This is evidenced by several noteworthy accomplishments, so including: we completed another batch of excellent wells in Delaware Basin that drove volumes 5% above our guidance.
We maintained our capital allocation in a very disciplined way by limiting our reinvestment rates to only 30% of our cash flow.
We're increasing our fixed and variable dividend payout by 71%.
We're also improving our financial strength by reducing net debt 16% in the quarter.
Although we're now still working to finalize the details of our 2022 plan, I want to emphasize that our strategic framework remains unchanged, and we will continue to prioritize free cash flow generation over the pursuit of volume growth.
With this disciplined approach and to sustain our production profile in 2022, we are directionally planning on an upstream capital program in the range of $1.9 billion to $2.2 billion.
Importantly, with the operating efficiency gains and improved economies of scale, we can fund this program at a WTI breakeven price of around $30.
At today's prices, with the full benefit of the merger synergies and an improved hedge book, we're positioned for cash flow growth of more than 40% compared to 2021.
And as you can see on the graph, this strong outlook translates into a free cash flow yield of 18% at an $80 WTI price.
As you can see, Devon's implied dividend is not only more than double that of the energy sector, but this yield is vastly superior to us in every sector in the S&P 500 index.
In fact, at today's pricing, Devon's yield is more than seven times higher than the average company that is represented in the S&P 500 Index.
With our improving free cash flow outlook and strong financial position, I'm excited to announce the next step in our cash return strategy with the authorization of a $1 billion share repurchase program.
This program is an equivalent to approximately 4% of Devon's current market capitalization and is authorized through year-end 2022.
Beginning on the far left chart of our business is positioned to generate cash flow growth of more than 20 -- 40% in 2022, which is vastly superior to most other opportunities in the market.
As you can see in the middle chart, this strong growth translates into an 18% free cash flow yield that will be deployed to dividends, buybacks, and the continued improvement of our balance sheet.
Devon's operational performance in the quarter is once again driven by our world-class Delaware Basin assets, where roughly 80% of our capital was deployed.
With this capital investment, we continue to maintain steady activity levels by running 13 operated rigs and four frac crews, bringing on 52 wells during the quarter.
This project also delivered exceptionally high rates with our best well delivering an initial 30-day production rates of 7,300 BOE per day, of which more than that -- more than 60% of that was oil.
Moving a bit east into Lea County, another result for this quarter was the Cobra project, where the team executed on a 3 mile Wolfcamp development.
This pad outperformed our predrill expectations by more than 10% with the top well achieving 30-day rates as high as 6,300 BOE per day.
With the strong operating results we delivered this quarter, high-margin oil production in the Delaware Basin continue to expand and rapidly advance, growing 39% year over year.
These efficiencies are evidenced on the right-hand chart, where our average D&C costs improved to $554 per lateral foot in the third quarter, a decrease of 41% from just a few years ago.
Another asset I'd like to put in the spotlight today is our position in the Anadarko Basin, where we have a concentrated 300,000 net acre position in the liquids-rich window of the play.
By way of background, in late 2019, we formed a partnership with Dow in a promoted deal, where Dow earns half of our interest on 133 undrilled locations in exchange for $100 million drilling carry.
With the benefits of this drilling carry, we're drilling around 30 wells this year, and our initial wells from this activity were brought on during the quarter.
Initial 30-day rates averaged 2,700 BOE per day, and completed well costs came in under budget at around $8 million per well.
As an example, Williston will generate over $700 million of 2021 free cash flow.
Collectively, these assets are on pace to generate nearly $1.5 billion of free cash flow this year.
As you would expect, about 70% of our inventory resides in the Delaware Basin, providing the depth of inventory to sustain our strong capital efficiency for many years to come.
These are really operated, essentially all long lateral up-spaced wells that deliver competitive returns in a $55 oil environment.
Operating cash flow for the third quarter totaled $1.6 billion, an impressive increase of 46% compared to last quarter.
This level of cash flow generation comfortably funded our capital spending requirements and generated $1.1 billion of free cash flow in the quarter.
Under our framework, we pay a fixed dividend every quarter and evaluate a variable distribution of up to 50% of the remaining free cash flow.
So, with the strong financial results we delivered this quarter, the board approved a 71% increase in our dividend payout versus last quarter to $0.84 per share.
As you can see on the chart to the left, at current market prices, we expect our dividend growth story to only strengthen in 2022.
So far this year, we've made significant progress toward this initiative by retiring over $1.2 billion of outstanding notes.
In conjunction with this absolute debt reduction, we've also added to our liquidity, building a $2.3 billion cash balance at quarter end.
We have identified additional opportunities to improve our financial strength by retiring approximately $1.0 billion of premium -- excuse me, low-premium debt in 2022 and 2023.

Summary:
Although we're now still working to finalize the details of our 2022 plan, I want to emphasize that our strategic framework remains unchanged, and we will continue to prioritize free cash flow generation over the pursuit of volume growth.
As you can see on the chart to the left, at current market prices, we expect our dividend growth story to only strengthen in 2022.