Articles Tagged with Energy XXI

shutterstock_29356093The investment attorneys at Gana Weinstein LLP continue to report on investor losses in oil and gas related investments. Our firm is investigating potential securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks. See Oil and Gas Investments – What Remedies Do Investors Have?; Overconcentrated in Oil and Gas Investments?; Oil and Gas Investments – Issuers Profit While Investors Take All the Risk; Atlas Energy Oil and Gas Investments: A Risky Proposition Part I; Gana Weinstein LLP Investigates Investor Losses Tied to Oil and Commodities Linked ETNs; Gana Weinstein LLP Investigates Investor Losses In Oil-Linked Structured Notes

According to a recent news article tracking oil and gas bankruptcies the pain in the industry is expected to continue. Nearly two dozen oil and gas companies have gone bankrupt in the past year including RAAM Global Energy Co., Endeavour International Corp. (ENDRQ), Quicksilver Resources Inc. (KWKAQ), Sabine Oil & Gas Corp. (SOGCQ), Hercules Offshore Inc. (HEROQ), Cal Dive International Inc. (CDVIQ), Dune Energy Inc. (DUNRQ), BPZ Resources Inc. (BPZRQ), ERG Intermediate Holdings LLC, American Eagle Energy Corp. (AMZGQ), Saratoga Resources Inc. (SARAQ), Milagro Oil & Gas Inc., and Miller Energy Resources Inc. (MILLQ). Canadian companies that entered bankruptcy include Verity Energy Ltd., Gasfrac Energy Services Inc., Southern Pacific Resource Corp., Laricina Energy Ltd., and Shoreline Energy Corp.

Not only have oil and gas companies gone bankrupt but companies that provide services to oil and gas companies have also been effected including A&B Valve and Piping Systems LLC, CCNG Energy Partners LP, and Boomerang Tube LLC.

shutterstock_20354401The law offices of Gana Weinstein LLP are currently investigating brokerage firms that placed investors in oil and gas related investments and who have suffered losses as a result.  Two companies that appear vulnerable include Linn Energy (Stock Symbol: LINE) and Energy XXI Ltd. (Stock Symbol: EXXI). While these companies have not yet declared bankruptcy their stock prices have fallen by well over 90% in the last year.

Many oil companies rely on borrowing lines of credit from banks in order to make investments in their business operations. Some of these lines of credit will come up for renewal on October 1. At which time, according to banks will look back at the last twelve months to the average price of oil which stood at about $45. This will cause the banks then to reduce the amount of money available to borrow in half compared to a year ago. Due to the reduced credit and access to capital it will become very difficult for companies like Linn Energy and Energy XXI to continue investing and drilling.

For instance Linn Energy and Energy XXI have already exhausted more than 75% of the credit available to them and may be forced in bankruptcy.

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