Phone713-955-5330

Disclosures

Important Disclosures

Compensation Policy:
Analysts’ compensation is not based on investment banking revenue nor have they received compensation from the companies on which we publish research .

Investment Banking Revenue:

Heikkinen Energy has received investment banking revenue from Callon Petroleum, EQT Corp., Gastar Exploration, Gulfport Energy, Oasis Petroleum, Parsley Energy, and Extraction Oil & Gas in the previous 12 months, but has not received non- investment banking revenue from the subject company (companies) in the previous 12 months. We intend to seek compensation for investment banking services from the companies mentioned within this research report.

Heikkinen Energy uses a three tier rating system. The top tier is the Focus List, the middle tier is The Moil, and the Bottom Tier.

Meanings of Ratings:

We force-rank for all companies we cover (#rank/# of companies covered). Focus List is assigned to those companies (usually 20 – 30% of the companies) that have the best combination of valuation risk/reward and positive company specific catalysts within our coverage universe. These companies should be purchased at current prices because they are expected to outperform its peers over the next 12 months. The Moil is assigned to those companies that have an average combination of valuation risk/reward and company specific catalysts within our coverage universe. These companies are expected to perform in line with our coverage universe over the next 12 months. Bottom Tier is assigned to those companies (usually 20 – 25% of the companies) that have below average combination of valuation risk/reward and company specific catalysts within our coverage universe. These companies are expected to underperform our coverage universe over the next 12 months. These stocks should be sold at current prices.

Rating Distribution: (as of March 31, 2017) Investment Banking Client Rating Distribution: (as of March 31, 2017)
Stock Rating Category

Count

Percent(rounded)

Stock Rating Category

Count

Percent

Buy/ Focus List 23 32% Buy/ Focus List 3 43%
Hold/ The Moil 28 39% Hold/ The Moil 3 43%
Sell/ Bottom Tier 19 26% Sell/ Bottom Tier 0  0%
NR/Not Rated  2 3% NR/Not Rated 1 14%

Price Targets:

We do not use price targets in our research reports.

Price Charts:

Other Disclosures:

Legal Entities Disclosure: Heikkinen Energy Securities LLC (member FINRA/SIPC) is a wholly owned subsidiary of Heikkinen Energy Advisors LLC.

SEC Rule 606 Report Disclosures of Order Routing Information Routing Information
Not applicable June 30, 2014

Business Continuity Plan

Heikkinen Energy Advisors and its wholly owned subsidiary, Heikkinen Energy Securities LLC, has developed a business continuity plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.

Contacting Us – If after a significant business disruption you cannot contact us through the usual means by calling 713-955-5330 or emailing compliance@HeikEnergy.com, you should call our alternative number 713-955-5333. If you are still unable to contact us through those methods, you may contact our clearing firm, Pershing, LLC, at 201-413-4672 or by visiting their website at www.pershing.com for instructions on how you may gain access to funds and securities, enter orders and process other trade-related, cash, and security transfer transactions.

Our Business Continuity Plan – We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.
Our business continuity plan addresses: data backup and recovery; all mission critical systems; financial and operational assessments; alternative communications with clients, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.

Our clearing firm, Pershing, LLC, backs up our important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our clearing firm that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payments within 4 hours. Your orders and requests for funds and securities could be delayed during this period.

Varying Disruptions – Significant business disruptions can vary in their scope, such as affecting only our firm, the building where our offices are located, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or our offices, we will transfer our operations to a local site when needed and expect to recover and resume business within 2 hours. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and recover and resume business within 5 hours. In either situation, we plan to resume business, transfer operations to our clearing firm if necessary, and notify you through our this website on how you may contact us. If the significant business disruption is so severe that it prevents us from remaining operational, we will assure our customer’s prompt access to their funds and securities.

For more information – If you have questions about our business continuity planning, you can contact us at 713-955-5330.

SIPC Information

Heikkinen Energy Securities LLC is a member of the Securities Investor Protection Corporation (SIPC). Please be advised that you may obtain information about SIPC, including the SIPC brochure, by contacting SIPC at www.sipc.org or 202-371-8300.

BrokerCheck

FINRA Rule 2267 requires that member firms provide clients with the FINRA BrokerCheck Hotline Number (800-289-9999), FINRA web site address (www.finra.org) and a notification that a brochure describing BrokerCheck is available from FINRA by contacting FINRA through their web site.

Payment for Order-Flow Disclosure

Heikkinen Energy Securities LLC does not receive any payment for order flow from securities transactions.

Questions or Complaints?

In the event you should have a question or complaint that you would like to register with the firm, please contact the Compliance Department at:

Heikkinen Energy Securities LLC
Attn: Compliance Department
2601 Westheimer Rd.
Suite C240
Houston, TX 77098
(713) 955-5330

New Account Policy

Important Information About Procedures for Opening a New Account:
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means for you:
When you open an account, we will ask for your name, address, date of birth and identification number. The identification for a U.S. citizen would be a taxpayer identification number or social security number. For a non-U.S. citizen, the identification number would include a (i) taxpayer identification number, (ii) a passport number along with country of issuance, (iii) alien identification number, or (iv) a government-issued identification document indicating nationality, residence, as well as your photo. We may also ask to see or copy your driver’s license, passport or other identifying documents.
A corporation, partnership, trust or other legal entity may need to provide other information, such as its principal place of business, local office, employer identification number, certified articles of incorporation, government-issued business license, a partnership agreement or a trust agreement.
Questions?Comments?
If you should have any questions or comments about our Customer Identification Program, please contact our Compliance Department on 713-955-5330. You may write to us at the following address:

Heikkinen Energy Securities LLC
Attn: Compliance Department
2601 Westheimer Rd.
Suite C240
Houston, TX 77098

Without prior written consent of Heikkinen Energy Securities LLC, no person may reproduce any portion of the content on this website. “Content” refers to any materials, documents, images, graphics, logos, design, audio, video and any other information provided from or on our site.