Devon Energy executives reported a solid first quarter with the highest margins coming from their Eagle Ford assets. The company’s focus has them on track to produce cost saving of more than $1 billion this year.

Related: Devon Energy to Cut 1,000 Jobs

In the midst of tough conditions, Devon’s ‘lasor-focused’ efforts have delivered significant cost reductions and accelerate efficiency gains. First quarter highlights included a net production of 107,000 Boe per day and operating costs of $58 million, an 18% reduction year over year.

Eagle Ford Operations

Devon’s Eagle Ford operations produced the highest per‐unit margin of any its asset, averaging $13 per Boe, with margins approaching 70% of upstream revenue.The company’s DeWitt County ‘s 50,000 acres are very economical and by far one of the best places to be operating. That asset alone generated $78 million in free cash flow during the first quarter.

Other first quarter highlights include:

• Drilling times improved by >55% compared to the 2014 average
• A record rate of 26 wells per rig line per year achieved this quarter
• Assets generated $78 million of free cash flow and remain on pace to deliver >$250 million of free cash flow in 2016
• Raised full-year production guidance by 3 percent
• Reduced LOE costs by 21 percent year over year
• Lowered 2016 operating cost outlook by $50 million
• Improved balance sheet strength with liquidity increasing to $4.6 billion

Devon has plans to spend $200 million developing the Eagle Ford this year compared to $1 billion on its Eagle Ford asset.

In February, Devon announced layoffs of 20 percent of its workforce, or 1,000 employees company wide.

Read more at DevonEnergy.com