Fractional Services in Midstream: The Smarter Way to Scale Accounting and Compliance

In today’s oil and gas industry, agility is no longer a luxury; it’s a necessity. Nowhere is this more apparent than in the midstream sector, where companies must navigate operational complexity, regulatory oversight, and rapid shifts in scale due to M&A activity or infrastructure expansion.

Yet, amid these pressures, many midstream companies still struggle to find the right balance between staying lean and maintaining robust back-office operations.

Enter fractional services; a flexible, scalable solution that is transforming how midstream companies approach accounting, compliance, and operational support.

#What Are Fractional Services in Oil & Gas?

Fractional services refer to the outsourcing of specialized business functions to third-party experts who operate as an extension of a company’s internal team. In the context of oil and gas, and especially within the midstream sector, these services typically include:

• Outsourced accounting and financial reporting

• Revenue allocations

• Division of Interest (DOI) management

• Regulatory filings and compliance tasks

• Data entry, reconciliations, and system management

These functions are essential, but they don’t always require full-time, in-house staff; particularly for smaller companies or those in transition. Instead, fractional teams provide just the right amount of expertise and labor when it’s needed most.

For midstream oil & gas companies, this means accessing top-tier talent without the commitment or cost of expanding internal teams.

For a better insight, please refer to the following blog: “Simplifying DOI, Force Pooling, and Escheat”.

#Why Fractional Solutions Are Gaining Ground in Midstream

The increasing adoption of fractional solutions for midstream oil & gas isn’t just a trend; it’s a strategic response to several industry dynamics:

Operational Volatility

Midstream companies often operate in cycles of rapid growth or contraction. Whether it’s due to changing commodity prices, infrastructure expansion, or asset acquisitions, the need for back-office scalability is constant. Fractional services make it possible to scale up or down quickly, without the lag of traditional hiring and onboarding.

Cost Management

Hiring, training, and retaining qualified professionals in accounting, regulatory, or land administration roles is expensive, especially when those needs are temporary. Fractional services for midstream oil & gas companies allow operators to pay only for what they need, reducing fixed overhead while maintaining high-quality outcomes.

Talent Scarcity

The oil and gas industry faces a well-documented labor shortage, especially among professionals with midstream-specific experience. Rather than settling for generalists or overburdening existing teams, companies can tap into fractional back office services for oil and gas that provide highly experienced personnel.

Compliance Pressure

Regulatory expectations for midstream companies have never been higher; from pipeline safety reporting to environmental compliance. Fractional teams bring specialized knowledge and proven workflows, reducing the risk of missed deadlines or inaccurate filings.

For further details, please refer to the following blog: “How Midstream Companies Benefit from Fractional Back-Office Services”.

#Trilogy’s Fractional Services Model: Integrated, Scalable, Proven

At Trilogy, we’ve designed a fractional services model specifically for the complexities of the midstream sector. Unlike traditional outsourcing models, our approach is highly collaborative, technology-integrated, and results-driven.

Comprehensive Midstream Account Management Services

Our offering includes a full spectrum of midstream accounting and operational support:

• Revenue and expense accounting

• Joint interest billing (JIB)

• DOI setup and maintenance

• Regulatory reporting (FERC, PHMSA, State)

• Production allocations

• AP/AR processing

• System administration and data clean-up

#Real-World Scenarios: Where Fractional Services Make the Difference

Post-M&A Integration

After a merger or acquisition, internal teams are often overwhelmed by the sudden increase in data, systems, and reporting requirements. A new set of assets means new ownership records, different revenue streams, and unique regulatory obligations.

Trilogy’s fractional experts can step in immediately to help:

• Normalize data in the TIES system

• Manage transition accounting

• Reconcile legacy records

• Maintain continuity in compliance and reporting

This ensures a smooth integration, without the need to overextend your internal staff or delay closing processes.

Temporary Resource Gaps

Whether due to turnover, parental leave, or unexpected departures, losing key personnel can cripple your back-office operations. Our fractional teams provide immediate oil and gas back office support to fill the gap; ensuring continuity in everything from revenue distribution to regulatory filings.

No recruiting, no long-term contracts; just immediate relief with minimal disruption.

Rapid Company Growth

Success brings its own challenges. As midstream companies grow (expanding pipeline networks, adding new facilities, or increasing throughput), they also face more complex accounting and compliance tasks.

Trilogy’s fractional solutions offer scalable support that grows alongside your operations. From adding new wells and gathering systems to supporting larger audit and reporting requirements, we bring the expertise and tools to keep your growth smooth and sustainable.

#Key Benefits: Why Fractional Services Are the Smarter Move

Lower Cost

Avoid the expense of full-time salaries, benefits, and training. Pay only for the time and expertise you need. Whether it’s 10 hours a week or 10 people full-time during integration, Trilogy’s model is built for cost efficiency.

Higher Accuracy

Our professionals are oil and gas experts with years (sometimes decades) of experience in midstream operations. They work within the TIES system daily, minimizing errors and ensuring consistency across workflows.

Immediate Scalability

Need help tomorrow? No problem. Our teams are trained and ready to step into your environment with minimal onboarding. We’ve designed our fractional model to respond to dynamic needs quickly, often within days.

Reduced Risk

With Trilogy, you gain access to proven processes, standard workflows, and built-in quality checks. That means fewer errors, better documentation, and reduced exposure to regulatory fines or missed deadlines.

Focus on Core Operations

By outsourcing back-office complexity, your internal teams can focus on what they do best: managing field operations, maintaining assets, and driving profitability.

#A Modern Solution for a Modern Midstream Industry

The oil and gas industry is evolving and so should your approach to operations. In an environment where every dollar counts and agility is key, fractional services for midstream oil & gas companies offer a powerful way to stay lean, compliant, and responsive.

At Trilogy, we’re more than a service provider; we’re your strategic partner in back-office transformation. Our midstream account management services are purpose-built to meet your current challenges and adapt to your future needs.

So, if your company is navigating rapid growth, preparing for a transition, or simply wants to optimize accounting and compliance, Trilogy’s Fractional Services could be the answer.