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Let's jump right into the main points of discussion this morning and begin with midstream operations. Clearly, this is nothing new to the DJ Basin. The gas processing constraints continue to be the lever that affects our production and ultimately impacts our well performance. This systemwide producer allocation that was put in place to stabilize line pressures remains in effect, capping our production.

During the second quarter, we also faced several significant planned and unplanned outages that not only curtailed production but also caused several days of maximum lime pressures that ultimately restricted our ability to produce our wells on a consistent basis. Furthermore, these outages result in additional costs required to bring impacted wells back online, in addition to the [Inaudible] affected our production stream composition. Looking toward a brighter day, DCP Midstream O'Connor 2 plant commissioning is under way, and we expect throughput to ramp up in the coming weeks. The plant began flowing gas in late June, but during commissioning, DCP made the decision to take plant offline for safety purposes in order to complete additional work prior to start-up.

As we have mentioned before, our production is currently more a function of midstream capacity limitations rather than capital expenditures. As additional gas processing capacity becomes available, we expect to bring currently shut-in wells back online. As you are no doubt aware, DCP very recently announced an agreement with Western Midstream Partners, LP, that will provide DCP with up to 225 million cubic feet per day of incremental processing capacity at Western's DJ Basin gas processing complex, which includes the Latham 2 plant that is presently under construction. This capacity should come online in mid-2020, providing some relief to the gas processing constraints.

The second significant topic involves our capital expenditures. As previously planned, our capital expenditures slowed in the second quarter, driven by the release of our completion crew in the middle of the quarter. Drilling and completion capex was $91 million in the second quarter, compared to $110 million in the previous quarter, for a total of $201 million for the first half of 2019. During the quarter, our team drilled 31 gross wells, completed 10 gross wells, and turned to sales 25 gross wells or roughly a third less wells in the first quarter.

We intend to commence completion operations together in mid-third quarter, when we bring an electric hydraulic fraction fleet. As SRC continue to look for ways to reduce emissions, we will be evaluating the use of electric stimulation pumps when we resume completions this month. This is somewhat of a proof-of-concept decision that we need in order to evaluate the potential use in electric fleet in 2020. Furthermore, we will be releasing one of our rigs -- drilling rigs in the third quarter, when it finishes drilling activities on its current pad.

We anticipate utilizing one drilling rig for the balance of the year and into 2020. Some of the tailwinds led to stronger-than-expected production volumes in the first quarter, anticipated in the second quarter as flush production from new operated and nonoperated wells begin to decline. And as previously mentioned, the number of wells turned to production dropped significantly in the quarter. This led to a 6% decrease in production on a BOE basis quarter over quarter.

However, note that year-over-year production grew 28%. As reflected in our product mix, the operating conditions have had a much larger impact on our oil production as the product mix is more challenging to maintain in this inconsistent environment. Shifting to operating costs, during the quarter, our LOE of $2.39 per BOE was below our guided range for the year of $2.50 to $2.75, and brings our year-to-date LOE per BOE to the middle of that range. We continue to focus on efficiency and cost controls at SRC given its part of our culture.

SRC has maintained strong operating margins every quarter for the last two years. It's important to note that SRC's cash flow from operations in the second quarter and year to date, combined with the portion of cash on the balance sheet, have fully funded operating activities and provided the capacity to further strengthen SRC's balance sheet by reducing outstanding balances on its revolving line of credit by $30 million. Now that we are past the first few months of the reconstituted COGCC, it is clear that the energy industry has not been shut out of Colorado. Permits continue to be granted, albeit, at a slightly slower pace.

However, we believe that it is more of a function of the COGCC's understanding and implementation of the new rules. We are encouraged by the dialogue that the industry has had with Jeff Robbins, director of COGCC, and believe that permits should continue to be processed in a rational manner going forward. This week, SRC and a few of our peers will lead an educational field tour for members of the COGCC. This is one of the many efforts by the energy industry in Colorado to ensure that the regulatory agency is well informed about our current record in terms of health, safety and the environment and to point out the remarkable improvements that our industry has made in Colorado over time.

SRC's Mountain View CDP continues to move forward along with the time line that we have previously discussed, with the expectation that we will have a decision from the COGCC sometime in the fourth quarter of this year. In the interim, SRC has been granted a stay across approximately 24,000 acres of our proposed CDP footprint, which eliminates the risk of other operators being issued permits to drill wells in that area prior to a final decision this fall. To wrap this up this morning, we have just concluded a bumpy quarter and we expect the third quarter to have similar noise. However, as we look forward to the end of the year, we should start to see lower line pressures and some additional processing capacity, which should lead to more stable production environment.

We have adjusted our operations to more clearly align with gas processing capacity, and we anticipate that operating capex over the next two quarters should look similar to what we saw in Q2. The company has delivered consecutive quarters of free cash flow, a portion of which was used to pay down debt in the second quarter as we continue to maintain an industry-leading debt metrics in regards to our balance sheet. With that, we'll turn it back to the operator, and we'll open the line for Q&A.

Questions & Answers:

Operator

Thank you. [Operator instructions] Our first question is from Welles Fitzpatrick with SunTrust. Please proceed with your question.

Welles Fitzpatrick -- SunTrust Robinson Humphrey -- Analyst

Hey. Good morning.

Lynn Peterson -- Chief Executive Officer

Good morning, Welles.

Welles Fitzpatrick -- SunTrust Robinson Humphrey -- Analyst

I know you guys have been getting ahead of this. The proposed AQCC emissions regulations. I mean, they seem to be somewhat innocuous versus what you guys do already. Is that a fair interpretation?

Lynn Peterson -- Chief Executive Officer

I'm going to let Mike Eberhard comment on this. He's been involved in it regularly.

Mike Eberhard -- Chief Operations Officer

Yes. I think as part of the education tour we have coming up this Friday, that Lynn mentioned earlier, is to show what we are doing out there and help inform the COGCC, the new commissioners. We have -- as we know, Colorado has been ahead of the game in this for a lot of years. And I think as they start digging into it, they're going to see the depth with which the industry has gone over the last -- just last two years specifically.

Welles Fitzpatrick -- SunTrust Robinson Humphrey -- Analyst

OK. Perfect. And then on -- obviously, good to hear O'Connor is ramping. Is there any messaging from DCP on the timing of the O'Connor bypass or on Bighorn?

Lynn Peterson -- Chief Executive Officer

I think we're going to let DCP do their announcement next week. They're pretty excited about their recent announcement for the Western gas side. So I'm going to leave that to them, Welles, if that's OK.

Welles Fitzpatrick -- SunTrust Robinson Humphrey -- Analyst

Yes, absolutely. Fair enough. Next question.

Lynn Peterson -- Chief Executive Officer -- Analyst

You bet. Thank you.

Operator

Our next question is from Irene Haas with Imperial Capital. Please proceed with your question.

Unknown speaker

Good morning. This is Claire for Irene. So the first question is, can you help us understand that with one rig for the rest of 2019 and 2020, how should we think about your spending for 2020 and also the production's cadence?

Lynn Peterson -- Chief Executive Officer

I think we're in pretty good shape. Again, if we run one rig, we're going to drill roughly 60 wells during the course of the full year. We're going to exit the year with, I think, drilled uncompleted wells somewhere in the 40 to 50 range. I think if we're successful with the electric fleet that we're evaluating right now, we think we should be able to run that pretty much the full year.

I think we will probably be able to deliver pretty robust production growth on a year-over-year basis, certainly. So -- and as far as capex, I think you can look forward to run kind of where we're probably in the sub-$400 million range, kind of where at -- been at this year.

Unknown speaker

OK. That's really helpful. And the second question is, can you help us quantify the improvement from O'Connor 2, when it's in full operation?

Lynn Peterson -- Chief Executive Officer

Again, I think we're trying to caution everybody a little bit. There's a lot of mix going in here, not only gas processing but NGL's residue. There's a lot of pipes still being built. Some of this stuff has been delayed, as you know, waiting for FERC approval.

So I think we're going to see somewhat of a slower ramp as we go into August and into September. We hope by fourth quarter, we'll see some upside to this.

Unknown speaker

OK. Thank you.

Operator

Our next question is from Mike Scialla with Stifel. Please proceed with your question.

Unknown speaker

Good morning. This is actually Guillermo for Mike. I was wondering if the current infrastructure constraints, could we view as the catalyst for consolidation in the basin.

Lynn Peterson -- Chief Executive Officer

We get asked about consolidation all the time. Things take time. There are cultural differences between companies. So I think it's all a matter of all of our industry working through this and making an adjustment.

I think we'll all get there.

Unknown speaker

OK. And then could you provide some comment in perhaps if any conversations have been started with either Oxy or Anadarko for Anadarko's acreage?

Lynn Peterson -- Chief Executive Officer

No, we don't comment anything like that.

Unknown speaker

Thank you.

Operator

Our next question is from Jeffrey Campbell with Tuohy Brothers. Please proceed.

Jeffrey Campbell -- Tuohy Brothers -- Analyst

Good morning. Lynn, you said you released your completion crew in May? And then you've talked about sticking with one rig in 2020. I was just wondering how you're going to handle the completions in 2020. Will you take a crew back on or will it be intermittent or what are you going to do?

Lynn Peterson -- Chief Executive Officer

Well, again, as we've mentioned, we're bringing this electric fleet in kind of Q3 here. We'll get that started up, see how it runs. We kind of anticipate carrying through. And if it's working the way we want it to be, we're going to carry it through 2020.

And I think with the drilled uncompleted wells, we'll have an inventory plus one active rig still running. We'll probably be able to be pretty busy for the year.

Jeffrey Campbell -- Tuohy Brothers -- Analyst

OK. And I'd like to follow up. I'm just asking a little bit about this electric fleet and how you're seeing it unfolding. We have heard about some delays with the Permian operator that had tested the electric fleet.

So I was just wondering how is it doing. And also, do you think that if it's -- assuming it's successful, do you think this is going to prove to be an aid to well permitting in the future?

Lynn Peterson -- Chief Executive Officer

Let me turn this over to Mike. He's always been very involved in bringing this online for us.

Mike Eberhard -- Chief Operations Officer

Yes, the fleet we're bringing in has been operational. We're moving it from -- they're coming from another operator, where they have been pumping. So we're confident in its ability to perform. What we're evaluating is delivery of CNG and such to power the fleet.

So we're comfortable that it's going to operate the way we want it to. What was the second part of the question?

Lynn Peterson -- Chief Executive Officer

Yes. Jeff. I think as far as does this help permitting? I think this has continued to help the focus in Colorado. It's all about reducing the air emissions.

It's the one thing we're excited about on this. We want to be on the leading edge of that. And I think we do all those things, it will help our permitting, and that's just my personal opinion. But I think the saying in COGCC has taken -- the operators that are filling their reports properly and doing this thing and trying to do everything as close to accurate as they can.

They're working with us.

Jeffrey Campbell -- Tuohy Brothers -- Analyst

Well, I mean, if nothing else, you can certainly say if this thing operates well, there's certainly no downside in this and there might be some upside. So it would be great.

Lynn Peterson -- Chief Executive Officer

That's exactly right.

Jeffrey Campbell -- Tuohy Brothers -- Analyst

Thanks for taking my questions.

Lynn Peterson -- Chief Executive Officer

Thank you.

Operator

Our next question is from Leo Mariani with KeyBanc Capital Markets. Please proceed.

Leo Marian -- KeyBanc Capital Markets -- Analyst

Just a question surrounding kind of keeping the one rig in place in 2020. I think this is maybe a bit different than I think you guys had kind of talked about in the past. I think you guys had previously contemplated maybe spending a little bit more money in '20 versus '19. It sounds like it's not the case anymore.

Just wanted to get a sense, is this just a different philosophy from you folks due to concerns or there could be some further midstream constraints next year or is it maybe just more related to the fact that the market is just clearly not rewarding DJ Basin stocks for any type of growth and desire to maybe just produce more free cash flow next year?

Lynn Peterson -- Chief Executive Officer

Well, let me say, I don't think DJ Basin operators are any different than any other operators in the U.S. I mean, investors are asking for a certain thing. We're trying to deliver that. I don't think we've changed our philosophy much.

We've laid out our plans. We haven't talked about 2020 much in the past. And -- but then we're able to deliver the free cash flow and have the inventory outlook that we do, I think we're in a pretty good spot. So I'm pretty pleased.

Leo Marian -- KeyBanc Capital Markets -- Analyst

OK. And I guess, just wanted to see if you guys had any additional color around oil cut. I certainly noticed that it's been kind of moving around quite a bit. It was, I think, closer to 50% in the first quarter and then kind of 44% this past quarter.

Can you kind of help us out if there's any new expectations for how that might progress later this year? And do you see that maybe starting to go back up as you get into '20? What can you kind of tell us on directionality there?

Lynn Peterson -- Chief Executive Officer

Again, and I'll let Jimmy jump in here. But we turn fewer wells to production in the quarter. When you start to do that, you're going to lose a bit of oil production that you see in the flush months. And then as we leave wells on production, historically, they're going to be gassier.

That's the nature of every well out here. And I think this is pretty much laid out where we were headed from the beginning of the year, I think, with our guidance. But I think all the midstream constraints, up and down has really impacted some of this. As you guys know, when you bring a well on, they probably build up.

You're going to get more gas at the early stages of bringing them back on production, and the well takes longer to bring back. So we've seen the impacts of all this that adjusted to 20%. Jimmy, Mike, Jo Ann, you guys want to jump in?

Unknown speaker

Maybe just to further illustrate that. Leo, remember, we were running two completion rigs right up until the end of the year last year, so we came in to this year with -- there's quite a few pads that were turned on to production, and we benefited from that early flush production of oil production. And then obviously, those declined. And I guess -- as Lynn mentioned, with the slower cadence in the second quarter, along with the up and down nature of the environment we're working with, we're just not able to maintain as we've gone forward.

And I think it was reflected in the original guidance we gave. We're pretty clear, it was -- the oil cut was going to decline as we go through the year just as we slow down our operations, the number of wells coming on quarter by quarter through the year.

Lynn Peterson -- Chief Executive Officer

Yes, if I may add. This is not just us. When we look at our non-operated properties, we had some flush production in the first quarter. We had a significant interest in, and these have all dropped off.

I mean, it's the industry right now.

Leo Marian -- KeyBanc Capital Markets -- Analyst

OK. No, that's very helpful. And I guess, just maybe lastly on the midstream. I just wanted to kind of clarify how you guys are thinking about that.

I think you basically in your prepared comments said that it sounds like you think that the O'Connor plant is going to take maybe a little bit longer to kind of ramp up. But as we get into 4Q, you guys expect to be kind of a lot more unconstrained in 4Q or do you think that maybe there's going to be some potential kind of lingering issues there that may even last into kind of the first part of '20? Just trying to get a sense on high level how you're thinking about constraints.

Lynn Peterson -- Chief Executive Officer

From a historical basis, I'd tell you, it's going to go slower, and we still think we're going to be under some constraints. It does just take long to get these things up and running. There's so many other pipes involved here. Jim and Jo Ann, you guys want to add to that at all?

Jim Henderson -- Executive Vice President Finance And CFO

Well, yes. I think that everybody is aware of the NGL takeaway capacity that's necessary as you bring on these processing facilities, and we're -- or DCP is working closely with the NGL takeaway, and those are coming to fruition with the expansion of Front Range mainly. They're kind of coming on at the same time as O'Connor ramps up. And then with the Cheyenne Connector for residue takeaway is right on the heels of that, as you know, it's waiting on FERC approval at this time, but that's supposed to be received imminently, and that will alleviate that particular bottleneck.

So all this kind of happens as we go through the remainder of the year. So it all has to come together. And it's -- as Lynn said, being conservative about how we view the ramp-up as we go through the midyear, but certainly we expect fourth quarter to be better than third quarter and first quarter next year to be even better than fourth quarter.

Leo Marian -- KeyBanc Capital Markets -- Analyst

OK. Thank you very much.

Operator

Our next question is from Brian Downey with Citigroup. Please proceed.

Brian Downey -- Citi -- Analyst

You had a very nice quarter on the LOE front, controlling what you can. Anything in particular going on there? And how should we think about unit costs trending throughout the remainder of the year? I understand, obviously, the midstream creates potentially an effect on the denominator there on the volume, but curious on the LOE front.

Lynn Peterson -- Chief Executive Officer

Yes. I think, Brian, the biggest part is probably getting out of the winter months, where we had some additional costs that we incurred in the first quarter that we've talked about. And I think as we go through the rest of the year, again, we bring some of these older wells back on production hopefully. It's going to take a little more cost to get there.

So I think that's what we've got to be aware of as well but I think we're tracking pretty much where we think we'll be at the end of the year.

Brian Downey -- Citi -- Analyst

OK. Great. And then maybe a follow-up on the electric frac fleet. I'm curious what you see there, the opportunity set on both the cost and the efficiencies front and how you're thinking about that heading into it.

And then longer term, do you expect to continue using CNG or do you see field gas as an option there longer term?

Lynn Peterson -- Chief Executive Officer

Mike, go ahead.

Mike Eberhard -- Chief Operations Officer

Yes. I think to your -- the field gas, obviously, that would be the direction we'd like to go for a couple of reasons. It takes some of the pressure off processing, if we can use it. So that's the endgame.

There's just -- it's a very rich gas in our basin. So it was a matter of working with the turbines and such. But as far as efficiencies, really the efficiencies, the pump seemed to last a little longer, so it's pretty subtle in efficiency. But it is the emissions and using an alternate fuel, diesel, the CNG on a diesel equivalent basis is less expensive.

So there is little savings in that regard. But that's somewhat offset by the cost of the electric fleet. So hopefully, we can maintain our cost, have a little more consistency in our fuel cost and, again, to get to the point where we can use field gas where we have access to field gas and take some of that pressure off the system.

Lynn Peterson -- Chief Executive Officer

I think near term, we're looking at this pretty much flat from a cost perspective. So --

Brian Downey -- Citi -- Analyst

So flat, meaning the -- effectively, the fuel cost savings are offset by the increased electric fleet cost there?

Lynn Peterson -- Chief Executive Officer

Yes, exactly.

Brian Downey -- Citi -- Analyst

OK. Got it. All right. Appreciate the color there.

Thanks.

Operator

Our next question is from Phillip Jungwirth with BMO Capital Markets. Please proceed.

Unknown speaker

This is Jack on for Phil. I was just curious how you guys will prioritize turning back on the shut-in production -- I think you mentioned it was 25,000 barrels a day now of BOEs -- versus turning in new wells as you are granted additional capacity.

Lynn Peterson -- Chief Executive Officer

I think we kind of walked through this hand in hand. I mean, I don't think we have a priority. When we bring in new wells on, we want to be able to keep them on. I think that's the main thing.

We don't want to bring a new well on and have shut it in. So Mike, do you want to?

Mike Eberhard -- Chief Operations Officer

Yes. I mean, the field team does a great job of working through this. We look at the wells. Obviously, oil cut is one of the things that we keep an eye on as we are able to bring wells back on and gas cut.

So bringing new wells on as we go into the quarter, fourth quarter, and next year with the frac crew back up and running, the stimulation crew back up and running. It's going to give us some opportunity, and then as we get a chance to backfill with existing wells, we'll do that.

Lynn Peterson -- Chief Executive Officer

Yes, I think Mike brings a great point up here. Our team up in Greeley has done a phenomenal job working through these higher line pressures and bring wells down, bringing them back on, and it's not as easy as flipping a switch. So I want to commend them for the work they're doing.

Unknown speaker

Understood. Thank you. And one follow-up. Curious if you're able to quantify the impact of well productivity that you mentioned as a result of the midstream constraints. It sounds like there's no impact of new wells on that.

It's just -- is that just from having to shut them in and bring them back on or is there -- are you able to quantify the ultimate impact on the well from those activities?

Lynn Peterson -- Chief Executive Officer

I think it's pretty challenging right now. I think our reservoir engineers would tell you that they can't remember the day they brought a well on and keep it on production to really know what it's doing. So I'm not dodging the question. I just -- it's a challenge right now.

And I think the 25,000 BOE that we put in the queue was based upon the production at the time the well was shut in. So how these wells come back on, I think we're still a little bit in the dark in that regard. Some seem to come out better, some come out worse. So I think as we get down this road, we'll be able to identify some of those things.

Unknown speaker

All right. Appreciate the time.

Lynn Peterson -- Chief Executive Officer

You bet. Thank you.

Operator

Our next question is from Joe Allman with Robert W Baird. Please proceed.

Joe Allman -- Robert W. Baird -- Analyst

Thank you. Good morning. My question is about interlateral spacing. So where are you in terms of interlateral spacing? And do you think you have optimized spacing?

Lynn Peterson -- Chief Executive Officer

Mike, I might ask you to take a shot at that.

Mike Eberhard -- Chief Operations Officer

Thanks, Joe. I think we've done a lot of evaluation on it. And as we go through the different areas of the field, we have different spacing. We've looked at the reservoir groups, looked at a lot of offset operators and such.

To say we're fully optimized, we continue to evaluate. As Lynn mentioned, it's been very difficult to evaluate well performance over the last one and a half years to two years. But taking everything into account, we feel pretty good with where we're at obviously. And that's kind of our go-forward development plan, but we'll continue to evaluate as we go.

Joe Allman -- Robert W. Baird -- Analyst

And generally, what is the inter-lateral spacing? I know it varies across the field, but generally, where are you?

Lynn Peterson -- Chief Executive Officer

We're anywhere from 10 to 14 wellbores per DSU, split between the ABC and Codell.

Joe Allman -- Robert W. Baird -- Analyst

OK. OK, that's helpful. And then back to the infrastructure for a second. Besides the O'Connor 2 plant, have there been any other infrastructure delays or issues.

Like for example, with Latham 1, is Latham 1 fully operational at this point? And can you just talk about any other issues you might have besides O'Connor 2.

Lynn Peterson -- Chief Executive Officer

Yes. I don't think we really want to get into Anadarko's side of the operation here. I think, generally, everything in the basin has been a little bit slower than we all hope for or expect but it's progress.

Joe Allman -- Robert W. Baird -- Analyst

OK. Very helpful. Thank you.

Operator

We have reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing remarks.

Lynn Peterson -- Chief Executive Officer

OK. Thank you again for joining us this morning. I'm proud of our team, the flexibility that they have shown. It speaks volumes to the quality of our assets and the quality of our people when you recognize what this team has done in a short period of time to shift to a lower-growth free cash flow generating model.

We'll be attending some conferences over the coming quarter, and we look forward to seeing many of you on the road. If you've got any questions, please feel free to reach out to John Richardson. And again, thank you, and we look forward to talking to you next quarter.

Operator

[Operator signoff]

Duration: 32 minutes

Call participants:

John Richardson -- Investor Relations Manager

Lynn Peterson -- Chief Executive Officer

Welles Fitzpatrick -- SunTrust Robinson Humphrey -- Analyst

Mike Eberhard -- Chief Operations Officer

Unknown speaker

Jeffrey Campbell -- Tuohy Brothers -- Analyst

Leo Marian -- KeyBanc Capital Markets -- Analyst

Jim Henderson -- Executive Vice President Finance And CFO

Brian Downey -- Citi -- Analyst

Joe Allman -- Robert W. Baird -- Analyst

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