Thank you for standing by. This is the conference operator. Welcome to the Baytex Energy Corp. Third Quarter 2019 Conference Call and Webcast. [Operator Instructions]. After the presentation, there will be an opportunity to ask questions. [Operator Instructions]. I would now like to turn the conference over to Brian Ector, Vice President, Capital Markets. Please go ahead, sir.
Brian G. Ector
Thank you, Savi. Good morning, ladies and gentlemen, and thank you for joining us today to discuss our third quarter 2019 financial and operating results. With me today are Ed LaFehr, our President and Chief Executive Officer; Rod Gray, our Executive Vice President and Chief Financial Officer; Kendall Arthur, Vice President, Heavy Oil; and Chad Lundberg, Vice President, Light Oil.
While listening, please keep in mind that some of our remarks will contain forward-looking statements within the meaning of applicable securities laws. I refer you to the advisories regarding forward-looking statements. Oil and gas information and non-GAAP financial and capital management measures in today's press release. All dollar amounts referenced in our remarks are in Canadian dollars, unless otherwise specified.
And with that, I would now like to turn the call over to Ed.
Edward D. LaFehr
Thanks, Brian, and good morning, everyone. I'd like to welcome everybody to our third quarter 2019 conference call.
I'm very pleased with our strong operating performance, which continued across our asset base during the third quarter. And I'm excited to announce that given our year-to-date results, we now expect to exceed our 2019 full year annual production guidance of 97,000 BOEs per day with exploration and development capital expenditures of approximately CAD560 million. This level of capital spending is at the low end of our original guidance range and reflects our continued commitment to driving cost and capital efficiencies.
And for the third consecutive quarter, we are delivering substantial free cash flow. In Q3, this amounted to CAD74 million, and brings the free cash flow generated year-to-date to CAD271 million. This strong free cash flow has contributed to a 13% reduction in our net debt this year, including the redemption of our USD150 million of long-term bonds during the third quarter.
Our commitment remains to generate free cash flow and further improve our balance sheet. We maintained strong financial liquidity with our credit facilities, approximately 50% undrawn. For the quarter, we generated production of 95,000 BOEs per day, which brings production for the first nine months of the year to 98,000 BOEs per day. These results are consistent with our expectations and reflect the timing of our 2019 development program in Canada and the Eagle Ford and the impact of our third-party facility turnaround at Peace River.
There is no change to our 2019 exit production rate forecast of 95,000 BOEs per day to 97,000 BOEs per day. We delivered adjusted funds flow of CAD213 million or CAD0.38 per basic share and CAD670 million or CAD1.20 per basic share for the first nine months of 2019. And our exploration and development capital expenditures totaled CAD139 million, bringing aggregate spending
Brian G. Ector
Vice President, Capital Markets
Edward D. LaFehr
President and Chief Executive Officer
Rodney D. Gray
Chief Financial Officer
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