Optimizing Midstream Operations: A Case Study on Efficient Accounting and Cost Savings


Optimizing Midstream Operations: A Case Study on Efficient Accounting and Cost Savings

The Challenge:

An independent midstream energy company specializing in providing natural gas producers with flexible, responsive, and reliable services to connect the wellhead to the market faced significant challenges in building a stable and scalable accounting team. With over 5,000 miles of pipeline, 18 processing facilities, three NGL fractionation facilities, more than one million barrels of storage, and approximately 500,000 horsepower of compression, the company required experienced professionals to efficiently manage production, transportation, billing, and logistics across their vast energy infrastructure. The emotional and economic difficulties associated with hiring and downsizing a team of accountants, particularly during asset sales and shifts in operational focus, compounded the client’s challenges.

The Solution:

Opportune's Business Process Outsourcing team provided the client with 15 highly skilled midstream accounting professionals who became an extension of the client. Their initial focus was on setting up their operating accounting system, TIPS, to manage the complex needs of energy production and transportation. Leveraging an established relationship with Quorum, Opportune negotiated an agreement that facilitated the seamless integration of TIPS ERP with SAGE, streamlining billing and asset management processes. Additionally, Opportune designed and implemented processes and controls around key accounting functions, ensuring compliance with SOX requirements and optimizing their extensive energy infrastructure management. Throughout the engagement, their dedicated controllers performed daily processing, addressed client inquiries, and managed operations with the efficiency and commitment of internal resources.

Business Impact:

  • Reduced Accounting Close Time: Decreased the monthly and annual accounting close processes by 12 business days, enhancing operational efficiency and streamlining logistics.
  • Audit-Ready Work: Produced audit-ready documentation that passed scrutiny by a Big Four firm with no exceptions, leading to significant savings for the client.
  • Cost Savings: Achieved a 25%-40% reduction in employee and system expenses, significantly improving the client's financial efficiency and management of energy assets.
  • Enhanced Compliance: Established robust processes and controls, ensuring compliance with SOX and reducing operational risk across their energy production and transportation infrastructure.

Related Insights

Aniq Ahmad

Aniq Ahmad

Managing Director & President of Outsourcing

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