Extraction Announces Startup of Elevation Midstream’s Badger Central Gathering Facility and Provides Elevation 2020 Guidance
“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
“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
1 Free cash flow is a non-GAAP measure. For a definition of free cash flow, read “Non-GAAP Financial Measures” included herein.
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included herein are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “will,” “continue,” “potential,” “should,” “could,” and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for us to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the “Risk Factors” section of our most recent Form 10-K and Forms 10-Q filed with the
Non-GAAP Financial Measures
Extraction’s free cash flow is not a measure of net income (loss) as determined by
Management believes free cash flow for Extraction is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. Our computations of free cash flow for Extraction may not be comparable to other similarly titled measures of other companies. We believe that free cash flow for Extraction is a widely followed measure of operating performance. Additionally, our management team believes free cash flow for Extraction is useful to an investor in evaluating our financial performance because this measure (i) is widely used by investors in the oil and natural gas industry to measure a company’s operating performance without regard to items excluded from the calculation of such term, among other factors, (ii) help investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital structure from our operating structure and (iii) is used by our management team for various purposes, including as a measure of operating performance, in presentations to our board of directors, as a basis for strategic planning and forecasting.
Source: Extraction Oil & Gas, Inc.