MLP Investments

Why have my MLP investments declined in value and what are my options now?

If you’re an investor who owns interest in any Master Limited Partnerships (MLP), then you’ve likely seen a significant decrease in the value of your MLP investments in just a few short months. We have received numerous phone calls from investors who were sold MLPs by their brokers with the promise that these investments had little risks and would pay handsome dividends for years to come. Now these investors are left asking themselves why have these supposedly safe investments declined in value and what are my options?

MLPs service the energy sector by providing pipelines, processing plants, storage and refineries. Most MLPs earn money by charging oil and gas producers to transport or store their products. With the recent sharp decline in oil prices, MLPs have also taken a hit. In fact, some MLPs have declined as much as 50% in value. When selling MLPs, some brokers told their customers the MLP prices were not correlated to the price of oil. These statements are simply not true. In fact, with oil production falling, the need for the very things that MLPs supply, like pipelines and processing plants, are also declining,

One important reasons why MLP prices are down so sharply is because investors recognize the dividends that MLPs provided in the past are also under threat. If oil prices stay low for an extended period of time, many MLPs will be required to cut their dividends as the oil companies renegotiate the price for shipping, storing, and processing oil that MLPs charge their customers.

If you have lost money in MLPS, Meyer Wilson may be able to help you recover your losses. Some brokers told their customers that MLP prices are not correlated to the price of oil. That is a flat out misstatement that might be grounds for recovering your losses against the broker or brokerage firm. Also, many of our clients and prospective clients told us that many investments were over concentrated in MLPS.

Contact us today to see what we may be able to do for you! We offer free consultations and all our cases are handled on a contingency fee basis.