With CGI managing its Business Process Services, Range Resources can focus on core processes

"By partnering with CGI for our back-office outsourcing services, we have been able to control costs without sacrificing reliability."

Roger Manny, Chief Financial Officer

The Client
Working with Range Resources, CGI is expertly exploiting the benefits of Business Process Outsourcing.

Range Resources, an independent oil and gas company operating in Permian, Midcontinent, Gulf Coast and Appalachian regions, is engaged in the development, exploration and acquisition of oil and gas properties. Range's year-end 2002 proved reserves totaled 578 billion cubic feet of natural gas equivalent, with a reserve life index of more than 10.6 years. The reserves are 76% natural gas and are 90% company operated.

The Challenge
Throughout the 1990s, Range grew rapidly, acquiring 70 firms and 8,000 new properties. Since 1993, the company has used an accounting software system to effectively manage its properties and help streamline its operations in the areas of accounting, regulatory reporting, tax and royalty processing, lease administration, transaction processing, production management and division order processing. In 1999, Range contributed its Appalachian properties in a 50% joint venture, Great Lakes Energy Partners LLC and relocated its back-office functions to Fort Worth, Texas.

This move would entail hiring additional staff as well as upgrading its enterprise software and computing system which represented a significant expense and required a lengthy implementation. The preferred alternative was an Application Service Provider (ASP)-based Business Process Outsourcing solution. This would allow the company to focus on core processes related to finding and producing oil and gas, while ensuring access to premier enterprise software systems and a specialized back-office staff. After a competitive bidding process, CGI was awarded a three-year contract in 2000 thanks to its competitive edge in providing a complete service offering. "By partnering with CGI for our back-office outsourcing services, we have been able to control costs without sacrificing reliability. CGI's outsourcing services allows for industry best practices, by deploying experience industry professionals that utilize CGI's proven enterprise oil and gas solution," said Roger Manny, Range's Chief Financial Officer.

The Strategy
Providing outsourcing services through its ASP data center in Dallas has given Range a new business solution for accessing its financial systems through a Web browser. The solution is significant because it integrates finance and accounting BPO and application support into a single service. By outsourcing non-core back-office functions to a third party services provider specializing in upstream energy accounting and IT services, Range can leverage the expertise of a team of accountants in the energy sector and IT professionals for complete upstream financial and administrative processing.

In addition, Range has access to value-added services, including electronic delivery of bills, client statements and regulatory reports to customers through Web-based solutions. The ASP features a centralized integrated database that delivers general accounting, expense accounting, revenue accounting, property operations functions and production reports, all online.

The Technology

• IBM iSeries eServer™
• DB2 database
• CGI ASP Data Center

The Results
CGI has provided Range with new efficiency in regulatory reporting and administration processes. Due to CGI's expertise in the ASP arena and to highly skilled back-office personnel, Range benefits from both a productivity and financial perspective. Range is pleased with the value received from CGI's outsourcing solutions. The complete ASP-based outsourcing solution enhances Range's business processes by placing them online. By leveraging the Internet and proprietary solutions delivered through the CGI ASP, Range is moving in the direction of a system that relies less on paper. The single point storage of information saves data entry time, eliminates redundant data, guarantees consistency for all applications and improves overall system performance. In 2003, Range renewed the contract with CGI to continue to provide BPO services and began implementation on upgrading Range's financial reporting procedures with CGI's Horizon system.