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Wright Express Modifies Fuel-Price Risk Management Program

December 29, 2008

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Wright Express has modified its fuel-price risk management program, continuing to purchase derivative instruments to cover approximately 80 percent of its fuel-price-related earnings exposure going forward, but not as far in advance as in the past.
As a result, the company has temporarily suspended new purchases of instruments under the program.

Prior to this modification, Wright Express purchased derivative instruments to cover a portion of its fuel-price-related earnings exposure in every quarter on a rolling basis. These instruments create a "costless collar," which is designed to enhance the visibility and predictability of the company's future earnings, based on the U.S. Department of Energy's weekly diesel fuel price index and NYMEX unleaded gasoline contracts.

"We are partially hedged through the third quarter of 2010, and we expect that hedging will continue to be important to the Wright Express business model going forward," said Michael Dubyak, chairman, CEO and president. "However, given the depressed level of fuel prices prevailing today, as well as our diminished overall fuel-price-related earnings exposure, we have decided to temporarily suspend new purchases of derivative instruments."


Wright Express is a provider of payment processing and information management services. The company's charge cards are used by commercial and government fleets to purchase fuel and maintenance services.

More info: www.wrightexpress.com

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