Sable Offshore Stock Price, News & Analysis

Sable Offshore Corp. (NYSE: SOC) has released its Q1 2025 financial results, reporting a significant net loss of $109.5 million. The loss was primarily attributed to production restart related operating expenses, non-cash interest expense, and non-cash changes in warrant liabilities' fair value. The company ended the quarter with $189.0 million in cash and cash equivalents, plus an additional $35.5 million in restricted cash. Sable's outstanding debt stood at $854.6 million, which includes paid-in-kind interest, additional principal from debt amendment, and debt issuance costs. The company reported 89,338,358 outstanding shares of Common Stock at quarter's end.

Sable Offshore Corp (NYSE: SOC) reported its 2024 financial and operational results, posting a net loss of $617.3 million. The loss was primarily due to non-cash changes in warrant liabilities, non-cash interest expense, and production restart-related costs. The company ended 2024 with $300.4 million in cash and equivalents, plus $35.4 million in restricted cash.

Key financial metrics include $773.8 million raised in gross equity proceeds and outstanding debt of $833.5 million. The company has 89.3 million shares of Common Stock outstanding. Operationally, Sable secured approval from California authorities for enhanced pipeline integrity standards and made progress on the Las Flores Pipeline System repairs.

Looking ahead, Sable plans to restart production at the Santa Ynez Unit (SYU) offshore platforms in Q2 2025, beginning with Harmony platform, followed by Heritage and Hondo. The restart is contingent on completing the pipeline anomaly repair program, hydrotesting, and regulatory approvals.

Sable Offshore Corp provided an update on the Haaland lawsuit, where the U.S. Department of Justice filed a motion to remand the case to the Bureau of Safety and Environmental Enforcement (BSEE) for reconsideration of its 2023 decision approving an extension to resume operations on the Santa Ynez Unit leases.

The company plans to cooperate with the government during the review, maintaining that previous operational extensions were appropriate and authorized. Importantly, Sable's current operations at the Santa Ynez Unit remain unaffected under the proposed remand. The company stated it will pursue legal action against any third-party interference with restarting the Unit, which contains net estimated contingent resources valued at over $10 billion.

Sable Offshore Corp. (NYSE: SOC) reported its Q3 2024 financial results, posting a net loss of $255.6 million, mainly due to warrant liabilities valuation changes and operational expenses. The company strengthened its financial position by raising $150 million through private placement and $72.5 million through warrant exercises. The quarter ended with $288.2 million in cash and cash equivalents, plus $35.3 million in restricted cash. Operationally, Sable reached a settlement with Santa Barbara County regarding pipeline safety valves and progressed with restart activities at SYU platforms. The company completed lease-holding activities extending leases to October 2025 and received approval as Owner, Operator, and Guarantor from the County Planning Commission.

Sable Offshore Corp. provided an update on its coordination with the California Coastal Commission (CCC) regarding maintenance work on the Las Flores Pipeline system. The CCC requested Sable to halt work in the Coastal Zone in September. Both parties are now working on an interim plan to fill open excavations to prevent environmental risks from erosion. The work is expected to take seven days once approved. The 124-mile Las Flores Pipeline system has nine parcels with exposed pipe in the Coastal Zone, while maintenance continues in non-coastal areas to achieve 'as new' condition.

Sable Offshore Corp. (NYSE: SOC) has announced the completion of its public warrants redemption program. 99.8% of outstanding public warrants were exercised by holders to purchase common stock at $11.50 per share, resulting in the issuance of 15,957,820 shares and generating $183.5 million in cash proceeds for the company. Any unexercised warrants were redeemed at $0.01 per warrant. The public warrants have ceased trading on NYSE, while private placement and working capital warrants remain outstanding.

Sable Offshore Corp's subsidiary, Pacific Pipeline Company (PPC), is updating on operations for Line 324/325. Since 2015, PPC has maintained a cathodic protection and pressure maintenance program on the shutdown pipeline. In 2020, a Consent Decree was signed with federal and California state agencies, requiring PPC to restore the pipeline to 'as-new' condition.

PPC began repair work in 2024, addressing +/- 150 Threshold anomalies in the 124-mile pipeline. Currently, +/- 100 anomalies have been repaired or are in progress, with 50 more planned. Over 30 union crews are working on repairs, aiming for a pipeline restart by end of 2024.

The California Coastal Commission has requested additional information, which PPC is addressing. PPC believes its work falls under existing Coastal Development Permits. Crews have been moved out of the Coastal Zone to continue repairs elsewhere. A full hydrotest will be conducted under federal and state supervision before restart.

Sable Offshore Corp. (NYSE: SOC) has announced the redemption of all outstanding public warrants to purchase common stock, issued under the Warrant Agreement dated February 24, 2021. The redemption will occur on November 4, 2024 at 5:00 p.m. New York City time, for a price of $0.01 per warrant. This redemption applies only to public warrants from the company's IPO, not those issued in private placements.

Warrant holders can exercise their rights until the redemption date at an exercise price of $11.50 per share. Public warrants will cease trading on the NYSE on October 31, 2024. Any unexercised warrants after the redemption date will be void. The company has registered the underlying common stock with the SEC under Registration No. 333-277072.

Sable Offshore Corp. (NYSE: SOC) has announced a $150 million private placement of 7,500,000 shares of common stock to institutional investors, expected to close on September 23, 2024. The company plans to use the proceeds for capital expenditures, working capital, and general corporate purposes.

Additionally, Sable has received $64,829,491 from warrant exercises as of September 18, 2024, issuing 5,637,347 shares of common stock to exercising warrant holders. These proceeds will also be used for capital expenditures, working capital, and general corporate purposes.

TD Cowen and Jefferies are acting as joint placement agents, with Intrepid Partners as co-placement agent for the private placement. The shares being issued have not been registered under the Securities Act of 1933 and are subject to registration requirements or exemptions.