Apis Point Energy offers price stability solutions for wholesalers and commercial end-users through fixed-price, ceiling, or floor forwards on deliverable physical petroleum products and NGLs. The company mitigates timing and basis risk by transferring these exposures via structured physical forward transactions. This enables clients to protect profit margins, enhance cash-flow predictability, and better manage commodity price risk.
Funding
Funding not disclosed
Founders
Product
Problem
Energy wholesalers and commercial end-users face uncertainty due to the volatility of commodity markets, making it difficult to predict costs, protect profit margins, and manage cash flow. Fluctuations in the price of refined products and natural gas liquids (NGLs) can significantly impact financial stability and strategic planning.
Solution
Apis Point Energy offers price stability and risk management solutions through ceiling, floor, and fixed-price forward contracts on physically deliverable petroleum products and NGLs. By providing these hedging instruments, Apis Point Energy enables wholesalers and end-users to minimize timing and basis risk, transferring that risk from their customers to Apis Point Energy. These customized contracts utilize local prices for local delivery points, tailored to the unique timing of delivery, allowing customers to broaden their offerings, protect profit margins, and increase cash-flow predictability. Apis Point Energy leverages expertise in commodity market analytics to effectively hedge its deliverable supply and offer fixed-price energy contracts.
Target Audience
The primary customers are energy wholesalers and commercial end-users seeking to manage commodity price risk associated with refined products and NGLs.
Features
- Ceiling, floor, and fixed-price forward contracts on deliverable refined products and NGLs
- Customized contracts using local prices for local delivery points
- Mitigation of timing and basis risk through physical forward transactions
- Expertise in commodity market analytics for effective hedging