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WEX Extends Its Existing Fuel-Price Risk Management Program

February 26, 2014

SOUTH PORTLAND, Maine--(BUSINESS WIRE)-- WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, today announced that it has extended its existing fuel-price risk management program through the third quarter of 2015.

On February 20, 2014, the Company purchased instruments to cover a portion of its anticipated domestic fuel-price-related earnings exposure for the first, second and third quarters of 2015. At this time, WEX has hedged approximately 60% of its first quarter 2015 exposure, 40% of its second quarter and 20% of its third quarter 2015 exposure. Going forward, the Company intends to hedge approximately 60% of its domestic fuel-price-related earnings exposure in every quarter on a rolling basis.

The instruments are designed to enhance the visibility and predictability of the Company's future earnings. The program uses instruments that create a "costless collar" based upon both the U.S. Department of Energy's weekly diesel fuel price index and NYMEX unleaded gasoline contracts. The February purchase locked in a fuel price range of approximately $3.39 to $3.45 per gallon. The following table states the approximate range of the collar and percentage of fuel-price-related earnings exposure:

        Q1     Q2     Q3     Q4     Q1     Q2     Q3
2014 2014 2014 2014 2015 2015 2015
 
Average low end of range $3.38$3.36$3.37$3.34$3.34$3.36$3.39
Average top end of range $3.44$3.42$3.43$3.40$3.40$3.42$3.45
Approximate % locked in 60% 60% 60% 60% 60% 40% 20%
 


About WEX Inc.

WEX Inc. (NYSE: WEX) is a leading provider of corporate payment solutions. From its roots in fleet card payments beginning in 1983, WEX has expanded the scope of its business into a multi-channel provider of corporate payment solutions representing more than 7.7 million cardholders and offering exceptional payment security and control across a wide spectrum of business sectors. The Company’s operations include WEX Bank, Fleet One, Pacific Pride, rapid! PayCard, WEX Australia, WEX New Zealand and WEX Europe, as well as a majority equity position in UNIK S.A., Brazil. WEX and its subsidiaries employ more than 1,400 associates. For more information about WEX, please visit http://www.wexinc.com.



WEX Inc.

News media contact:

Jessica Roy, 207-523-6763

Jessica.Roy@wexinc.com

or

Investor contact:

Michael E. Thomas, 207-523-6743

Michael.Thomas@wexinc.com

Source: WEX Inc.


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Source: Business Wire


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