Blog

Financial Swaps

08/13/2024/by JD Buss

John Hull, in the financial classic, Introduction to Futures and Options Markets, defines a swap this way.

“An agreement to exchange cash flows in the future according to a prearranged formula.”

Financial swaps in energy involve the buyer paying a fixed price and the seller paying a variable price.

For propane, and almost all energy commodities, financial swaps work in this manner:

The buyer of the swap will pay the seller a fixed price.
The seller of the swap will pay the buyer a floating (variable) price. This variable price is often an average value.

We Have You Covered

With Our Proven Process.

Rest easy knowing we’re your guide for energy industry market expertise and commodity advising.

Get In Touch

Contact our team to schedule a free consultation with one of our experienced professionals.

Savings Evaluation

We’ll analyze past year’s performance to identify pain points and areas for improvement, including a comprehensive savings evaluation.

Choose Your Solution

We’ll recommend the best plan to meet the unique needs of your business and provide a detailed price estimate before getting started.

Testimonials

From Our Valued Customers.

“

We enjoy working with Twin Feathers. Great people who have helped our business!

Will

“

Twin Feathers has taken the burden of the everyday supply logistics off our plate and allowed us to focus on our operations in the critical times of the year. They have educated our team along the way and helped us brainstorm options/risks that fit our business model. Twin Feathers has allowed the Tevis organization to explore opportunities within the supply and hedging arena that we would not have been exposed to without the relationship.

Dave

“

We experience less angst when making a futures purchase.

Jeff

“

They not only taught us how to plan and diversify our supply, but also new ways to protect the price. They have been great at negotiating supply deals and putting plans in place to know we will be secure when the market is not. I am confident that if things get tight we will be in a better position than our competitors.

Troy

“

We can’t say enough about the high level of service the entire team provided us. We relied on them and they came through for us over and over. They are complete professionals and a pleasure to do business with.

Rick & Ann

“

It has been one of the best decisions that our company has ever made. The Twin Feathers team have looked after our interests since day one, and have executed the plan each year very well.

James

Learn More

About Twin Feathers

Twin Feathers has partnered with energy firms since 1998 to provide transparent, value-driven commodity market advisory services.

English Español