Calfrac Cracks the Data Conundrum
Situation at Calfrac Prior to the Deployment of the Capital Expenditure Dashboard
In the fast-paced environment of the energy sector, swift and accurate financial decision-making is essential for companies to uphold profitability and gain a competitive edge. Nonetheless, conventional financial reporting systems frequently lack the capability to seamlessly integrate operational data.
Despite possessing an abundance of valuable financial data, Calfrac’s CFO struggled with viewing it alongside operational data to attain timely insights into capital projects. This disconnect inhibited their ability to ascertain costs and evaluate ROI and capital performance. Fundamentally, they sought answers to questions like “How much money are we investing in a project, how much do we have left to spend, and, most importantly, what projects are at risk of being over budget, directly impacting ROI?”
Our new dashboard provides detailed, real-time insight into the financial health of our annual capital program."
Mike Olinek CFO, Calfrac Well ServicesSolutions & Benefits of the Capital Expenditure Dashboard
To address these issues, our experts first focused on the user requirements of a Capital Expenditure Dashboard. This dashboard integrates annual budgets, actual costs, and future capital commitments to provide a comprehensive view of expected costs by project on a near real-time basis to improve decision-making.
The dashboard provides real-time data visualization, with the flexibility to filter and drill down into the data. It is tool-agnostic in terms of presenting the data, while also adhering to industry reporting and data model best practices.
This joint project between Calfrac, AST, and Blend360 (a sister Recognize company of AST) focused on the following business goals:
- Efficient Capital Deployment: Align systems to better plan and deploy capital
- Effective Capital Project Management: Identify opportunities to manage capital programs/projects more time- and cost-efficiently
- Increase Cash Flow: Increase the ability to manage capital projects more effectively (via better project visibility to optimize spending), thereby increasing overall cash flow
For Calfrac, the dashboard leverages the following KPIs, which can be filtered by project, approval status, business unit, or currency:
- Approved AFE budget
- AFE YTD and ITD spend
- Available capital to spend
- Forecasted capital to be spent
- Watch list of over/underspent AFEs
- AFEs requiring supplement
- Projected capital spend variance
Solution Components:
- Oracle Enterprise Planning Cloud
- AST Capital Expenditure Dashboard
Why AST?
Acting as a trusted advisor to Calfrac, AST closely collaborated with all parties on business requirements, toolsets, and expectations to ensure a positive business outcome. Additionally, the project yielded a reusable data model and dashboard interface.