But before we get started, I want to remind everyone that the earnings press release and the discussion this morning may contain forward-looking statements as defined by the Securities and Exchange Commission that include comments and assumptions concerning Crimson's strategic plans, expectations and objectives for future operations. Such statements are based on assumptions we believe to be appropriate under circumstances. However, those statements are just estimates or not guarantees of future performance or results and, therefore, should be considered in that context. Additional details regarding this disclosure may be found on the earnings press release itself which is located on our website at www.crimsonexploration.com under the Investor Relations tab.With that, I'll jump into the financial results. We had a net income for the quarter of $3.9 million compared to a net loss of $2.8 million in the prior year quarter. Special cash item impacting the quarter was a $4 million credit for a portion of our 2007 to 2011 severance taxes and then we filed for and received from the State of Texas for certain marketing cost reductions that we learned through a consultant that could be taken into account and pay them severance taxes for those periods as well as going forward. Excluding that credit and the impact of noncash, unrealized, mark-to-market hedging gains or losses and noncash impairment expense in the prior quarters, our net loss for the current quarter was about $100,000 compared to a net loss of $1.6 million for the 2011 quarter. And that also compares favorably to a consensus estimate -- estimated net loss of $900,000. On cash flow, adjusted EBITDAX, as we defined it in our release, was $25.5 million for the quarter, above both consensus estimate of $20.4 million and the prior year quarter of $19.4 million. Free cash flow, which is our adjusted EBITDAX less interest expense, was $19.3 million or $0.43 per basic share, which was also above consensus estimates at $0.31 per basic share and $0.29 per share for the prior year quarter. Both measures for 2012 were positively impacted by the severance tax refund I just mentioned.
On a production side, production for the quarter averaged 40.4 million a day of equivalents, which is at the upper end of an analyst estimates of 39.3 million, but below the 48.7 million for the prior year quarter which as we've discussed before is a result of the decline -- period-over-period is result of -- that decline was the result of our re-focus on oil and liquids-rich drilling projects as opposed to the historical high rate and gas wells that we've drilled in the past.Crude oil production did double quarter-over-quarter from 1,061 barrels of oil per day in the prior year quarter to 2,167 barrels of oil per day in the current quarter. Total crude and liquids production for the quarter increased to 46% of total production compared to 26% for the prior year quarter. So as you can see, we made significant progress in last year in transitioning from a natural gas way of production base to a more balanced production profile. A guidance for the third quarter as you saw is a range of 37 million to 40 million a day with an estimate of about half of that coming from gas and 35% to 40% of that coming from crude oil and 10% to 15% coming from natural gas liquids. We anticipate production in third quarter to remain in line with the second quarter, again as production from new completions we've recently announced is expected to ramp up during the middle and latter parts of that -- of this coming third quarter. On prices. Fuel prices for all commodities showed a decline in the quarter versus the prior year with a slight decrease in oil prices, a 26% decline in NGL prices and a 50% decline in natural gas prices. Our hedges mitigated those declines somewhat. However, our increase in oil and liquids production as a percentage of total production resulted in our weighted average equivalent price, after taking into account our hedge settlements, increasing to $8.35 per Mcfe in the current quarter compared to $6.69 per Mcfe in the prior year quarter. Read the rest of this transcript for free on seekingalpha.com