The Car and Truck Fleet and Leasing Management Magazine

Wright Express Extends Fuel-Price Risk Management Program

September 15, 2006

SOUTH PORTLAND, Maine --- Wright Express Corp. has extended its existing fuel-price risk program through third quarter 2008. The company first began executing on its current program in July 2005. On Aug. 31, 2006, the company purchased instruments to cover an additional 30 percent of its anticipated fuel-price-related earnings exposure for the first, second, and third quarters of 2008. At this time, Wright Express has hedged 90 percent of the first-quarter 2008 exposure, 60 percent of the second-quarter 2008 exposure, and 30 percent of the third-quarter 2008 exposure.The company 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 Aug. 31 purchase locked in a fuel price range of approximately $2.65 to $2.71 per gallon.
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