WEX Extends Its Existing Fuel-Price Risk Management Program
WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, has extended its existing fuel-price risk management program through the second quarter of 2015.
On November 15, 2013, the Company purchased instruments to cover a portion of its anticipated domestic fuel-price-related earnings exposure for the fourth quarter of 2014 and the first and second quarters of 2015. At this time, WEX has hedged approximately: 60% of its fourth-quarter 2014 exposure, 40% of its first-quarter 2015 exposure and 20% of its second-quarter 2015 exposure. Going forward, the Company intends to hedge approximately 60% of its domestic fuel-price-related earnings exposure in every quarter on a rolling basis.
The instruments are designed to enhance the visibility and predictability of the Company’s future earnings. The program uses instruments that create a “costless collar” based upon both the U.S. Department of Energy’s weekly diesel fuel price index and NYMEX unleaded gasoline contracts. The November purchase locked in a fuel price range of approximately $3.34 to $3.40 per gallon.
About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of corporate payment solutions. From its roots in fleet card payments beginning in 1983, WEX has expanded the scope of its business into a multi-channel provider of corporate payment solutions representing more than 7.6 million cardholders and offering exceptional payment security and control across a wide spectrum of business sectors. The Company’s operations include WEX Bank, Fleet One, Pacific Pride, rapid! PayCard, Wright Express Australia, Wright Express New Zealand and CorporatePay Limited, England, as well as a majority equity position in UNIK S.A., Brazil. WEX and its subsidiaries employ more than 1,400 associates.
More information at http://www.wexinc.com.
Category: Fuel & Oil, General Update