Integrated Capital Management at Legacy Oil & Gas
Legacy Reserves aligns teams, eliminates data errors and easily shares critical Information
Legacy is an intermediate upstream oil and gas company with a management team committed to aggressive, cost effective production growth. As their business grew more complex, they began to experience a number of pains in the management of capital budgets. Many of these pains centred on the consistency and transparency of their planning data. Their planners were increasingly dependent on multiple disparate sources for their planning data.
At one point, it seemed like every team member had his or her own spreadsheet. These inconsistencies created difficulties conducting important planning activities such as reconciling expenditures with the budget or understanding the sensitivities of changes to their drilling schedule, and the impact of those changes on their capital exposure and production profile.
Legacy had existing tools in place, but they were growing out of these old systems, and were now attempting to use a single tool for more jobs than it was capable of handling.
Legacy conducted an extensive search for a new solution, which included reaching out to their peers for word of mouth recommendations. They found what they were looking for with Aucerna – a capital planning solution that could handle the complex budgeting, scheduling, forecasting, sensitivity analysis and tracking workflows they relied on. Moreover, it provided all of these capabilities within a single solution.
Now, not only could they build their annual budgets, they could use it on a daily basis throughout the year to track actuals and understand if they were on course to meet or exceed their budgets. Aucerna platform would allow Legacy to schedule rig contracts, and quickly understand the implications of changing the timing of rigs, or the number of rigs utilized. Also, they could perform monthly look backs, resulting in a clearer understanding of what was causing capital creep and how to prevent it from happening.
Another reason for choosing Aucerna was the level of service and quality of support they could provide:
“The implementation service and support was outstanding and a big reason why the product has blossomed in our company. I can’t understate that it was truly outstanding. I have no regrets about switching to Aucerna and would bring it with me to other companies in the future. It is an excellent tool that is constantly improving to provide a niche solution for the oil and gas industry.”
Today, Legacy imports their capital and production volumes into Aucerna platform on a monthly basis. From there they are able to tweak the schedule and forecast, to ensure they deliver on their numbers. As Rob Fiorentino, Exploitation Manager at Legacy states, “If you can measure it, you can manage it”.
The results are regularly presented to the executive team, providing leadership with awareness of Legacy’s capabilities, commitments, and pending hurdles, in order to set realistic performance expectations. This extremely beneficial process gets all stakeholders onto the same page, increasing confidence in their decisions.
When it becomes necessary to delay a rig, or add another, Legacy uses Aucerna Platform’s built in scheduler to show everyone in the boardroom how these changes will affect the numbers for the year. This visibility is provided on the fly, allowing decisions to be explored in detail, and executed quickly.
“It is a niche solution unlike anything I’ve ever seen before, and I have been looking for years. I wouldn’t want to work somewhere that didn’t have it because it brings the company together “singing from the same song sheet”. Once established and set up it literally “runs itself” and requires minimal maintenance throughout the year, similar to an underground sprinkler system. And similar to underground sprinkler systems, once you’ve used one you can’t imagine returning to the old way of doing things.”
Budgeting, Forecasting, AFE, RTD, and Resource Scheduling. Aucerna brings together more business processes into a single application. Aucerna is critical to tracking exactly how much projects will cost and how long they will take. Aucerna offers a complete capital and upside production management solution that allows you to gauge the health of your organization today, and prepare your business for growth tomorrow.
“I have no regrets about switching to Aucerna and would bring it with me to other companies in the future. It is an excellent tool that is constantly improving to provide a niche solution for the oil and gas industry.”
Rob Fiorentino, Exploration Manager – Legacy Oil and Gas