Financial Hedging Strategies for
Energy
We design and implement hedging strategies to mitigate price volatility in natural gas, propane, and other energy commodities, tailored to each client’s commercial activity and financial objectives.
We work with importers, power generators, suppliers, marketers, and large consumers that face exposure to price movement.
Commodities
Strategic natural gas supply
Through strategic partnerships, we provide comprehensive natural gas supply solutions tailored to the specific needs of companies across Mexico.
Competitive pricing
Thanks to agreements with leading market suppliers, we offer fair rates with no hidden costs.
Flexible supply solutions
We adapt to your routes, delivery points, and variable consumption, ensuring supply aligns with your timing and volume requirements.
Personalized advisory
Our team of experts designs custom energy strategies by analyzing contracts, consumption patterns, and future needs.
Sustainability
We implement solutions that optimize supply and help reduce emissions by improving energy efficiency.
Case Study
In February 2021, an unprecedented winter storm struck Texas, severely impacting the production and distribution of natural gas. This situation caused a drastic surge in natural gas prices across various reference hubs. For example, the spot price at the Houston Ship Channel (HSC) soared to $225 per million BTUs, while in Waha, Texas, prices spiked to $350 per million BTUs.
The Federal Electricity Commission (CFE), through its subsidiary CFE International, had natural gas supply contracts with Goldman Sachs. Goldman Sachs’ obligations were tied to a monthly natural gas price index, while CFE International was exposed to daily rates at certain hubs, such as Waha and HSC. During the storm, the daily price at these hubs increased nearly 100-fold, while the monthly index remained unchanged, resulting in an unexpected debt for CFE.
Goldman Sachs claimed a payment of $400 million for the transaction. After more than three years of litigation and an international arbitration in London, both parties reached a settlement in January 2025, where CFE agreed to pay $300 million to resolve the dispute.
If CFE had implemented a financial hedging strategy using derivative instruments such as futures or swaps, it could have locked in natural gas prices in advance, protecting itself from extreme market volatility.
This hedging would have allowed CFE to maintain stable procurement costs, even during adverse weather events, thereby avoiding the significant debt it faced and the subsequent legal dispute with Goldman Sachs.
Risk Management Training for Energy
We train finance, commercial, and operations teams to better understand derivative instruments, energy indices, and hedging strategies.