Equity Partners LP
DKL Delek Logistics Partners LP
GPP Green Plains Partners LP
EQM EQT Midstream Partners LP
PBFX PBF Logistics LP
CEN Center Coast MLP & Infrastructure
USAC Usa Compression Partners LP
HMLP Hoegh LNG Partners LP
NS NuStar Energy L.P.
NMM Navios Maritime Partners L.P.
MMLP Martin Midstream Partners L.P.
HEP Holly Energy Partners L.P.
KRP Kimbell Royalty Partners, LP
MPLX MPLX LP
VNOM Viper Energy Partners LP
ET Energy Transfer LP
SRLP Sprague Resources LP
GLP Global Partners L.P.
SUN Sunoco LP
CAPL Crossamerica Partners LP
SPH Suburban Propane L.P.
BSM Black Stone Minerals LP
CPLP Capital Product Partners L.P.
SHLX Shell Midstream Partners, L.P.
KNOP KNOT Offshore Partners LP
CNXM CNX Midstream Partners LP
FUN Cedar Fair L.P.
BKEP Blueknight Energy Partners L.P.
CELP Cypress Energy Partners LP
IEP Icahn Enterprises L.P.
BKEPP Blueknight Energy Partners L.P.
AB AllianceBernstein Holding L.P.
NSS NuStar Logistics, L.P
HESM Hess Midstream Partners LP
BPMP BP Midstream Partners LP
NRP National Resource Partners L.P.
OKE ONEOK Inc.
PAA Plains All American Pipeline L.P.
DMLP Dorchester Minerals, L.P.
BPY Brookfield Property Partners LP
PAGP Plains GP Holdings LP
WLKP Westlake Chemical Partners LP
LMRK Landmark Infrastructure Partners LP
CINR OCI Resources LP
MMP Magellan Midstream Partners L.P.
EPD Enterprise Products Partners L.P.
TCP TC Pipelines L.P.
PSXP Phillips 66 Partners LP
EVA Enviva Partners, LP
CQP Cheniere Energy Partners L.P.
ATAX America First Tax Exempt Investors L P Units Ben Int
EFC Ellington Financial LLC
TGP Teekay LNG Partners L.P.
SGU Star Gas Partners L.P. Unit LP Int
BIP Brookfield Infrastructure Partners L.P.
NEP NextEra Energy Partners, LP
BX Blackstone Group L.P.
FISK, OGCP, and ESBA Empire State Realty
BEP Brookfield Renewable Energy Partners LP Partnership Units (Bermuda)
CCLP CSI Compressco LP
ARES Ares Management LP
NEN New England Realty Associates L.P. Depositary Rcpt
BBU Brookfield Business Partners L.P.
ATLS Atlas Energy L.P.
DLNG Dynagas LNG Partners LP
CNNX CONE Midstream Partners LP
CNXC CNX Coal Resources LP
AMGP Antero Midstream GP LP
ETE Energy Transfer Equity L.P.
RGP Regency Energy Partners L.P.
NSLP New Source Energy Partners LP
NBLX Noble Midstream Partners LP
SPP Sanchez Production Partners LP
RGP Regency Energy Partners L.P.
WGP Western Gas Equity Partners LP
STON StoneMor Partners L.P.
TEGP Tallgrass Energy GP, LP
CLMT Calumet Specialty Products L.P.
ARP Atlas Resource Partners, L.P.
DPM DCP Midstream Partners L.P.
NZTCY Telecom Corporation of New Zealand Limited
NRGY Inergy L.P.
MCEP Mid-Con Energy Partners LP
SNMP Sanchez Midstream Partners LP
GSJK Compressco Partners LP
OZM Och-Ziff Capital Management
OMP Oasis Midstream Partners LP
OXF Oxford Resource Partners L.P.
SPLP Steel Partners Holdings L.P.
UAN CVR Partners L.P.
DCP DCP Midstream, LP
DSE Duff & Phelps Select Energy MLP
GMLP Golar LNG Partners LP
SMLP Summit Midstream Partners LP
ENLC EnLink Midstream LLC
NGL NGL Energy Partners L.P.
GLOP GasLog Partners LP
Levin Law is a premier securities and class action law firm with significant experience. Brian Levin, Levin Law’s founding attorney, has helped recover around $100,000,000 through securities arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.
If you have suffered losses in any Master Limited Partnership, please contact Levin Law managing partner, Brian Levin, at (305) 402-9050, firstname.lastname@example.org, or visit Levin Law’s website, www.levinlawpa.com. Levin Law accepts most cases on a contingency-fee basis, meaning that clients are not obligated to pay Levin Law’s attorney fees unless money is recovered for the investor.