ConocoPhillips reported second-quarter 2021 earnings of $2.1 billion, compared with second-quarter 2020 earnings of $300 million and first-quarter 2021 earnings of $1.0 billion. Excluding special items, second-quarter 2021 adjusted earnings were $1.7 billion, compared with a second-quarter 2020 adjusted loss of $1.0 billion and first-quarter 2021 adjusted earnings of $900 million (OGJ Online, July 30, 2020; May 4, 2021). Special items for the current quarter included a gain on Cenovus Energy shares and a contingent payment from Cenovus associated with the 2017 Canadian disposition, partially offset by corporate expenses.
Production excluding Libya for second-quarter 2021 was 1.547 MMboe/d, an increase of 566,000 boe/d from the same period a year ago. After adjusting for closed acquisitions and dispositions as well as impacts from the 2020 curtailment program, second-quarter 2021 production increased 46,000 boe/d or 3% from the same period a year ago. This increase was primarily due to new production from the Lower 48 and other development programs across the portfolio, partially offset by normal field decline. Production from Libya averaged 41,000 boe/d.
In the Lower 48, production averaged 794,000 boe/d, including 435,000 boe/d from the Permian basin, 227,000 boe/d from the Eagle Ford, and 95,000 boe/d from the Bakken. In Alaska, drilling commenced at GMT2 and the first Fiord West well spudded from the CD2 pad. In Norway, the Tor II project was completed with the remaining three wells of the eight-well program brought online.
Earnings increased from second-quarter 2020 due to higher realized prices and volumes, partially offset by the absence of the second-quarter 2020 gain following completion of the Australia-West divestiture, as well as higher depreciation expense associated with the higher volumes. Excluding special items, adjusted earnings were higher compared with second-quarter 2020 due to higher realized prices and higher volumes, partially offset by increased depreciation expense associated with the higher volumes.
For the quarter, cash provided by operating activities was $4.3 billion. Excluding working capital, ConocoPhillips generated CFO of $4.0 billion. Cash flow from operations was reduced by about $200 million due to a discretionary pension plan contribution during the period. The company also funded $1.3 billion of capital expenditures and investments, paid $600 million in dividends, repurchased $600 million of shares, and reported $1.8 billion in net sales of investments in financial instruments.
Outlook
Third-quarter 2021 production is expected to be 1.48-1.52 MMboe/d, reflecting seasonal turnarounds planned in Alaska and the Asia Pacific region. This guidance excludes Libya and assumes that previously announced divestitures close during third-quarter 2021.