HOUSTON, April 3 (Reuters) - Exxon Mobil ( XOM ) on

Wednesday signaled first-quarter operating results would drop

over the prior quarter on weaker oil, gas prices and a big loss

in fuel derivatives, a securities filing showed.

The drop follows two years of strong oil and fuel prices

that turned the largest U.S. oil company into one of the most

profitable energy companies globally. Last year, it posted a

record profit for a first quarter at $11.4 billion.

The biggest impact in the latest quarter came from weak

natural gas prices and fuel derivatives, which reversed course

after run-ups last year.

Overall, the snapshot shows about $6.65 billion in operating

profit for the quarter, compared to $11.6 billion in the same

quarter a year ago and $7.63 billion in the fourth quarter.

Investors expect the company to post an adjusted per share

profit of $2.21, compared to the year-ago's $2.83, according to

financial firm LSEG's consensus estimate.

Natural gas prices fell to multi-year lows during the

quarter. Overall weaker oil and gas prices alone cut Exxon's

profits by about $600 million compared to the fourth quarter of

2023.

The company also said fuel derivatives undercut gains in

gasoline and diesel margins, costing it about $1.1 billion

compared to the fourth quarter. Refining maintenance costs also

jumped last quarter, the filing showed.

Last year's financial gains led Exxon to pursue all-stock

deals for U.S. shale oil producer Pioneer Natural Resources

and carbon storage firm Denbury. Its shares were up

16.2% during the first quarter and finished at $119.30 on

Wednesday.

The company also claims a preemptive right over Hess Corp's

Guyana assets, the prize in Chevron's $53 billion offer

for Hess. That claim is being considered by an international

arbitration panel.

The company is expected to post full results for the period

on April 26.