Oil And Gas Purchasers
Outsourced Back Office Services For Oil And Gas Purchasers
To schedule a free consultation, please call (303) 463-8799 or fill out our contact form.
Accurate, efficient, and compliant royalty distribution starts with reliable division order management.
At ExTex, we can provide the expertise and support you need to ensure that ownership records are verified, pay decks are up to date, and payments are made correctly and on time.
By outsourcing your division order management to us, you can probably save money, too!
Whether you are managing a handful of royalty owners or thousands, we can step in and work with your division order team, or even replace them.
Division Order Services For Oil And Gas Purchasers
Our primary division order services for oil and gas purchasers include:
Receive And Verify Division Orders: When you get division orders from operators or interest owners, we verify that the division of interest is mathematically correct, aligns with title documentation, and matches the volumes and terms agreed to in the purchase contract.
Maintain Accurate Pay Decks: We maintain accurate and current pay decks to ensure that payments go out to the right parties (in the correct amounts), that taxes are withheld properly, and that suspense issues are minimized.
Monitor Title Changes Reported By Operators: We monitor title changes reported by operators and update the pay decks, request supporting documents (e.g. deeds, wills, or affidavits), and pause payments if there is an ownership dispute.
Process Royalty Payments: We calculate gross proceeds, apply deductions, use the division of interest (DOI) to determine each owner’s share, and issue checks or ACH payments to royalty owners.
Balance Volumes And Values: We work with clients to ensure that the volumes purchased from the operator match what is being paid out and that the value assigned (price per barrel or MCF) is accurate and in accordance with the contract. To do this, we reconcile meter readings, tank gauges, and run tickets, and we make adjustments for transportation or processing losses.
File Required Reports: We report tax withholdings (federal backup withholding and/or state severance taxes), file regulatory reports on payment data and production, and issue 1099s and various year-end tax documents to interest owners.
Conduct Audits And Reconciliations: We periodically perform internal and external audits to ensure that owners have been paid accurately, that payment calculations match the contracts and division orders, and that no errors or fraud have occurred. We also participate in joint audits with operators or owners if disputes arise.
All Types Of Oil And Gas Purchasers
We provide outsourced back office services for all types of oil and gas purchasers, including:
- refiners
- integrated oil companies (refining and production)
- pipeline companies
- midstream companies
- gas utilities
- electric utilities
- oil and gas marketers and traders
- crude oil logistics and trucking firms
SOC Compliant
Every year, we work with an outside CPA firm to confirm our compliance and to provide an external SOC compliance report for us. Our SOC compliance can either replace the need for you to perform an audit, or it can feed into your own SOC compliance report and help you fulfill SEC requirements.
About ExTex
Since 1998, we have been bringing efficiency, experience, expertise, and cost savings to the back office operations of oil and gas purchasers. We work with all sizes of oil and gas purchasers, from 1-person operations to multinational corporations.
We can provide a customized outsourcing solution that includes some or all of our division order services: well services, division orders, title services, revenue accounting, and/or tax accounting. 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 full range of outsourced back office services for oil and gas purchasers, 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 purchasers, we also provide services for oil and gas operators and oil and gas startup companies.