C&J Energy Services, Inc. Shortens Financial Report Cycle by More Than 80%, Gains Granular Insight into Critical Industry Metrics
 
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C&J Energy Services, Inc. Shortens Financial Report Cycle by More Than 80%, Gains Granular Insight into Critical Industry Metrics

  • Oracle Customer:  C&J Energy Services, Inc
    Location:  Houston, TX, United States
    Industry:  Oil and Gas
    Employees:  1,100
    Annual Revenue:  $500 Million to $1 Billion

C&J Energy Services, Inc. provides premium hydraulic fracturing, coiled tubing, and pressure pumping services with a focus on complex, technically demanding well completions. In addition, through its subsidiary Total E&S, Inc., the company manufactures and repairs equipment used in the energy services industry. C&J Energy Services operates in what the company believes to be some of the most geologically challenging basins in South Texas, East Texas-North Louisiana, Western Oklahoma, and West Texas-East New Mexico.

A number of converging factors spurred C&J Energy Services to reevaluate its financial reporting environment. First, the hydraulic fracturing market, in which C&J Energy Services operates, began to grow rapidly. At the same time, the company began to pursue an acquisition strategy. Combined, these factors helped to drive three-fold revenue increases between 2009 and 2010, and 2010 and 2011. The company also went public, requiring more robust financial management and reporting capabilities.

C&J Energy Services looked to replace its cumbersome reporting system with a comprehensive, scalable, Web-based application that could accelerate financial reporting and enable more granular insight.

The company worked with interRel Consulting to implement Oracle’s Hyperion solutions, including, Oracle Essbase and Oracle Hyperion Smart View for Office, for financial reporting and planning to improve revenue and profitability data and cash management.

The Oracle Hyperion solution enables the company to report financial information in just seconds, a process that previously took hours. With this 80% improvement in the financial report the finance team has much more time for analysis.

The new environment also enables the company to capture and report on critical industry metrics, such as revenue per horsepower and well-stage tracking.

 
 

 
 

Challenges

A word from C&J Energy Services, Inc

  • “With Oracle’s Hyperion solutions, we can easily pull company financial information whenever we need to, which is something we were unable to do before. Now, we can use timely data to develop more accurate forecasts—a critical factor for our continued growth in the oil and gas services industry.” – Mark Cashiola, Corporate Controller, C&J Energy Services, Inc.

  • Replace legacy system—which required the company to generate financial reports from scratch each month and provided limited ad hoc capabilities—with an application to accelerate financial reporting and enable more granular insight
  • Enhance management reporting to gain a timely view of performance data for specific market segments, such as hydraulic fracturing
  • Expand reporting capabilities—particularly around the metrics that financial analysts track for the oil and gas industry, such as revenue per horsepower and well stages—to support performance management and business intelligence
  • Deploy a comprehensive, scalable, Web-based application to support three-fold revenue increases between 2009 and 2010, and 2010 and 2011—a direct result of a rapidly growing hydraulic fracturing market and the company’s acquisition strategy
  • Improve ability to track and analyze labor, equipment, and material costs—including expenses for sand and chemicals, which are used extensively in hydraulic fracturing processes

Solutions

Oracle Product and Services

  • Worked with interRel Consulting to implement Oracle’s Hyperion solutions, including Oracle Essbase, and Oracle Hyperion Smart View for Office, for financial reporting and planning to improve revenue and profitability data and cash management
  • Ensured that C&J Energy Services can run monthly standard reports at the click of the button and enabled ad hoc analysis through Microsoft Excel using Oracle Hyperion Smart View for Office
  • Gained the ability to report financial information in just seconds, a process that previously took hours
  • Reduced financial report cycle time by more than 80% and gave the finance team more time for analysis
  • Created dozens of new reports to assist with financial analysis including reports on labor, equipment, and materials that the company purchases―helping it to visualize cost spikes and dips and then target those areas for further analysis
  • Developed quarterly reports for vital oil and gas industry metrics that Wall Street analysts track, including revenue per horsepower, well stages, and number of projects
  • Secured a 100% satisfaction rating among employees who used the old system and now use the new system
  • Completed the implementation on time and budget, in just eight weeks, working with interRel Consulting
  • Laid the foundation for implementing future capabilities, such as detailed vendor analysis for better utilization and management of high-expense line items, budgeting and forecasting, and in-depth analysis of revenue and cost by hydraulic fracturing fleet

Why Oracle

“We needed to change our strategy to provide more in-depth reporting and analysis to support performance management and business intelligence. We evaluated both Microsoft and Oracle, and selected what we believed to be the market-leading and more robust Oracle solution,” said Mark Cashiola, corporate controller, C&J Energy Services, Inc.

Implementation Process

C&J Energy Services’ detailed revenue, income statement, and balance sheet reporting solution implementation took just eight weeks, with one full-time interRel Consulting employee assigned to the project. interRel Consulting completed the implementation remotely, eliminating travel costs for C&J Energy Services.

Partner

  “We selected interRel Consulting over several competitors because no other company could compare to interRel’s Hyperion implementation experience. InterRel also delivered our project on time and budget, which was a huge advantage for us,” Cashiola said. (interRel Consulting is an Oracle Specialized partner.)