Did You Invest in Midstates Petroleum (MPOY) or Ultra Petroleum (UPL)?
Soreide Law Group continues
to file several cases against stock brokers on behalf of our clients for recommending
large concentrated positions in oil and gas companies. Many of these companies
are now in bankruptcy. These positions
have caused our clients devastating losses due to the collapse of the oil
and gas industry. Our clients have lost
at an alarming rate, nearly their entire life savings due to the plummeting
energy related stocks recommended to them by their brokers or financial
Over this past weekend, two more companies, Midstates Petroleum (MPOY) and Ultra Petroleum (UPL) filed for Chapter 11 bankruptcy separately. These two companies have over $5.8 billion in debt. Midstates Petroleum is an independent exploration and production company. MPOY filed for bankruptcy after reaching an agreement with its lenders that involves converting a $2 billion conversion of debt to equity. Ultra Petroleum is an oil and gas explorer with $3.9 billion in debt and $1.3 billion in assets.
This increase in bankruptcy filings corresponds with the plunge in oil and natural gas prices, which are near 14-year lows. In 2015, 67 U.S. oil and natural gas companies filed for bankruptcy representing a 379% increase from the previous year when oil prices were high.
When oil prices were comfortably high the companies took on more debt to fund their expensive drilling. But as the surge in production grew in the United States it created a glut in supply which then caused the cost of crude oil to crash. As the revenues dropped, it made it difficult to pay off the huge amounts of debt. The oil and gas companies in turn cut jobs and slashed spending, and now many of the oil and gas companies, unable to pay their mounting debt, are resorting to bankruptcy.
If your broker or financial advisor recommended high-risk oil and gas stocks for your low-risk portfolio, call Soreide Law Group for a no-cost consultation on how to possibly recover your losses at: 888-760-6552. Or visit our website at: https://www.securitieslawyer.com
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