BACK OFFICE ADMINISTRATION FOR OIL & GAS PURCHASERS

Revenue Accounting Services

Revenue Accounting Services For Oil And Gas Companies

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

We are experts at tracking, allocating, distributing, and reporting revenue that comes from oil and gas production! Our revenue accounting services help ensure that all stakeholders are paid accurately and on time, that regulatory and legal compliance are met, and that internal records match external reports.

At ExTex, we offer a range of revenue accounting services for oil and gas division orders.

Set Up Revenue Accounting For Oil And Gas Properties
We establish the necessary systems, processes, and databases to correctly calculate, track, distribute, and report the income generated from wells that produce oil and gas. A proper oil and gas accounting system facilitates timely and accurate payment distribution, ensures compliance with legal and regulatory requirements, and helps prevent costly errors and owner disputes.

Our oil and gas revenue accounting set-up process includes:

setting up property and well master data
configuring revenue disbursement rules
entering oil and gas production and sales data
linking the accounting data to a chart of accounts
creating suspense and unclaimed property parameters
testing and reconciling the system

Book Final Monthly Run Ticket Data And Revenue Transactions
On a monthly basis, we can compile run ticket data from oil and gas transactions, apply deductions, and allocate revenue to each owner (based on their decimal interest), record gross and net revenue, and lock in the data for audit and accounting reconciliation purposes.

Calculate Withholding Taxes
As part of our revenue accounting services, we can also calculate all applicable withholding taxes, which include:

federal backup withholding taxes
state withholding taxes, if applicable
foreign backup withholding

Book Revenue Data To Each Title Deck
After oil and gas production revenue is finalized, we book revenue data to each title deck (also referred to as a “division of interest deck”). Revenue from the month’s sale of oil and gas is allocated to each owner, based on the division order breakdown.

Process Monthly Revenue Payments To Oil And Gas Owners And Operators
We calculate the net revenue due to each owner (after deductions, taxes, and withholdings) and generate checks or ACH deposits. Our payment detail shows how the payment was calculated, and we send funds to both royalty owners and working interest owners/operators.

Provide Revenue Statements To Owners And Operators That Reflect Monthly Statements
We can supply detailed, monthly financial reports to all interest holders (both royalty owners and working interest operators). These reports show how much revenue was generated, how much was earned, what deductions or taxes were applied, and the net payment to each owner and operator. The monthly accounting statements are based on the actual oil and gas sales that occurred during the month. They include information about production volumes from wells and leases, sales prices, purchasers, gross revenue, associated fees (for transportation, processing, marketing, etc.), deductions and withholdings, and net revenue.

ExTex – The Experience And Expertise You Need
At ExTex, since 1998, we have been providing comprehensive, cost-effective division order outsourcing services for oil and gas purchasers and operators of all sizes. We can be your back office operations, giving you the peace of mind to focus on other aspects of your business. We are SOC compliant, which is a rigorous process that we go through every year to ensure that we are maintaining and improving the integrity of all of our processes. And our proprietary onboarding process for new clients ensures a smooth, seamless, transition.

For more information about our revenue accounting services for oil and gas companies, or to schedule a free consultation, 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. In addition to revenue accounting services, we also offer a full range of back office administrative services for oil and gas companies, including: tax accounting services, title services, well services, and division order services.