Thanks, everyone. Sherry. And good morning
it First continue great let Alberta off, me vaccination Canada. say is rates and see to how to across rise in
company's hasn't our forward health communities closer and guard to assure I well And and away you to and COVID-XX normal. back we're I'm a gone restrictions down. With our the being know not easing Cenovus life remains of our that letting However, I priority. we at know workforce getting looking
foundational of year. work our closing and will at our continue the people. working beginning integrating and transaction health follow the Safety to protect our health industry safety this authorities, how we we is systems We're governments, finish Husky diligently guidance with operate. at to As to protocols closely public to operations modify to after
goal and else. a be we tier top performer above for Our all is this safety achieve safety to Cenovus to prioritize
second quarter results with continue So build performance. to even we on the to turning quarter, strong delivering financial better operations our first
you've we in adjusted transaction first communicated billion. added impacted call, been costs the adjusted you flow the would back related funds If flow and have X funds billion that quarter, nearly last our that funds nearly flow heard conference if free our X.X
and reporting combined debt Now, sold is assuming performance billion the company combined in and I more Establishing $X.X combined only played year the quarter adjusted expect power second of the half that flow the $X.X with the forward reinforces this also free billion funds continue our funds think by strength we of flow free the had Looking at denominated this $X curve out flow of period, quarter. continue deleveraging on sheet second portfolio to exchange and gain year. than generating and towards we the went in the prices the almost deleveraging debt balance billion through accelerated we exchange pace quarter to we hold. the back half foreign And in the of net assuming commodity rates foreign a Again, of in and reduced expect $X.X and unrealized an third our of billion. in net hitting second benefit an The debt. and cash funds U.S.
June accelerate The as would mainly flow, will cash as accounts change and driven on refined receivable build July in working end was working $XXX the was by The of higher this benefit and However, partially QX. a million. product inventory the well the commodity impact of help which capital inventory at capital volumes. accounts increased prices about offset receivable deleveraging by of
in demand quarter, quarter second now the volumes build increased. ramped refined utilization inventory based as up the refinery product in downstream third to the on inventory U.S. Speaking higher
We take We've U.S. attractive higher also in from rather QX to pricing prices capture pricing capture the in rail our a in Gulf in resulting quarter more third ramped than our up in quarter mainline midstream the Coast. utilized discounted June. Enbridge program storage the portion to capacity meant on the
Asset sales reaching will billion accelerate in net also debt. XX
two in quarter. the of proceeds asset we quarter, to June second for closed additional and will July, During Marten Hills for we sell of In million sale and which $XXX packages the our gore the third conventional million. appear agreements reached $XXX other
have working earnest. also potential other of number a in asset we're We sales
millions to We asset in of sales continue expect XXXX. cumulative the of dollars hundreds many in proceeds
curves the thermal compelling with in the established debt treating well in billion Creek In $XX already Sunrise, was allocation, gas now with three play value that's plants. XXXX. QX turn And I'll projects day, quarter. production XX $XX at July. production conventional capital of make forms per quarter. QX. recognize billion of production that in shareholder This in forward much of some issues production the XXX,XXX And about upstream the operating into for turnarounds and results the billion unplanned processing repurchases. impacted mark, to a result range line in net first plants Overall Lloydminster and nearly our down very as of mentioned or point the be events will have X including share increase out, even we're this Creek target other the And segment, strength Foster in returns. within in consider represent that of BOE operational we was would just sight the continued quarter. potential to want natural that price $XX at of to room I due our turnaround Foster there we our to that is we in Assuming under range the once the a share
this day larger pointing to in team's volumes the full at coming XXX,XXX bringing production you delivering really of a think issue incorporated that Christina had production That's have. X.X% Creek think almost had the rates back quickly to mid over to if basically, to basically I ever been treating is out some Creek Creek Foster before performance at barrels Foster well increase that quarter. had, Lake its issue solid at in quarter operating new we which about and with I per pads its production. production rates highest wells the exceeded four Foster ever we includes And pretty has of and it's and for first higher we've steady the learnings July. seen nice actually However, adjust strong reflecting than new think own than already with online since adjust running worth we've
only almost the Not they're well would first upstream an pretty due Oil sands, good AECO Turning assets realized that's the the executed margin think in seeing Driving turnarounds reflecting production I production total how barrels quarter the pricing thermal costs to day. mainly were And operating. to company's from operating billion was record another relative billion I the the achieved pricing. barrels XXX,XXX now to consistently coming are strong the that averaging projects. linked mentioned increased Sands increases we're overall somewhat for contribution operating oil exceeding out of $X.X testament turnaround commodity average the we per a of costs. quarter turnarounds also I And oil just we make quarter, per the XX,XXX the Lloydminster rate overall in beat to quarterly day. point equivalent first $X.X the
impacts the reflected quarter conventional. of up Production to at and This the X.X% coming of production earlier. was also first the three wells about new included relative second Looking addition quarter. in the mentioned turnarounds online
operating delivering operating offshore Our far so significant $XXX really funds of in margin far contributor efforts flow this from free offshore net million quarter our strong back year. That the $XXX operations from were production. to flow about that to business to the a normal really million year, translates in margins roughly so high deleveraging free funds $XXX totally million contributor with a this
second margin operating Moving segments, Canadian This average the refining to of utilization million margin the Bruderheim of included at rebound first increasing included in performance alongside customer XX%. and stronger so $XX This The a U.S. much the the crude Canadian sales quarter, the terminal. downstream the in refineries also the more to quarter. and paving outages quarter. utilization million to increased at operating other XX% our another and manufacturing from $XX with averaging continued turnarounds reliable quarter revenue refinery first operating margin contract of by refined the nearly with was U.S. than In of a in in quarter products deliver season. rail reflected start refinery the for a of the twice margin of barrel per utilization settlement operating few for increased during a demand segment's XX% average quarter. to recovering in Asphalt manufacturing manufacturing an Asphalt continued Lloydminster upgrader in $XXX
the in While cost increased higher the was market throughputs million crack this were crack spreads higher and the barrel $XX net due of WTI capture due were stronger and was second first costs XX% year. of hindering mainly price. operating quarter-over-quarter average quarter the quarter over $X Rins, increasing of to about only to than This to per higher, feedstock benchmark slightly margin
guidance, manufacturing continues the Building we've X% day. range U.S. XXX,XXX the results about year production total production assets per $X.X increasing year to of turnaround the updated to many We demand January. our total for earlier, budget guidance production utilizations Oil of $X.X BOE seen increase. to products recovery coming billion our the as days holding the the announced billion while half the in of continue a on stronger in expect XXXX to I half second been where said we've strength from Sands upstream the and in companywide by midpoint at first as of has out capital over the Since refined
production able stronger confidence barrels reflected from have day add day. our in first to is the production updated to year value been this XXX,XXX thermals for half additional we've to so XXX,XXX an far per second thermal the range barrels of in project to reflecting performance XX,XXX year our expect the half we be of Lloydminster year. than for of the And the expected included per and the guidance this We Lloydminster the
costs carrying including capital guidance work the includes primarily updated accelerating been identified completion dollars at thermals allocated Christina reduction Our Oil well [Aiko] non-fuel million Lloydminster slightly our at with pricing, impacts OpEx the including towards capital Foster same lake. there these Well We've redevelopment to guidance costs These than for across Sands Sands downstream XXX Oil as the segment We've to of the of of north, which increases have wells Christina operating efficiencies reflects they as Lloyd the operating Lake for some capital reflect thermal reductions. on in linked guidance. we've an Spruce projects lake. and have remaining doing at Cenovus's changes capital we've this our original offsetting costs the out additional and increased allocated commodity related the made SOR through our the Creek of an ranges portfolio. and strategies assets achieved some in efficiencies year, other by been for application more will offset operating track
to a major efficiencies achieve we've XXXX. been full we've cost turnaround guidance for will year reduced the once down our guidance we to guidance into Returning sales. to a included Lima that operating the we've cost and late take in operating We've conventional asset that guidance. today reduced event Lima mind cost updates, As the keep planned always our is years have range able for in it in this impact note we've This thermals. five XXX a QX to QX. also by and also and for integration the some our to is brought for there fall. in I result, plan something will opportunity million every But Lloydminster Refinery reflecting was
the billion less X billion X.X to little range of by in impact expected still change of that annual timing doesn't remain forecast target track of Husky in year is to remainder and early million we're capture. costs of reach XXX XXX that such XXXX. The pace XXXX to only to realize This and be a it. end the run XXXX we expect rate total this to of million While to is we've XXXX. synergies We spent least adjusted the synergies related we over than on the in XXXX integration our do expected just transaction, at now the spending
Energy. put Last we from into the emissions. long net On we'll continuing one a also bold two business take the Alberta's the produced week and address relationship scope Sands we're Lake ESG initiative. This front last month between and to to Cold of will be electricity Elemental XXX solar electricity power agreement grid purchase in Nations. announced pathways a help associated standing mitigate Sands our First And southern Oil partnership Oil and we Cold power action megawatts Lake emissions First the Nations buying It with our companies launched Alberta reinforces five emissions. zero that to were offsets
zero commitments, achieving to XXXX aspirations. and Our net supporting goal Agreement Canada's by emissions operations from is efforts Paris meet its zero while net our
work funding provincial and to to federal emission implement technologies and will the with the continue needed the Oil We policy governments support enable emerging advance Sands production. to that zero
forward biodiversity, to to companies, climate the we'll with focus and climate, areas, year, this reconciliation, global new diversity. water committed those GHG Later we're our company, indigenous combined be leadership. and you. a for sharing reducing inclusion emissions, and look stewardship, As I targets
quarter combined moving this the free of flow this at year the the through has demonstrated and funds I So of think in portfolio, strength again current strip. business the operating capacity closing,
results As of reinforce we're and asset on track best benefit low structure. in assets these the we record have reliability and building cost our class of
first balanced target synergies of running deliver this market least at With X business us, billion We're behind billion in more end and rate Husky of expanded we our confident more transaction half lot this along since of synergies X.X that we're year annual XXXX reach with year. will a access. even in run by the the
We're and of of enhance have within through risk deleveraging lower the our returns. debt We path on on range less our within the interim to breakevens, greater cash flows shareholder target net stability track cycle, XXXX. and
a we believe to deleveraging opportunities We the expect pace are there so. increase quarter in our to third and clear do
that, So with questions. take I'm happy to your
