According to Legacy Reserve’s website, Legacy Reserves LP “is a master limited partnership headquartered in Midland, Texas, focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, Mid-Continent and Rocky Mountain regions of the United States.” The company pays a quarterly distribution to partners within 45 days of each quarter’s close; to receive a quarter’s cash distribution, investors must own their units as of the record date set by the company. Unit holders are taxed on their percentage of partnership taxable income, rather than on their cash distributions. An interest holder is defined as an individual who holds an interest, like a royalty interest, in a LGCY well, and who receives payments for their entitled share of production from that well. An “investor,” on the other hand, is a unit holder who has purchased publicly-traded LGCY units, according to the company.
Bloomberg reports that LGCY has declined more than 90% in value over the last year.
A master limited partnership is a publicly traded limited partnership that features the tax benefits of a conventional limited partnership and the liquidity of publicly traded securities. In order to qualify as an MLP, the company must produce at least 90% of its income from Internal Revenue Service-deemed “qualifying” sources like the production, processing, and transportation of oil, natural gas, and coal.
Master limited partnerships are complicated investments that may not be suitable for all investors. Prospective investors should make sure their broker or investment adviser fully explains the risks of the product to ensure the product is suitable. Brokers and investment advisers who recommend unsuitable investments may be subject to disciplinary action by FINRA or the Securities and Exchange Commission
If you have lost money investing in Legacy Reserves LP Master Limited Partnership (NASDAQ:LGCY), you may be entitled to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. Fitapelli Kurta takes every case on a contingency basis, which means Fitapelli Kurta only gets paid if and when you collect money. By law there may be a limited window to file your claim, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.