Extraction Oil & Gas, announced that Elevation Midstream, its wholly-owned subsidiary, has begun moving crude oil, natural gas and water through its Badger central gathering facility (CGF). Extraction also provided 2020 capital budget guidance for Elevation.

“We are pleased to announce this milestone achievement for Elevation as we now have crude oil, natural gas and water volumes flowing from the first wells on our Interchange pad in Broomfield in addition to wells from the nearby Coyote Trails pad to the Badger CGF via our pipeline gathering system,” said Extraction President and Acting CEO Matt Owens. “We expect Elevation’s volumes to grow considerably over the years as Extraction continues to focus much of its development activities in Broomfield and the surrounding areas served by Elevation.”

“As we fine tune our upstream budget and forecast a relatively small Elevation capital budget next year, we expect Extraction to be free cash flow positive1 on a fully consolidated basis beginning in fourth-quarter 2019 and continuing in 2020.”

Elevation 2020 Capital Budget Guidance

Elevation’s planned 2020 capital budget is expected to be $30 – $40 million, including its investment in unconsolidated affiliates, that will be used to expand the pipeline gathering system to reach additional pads and associated volumes into Badger.