Outsourced Oil & Gas Accounting for Texas Operators
A conversation about your wells and how your back office runs today. Valor typically follows up with a proposal for how the work would flow.
- Since 2018Fort Worth & Midland, TX
- SOC-certifiedcontrols
- Inc. 50002021–2025
- BBB A+rating
What Valor Can Run for Texas Operators
Depending on scope, Valor can take on any of these functions, or all of them:
| Function | What Valor can do |
|---|---|
| Accounting & bookkeeping | Accounts reconciled on a written close calendar, financial and operational reports, reconciliation workpapers, and audit support |
| Joint interest billing | JIB coded to wells and AFEs with COPAS overhead applied under the JOA, partner statements traced to invoices and AFEs, aged partner receivables, and AFE-versus-actual reporting |
| Revenue distribution | Purchaser revenue checked for volumes, prices, and deductions; owner statements and payments off a current deck; revenue exceptions flagged |
| Owner relations & division orders | Pay decks, division orders, owner inquiries, suspense with a documented reason for every item, and 1099s |
| Land administration | Lease and contract abstracts, an obligation calendar, and decimal calculations |
| Railroad Commission & tax filings | P-5 renewals, Form PR, drilling and completion filings, and severance tax and state production reports on the state calendar |
You typically approve disbursements and deck changes and keep every operational and capital decision; Valor typically runs the processing, reconciliations, billing, and reporting.
The Texas Deadlines Your Back Office Has to Meet
Texas sets its own clocks for paying owners, paying production taxes, and reporting production. These are the ones a Texas operator’s back office typically runs on:
| Requirement | Texas rule | Source |
|---|---|---|
| First payment to owners | Within 120 days after the end of the month of first sale from the well, subject to the § 91.402 exceptions listed below the table | Tex. Nat. Res. Code § 91.402 |
| Later payments to owners | Oil: within 60 days after the end of the month the oil is sold. Gas: within 90 days. Subject to the § 91.402 exceptions listed below the table. | Tex. Nat. Res. Code § 91.402 |
| Interest on late payments | Two percentage points above the rate the New York Federal Reserve Bank charges on loans to depository institutions, unless a different rate is agreed in writing; it does not apply to payments withheld under the § 91.402(b) exceptions below | Tex. Nat. Res. Code § 91.403 |
| Oil production tax | 4.6% of market value; reduced rates or exemptions can apply to some wells. Confirm specifics with a CPA or tax advisor. | Texas Comptroller |
| Gas production tax | 7.5% of market value; reduced rates or exemptions can apply to some wells. Confirm specifics with a CPA or tax advisor. | Texas Comptroller |
| Monthly production report (Form PR) | Due on or before the last day of the month after the production month | Railroad Commission of Texas |
| Organization report (Form P-5) | Renewed annually, with financial assurance under Statewide Rule 78 for most regulated activity | Railroad Commission of Texas |
§ 91.402 exceptions: The payor and payee can agree to different terms in writing; balances of $100 or less can be paid annually; and payments can be withheld without interest for a title dispute, reasonable doubt about the payee’s title or right to sell, a title-opinion requirement about the payee’s title, identity, or whereabouts that is still unmet after the payor has made a reasonable request for curative information, or a child support lien or withholding order. Under § 91.402(c), a payor can also require a signed division order, limited to the terms that subsection lists, as a condition of payment.
Summarized from the statutes and agency guidance as of September 2026. This is general information, not legal or tax advice; check the source and confirm with an attorney or CPA before relying on a specific rule, rate, or deadline.
Valor can keep these filing deadlines on its compliance calendar and log each filing with its submission date, supporting documents, and confirmation.
Serving Operators Across Texas
Valor typically serves operators across Texas, including Houston, Dallas, and San Antonio, from its offices in Fort Worth and Midland, and can support operators in the Permian Basin (Midland and Delaware), the Eagle Ford, the Barnett, and the Haynesville. Operators with wells in other states can keep one provider: Valor can also handle filings with Oklahoma’s OCC, New Mexico’s OCD, North Dakota’s DMR, Louisiana, Colorado’s ECMC, and the BLM.
Running wells in Texas?
Tell us about your wells, where they are, and how your back office runs today, and we can talk through how Valor would take it on.
Start the conversationSoftware, Pricing, and Getting Started
- Software: Valor typically works on industry-standard oil and gas accounting software such as OGSYS, Enertia, WolfePak, Quorum, P2 Energy, and BOLO, on your license or Valor’s. Valor typically encourages smaller operators to run on Valor’s licenses; that software is typically billed through separately.
- Pricing: Valor typically prices operator services from a standard price sheet: a baseline tiered by number of wells, plus variable charges for other types of work. Fees are typically not based on transaction volume.
- Cost: For small and mid-size operators, Valor’s operator services can typically run 30–50% less than equivalent in-house staff.
- Transition: Valor typically handles system setup. It typically cuts over at the start of a month, typically ties converted balances back to your prior trial balance, and typically runs the first close in parallel or under extra review.
Engagements typically start with a scoping conversation to plan the work. Valor then typically sends a proposal for how the work would run. Running a formal selection? Valor can answer your RFP.
What Operators Say
“Valor has provided superior oil and gas accounting, revenue, joint interest billing and regulatory services. They are one of the best oil and gas back office providers that I have worked with.”
— Stephen B.
“Valor has provided a comprehensive and seamless solution for our JIB & Revenue accounting. Cathy and the rest of the Valor team have been responsive, knowledgeable, and have gone above and beyond to proactively address our accounting and bookkeeping needs.”
— Lori B.
Contact Valor
Fill out the form below and one of our experts typically reaches out to discuss your needs.
Frequently Asked Questions
Valor can run accounting and bookkeeping, joint interest billing, revenue distribution, owner relations and division orders, land administration, and Railroad Commission filings for Texas operators, one function at a time or all together. Valor typically runs the work on industry-standard oil and gas accounting software, and you typically approve disbursements and deck changes.
In Valor's summary of Texas Natural Resources Code § 91.402, the first payment is due within 120 days after the end of the month of first sale from a well. After that, oil proceeds are due within 60 days and gas proceeds within 90 days after the end of the month the production is sold. Exceptions: the payor and payee can agree to different terms in writing; balances of $100 or less can be paid annually; and payments can be withheld without interest for a title dispute, reasonable doubt about the payee's title or right to sell, a title-opinion requirement about the payee's title, identity, or whereabouts that is still unmet after the payor has made a reasonable request for curative information, or a child support lien or withholding order. Under § 91.402(c), a payor can also require a signed division order, limited to the terms that subsection lists, as a condition of payment.
In Valor's summary of Texas Natural Resources Code § 91.403, late payments generally accrue interest at two percentage points above the rate the New York Federal Reserve Bank charges on loans to depository institutions, unless the payor and payee agree to a different rate in writing. Interest does not apply to payments withheld under § 91.402(b): a title dispute, reasonable doubt about the payee's title or right to sell, a title-opinion requirement about the payee's title, identity, or whereabouts that is still unmet after the payor has made a reasonable request for curative information, or a child support lien or withholding order.
In Valor's summary, Texas taxes oil at 4.6% of market value and natural gas at 7.5%, and reduced rates or exemptions can apply to some wells. For how the tax applies to your production, confirm with a CPA or tax advisor.
Valor can keep Form PR, the Railroad Commission's monthly production report, on its compliance calendar and log each filing with its submission date and confirmation. Form PR is due on or before the last day of the month after the production month.
Valor can file and renew Form P-5, the organization report a Texas operator must keep active with the Railroad Commission. The P-5 is renewed annually, and most regulated activity requires financial assurance under Statewide Rule 78.
Valor typically serves operators across Texas, including Houston, Dallas, and San Antonio, from its offices in Fort Worth and Midland.
Valor typically prices operator services from a standard price sheet: a baseline tiered by number of wells, plus variable charges for other types of work. Software on Valor's licenses is typically billed through separately.
Valor can work on the operator's own license or on Valor's licenses for industry-standard systems such as OGSYS, Enertia, WolfePak, Quorum, P2 Energy, and BOLO. Valor typically encourages smaller operators to run on Valor's licenses.
Key Takeaways
- Full back office: Valor can run accounting, joint interest billing, revenue distribution, owner relations, land administration, and Railroad Commission filings for Texas operators.
- Owner payment clock: The first payment to owners is due within 120 days after the end of the month of first sale; after that, 60 days for oil and 90 for gas, subject to written agreements, an annual option for balances of $100 or less, and holds for title issues, an unsigned division order, or child support liens (Tex. Nat. Res. Code § 91.402).
- Production taxes: Texas taxes oil at 4.6% and gas at 7.5% of market value, with reduced rates or exemptions in some cases.
- RRC filings: Form PR is due on or before the last day of the month after production, and the P-5 organization report is renewed annually.
- Statewide: Valor typically serves operators across Texas, including Houston and Dallas, from its Fort Worth and Midland offices.
- Get started: Contact Valor for Texas operator services.
