Author: Valor

The oil and gas industry is continuing to undergo optimizations and advancements, largely driven by technology. Among these, cloud-based solutions are increasingly vital, particularly in the realm of mineral management. These mineral management platforms are revolutionizing how mineral owners track, manage, and optimize their assets.

Real-Time Data Access Anywhere, Anytime

In today’s fast-paced market, the ability to access data in real-time from anywhere in the world is not just a convenience—it’s a necessity. Valor’s proprietary mineral management platform software, mineral.tech®, strived to be ahead of the game and was developed over five years ago. While it is continually updated and evolving, at its core it allows clients to access their mineral interest data 24/7, anywhere in the world. This capability ensures that Valor’s team and clients are always informed and can react promptly to changes in the market, operational conditions or flag inconsistencies and errors regarding payment.

Holistic Portfolio Management

Cloud-based platforms like mineral.tech® offer a comprehensive view of a company on individuals mineral assets. Stakeholders can obtain a holistic understanding of their portfolios, which facilitates more strategic decision-making. The mineral management platforms ability to drill down into detailed views of interests, tracts, units, and wells provides a granularity that was difficult to achieve with traditional management systems or outdated paper maps and paper filing systems. This level of detail is crucial for thorough asset management and strategic planning.

Tracking and Analysis

One of the most significant advantages of using a cloud-based mineral management system is the capability to track and analyze various financial aspects. Clients can monitor monthly revenue streams from working interests, lease operating expenses (LOE), and royalty revenue. Such tracking ensures that all financial records are up-to-date and accurate, aiding in better financial planning and compliance with regulatory requirements.

Benefits to Stakeholders

While we know it can be daunting to leave old ways of mineral management in the past, the transition to cloud-based solutions offers numerous benefits:

• Efficiency Improvements: Automating data collection and processing reduces the need for manual entry, decreasing the likelihood of errors and increasing operational efficiency.
• Scalability: Cloud platforms can be easily scaled up or down based on the needs of the individual or business, allowing for flexibility as interests owned and managed expand or contract.
• Enhanced Security: Advanced security measures and data backups are standard features of reputable cloud-based solutions, such as mineral.tech®, ensuring that critical business data is protected against loss and hacking. Valor is proud to have achieved both a SOC 1 Type 1 and Type 2 audit and certification, further instilling confidence in our clients that their data and financial information are secure.

The shift towards cloud-based mineral management programs such as mineral.tech® is indicative of broader trends within the oil and gas industry toward digitization and operational efficiency. By adopting these modern technologies, companies not only streamline their operations but also gain strategic advantages in a competitive marketplace. This move is not just about keeping up with technology—it’s about staying ahead in a rapidly evolving industry.

By embracing cloud-based systems, the mineral management sector is setting a new standard for efficiency and strategic management, ensuring mineral owners and managers can make the most informed decisions for their financial and operational success.

Contact Valor Today

Contact us today to learn more about our mineral management platform solutions.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

In today’s digital age, where information security and data protection are paramount, organizations across the globe are increasingly required to demonstrate their commitment to these principles. One of the key ways businesses can showcase their adherence to high standards of security and data management is through a Service Organization Control (SOC) audit.

In a move to underscore our unwavering commitment to security, data protection, and client trust, Valor is proud to have successfully achieved both SOC 1 Type 1 and SOC 1 Type 2 audits and certifications. This milestone is a testament to the rigorous standards we uphold in managing our clients’ assets and the emphasis we place on maintaining a secure and trustworthy environment. Valor aims to provide our current and prospective clients with the highest level of assurance regarding our control environments. Achieving both Type 1 and Type 2 certifications not only demonstrates our capability to design effective controls but also affirms their operational effectiveness over time. It’s a clear indicator of the value we place on building and maintaining trust, showcasing our leadership in setting industry standards for data protection and client service.

But what exactly is a SOC audit, and how do SOC 1 Type 1 and SOC 1 Type 2 audits differ? Let’s dive into these questions to provide a better understanding.

What is a SOC Audit?

A SOC audit is a standardized procedure for evaluating the extent to which a service organization conducts its business in accordance with certain trust principles. These principles revolve around security, availability, processing integrity, confidentiality, and privacy of the system used to process users’ data. Conducted by independent auditors, SOC audits result in a report that provides valuable information regarding the effectiveness of a service organization’s controls related to these principles.

SOC audits are categorized into three types: SOC 1, SOC 2, and SOC 3, each serving different purposes and audiences. SOC 1 audits, specifically, focus on the controls at a service organization that may impact clients’ financial reporting. This type of audit is crucial for the service organization’s clients who need assurance about the security and processing integrity of the data managed by the service provider.

SOC 1 Type 1 vs. SOC 1 Type 2

When we talk about SOC 1 audits, it’s essential to understand the distinction between Type 1 and Type 2 reports, as they serve different objectives and offer varying levels of insight into the organization’s controls.

SOC 1 Type 1

A SOC 1 Type 1 audit is a snapshot of the service organization’s systems and the suitability of the design of its controls at a specific point in time. This type of report assesses whether the service organization’s controls are properly designed to achieve the desired objectives. However, it does not evaluate the effectiveness of these controls over a period of time. The main purpose of a SOC 1 Type 1 report is to provide assurance about the control design to the service organization’s clients and their auditors.

SOC 1 Type 2

In contrast, a SOC 1 Type 2 audit is more comprehensive. It not only assesses the suitability of the design of controls but also evaluates the operational effectiveness of those controls over a defined review period, typically no less than six months. This type of report provides an in-depth analysis of the service organization’s controls, including detailed testing of the controls’ effectiveness over time. A SOC 1 Type 2 report is particularly valuable for clients and their auditors because it offers assurance that the controls are not only appropriately designed, but also consistently applied.

Both SOC 1 Type 1 and SOC 1 Type 2 audits play crucial roles in the landscape of information security and financial reporting. While a Type 1 audit provides a snapshot of control design at a specific point in time, a Type 2 audit offers a more detailed and ongoing assessment of control effectiveness.

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Contact Valor Today

Contact us today to learn more about our oil and gas outsourcing services.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Production Reporting, Visual Insights and Solutions for Mineral Owners

In the ever-fluctuating landscape of the mineral industry, staying informed about the volume of your mineral production and the current commodity pricing is not just beneficial, it’s essential. For mineral owners, having a detailed, month-over-month analysis provides a comprehensive view of your assets’ performance, enabling proactive management and strategic decision-making. At Valor, we understand the significance of this visibility and offer tailored solutions to ensure our clients can easily navigate the complexities of mineral ownership.

Why Frequent Monitoring Matters

1. Identifies Problems Early: Having access to regular monitoring and reporting of production volumes and commodity prices can alert you to discrepancies or sudden changes in your wells’ performance. Early detection of these issues allows for timely investigation and resolution, preventing potential revenue loss.

2. Facilitates Accurate Forecasting: With the volatile nature of commodity markets, having up-to-date information is crucial for accurate revenue forecasting. Month-over-month tracking enables mineral owners to anticipate cash flows based on current market conditions, allowing for better financial planning and investment decisions.

3. Enhances Decision Making: Access to current data empowers mineral owners to make informed decisions regarding their assets. Whether it’s evaluating the profitability of new drilling opportunities or considering the sale of certain mineral rights, having a clear understanding of your assets’ current and potential value is invaluable.

Valor’s Comprehensive Solutions

At Valor, we’ve developed a proprietary mineral management platform, mineral.tech®. This state-of-the-art platform was designed specifically for mineral owners. Our system not only provides you with the critical data you need but also visualizes it in an easily digestible format. Here’s how we make a difference:

Visual Data Display: Our team utilizes mineral.tech® to generate detailed overviews on a well-by-well basis as well as aggregate data for your entire portfolio. This visual representation allows for easier comprehension of trends, making it simpler to identify areas of concern or opportunity.

Graph Creation: With mineral.tech®, you can see custom graphs that highlight the specific information you’re interested in. Whether you want to examine the performance of a single well over time or compare the output of your entire portfolio, our platform provides the flexibility to tailor your analysis to your needs.

Missing Check Payment Reports: An added layer of service and support Valor provides is our monthly missing check payment reports. These reports are crucial for ensuring that all payments due to you are accounted for. If a payment is missing, our team promptly investigates and rectifies the issue, safeguarding your revenue stream. This feature within the platform has helped to identify ample revenue that was being held in suspense for various clients.

Conclusion

For mineral owners, the importance of frequent monitoring of production volumes and commodity pricing cannot be overstated. It’s the foundation of effective asset management, providing the insights needed to maximize profitability and mitigate risks. At Valor, we’re committed to providing our clients with the tools and support they need to succeed in the dynamic mineral industry. Through our innovative mineral.tech® platform and dedicated team, we offer a seamless solution for visualizing your assets’ performance and ensuring your financial interests are protected. Let Valor help you unlock the full potential of your mineral ownership.

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Contact Valor Today

Contact us today if you need support with mineral management.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor’s Director of Business Development, Aaron Calhoun, addresses the top 5 questions he gets asked most offten by prospective mineral management clients

Our team frequently receives questions from prospective clients who are seeking expert support in managing their mineral assets. These inquiries cover a wide range of topics, from understanding mineral rights ownership to maximizing revenue and ensuring compliance with legal and regulatory requirements. Recognizing the importance of these concerns, we’ve dedicated this blog to addressing these questions head-on. Our aim is to provide clear, insightful answers that not only help demystify the complexities of mineral rights management but also illustrate how our services can offer valuable support. Whether you’re new to mineral ownership or looking to optimize the management of your assets, this blog is designed to answer your top questions.

1. Will Valor ensure I am being paid correctly on my mineral assets?

Answer: Yes. At Valor, ensuring you are being paid correctly on your mineral assets is a fundamental part of our service. We conduct thorough royalty audits and closely monitor payment statements from operators to verify that you receive every dollar you are entitled to. Our proprietary mineral management software, mineral.tech®, allows us to run pay status reports and discover missing payments. Our team also cross-references production reports, sales data, and lease agreement terms to ensure accuracy in royalty calculations and payments. If discrepancies are found, we take immediate action to rectify them on your behalf. Additionally, our team stays informed on market trends and legal changes that could affect your revenue, ensuring that your payments reflect the current value of your assets. Our proactive approach and attention to detail mean you can have peace of mind knowing that your mineral assets are being managed diligently and profitably.

2. Can Valor help increase the revenue from my mineral rights?

Answer: Valor leverages extensive industry knowledge and relationships, market intelligence, proprietary mineral management software and strategic negotiation skills to secure the most favorable lease terms and royalty rates for our clients. By actively managing leases, monitoring market trends, and advocating for your interests, we aim to increase revenue from your mineral rights. Additionally, our expertise in legal and regulatory compliance can help avoid costly penalties and ensure that your assets are managed efficiently. Lastly, while our team might not “increase” your revenue, we often recover suspended funds that mineral owners are unaware of. These discoveries can help mineral owners gain access to money that is rightfully theirs.

3. Can I still be involved in decision-making if I outsource the management of my mineral rights to Valor?

Answer: Of course. We always consult with our clients before proceeding with any decisions regarding their assets. Our goal is to manage and optimize day-to-day operations and work with you as much or as little as you desire. We believe in maintaining an open line of communication and ensuring that you are fully informed about and comfortable with the decisions being made about your mineral rights. Your involvement in the decision-making process is crucial to us, as it helps ensure that our actions align with your goals and expectations.

4. What access will I have to my revenue and land records?

Answer: Our proprietary mineral management software, mineral.tech®, provides our clients with comprehensive access to their revenue and land records. This innovative platform allows you to see all your land assets accurately mapped and offers digital access to any corresponding documents, such as deeds, lease agreements, and royalty statements. Furthermore, you can track your revenue down to the well, product, county, state, and payor. This level of detail and transparency ensures that you have a clear and complete understanding of your mineral rights portfolio and its performance at all times.

5. What is Valor’s fee structure for mineral rights management?

Answer: Fees for mineral management vary on the scope of work (SOW) and services requested by prospective clients. Our team prepares personalized quotes for onboarding and monthly management. For example, a client who utilizes our land management, mineral.tech® software, accounting, scanning and mail services will likely have a higher fee than a client who utilizes us solely for mineral management accounting. Valor’s fees are not based on a percentage of gross revenue that our clients make.  Our estimates, quotes and ultimately our monthly invoice is billed by the hour for the work performed. Unlike other mineral management companies, we do not make a percentage of money off your revenue. Our goal is to bring value to your assets through our proactive approach to managing these assets for you.

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Contact Valor Today

Do you need help managing your minerals? If so, contact us today.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

In the dynamic world of oil and gas operations, efficient and accurate production reporting stands as a cornerstone of successful management and regulatory compliance. Valor is at the forefront of providing solutions tailored to enhance the production reporting process for oil and gas operators. Our services are designed to tackle the challenges of production reporting head-on, ensuring operators can maximize efficiency, ensure compliance, and make informed decisions. Let’s delve into what production reporting is, its importance and how Valor can help.

What is Production Reporting?

For operator services, production reporting encompasses several key activities:

• Data Collection: Gathering accurate and timely data on the volume of hydrocarbons and water produced from each well. Modern technologies can facilitate real-time data collection directly from the wellhead.
• Data Analysis: Analyzing this data to identify trends, optimize production, and assess the performance of each well. This can involve comparing expected versus actual production volumes and understanding the reasons for any discrepancies.
• Regulatory Compliance: Submitting detailed production reports to relevant regulatory bodies to comply with local, state, and national regulations. These reports are crucial for demonstrating compliance with environmental standards, paying appropriate taxes, and fulfilling royalty obligations.
• Financial Reporting and Forecasting: Using production data to inform financial statements, investor reports, and operational forecasting. This includes estimating future production volumes, revenues, and assessing the economic viability of assets.

Why is Production Reporting Important?

1. Regulatory Compliance: Regulatory bodies require detailed production reports to ensure that operations are conducted responsibly and that appropriate royalties and taxes are paid. Compliance avoids legal penalties and sustains good standing within regulatory frameworks.

2. Operational Efficiency: Regular, accurate production reporting allows operators to monitor the performance of their wells closely, identifying issues such as equipment failures or declines in reservoir productivity early. This can lead to timely interventions that restore or enhance production levels.

3. Financial Management: Production data directly impacts an operator’s financial performance. Accurate reporting ensures that operators can reliably track revenue, manage cash flow, and make informed decisions about investments, operations, and strategic planning.

4. Strategic Decision Making: By analyzing production data over time, operators can identify trends and opportunities for optimization, such as the potential for enhanced oil recovery techniques or the need to adjust development plans. This supports more strategic, data-driven decision-making.

5. Stakeholder Confidence: Transparent and accurate production reporting builds trust with stakeholders, including investors, partners, and the public. It demonstrates operational competence and financial viability, which are crucial for attracting investment and maintaining a company’s reputation.

6. Environmental Stewardship: Through detailed production reporting, operators can also monitor and manage their environmental impact, ensuring compliance with regulations designed to protect ecosystems and reduce carbon footprints. This is increasingly important in the context of global efforts to address climate change and promote sustainable energy practices.

Valor’s Added Value

Valor’s dedicated oil and gas outsourcing team specializes in handling the intricacies of production reporting for oil and gas operators, offering a seamless, efficient solution that significantly reduces the burden on operators. Our team is equipped with the latest technology and in-depth industry knowledge, ensuring that all aspects of production reporting—from data collection and analysis to regulatory submission and financial forecasting—are managed accurately and in compliance with all relevant laws and regulations. By entrusting Valor with this critical function, operators can reallocate their time and resources towards core operational activities, focusing on optimizing production and exploring new opportunities without the overhead of managing complex reporting requirements. Valor’s outsourcing services not only ensure regulatory and financial compliance but also provide operators with peace of mind and the freedom to pursue strategic objectives, secure in the knowledge that their production reporting is in expert hands.

Conclusion

In an industry where efficiency, compliance, and informed decision-making are paramount, Valor stands as a beacon of support, offering oil and gas operators the tools they need to succeed. Our production reporting solutions are designed with the operator’s needs in mind, ensuring that every aspect of production reporting is covered, from regulatory compliance to financial transparency. Let Valor empower your operations with the clarity and efficiency needed to thrive in today’s competitive oil and gas landscape.

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Contact Valor Today

Contact us today if you need support with managing your production reporting.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Welcome to our Valor Employee Spotlight series! In this edition, we’re thrilled to introduce Jeff Rowe, Senior Data Analyst. Jeff is a vital member of the Valor family and we can’t wait for you to learn more about him!

Background and Experience

Jeff’s professional journey is a testament to his adaptability and passion for continuous learning. As a traveling project accountant, he traversed the country, immersing himself in diverse job sites and serving as a crucial link between those locations and the corporate office. This role not only honed his skills in processes, analytics, systems, and procedures but also ignited his love for these domains. It was amidst this backdrop of constant travel and exploration of new environments that Jeff discovered another passion: programming. In his spare time, he began to delve into the world of coding, demonstrating his eagerness to expand his expertise and embrace new challenges. This combination of practical experience in finance and accounting, coupled with an interest in programming, has equipped Jeff with a unique blend of skills that are highly valuable in the modern workplace.

Role at Valor

In his role as a Senior Data Analyst at Valor, Jeff plays a pivotal role in steering the company towards data-driven decision-making and operational excellence. His primary responsibilities involve analyzing and interpreting complex data sets to unearth actionable insights that guide strategic business decisions and enhance operational efficiency. During a period of unprecedented growth, Jeff has been at the forefront of developing and leading accounting efforts, ensuring the organization scales its financial processes efficiently and effectively.

Jeff’s technical skillset has led to the creation of innovative solutions aimed at automating internal processes and managing expenses more effectively, thereby contributing significantly to the company’s bottom line. His proficiency in VBA, SQL, and the Windows Operating System, along with a deep understanding of the Microsoft Office Suite and Google Workspace, enables him to tailor solutions that fit Valor’s unique needs. Moreover, Jeff’s skills extend to Python custom development, where he leverages this powerful programming language to build bespoke tools and applications that further automate and streamline Valor’s operations.

Jeff’s Favorites

Outside the Office
Outside the office, Jeff enjoys further honing his programming skills, spending time with his wife, and playing video games.

Favorite Drink/Food
Jeff is both a coffee addict and connoisseur, delighting in exploring the diverse world of coffee flavors and brews. When it comes to food, his guilty pleasure is Taco Bell.

What Jeff Loves Most About Valor

Jeff’s favorite aspects of working at Valor revolve around the vibrant work environment and the culture of innovation that permeates the company. He is particularly enthusiastic about going to work every day, not just to tackle the tasks at hand, but to “geek out” on new projects that challenge his skills and expand his knowledge. He also appreciates the personal space and focus that comes with having his space, combined with the company’s provision of all the necessary tools and resources, fosters his creative freedom. This autonomy allows him to explore and implement innovative solutions, making his role at Valor deeply rewarding and aligned with his professional aspirations and personal interests.

Jeff is a remarkable example of the talent we have here at Valor. Stay tuned for more employee spotlights to learn about the incredible individuals who make Valor a great place to work!