Posts

Part Two: Spreads

In our first Hedging 201 post we looked at how the structure of a forward curve helps tell a commodity’s story. Now, we want to explore the role a spread plays in helping to interpret that story. What is a spread, and what do they do?

Twin Feathers at First OPIS Global LPG Conference

Twin Feathers team member and President, JD Buss, will be speaking at the first OPIS Global LPG Conference November 5-6, 2024, in Houston, Texas.

Part One: Forward Curve Structure

In Hedging 201 we would like to take things a little farther, exploring important topics like understanding market spreads and how using different financial tools can benefit your business. The first topic we will explore is – forward curve structure.

Twin Feathers Speaks at OPIS Global LPG Conference

Twin Feathers speaks at the Inaugural OPIS Global LPG Conference. Team member, JD Buss, will speak at this event, November 5-6, 2024, in Houston, Texas.

Part Eight: Conclusion & an Introduction

In our Hedging 101 series, our goals were to provide information about hedging in a way that “Kept Things Simple”, while also providing the building blocks to understand basic hedging concepts in action. This post reviews some terms and concepts we’ve covered in this series, and gives a brief overview of where we want to go next with hedging!

Part Seven: Financial Swaps

Hedging 101 has discussed many different strategies to protect against risk, including prebuy, fixed price products, and futures contracts. In this post, we want to look at how financial swaps can reduce risk when a fuel distributor is using a financial hub product.

Part Six – Futures Contracts

Hedging 101 has discussed using different strategies like prebuy and fixed price products to protect against risk. In this post, we want to talk about another strategy – futures contracts. Come with us as we look at how using a financial hub product plus basis can help you navigate some of the risks of the fuel industry.

Part Five: Risk Policies

Hedging 101 has defined basic terms and given examples of hedging using different tools. In this post, we take a quick detour to talk about the not so glamorous, but necessary, part of hedging – risk policies.

Part Four: Another Example

Our Hedging 101 series has introduced and defined basic terms and given an example of hedging through a prebuy purchase. We continue with another example of hedging using two different tools for fixed price products.

Part Three: Beginning to Hedge

In our Hedging 101 series we defined basic terms, such as “hedge,” and have identified risks a business needs to protect against. We now move into the process of beginning to hedge or protect against those risks.