May 2 (Reuters) - U.S. energy firms this week cut the

number of oil and natural gas rigs operating for the first time

in three weeks, energy services firm Baker Hughes ( BKR ) said

in its closely followed report on Friday.

The oil and gas rig count, an early indicator of future

output, fell by three to 584 in the week to May 2.

Baker Hughes ( BKR ) said this week's decline puts the total rig

count down 21 rigs, or 3% below this time last year.

Baker Hughes ( BKR ) said oil rigs fell by four to 479 this week,

while gas rigs rose by two to 101.

The oil and gas rig count declined by about 5% in 2024 and

20% in 2023 as lower U.S. oil and gas prices over

the past couple of years prompted energy firms to focus more on

boosting shareholder returns and paying down debt rather than

increasing output.

Crude prices have slumped 20% to COVID-19 pandemic lows

in the

first 100 days

of U.S. President Donald Trump's second term amid

tariff

turmoil, raising questions about whether producers will

meet their goals for paying dividends and repurchasing shares -

a cornerstone of Big Oil's strategy to woo investors - or cut

capital expenditure budgets.

Exxon Mobil ( XOM )

on Friday reiterated its previous guidance of

spending between $27 billion and $29 billion in 2025. CEO Darren

Woods said despite pressure from short-term investors to cut

expenditures and return more money to shareholders, the top U.S.

oil producer will continue investing to maintain its position.

Chevron ( CVX )

similarly said it is maintaining its dividend and

share buyback strategy. The No. 2 U.S. oil producer grew output

in the first quarter from the Permian basin, the top U.S.

oilfield, by 12% year-over-year.