SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Feb. 26, 2014--
WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions,
today announced that it has extended its existing fuel-price risk
management program through the third quarter of 2015.
On February 20, 2014, 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 2015. At this time, WEX has
hedged approximately 60% of its first quarter 2015 exposure, 40% of its
second quarter and 20% of its third quarter 2015 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 February purchase locked in a fuel price range
of approximately $3.39 to $3.45 per gallon. The following table states
the approximate range of the collar and percentage of fuel-price-related
earnings exposure:
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Q1
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Q2
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Q3
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Q4
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Q1
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Q2
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Q3
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2014
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2014
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2014
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2014
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2015
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2015
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2015
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Average low end of range
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$3.38
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$3.36
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$3.37
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$3.34
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$3.34
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$3.36
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$3.39
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Average top end of range
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$3.44
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$3.42
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$3.43
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$3.40
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$3.40
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$3.42
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$3.45
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Approximate % locked in
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60%
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60%
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60%
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60%
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60%
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40%
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20%
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About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of corporate payment
solutions. From its roots in fleet card payments beginning in 1983, WEX
has expanded the scope of its business into a multi-channel provider of
corporate payment solutions representing more than 7.7 million
cardholders and offering exceptional payment security and control across
a wide spectrum of business sectors. The Company’s operations include
WEX Bank, Fleet One, Pacific Pride, rapid! PayCard, WEX Australia, WEX
New Zealand and WEX Europe, as well as a majority equity position in
UNIK S.A., Brazil. WEX and its subsidiaries employ more than 1,400
associates. For more information about WEX, please visit http://www.wexinc.com.
Source: WEX Inc.
WEX Inc.
News media contact:
Jessica Roy, 207-523-6763
Jessica.Roy@wexinc.com
or
Investor
contact:
Michael E. Thomas, 207-523-6743
Michael.Thomas@wexinc.com