Recover Over $400MM in Receivables in 6 Months
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Due to an acquisition the year prior, our client lacked working interest (WI) data to appropriately bill their joint venture partners for well costs. They wanted to settle accounts receivable balances and accelerate cash flow.
We provided a multi-disciplined team with expertise as landmen, lease analysts, division order analysts, and joint interest consultants to accurately construct the historical data required to bill partners by studying years of legal documents, correspondence, and communications.
Our team updated the net revenue interests (NRI) discrepancies associated with the properties, back-billed $500 million in accounts receivable, and recovered $400 million plus off the AR accounts and suspended revenues in just six months.
Read on for more information on how we successfully delivered a positive outcome for our client.
As a result of an acquisition the year before, our client lacked the necessary working interest (WI) data to properly bill their multiple joint venture partners for well costs.
They had millions in outstanding accounts receivable dollars pending recoupment due to this stale data, and they needed to clear $500 million in well costs and settle accounts receivable balances with partners to accelerate cash flow.
We provided a multi-disciplined team with expertise as landmen, lease analysts, division order analysts, and joint interest consultants to accurately construct the historical data required to bill partners by studying years of legal documents, correspondence, and communications.
Under the direction of our client’s Land & Accounting Department, we worked closely with our client’s partners to settle disputes and disagreements about the changing WIs and joint interest billing (JIBs) quickly and efficiently.
After ensuring quality work on the JIB side, our team updated the net revenue interests (NRI) discrepancies associated with the properties, back-billed $500 million in accounts receivable, and recovered $400 million plus off the AR accounts and suspended revenues in just six months.
We trained our client’s staff how to handle discrepancies and what the best practices were for their team to use in future acquisitions.
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