Oil & Gas

The Art of Free Cash Flow and Managing Demand and Supply Constraints

Here at Peloton we’ve helped companies of all sizes in the Oil & Gas sector take advantage of Business Analytics. Whether you’re focused on Exploration and Production or Oil Field Services, pragmatic solutions come in many flavors, including Free Cash Flow Analysis, Asset Utilization Management and Workforce Management.
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Free Cash Flow – The Oil & Gas sector has been rich with merger activity, and has created firms capable of delivering a variety of services. The challenge in a merger & acquisition environment is to control a broad, decentralized portfolio while keeping a close eye on the free cash flow that ongoing operations produces. This requires a nimble accounting close process and detailed external and internal management reporting and analysis capabilities.

Typical performance management reports analyze Days Sales Outstanding (DSO) and monitor Actual vs. Plan at a consolidated level. This provides a limited rear-view mirror of the organization’s financial performance, and not the right information to adjust operations “in-flight” before issues become problems. Just like we did at Superior Energy, we can help establish a rich analytic reporting environment that is both easy to maintain, yet provides the in-depth visibility across the key processes to help maintain control over free cash flow.
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Asset utilization - Heavy equipment asset management is critical in areas such as oil field services operations. The challenge of matching assets with well operator demand requires a balance of heavy utilization and controlling repairs and maintenance versus capital expenditure to acquire new assets. Knowing where assets are assigned and their status on a timely basis is key to optimizing the Oil Field Services fleet. How has your organization used performance management tools to monitor and report asset utilization? Would your organization be more competitive if all your resource information was readily available?
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Workforce Management - The Oil & Gas sector is faced with several workforce management challenges, including attracting and retaining workers in hard to recruit locations, labor / skills shortages due to retirement of employees in strategic job classes, and ongoing management and allocation of resources. To anticipate and manage these challenges, we have helped our clients gain on-demand access to up-to-date HR information aggregated across Business Units. They are now able to better manage their workforce by having faster access to accurate data, enabling HR teams to focus on providing value-added insight and closely manage the talent pool.
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Project ManagementGaining full and timely insight into asset and resource utilization is critical, yet difficult to attain at a general company level. Taking that visibility down to the project level and tying it back to the P&L is even more important yet challenging, especially in project driven environments such as construction. Through the use of Project Financial Planning (PFP), analysts and business executives alike can slice information by project, as opposed to the conventional Department and Account views. As a result, companies can review and plan financials, assets, and resources at the initiative level, enabling the business to make resource allocation decisions at the right level of detail that will generate the best results.
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We have the pleasure of working with great clients that strive to realize the benefits of Analytics. These clients knew that gaining better insights into business performance was a priority but didn’t know where to begin their efforts. Some purchased tools but didn’t have people with the right skills sets. Others had the skills and tools but were not aligning their efforts to their overall corporate strategy – in effect; they were getting the right answers to the wrong questions. Let us help you get started – with just a small investment of your time we can begin your journey with an Analytics Maturity Assessment. This proven framework will help determine where to start, and what a roadmap could look like for your organization. Contact us at insights@pelotongroup.com to get started.