Mercatus Energy Advisors is widely recognized as an industry leader in refiner and processor hedging and price risk management. Our team works closely with our refiner and processor clients to develop an oil & gas price risk management program which meets their unique needs and objectives.
We focus on working with our clients to manage their exposure to volatile oil & gas prices from the current month to several years in the future. We help clients identify their exposures and develop and implement policies, procedures and strategies that allow them to prosper in low, high and moderate oil & gas price environments.
We help refiners and processors obtain a comprehensive view of current their oil & gas price risk and identify and implement solutions which will allow them to meet their goals and objectives. Our oil & gas advisory services are tailored to your specific needs which allow us to help you develop, implement and manage a successful plan regardless of what happens in the energy commodity markets. Furthermore, we provide our clients with standing, regular calls where we review and discuss their positions, objectives and, if necessary, any strategy modifications.
All of our refiner and processor clients have unlimited access to our team and the customized models we develop for you. Many of our clients consider us their “in-house” oil & gas trading and risk management experts, which allow them to focus on their core business.
Establishing a solid refiner or processor hedging and risk management program is a critical component of your success. We work directly with you to assess, analyze and manage your price risk through a unique and effective process. We provide the professional expertise and service to get the produce the desired results including:
- Evaluation of your crude oil, refined products, natural gas liquids, natural gas and electricity price risk
- A step-by-step plan to set up an energy hedging and price risk management program including a formal price risk management policy
- Evaluation of forward energy markets to objectively identify appropriate hedging opportunities
- Analysis of your market exposure to physical, forward, and option prices to ensure that you employ the most appropriate strategies
- Insightful analytical models to provide you with accurate pre and post-trade analytics
- Technical and fundamental analysis
- Counterparty and FCM relationship management
- Monitoring and evaluating position and portfolio performance on an ongoing basis
- Education and training – Customized to meet the needs of your entire team
- Middle office: market, credit, operational and regulatory risk
- Back office: contracts, confirmations, settlements
- Hedge accounting support including IAS 39, IFRS 9, FAS 133 and FAS 157 and related standards
- Technology solutions: energy trading and risk management (ETRM) and treasury and risk management (TRM) system selection, implementation and management
If you would like to discuss how we can help you regarding your energy hedging and risk management needs please contact us