The Car and Truck Fleet and Leasing Management Magazine

Wright Express Extends Existing Fuel-Price Risk Management Program Through 1Q 2009

March 21, 2007

SOUTH PORTLAND, MAINE – Wright Express Corp. has extended its existing fuel-price risk management program through the first quarter of 2009. The company initially began executing on its current program in July 2005. On Mar. 6, the company purchased instruments to cover an additional 30 percent of its anticipated fuel-price-related earnings exposure for the third and fourth quarters of 2008 and the first quarter of 2009. At this time, Wright Express has hedged 90 percent of its anticipated exposure through the third-quarter of 2008, 60 percent of the fourth-quarter 2008 exposure, and 30 percent of the first-quarter 2009 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 March 6 purchase locked in a fuel price range of approximately $2.48 to $2.54 per gallon.
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