Solving the Mystery of Declining Netbacks

How Data Automation and AI Revealed Hidden Fees Impacting Asset Profitability  

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

The Challenge

Unexplained Decline in Netbacks: 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

 

Data Complexity

Navigating an Overwhelming Volume of Information: The company had accumulated two years’ worth of statements across multiple processors—totaling over 7,500 individual statements. Identifying anomalies or discrepancies within this extensive dataset through manual review was not feasible. The complexity of midstream revenue calculations, including variable processing fees, gathering charges, and contract changes, further complicated the analysis. 

Analyzing POP statements across multiple processors 

 

Solution

Leveraging Advanced Revenue Capture Technology: To address this challenge, the company engaged AEGIS and leveraged its Revenue Capture solution, which integrates AI-driven automation and machine learning to normalize and analyze revenue-related data efficiently. Within two hours of receiving the 7,500 statements, AEGIS executed the following:


contract
Automated Data Processing

AI-driven ingestion and normalization of POP statement data from multiple midstream processors, ensuring a structured and consistent dataset.
AI
Unified Data Access

Integration of processed data into the AEGIS platform and API, consolidating all revenue-related information into a centralized, user-friendly interface.
integrate
Operational Reporting & Revenue Analysis

Automated generation of operational trending reports and revenue/yield timelines, enabling a comprehensive evaluation of financial performance across assets.

Results & Impact

Transforming Data Overload into Actionable Insights: By leveraging AEGIS’s Revenue Capture technology, the company converted an overwhelming volume of disorganized data into clear, actionable intelligence. This resulted in:

efficiency in operations
Enhanced Operational Efficiency

Automated data processing significantly reduced manual effort and the risk of errors.
data
Greater Data Accuracy

Normalized data provided a reliable foundation for analysis and decision-making.
revenue insights
Proactive Revenue Management

Real-time insights enabled the company to detect and resolve revenue-impacting issues promptly.

 

Conclusion

Revenue Capture Dashboard for oil and gas

AEGIS’s advanced Revenue Capture solution empowered the company to efficiently analyze a vast dataset, uncover hidden financial discrepancies, and address the issue before further losses accrued. This case study underscores the critical role of AI-driven data normalization and automation in optimizing revenue management and ensuring financial integrity in energy operations. 

Start taking control of your revenue–see our technology in action.

Watch the Demo

 
 
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.
^