master limited partnerships

Oil and Gas Investors In Halcon Resources Suffer Major Losses

November 5, 2015 | by Staff Attorney

The 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. One company under investigation is oil and gas producer Halcón Resources Corporation (Halcón) (Stock Symbol: HK). According to news sources, Halcón received a de-listing warning from the New York Stock Exchange amid company moves to reduce its debt.

Halcón is a Houston based exploration and production company that recently worked out a deal to reduce its long-term debt by $548 million through private negotiations. Earlier this year, Halcón had its borrowing base cut by more than 50 percent as the company teeters on the edge during the ongoing oil downturn. The stock’s price has fallen under $1 after trading at about $3 just one year ago.

Our offices continue to report on investment losses suffered by investors in energy and oil and gas related investments that brokerage firms have increasingly recommended to retail investors in recent years. According to Bloomberg, U.S. high-yield debt issued to junk-rated energy companies grew four-fold to $208 billion. Most of these companies are now struggling to stay afloat with oil prices at $45. Investors have been exposed to energy investments through a variety of investment vehicles including private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks.

Oil and Gas Investment Goodrich Petroleum Corp. Losses Exceed 90% In Last Year

November 4, 2015 | by Staff Attorney

The 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. One company under investigation is oil and gas producer Goodrich Petroleum Corp., (Goodrich) (Stock Symbol: GDP). Goodrich has gone through a number of negative events such as a credit downgrade, the company’s CFO resigned within a year of his predecessor, the chairman of the board announced his retirement for health reasons, and even Henry Goodrich, the company’s founder, has died. According to Bloomberg the company is laden with debt and investors are jockeying for position in a potential bankruptcy.

Recently, investors holding $158.2 million of Goodrich’s debt agreed to take 47 cents on the dollar in exchange for stock warrants for some note holders and a lien on Goodrich’s oil acreage. The purpose of the exchange was to place them in a better position if Goodrich liquidates its assets in bankruptcy.

Our offices continue to report on investment losses suffered by investors in energy and oil and gas related investments that brokerage firms have increasingly recommended to retail investors in recent years. According to Bloomberg, U.S. high-yield debt issued to junk-rated energy companies grew four-fold to $208 billion. Most of these companies are now struggling to stay afloat with oil prices at $45. Investors have been exposed to energy investments through a variety of investment vehicles including private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks.

Magnum Hunter Resources Investors Lose 90% in Last Year

November 4, 2015 | by Staff Attorney

The 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. One company under investigation is Oil and gas producer Magnum Hunter Resources Corp, (Magnum Hunter) (Stock Symbol: MHR). Magnum Hunter is mainly a natural gas producer that operates in the Marcellus and Utica shale fields located in Ohio and West Virginia. According to news sources the company is laden with debt and has been forced to cancel its dividends as well as hire a financial adviser to explore strategic alternatives to keep the company afloat amid the oil downturn.

The company has stated that it is actively working to repair its balance sheet by exploring assets sales among other measures. Magnum Hunter posted a net loss in the second quarter of $30.5 million on revenue of $39.9 million. The companies total liabilities were $1.1 billion.

Our offices continue to report on investment losses suffered by investors in energy and oil and gas related investments that brokerage firms have increasingly recommended to retail investors in recent years. Investors have been exposed to energy investments through a variety of investment vehicles including private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks.

SEC Brings Action Against Miller Energy Resources on the Heals of Bankruptcy

September 8, 2015 | by Staff Attorney

The 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. One company under investigation is Miller Energy Resources Inc. (Stock Symbol: MILL). According to a Wall Street Journal article, creditors of Miller’s Cook Inlet Energy LLC subsidiary filed an involuntary chapter 11 petition claiming about $2.8 million in debts owed.

The involuntary bankruptcy filing comes shortly after the Securities and Exchange Commission (SEC) accused the company of a valuation related accounting fraud. The SEC alleged that Miller Energy acquired oil and gas properties in Alaska in late 2009 for $2.5 million and then allegedly overstated the value of its holdings by more than $400 million in order to boost the company’s net income and assets.

The SEC’s complaint charged Miller Energy, its former chief financial officer and its current chief operating officer for allegedly inflating values of oil and gas properties. The alleged scheme had the effect of taking Miller Energy from a penny stock into a security that was listed on the New York Stock Exchange reaching a $9 per share high in 2013. Trading in Miller Energy was suspended at the end of July. Miller Energy stated that the SEC’s civil action is related to alleged valuation errors from five years ago and the action is not warranted by the facts or the law.

Gana LLP Investigates Investor Losses in Linn Energy and Energy XXI

September 8, 2015 | by Staff Attorney

The 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 TheStreet.com 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.

Cushing Mutual Funds Investor Update

August 4, 2015 | by Staff Attorney

The attorneys at Gana Weinstein LLP have been following the collapse of a series of mutual funds managed by Cushing Asset Management. The funds involved include:

Cushing Closed-End Funds

Cushing Renaissance Fund

Gana LLP Investigates Investor Losses in Patriot Coal Corp (PCX)

July 2, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating investors who have suffered losses in in now bankrupt coal company, Patriot Coal Corp (Stock Symbols: PCX) (Patriot Coal). Patriot Coal is the third largest coal producer in the eastern US. Patriot Coal has operations in the eastern US in Central Appalachia, Northern Appalachia, and the Illinois Basin.

According to Reuters, Patriot Coal filed for bankruptcy protection on in May 2015, just 18 months after emerging from its previous Chapter 11. The bankruptcy filing has been prompted by low energy prices. In order to support its mining and marketing operations during bankruptcy, the company has secured up to $100 million in financing. Patriot Coal has listed assets and liabilities of more than $1 billion in its bankruptcy petition. Patriot Coal also has 1.4 billion tons of proven and probable coal reserves. In the prior bankruptcy, Patriot received an agreement with its former parent Peabody Energy to provide $400 million to cover health care benefits for retired mine workers.

Patriot Coal is only one of several energy related companies our firm has been tracking through bankruptcy including Xinergy Ltd, Dune Energy Inc, BPZ Energy Inc, RAAM Global, Sabine Oil & Gas Corp., and Quicksilver Resources Inc. In addition, Walter Energy Inc, another coal produce, has skipped an April interest payment on its debt

Gana LLP Investigates Investor Losses in American Eagle Energy Corp. (AMZG)

June 30, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating investors who have suffered losses in in now bankrupt oil and gas company, American Eagle Energy Corp. (Stock Symbols: AMZG) (American Eagle Energy). American Eagle Energy is a Colorado, Littleton-based company that buys and develops wells in the Williston Basin of North Dakota. American Eagle Energy filed for chapter 11 bankruptcy in May 2015.

Our offices continue to report on investment losses suffered by investors in various oil and gas investments that brokerage firms have increasingly recommended to retail investors in recent years. These investments include private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks.

Oil and gas related investments have been recommended by brokers under the assumption that oil & gas would continue to be sold at around $100 and increase steadily over time. However, last summer the price of oil & gas plummeted due to a strengthening dollar and increased global supply of oil and remains below $60 to this day. Some experts are saying that if production volume continues to be as high as it currently is and demand growth weak that the return to $100 a barrel is years away.

Gana LLP Investigates Investor Losses in BPZ Energy

May 19, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating investors who have suffered losses in in now bankrupt oil and gas company, BPZ Resources, Inc. (BPZ Resources) (Stock Symbols: BPZRQ and BPZ) BPZ Resources is an independent oil and gas exploration and production company with license contracts covering approximately 1.9 million net acres in four properties in northwest Peru. BPZ Resources filed for chapter 11 bankruptcy in March 2015.

Our offices continue to report on investment losses suffered by investors in various oil and gas investments that brokerage firms have increasingly recommended to retail investors in recent years. These investments include private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks. See Overconcentrated in Oil and Gas Investments?, MLP Fund MainStay Cushing Royalty Energy Hurt by Failing Oil & Gas Prices; Oil and Gas Investments – Issuers Profit While Investors Take All the Risk, BlackGold Opportunity Fund Investors Suffer Losses

Oil and gas related investments have been recommended by brokers under the assumption that oil & gas would continue to be sold at around $100 and increase steadily over time. However, last summer the price of oil & gas plummeted due to a strengthening dollar and increased global supply of oil and remains below $60 to this day. Some experts are saying that if production volume continues to be as high as it currently is and demand growth weak that the return to $100 a barrel is years away.

Gana LLP Now Representing Investors That Suffered Losses in Quicksilver Resources

May 18, 2015 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently representing investors who have suffered losses in in now bankrupt oil and gas company Quicksilver Resources, Inc. (Quicksliver) (Stock Symbols: KWKAQ, KWKA, and KWK). Quicksilver is an independent oil and gas company engaged in the acquisition, exploration, development, production, and sale of natural gas, natural gas liquids, and oil in North America headquartered in Fort Worth, Texas. Quicksilver filed for chapter 11 bankruptcy on March 14, 2015.

Our offices continue to report on investment losses suffered by investors in various oil and gas investments that brokerage firms have increasingly recommended to retail investors in recent years. These investments include private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks. See Overconcentrated in Oil and Gas Investments?, MLP Fund MainStay Cushing Royalty Energy Hurt by Failing Oil & Gas Prices; Oil and Gas Investments – Issuers Profit While Investors Take All the Risk, BlackGold Opportunity Fund Investors Suffer Losses

Oil and gas related investments have been recommended by brokers under the assumption that oil & gas would continue to be sold at around $100 and increase steadily over time. However, last summer the price of oil & gas plummeted due to a strengthening dollar and increased global supply of oil and remains below $60 to this day. Some experts are saying that if production volume continues to be as high as it currently is and demand growth weak that the return to $100 a barrel is years away.