Kodiak Fuels - Price Risk Consultants

1. Develop a detailed hedging program with specific price targets, volumes and tenor based on total demand and implied risk

2. Provide training in derivatives and risk management for senior management and the board of directors

3. Conduct a corporate risk – self assessment

4. Establish written policies for hedging

5. Develop a decision - Chain of command and define roles and responsibilities

6. Mark-to-Market daily with a specific distribution list

7. Provide adequate financial reserves to manage hedge risk

8. Establish a counterparty credit list detailing exposure and limits

9. Continue to develop and expand counterparties based on credit, performance and overall relationship

10. Establish potential margin warning signals

11. Manage Corporate accounting and detail quarterly and annual requirements for financial reporting

12. Provide independent support and supervision for market analysis, transactions, hedging decisions, Mark-to-Market and accounting

Our objective is to develop, with you, a cost effective, risk adverse program that keeps you competitive in the industry. Clients are utilizing several different programs that are very specific to their needs and managed within their financial tolerance.

We provide an outside accountability source to satisfy management’s need for assurances of checks and balances on transactions and Mark-to-Market valuations. We assist in insuring that Corporate Accounting requirements (like FASB 133) are satisfied.

It appears that a customized hedging program that effectively deals with volatile prices is a requirement to convince the financial community that a company is fiscally responsible. My Consultant/Client relationships provide an environment that is supportive of specific Client needs, demands competitive prices from the market, and maintains a pro-active hedging approach required by today’s volatile price environment.

We would like to earn a relationship with you of reliability, trust, confidence and comfort. It would be a pleasure to meet with you and evaluate beneficial opportunities in finance, purchasing, sales, product management, risk management, etc. Our objective would be to define and develop programs that manage price risk, specific to your needs and within your risk insurance cost tolerance.