Hedging is not the only route to managing commodity risks. Common corporate activity such as M&A, joint ventures, and strategic partnerships may also help companies attain a balance between commodity risk and manageable exposure. There are also innovative tools which can be employed to augment or replace expansion, build-out, and divestiture activities. These solutions can help address revenue balance between commodity exposure, asset sales, and horizontal integration (e.g. feedstock and processing).
Eco Risk Markets helps its clients identify and evaluate these alternatives as an independent and unbiased third party. Our strategic work includes::
- Synthetic instruments to replace target economics from physical transactions;
- Deal-contingent swaps to manage “broken deal” risk;
- Hedge insurance against shut-ins, weather risk, and unscheduled events;
- Integrating hedging with working capital programs and right-way risk; and
- TCommodity and risk modeling to support negotiation processes during capital acquisition.