SourceGas implements trading and risk management solution
Allegro Development announced that SourceGas has completed the successful deployment of the Allegro 8 platform across its natural gas operations. Allegro provides SourceGas the ability to capture physical and financial natural gas trades, manage transportation, actualization and invoicing on a single, integrated solution.
SourceGas is a natural gas local distribution utility headquartered in Lakewood, Colorado, with operations in Arkansas, Colorado, Nebraska and Wyoming. The company serves nearly 410,000 customers and operates 17,940 miles of distribution, gathering and transmission pipelines, as well as storage facilities.
“Allegro’s implementation approach was very sound and communication with Allegro was a key to our success. Project execution was very predictable, and Allegro did a good job throughout the project on staying current, which really helped us manage our budget,” said Michael Catterall, SourceGas’ director of enterprise solutions. “As a result, we have already experienced a vast improvement in transparency into our overall operations, and are extremely pleased with the consistent and supportable results we’re achieving.”
The Allegro 8 implementation involved replacing various legacy applications and spreadsheets with a platform to manage and provide transparency into front, middle and back office business activities. Among the benefits Allegro brings to SourceGas’ complex natural gas business:
• Comprehensive risk management including real-time Mark-to-Market (MtM) reporting, Profit & Loss, option valuation, and simulation
• Ability to easily capture physical and financial options, and financial swaps
• Monitor counterparty credit, margin and exposure liabilities management, margin call calculations with a reverse margin call if credit tolerance is broken
• Real-time settlement and accurate invoicing
• Improved decision-making with the ability to capture product forecast and costs to determine market and supply positions
• Fully integrated trading and logistics enables accurate calculation of transportation costs and capture of all scheduling and commodity fees
• Ability to create daily short term trades to meet demand.
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