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. As a long-time financial customer, the producer realized that manually tracking escalations, fees, and deductions across multiple basins was not only time-consuming but also created risks and potential missed value. They partnered with AEGIS Contract Compliance to simplify complex agreements and gain assurance that every detail aligned accurately with their contracts. 

 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, settlement statements across assets—including the Permian, Eagle Ford, and Haynesville—were especially complex, with differing escalation schedules, fee structures, and calculation methods. Without normalized data, verifying accuracy meant reviewing statements manually, reducing confidence that the revenue was correct.

 

Solution

AEGIS consolidated all contracts, amendments, and statement 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

An automated review of escalations and fees confirmed that contract terms were applied correctly—giving assurance that all charges and credits were accurate.

revenue insights
Haynesville Asset Analysis

AEGIS brought together midstream statements from different sources and cross-checked them against gas prices. This systematic review confirmed that a complex discounted fee structure tied to gas pricing was calculated correctly.

Results & Impact

Escalation Review: In the Eagle Ford and Permian, AEGIS identified escalation issues that represented more than $2 million in claims, creating opportunities to recover value.

Validated Accuracy: Across other assets, settlement statements and fee structures were confirmed to be applied correctly, giving the producer confidence that revenues were accurate and reducing the risk of hidden discrepancies.

Haynesville Imbalance: In reviewing imbalance contract calculations, AEGIS found $1 million that the producer actually owed back. Rather than being a setback, this gave peace of mind—knowing they wouldn’t be surprised with a future bill—and highlighted AEGIS’s ability to confirm accuracy in either direction.

Strategic Confidence: With data-backed validation across multiple basins, the producer gained assurance in their financial reporting and strengthened their negotiating position with midstream counterparties.

Why It Matters

Contract Compliance Dashboard

Contract compliance is about providing 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. 

Every day matters–ready to know if your revenue is actually accurate?

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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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