The Car and Truck Fleet and Leasing Management Magazine

Wright Express Extends Its Existing Fuel-Price Risk Management Program Through 1Q 2008

January 24, 2006

SOUTH PORTLAND, ME – Wright Express Corp. has extended its existing fuel-price risk program through the first quarter of 2008. The company initially began executing on its current program in July 2005.On Jan. 9, 2006, the company purchased instruments to cover an additional 30 percent of its anticipated fuel-price-related earnings exposure for each of the third and fourth quarters of 2007 and the first quarter of 2008. At this time, Wright Express has hedged 90 percent of the first three quarters of 2007 exposure, 60 percent of the fourth-quarter 2007 exposure and 30 percent of the first- quarter 2008 exposure.It also intends to continue to hedge approximately 90 percent of its 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 Jan. 9 purchase locked in a fuel price range of approximately $2.38 and $2.44 per gallon. The following table states the approximate range of the collar and percentage of fuel-price-related earnings exposure:Q1
Average of low end of range $2.29
% Locked in 90%
Average of top end of range $2.36
% Locked in 90%
Average of low end of range 2.29
% Locked in 90%
Average of top end of range 2.36
% Locked in 90%
Average of low end of range 2.32
% Locked in 90%
Average of top end of range 2.39
% Locked in 90%
Average of low end of range 2.34
% Locked in 60%
Average of top end of range 2.41
% Locked in 60%
Average of low end of range 2.38
% Locked in 30%
Average of top end of range 2.44
% Locked in 30%
Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.


Fleet Management And Leasing

Merchants Experts will answer your questions and challenges

View All
Sponsored by

For more than 50 years, Merchants Fleet Management has been providing customized, total fleet management and leasing solutions for businesses and government agencies.

Read more

Fuel Saving Strategies Survey

View our 2008 survey to benchmark your fleet's fuel and green strategies with other fleets.

Fuel Calculator

A managed fuel program can help you save time and money and gain control over the way you fuel your vehicles. Determine your potential savings by using our fuel calculator.
Launch Fuel Calculator 

Fuel Prices

U.S. Gasoline and Diesel Fuel Prices.

Launch Fuel Prices 

Up Next

More From The World's Largest Fleet Publisher