Senior Manager, Commodity Trading & Risk Management

K.G. (KIM) STEPHENS

Profile

• A seasoned energy markets professional with deep subject matter expertise in risk management and related business processes, controls and supporting systems.

• Significant experience across numerous commodities and markets, including both physical and financial energy, interest rates and foreign exchange.

• A keen student of economics and markets, with superior communications skills and a flair for innovation.

Accomplishments

• Have assisted clients in different countries, commodities and trading environments to solve their business problems in trading and risk management. This has often required a quick determination of client financial objectives and circumstances, an assessment of internal capabilities, and then the design and implementation of practical solutions. Have project management experience in engagements for strategic planning, information systems selection and implementation, controls development and testing, organizational infrastructure, Policy & Procedures, credit, risk management processes and management reporting.

• Served as the first Risk Manager of a California muni electric aspiring to operate as a merchant power trader. Following a successful ten-month consulting engagement, I was seconded to the client to continue with the design, implementation and operation of the entire risk management practice. This enterprise exceeded all owner expectations.

• Developed the business plan for, then established and staffed a successful risk management consulting business unit attached to a major energy trading company.

• Have traded and/ or risk managed in natural gas liquids, crude oil, natural gas, refined products and electricity: adapting skills and transferring learning from each to the next.

Experience

Deloitte & Touche LLP

Commodity Transacting & Risk Management group

2000 – Senior Manager

● The CTRM practice provides its clients with specialized consulting services on various aspects of the transaction cycle: strategy, execution, logistics, settlement and reporting.

● Served 28 months as the project leader for an engagement with a northern European conglomerate to select and implement Allegro – an integrated commodity transaction and risk management system (CTRM).

● Expertise in controls has resulted in several engagements to plan for, implement and test controls for pursuant to the requirements of the Sarbanes – Oxley Act.

● Served as Risk Manager of California Energy Resources Scheduling – the entity created by the State of California to purchase power for the ratepayers of bankrupt utilities – followed by four months there as part of a team configuring and implementing OpenLink – their energy trading and risk management (ETRM) system.

● I’ve been engaged to develop risk management Policy & Procedures by a midstream services company, a regional power trader, a global marine transportation company and government-owned gas and power utilities.

● I assisted a gas and power utility in the Netherlands in the development of its trading and risk management capabilities. I have assisted several clients in the documentation and remediation of controls related to Sarbanes-Oxley attestation.

The City of Santa Clara, California

dba Silicon Valley Power

1999 – 2000 Risk Manager / Credit Manager

● I was seconded to SVP by Encore Energy Solutions, LP (see below). The American Public Power Association selected SVP as their 2000 Utility of the Year.

● Served as the first Risk Manager for a municipal electrical utility in the deregulating California marketplace.

● Drafted a Risk Management Policy for the approval of City Council.

● Designed and implemented the business unit’s risk management practice, including procedures, controls, systems and organizational and staffing changes.

● Supervised (from a Middle Office perspective) the day-to-day trading operations.

● Negotiated master contracts and implemented credit risk management practice, and trained successor.

● Worked closely with City Attorney’s Office and contract legal personnel to resolve organizational issues, develop master trading agreements and support litigation.

● Collaborated with trading and retail personnel to develop market strategies that were consistent with the City’s competitive advantages and risk appetite.

Westcoast Gas Services Inc. et al.

1996 – 2000 Director, Risk Management Services

● Westcoast Gas Services Inc. entered the Engage Energy joint venture with Coastal Corp late in 1996. Encore Energy Solutions LP was a joint venture of Engage and EPCOR – a municipal electric utility – and was acquired 100% by EPCOR in 2000.

● Developed a business plan for, then staffed and operated a business unit providing risk management consulting services to the corporation’s external clients.

● Services typically included the development and implementation of strategic risk management plans (including the use of storage and financial derivatives trading), risk identification and mapping, and Policy & Procedures development for management of internal business risks. These services were customized for the particular resources and business philosophy of the client.

● Clients included electrical power and natural gas utilities, and industrial energy consumers in Canada, the United States and the Netherlands.

Northridge Petroleum Marketing Inc. / TransCanada Energy Mgmt Ltd.

1995 Energy Financial Products Specialist

● Northridge Petroleum Marketing Inc was purchased and merged with TCEM in 1995. The TCEM assets were later acquired by Mirant Energy in 2001 and then by Cargill in 2003.

● Supervised a staff of energy financial traders that traded futures, options and derivatives in crude oil, natural gas, propane, gasoline and heating oil.

● Created custom financial market structures and trading strategies for the corporation's energy suppliers and customers.

● Served on corporation's "Exposure Committee", which quantified and evaluated pricing and other risks.

Continental Energy Marketing Ltd.

1993-1995 Gas Trader /

Manager, Futures Trading

● Continental was an independent natural gas marketer, ultimately acquired by Duke Energy.

● Traded natural gas in cash and short-term markets. Devised and implemented short and medium term trading strategies.

● Managed company's derivatives, futures and options trading.

● Collaborated with trading partners to develop financial risk management strategies using exchange-traded and OTC instruments.

CanPet Energy Group, Inc.

1987-1993 Crude Oil Trader /

Manager, Futures Trading

● CanPet was a producer-owned marketing cooperative, acquired by Plains Energy Marketing in 2001.

● Traded crude oil and pentanes-plus in markets served by Interprovincial, Lakehead and Trans Mountain Pipe Lines. Managed inventory exposure.

● Designed and programmed computer applications (in FoxBase, a dBase III look-alike) for crude oil pipeline logistics, and for LPG trading, inventory and billing.

● Managed corporate derivatives, futures and options trading activity, including a proprietary trading account.

Canadian Superior Oil Ltd.

1978 – 1984 Customer Services Supervisor

LPG Sales Representative

● Can Sup was amalgamated with Mobil Oil Canada Ltd. in 1986. Mobil later merged with Exxon. A portion of this period was interspersed with university studies.

● Natural gas liquids trader. Can Sup’s ownership of storage and fractionation facilities provided arbitrage opportunities in geographic basis and time swaps.

● As Customer Services Supervisor, I directed the group responsible for NGL and sulfur logistics (domestic and international rail shipment), contract administration, invoicing, and financial and regulatory reporting.

Education

Energy Risk Professional designation, Global Association of Risk Professionals, 2011

Master of Business Administration, 2006

Edinburgh (Scotland) Business School of Heriot-Watt University

Earned a specialist degree in Financial Risk Management by completing additional, focused coursework

Bachelor of Laws, 1985

University of Alberta - Edmonton, Alberta

Called to the Alberta Bar, 1986

Bachelor of Arts in Economics, 1981

University of Calgary - Calgary, Alberta

Industry Activities

● Co-founder of the Energy Risk Management Association of Canada (ERMAC) – an educational organization serving the energy trading community in Calgary. Served on the Executive for three terms, including two as President.

● Lecturer in a senior level course in energy marketing in the Faculty of Management, University of Calgary, on the uses of financial instruments in price hedging, 1993 and 1998.

● Popular speaker at many industry conferences and seminars, speaking on a variety of risk management topics.

Canadian Institute Energy Risk Management conference (October 2000, Calgary) on the uses of mark-to-market

Independent Power Producers Society of Alberta Annual meeting (February 2000, Banff) on portfolio management

Institute for International Research Operational Risk Management conference (January 2000, Toronto); on establishing the “right” risk management balance

California Municipal Rates Group winter meeting (February 1999, Sunnyvale) on rate re-structuring in a deregulated market

Chaired Canadian Institute Energy Risk Management conference (December 1998, Calgary)

Platt’s Bunker Fuel Oil Conference (June 2004, New Orleans) on hedging issues in heavy fuel oil markets

Contact

● Mail: P.O. Box 1525, Cochrane, Alberta, Canada T4C 1B4

● Telephone: 403-***-**** (Home) 403-***-**** (Office) 403-***-**** (Cell)

● E-mail: ************@*****.**

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