Case Studies
We take great pride in the results we get for our clients. From Producers with fuel delivery issues, to Consumers trying to predict energy costs, to Market Participants using our guidance to make better sense of the markets, our results speak for themselves. See how our comprehensive risk management approach gets results beyond the expected.
Facilities Energy Management:
On behalf of a large hospitality client in New Jersey, Mobius negotiated a large multi-year electricity contract to provide fixed price electricity for the client’s clustered set of locations in South Jersey. After completing an introductory Request for Proposal (RFP), Mobius narrowed the field of potential suppliers down to three and negotiated an additional $230,000 of savings from “the best offer” on the day the transaction was completed. Since Mobius NEVER stands between a client and a supplier, all of the additional savings went to the client.
Industrial Client Energy Management:
Mobius identified an opportunity for a large domestic industrial client with continuous 24/7 furnace operations to begin purchasing natural gas from a third party supplier. Mobius administrated a Request for Proposal (RFP) and negotiated a transaction that saved the client over $130,000/year for one location. The savings resulted from a combination of reduced price, improved volume flexibility and better value sharing in the optimization of assets.
Diesel Portfolio Case Study:
Working with a 70 million gallon annual diesel consumer in 2010, Mobius deconstructed and analyzed the company’s enterprise-wide diesel procurement and risk management program. The process included reviewing all buying practices, sales contracts and treasury risk management program. Mobius discovered the treasury department was hedging 100% of the diesel exposure without any regard to the recovery mechanisms built into the sales contracts. In short, the client was over-hedged and not recovering the costs they intended to recover. Mobius developed a programmatic approach to their diesel risk management program that included cross communication between the treasury department, marketers and procurement departments. In addition, we worked with their legal department to draft contract language that accurately depicted the intended method for recovering diesel surcharges.
Electricity Procurement Case Study:
In 2011, on behalf of a large airline company, Mobius negotiated a multi-year electricity contract to provide fixed price electricity for the client’s deregulated hubs based on a strategy developed for the client in the previous year. After closely monitoring the strategy and completing an introductory Request for Proposal (RFP), Mobius narrowed the field of potential suppliers down to three and the final contract resulted in a $400K savings to client on the execution services provided and a year on year annual savings to the client of $8.7M. In addition, Mobius was able to secure three years of credit capacity for our client which historically has been unobtainable.
Natural Gas Procurement Case Study:
In 2010, on behalf of a large industrial client, Mobius identified an opportunity to merge the procurement needs of two facilities thus creating purchasing leverage with the suppliers and reducing the amount of overall transportation capacity required by the client. Mobius administrated a Request for Proposal (RFP) and negotiated a transaction that saved the client over $450,000/year for two locations. The savings resulted from a combination of reduced price, higher capacity utilization on a smaller quantity of transportation, and improved volume flexibility.
Invoice and Utility Rate Schedule Audit:
A leading hospital chain engaged Mobius to review its utility billings in several states. The analyses involved all electricity, natural gas, propane, and water utility services for a period of three years. Mobius reviewed all applicable tariffs, billing histories, usage patterns, and other pertinent factors. Benchmarks for usage were created for each site to allow the client to immediately assert improved control of these expenses, and to produce benefits extending for years into the future. Mobius identified over $2 million of savings through bill recovery, alternative rate schedule applications, and other actions.
Producer Protection:
A producer client was required to hedge 60% of its PDP production to lock in a known borrowing base on a $700mm transaction. The lenders showed several complex options to manage the risk from PSA to close. The transactions would have added great value to the hedge provider; however, they added little value to the producer. Mobius redesigned the hedge structure for the producer, such that the producer had a better hedge product and was in control of its own destiny. In executing a simpler structure, with Mobius by its side, the producer was better protected and avoided paying $4M in unnecessary transaction costs.
