Products
Our team of experienced, forward-thinking energy industry
professionals source, manage, and develop a wide assortment of
heating oil, diesel, gasoline, jet fuel, natural gas, and renewable
fuel products and blends. We deliver these products at competitive
prices through a variety of near and long-term contracts. In
addition, we employ risk and resource management best practices to
successfully minimize market risk, optimize assets, and expand our
capacities and market reach.
Market
growth and price volatility are producing unprecedented energy risk
management opportunities. To enhance those rewards for its
clientele, the Energy Merchant team consistently expands its range
of activities and the scope of its product lines. These currently
include:
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Firm
Fixed Pricing
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Leveraged Fixed Price
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Crude
Oil Based Pricing
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Variable/Index Based Pricing
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Escalating/De-escalating Pricing
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Off
Season/Deferred Pricing
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Asset-Backed Pricing
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Regional Supply
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Fuel
Switching
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Caps,
Floors, and Range-Based
Services
Energy Merchant offers a variety of fuel physical supply programs that are designed to
protect margins, lock in a budget, and guarantee supply. Each of the programs works best under certain market conditions.
Energy Merchant works with it's customers to create innovative
programs tailored to the customer's specific needs including:
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Protecting a budget with a fixed price for future deliveries
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Purchasing individual loads at the rack without future commitments
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Protecting against local price spikes by indexing to a widely
published price (NYMEX, PLATTS, OPIS)
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Gaining
economic benefits by bulk purchases in spot markets even though
customer purchases only truckload quantities
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Locking
in weak market pricing environment for future deliveries
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Providing physical supply tied to a market hedge for accounting
simplicity
Target industrial and commercial customers can realize optimal
results with Energy Merchant programs in key business sectors. These
identified sectors include oil jobbers, government agencies,
municipalities, transportation fleets, truck stops, marine,
utilities, and other commercial/industrial customers who require
consistent, managed fuel supplies.
Benefits
Our
flexible programs allow Energy Merchant customers to fix input
costs, lock-in output prices, or secure gross profit margins. They
also can optimize forward ranges from one month to 5 years. Some
strategies even permit a profit sharing structure based on early
contract termination when favorable market conditions arise.