Oil & Gas Customer Recovers $100,000 for Incorrect Compression Fees and Fuel Deducts

Market: Oil and Gas | Solution: Contract Management | Customer: Oil Producer

 

Situation

A high-performing oil and gas customer could not understand why realized prices for its natural gas were lower than budgeted and forecasted. Customer engaged AEGIS to perform a full review of the pay statements it received from the purchaser of its natural gas.

 oil and gas producer success story

Solution

AEGIS quickly identified that a well was incorrectly mapped to a low-pressure gathering system. In fact, the well was receiving high pressure service. The incorrect mapping caused multiple errors in realized prices, including an incorrect compression fee and an in-kind reduction of sales gas due to erroneous fuel deduct. Both had a meaningful impact on realized prices.

Outcome

AEGIS notified the customer and contacted the operator responsible for the pay 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 $100,000 to the customer as a make whole payment.

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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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