Oil And Gas Operators
Outsourced Back Office Services For Oil And Gas Operators
To schedule a free consultation, please call (303) 463-8799 or fill out our contact form.
Since 1998, we have been helping oil and gas operators take some of the risk out of their businesses!
Cost-Savings. Accuracy. Efficiency. Transparency. Deep industry knowledge. Financial and legal protection.
At ExTex, we offer all of this and much more! That means you can do what you do best – explore for, drill, produce, and sell oil and gas – while we take care of your division order management.
We provide comprehensive, outsourced back office administrative and accounting services for oil and gas operators of all sizes, from 1-person LLCs and family-owned leaseholders to multinational corporations.
When it comes to oil and gas division order services, you can outsource some or all of the services listed below.
Prepare And Issue Division Orders
Based on the title and division of interest (DOI) calculations, we prepare and issue division orders for mineral owners, working interest owners, and overriding royalty interest owners.
Analyze Titles And Verify Owners
We analyze titles to verify owners and to determine who is entitled to receive royalty payments and what their decimal interest is.
Track Ownership Changes
We track ownership changes (due to sales, divorces, estate settlements, and other title changes).
Pay Royalty Owners
Based on net revenue interests (NRI) and lease terms, we pay royalty owners – accurately and on time.
Manage Suspense Funds
We track, categorize, and resolve unpaid funds that cannot be disbursed because of legal, administrative, or compliance issues. We hold these funds in a suspense account until the problem is cleared, and then we disburse funds. This aspect of division order management is particularly complex, time-consuming, and full of legal and financial exposure.
Some of the most common reasons for suspending royalty payments include: title defects, death of an owner, ownership transfers, invalid or missing taxpayer information, uncashed checks, returned mail, or legal holds.
Handle Unclaimed Property
Unclaimed property is one of the most complicated and legally fraught aspects of oil and gas division order. Escheatment laws vary significantly by state. Each state has its own statutes that dictate: dormancy periods, due diligence requirements, reporting deadlines, report formats, property type classifications, penalties and interest, and more.
And the risks of non-compliance are huge! If unclaimed property is not handled properly, an oil and gas companies could incur fines and penalties, owe interest on unremitted funds, and be subject to additional audits.
Issue 1099s For Royalty Owners
We collect W-9 forms, maintain accurate ownership records, track cumulative payments, issue 1099s to interest owners, and file year-end regulatory forms with the IRS and various tax entities.
Comply With Regulatory Reporting
Few industries are more heavily regulated than oil and gas, and with these regulations come mandatory reporting. For oil and gas operators, we submit multiple types of filings to governmental agencies at the federal, state, and local levels. The most common types of reports include: production reports, severance tax reports, state royalty reports, county renditions, unclaimed property reports, and year-end regulatory forms with the IRS and various tax entities.
About ExTex
At ExTex, we have deep experience and expertise in the oil and gas industry, which we use to help our clients save money and stay in compliance.
We are SOC compliant, and we offer a full range of division order services: well services, division order services, title services, revenue accounting services, and tax accounting services.
When you transfer your division order responsibilities to us, our unique onboarding process ensures accurate and on-time payments from Day One.
For more information about our outsourced back office services for oil and gas operators and producers, or to schedule a free consultation, 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. In addition to division order management for oil and gas operators, we also provide services for oil and gas purchasers and oil and gas startup companies.