Chevron Corp. (NYSE: CVX) reported fourth-quarter and full-year 2016 results before markets opened Friday morning. For the quarter, the oil and gas supermajor posted a diluted earnings per share (EPS) of $0.22 on total revenues of $31.5 billion. Operating revenues totaled $30.14 billion in the quarter, up from $28.01 billion in the year-ago quarter. In the same period a year ago, the company reported a net loss per share of $0.31 on revenues of $29.25 billion. Fourth-quarter results compare to the consensus estimates for EPS of $0.64 and $33.76 billion in revenues.

For the full year, Chevron reported a net loss per share of $0.27 and revenues of $114.47 billion, compared with 2015 EPS of $2.45 and $129.93 billion in revenue. Analysts had forecast EPS of $1.38 and revenues of $117.12 billion.

Capital spending totaled $22.4 billion for the full year, down from $34 billion in 2015. Capex for the fourth quarter totaled $5.26 billion, down from $8.71 billion last year.

Net oil-equivalent production in the fourth quarter totaled 2.67 million barrels a day, down just 1% compared with the year-ago quarter. Production increases from major capital projects and base business were offset by normal field declines, the impact of asset sales, production entitlement effects in several locations and the effects of civil unrest in Nigeria. Production increases from major capital projects, shale and tight properties, and base business were more than offset by normal field declines, the impact of asset sales, the Partitioned Zone shut-in, the effects of civil unrest in Nigeria and planned turnaround activity.

U.S. upstream operations posted a profit of $121 million in the fourth quarter, significantly better than the $1.95 billion loss posted in the fourth quarter of 2015. Chevron attributed the improvement to lower exploration and operating expenses, lower depreciation expenses and lower tax items, as well as higher crude oil and natural gas realizations.

The company’s average U.S. sales price per barrel of crude oil and natural gas liquids was $40.00 in the quarter, up from $35.00, in the year-ago quarter. The realized average natural gas price rose from $1.54 per thousand cubic feet to $1.98 year-over-year.

CEO John Watson said:

Our 2016 earnings reflect the low oil and gas prices we saw during the year. We responded aggressively to those conditions, cutting capital and operating expenses by $14 billion. We are well positioned to improve earnings and be cash flow balanced in 2017 through continued tight spending and cost control and additional revenue from expected production growth.

Net domestic oil-equivalent production fell by 37,000 barrels per day to 682,000 barrels a day in the quarter. Net U.S. liquids production was up 2% at 508,000 barrels a day and natural gas production slipped about 21% to 1.04 billion cubic feet per day.

The earnings announcement did not include guidance, but consensus estimates for the first quarter of 2017 call for EPS of $0.97 on revenues of $34.39 billion. For the full year, EPS and revenues are estimated at $4.72 and $158.93 billion, respectively.

Chevron’s shares traded down about 2.7% early Friday to $113.41, in a 52-week range of $79.85 to $119.00. The consensus 12-month price target was $125.67 before this morning’s report.

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