During 2018, we increased average daily production volumes by 65% from 79.2 MBOE/d at the end of 2017 to 130.4 MBOE/d in 2018, including one month of Energen production after the acquisition. We ended the year producing more than 250 MBOE/d.
Our full-year lease operating expenses and cash G&A decreased year over year on a per unit basis, resulting in realized cash margins per BOE of 81% and extending our track record of cost leadership.
Excluding the effect of the Energen transaction, Diamondback generated a full-year return on average capital employed of 11.4%, which we believe serves as a proxy for corporate returns and demonstrates how effectively we deploy capital.
Also in 2018, we initiated our return of capital program by instituting an annual cash dividend of $0.50 per share, paid quarterly. At the end of 2018, we announced a 50% increase to our dividend beginning in 2019, and expect to use multiple avenues to maximize shareholder returns in the future. More details on our 2018 financial and operating performance can be found in our Form 10-K.
3Figures include Viper Energy Partners, with the exception of the cash dividend statement.