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Yates Petroleum Implements SunGardís Kiodex SaaS Solution for Energy Hedging and Risk Management


Yates Petroleum Corporation, a New Mexico-based petroleum exploration and production company, has implemented SunGardís Kiodex Risk Workbench for commodity risk management and hedging. Yates is using Kiodex to produce an independent mark-to-market valuation of hedges in order to better understand and manage its exposure to volatile energy prices.

A Web-based commodity risk management solution delivered as a Software-as-a-Service* (SaaS), SunGardís Kiodex integrates trade capture, valuation models, risk measurement, financial reporting and independent market data. Kiodexís risk analysis tools, market data and Value at Risk (VaR) capabilities will help Yates to better recognize and predict margining and cash requirements from counterparties. Providing an automated, Web-based environment, Kiodexís SaaS delivery model will help Yates to simplify implementation, accelerate time-to-market, and reduce ongoing maintenance and support costs.

JB Smith, marketing manager at Yates Petroleum Corporation, said, ďWe chose SunGardís Kiodex to help us achieve desired rates of return on petroleum drilling and acquisition targets. Kiodex helps us to better define, execute and manage our hedging objectives, as well as to save on trade execution costs and gain improved visibility into our exposure and possible hedging alternatives.Ē

Ben Jackson, chief operating officer of SunGardís Kiodex business unit, said, ďWith increased volatility in petroleum markets, companies active in energy production require a comprehensive risk tool to accurately capture price fluctuations and support decision making on their hedging programs. SunGardís Kiodex helps these organizations increase their hedging activities while managing larger exposures through greater risk controls.Ē

* SunGard Financial Systems is pursuing a visionary initiative to transform some of the key functionality of its core systems into components to form a new software development and on-demand delivery environment called Infinity. Infinity enables financial institutions to develop and deploy custom applications, integrating SunGard components with their own proprietary or third party components. Infinity uses SunGardís Common Services Architecture (CSA), a service-oriented architecture (SOA) development framework, offering business process management (BPM) and a virtualized, software-as-a-service (SaaS) infrastructure.

About Yates Petroleum Corporation
Yates Petroleum Corporation is a private, family owned, independent oil and gas company with second, third and fourth generation family members involved in management. Corporate headquarters are located in Artesia, NM with satellite offices in Denver, Colorado; Rock Springs, Wyoming and Gillette, Wyoming.

Yatesí origins are in the Permian Basin where the company drilled the original discovery well in southeast New Mexico in 1924. Yates is now active in 13 states operating about 5,700 wells and has an ownership interest in over 4,400 wells operated by others. The vast majority of the production is located in New Mexico and Wyoming. Yates has been active in the Rockies since the 1960ís and held firm transportation rights on Permian or Rockies interstate pipelines since 1988. Yates companies are one of the largest owners of federal leases in the country. Yatesí gas gathering affiliates are Agave Energy Company in New Mexico and Rowdy Pipeline LLC in Wyoming. Agave and Rowdy have a combined throughput of 390,000 Mcf/day of gas and operated assets including 2,000 miles of pipeline, 101,000 HP of compression and 5 processing/treating plants. Visit Yates Petroleum Corporation at


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