Filling in the Gaps Wherever You Need Help
Whether you operate onshore or offshore Gulf of Mexico, inaccurate production, revenue, and regulatory accounting can result in reduced revenues and increased expenses. We work with E&P companies to really understand their full accounting process and their challenges and limitations. Once we have a complete picture, we develop and execute a plan to fill in the cracks in existing processes and advise on how to prevent new ones from forming.
The models and software databases we develop for our clients fully incorporate ONRR and/or state-approved valuation methodologies and regulations and reconcile differences between valuations and actual revenue. This reconciliation is just one way we help our clients capitalize on missed opportunities.
Efficiency & Compliance Management
Optimizing accounting processes and procedures makes it easier to ensure compliance with the latest regulatory frameworks.
We build and redesign revenue and production accounting systems by:
- Analyzing gaps, needs, and document requirements.
- Implementing new systems or improving existing systems.
- Determining the ideal application configuration to achieve desired outcomes and ensure compliance.
- Designing processes to minimize liabilities and maximize legal deductions.
Added Value
We have recovered or saved more than $40 million for our clients, paying for ourselves many times over.
We identify opportunities to reduce future costs related to:
- Systemic accounting errors
- Regulatory audits
- Interest bills
Fixed-Fee Engagements
- We help you manage your SG&A by taking the guesswork out of standard consulting costs. We offer customizable service packages with turn-key rates, so you know exactly what you’re getting and for how much.
Flexibility
We understand that every client and every asset is different. That’s why we implement solutions designed to meet your specific needs. We don’t do what’s easy or off the shelf; we pursue custom, innovative solutions that will positively impact your operations – within accounting and other functions.
We break down the silos between departments:
- Marketing
- Operations
- Accounting
- Land
- Regulatory
- ONRR Royalty Reporting
- State Royalty & Severance Tax Reporting
- Revenue Accounting Support
- Production Accounting
Royalty reporting for producing assets on Federal leases can present unique and complex challenges for the oil and gas industry. Many Gulf of Mexico and onshore producers struggle with incorporating rules and statutes set forth by the ONRR, disseminating changes in those rules, and vague interpretations from regulators.
You need a partner who will simplify the complexity for you, ensure your ONRR 2014 submissions meet regulatory compliance, and be your first line of defense against ONRR audits. We understand how important minimizing royalty and tax burdens is to our clients. We have the people, the processes, and the experience to be your trusted and reliable resource for calculating and reporting ONRR royalties each month.
Our history of delivering premium products ONRR can trust allows us to be at the forefront in developing valuation standards for calculating royalties and allowable transportation and processing allowances.
Our ONRR Royalty Reporting service include:
- Developing asset-specific valuation models for each Facility Measurement Point (FMP)
- Processing monthly royalty calculations
- Submitting monthly FORM ONRR 2014
- Preparing monthly reports that reconcile the differences between regulatory valuation and actual revenue
- Calculating Arm’s and Non-Arm’s length transportation/processing allowances
- Verifying production allocations
- Validating volumes and values
- Providing Royalty relief identification and certification
- Applying ONRR’s Marketable Condition Rules and Unbundling Cost Allocations
- Providing ONRR Audit defense
Royalty and severance tax reporting for assets producing from state leases can present unique and complex challenges for the oil and gas industry. Many producers struggle with incorporating rules and statutes set forth by state regulatory agencies, disseminating changes in those rules, and vague interpretations from regulators.
You need a partner who will simplify the complexity for you, ensure regulatory compliance with your monthly royalty and severance tax submissions, and be your first line of defense against regulatory audits. We understand how important minimizing royalty and tax burdens is to our clients. We have the people, the processes, and the experience to be your trusted and reliable resource for calculating and reporting royalties and severance taxes each month.
Our history of delivering premium products state regulatory agencies can trust allows us to be at the forefront in developing valuation standards for calculating royalties and severance taxes.
Our State Royalty & Severance Tax Reporting services include:
- Developing asset-specific valuation models for each Facility Measurement Point (FMP) or sales point
- Processing monthly royalty and severance tax calculations
- Submitting monthly royalty and severance tax forms required by governing agencies
- Preparing monthly reports that reconcile the differences between regulatory valuation and actual revenue
- Calculating Arm’s and Non-Arm’s length transportation/processing allowances
- Verifying production allocations
- Validating volumes and values
- Identifying and certifying incentives
- Providing Regulatory Audit defense
Calculating Regulatory obligations requires a thorough understanding of Federal and state regulations, commercial and regulatory agreements, revenue accounting, marketing arrangements, land and operations. Many producers struggle with accurately accounting for regulatory obligations and booking revenue to satisfy financial reporting requirements. Most companies make the mistake of assuming revenue “cash” drives regulatory obligations. This assumption is the root cause for most regulatory systemic errors.
You need a partner who will simplify the complexity for you and ensure compliance with your regulatory and revenue accounting obligations. Accounting software can help streamline and automate processes, but it cannot think for itself. This makes it increasingly difficult to use for both booking revenue and calculating regulatory obligations. Our team understands the oil and gas business and how to leverage your existing software to efficiently produce the most accurate results for your specific situation. We have the people, the processes, and the experience to help you successfully navigate the complexities of regulatory compliance and revenue accounting.
Our models, designed for regulatory and financial accounting compliance, provide a sharp contrast to the way things have always been done.
Our Revenue Accounting Support services include:
- Developing asset-specific valuation models for each sales point
- Preparing monthly reports that reconcile the differences between cash and regulatory obligations
- Generating monthly revenue schedules and accounting system uploads (OGSys, Bolo, Excalibur) to ensure accurate royalty and severance tax reporting while correctly booking revenue to the appropriate accounts
Production allocations are the foundation for accurate oil and gas accounting. Foundational errors can have a material impact on a producer’s bottom line. Something as simple as a fuel misallocation can result in millions in lost revenue.
You need a partner who will simplify the complexity for you and ensure accurate production allocations and compliance with your regulatory obligations. We have the people, the processes, and the experience to help you successfully navigate the complexities of production accounting and regulatory compliance.
Our Experience
- High Pressure (HP) and Low Pressure (LP) systems
- High Pressure Condensate systems
- Oil, Condensate and Gas Pipeline allocations
- Artificial Lift (Gas Lift) and buyback gas
- Oil and Gas Quality differentials
- Compression Systems and Fuel Allocations
Our process includes developing custom allocation models designed specifically for each production platform or facility. Our experience with thousands of onshore and offshore systems allows our staff to create allocations that incorporate each system’s unique characteristics while also ensuring regulatory compliance.
Our Production Accounting services include:
- Developing asset-specific allocation models for each sales point
- Coordinating with Field Personnel
- Reviewing platform and/or/ facility schematics
- Outlining production flow for each well
- Identifying fuel-burning equipment and assessing each well’s proportional consumption
- Reviewing and incorporating oil quality samples and gas chromatographic analysis
- Reviewing commingling and production handling agreements
- Generating monthly production allocations
- Generating monthly gas balancing statements
- Submitting monthly ONRR and State production reports