Case Study – ExTex Provided Support When An Oil And Gas Operator Acquired A Competitor

Modernized Outdated Process, Implemented Checks And Balances, Created One Universal Solution

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Client
Our client is an oil and gas operator in Texas that was looking to purchase a competitor.

Background
Acquisitions are common in the oil and gas industry. Oftentimes, entire geographic locations are put on the block, or even the company as a whole. These takeovers can cause headaches when you have to figure out what the company that you are acquiring has been doing and then map it to your company’s processes and workflows. An operator in Texas reached out to us with this very issue.

Challenge
Our client had years of industry experience and assets, but they were facing stiff competition in an area, so they decided to buy out their competitor. While performing due diligence before the acquisition, our client noticed that the competitor’s back office processes were outdated and that they were largely being performed manually. Also, the competitor had few checks and balances in place, which meant that there was significant exposure to legal, financial, and regulatory liability.

Solution
At ExTex, we provided the staff and infrastructure to help our client match everything, “apple to apple,” from the company they were acquiring to their own processes and workflows. As we completed this process for our client, they decided to also outsource all of their back office functions to us.

Outcome
Through this approach, our client was able to achieve a universal approach for their entire back office. All of the owner payments, reporting, and customer service for royalty owners were handled by ExTex, and customer satisfaction increased significantly. In addition, our client appreciated that ExTex had taken over the burden of handling payments and title issues properly. By outsourcing to ExTex, our client reduced their overhead, limited their exposure, and were able to focus on their core business growth.

Read Other ExTex Case Studies
ExTex Replaced A Division Order In-House Team
ExTex Gave An Oil And Gas Operator More Control And Flexibility
ExTex Delivered Ground-Up Services For A Startup Oil And Gas Purchaser

For more information about ExTex, or to talk about how we can help your company, please call (303) 463-8799 or fill out our contact form.

ExTex Division Order Services, LLC is located in the Denver metro area (in Golden, Colorado), and we provide back office outsourcing services for oil and gas companies across the U.S. and Canada.