Austin, Texas (June 30, 2020) – Enverus, the leading oil & gas SaaS and data analytics company, has released OpenInsights for Suppliers, a first-of-its-kind solution that gives service and supply companies the ability to analyze their daily sales outstanding (DSO) and make data-driven, calculated forecasts for their ever-changing business needs. Service companies devastated by the crude oil demand drop will gain critical insights typically reserved for other segments of the industry.
“If you’re an oil field services company and a major customer cuts capex, what does that mean for your volume of work and cash-flow predictability? What’s been the customer’s pattern of payment and how do you adjust in an environment where there’s less activity? This is what OpenInsights for Suppliers helps to answer,” said Akash Sharma, product manager at Enverus. “We can provide transparency where companies previously had to guess about their next moves.”
As reported by Enverus, rig counts continue to decline week over week in basins across the U.S., directly impacting oil field service companies. But indicators to quantify when the shale industry will rebound go beyond just the rig count. Even as oil prices stabilize, many wells remain unprofitable and companies are slashing capital spending. Enverus estimates North American E&P capital expenditures have dropped more than 40% from last year’s levels.
Oil & gas service and supply companies range across a variety of categories, from pipe manufacturers to those providing artificial lift. In all cases, managing DSO is a challenge. In the current economic downturn, it’s particularly important that companies have the capability to understand where their cash is tied up in order to maximize revenue and profitability. Enverus’ advanced spend analytics solution unlocks this insight, improving the ability to evaluate payment patterns and structure better contracts with customers.
OpenInsights for Suppliers provides visibility into timing and payment habits of operators and allows suppliers to better forecast revenue. It adds to Enverus’ OpenInsights family of solutions uniquely focusing on analytics-driven spend and revenue analysis and supply chain optimization.
“Service and supply companies competing in this challenging market must have a way to analyze and make choices where they see the highest likelihood of success,” said Colin Westmoreland, Sr. VP and general manager of Market Research at Enverus. “Suppliers may have customers that provide a high volume of business, but due to slow payment, are reducing cash flow, while other, smaller customers may be paying on a more predictable schedule. When caught in this predicament, users of OpenInsights will know whom to choose. Understanding this allows for more accurate forecasting of revenue and better structuring of contracts. And, this solution will help companies operating within extremely tight margins get paid faster.”
“Certainly some of these decisions come down to taking work wherever you can get it, but confidence in those decisions has been incredibly difficult—until now. Today’s challenging environment is about cutting costs, but also growing revenue, and both are achievable with OpenInsights,” said Westmoreland.
To learn how to begin using business automation solutions for greater transparency, Enverus encourages existing customers to contact their account manager and new customers to contact a sales representative via www.enverus.com.
Visit enverus.com/managing-the-energy-market to stay informed of the latest market conditions.
Enverus is the leading data, software, and insights company focused on the energy industry. Through its SaaS platform, Enverus provides innovative technologies and predictive/prescriptive analytics, empowering customers to navigate the future. Enverus’ solutions deliver value across upstream, midstream and downstream sectors, enabling the industry to be more collaborative, efficient and competitive. With more than 1,300 employees across the globe, the Company’s solutions are sold to more than 6,000 customers across 50 countries. Enverus is a portfolio company of Genstar Capital and brings together the technology of Drillinginfo, RS Energy Group, PLS, 1Derrick, MineralSoft, Midland Map Co., Oil-Law Records, MarketView, DataGenic Group, PRT, Oildex, Cortex, Red Dog Systems, and RigData as one company. Creating the future of energy together. Learn more at www.enverus.com.