Continental Resources, the largest producer in North Dakota's Bakken formation, reported a net loss of $239.3 million for the second quarter of 2020 on weaker oil volumes and oil price realizations. This compares to earnings of $236 million for the second quarter of 2019. Adjusted net loss for second quarter-2020 was $255.7 million, compared to net earnings of $219 million for the same quarter a year ago.
During the second quarter, about 55% of the company's operated oil volumes were shut in. Total production for the second quarter averaged 202,815 boe/d, down nearly 40% from a year ago. Second quarter oil production averaged 95,174 b/d. Natural gas production for the quarter averaged 645.8 MMcfd.
"By deferring volumes in the second quarter of 2020, we expect to generate an estimated $90 million in incremental cash flow from operations at $40 WTI," said Bill Berry, chief executive officer.
Continental Resources has updated its 2020 annual production guidance to 155,000-165,000 b/d and 800-820 MMcfd. The company has updated its third-quarter 2020 production guidance to 280,000-300,000 boe/d and its 2020 exit rate production guidance to 310,000-330,000 boe/d. As of June 30, 2020, the company had 215 wells in progress and expects to end the year with 140. The company expects to average 7.7 drilling rigs and 2.5 stimulation crews in 2020.
Revised production guidance is forecasted to generate about $1.3 billion of annual cash flow from operations and $200 million of annual free cash flow at $40/bbl WTI, with $615 million of cash flow from operations and $500 million of free cash flow in the second half of 2020. The company believes it is essential to prioritize the balance sheet and is targeting total debt of $5.4-5.5 billion by yearend 2020.
Continental Resources is on track to achieve its previously revised 2020 capex guidance of $1.2 billion or lower, a 55% decrease from original guidance of $2.65 billion. The company continues to drive maintenance capital lower and estimates $1.2 billion D&C maintenance capital or lower to hold production flat year-over-year in 2021.
The company said that its Bakken completed well cost has decreased 12% year-over-year to $7.2 million per well, with about 70% of these savings being structural and South completed well cost has decreased 10% year-over-year to $9.5 million per well, with about 80% of these savings being structural.