Hedge Strategies
Risk management is a critical component of an effective energy strategy. For energy consumers, price volatility and unreliable supplies can shock operating budgets and cash flows, erode profits and disrupt operations. Fellon-McCord has spent nearly two decades developing highly successful strategies that manage price and reliability risks, including physical procurement strategies, storage, financial hedging, and regulatory monitoring and intervention.
Our goal is to reduce risk and volatility in the energy supply procurement equation. To do this, we collaborate with our clients to establish a “Risk Management Charter” that defines the risk tolerance and business objectives to provide a clear road map to achieve these goals.
Fellon-McCord employs a variety of energy-hedging strategies to meet the unique circumstances and objectives of individual clients, such as managing to a budget, systematic cost-averaging or opportunistic price targeting.
Risk management, through the development and implementation of an appropriate hedging strategy, should trade risk for price certainty. Fellon-McCord has the tools and techniques that provide our clients the ability to:
- Turn an “unknown” into a “known”
- Mitigate future price risk
- Reduce price volatility
- Protect corporate profits
- Stabilize cash flow
Regulatory / Legislative
To support our clients in the face of an evolving regulatory and legislative climate, Fellon-McCord reviews and analyzes regulatory and governmental policy and any actions that can significantly impact the price and reliability of energy.
Regulatory and legislative services include the review and evaluation of environmental issues, their impact on energy prices, and the policies and actions by business and trade groups that can influence what clients pay for energy, water and related services. Fellon-McCord provides recommendations to mitigate or avoid exposure to existing policies and proposed changes.
Deep Insight
Active regulatory and legislative services, available in the United States, Canada, Mexico and Europe, focus on each principal level of government and regulation, including: federal/national, provincial/state, and local authorities and organizations.
Timely and Detailed Reports
Fellon-McCord offers periodic reports to clients, including monthly and quarterly updates. Topical and special project reports are developed as needed for our clients or as dictated by regulatory action and/or market conditions. These reports not only provide a review and analysis of the issues, but also include recommended actions to mitigate risk exposure.
Market Intelligence
Knowledge is power. Better information improves decision-making, but data and information are not the same thing. The multitude of data points available in the energy markets need to be analyzed before they can be turned into information our clients can use.
Fellon-McCord compiles and analyzes data from a host of proprietary and public sources. Our active and broad-based participation in the energy markets gives us the experience and perspective necessary to deliver relevant, actionable energy information on a timely basis.
To facilitate and enhance the performance of our consulting and management services, Fellon-McCord publishes certain reports, filings, confirmations and other informational compilations including the following:
- Daily pricing report
- Weekly market summary
- Weekly natural gas and crude oil inventory reports
- Monthly energy intelligence report
- Periodic energy purchase recommendations
- Quarterly energy price forecasts