Solving the Mystery of Declining Netbacks

How Data Automation and AI Revealed Hidden Fees Impacting Asset Profitability  

Market: Oil & Gas  |  Solution: Revenue Capture  |  Customer: Oil & Gas Producer

 

Background

A leading energy company observed a persistent decline in netbacks for a portion of its assets. Despite recognizing the downward trend, the root cause remained unclear due to the sheer volume of operational and financial data. With vast amounts of information to analyze, the company faced significant challenges in pinpointing the specific factor driving the decline. 

 A leading energy firm, actively engaged in acquisitions

 

The Challenge

The company had accumulated over 7,500 individual statements spanning two years and multiple processors. Manually reviewing this volume of data to identify anomalies or discrepancies was simply not feasible. The complexity of midstream revenue calculations—ranging from variable processing fees and gathering charges to evolving contract terms—further compounded the challenge, making accurate and timely analysis nearly impossible using traditional methods.

 

Solution

To tackle the scale and complexity of the data, the company engaged AEGIS and deployed its Revenue Capture solution to streamline the normalization and analysis of revenue data. Within just two hours of receiving more than 7,500 POP statements, AEGIS delivered the following:

Statement Ingestion & Normalization

AI-driven ingestion and normalization of POP statement data from multiple midstream processors resulted in a structured, consistent dataset—ready for rapid analysis.

Revenue Analytics and Insights

The processed data was seamlessly integrated into the AEGIS platform and API, centralizing all revenue-related information into a single, accessible interface.

Trending Timelines

Automated generation of operational trending reports and revenue/yield timelines provided a clear, comprehensive view of financial performance across assets and time.

Results & Impact

By leveraging the AEGIS Revenue Capture solution, the company transformed more than 7,500 disorganized statements into clear, actionable intelligence—empowering faster, more accurate revenue analysis and decision-making.

efficiency in operations
Enhanced Operational Efficiency

Automated data processing drastically reduced manual effort, minimized the risk of errors, and freed up internal resources.

data
Greater Data Accuracy

Structured datasets provided a reliable foundation for deep analysis, supporting confident and defensible decisions.

revenue insights
Proactive Revenue Management

With real-time insights at their fingertips, the team was able to detect and resolve revenue-impacting issues quickly.

Rapid Detection of a Contractual Adjustment:

The structured dataset enabled immediate identification of two critical issues:

contract modification
Contract Modification Uncovered

A previously overlooked contract adjustment had introduced a new gathering fee, directly affecting netbacks.

ngl yields
Decreasing NGL Yields

A shift in gas composition revealed a drop in GPM, contributing to a noticeable month-over-month revenue decline.

Conclusion

Revenue Capture Dashboard for oil and gas

AEGIS’s advanced Revenue Capture solution empowered the company to efficiently analyze a vast and complex dataset, uncover hidden financial discrepancies, and proactively address issues before additional losses occurred. This case highlights the critical role of AI-driven data normalization and automation in optimizing revenue management and safeguarding financial integrity across energy operations.

 

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Commodity Interest Trading involves risk and, therefore, is not appropriate for all persons. Past performance is not necessarily indicative of future results. 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. 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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