Hedging Structures

Coquest will assist you in educating your key personnel on hedging theory and structures, establishing your risk profile, establishing a risk strategy, opening accounts with both the Exchange and OTC counter parties, and in execution of the appropriate hedging structures.  We understand that the involvement of most corporations in commodity markets should be primarily about risk management, not about trading, and we can help to ensure that most of your time is spent in managing your business rather than monitoring commodity prices.

Take a look at some examples of basic hedging structures below (additional structures available):

Products: Crude Oil, Nat Gas, Diesel, Gasoline, NGLs, etc.

Three Way

affords producers downside risk protection at no cost while forfeiting some upside benefit but allowing additional participation in an upward market.

Three Way

COLLAR

affords producers downside risk protection at no cost while also allowing limited participation in an upward market.

NATURAL GASCRUDE OIL

FLOOR

establishes a minimum price for your production.

NATURAL GASCRUDE OIL

SWAP

establishes a fixed price for producers, without up front premium.

NATURAL GASCRUDE OIL

CAP

establishes a maximum price for your consumption.

NATURAL GAS