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More Accurate Planning Delivers Bigger Pipeline Profits

Customer Company Size

SME

Region

America

Country

United States

Product

Sage 500

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Productivity Improvements
Cost Savings

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Functions

Business Operation

Use Cases

Advanced Production Planning and Scheduling
Demand Planning & Forecasting

About The Customer

Momentum Midstream is an independent midstream energy company that provides oil and gas producers with flexible, responsive and reliable midstream services linking the wellhead to the market. One of their current projects, Utica East Ohio Midstream, LLC, will be building and operating the largest single location natural gas processing plant in the United States. This growth-oriented strategy has resulted in a history of consistent performance for their stakeholders, including producers, employees and investors.

The Challenge

Momentum Midstream, an independent midstream energy company, was facing challenges with their budgeting and forecasting processes. They were relying on spreadsheets to manage these processes, but as the company grew and the processes became more complex, it became clear that the manual process was too inefficient and error-prone. Momentum’s business model and revenue stream depend on them providing a turn-key natural gas production facility, planning for the physical capacity of over a billion dollars in property plant and equipment, and also the human capacity in terms of a trained and productive workforce. Being able to accurately forecast the resulting demand for cash over an 18-24 month pre-production cycle is paramount to their success. They were spending far too much time chasing down broken links and double-checking formulas for errors.

The Solution

Momentum Midstream implemented a new budgeting and planning process that helped create their annual budget 50% faster than using spreadsheets in the first year. Managers from across the organization were able to gather together in virtual forecast planning sessions and watch how discussed strategy changes would impact their budgets. With each change to assumptions, they could verify the projected effect in real time. They set up a series of drivers very specific to their business at a macro level, and were able to compare not only the financial impact but also compare these assumptions on versions and see differences between budget forecast and actuals.

Operational Impact

The new budgeting and planning process has helped create their annual budget 50% faster than using spreadsheets in the first year.
Managers from across the organization were able to gather together in virtual forecast planning sessions and watch how discussed strategy changes would impact their budgets.
They can now model major changes in a matter of hours. Minor changes are done with management in a real time strategy session.

Quantitative Benefit