Celebration of Life for Chris Allen

Date: Friday October 20, 2023 
Time: 3pm, reception to follow
Location: Choice Memorial
Address: #105 - 4715 13 St. NE, Calgary, AB (McKnight & Deerfoot)
Website: www.choicememorial.com
Obituary: https://www.choicememorial.com/memorials/christopher-allen/5307976/index.php#details


In lieu of flowers the family has requested donations in memory of Chris to one of the following charities:

Dulcina Hospice at St. Marguerite Manor: https://www.chpca.ca/donate/

Unit 47 Foothills Medical Center: Foothills Medical Center Donation

Pawsitive Match: Pawsitive Match Donation

Calgary Food Bank: https://www.calgaryfoodbank.com/donate/

Notices and e-cards can be directed to cfallen@gmail.com.

If you prefer to give the gift of service, the family would be honored by a simple act of goodness in honor of Chris.

Chris Allen

October 16, 2023

It is with profound sadness that we accept the departure of our friend and colleague Chris Allen. Chris was core to the Madstone Consulting Group and is irreplaceable. Words can never truly express our gratitude to Chris and his family for his immeasurable contributions on a professional and personal level. Those who had the pleasure of working with Chris were always left better. Chris had unique gifts in logic, programming, systems, strategy, and solutioning that are already missed by the Madstone Group and our clients. He shared his skills and knowledge unconditionally and made each person feel important and unique. To those clients who supported Chris in his final year of work, on behalf of Chris, his family, and the leadership team at Madstone, we are unable to find the words to express our deep gratitude. We hope his work product remains in use for many years to come.  

Chris tragically lost his battle with cancer on October 16, 2023. We appreciate his strength, courage, and unwavering commitment to remaining his true self throughout his battle. Chris never let his challenge change his optimism, sense of humour, and care for his clients, friends, and family. Celebration of Life arrangements are being made by the family and will be posted shortly for those who can attend. There is a Thankbox digital board for you to share with his family your words of appreciation for the impact Chris has left with you. https://www.thankbox.com/app/thankbox/eKGDtLR8

In lieu of flowers the family has requested donations in memory of Chris to one of the following charities:

Dulcina Hospice at St. Marguerite Manor: https://www.chpca.ca/donate/

Unit 47 Foothills Medical Center: Foothills Medical Center Donation

Pawsitive Match: Pawsitive Match Donation

Calgary Food Bank: https://www.calgaryfoodbank.com/donate/

Notices and e-cards can be directed to cfallen@gmail.com.

If you prefer to give the gift of service, the family would be honored by a simple act of goodness in honor of Chris.


To Hedge or Not to Hedge Airline Fuel Costs?

June 16, 2016

There is no shortage of dialogue on the positives of airlines hedging annual fuel requirements. Most energy trading professionals are astounded that many airlines do not hedge their fuel purchases. What trading desk wouldn't drool at the prospect of billions in easy, repeatable, hedging business annually? In an industry where fuel can comprise upwards of 30% of total annual costs, it would seem at first glance to be short sighted not to hedge. Combined with increasing competition, world globalization, and shrinking margins - it would seem to many to be just plain common sense. A closer look into the airline business quickly reveals a few reasons why airlines may choose to remain unhedged.
  1. Fixed Costs of Participating Deals - airlines don't want the fixed cost associated with a participating deal structure (think option premiums). With tightening margins, many airlines simply cannot (or are unwilling to) sustain the additional cost of a participating deal without additional negative margin impact. 
  2. Avoidance of Fuel Surcharges - many airlines do not want to introduce a fuel surcharge to cover the costs of a hedge. Fuel surcharges are too noticeable in a highly competitive customer service industry. Even if the executive and board were ok with the anticipated negative customer sentiment, introducing a surcharge in a falling price environment is near impossible. A hedge originating in a rising price environment with a term that continues through a falling price environment will find an unforgiving market demanding the elimination of the Fuel Surcharges levied to cover the hedge cost; regardless of the intention and term of the original hedge. 
  3. Not Core Business - energy trading and risk mitigation is not a core function in many airlines. Many airlines prefer to "hedge" using core business lines - flight path optimization, network optimization, aircraft utilization, revenue & price management, and even fleet re-configuration. These more familiar business lines are central to the airline industry - while often energy hedging is not.
  4. Explaining the Hedge and MTM - explaining a hedging program can be complex and difficult even to a seasoned energy executive and board. Adjusting accounting entries for the hedge MTM and explaining these adjustments can be daunting and time-consuming and leave opportunity for confusion, irregularities, and actions that might be considered unnecessary.
  5. Press Coverage and Executive Motivation - When companies hedge they should be looking for certainty, but the press and consumers are relentlessly negative when hedges do not "beat the market". For a publically traded firm - being "wrong" can have a significant risk to executives and share price - and the highly intertwined executive compensation packages.

Oddly enough, many of these issues are not isolated to airlines. The internal struggle with accounting for and communication of hedging programs resonates across many industries. Many producers faced the same scrutiny in past years over hedging programs that do not "beat the market" - including some of the larger and most profitable Alberta-based producers. Costs are near and dear to the heart of any business in the current environment - which could be resolved with lower fixed premium offerings. However with the current capital requirements and optimal use of limits in trading and risk shops this may prove to be prohibitive for the larger desks seeking higher year over year returns.

 

Madstone Energy Announces Senior Leadership Appointment

June 8, 2016

Madstone Energy is pleased to announce the following appointment within our Senior Leadership Team:

Chris Allen is appointed to Senior Manager, Risk Advisory and Implementation Services with responsibility for Madstone's ETRM/ CTRM implementation, integration, and optimization service line.

Chris has over 13 years of systems experience in trading and risk environments in crude, gas, and power. Chris' experience in systems implementation spans all commodities and major systems including Allegro,...


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Canadian National Energy Board approves MADSTONE Electricity Export Permit

May 30, 2016
August 31, 2011 - NEB Approves Export permit for 1,000,000 MWH/Yr

Link to APPROVAL
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FERC approves MADSTONE Market Base Rates Application

May 30, 2016
October 17, 2011 - Docket ER11-4482
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