WEX Inc. has extended its existing fuel-price risk management program through the third quarter of 2014. On March 18, the company said it locked in a fuel price range for approximately $3.43 to $3.49 per gallon during this period.
The company said it has hedged approximately 60% of its exposure for the first quarter of 2014, 40% of its exposure in Q2 2014, and 20% of its exposure in Q3 of 2014. The company said it intends to hedge approximately 60% of its domestic fuel-price-related earnings exposure in every quarter on a rolling basis.
The chart below shows the prices and approximate percentage WEX locked in between Q1 2013 and Q3 2014.
|Average low end of range||3.42||3.44||3.47||3.36||3.38||3.35||3.43|
|Average top end of range||3.48||3.5||3.53||3.42||3.44||3.41||3.49|
|Approximate % locked in||80%*||80%*||60%*||60%*||60%**||40%**||20%**|
*At the time of execution, 2013 hedges were established without consideration of Fleet One volumes (WEX acquired Fleet One in October 2012).
**2014 hedges have been established with consideration of Fleet One volumes.