BACK OFFICE ADMINISTRATION FOR OIL & GAS PURCHASERS

ExTex vs Accounting Firms

Compare ExTex To Accounting Firms

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Accounting firms are good at accounting, but at ExTex, we are good at accounting and everything else oil and gas division order services entail.

Whether you are an oil and gas purchaser or an oil and gas operator, we not only see the big picture of your business, but we also pay attention to every small detail.

We provide you with an umbrella of legal and financial protection that you might not even know you need!

Experience And Expertise In Oil And Gas
Since 1998, we have been providing a full range of outsourced oil and gas division order services. We started with three people who had extensive experience in the oil and gas industry, and our team of 40+ employees now includes staff members who are experts in unclaimed property, severance taxes, regulatory taxes, ticket netting, and dozens of other areas specific to oil and gas.

Specialized Accounting Services For Oil And Gas Companies
You might think that “tax is tax,” and many accounting firms do, too. But when it comes to outsourcing oil and gas accounting, the level of complexity is off the charts!

Everything involved with oil and gas division orders goes far beyond the scope and expertise of most general accounting firms. With other types of businesses, a general accounting firm might handle account payables and receivables, federal and state income taxes, payroll taxes, sales and use tax, and the like. But for oil and gas companies, division order processes, tasks, and compliance are much more complex, with far-reaching consequences for non-compliance.

Revenue Accounting Services
Our outsourced revenue accounting for oil and gas purchasers and operators includes:

verifying production data, volumes, and pricing
allocating and distributing revenues based on ownership interests (DOI)
calculating gross revenues and net revenues (after transportation, marketing, compression, and other costs have been subtracted)

Tax Accounting Services
Our outsourced tax accounting for oil and gas purchasers and operators includes:

calculating and remitting severance and production taxes
filing monthly or quarterly reports with state revenue departments
withholding applicable taxes on royalty payments (for non-resident owners and foreign owners)
managing and reporting unclaimed royalties and suspense funds per state laws
filing annual escheatment reports with states’ unclaimed property divisions
generating and filing 1099s, 1042s, and state-specific royalty reports
preparing for internal and external audits
providing reports for tax returns and regulatory filings

Royalty Payments To Owners
Distributing accurate, timely royalty payments to owners is not something that most general accounting firms are prepared to take on. This aspect of division order is time-consuming and customer-service intensive, yet it is something that we enjoy doing and do well.

A single well or lease could have dozens, or even hundreds, of owners. On any given day, not only are we calculating and distributing royalty payments, but we are also:

maintaining ownership decks that reflect changes (due to sales of interest, divorce, inheritances, etc.)
calculating net revenue interests (NRI) for each owner
fielding questions from royalty owners (about payment discrepancies, 1099s, ownership issues, etc.)
helping royalty owners with title documents
handling liens and garnishments
managing suspense accounts (because of title issues, bad addresses, minimum payment thresholds, etc.)
withholding state, federal, and other taxes on behalf of royalty owners
moving money to the state for unclaimed property or moving it from the state

And at the end of each year, we are sending out 1099s, 1042s, and state-specific forms to owners.

Clean Up Past Issues
At ExTex, when we onboard a new client, we essentially perform an audit of all of the data that we inherit. From that day forward, we are not only doing everything on time and in compliance, but, oftentimes, we are also cleaning up past accounting issues.

Full Range Of Back Office Support For Oil And Gas Purchasers And Operators
The accounting for oil and gas purchasers and operators is just a piece of a much bigger, more complex division order puzzle. Whereas an accounting firm might only handle accounting tasks, at ExTex, we do it all!

In addition to revenue accounting and tax accounting, we can provide these services:

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.

Smooth Transition
When you switch to ExTex, the transition will be smooth. Our unique onboarding process ensures efficiency, accuracy, and transparency – without disruption!

For more information about our full range of outsourced back office services for oil and gas purchasers and operators, 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.