Transforming the Energy Sector: A Success Story of Agile Digital and Financial Transformation
One of the largest independent midstream energy corporations in North America and a growth-focused provider of midstream services.
Within the 90-day conditions of our client’s Transition Services agreement, Finance, Accounting, Treasury, Reporting, and all other back-office activities, including launch of a digital platform, had to be established in order to manage newly acquired assets and be scalable for future acquisitions.
Our digital and financial transformation initiatives initially supported the client’s $350MM acquisition and were executed at an approximate cost of $1.8MM. More impressively, the business process outsourcing solution we implemented became a vital growth catalyst. It enabled the seamless scaling of the client’s operations over a two-year period, culminating in a successful Initial Public Offering (IPO) just two years after the acquisition. The company’s market cap soared to an impressive $4B, underlining the value of strategic digital and financial transformation in the energy sector.
This case is a testament to our capabilities in digital and financial transformation. By adopting a swift, comprehensive, and forward-thinking approach, we were able to turn an operational challenge into an opportunity for scalable growth, paving the way for our client’s remarkable success in the industry.
This case is a testament to our capabilities in digital and financial transformation. By adopting a swift, comprehensive, and forward-thinking approach, we were able to turn an operational challenge into an opportunity for scalable growth, paving the way for our client’s remarkable success in the industry.
Read on for more information on how we successfully delivered a positive outcome for our client.
In an ambitious move, our client, a dynamic player in the energy sector, acquired two integrated gathering and processing systems, complete with around 1,900 miles of pipeline drawing from nearly 3,500 wells across two states. This acquisition came with an immediate need: a requirement to outsource all finance, accounting, and information technology functions to sustain the newly purchased assets’ operations and scale with future acquisitions. However, the acquisition deal only included field personnel, leaving a significant gap in the necessary support functions. The 90-day transition period demanded the creation of an entirely new technology platform, comprehensive finance and accounting capabilities, treasury, reporting, and all other back-office operations to manage the fresh assets and cater to the scalability requirements for subsequent acquisitions.
Understanding the urgency and complexity of the situation, we leveraged our expertise in digital and financial transformation to address the challenge. Our solution was twofold: to rapidly implement an advanced technology infrastructure and business applications to support field operations, and to establish a robust finance and accounting framework.
On the technology front, we deployed cutting-edge systems that not only maintained business continuity during the transition from the selling company but also assured seamless operations and scalable potential in a remarkably short 90-day period.
Simultaneously, we orchestrated a robust finance and accounting organization to meet all operational reporting needs. This entity provided robust financial support, transaction processing, financial statement preparation, and established a comprehensive system of internal controls, all within the strict transition timeframe.
On the technology front, we deployed cutting-edge systems that not only maintained business continuity during the transition from the selling company but also assured seamless operations and scalable potential in a remarkably short 90-day period.
Simultaneously, we orchestrated a robust finance and accounting organization to meet all operational reporting needs. This entity provided robust financial support, transaction processing, financial statement preparation, and established a comprehensive system of internal controls, all within the strict transition timeframe.
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