Hedge Book Risk Management

• Contract-Level Hedge Management
• Equip allows hedge contracts to be entered by counterparty, providing a more accurate quantification of risk. This feature ensures that all commodities, including NGLs and basis hedges, are accounted for and offers a complete view of the hedge book’s value.
• Automated Present Value and Mark-to-Market Calculations
• With Equip, you can calculate the Present Value (PV) of contracts across multiple price environments and perform mark-to-market (MTM) evaluations on option contracts with just one click. This automation streamlines the process, saving time and reducing the risk of errors.
• Comprehensive Exposure Analysis
• Equip enables exposure analysis by contract type, counterparty, stream, and other critical metrics, allowing you to identify and manage concentrated risks. Portfolio-level PV and MTM reports can be generated for peer groups, basins, company sizes, and more, providing a detailed overview of the hedge book.
• Portfolio and Credit Risk Management
• Equip integrates exposure analysis with other credit metrics, such as leverage, to highlight at-risk clients for default. This integration enhances portfolio management by providing a comprehensive view of financial health and risk exposure.
• Monte Carlo and Advanced Simulations
• Equip efficiently runs Monte Carlo simulations on the hedge book, a task that is complex and often unmanageable in traditional spreadsheets. This capability allows for more sophisticated risk assessments and scenario planning.
• Future Exposure Calculations
• Equip tracks derivative exposure over time, calculating Potential Future Exposure (PFE) to help you anticipate and manage future risks which is critical for proactive risk management.
• Integrated Black-Scholes Option Model
• Equip includes a built-in Black-Scholes option model calculator, allowing you to quickly and accurately value option contracts. This tool simplifies complex calculations that are often outsourced, reducing costs and increasing control.
• Interest and Basis Swaps Management
• Equip facilitates the calculation of interest rate swaps and dynamically manages basis swaps in relation to their primary index. This capability provides a complete solution for managing various types of derivative contracts.

• Accuracy and Reliability
• Equip’s centralized platform and automated tools minimize the risk of errors that are common in traditional models. By bringing all hedge management functions into one platform, Equip provides greater control and accuracy in your risk management processes.
• Time and Efficiency
• Equip streamlines the management and analysis of hedge books, drastically reducing the time spent on manual data entry, calculations, and error correction. This efficiency allows you to focus on strategic analysis and decision-making.
• Risk Management
• Equip’s advanced simulation tools, such as Monte Carlo simulations and future exposure calculations, enable you to assess risks more thoroughly and proactively. This enhances the overall risk management strategy, providing a more secure financial footing.
• Scalability and Flexibility
• Equip is designed to handle complex hedge portfolios with ease, offering scalable solutions that grow with your business. Whether managing a few contracts or a large, diverse portfolio, Equip adapts to your needs.

Equip’s Hedge Book and Risk Management module transforms the way financial professionals approach hedge management. By eliminating the limitations of traditional spreadsheets and providing advanced, automated tools, Equip empowers you to manage risk with precision and confidence. Equip your team with the tools they need to optimize hedge book performance and to achieve financial stability in an ever-changing market.