HOUSTON, April 26 Reuters Exxon Mobil Corp on Friday missed analysts39; estimates with a 28 yearonyear drop in first quarter profits as weaker refining margins and lower natural gas prices offset volume gains.

The largest U.S. oil company, which is in the process of closing a 60 billion deal for top shale oil producer Pioneer Natural Resources, posted firstquarter earnings of 8.22 billion, or 2.06 per share, compared to an 11.43 billion net profit a year ago.

The stock was down 2 in premarket trading to 118.50 after reporting a profit per share of 2.06, 6 shy of Wall Street analysts39; consensus for 2.20 per share, LSEG estimates showed.

Earnings from oil and gas production fell 14 on lower natural gas prices and refining tumbled 67 on weaker margins and investment and tax costs. The chemicals business, however, was a standout, with earnings more than doubling on lower input costs and higher margins, the company said.

Earnings of 8.22 billion for the first quarter ended March 31 were off 29 compared to adjusted profit of 11.62 billion a year earlier.

But the results were the second highest for a first quarter in the past decade, behind the yearago period, said Chief Financial Officer Kathryn Mikells. The miss was due in part to tax and inventory balance sheet adjustments, she said.

Every quarter, we have some pluses and minuses associated with these oneoff items, she said. Sometimes they are favorable, this time they were unfavorable.

Global oil prices were…