And with that, I'll turn the call over to our President and CEO, Al Walker. Al?R. A. Walker Thanks, John, and good morning. It's a pleasure to discuss with you yet another strong operating quarter. The company produced several significant accomplishments, which speaks to the power of the portfolio we've accumulated. As a reminder, we provided a comprehensive summary of Anadarko's global E&P activities in our quarterly operations report, which is available on our website. There are 4 accomplishments we would like to bring to your attention this morning. First, record sales volumes of almost 750,000 barrel of equivalents a day, which included a 20,000-barrel per day increase in higher-margin oil sales volumes over the first quarter of this year. Second, significant free cash flow totaling $142 million. When including the collection of the first installment of the Algerian tax resolution, this amount increases to $255 million. Three, industry-leading deepwater exploration and appraisal success continues at Anadarko. We announced our second world-class natural gas accumulation, offshore Mozambique, with discoveries at Golfinho and Atum. This new complex is estimated to hold 10 to 30 TCF of recoverable resources and is fully contained on our block. We also have new opportunities in deepwater Côte d'Ivoire with our oil discovery. We also, in addition to that, have appraisal success in the Gulf of Mexico, with results at Vito led the partnership to increased estimated recoverable resources of the field. And four, our continued commitment to value acceleration. We announced 2 joint venture carried interest agreements valued at about $1 billion in the aggregate for our Salt Creek Enhanced Oil Recovery project in Wyoming and our deepwater Lucius development in the Gulf of Mexico. These transactions significantly enhanced project returns in a tax-efficient manner and enable us to reinvest the avoided capital into shorter-cycle, high-return opportunities. You can anticipate we'll continue to look for ways to employ this approach elsewhere in the portfolio.
These 4 accomplishments and the consistent high level of operating performance support our confidence in our portfolio and the ability of Anadarko's people to continue delivering differentiating results today and in the years to come.As we've done for some time, we will continue to manage capital allocation to ensure investments are directed to the highest return projects possible, while maintaining our commitment to operate within cash flow. Even though we are operating in very volatile commodity price environments, we are committed to this approach. Consistent with our philosophy, we reduced our operated rig count in the Marcellus and are reducing rigs in the Greater Natural Buttes while redirecting this activity to the core of our Wattenberg Field. The Wattenberg horizontal program is delivering the highest returns in our U.S. onshore portfolio, with the rates of return exceeding 100% at today's prices, while also to continue to leverage the competitive advantages of our midstream assets which support the pace of our drilling activities and maximize the value of our sales volumes. We locked up about 62,000 barrels per day of firm fractionation capacity at Mont Belvieu back in 2002 and have acquired additional fractionation capacity. With these actions, plus our existing firm transportation and ongoing facilities expansions, we've created a significant advantage enabling us to move our products to sell at very competitive prices. As included in last night's news release, we also took steps to further protect our 2013 cash flows by trading out of our existing 3-way collars and into 900 million cubic feet per day of fixed rate swaps at a price of about $4 per MMBtu. Read the rest of this transcript for free on seekingalpha.com