We find ourselves in an enviable financial position, whereby we expect to have no debt and be cash positive before the end of 2021.
Starting with our financial results for the third quarter of 2021, we had net income, on a GAAP basis, of $198 million or $5 per diluted share during the quarter as compared to a loss of $61 million or $1.57 per share for the previous quarter.
Adjusting for certain items, primarily the mark-to-market of hedging instruments and the gain on sale properties in the previously announced divestiture, we had adjusted net income of $142 million or $3.57 per diluted share as compared to $118 million or $3.01 per share for the previous quarter.
Adjusted EBITDAX was $201 million compared to $176 million in the previous quarter, primarily due to better commodity prices.
Our company's production on a barrels of oil equivalent remained relatively flat quarter over quarter, averaging 92,100 boe compared to second quarter production of 92,600 boe.
Oil production for the third quarter averaged 51,800 barrels of oil, which was down from the second quarter of 53.4 million barrels of oil -- 53,400 barrels of oil.
The company invested capex of $67 million during the third quarter to bring 17 gross 9.1 net wells on to production and we drilled 10 gross 5.6 net operated wells.
We ended the quarter with 25 gross 14.3 net drilled uncompleted wells.
Lease operating expenses were $57 million or $6.68 per boe for the third quarter of 2021.
General and administrative expenses of $12 million or $1.41 per boe was similar quarter over quarter.
The assets in the Williston Basin overlap our Sanish field and expand our inventory by over 60 gross locations.
We expect the company's reinvestment rate in 2022 to be similar to what we saw here in 2021 where we will have invested roughly 35% of our EBITDA.

Summary:
We find ourselves in an enviable financial position, whereby we expect to have no debt and be cash positive before the end of 2021.
Adjusting for certain items, primarily the mark-to-market of hedging instruments and the gain on sale properties in the previously announced divestiture, we had adjusted net income of $142 million or $3.57 per diluted share as compared to $118 million or $3.01 per share for the previous quarter.