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.
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
|---|---|---|---|---|---|---|---|
| 2013 | 2013 | 2013 | 2013 | 2014 | 2014 | 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.
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