Securities Lawyers Blog
The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to unsuitable recommendations to investor in oil and gas and commodities related investments. EV Energy Partners LP (Ticker Symbol: EVEP) is a Master Limited Partnership (MLP). EV Energy Partners has declined 88% in value from its 52-week high and is trading at only $2.64 a share. EV Energy Partners business focuses in the oil and gas production sector.
About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. Since January 2013, over 30 new MLPs have entered the market. During 2014, 11 oil and gas MLP offerings generated proceeds of $5.1 billion. In recent years these investments have boomed and profited from the low interest rate environment coupled with favorable oil prices. These investments are often pitched to investors as generating income from consistent cash flow streams. In addition, these investments may also be pitched as growth opportunities from companies looking to grow their businesses and increase their distributions.
However, brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.