Oil & Gas Producer Recovers $950,000 Related to Incorrect NGL Allocations

Markets: Oil & Gas | Solution: Revenue Capture | Client: Producer

Situation

A Permian Basin producer engaged AEGIS to provide marketing and commercial services for its assets. AEGIS quickly discovered an error in the settlement statements the producer was receiving related to NGL allocations.

 Revenue Capture Dashboard for oil and gas

 

Solution

AEGIS identified the customer was receiving actual NGL recoveries rather than the fixed recoveries agreed to in its contract.

 Contract Details

Outcome

AEGIS notified the customer and contacted the operator responsible for the settlement statement. AEGIS provided the data it found to the operator and performed a full reconciliation of the impact on realized prices. The operator acknowledged the error and remitted $950,000 to the customer as a make whole payment. While the make whole payment was meaningful, the impact on future flows was much greater and resulted in significantly increased equity value of the well.

 non-operated producer nearly $1.00/mmbtu in downstream and marketing fees

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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. See further disclaimer below.
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