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WEX Extends Its Existing Fuel-Price Risk Management Program

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%