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Oil & Gas Producer Streamlines Internal Risk-Management Process by Implementing AEGIS’ CTRM Platform

Markets: Energy  | Commodity: Oil & Gas  | Client: E&P Producer

 

Situation

An oil and gas producer had a long-standing practice of storing, valuing, and settling its financial hedges using spreadsheets. The embedded links within the spreadsheets, combined with tracking and versioning issues, led to a time-intensive and disjointed process that struggled to meet the company’s increasing financial control and audit requirements.

The company’s goals of implementing more robust financial controls and enhanced compliance and reporting efficiency led its risk management team to search for an enterprise software solution to replace its current internal processes.

 Oil and gas producer using software to protect profits

 

Solution

The company engaged with AEGIS to license the AEGIS CTRM platform, which had several key features that met its numerous compliance and reporting requirements. AEGIS’ cloud-based infrastructure enabled the oil and gas producer to rapidly onboard numerous users and hedge data instantly onto the platform. 

The ‘Match Settlements’ feature provided the company with an efficient way to validate counterparty invoices while identifying potential discrepancies.

Proprietary data that showed the amount of slippage due to liquidity was smaller than the customer expected when the market was well bid – exactly the times when the customer sought to transact. In addition, the platform’s native reporting tools automatically created audit-ready mark-to-market calculations, allowing the company to easily reconcile end-of-day P&L at any time.

Increased access to the information within the platform delivered significant value, market insights, and time savings– with fully controlled processes.

 

AEGIS Platform Dashboard

Outcome

The oil & gas producer is now using the full functionality of the AEGIS platform. The company’s internal team has retired its reliance on spreadsheets, gained additional insight into its data, and simplified management reporting.

In addition, the team has recognized significant efficiencies and is progressing through audits without any issues. All in all, the company has greater visibility into its hedge data and market insights, which has better positioned the company to manage market fluctuations, as well as identify potential risks and opportunities.

 

"The AEGIS software platform enhances our risk management, valuation, reporting, and audit needs for our financial-hedging activity. We feel that AEGIS has built an excellent platform on a modern architecture that allows us to simplify our internal processes.”

Leadership Team   |  E&P Producer

 

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This case study is not indicative of future performance or success. Commodity interest trading involves risk and, therefore, is not appropriate for all persons; failure to manage commercial risk by engaging in some form of hedging also involves risk. Past performance is not necessarily indicative of future results. There is no guarantee that hedge program objectives will be achieved. Neither this trading advisor nor any of its trading principals offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program. Hedge advisory services are performed by the registered commodity trading advisor AEGIS-CTA, LLC, a wholly-owned subsidiary of AEGIS Hedging Solutions, LLC. This case study is not required to be and has not been, filed with the Commodity Futures Trading Commission ("CFTC"). The CFTC does not pass upon the adequacy or accuracy of this commodity trading advisor disclosure. Consequently, the CFTC has not reviewed or approved this case study.
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