Layered Hedging Strategy

Layered Hedging refers to the strategy of:

While strategic layered hedging requires intense daily management, it takes advantage of the numerous purchasing options available, provides the flexibility needed to leverage market volatility, and can be customized for each location. It is predicated on the belief that in an unpredictable market, the best approach is to make multiple purchases of small amounts of energy over a period of time (Dollar Cost Averaging), which limits exposure to the highs and capitalizes on the lows, mitigates risks, reduces volatility, and increases budget certainty.

Over the past 10 years, when compared to fixing 100% of their energy costs at once, Prospect Resources’ clients saved an average of 16% and reduced price volatility by 60%.

Engage PRI to develop, manage, and execute your energy strategy.

 

Annual Layered Hedging

Monthly Layered Hedging

Layered Hedging mitigates risks, reduces volatility, increases budget certainty and stability, and reduces energy expenditures.