Beware of Energy MLPs
From the Desk of Jim Eccleston at Eccleston Law LLC:
Master Limited Partnerships (“MLPs”), which are often associated with the energy industry, present unique and sometimes extreme risks, only suitable for aggressive investors with a long-term time horizon. Let’s examine some key features and identify the larger players.
First, the share price of MLPs is usually tied to the price of the underlying resource. In the case of MLPs associated with the energy industry, the steep decline in the price of oil has resulted in declines in MLP share prices and losses to investors.
Investing in MLPs involves significant risk. That risk must be disclosed to investors prior to investing, and, secondly, the investment must be suitable for the investor. MLPs are complex products that should be fully understood by investors before investing. Additionally, MLPs can also include tax consequences that investors need to understand. MLPs often form the basis for claims against advisors to recover losses for failure to disclose risk and unsuitability.
Second, which MLPs are the larger players? The list includes the following:
- Alliance Resource Partners, LP
- Antero Midstream Corporation
- Black Stone Minerals, LP
- Blueknight Energy Partners, LP
- Boardwalk Pipeline Partners, LP
- BP Midstream Partners LP
- Buckeye Partners, LP
- Capital Product Partners LP
- Cheniere Energy Partners, LP
- Ciner Resources LP
- CNX Midstream Partners LP
- CorEnergy Infrastructure Trust, Inc.
- Crestwood Equity Partners LP
- CrossAmerica Partners LP
- CVR Partners, LP
- Cypress Energy Partners, LP
- DCP Midstream, LP
- Delek Logistics Partners, LP
- Dorchester Minerals, LP
- Enable Midstream Partners, LP
- Enbridge Inc.
- Energy Transfer LP
- EnLink Midstream, LLC
- Enterprise Products Partners LP
- Enviva Partners, LP
- EQM Midstream Partners, LP
- Ferrellgas Partners, LP
- GasLog Partners LP
- Genesis Energy, LP
- Global Partners LP
- Green Plains Partners LP
- Hannon Armstrong
- Hess Midstream Partners LP
- Holly Energy Partners, LP
- Kinder Morgan
- KNOT Offshore Partners LP
- Landmark Infrastructure Partners LP
- Magellan Midstream Partners, LP
- Martin Midstream Partners LP
- Merit SI
- MPLX LP
- Natural Resource Partners LP
- NextEra Energy Resources LLC
- NGL Energy Partners
- Noble Midstream Partners LP
- NuStar Energy LP
- Oasis Midstream Partners LP
- ONEOK, Inc.
- PBF Logistics LP
- Plains All American Pipeline, LP / Plains GP Holdings LP*
- Shell Midstream Partners, LP
- Sprague Resources LP
- Suburban Propane Partners, LP
- Summit Midstream Partners, LP
- Sunoco, LP
- Tallgrass Energy, LP
- TC PipeLines, LP
- Teekay LNG Partners LP
- Teekay Offshore Partners LP
- USA Compression Partners, LP
- USD Partners LP
- WaterBridge Resources, LLC
- Western Midstream Partners, LP
- Westlake Chemical Partners LP
- Williams Companies Inc. (The)
In today’s environment, investors must be wary of those investments.
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
Related Attorneys: James J. Eccleston
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