Performance in ConocoPhillips’ (NYSE: COP) so-called Big Three areas in the Lower 48, where production grew 20% year-on-year during first-quarter 2018, is driving growth for the company.

The Houston-based E&P reported its earnings jumped to $888 million during first-quarter 2018, up from $586 million a year ago. The gains were attributed to higher crude prices, lower depreciation expenses and cuts in exploration expenses with production growth also coming from the U.K., Alaska and Indonesia. Production in the Eagle Ford shale play was 163,000 barrels of oil equivalent per day (boe/d) with 68,000 boe/d in the Bakken and 19,000 boe/d in the Delaware Basin.

Better well performance courtesy of the company’s latest generation of completion designs combined with lower costs, quicker drilling times and insight gleaned from analytics generated from its data warehouse are keeping the Eagle Ford in the spotlight for ConocoPhillips.

“In the last few years we’ve doubled the number of wells that can be handled by each multiskilled operator in the field because of all of the tools that we’ve given them,” Al Hirshberg, exploration vice president of production, drilling and projects for ConocoPhillips, said on an earnings call April 26.

“While everyone else has been banging away in the Permian—a lot of people left the Eagle Ford to do that—there has been less competition for goods and services in the Eagle Ford and better netbacks because there have been less people trying to jam their barrels down the same takeaway capacity,” Hirshberg said, adding ConocoPhillip’s lifting costs have fallen below $2 per barrel. “So everything about the Eagle Ford is hitting on all cylinders for us. It continues to be a real bright spot for us.”

CFO Dan Wallette pointed out earnings breakeven costs have also improved in the Lower 48. Two years ago it was more than $70 per barrel. Today, “We’re seeing the earnings power of our unconventional engine driving the bottom line results with our Lower 48 breakeven now less than $45 per barrel,” he said.

The quarterly results garnered favorable responses from analysts, who believe the results will have a positive impact on the company’s shares in the near-term.

ConocoPhillips’ stock was up 2.72% to $66.84 around 1:30 p.m. CT April 26.

“U.S. operations came in especially strong, opex was notably lower than expectations, $2.7 billion of debt was paid down, and $0.5 billion of shares were repurchased, keeping COP on track to meet its $2 billion full-year program,” Barclays said in a note. “Following last year’s asset sales, coring of its portfolio, improvement to the cash flow profile and installment of a robust shareholder return program the shares have outperformed. ... We think the momentum will continue, and that there is further room to go.”

Looking forward, the company plans to stick to its 2018 capital budget of $5.5 billion. But it expects to produce more, bumping its full-year guidance to between 1.2 MMboe/d and 1.24 MMboe/d. Second-quarter production is estimated to be between 1.17 MMboe/d and 1.2 MMboe/d, the company said.

“These and other improvements more than offset the impact from a third-party gas pipeline in Malaysia that is now assumed to be out of service for the entire year,” the company said in the release. “Production guidance excludes Libya,” where the company produced 45,000 boe/d during the first quarter.

As the year progresses Hirshberg said Lower 48 production could hit 300,000 boe/d based on improving well results. The company is gearing up to test another generation of completion designs.

Meanwhile, the company continues to keep costs in check, mitigating inflation pressure, exchange fluctuations and increased partner-operated activity.

“We continue to differentiate ourselves by executing on our strategic, financial and operational plans,” CEO Ryan Lance said in a statement. “We remain focused on creating value for our shareholders by maintaining discipline, following our priorities and staying committed to our returns-focused value proposition.”

Other first-quarter highlights for ConocoPhillips included: increasing its quarterly dividend by 7.5%, paying down $2.7 billion of balance sheet debt to end the quarter with $17 billion of debt and increasing planned share repurchases by 33%, the company said.

Total production, however, fell to about 1.27 million barrels of oil equivalent per day (MMboe/d) from about 1.56 MMboe/d as the company sold some assets. This included selling its LNG facility in Kenai, Alaska, to Andeavor.

But the company also added to its portfolio adding acreage in the liquids-rich Montney and entered the central Louisiana Austin Chalk scene. ConocoPhillips is currently permitting exploration in the Austin Chalk with hopes to start drilling later this year, and the company’s 35,000 net acres in the Montney is being appraised.

Meanwhile, ConocoPhillips’ pipeline of projects in Alaska is expected to add volumes this year and in coming years, including from Greater Mooses Tooth Unit in the National Petroleum Reserve-Alaska. A second phase of the development could be sanctioned later this year.

But don’t expect startup at the company’s Willow discoveries anytime some. That probably won’t happen until 2023, assuming a quick federal permitting process, according to Hirshberg. He added appraisal results so far from the Willow discoveries, which have a recoverable resource potential of more than 300 million barrels, justify a standalone development instead of a tieback; however, a decision hasn’t been made.

Velda Addison can be reached at vaddison@hartenergy.com