((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Correction of typographical errors in paragraphs 12 to 14) by Sabrina Valle
U.S. and European oil companies reported weaker first-quarter results on Friday due to a sharp drop in natural gas prices from a year earlier.
In the United States, Exxon Mobil XOM.N missed Wall Street targets due to a larger-than-expected decline in natural gas profits, while Chevron
CVX.N beat expectations thanks to higher-than-expected U.S. oil production.
French oil major TotalEnergies TTEF.PA also slightly beat analysts’ forecasts, as good refining margins partially offset a sharp decline in profits from natural gas. Chief Executive Patrick Pouyanne warned, however, that rising oil prices, which have offset weak profits from natural gas, could reduce refining margins later in the year.
Exxon’s profits fell 28%, Chevron’s profits fell 16% and TotalEnergies’ profits fell 22% year over year, with the two US oil majors also feeling the impact of falling profits from gasoline and fuels.
Profits at oil and gas companies are still down from record levels in 2022, which were boosted by a surge in demand after the COVID-19 pandemic and then when prices soared after the invasion. Ukraine by Russia.
The Henry Hub NGc1 futures price, the benchmark for U.S. gas, has traded below $1.70 per million British thermal units (mmBtu), and fell earlier this year to its lowest level in 3 1/2 years due to hot weather and glut of supply.
Global benchmark Brent crude oil prices LCOc1 remained largely flat year-on-year at $81.76 per barrel during the quarter.
Strong profits last year led Exxon, Chevron, Occidental Petroleum OXY.N to bid for rivals in hopes of generating more oil and gas production.
Exxon reported a profit of $8.5 billion, the second highest first-quarter profit in more than a decade, while Chevron earned $5.5 billion and TotalEnergies reported an adjusted net profit of $5.5 billion. 1 billion dollars.
Stock prices reflected the profit declines, with Exxon losing 3.6% and Chevron 1% at midday in New York. TotalEnergies was up 2.6% in Paris after reconfirming a $2 billion share buyback.
Executives did not give new guidance on their production outlook for the coming quarters during their conference calls, giving investors less reason to celebrate.
The outlook for the two largest U.S. oil companies depends in part on pending approvals for two takeover bids.
Exxon aims to complete its purchase of Pioneer Natural Resources
PXD.N in the current quarter. Chevron said its bid for Hess HES.N was progressing and was expected to be put to a shareholder vote at the end of May.