Hedge Strategy and Advisory Services
Expert Guidance to Design, Implement, and Sustain Your Hedge Program
Kase works directly with energy producers and consumers to develop custom hedge strategies, establish risk management policies and procedures, and provide ongoing advisory support for organizations using the Kase HedgeModel and Kase ezHedge — ensuring your hedge program is built around your goals, your risk appetite, and your organization’s specific exposure.
Built for Organizations That Need More Than a Model
Kase’s hedge strategy and advisory services are designed for energy market participants at any stage of their hedging program — from organizations building a formal program for the first time to experienced hedgers who need ongoing analytical support and custom analysis:
HedgeModel and ezHedge Subscribers
Ongoing strategy support for organizations already using Kase’s hedge tools — including weekly advisory calls, custom analyses, and guidance on specific hedge decisions as market conditions evolve.
Organizations Without a Formal Hedge Program
Comprehensive program design from the ground up — including goal setting, risk appetite determination, policy development, instrument selection, and implementation planning.
Organizations With Existing Programs to Review
Independent review of existing hedge policies, procedures, and strategies for conformity with standard industry practices and alignment with current organizational goals.
Energy Producers With Complex Exposure Curves
Custom model development for organizations with variable production or usage curves, or proprietary price streams such as formula-based liquids pricing, that do not fit standard hedging frameworks.
Finance, Treasury, and Risk Management Teams
Analytical and advisory support for internal teams responsible for hedge program execution, governance reporting, and risk policy compliance — including VAR analysis, basis hedging, and stress testing.
Organizations Supporting Their Own Clients
Banks, advisors, and energy service companies that want to enhance their client offering by bundling Kase’s hedge services or providing regular market and hedging intelligence to their own client base.
More Than Software. A Partnership in Hedge Program Success.
The Kase HedgeModel and ezHedge provide statistically derived hedge triggers — but a successful, sustainable hedge program requires more than accurate signals. It requires clearly defined goals, a strategy calibrated to the organization’s risk appetite, disciplined policies and procedures, and ongoing analytical support to navigate the decisions that arise as market conditions change.
Kase works directly with clients to provide all of these elements. Our advisory work begins where the models end — translating hedge triggers into specific organizational decisions about when to hedge, how much to hedge, which instruments to use, how to scale in, and when to restructure or remove hedges. The result is a hedge program that is not just statistically grounded but operationally complete.
Every engagement is custom. Kase does not apply a generic framework — we develop strategy and provide support based on each client’s specific commodity exposure, risk appetite, organizational structure, and business objectives.
What We Do
Kase’s hedge strategy and advisory services fall into two areas that can be engaged independently or together — program design for organizations building or restructuring their hedge framework, and ongoing support for organizations actively running a hedge program:
Hedge Program Design and Risk Management Planning
Kase uses a step-by-step process to assist in the development of a custom hedge strategy — guiding the creation of a rule-based action plan that starts with goals and risk appetite, and flows through to specific execution decisions. Engagements may include:
- Development of a formal hedge goal statement aligned with business objectives
- Determination of risk appetite and risk limits
- Goal and strategy matching — calibrating the hedge program to the organization’s tolerance for cost variability and budget risk
- Setting statistical hedge triggers for opportunistic and protective strategies
- Determination of volumes to be included in the hedge program
- Selection of financial instruments and instrument sequencing
- Scale-in strategies, hedge removal, and restructuring guidelines
- VAR and exposure analysis
- Basis, regression, and diversification analysis
- Controls, exposure reporting, and organizational reporting flow
- Deal capture and confirmation procedures
- Staffing and infrastructure requirements
- Training for all individuals involved in the hedge process
Review of Existing Policies and Procedures
For organizations with an existing hedge program, Kase provides an independent review of current policies, procedures, and strategies for conformity with standard industry practices — identifying gaps, inconsistencies, and opportunities for improvement relative to the organization’s stated hedge goals and risk appetite.
Ongoing Hedge Strategy Support
For organizations actively using the Kase HedgeModel or ezHedge, ongoing strategy support provides the advisory layer that connects model output to specific, timely hedge decisions. Support typically includes:
- Weekly conference calls to address specific client issues, current market conditions, and hedging implications
- Discussion of HedgeModel or ezHedge output in the context of the client’s current hedge position and goals
- Guidance on specific hedge strategies as market conditions evolve
- Custom basis and regression analyses for the client’s specific exposure
- Instrument selection and timing guidance for individual hedge decisions
- Support for hedge restructuring and removal decisions
Custom Model Development
For organizations whose commodity exposure does not fit a standard hedging framework, Kase develops custom analytical tools tailored to specific requirements:
- Variable production or usage curves — hedging programs calibrated to non-uniform exposure profiles
- Proprietary price streams — models built around formula-based pricing such as liquids indices, regional differentials, or custom benchmarks
- Custom basis hedging analysis for organizations with exposure to regional price differentials
- Customized stress testing for specific price scenarios and risk conditions
Supporting Your Clients
Banks, energy advisors, and commodity service companies can enhance their client offering by partnering with Kase. Options include bundling Kase hedge services directly into a client package, or engaging Kase to provide regular market and hedging intelligence — such as a monthly conference call on market conditions and hedging implications — for delivery to your client base.
A Comprehensive, Custom Engagement — From Goals to Execution.
Kase’s advisory work is precisely tailored to each client’s business. Every engagement draws from a comprehensive analytical toolkit applied to your specific commodity, exposure structure, and organizational context:
Risk Appetite Determination
Working with your organization to define the appropriate balance between capturing favorable prices and protecting against adverse ones — the foundation of every effective hedge strategy.
Statistical Hedge Trigger Development
Deriving the specific price levels, strip structures, and timing conditions that define when and how to act — calibrated to your organization’s goals and the statistical behavior of your market.
Basis and Regression Analysis
Custom analysis of the relationship between your physical exposure and the financial instruments used to hedge it — essential for organizations whose exposure does not directly correlate to benchmark prices.
VAR and Exposure Analysis
Quantitative assessment of the value at risk in your current and proposed hedge positions, supporting informed decisions about hedge ratios, maturity, and instrument selection.
Policies, Procedures, and Controls
Development of a complete, documented hedge program framework — including formal goal statements, risk limits, decision models, deal capture procedures, and organizational reporting structures.
Ongoing Weekly Advisory Support
Regular conference calls to keep the hedge strategy current as market conditions evolve — translating HedgeModel and ezHedge output into specific, timely decisions for your organization.
Pricing
Ongoing Hedge Strategy Support
Ongoing advisory support is available as a complement to an active Kase HedgeModel or ezHedge subscription. Priced per commodity in addition to regular subscription fees.
| Service | Monthly Rate |
|---|---|
| Strategy Support — per commodity | $3,000/month |
| Maximum total (all commodities) | $8,000/month |
Ongoing strategy support is in addition to regular HedgeModel or ezHedge subscription fees.
Hedge Program Design and Custom Projects
Pricing for risk management planning, policy and procedure development, custom model development, and existing program reviews is based on the scope of each project.
Contact us to discuss your organization’s requirements and to request a proposal for any of these services.
Statistically Grounded. Operationally Complete. Since 1992.
Kase’s hedge advisory work is built on the same statistical and analytical foundations that underlie the HedgeModel and ezHedge — applied to the specific organizational and operational context of each client engagement. Every strategy we develop is:
- Statistically derived — hedge triggers, risk limits, and instrument guidance are grounded in quantitative analysis of market behavior, not opinion or convention
- Goal-driven — every recommendation flows from a clearly articulated set of organizational hedge objectives and a defined risk appetite
- Rule-based — strategies are designed to be systematic and auditable, supporting governance requirements and reducing the role of discretion in individual hedge decisions
- Custom-built — no two client engagements are the same; every analysis and recommendation reflects the specific commodity, exposure structure, and organizational context of the client
- Practical — Kase’s recommendations are designed for real-world implementation, with attention to execution logistics, instrument availability, counterparty considerations, and organizational capacity
Kase’s hedge strategy and advisory services are analytical and educational in nature, designed to inform and support each client’s own hedge execution decisions. They are not to be construed as investment advice, trading recommendations, or consulting. All hedging decisions remain the responsibility of the individual organization and its advisors.
Let’s Talk About Your Hedge Program
Whether you are building a hedge program from scratch, looking for ongoing support for your HedgeModel or ezHedge subscription, or need a review of your existing policies and procedures — Kase can help. Contact us to discuss your organization’s requirements and request a proposal.
