HOUSTON, April 26 (Reuters) - U.S. and European oil

companies reported weaker first quarter results on Friday due to

a sharp drop in natural gas prices compared with a year ago.

In the U.S., Exxon Mobil ( XOM ) missed Wall Street earnings

targets on larger-than-forecast drop in natural gas earnings and

Chevron ( CVX ) beat tempered expectations with

better-than-expected U.S. oil production.

French oil major

TotalEnergies

also slightly beat analysts forecasts as good

refining margins partially offset a steep drop in profits from

natural gas. CEO Patrick Pouyanne, however, warned that the

higher oil prices that have offset weak natural gas profits

could cut into refining margins later this year.

Exxon's profit fell 28%, Chevron ( CVX ) decreased 16% and

TotalEnergies was down 22% year-on-year, with the two U.S. oil

majors also taking a toll from weaker profits from gasoline and

fuels.

Profits at oil and gas firms are still retreating from

record levels in 2022 that were boosted by a surge in demand

after the COVID-19 pandemic and then when prices spiked after

Russia invaded Ukraine.

Henry Hub futures, the benchmark for U.S. gas, has

been trading below $1.70 per million British thermal unit

(mmBtu), and earlier this year dropped to a 3-1/2-year low on

warm weather and oversupply.

Global benchmark Brent crude prices were largely

flat against a year ago at $81.76 a barrel in the quarter.

Last year's strong profits led Exxon, Chevron ( CVX ), Occidental

Petroleum ( OXY ) to bid for rivals hoping to generate higher

oil and gas production.

Exxon posted an $8.5 billion profit, its second highest for

the first quarter in more than a decade, while Chevron ( CVX ) earned

$5.5 billion and TotalEnergies delivered $5.1 billion in

adjusted net.

Share prices reflected the profit drops, with Exxon down

3.6% and Chevron ( CVX ) off 1% in midday New York trading.

TotalEnergies was up 2.6% in Paris trading after reconfirming a

$2 billion share buyback.

Executives offered no new guidance on their production

outlooks for coming quarters on conference calls, giving

investor less reason to cheer.

In part, the two largest U.S. oil companies' outlook depends

on pending approvals for two bid deals.

Exxon aims to close its purchase of Pioneer Natural

Resources ( PXD ) in the current quarter, it said. Chevron ( CVX ) said

its offer for Hess is moving ahead, and is expected to

be put for shareholder vote in late May.