This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wright Express Extends Its Existing Fuel-Price Risk Management Program And Announces Changes To The Program

Wright Express Corporation (NYSE: WXS), a leading global provider of value-based business payment processing and information management solutions, announced today that it has extended its existing fuel-price risk management program through the first quarter of 2014.

As part of the Company’s regular review of its hedging strategy and in light of recent corporate acquisitions, it is modifying its program beginning in the third quarter of 2013. Specifically, the amount of fuel hedged has been reduced from approximately 80% to 60% of fuel-price-related earnings exposure, while maintaining the use of a costless collar.

On September 17, 2012, the Company purchased instruments to cover a portion of its anticipated domestic fuel-price-related earnings exposure for the third and fourth quarters of 2013, and first quarter of 2014. At this time, Wright Express has hedged approximately 60% of its estimated exposure through the third-quarter of 2013, 40% of its estimated fourth-quarter 2013 exposure and 20% of its estimated first-quarter 2014 exposure. Going forward, the Company intends to hedge approximately 60% of its domestic fuel-price-related earnings exposure in every quarter on a rolling basis. Since the Company’s Fleet One acquisition has not closed, the Company did not include Fleet One exposure in the September 17, 2012 purchase.

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 September 17 purchase locked in a fuel price range of approximately $3.41 to $3.47 per gallon. The following table states the approximate range of the collar and percentage of fuel-price-related earnings exposure:
   

Q3 2012
 

Q4 2012
 

Q1 2013
 

Q2 2013
  Q3 2013   Q4 2013   Q1 2014
Average low end of range   3.45   3.46   3.42   3.44   3.47   3.41   3.41
Average top end of range   3.51   3.52   3.48   3.50   3.53   3.47   3.47
Approximate % locked in   80%   80%   80%   80%   60%   40%   20%

About Wright Express

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs