Client Story

Next-gen IT in rapid fashion

KPMG helped Encino Energy stand up an entire IT infrastructure from scratch in 12 months.

Kimberly M. Sorensen

Kimberly M. Sorensen

Managing Director, CIO Advisory, KPMG US

+1 713-319-2044

Kevin Martelli

Kevin Martelli

Principal, G&S, Enterprise Innovation Leadership, KPMG US

+1 267-256-3312

Client
Encino Energy
Sector
Energy
Project
IT operating model and cloud-first technology infrastructure
  • Client challenge
  • Key KPMG initiatives
  • Business impact
  • Why KPMG?

Client challenge

Encino Energy is a privately owned oil and gas acquisition and development company formed in 2011 and based in Houston, Texas. They acquire and operate working assets in multiple onshore U.S. basins.

The commitment to being an outstanding corporate citizen led to the development of Encino’s Community Partnership program, specifically designed to work alongside communities in building partnerships that create long-term economic development. In addition, Encino is a proud partner and supporter of multiple outstanding community-minded organizations that share our vision of sustainable growth.

Encino grew more than ten times its size, almost overnight, without an IT infrastructure to match. The company worked with KPMG to stand up an entire IT infrastructure in 12 months--one that would grow and flex with future demands.

Making the strategic decision to “go big or go home,” Encino Energy acquired $2 billion in assets, increasing the company’s size and scale by more than 10 times. In short order, this 30-person company operating five gas wells in Texas grew to over 300 people operating an additional 900 wells in Ohio—but without the supporting information technology (IT) infrastructure to match.

With an urgent need to operationalize an entire IT function from scratch, with the ability to grow and flex with future demands, it turned to KPMG to lead the effort.

Key KPMG initiatives

Moving from greenfield to full implementation required the rapid deployment of KPMG professionals with experience in everything from strategy through execution, including transformation management, cyber strategy, data strategy, and upstream production operations.

Teams operated on two fronts—defining the technology and operating model for future production operations and migrating technology for the target acquisition—all while meeting aggressive timelines.

Over the course of 12 months, KPMG:

  • acted as the client’s technology lead advisor to help define the IT strategy and create a future-state IT operating model prior to the selection of the chief information officer
  • helped the company evaluate managed service providers and functioned as the IT team in the meantime to successfully transition infrastructure and application support
  • worked with Encino to create the new IT operating model strategy, to help select technology to operate the business, and create IT operating processes, while also providing program management
  • set up new technologies in a new building and deployed all core operational technology needed to run 900 new wells, even as new employees continued to be hired.

Importantly, we helped the client define and build an aggressive cloud-first strategy. Unlike many exploration and production companies, Encino operates with the majority of their technology assets in the Cloud, the bulk delivered via Software as a Service (SaaS) or from Azure, Microsoft’s cloud computing service.

We also helped the client view data as an asset. As we advised the company on master data management and data and analytics implementation, we helped Encino gain the insights the company needs to continue operating more efficiently and achieve higher profit margins on new wells.

Business impact

By adopting the KPMG leading-class approach to technology, Encino Energy has become a next-generation exploration and production company, able to:

  • smoothly transition all employees to work remotely during COVID-19, thanks to a KPMG cloud-first strategy
  • easily access, mine, and analyze data because 90 percent of their software landscape is built on a Microsoft foundation with an effective strategy for master data management and data integration
  • mitigate immediate cyber threats with the definition of a clear cybersecurity strategy
  • expand future capability maturity in IT service management, asset management, and financial management based on the KPMG roadmap for the company’s new IT department.

Why KPMG?

When timing is of the essence

Leveraging our existing IT experience, a broad knowledge of the energy sector, and proven data an analytics strategies and leading practices, the hands-on approach of our multi-faceted team ensured speed-to-value, achieving in months what often takes years to conceive and implement.

We are prepared for the future

A diverse wealth of knowledge and experience underpins the KPMG solutions delivered today. They well-prepare our clients for the Future of IT and ever-changing business demands. And teaching our clients to view data as an asset helps them gain the information needed to make better insight-driven, data-based decisions for their future success.

In the midst of both an acquisition and an office move, KPMG helped us execute on our most time-sensitive technology needs while simultaneously guiding us toward a future-proof technology strategy focused on scalable growth and leveraging data as one of our most valuable assets.
J. Baron Unbehagen, CIO, Encino Energy