Accounting in Oil and Gas Industry for Sustainable Growth
Enhance efficiency and profitability with specialized oil and gas accounting services. We provide around-the-year tax strategy, financial reporting, and compliance management.
An Experienced CPA Here for You
In this business, the financial landscape is as complex as the geology. Price swings, regulatory shifts, and the capital intensity of operations make robust financial management non-negotiable. It’s not just about tracking dollars; it’s about understanding the unique structure of your projects and ensuring your finances are built to withstand volatility.
That’s the environment we operate within. Our specialized accounting services oil and gas companies depend on are designed for this environment. We focus on the precise financial management that allows you to confidently manage your assets, comply with regulations, and allocate capital effectively because sound numbers are the foundation for every operational decision you make.
Why Effective Accounting Is Crucial in the Oil and Gas Sector
In this industry, accounting isn’t just about numbers on a ledger. Between fluctuating commodity prices, heavy upfront investments, and complicated royalty and joint interest billing, there’s a lot that can go sideways if your books aren’t precise. Missing a depreciation schedule or miscalculating lease expenses can have real consequences on cash flow and profitability.
Managing Market Volatility & Commodity Price Risks
Oil prices swing, and they swing hard. That affects everything from budgets to drilling schedules. Accounting in oil and gas industry means keeping a close eye on costs, margins, and forecasts so you’re not blindsided when the market shifts.
Regulatory Compliance and Environmental Reporting
State and federal rules aren’t optional. Environmental reporting, royalty payments, tax filings – all of it has to be exact. Falling behind isn’t just a paperwork issue; it can trigger audits or fines. Solid accounting keeps you compliant without constant firefighting.
Improving Efficiency Through Oil and Gas Accounting Solutions
From tracking joint interest billing to calculating royalties, a specialized accounting system saves time and reduces errors. When your finances are clear, managers can make decisions confidently instead of guessing. That’s how companies in this sector stay profitable and avoid surprises.
Who We Serve
At Evans Sternau CPA, we work with all kinds of companies that need specialized accounting for oil and gas industry operations. Every business has its quirks, and we make sure the numbers actually reflect what’s happening out in the field. We typically partner with:
Exploration & Production (E&P) companies
Tracking production costs and lease expenses in real time, keeping budgets realistic as projects move from drilling to production.
Drilling operators and contractors
Handling the messy parts of cost tracking, equipment spending, and day-to-day bookkeeping while crews stay focused on the work itself.
Oilfield service providers
Making payroll, billing, and revenue reporting as painless as possible.
Landman and lease management firms
Managing royalties, lease payments, and joint interest billing without surprises.
We get it: each part of the industry works differently. That’s why our approach is flexible, practical, and focused on giving companies clarity on their financials while staying compliant.
Meet Your Oil and Gas CPAs
CHAD EVANS
Managing Partner
Chad Evans, Co-Founder of Evans Sternau CPA, is a seasoned expert in financial analysis and operational management. His focus is on developing client-first strategies for various sectors, including Leisure & Hospitality, Oil & Gas, Healthcare, Financial Services, Manufacturing, Software Developers and more.
CHRIS STERNAU
Managing Partner
Chris Sternau (Certified Public Accountant, CFP®, Co-Founder of Evans Sternau CPA) specializes in comprehensive tax, financial, and estate planning services for high-net-worth families and businesses across Real Estate, Oil & Gas, Technology, Healthcare, Manufacturing, and more.
Why Choose Evans Sternau CPA for Oil & Gas Accounting
You need a CPA firm that speaks your language and understands your balance sheet isn’t built like anyone else’s. Here’s how we deliver a different kind of oil and gas accounting partnership.
We Understand Operations, Not Just Spreadsheets
When you mention joint interest billings, AFEs, or intangible drilling costs, we’re already on the same page. Our team brings years of direct experience working with the specific financial structures and reporting requirements that define your operations.
Your Business, Your Unique Financial Framework
We don’t believe in a one-size-fits-all approach. Your financial systems should be built around how you operate, not the other way around. We design tailored accounting frameworks that accurately track asset performance, manage complex joint ventures, and provide the clarity you need at both the wellhead and the corporate level.
Compliance is Managed, Not Monitored
Our team builds compliance into your process from the start. Our focus on risk management means we proactively address reporting requirements for revenue recognition, environmental regulations, and tax code specifics, turning a major operational risk into a managed routine.
A Focus on Financial Performance and Clarity
Our work is measured by the clarity and utility of your financial data. We provide detailed, asset-level reporting and analysis that allows you to identify inefficiencies, control lease operating expenses, and make capital allocation decisions with greater confidence.
Simplify Finances with Specialized Oil and Gas Accounting
Our Oil and Gas Accounting Solutions
Running an oil and gas business isn’t like running a typical company. There are big upfront costs, fluctuating commodity prices, and a tangle of leases and royalties to keep track of. That’s why we offer oil and gas accounting solutions designed to make the numbers actually make sense, so you can focus on running operations instead of worrying about spreadsheets.
Financial Reporting & Analysis
We help companies see the full picture, including production costs, operating expenses, and capital investments, all in one place. More than just numbers, we provide context so managers can make decisions that actually affect the bottom line. Sometimes it’s as simple as spotting a recurring cost that can be cut, other times it’s planning for the next big investment.
Tax Planning & Compliance for Oil and Gas
Our focus is on navigating the critical specifics. This includes properly handling IDCs, maximizing depletion allowances, and identifying qualifying R&D activities. We structure your operations to minimize tax liability while staying fully compliant with state and federal regulators.
Outsourced CFO & Advisory Services
Sometimes you need more than a bookkeeper; you need a strategic partner in the room. For that, we step into the role of your finance lead. We’ll help you model the ROI on a new drilling program, manage your cash flow through price cycles, and provide the financial clarity needed for securing financing or evaluating a potential acquisition.
Recent Oil & Gas Experience
Our recent work in the field has given us direct, practical experience with the financial challenges you’re facing right now. We’ve been in the room with E&P companies reviewing AFEs, with drilling contractors optimizing rig payroll, and with land management firms auditing complex royalty decks.
This hands-on background means we understand the specific details of effective oil and gas accounting, such as properly categorizing workover expenses or navigating severance tax reporting across different states.
Our focus is on providing the accurate, timely financial data you need to make operational decisions, from managing day-to-day lease operating expenses to planning your next capital project.
Services for You
In the oil and gas sector, intricate financial operations are the standard, not the exception. At Evans Sternau CPA, we provide the specific financial controls and reporting you need to manage them. Our focus is on delivering the precise accounting oil and gas industry professionals rely on to handle complex joint ventures, regulatory mandates, and asset-specific performance tracking.
We built our practice to address the core financial functions that determine your operational and fiscal health. This means ensuring your tax strategy fully accounts for IDCs and depletion, your financial reports accurately reflect well-level profitability, and your compliance measures stand up to scrutiny.
Core Services:
That isn’t all we provide. We also offer additional services; for instance, payroll, 1031 Exchanges, and Entity Selection.
Explore more Industries
Discover how our specialized CPA knowledge applies across various sectors facing unique tax and compliance challenges.
FAQs
What is accounting in the oil and gas industry?
It’s the specialized financial practice for tracking every dollar from the ground up. Standard accounting doesn’t cut it. We handle unique processes like joint interest billing (JIB), where costs are split among partners in a well, and royalty accounting, which ensures landowners get their precise share of production revenue.
Why is oil and gas accounting important for profitability?
Because generic bookkeeping obscures your true costs and revenues, when you can’t accurately track expenses down to the individual well or asset, you can’t identify which operations are truly profitable. Proper accounting gives you that clarity. It allows you to control lease operating expenses, make informed decisions on workovers versus new drills, and leverage every available tax incentive.
How do oil and gas accounting solutions help manage complex royalties and JIB?
For JIB, a proper system meticulously allocates shared costs based on working interest ownership, preventing billing disputes with partners. For royalties, it automates complex division order calculations, ensuring each mineral owner is paid their exact decimal interest from production revenue. This eliminates manual errors, saves countless hours, and maintains crucial trust with your partners and landowners.
What accounting services does ES.CPA offer for oil and gas companies?
We focus on the core financial functions that drive your operations. This includes full-cycle financial reporting compliant with the full-cost or successful efforts method, and strategic tax planning. We also act as an outsourced CFO, providing the strategic analysis for capital budgeting, cash flow forecasting, and evaluating acquisitions or divestitures.
How can outsourcing accounting benefit oil and gas firms?
By outsourcing, you gain an entire team of oil and gas accounting specialists on demand. This not only controls fixed costs but also provides deeper financial expertise, leading to better tax outcomes, improved compliance, and more strategic use of your financial data.
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