Q2 earnings are out Highlights for the quarter include:
Cash provided by operating activities was $24.4 million
Adjusted funds flow(a) of $17.3 million, or $0.09 per share, exceeded net capital expenditures(a) of $10.7 million and generated $6.6 million of excess cash
Total production of 45,271 boe/d (up 5% from second quarter 2019)
Liquids production achieved a record of 4,646 bbls/d, up 80% from the second quarter 2019 and up 25% from the first quarter of 2020
Gas production of 244 mmcf/d (up 1% from second quarter 2019), demonstrating the low decline rates of our natural gas assets, with only one Glacier well brought on-production this year
Advantage quickly responded to unprecedented market volatility during the second quarter of 2020 by deferring spending on planned liquids projects, restricting initial production from new oil wells and reducing our 2020 capital budget with focus on short cycle payout gas weighted projects. In addition, Advantage closed the previously announced sale of 12.5% of its Glacier Gas Plant for $100 million on July 2, 2020, reducing net debt(a) to approximately $257 million from $365 million as at March 31, 2020. Advantage anticipates generating cash in excess of capital spending for the remainder of 2020 and through 2021, reducing net debt to adjusted funds flow(a) to less than 2 times.
During the second quarter, Advantage achieved several key milestones which contributed to record liquids production. This included commissioning of our 5,000 bbl/d Pipestone/Wembley oil battery and bringing on additional production at both Progress and Wembley. These successes have derisked the assets further and reinforced our ability to quickly shift back to oil development once prices recover.
Adjusted funds flow(a) was $49.4 million or $0.26 per share for the first half of 2020 and $17.3 million or $0.09 per share for the second quarter of 2020.
Net loss was $20.1 million during the second quarter of 2020 due to lower adjusted funds flow(a) and $14.1 million unrealized losses on derivatives.