Solutions

Risk Management Hedging

Effectively manage hedging transactions and analyze their revenue impact.

Many E&P companies employ a hedging strategy to offset oil and gas price volatility. Closely managing your hedges is critical to ensuring they meet the overall pricing objective and ensuring they do not have an inadvertent negative impact. This is often a burdensome administrative process with information difficult to collect, analyze, and manage.

The Hedging Module is designed specifically to accommodate typical hedging activity by oil and gas producers. This module allows you to capture budget volume and budget price parameters and define hedging strategies. It includes full transaction support for Futures, Options, Swaps, and Collars. This module includes reporting and analysis capabilities for calculating hedge volume and price, forecasted gain/loss, hedge positions, and more.

Hedging

Highlights

  • Designed for Producers
  • Full Transactional Support
  • Document Approval Process
  • Capture Budgets Parameters
  • Assess Hedging Performance
  • Generate Invoices and Reports

Key Features

  • Designed for Producers

    Unlike other hedging systems that target multiple industries, EMK3 has designed a system perfectly matched for oil and gas producers.

  • Full Transactional Support

    Full transaction support for Futures, Options, Swaps, and Collars (both 2-way and 3-way). Calculate either forecasted or actualized value for all transactions. Generate invoices to send to counter-parties.

  • Document Approval Process

    Set up and manage a process for reviewing and approving hedging transactions, including automatically notifying each approver and recording their approval (digital signature).

  • Capture Budgets Parameters

    Captures budget volume and budget price parameters.

  • Assess Hedging Performance

    Assess hedging performance by comparing actual hedges to strategies and budgets.

  • Generate Reports

    Historical Gain/Loss, Hedging Positions, Budget Price, Hedging Forecast, Hedging Volume, Hedging Price, and more.