Revenue Distribution
Revenue Distribution For Oil And Gas Companies
To schedule a free consultation, please call (303) 463-8799 or fill out our contact form.
As part of our revenue accounting services for oil and gas companies, we distribute payments from oil and gas revenue.
Oil and gas revenue distribution can be time-consuming and burdensome, with severe legal and financial consequences if it is done incorrectly.
Revenue distribution might seem easy enough – follow the division order and distribute the revenue that is owed to each owner, according to their percentage of ownership. In most cases, however, it is far more complicated!
Identification Of Owners
For starters, a single well might have dozens – or even hundreds – of owners. And each owner needs to be located and paid. For many oil and gas purchasers and operators, identifying owners is one of the pain points in division order work and the primary reason they outsource the work to ExTex.
As part of our revenue distribution services, we track down missing or unresponsive owners and identify heirs, executors, and legal representatives.
Title Issues
Oftentimes, ownership issues stem from title discrepancies. Title issues can include: name changes, outdated or missing title documents, mistakes in the legal descriptions of properties, unknown heirs, deaths of owners, and more.
Suspension Of Funds
It is not always possible to pay owners immediately. For dozens of reasons, payments to owners can be suspended, for brief periods of time, or even for years. From missing owner information to legal and regulatory problems, we have the expertise to resolve issues that lead to suspension of funds and to comply with unclaimed property laws.
Process 1099s
At the end of each year, for each royalty owner, we process 1099s that accurately reflect the revenue distribution for the year. If we are missing a W-9 form or have a missing or invalid Tax Identification Number (TIN), we track those down.
Let Us Take Care Of Revenue Distribution For You
At ExTex, we have extensive experience and expertise in revenue distribution and can offer this as a stand-alone service for you, or as part of a comprehensive, back-office admin solution.
We are SOC compliant, and we have a proven onboarding process that ensures a seamless transition.
We work with purchasers and operators of all sizes, including start-up oil and gas companies.
For more information about revenue distribution, 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.
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“I strongly recommend ExTex to everyone in the oil and gas industry who is responsible for revenue distribution and division order processing.”
Mark B, VP of Finance, Texas
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