With strip prices at historic lows, most basins across the US remain uneconomic to drill. And many producers are suddenly finding that producing assets with high operating costs, such as stripper wells, are uneconomic to operate. With DUC counts rising and wells shutting in, your biggest lever to increase cash flow is cost efficiency. But the devil is in the details and knowing exactly where to apply that lever is crucial to unlocking cost savings. Your data holds the key.
Creating a Clear View of Lease Operating Expenses
Not every oil & gas lease is created equal. Your operating expenses are influenced by myriad factors, including region, cost basis, operated vs. non-op working interests, state and federal regulations, and products produced. And, of course, a host of lease provisions that add even more complexity.
The creation of lease operating statements is a key workflow in understanding expenses and identifying where costs can be driven out. But it’s a largely manual process that involves bringing cross-functional datasets together, including production, income, and a wide range of expense categories, from maintenance and water disposal to midstream services and abandonment.
If data is the new oil, then unifyi is like hydraulic fracturing. It breaks down data silos by accessing data in place and creating a free flow of information.
Top benefits and capabilities of unifyi's lease operating statements (LOS):
- Prioritize low-performing leases to drive down inefficient LOE categories.
- Analyze LOE by location and identify opportunities to combine leases to drastically reduce LOE in some cases.
- Rank cost centers by general ledger and sub-ledger.
- Identify orphaned accruals.
- View aggregate LOS based on various groupings of assets, completion design, region, fund, operated/non-op, engineer, and production method.
- View of highest LOE expense categories and reduce expenses by impact level.
- Drill down to view expenses at the cost center or asset level.
- Audit invoices for situations such as incorrect allocation to properties, duplicate invoices and miscoding.
- Allow engineers to track asset performance versus goals/targets.
- Improve forecasting, planning and sensitivity analysis.
Importantly, unifyi's budget vs. actual LOS helps teams plan and respond with increased agility. And with sustained pricing uncertainty, being able to test different high/low scenarios is crucial for managing expenses and prudently deploying capital.
Putting a Value on unifyi's Reporting
The benefits of unifyi's financial reporting are manifold. There’s a very tangible benefit for teams who are able to interrogate scattered sources of data to pinpoint poor-performing leases, duplicate invoices, and other cost savings. These have a measurable impact on your balance sheet in the form of uplifted margins.
But unifyi has a compounding value for oil & gas companies. There is immense benefit from self-service reporting, which empowers the C suite with up-to-date intelligence on asset performance without having to ask a question and wait days for an answer. And where limited access to data and timely insights result in opportunity costs, unifyi creates new opportunities to drive productivity and cost efficiency.
Ready to extract actionable insight from your data? Schedule a live demonstration of unifyi's platform today.