The Importance of Midstream Contract Reviews.
Midstream agreements are built on complex allocation methodologies, processing terms, and pricing formulas. Over time, small discrepancies can accumulate across settlement statements, creating meaningful financial impact. A structured Production Payment Review, often referred to as a gas plant audit, helps producers validate deductions, improve payment transparency, and identify opportunities to recover value while strengthening future contract performance.
Greater Visibility. Better Accuracy. Stronger Recoveries.
A Production Payment Review gives producers greater visibility into how payments, deductions, and fees are calculated under their midstream agreements. The result is improved payment accuracy, documented recovery opportunities, stronger contract compliance, and actionable insights that help prevent recurring discrepancies.
Why Choose Revenew
Revenew's team combines expertise in producer revenue accounting, gas plant operations, midstream settlement accounting, and commercial contract analysis. This multidisciplinary experience allows us to identify both technical and commercial issues that often go unnoticed. Through our no-risk engagement model, producers gain an experienced partner focused on improving payment accuracy, reducing risk, and recovering value.
Billing Discrepancies We Uncover.
Our specialists analyze contracts, settlement statements, and supporting documentation to identify discrepancies that can affect producer payments, including:
- Incorrect deductions on product net-back pricing.
- Faulty fuel/electric calculations, CPI adjustments, or average price calculations.
- Overbilled field/buyback gas or exceeded contract margin caps.
- Inaccurate gas analysis or meter fees.
- Internal marketing cost deductions and other intercompany fees.
- Disallowable fees for midstream operator capital investments.
- Inaccurate settlement for bypass gas that is sent to other plants.
- Aid-in-construction recovery issues.
- Gas quality billing issues (e.g., Excessive H2S, CO2, N2 treating fees).
- Pipeline pressure issues where credits are not issued to producers.
Why Timing Matters.
Many midstream agreements limit recoveries to the previous 24 months. As a result, discrepancies that go unidentified beyond that period may no longer be recoverable. Conducting periodic Production Payment Reviews helps producers identify issues sooner, improve payment accuracy, and maximize available recovery opportunities before recovery windows expire.
A Proven Process
Revenew's Production Payment Review team meticulously reviews each contract and settlement statement to pinpoint exactly where and why short-pay or overbilling has occurred.
Beyond identifying errors, we also pinpoint their root causes, providing insights to improve billing processes, support documents, spreadsheets, systems, or business partner relationships to ensure accurate payments and billings in the future. We’ll remain hands-on until you receive a settlement and will assist in the negotiation process.
