Validating Revenue Accuracy Through Contract Compliance 

Market: Oil & Gas  |  Solution: Contract Compliance  |  Customer: Natural Gas Producer

 

Background

A large U.S. natural gas producer partnered with AEGIS to manage the complexity of its midstream contracts. Already a legacy financial customer, the producer recognized that manually tracking escalations, fees, and deductions across multiple basins created risk and potential missed value. They engaged AEGIS to combine contract compliance expertise and technology to ensure accuracy. 

 A large U.S. natural gas producer partnered with AEGIS to manage the complexity of its midstream contracts.

 

The Challenge

Midstream agreements often include detailed escalation clauses, tiered fees, and deductions. Even small settlement discrepancies can add up and compound over time. For this producer, settlements across multiple assets—including Permian, Eagle Ford, and Haynesville—were highly complex, with varying escalation periods, fee terms, and calculation requirements. Without normalized data, validating accuracy required sifting through statements manually, limiting visibility and confidence in revenue settlements. 

 

Solution

AEGIS consolidated contract and settlement data into a centralized system, standardizing formats and enabling deeper analysis. 

Analyses were performed using AEGIS’s Contract Compliance workflows, supplemented with outside modeling to validate findings and ensure consistency. 
data
Escalation & Fee Review

Automated review of escalations and fees confirmed that contract terms were being applied as agreed, providing assurance that charges and credits were accurate. 

revenue insights
Haynesville Asset Analysis

AEGIS integrated disparate midstream statements into its platform and cross-referenced them with gas prices. This database-driven review verified that a complex discounted fee structure tied to gas pricing was being calculated correctly.

Results & Impact

Recoverable Dollars: $2+ million identified in claims for Eagleford and Permian due to escalation issues. 

Validated Accuracy: Settlement statements and fee structures were confirmed to be correctly applied, giving the producer confidence that revenue was reported accurately. 

Strategic Confidence: Armed with clear, data-backed validation, the producer improved trust in their internal processes and strengthened their ability to negotiate confidently with midstream counterparties. 

Haynesville Imbalance: In reviewing the Haynesville imbalance contract calculations, AEGIS identified a $1MM amount the producer actually owed back. Rather than being a setback, this provided peace of mind—knowing they wouldn’t face a surprise bill later. It also demonstrated AEGIS’s competence and expertise to confirm accuracy in either direction. 

Why It Matters

Contract Compliance Dashboard

Contract compliance isn’t only about finding mistakes—it’s also about proving accuracy. For producers managing complex agreements across multiple basins, the assurance that revenues and fees are being applied correctly is just as valuable as recovering dollars. 

By combining technology, expertise, and advisory services, AEGIS helps producers reduce uncertainty, protect against risk, and reinforce trust in their financial reporting. This partnership delivered confidence, transparency, and a stronger foundation for future negotiations. 

 

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