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We generated $25 million of free cash flow and adjusted EBITDA of $182 million.
We were able to identify and capture two significant acquisitions that fit as perfectly, adding more than 40,000 acres in Howard and Western Glasscock counties.
These deals initially added about 250 locations, but importantly, recent drilling success has added an additional 125 locations across areas where we ascribe no value at the time of the acquisition.
Second, we grew improved oil reserves by nearly 80%, and oil now makes up nearly 40% of our total reserves.
The benefits of increased oil reserves paired with the sale of lower margin gas-weighted assets is apparent in our margins and a 260% increase in the SEC PV-10 value.
Added WTI price of $75 more reflective of the current environment, we estimate our reserve value would increase by almost $1 billion from the SEC PV-10 to approximately $4.6 billion.
We issued $400 million of senior notes at an attractive rate and raised $73 million with the issuance of common stock through our ATM program.
Our investments have been disciplined, allowing us to reduce our 4Q annualized net debt to adjusted EBITDA ratio to 1.9 times at year-end 2021, compared to a 2.4 times a year ago.
Additionally, we included EEO-1 data in our 2021 ESG report providing clarity into the diversity of our workforce.
We expect to generate about $300 million in free cash flow in 2022 of the current commodity prices.
We understand the importance of leverage reduction, $300 million of free cash flow is equivalent to about $17 per share.
We expect our leverage ratio will be 1.5 times by the third quarter, and we have line of sight to 1 times by midyear 2023.
In Western Glasscock County, we completed the 10 well books package at the end of the fourth quarter.
Results of the 8 wells in the lower Sprayberry and Wolfcamp A and B formations are benefiting from our optimized completion design, and are outperforming the previous package we completed in Western Glasscock County by approximately 38%.
These recent acquisitions in Howard and Western Glasscock counties, and our subsequent appraisal activities have extended our all weighted inventory runway to approximately 8 years at current activity levels with a breakeven oil prices of $55 or below.
Returns and efficiencies benefit from the fact that our acreages contiguous, and in many areas we can drill extended laterals and we plan to drill 18 15,000-foot lateral wells in 2022.
To optimize our capital efficiency for the year and synchronize our drilling and completion crews, we are currently operating 3 drilling rigs and 2 completions crews, and planned to release 1 rig and 1 crew by the end of the first quarter.
After that, we will maintain 2 rigs and 1 crew through the end of 2022.
From fourth quarter actuals, we have factored in an approximately 15% inflation into our 2022 capital budget, and had locked in much of our pricing for services through the first half of the year, including frac services, sand and casing cost.
For 2022, we expect to generate about $300 million of free cash flow at current commodity prices, and this cash flow will be directed toward leverage reduction.
Turning to our capital budget, for 2022 investment program is approximately $520 million.
Our budget also includes ESG focused investments of about $10 million to work toward the company's achievement of our announced 2025 emissions targets.
This will generate full year oil production growth of 24% to 34%.
Our free cash flow and leverage ratio projections are supported by our current hedge positions, covering about 75% of our projected oil production in 2022.
With 8 years of high-margin oil weighted inventory, we are now in a position for sustainable long-term free cash flow generation.
This means we believe that we can meet our leverage target of 1.0 times by midyear 2023 and begin to return capital to shareholders in 2023.

Summary:
To optimize our capital efficiency for the year and synchronize our drilling and completion crews, we are currently operating 3 drilling rigs and 2 completions crews, and planned to release 1 rig and 1 crew by the end of the first quarter.