Wright Express Extends Fuel-Price Risk Program
SOUTH PORTLAND, MAINE --- Wright Express has extended its existing fuel-price risk program through the fourth quarter of 2007. The company initially began executing its current program in July 2005.
The company has purchased instruments to cover an additional 30 percent of its anticipated fuel-price-related earnings exposure for each of the second, third, and fourth quarters of 2007. 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 and locked in a fuel price range of approximately $2.30 and $2.37 per gallon.