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TheStreet Open House

WEX Extends Its Existing Fuel-Price Risk Management Program

WEX Inc. (NYSE: WXS), a leading provider of corporate payment solutions, announced today that it has extended its existing fuel-price risk management program through the third quarter of 2014.

On March 18, 2013, the Company purchased instruments to cover a portion of its anticipated domestic fuel-price-related earnings exposure for the first, second and third quarters of 2014. At this time, WEX has hedged approximately: 60% of its exposure for the first-quarter of 2014, 40% of its second-quarter 2014 exposure and 20% of its third-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.

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 purchase locked in a fuel price range of approximately $3.43 to $3.49 per gallon. The following table states the approximate range of the collar and percentage of fuel-price-related earnings exposure:

   

Q1

      Q2       Q3       Q4       Q1       Q2       Q3
2013 2013 2013 2013 2014 2014 2014
Average lowend of range 3.42 3.44 3.47 3.36 3.38 3.35 3.43
Average topend of range 3.48

3.50

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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