NEW YORK (TheStreet) -- Exxon Mobil Corp. (XOM) is considering a possible multibillion-dollar expansion of its 344,600 barrel-per-day Beaumont, TX refinery that could make it the nation's largest by 2020, sources say, Reuters reports.
The deliberations at Exxon are reportedly focused on the possible addition of a third crude distillation unit, and its size would determine how much capacity would increase.
Though many U.S. refiners have been incrementally adding capacity, Exxon's move could be the first major U.S. refinery investment since the sudden rise of shale production opened up a new era of bumper profits for the sector, Reuters said.
Shares of Exxon Mobil are down -0.56% to $103.70 in pre-market trade.
TheStreet Ratings team rates EXXON MOBIL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXXON MOBIL CORP (XOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."