ExxonMobil Corporation (XOM - Free Report) recently announced that it has started construction of a new production unit at its polyethylene plant in Beaumont. The cost of the project has not been disclosed.
Beaumont is located about 80 miles east of downtown Houston and this new unit will be part of a multibillion-dollar investment by the company along the Gulf Coast.
Construction of the new unit is underway, wherein current polyethylene production capacity is one million tons per year.
Scheduled to come online in 2019, the new unit will expand capacity by about 65% or about 650,000 tons per year. Two similar polyethylene units are also being added by ExxonMobil at its Mont Belvieu Plastics Plant, about 30 miles east of downtown Houston.
Collectively, the projects will augment the company’s U.S. polyethylene production by 40% or about 2 million tons per year. It will also make Texas the largest polyethylene supply point for ExxonMobil.
Based on 2015 Impact Data Source estimates, the expansion of the Beaumont polyethylene plant is expected to generate 1,400 construction jobs and 40 permanent jobs as well as generate $20 billion in economic activity in the first 13 years of operation.
Notably, this is the third major investment by ExxonMobil in the Beaumont area over the past 18 months. Other investments at Beaumont by the company include expansion of the refinery's crude refining capabilities and construction of a new unit to increase domestic supply of ultra-low sulfur gasoline and diesel.
However, the magnitude of contribution of the polyethylene business to ExxonMobil's overall financial results is unclear as it is never broken out separately. It also was not mentioned in the company's latest earnings conference call.
ExxonMobil currently has a Zacks Rank #3 (Hold). Some better-ranked players from the same sector are SunCoke Energy Inc. (SXC - Free Report) , Futurefuel Corp. (FF - Free Report) and TransCanada Corporation (TRP - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the preceding quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
TransCanada posted positive earnings surprise of 22.92% in the last reported quarter.
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ExxonMobil Corporation (XOM - Free Report) recently announced that it has started construction of a new production unit at its polyethylene plant in Beaumont. The cost of the project has not been disclosed.
Beaumont is located about 80 miles east of downtown Houston and this new unit will be part of a multibillion-dollar investment by the company along the Gulf Coast.
Construction of the new unit is underway, wherein current polyethylene production capacity is one million tons per year.
Scheduled to come online in 2019, the new unit will expand capacity by about 65% or about 650,000 tons per year. Two similar polyethylene units are also being added by ExxonMobil at its Mont Belvieu Plastics Plant, about 30 miles east of downtown Houston.
Collectively, the projects will augment the company’s U.S. polyethylene production by 40% or about 2 million tons per year. It will also make Texas the largest polyethylene supply point for ExxonMobil.
Based on 2015 Impact Data Source estimates, the expansion of the Beaumont polyethylene plant is expected to generate 1,400 construction jobs and 40 permanent jobs as well as generate $20 billion in economic activity in the first 13 years of operation.
Notably, this is the third major investment by ExxonMobil in the Beaumont area over the past 18 months. Other investments at Beaumont by the company include expansion of the refinery's crude refining capabilities and construction of a new unit to increase domestic supply of ultra-low sulfur gasoline and diesel.
However, the magnitude of contribution of the polyethylene business to ExxonMobil's overall financial results is unclear as it is never broken out separately. It also was not mentioned in the company's latest earnings conference call.
ExxonMobil currently has a Zacks Rank #3 (Hold). Some better-ranked players from the same sector are SunCoke Energy Inc. (SXC - Free Report) , Futurefuel Corp. (FF - Free Report) and TransCanada Corporation (TRP - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the preceding quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
TransCanada posted positive earnings surprise of 22.92% in the last reported quarter.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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