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Assessing Credit Risk
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A Practical Approach
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Utilizing Technology to
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Press Releases

	Preem AB Selects Allegro Energy Trading and Risk Management Solution

	Allegro Expands ETRM Functionality for Global Power Markets

	Allegro Announces Enhanced Functionality for Natural Gas Trading & Logistics

	SUEK AG Selects Allegro Energy Trading and Risk Management System

Upcoming Events

Customer Summit
September 13-15, 2010
Dallas, Texas
Energy Risk Asia
September 27-28, 2010
Singapore
Platts 4th Annual European Refining Markets
September 27-28, 2010
Brussels, Belgium

Supporting Material

Case Study

A first purchaser company approached Allegro when they were facing several business challenges including declining margins, rising costs and consolidation, as well as constant software and technology conversions and upgrades. The company required a solution specifically designed to accommodate the accounting and financial data associated with purchases of crude oil at the wellhead.

Allegro was able to provide a comprehensive, integrated solution that encompassed all of the company’s business requirements and significantly improved the ability to capture the entire transaction lifecycle from wellhead purchase through settlement. This company can now run valuation of the purchased inventory and complete net forward, net back, and profit margin calculations. They benefit from a much more granular and comprehensive view of their financial and physical positions.

Petroleum First Purchaser ETRM Solutions

Allegro ETRM Solutions for Petroleum Allegro’s comprehensive solutions help first purchasers of petroleum with many of the challenges in the market today, such as the unique accounting requirements for proper netback and settlement calculations, optimization of logistics from points of production to points of sale, and the integration of hedging instruments to allow for proper position management and exposure understanding. Allegro’s First Purchaser solution provides more effective management of portfolios and a better understanding of positions, in real-time. This enables users to make more informed decisions when purchasing production at the wellhead and delivering it to a refiner or other end user. Additionally, the solutions allow first purchasers to meet compliance regulations, manage contracts, price, volatility, credit and other market risks.

Allegro’s comprehensive upstream solutions provide uniquely valuable tools across the first purchaser business process.

Allegro’s Contracts and Trading components allow comprehensive management of price, physical and credit risks. Users manage term and evergreen contracts, and use flexible pricing formulas, including discounts and premiums to spot index prices or other benchmarks.
Allegro’s extensive Physical Logistics components allow scheduling for transport by rail, pipe, truck, barge or ship with all associated data and documentation, including product quality data and other adjustment factors.
Allegro’s comprehensive financial components such as Credit, Currency, Simulation, Settlement and Net Valuation allow personnel to automatically perform complex calculations such as netbacks and prior period adjustments, closing out each month on time with unprecedented accuracy.

Optimal Software Components for Petroleum First Purchasers

Trade Execution - Provides tools to efficiently capture and confirm physical and financial trades for commodities.
Trade Strategy - Provides the ability to define trading strategies, which can be made up of existing positions and hypothetical positions, to allow for analysis of different trading scenarios while setting operational goals and limits.

Positions 8.0 - Provides comprehensive risk position reporting and viewing capabilities. This component allows reporting on Mark to Market, exposure, limit management, and profit and loss across the entire portfolio.
Optimization 8.0 - Calculates the incremental valuation of all possible dispositions of long and short commodity positions, based on market prices, transportation, storage, and processing information.
Simulation - Provides a set of tools to help analyze the impact to exposure and profit and loss resulting from movements in the market.
Credit 8.1 - Delivers advanced credit monitoring, analysis, scoring and rating, and overall counterparty credit management to accurately measure current and future exposure along with using robust credit risk models to accurately rate counterparty credit scores in a timely manner.

Pipeline 8.1 - Manages scheduling, nomination, transportation and actualization for commodities transported via pipeline, including NGLs, crude oil and refined products. Provides the ability to create and store pre-defined pipeline routes and plans with associated information such as product, carrier, and origin and destination locations, along with the ability to automate the creation of shipments per the predefined plans.
Truck 8.0 - Manages scheduling, nomination, transportation and actualization activities for commodities shipped via truck.
Vessel - Manages the scheduling, shipment and actualization of single or multiple commodities that are transported via vessel.
Barge - Manages the complexities of scheduling, shipment and actualization for any single or multiple commodities that are transported via barge.
Rail 8.0 - Manages scheduling, nomination, transportation and actualization activities for commodities shipped via rail, including liquid natural gas (LNG), coal, natural gas liquids (NGLs), crude oil and refined products.
Equity Production 8.1 - Assists in managing the marketing of oil and gas production, including balancing, nominations, measurement and variance analysis. With visibility from the property straight through to scheduling, companies can quickly generate production positions taking into account all right-to-market interest owner quantities.

Contracts 8.0 - Captures and manages all contract information across the enterprise and through the entire contract management life-cycle.
Settlement 8.0 - Provides the tools that settle and feed data to invoice physical, financial and other transactions associated with commodity transactions and logistical movements.
Net Valuation 8.0 - Enables the valuation of inventory along with the ability to complete net forward, net back, and profit margin calculations across commodities, including commodity value, transactional, and transportation costs.
Price 8.0 - Provides flexible tools to capture, create, and access pricing data and forward curves for all commodities, including coal, natural gas, electric power, crude, refined products and natural gas liquids (NGLs).
Currency 8.0 - Provides the solution to enable management of multiple currencies including the ability to capture currency exchange rates and currency trading.
Hedge 8.1 - Assists with hedge accounting and fair value disclosure requirements by providing robust tools for analysis and reporting such as Financial Instrument Management, Currency Management, Interest Rate Management, Fair Value Management, Fair Value Option Management and Disclosure Management.
Revenue 8.0 - Allows for revenue receipts to be allocated and ultimately distributed to interest owners, prepares revenue disbursements and supports regulatory reporting.
Property 8.1 - Streamlines management of property data, division orders, interest owners, conveyances and production forecasts for oil and natural gas production.
Emissions 8.1 - A dedicated component providing efficient, and manageable yet comprehensive capability to accommodate trade activity for either renewable energy credits or emissions certificates. This functionality is unique to the market, in that it not only supports current market conditions but allows customers to be ahead of the curve as mandates by various global requirements change.

Workflow - Alert-based workflow engine that automates business processes through task and approval tools and automated control management, as well as having the ability to seamlessly integrate with third-party software and database systems.
Price Connect 8.1 - Provides a standard interface to market prices from different data providers. This is a one way import of data from the market provider to Allegro to be used for pricing data.
Exchange Connect - Provides a standard interface to electronic trading exchanges to allow the submission and receipt of bid and offer data while allowing for execution and confirmation of transactions through the exchange. The interface is bilateral allowing for straight through processing of transactions from and to the exchange directly from the Allegro environment.
NETA Connect 8.0 - Allows market participants to interface with the NETA market system. The interface is bilateral allowing both submission and retrieval of volume, transaction status , forward positions and periodic reports.

Industries

Optimal Software Components for Petroleum First Purchasers