Transaction builds on the lead AEGIS has created in commodity and rate hedging.
The Woodlands, Texas, December 17, 2020 – AEGIS Hedging Solutions (“AEGIS” or the “Company”), a leader in technology and expertise for commodity and rate hedging, announced today that it has acquired Risked Revenue Energy Associates (“R^2”), a leading commodity trading advisor in energy hedging.
R^2, founded in 2001, was among the first commodity trading advisors to focus on hedging strategies for the energy sector. R^2 has worked with many of the sector’s leaders and created patented analytics used to manage hedging decisions. Wayne Penello and Andrew Furman of R^2 recently published Risk Is an Asset: Turning Commodity Price Uncertainty into a Strategic Advantage, to help leaders identify critical metrics, identify opportunities to take advantage of risk, and chart a financial path forward.
“R^2 has a world-class team and a client list filled with industry leaders. By combining AEGIS’ market-leading technology, R^2’s patented analytics, and the deep expertise across both firms, we are creating the go-to firm for companies looking to manage their commodity price and interest rate risk,” said Bryan Sansbury, Chairman and CEO of AEGIS.
With the acquisition of R^2, AEGIS now advises over 280 upstream oil and gas entities producing over 6,700,000 BOE/D of crude oil, natural gas and NGLs. Collectively, our team advised on over 92,000 hedge positions in the last 12 months. In addition, AEGIS helps companies hedge their refined products, metals, and interest rate exposures.
“I am incredibly proud of the firm we built at R^2 and I couldn’t be more excited about the opportunity to transition our colleagues and clients to AEGIS. AEGIS has reshaped our industry and opened up a significant lead through its technology capabilities. I look forward to the opportunity to integrate our people and analytics into AEGIS’ platform and deliver new capabilities to our clients,” said Wayne Penello, CEO of R^2.
AEGIS, formerly AEGIS Energy Risk, enables companies to manage their commodity price and interest rate risk through leading software and advisory capabilities. AEGIS provides unique insight into commodity and rate markets, develops and executes cash flow protection strategies, and manages all hedge program activities through a SaaS technology platform. AEGIS was recently named the Hedge Advisor of the Year for an unprecedented fourth consecutive year.
AEGIS is headquartered in The Woodlands, Texas, and has offices in Chicago, Dallas, Denver, Houston, Knoxville, and Pittsburgh. To learn more, visit AEGIS’ website at www.aegis-hedging.com.
R^2 is a full-service risk management consulting firm that works with clients to build hedge programs that protect value and accelerate growth by transforming corporate price risk into a strategic advantage. R^2 covers all services from analytics to hedge execution to trade capture, valuation and reporting. R^2 expertly manages any and all hedge program needs so its clients can focus on their core business.