Whether you buy forward contracts from a supplier or futures contracts on the exchange, manage fixed or capped price agreements, or seek to avoid margin erosion due to volatile price swings, we can help you achieve your fuel hedging objectives.
From small businesses up to large corporations, our satisfied clients include:
A consulting relationship with Hedge Solutions targets four key areas to insure a successful energy risk management strategy:
We are your eyes and ears in the marketplace. Our daily newsletters, Pipeline and Evening Energy Report, keeps our clients up to date on the latest energy prices and news from the exchange. We track fundamental information on a weekly basis, analyzing changes to supply and demand that could impact your prices down the road.
Deciding on a fuel hedging strategy may be the most important decision you make for your business. We’ve developed powerful tools that will identify the risks to your P&L, and project the impact of market fluctuations. Next, we can apply a variety of fuel hedging strategies, running “what-if” analysis to determine which plan will best mitigate the risks you face. “How much premium should I spend? What happens if I go ‘out of the money’?” We can take the mystery out of those questions. Once you’ve chosen a strategy, we will project your margin performance forward over the next fiscal year.
This is an area where the best intentions can go astray. Properly executing an energy risk management strategy can make all the difference in a successful hedge. Our MAPS program, “Methodically Applied Purchasing Strategies,” takes the guesswork out of the question, “When should I hedge?” On a weekly basis, MAPS signals how much you should hedge, insuring you execute the strategy according to plan. Need to buy less than a contract increment? Not a problem. Our sister company, Northland Energy Trading, provides access to hedging tools, in any size you’d like, for all clients of Hedge Solutions.
As you move through the year, we track exactly how your margins are performing relative to expectations. Have consumption rates changed? Is basis behaving? We can evaluate where you stand in “real time,” providing opportunity to make changes as needed so you meet or exceed your target profits.
Our energy procurement consulting services don’t stop there. We view the relationship with our clients as a true partnership, providing advice on a variety of other areas, such as contract negotiations and business expansion. All of this is included in your monthly consulting fee.