Parallel Petroleum has selected enterprise risk management software provider Triple Point’s Commodity XL for Fair Value Disclosure to provide credit-adjusted mark-to-market and fair value level assignment for its energy commodity derivative transactions.
Parallel uses financial collars and swaps to hedge price movements in natural gas and crude oil. Triple Point’s fair value disclosure software provides the company with the tools and systems to ensure consistency and comparability of fair value measurements and the disclosure of credit-adjusted mark-to-market assumptions and valuations for both assets and liabilities by counterparty, said Triple Point.
Additionally, Commodity XL for Fair Value Disclosure provides Level 3 roll-forward activity and schedules and enables Parallel to track position by counterparty and perform sensitivity analysis, added Triple Point.
Elie Zabal, senior vice president of treasury management and regulatory compliance solutions at Triple Point, said: To a large extent, the financial crisis continues to be perpetuated by the simple loss of confidence. Triple Point’s FAS 157 solution ensures the consistency and auditability of fair value level assignments and the business transparency that stakeholders demand to confidently do business in today’s volatile environment.