Two More Energy and Gas Master Limited Partnerships (MLPs) to Avoid

Stoltmann Law Offices continues to investigate two energy and gas master limited partnerships (MLPs) for 2016. They are LINN Energy (NASDAQ: LINE) and Williams Partners (NYSE: WPZ). Due to the long, sustained decline in oil and gas prices, both companies stocks are trading down vast percentages since oil prices plummeted. Williams Company just had its credit rating downgraded to “junk” status, which means new debt will come with higher interest rates, and many of the proposed projects will not be as economical as they had been previously. And most oil companies are expecting 2016 to be a repeat performance of oil and gas where stocks are concerned. LINN is still looking at $10 billion in debt, an oil price that barely makes a return and a suspended distribution that all but annuls the point of owning a partnership in the first place.

Oil and gas MLPs may not be suitable for all investors, as they are risky investments. A broker must take into account a client’s age, net worth, investment objectives and other considerations before recommending an investment. If he does not, his firm may be liable for client losses. Please call our Chicago-based securities law firm to speak to an attorney if you believe you have a claim against your brokerage firm or broker. The call is free with no obligation.

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