November 3, 2016 Comments (0) Current Investigations

PDC Energy Update

PDC Energy
(Last Updated On: April 7, 2017)

PDC Energy Investment Losses

Have you suffered losses in Petroleum Development Company (PDC Energy)? If so, the securities attorneys of The White Law Group may be able to help you.

PDC Energy is an exploration and production company headquartered in Denver, Colorado focused on value-added organic growth through active horizontal drilling programs. According to their website, PDC’s operations include production, development, exploration and marketing of crude oil, natural gas and natural gas liquids.

In a recent press announcement, third quarter highlights included an equity offering of approximately nine million shares for net proceeds of approximately $560 million, issuance of $200 million of 1.125% convertible senior notes due 2021 and issuance of $400 million of 6.125% senior notes due 2024. As we told you in August, (Investor Alert: PDC Energy) they are floating new shares of stocks and new bonds to help pay for the purchase of two drillers in Texas.

High-Yield Bonds

High-yield bonds—also called non-investment-grade bonds, speculative-grade bonds, or junk bonds—are bonds that are rated below investment grade, typically ‘BB’ or lower by Standard & Poor’s and ‘Ba’ or lower by Moody’s. They pay high yields to bondholders because the borrowers credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds carry an above average risk that the issuer will default on the bond.

The increased risk makes them arguably unsuitable for many investors. Brokerage-firms and investment adviser are required to make investment recommendations that are suitable for their clients in light of their clients particular investment situation – net worth, investment objectives, income, and investment experience.

Brokerage firms or advisors who sell junk bonds to unsuitable investors or fail to adequately disclose the risks of the investments can be held accountable for losses suffered through a FINRA arbitration claim.

For more details on high-yield junk bonds, click here.

Recovery of Investment Losses

If you have concerns regarding your investment in PDC Energy, Inc. bonds and would like to speak with a securities attorney about your litigation options, please call The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group visit www.whitesecuritieslaw.com.