Sonn|Erez Investigating Claims Related to Investments in Energy Infrastructure Through Master Limited Partnerships

Sonn Law Group is investigating claims related to master limited partnerships (“MLPs”). In essence, an MLP is a tax-exempt, publicly trade company which combines the tax benefits of a limited partnership with the liquidity of publicly traded securities. To obtain the tax benefits of a pass through, MLPs must receive their income from qualifying sources such as exploration, mining, extraction, refining of oil and gas and the production of alternative fuels like biodiesel. Brokers may have recommended that fixed income investors, such as retirees, invest in MLPs, because MLPs typically distribute almost all of their income to investors. Bloomberg reported that in 2013 investors put more than $11.9 billion into mutual and exchange-traded funds (ETFs) investing in MLPs. Many oil and gas MLPs, however, have decreased substantially in the last year resulting in losses for investors and highlighting the (often undisclosed) risks associated with MLP investments.

The following is a sampling of MLPs in which fixed income investors may have invested at the advice of their brokers:

Natural Resource Partners
Navios Maritime Midstream Partners New Source Energy Partners LP
NGL Energy Partners
Niska Gas Storage Partners LLC
Northern Tier Energy LP
Nustar Energy Partners
Oaktree Capital Group
OCI Partners
OilTanking Partners
Oneok Partners PAA Natural
PBF Logistics Partners
Penn-Tex Midstream Partners
Petrologistics
Phillips 66 Partners LP
Pioneer Southwest Energy
Plains All American Pipeline
PVR Partners
QEP Midstream
QR Energy
Regency Energy Partners LP
Rhino Resources LP
Rice Midstream Partners
Rose Rock Midstream LP
Shell Midstream Partners
Southcross Energy LP
Spectra Energy Partners
Sprague Resources
Star Gas Partners
Suburban Propane Partners
Summit Midstream Partners
SunCoke Energy Partners LP
Sunoco Logistic Partners
Sunoco LP (formerly known as Susser)
Tallgrass Energy LP
Tallgrass Energy GP
Targa Resource Partners LP
TC Pipelines
Teekay Offshore Partners LP
Tesoro Logistics LP
Transmontaigne Partners
Transocean Partners LLC
USA Compression Partners
Valero Energy Partners LP
Vanguard Natural Res LLC Viper Energy
VTTI Energy Partners
Western Gas Equity Partners
Western Gas Partners
Western Refining Logistics
Westlake Chemical Partners
Westmoreland Resource Partners
Williams Partners
World Point Terminals LP


A broker must have reasonable grounds for each recommendation made to investors considering such factors as the customer’s other securities holdings, financial situation, and risk tolerance. In addition, before a firm offers a security to its customers, the firm must conduct due diligence, that is investigate the facts surrounding the security, to confirm that it is suitable for any customer of the firm. The suitability of an investment for a particular individual is at the center of the investment process and one of the key fiduciary duties owed by a firm and its broker to the customer. A firm may be held liable for its failure to recommend suitable investments to its customers.

If you invested in a master limited partnership and have experienced investment losses, please call us at 844-689-5754 or complete our “contact form.” Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.

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