January 18, 2016 Comments (0) Blog

CSI Compressco LP Securities Investigation

Aztec Comanche A Oil & Gas LP
(Last Updated On: January 31, 2017)

CSI Compressco LP Investment Losses

Have you suffered losses investing in CSI Compressco LP?   If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.

CSI Compressco LP provides compression-based production services to the natural gas and oil exploration and production companies. The Company’s services include related liquids separation and gas metering services. Compressco also offers ongoing well evaluations.  The company is based in Midland, Texas.  According to Bloomberg, the MLP is down 36% in the last year.

According to Barrons, Wells Fargo analysts that cover master limited partnership sorted through their universe and recently came out with a report that lists the companies most likely to cut their distributions – CSI Compressco LP was included on that list.

Master Limited Partnerships (MLPs), like CSI Compressco LP are a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publically traded security. In order to be classified as an MLP the partnership must receive 90% of its cash flow from a “qualifying source” – such as real estate, natural resources or commodities.

The Problem with Alternative Investments

MLPs have increasingly been used to invest in the energy sector and are often sold to investors seeking income.  However, MLP’s are extremely complex and risky, making them only suitable for wealthy, sophisticated retail investors or institutional investors.  They are also a dream product for Wall Street because of the fees they generate, which may cause unscrupulous financial advisors looking to maximize their own commissions to recommend them improperly.

It is for this reason that The White Law Group is investigating the liability that brokerage firms may have for recommending high risk MLPs, like CSI Compressco LP, to their clients.

Brokerage firms that sell oil and gas MLPs are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

Recovery of Investment Losses

If you suffered losses investing CSI Compressco LP or another energy MLP and would like to discuss your litigation options, please call The White Law Group at (888)637-5510 for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.