AEGIS Hedging Solutions has announced the acquisition of Risked Revenue Energy Associates (R^2), a commodity trading advisor in energy hedging.

R^2, founded in 2001, was among the first commodity trading advisors to focus on hedging strategies for the energy sector. R^2 has worked with many of the sector’s leaders and created patented analytics used to manage hedging decisions.

Bryan Sansbury, Chairman and CEO of AEGIS, commented:

“R^2 has a world-class team and a client list filled with industry leaders. By combining AEGIS’ market-leading technology, R^2’s patented analytics, and the deep expertise across both firms, we are creating the go-to firm for companies looking to manage their commodity price and interest rate risk”.

With the acquisition of R^2, AEGIS now advises over 280 upstream oil and gas entities producing over 6,700,000 BOE/D of crude oil, natural gas and NGLs. Collectively, the team advised on over 92,000 hedge positions in the last 12 months. In addition, AEGIS helps companies hedge their refined products, metals, and interest rate exposures.

Wayne Penello, CEO of R^2, commented:

“I am incredibly proud of the firm we built at R^2 and I couldn’t be more excited about the opportunity to transition our colleagues and clients to AEGIS. AEGIS has reshaped our industry and opened up a significant lead through its technology capabilities. I look forward to the opportunity to integrate our people and analytics into AEGIS’ platform and deliver new capabilities to our clients”.

The deal marks yet another step in the expansion of AEGIS. About a month ago, the company announced the acquisition of Nexidus Commodities, a commodity trading advisor and pioneer in metals hedging.