Oil & Gas Producer Recovers $950,000 Related to Incorrect NGL Allocations
Contract Compliance • Incorrect Product Allocation
SituationA 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. | SolutionAEGIS identified the customer was receiving actual NGL recoveries rather than the fixed recoveries agreed to in its contract. |
OutcomeAEGIS 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. |
