Resource Anadarko Royalties LLC Investor Alert

Soreide Law Group is investigating potential investor claims involving alleged sales practice violations by securities brokers and financial advisors in connection with Resource Anadarko Royalties LLC. Resource Anadarko Royalties LLC is a private oil-and-gas investment offering focused on mineral and royalty interests, a type of product frequently promoted as an income-generating alternative investment. There is adverse information regarding the structure, risks, and marketing of this investment that investors should carefully consider. The discussion below summarizes key facts and potential concerns surrounding this offering.

What Is Resource Anadarko Royalties LLC?

Resource Anadarko Royalties LLC is a private placement investment vehicle formed in 2019 and headquartered in Dallas, Texas. The company organized its operations to acquire, hold, and manage interests in oil-and-gas mineral properties, with investor returns depending on royalty income from energy production. The issuer conducted the offering under Rule 506(b) of Regulation D, did not register the securities with the Securities and Exchange Commission, and sold them primarily to accredited investors. Public filings indicate the issuer sought to raise up to $23,750,000, with a stated minimum investment of $100,000. The offering reportedly involved outside broker-dealers and selling agents and did not trade on any public market, which made investor interests illiquid.

Concerns About Resource Anadarko Royalties LLC

There are several risk-related and structural issues that may raise concerns for investors. Oil-and-gas royalty investments are inherently speculative and highly exposed to fluctuations in oil and natural gas prices, which can directly impact cash flow and distributions. In addition, oil and gas wells typically experience declining production over time, which may reduce long-term income potential. The offering also reportedly included substantial upfront costs, including sales commissions that could reach approximately six percent, along with other fees and expenses, potentially reducing the amount of investor capital deployed into revenue-producing assets. Because this offering qualified as a Regulation D private placement, it imposed limited ongoing disclosure and transparency obligations, which makes it difficult for investors to independently assess performance, asset valuation, and potential conflicts of interest. The use of third-party solicitors, including registered firms such as JCC Advisors LLC, may also factor into an evaluation of the marketing of the investment.

Potential Sales Practice Violations

Investors who purchased Resource Anadarko Royalties LLC through a broker or financial advisor may have experienced sales practice violations. These may include unsuitable recommendations for investors seeking liquidity or lower risk, misstatements or omissions regarding the speculative nature of oil-and-gas royalties, and failures to adequately disclose fees, commissions, conflicts of interest, or the lack of a secondary market. When brokers fail to conduct reasonable due diligence or place commissions ahead of client interests, investors may have legal rights. Recovery is often pursued through FINRA arbitration or, in some circumstances, through court proceedings.

Did You Sustain Losses By Investing In Resource Anadarko Royalties LLC?

Did you suffer any investment-related losses because of investing in Resource Anadarko Royalties LLC because of your financial advisor or securities broker? If so, reach out to Soreide Law Group at (888) 760-6552 or online and talk with a securities attorney about a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the United States. The firm takes cases on a contingency fee arrangement and advances all costs.