Executive Vice President and Chief Operating Officer at Devon Energy
Thanks, Rick, and good morning, everyone. As I reflect back, not just on the quarter, but the last 18 months since we've closed our merger, I'm very proud of what we've accomplished. Last year at this time, we were well past the hard work of organizational design answering the who, but still very deep into the systems process and culture building that's incredibly important to answering the how of running the company. In some ways, we're rebuilding the engine while we ran the race. This year, we're continuing with the never-ending challenge of improving systems, processes and culture, but we're also keenly focused on external factors like inflation and supply chain uncertainty. While these challenges are real and something we dedicate a lot of attention to, I'm also fully confident in our team's ability to once again differentiate Devon from the pack and execute on an exceptionally high level.
The second quarter results are a perfect example of this product related to this focus. As a summary of the operating results displayed on Slide 16, which showcases our solid production beat better-than-forecasted capital efficiency and the expansion of our per unit margins to the highest level in more than a decade. I know it can be a bit mind numbing when the team makes these results look as easy as they have. But listen, every well in the portfolio, average 30-day IP for the entire company of 2,900 BOE per day per well, $60-plus field level margins and a reinvestment rate of 22% are incredibly impressive when you put them into historical context.
The perpetually strong results that we've delivered since the merger between WPX and Devon is simply an outflow of 3 key factors: the high-caliber assets, our talented organization, and a disciplined investment framework that is designed to optimize returns and per share financial growth throughout the cycle. These key factors are held together by a steady strategic vision and a culture that exemplifies our corporate values.
I want to congratulate the entire team for the special results that we're creating together. And I'm confident we will build upon these accomplishments as we progress through the balance of the year and beyond.
Now turning to Slide 17. Our Delaware Basin asset was exceptional -- was the exceptional capital-efficient growth engine that drove Devon's operational outperformance in the second quarter. The net production from the Delaware continued to increase rapidly, growing 22% on a year-over-year basis. This high margin growth was driven by 52 wells brought online that were diversified across our acreage footprint in New Mexico and the Texas Stateline area.
Looking at the project level detail, the top thematic takeaways was the consistent execution and outstanding well production while we achieve across the development programs. This -- a great example of this theme was the prolific results we achieved in our Todd area in Eddy County, where we developed a highly charged thick team of Upper Wolfcamp. The initial 30-day rates from this 12-well Wolfcamp oriented development average 4,500 BOEs per well, with a per well recoveries on track to exceed 1.5 million barrels of oil equivalent.
With the strong upfront recoveries we're experiencing, coupled with the favorable commodity price environment, this package of wells is on track to pay out in less than 6 months.
Next, I want to cover the multi-zone development success that we had in the Potato Basin where our recent activity successfully codeveloped 3 different landing zones: The Third Bone Spring, the XY sands and the Upper Wolfcamp. The initial 30-day rates from Mr. Potato Head project averaged 3,100 BOE per day and given how the shallower drilling depths in this portion of the play, our D&C costs came in as low as $6.7 million per well. As we look to allocate capital for '23 and beyond, this positive result will serve as another valuable data point to optimize future development activity and further deepen our conviction of the resource opportunity in the Potato Basin area.
And lastly, on this slide, we also brought on several high-return pads online in the Stateline area. Adding to our long-term track record of success in this prolific tranche of acreage, our recent capital activity was highlighted by the CBR 8 and 9 pads that outperformed our predrill expectations by as much as 20% with the top well achieving 30-day rates as high as 4,300 BOE per day. In addition to these great wells, another impactful event for us this quarter was a recent trade completed that added to our acreage position in the Stateline area.
Turning to Slide 18. You can see a zoomed-in map of this critical 3,000-acre trade that we completed in the Delaware Basin State Line field. You've heard me on prior quarters, brag about the incredible results the team creates with these land trades. We typically execute dozens of trades every year in the company so far, we have executed on several trades bringing in around 7,000 net acres to the Delaware.
The trade we're highlighting today significantly enhances our Wolfcamp potential in the Stateline area and unlocks more than 200 extended reach drilling locations that were previously constrained to 1 mile developments. This is the economic core of the play and is further enhanced with Devon's significant surface ownership, company-owned wet sand line water recycling and disposal infrastructure and the midstream JV with Howard Energy.
Each of these levers create incremental margin to Devon that other operators would not benefit from. Also importantly, this transaction allowed us to trade out of acreage that was either not scalable to Devon or had lower priority within our capital allocation framework. With this high grading of acreage and the capital efficiencies that come with us, we expect that a net present value uplift to Devon of more than $200 million on a time 0 evaluation. And importantly, when we consider how these projects are getting pushed to the front of the development list, the uplift is over $350 million of present value.
Moving to Slide 19. Another area we enhanced the depth and quality of our drilling inventory was in the Williston Basin. In June, we announced the bolt-on acquisition of RimRock's assets in Dunn County at a highly accretive valuation of around 2x cash flow. This acquisition adds contiguous position of 38,000 net acres, directly offsetting the overlapping Devon's existing leasehold. This consolidates Tier 1 acreage on the Fort Berthold Indian reservation, where we have an exceptional competency for not only the technical perspective, but also the strong relationships with the tribe and with the community.
With completion activity lined up for the second half of the year, we expect production from the acquired assets to exit the year around 20,000 BOE per day, increasing our pro forma production in the Williston to around 65,000 BOE per day.
This acquisition also adds more than 100 highly economic undrilled locations, positioning our Williston assets to maintain this level of high-margin production and strong free cash flow for years to come. Our Williston team continues to perform at an exceptionally high level, and I'm thrilled to reload their opportunity set for continued great results.
And finally, on Slide 20, I'd like to call out the importance of our free cash flow generating assets that are also continuing success and sustainability of our business model. These assets may not capture as many headlines as the Delaware Basin, but I'm proud of the strong execution and consistent operating results that these teams have delivered to fulfill this critical role within our corporate strategy.
As you can see by the slide, by driving capital efficiencies, optimizing base production and keeping operating costs low. These high-quality assets are on pace to grow cash flow by about 40% this year to greater than $3 billion at today's commodity price. With our completion activity ramping up across each 1 of these plays in the second half of the year. I look forward to providing another very solid update on our November call.
And with that, I'll turn the call over to Jeff for the financial review. Jeff?