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| 8-K - WEX INC. 8-K - WEX Inc. | a50812808.htm |
Exhibit 99.1
WEX Extends Its Existing Fuel-Price Risk Management Program
SOUTH PORTLAND, Maine--(BUSINESS WIRE)--February 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:
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |||||||||||||||||
| 2014 | 2014 | 2014 | 2014 | 2015 | 2015 | 2015 | |||||||||||||||||
| Average low end of range | $3.38 | $3.36 | $3.37 | $3.34 | $3.34 | $3.36 | $3.39 | ||||||||||||||||
| Average top end of range | $3.44 | $3.42 | $3.43 | $3.40 | $3.40 | $3.42 | $3.45 | ||||||||||||||||
| Approximate % locked in | 60% | 60% | 60% | 60% | 60% | 40% | 20% | ||||||||||||||||
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.
CONTACT:
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