The Car and Truck Fleet and Leasing Management Magazine

Wright Express Extends Fuel-Price Risk Program

October 13, 2006

SOUTH PORTLAND, Maine --- Wright Express Corp. has extended its existing fuel-price risk program through the fourth quarter of 2008. The company initially began executing on its current program in July 2005.On Oct. 4, Wright Express purchased instruments to cover an additional 30% of its anticipated fuel-price-related earnings exposure for the second, third and fourth quarters of 2008. At this time, Wright Express has hedged 90% of its anticipated exposure through the second-quarter of 2008, 60% of the third-quarter 2008 exposure and 30% of the fourth-quarter 2008 exposure.The company said it intends to continue to hedge approximately 90% 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 Oct. 4 purchase locked in a fuel price range of approximately $2.47 to $2.53 per gallon.
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