Latest news with #MattMarshall
Mint
7 hours ago
- Business
- Mint
Oil hedging volumes hit new records as US producers rush to lock in soaring prices
Hedging activity spikes as producers lock in higher prices US crude futures jump after Israel strikes Iran Oil producers need $65 a barrel on average to profitably drill HOUSTON, - Israel's surprise attack on Iran last week had oil prices spiking which sent U.S. producers scrambling to lock in the price gain, driving record hedging volumes that will help shield them from future price swings. West Texas Intermediate crude futures rose further this week, closing on Friday at around $75 a barrel. This prompted U.S. producers to secure additional price gains through 2026, having already driven hedging activity on the Aegis Hedging platform to a record high last Friday. Aegis Hedging, which handles hedging for roughly 25-30% of U.S. output, according to internal estimates, saw a record volume and greatest number of trades done on its trading platform on June 13. The U.S. produces some 13.56 million barrels per day of oil, according to the latest government figures. U.S. crude futures jumped 7% on June 13 to around $73 a barrel, after Israel struck Iran, the largest single day rise since July 2022. Prices had been hovering under where many producers would opt to hedge, hitting a four-year low of $57 a barrel in May as OPEC started hiking output while U.S. President Donald Trump waged a trade war. The jump on June 13 gave traders an opportunity to lock in prices for their barrels not seen in several weeks. When prices react to risk-related events - such as Israel's attack on Iran - as opposed to supply-and-demand fundamentals, the front of the oil futures curve rises more than later contracts, influencing whether producers opt for short- or long-term hedging strategies, according to Aegis Hedging. "In this case it was probably a six-month effect," said Matt Marshall, president of Aegis Hedging. Oil producers need a price of $65 a barrel on average to profitably drill, according to the first quarter 2025 Dallas Federal Reserve Survey. U.S. crude futures closed below $65 every day from April 4 to June 9, according to LSEG. "We stay disciplined and pay close attention to market volatility. We watch for accretive pricing to our existing hedges and layer in hedges to reduce risk to our asset revenue as well as meet our reserve-based lending covenants," said Rhett Bennett, chief executive at Black Mountain Energy, a producer with operations in the Permian Basin. A reserve-based lending covenant refers to a type of loan producers can obtain, based on the value of the company's oil and gas reserves. "Producers recognized that this could be a fleeting issue and so they saw a price that was above their budget for the first time in a few months, and instead of doing a structure that would give them a floor which is below market, they opted to be aggressive and lock in," said Aegis' Marshall. Aegis' customers often have hedging policies in which a certain amount of production must be hedged by a certain time in the year. "Producers had two months of hedges that they needed to catch up on," Aegis' Marshall said. Traders on June 13 exchanged the most $80 West Texas Intermediate crude oil call options since January on the Chicago Mercantile Exchange, expecting more upside to prices. A total of 33,411 contracts of August-2025 $80 call options for WTI crude oil were traded that day on a total trading volume of 681,000 contracts, marking the highest volume for these options this year, according to CME Group data. This article was generated from an automated news agency feed without modifications to text.
Bloomberg
4 days ago
- Business
- Bloomberg
Oil Price Surge Sparks Burst of Hedging Among Shale Drillers
The surge in oil futures spurred by the initial missile attacks in the Middle East last week triggered a wave of hedging by producers seeking to lock in the higher prices, keeping some traders up late into the night. AEGIS Hedging Solutions LLC, a Woodlands, Texas-based firm that helps about 350 oil producers with hedging, handled the largest volume and greatest number of trades in its history on the night of June 12 after Israel struck nuclear sites across Iran, according to President Matt Marshall. Trades lasted until 11 p.m. that night and resumed at 7 a.m. the following day, he said.
CTV News
16-05-2025
- Automotive
- CTV News
Edmonton celebrating long weekend with a splash
The parking lot at Poplar Park Spray Park in north Edmonton. (Matt Marshall/CTV News Edmonton)
Yahoo
19-02-2025
- Business
- Yahoo
Retail Food Group Ltd (ASX:RFG) (Q1 2025) Earnings Call Highlights: Strategic Partnerships and ...
Release Date: February 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Retail Food Group Ltd (ASX:RFG) announced a significant partnership with Restaurant Brands International to bring Firehouse Subs to Australia, aiming to open 165 restaurants over the next decade. The company reported a 4.8% growth in its core cafe coffee bakery brands, demonstrating strong performance in a challenging retail environment. RFG successfully opened 25 new domestic outlets, significantly outperforming closures, and acquired 22 Chibo Expresso stores, enhancing its retail footprint. The company's underlying EBITDA increased by 4.2% to $16 million, supported by various initiatives that offset previous lease provisions. RFG's strategic focus on core brands and innovation, including a new IT investment plan, aims to future-proof its brands and enhance customer experience. The quick service restaurant (QSR) segment faced challenges with competitors promoting heavy discounts, impacting customer traffic. RFG closed 17 low-performing core brand outlets, which detracted from overall network sales results despite improving network quality. The company experienced a slight deterioration in customer count within the cafe coffee bakery segment, attributed to lower foot traffic in shopping centers. Corporate stores, particularly Gloria Jeans, underperformed compared to Donut King and Beefy's outlets, with plans to exit low-performing stores. The company faced ongoing challenges in the highly competitive QSR segment, with a need for further work to stabilize and grow this part of the business. Warning! GuruFocus has detected 3 Warning Signs with ASX:RFG. Q: Can you discuss how trading has been in the first quarter of the calendar year? A: Matt Marshall, CEO: We've seen continued strong performance in our core CCB brands with some stabilization in QSR. Beefy's is performing particularly well, up about 20% in the first seven weeks. QSR was fairly flat, down about 3%, which is an improvement. However, it's important not to get too excited about just seven weeks of trading. Q: Regarding the QSR segment, can you talk about store closures and the competitive landscape? A: Matt Marshall, CEO: Our multi-site operators are keen to grow their Crust network, and we have seen a net store increase compared to other large pizza players who are in net decline. We don't expect store numbers to decline in the next six months. Q: How do the recent coffee price increases relate to the commodity cost of coffee? A: Rob, CFO: The price increase will cover the current commodity cost. We aim to minimize shocks to the system rather than trade coffee as a commodity. We have decent scale across our business, which helps manage these costs. Q: What are the expected returns from the Firehouse Subs investment? A: Matt Marshall, CEO: Firehouse Subs fits our capital-light, easy-to-operate model. We expect strong unit economics and plan to prove the model with company stores in the first three years before sub-franchising in year four. Q: Can you provide insights into franchisee profitability and the expansion opportunity for your brands? A: Matt Marshall, CEO: Our core brand strategy is improving network health, with average weekly sales up. While franchisees face trading pressures, our best operators continue to expand. We have benchmarked franchisee P&Ls favorably, giving us confidence in our expansion plans. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
18-02-2025
- Business
- Yahoo
Firehouse Subs® blazing a trail to Australia
Iconic sub sandwich chain plans to open 165 restaurants across Australia in next 10 years TORONTO, Feb. 18, 2025 /PRNewswire/ - Firehouse Subs®, the iconic American sub sandwich restaurant chain renowned for delivering large, flavorful portions and exceptional customer experience, is coming to Australia this year. Retail Food Group (RFG), Australia's largest multi-brand retail food franchisor, intends for Firehouse Subs to become the #1 sandwich choice in the country, with plans to open 165 restaurants in 10 years, and the first restaurant planned to open in Southeast Queensland in late 2025. Founded in Florida, U.S., in 1994 by two former firefighter brothers, Firehouse Subs is celebrated for its made-to-order sandwiches, each layered with premium meats and cheeses sliced in-house and then steamed hot to bring out delicious and bold flavours. The brand lives up to the founders' original vision to be a restaurant where people can come and enjoy hot and hearty portions with quality service. Its products frequently rank among the very best in U.S. consumer surveys for food quality and taste. This marks the entry into the Asia-Pacific region for the brand, through a development and franchise agreement between a subsidiary of the parent company, Restaurant Brands International (RBI), one of the world's largest quick service restaurant companies, and RFG. RFG is the owner of popular brands Gloria Jeans Coffees, Donut King, Brumby's Bakery, Beefy's Pies and Crust Pizza. Thiago Santelmo, President of RBI International, said: "We are excited to expand Firehouse Subs in the Asia-Pacific region, bringing our iconic sandwiches and rich brand heritage to Australia. This is made possible through our partnership with RFG, whose deep local expertise will be instrumental in delivering an outstanding guest experience." RFG Chief Executive Officer Matt Marshall said the introduction of Firehouse Subs to the growing A$1.7bn sandwich market in Australia represented a tremendous addition to RFG's suite of high-performing food brands and an exciting opportunity for Australians to enjoy this iconic food brand. "I am convinced that Australians have never tried anything like the quality and flavour of Firehouse Subs®. This is a brand that is all about the highest quality sandwiches with exceptional service," he said. "We couldn't ask for a better partner than RBI, bringing global scale and new market entry expertise." The Firehouse Subs® menu includes signature products such as the Hook and Ladder, Firehouse Italian, and the Firehouse Beef & Cheddar Brisket. Mr. Marshall said RFG is expected to open 15 company-owned restaurants in the next three years, before launching franchising opportunities in year four. The Firehouse Subs® brand caters for a range of small and large store formats which provides flexibility in reaching consumers in a wide variety of locations. RFG's rights to open and franchise stores after 2027 are subject to the satisfaction of certain conditions. The launch of Firehouse Subs® is expected to support thousands of careers over the next decade, including construction, supply chain and distribution, head office support, and restaurant employees and management. Firehouse Subs is a growing and exciting brand boasting over 1,300 restaurants across the U.S., Canada, Switzerland, Mexico, Albania and the United Arab Emirates, with plans to open its first restaurant in Brazil later this year. The brand is built on decades of fire and police service and is committed to saving lives through grants for equipment, training and support to emergency workers. About Retail Food Group Limited RFG is a global food and beverage company headquartered in Queensland. It is Australia's largest multi-brand retail food franchise manager and is the owner of iconic brands including Gloria Jean's, Donut King, Brumby's Bakery, Crust Gourmet Pizza and Beefy's Pies. The Company holds the exclusive licence to grow Firehouse Subs restaurants in Australia and expects to open the first restaurant in 2025. RFG distributes high quality pies from our Sunshine Coast Bakery and coffee through our Sydney Roastery. For more information about RFG visit: About Firehouse Subs® Firehouse Subs® is a restaurant chain with a passion for hearty and flavourful food, heartfelt service, and public safety. Founded in Jacksonville, Florida in 1994 by two brothers and former firefighters, Firehouse Subs is a brand built on decades of fire and police service, hot and hearty subs piled high with the highest quality meats and cheeses and its commitment to saving lives through the establishment of the non-profit Firehouse Subs Public Safety Foundation®. Firehouse Subs is part of of Restaurant Brands International Inc. ("RBI"), one of the world's largest quick service restaurant companies with nearly US$45 billion in annual system-wide sales and over 32,000 restaurants in more than 120 countries and territories. RBI owns four of the world's most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®. Enjoy more subs. Save more lives. To learn more, visit and follow us on Facebook, Twitter and Instagram. Forward-Looking Statements This press release contains certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events, initiatives and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. These forward-looking statements include, without limitation, statements about our expectations regarding the ability of the Firehouse Subs business in Australia to open 165 restaurants in 10 years, including 15 stores in the first three years, the ability to sub-franchise stores beginning in year four, consumer demand for the product and creation of thousands of career opportunities. The factors that could cause actual results to differ materially from RBI's expectations are detailed in filings of RBI with the U.S. Securities and Exchange Commission and with the securities regulatory authorities in Canada, such as its annual and quarterly reports and current reports on Form 8-K and include the following risks: ability to meet conditions to continue opening and to franchise restaurants after 2027, risks related to the ability to successfully implement its domestic and international growth strategy and risks related to its international operations; risks related to the ability to compete in an intensely competitive industry; global economic or other business conditions that may affect the desire or ability of our customers to purchase the products; the relationship with, and the success of, franchisees and risks related to the franchised business model; supply chain risks, and the effectiveness of marketing and advertising programs. Other than as required under applicable laws, we do not assume a duty to update these forward-looking statements, whether because of new information, subsequent events or circumstances, change in expectations or otherwise. View original content: SOURCE Restaurant Brands International Inc. Sign in to access your portfolio
