The net quantities of oil, natural gas and natural gas liquids produced and sold by us for the years ended December 31, 2019 and 2018, the average sales price per unit sold (excluding hedges) and the average production cost per unit are presented below: * Barrels of oil equivalent have been calculated on the basis of six thousand cubic feet (Mcf) of natural gas equal to one barrel of oil equivalent (BOE). ** Amounts exclude the impact of cash paid/received on settled derivative contracts as we did not elect to apply hedge accounting. Our derivatives for 2019 and 2018 have been marked-to-market in our Consolidated Statements of Operations and both the realized and unrealized amounts are reported as other income/expense. The following tables summarize the net quantities of oil, natural gas and natural gas liquids produced and sold by us, the average sales price per unit sold (excluding hedges) and the average production cost per unit for each of our core areas for the years ended December 31, 2019 and 2018. * Barrels of oil equivalent have been calculated on the basis of six thousand cubic feet (Mcf) of natural gas equal to one barrel of oil equivalent (BOE). ** Amounts exclude the impact of cash paid/received on settled derivative contracts as we did not elect to apply hedge accounting. 44 Midland Basin Net Oil, Natural Gas and Natural Gas Liquids Production, Average Price and Average Production Cost Years Ended December 31, 2019 2018 Sales Volumes: Oil (MBbl) 3,086 2,370 Natural gas (MMcf) 4,760 3,610 Natural gas liquids (MBbl) 1,022 655 Barrels of oil equivalent (MBOE)* 4,902 3,627 Average daily production (BOE per day) 13,429 9,937 Average prices realized:** Oil (per Bbl) $ 55.71 $ 59.40 Natural gas (per Mcf) $ 0.82 $ 2.05 Natural gas liquids (per Bbl) $ 15.09 $ 26.23 Barrels of oil equivalent (per BOE) $ 39.02 $ 45.59 Production cost per BOE $ 5.85 $ 5.66 Years Ended December 31, 2019 2018 Sales Volumes: Oil (MBbl) 2,599 1,835 Natural gas (MMcf) 4,558 3,080 Natural gas liquids (MBbl) 965 571 Barrels of oil equivalent (MBOE)* 4,324 2,920 Average daily production (BOE per day) 11,846 7,999 Average prices realized:** Oil (per Bbl) $ 55.05 $ 56.96 Natural gas (per Mcf) $ 0.75 $ 1.89 Natural gas liquids (per Bbl) $ 15.07 $ 26.38 Barrels of oil equivalent (per BOE) $ 37.25 $ 42.95 Production cost per BOE $ 5.22 $ 4.57