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Enron Mail |
Jeff,
I am a YPOer in the Rebel Chapter who was given your name from an IOS source as someone who could potentially help in this situation. As background, I sent this IOS request out last week: Description of Situation My highway construction company has been negatively impacted by price volatility in energy prices (fuel, natural gas, and asphalt cement). We offer long term, fixed price contracts to our clients yet must purchase our petroleum and energy-related products at spot market prices. Thus we are exposed to significant price adjustment risks. Type of Feedback Requested: Does anyone have experience using commodity contracts as an arbitrage strategy to offset the risks of potential price volatility in the energy sector? If so, do you have specific recommendations for how we should proceed? Thank you for any information you can offer. As I have investigated this further, I find no one in this industry (highway construction) who is purchasing futures to mitigate their energy cost exposure. I have spoken with folks who are doing this in the building supply sector with lumber futures. Do you have any thoughts or suggestions in this matter? Any input would be greatly appreciated. Many thanks, Michael Mangum Rebel Chapter President/CEO The Mangum Group, Inc. PO Box 31768 Raleigh, NC 27622-1768 919.571.7605 Phone 919.510.6740 Fax 919.868.8179 Mobile 919.845.3497 Home
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