Case Study – ExTex Gave Oil And Gas Operator More Flexibility

More Control And The Ability To Easily Change Purchasers 

To schedule a free consultation, please call (303) 463-8799 or fill out our contact form.

Client
Our client is an oil operator who operates wells/pads in Texas.

Background
Oil and gas operators get the benefit of selling their product to the purchaser that offers the best price. Oftentimes, the purchaser then provides the back office support for production, accounting, division orders, and regulatory management – at a cost back to the operator.

Challenge
This type of arrangement left “Client B” with minimal control or autonomy. As is typically the case, they were subject to the purchaser’s internal processes and procedures and had little say in the back office work. Also, our client could not control the level or quality of support that their landowners were getting. And if they wanted to change purchasers, that was no small task!

When an operator changes purchasers, a new set of paperwork has to go out stating the change, owners have to fill out and return paperwork in order to get paid, someone has to follow up with all of the owners who do not respond, and more. It is just a huge hassle – for operators, purchasers, and owners.

Solution
Our client outsourced all of their revenue accounting division order management to ExTex.

Outcome
When working with ExTex, the oil and gas operator controls the valve. We gave our client the flexibility they needed to easily change purchasers, as often as they wanted, while their back office support systems remained the same.

Specifically, this means that our client has been able to:

• collaborate with ExTex to ensure that their preferred practices and workflows are in place
• provide prompt, excellent customer service for their royalty owners, thanks to ExTex’s responsive and knowledgeable team
• change purchasers at any time, without impacting royalty owners or disrupting payment processes (payments always come from our client – via ExTex)

Read Other ExTex Case Studies
ExTex Replaced A Division Order In-House Team
ExTex Delivered Ground-Up Services For A Startup Oil And Gas Purchaser
ExTex Provided Support When An Oil And Gas Operator Acquired A Competitor
ExTex Worked On A Special Project For Suspended Funds

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.