Yates Petroleum Corporation, a New Mexico-based petroleum exploration and production company, has implemented SunGard's Kiodex Risk Workbench for commodity risk management and hedging.
Yates is using Kiodex to produce an independent mark-to-market valuation of hedges in order to better understand and manage its exposure to volatile energy prices.
A Web-based commodity risk management solution delivered as a Software-as-a-Service (SaaS), SunGard's Kiodex integrates trade capture, valuation models, risk measurement, financial reporting and independent market data. Kiodex's risk analysis tools, market data and Value at Risk (VaR) capabilities will help Yates to better recognize and predict margining and cash requirements from counterparties. Providing an automated, Web-based environment, Kiodex's SaaS delivery model will help Yates to simplify implementation, accelerate time-to-market, and reduce ongoing maintenance and support costs.
JB Smith, marketing manager at Yates Petroleum Corporation, said, "We chose SunGard's Kiodex to help us achieve desired rates of return on petroleum drilling and acquisition targets. Kiodex helps us to better define, execute and manage our hedging objectives, as well as to save on trade execution costs and gain improved visibility into our exposure and possible hedging alternatives."
Ben Jackson, chief operating officer of SunGard's Kiodex business unit, said, "With increased volatility in petroleum markets, companies active in energy production require a comprehensive risk tool to accurately capture price fluctuations and support decision making on their hedging programs. SunGard's Kiodex helps these organizations increase their hedging activities while managing larger exposures through greater risk controls."