BTE NET DEBT - FROM MD&A ON SEDARManagement of debt levels is a priority for us in order to sustain operations and support our long-term plans. At September 30, 2022, net debt(1) of $1.11 billion was $296.2 million lower than $1.41 billion at December 31, 2021. The decrease in net debt for 2022 is primarily a result of the free cash flow(2) of $478.2 million generated during 2022 being allocated towards debt repayment which was partially offset by $141.3 million in common share repurchases completed in conjunction with our shareholder returns initiative.
In May 2022, we began repurchasing our common shares under a previously announced normal course issuer bid ("NCIB") as part of our shareholder return framework. During YTD 2022 we have spent $141.3 million to repurchase and cancel 21.6 million common shares, representing 3.8% of the total shares outstanding at the commencement of the NCIB. We monitor our capital structure and liquidity requirements using a net debt to adjusted funds flow ratio calculated on a trailing twelve month basis.
At September 30, 2022, our net debt to adjusted funds flow ratio(1) was 1.0 compared to a ratio of 1.9 as at December 31, 2021. The decrease in the net debt to adjusted funds flow ratio relative to December 31, 2021 is attributed to higher adjusted funds flow for the trailing twelve months ended September 30, 2022