Good day, and thank you for standing by. Welcome to the Petrus Resources Fourth Quarter 2024 results conference call. At this time, all participants are in listening-only mode. After this speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star one one on your telephone. You will then hear an automated message advising you to hand this phrase. To withdraw your question, please press star one one again. Please advise that today's conference is being recorded. I would like to hand the conference over to your speaker today, Ken Gray. Please go ahead.
Good morning and welcome to Petrus Resources Q4 2024 and Year-End Earnings Call. My name is Ken Gray, CEO of Petrus, and I am joined here by our executive team of Mathew Wong, our CFO; Matt Skanderup, our COO; and Lindsay Hatcher, our VP, Commercial and Corporate Development. The story for Q4 and for 2024 in general was our ability to generate strong cash flow: CAD 12.5 million for the quarter and CAD 50.1 million for the year, and to hold production relatively flat, averaging 9,066 BOE per day in Q4, down only 4% from Q4 2023. We did this despite working through the lowest gas prices in 30 years. We also did it despite cutting capital over 60% from 2023 in response to these low gas prices.
A key to achieving these results was an improvement in capital efficiency, allowing us to generate more production and cash flow for each dollar of capital invested. This was primarily driven by advances in our completion design, which resulted in better productivity at a lower cost. We are also continuing to improve operating efficiencies. One achievement of note in that area has been the increase in NGL recoveries in Q4, where we generated a 25% improvement in NGL yields compared to Q4 2023. We released our 2025 capital budget and guidance late last month, and the year is off to a strong start. We have already drilled as many operated wells as we did all of last year, and a couple of them are already on production.
We've also completed the extension of our North Ferrier pipeline, which extends to our largely undeveloped lands to the north, and the remaining wells we've drilled will be completed and start flowing down that line in Q2. Looking forward, we are planning to continue drilling through breakup. Production should start to tick up in Q2, hopefully coinciding with continued strong liquids prices and improving natural gas prices. With that, I'll open the floor to questions.
Thank you. At this time, we will conduct a question-and-answer session. As a reminder to ask a question, you'll need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. I'm showing no questions at this time. I'll now turn it back to Ken Gray for closing remarks.
Okay, thanks. There is one thing I'd just like to add here since we don't have any questions, but I think it's been on a lot of investors' minds. We kind of find ourselves in the middle of significant political turmoil here. We've got a federal election going on, and of course, the threat of tariffs from the U.S. This can be somewhat unsettling and is never good for business. I'd like to emphasize that at Petrus, we produce commodities that are in high demand and will remain so for the foreseeable future. We produce these commodities at a very competitive cost and are able to generate strong cash flow even at relatively low prices. When a business has strong fundamentals, short-term disruptions have little effect on long-term performance. Petrus has proven its strength and demonstrated it is built for sustained success.
Despite the current turmoil, we are excited about the future and look forward to continuing finding, developing, and producing oil and gas in Alberta. Thanks for listening and for your continued interest and support for Petrus.
Thank you for participating in today's conference. To just conclude the program, you may now disconnect.